XML 37 R26.htm IDEA: XBRL DOCUMENT v3.22.2.2
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Jun. 30, 2022
Accounting Policies [Abstract]  
Schedule of Allowance for Credit Losses

The following table presents the changes in the Company’s allowance for credit losses for the periods indicated (in thousands):

 

 

 

 

 

Fiscal Year Ended June 30,

 

 

 

 

 

2022

 

 

2021

 

 

2020

 

Balance, beginning of period

 

 

 

$

120

 

 

$

9,287

 

 

$

9,529

 

Provision for credit losses

 

 

 

 

—

 

 

 

36

 

 

 

214

 

Write-offs charged against the allowance (1)

 

 

 

 

—

 

 

 

(9,087

)

 

 

(456

)

Recoveries collected

 

 

 

 

—

 

 

 

(116

)

 

 

—

 

Balance, end of period

 

 

 

$

120

 

 

$

120

 

 

$

9,287

 

 

(1)

In the third quarter of fiscal year 2019, the Company recorded an allowance of $8.7 million for bad debt expense related to a large former education client who entered federal receivership in January 2019. In the second quarter of fiscal year 2021, the Company believes that the likelihood of collection was no longer probable, therefore has determined to write off the receivable against this allowance, with no net impact to the Company’s consolidated statements of operations.
Estimated Useful Lives of the Assets

Property and equipment are stated at cost less accumulated depreciation and amortization, and are depreciated on a straight-line basis over the estimated useful lives of the assets, as follows:

Computer equipment

3 years

Software

3 years

Furniture and fixtures

3 to 5 years

Leasehold improvements

the shorter of the lease term or the estimated useful lives of the improvements