Discontinued Operations and Assets Held for Sale (Tables)

9 Months Ended

Mar. 31, 2020

Discontinued Operations and Assets Held for Sale

Balance Sheet Information of Assets and Liabilities Reported as Discontinued Operations

The following is a summary of balance sheet information of assets and liabilities reported as held for sale, which includes only Adtalem Brazil balances as Carrington and DeVry University were sold as of each period presented below (in thousands):

	March 31,		June 30,		March 31,
	2020		2019		2019
Assets:
Current assets:
Cash and cash equivalents	$	83,961	$	95,243	$	90,511
Accounts receivable, net		52,507		74,269		65,794
Prepaid expenses and other current assets		5,949		8,411		10,252
Total current assets held for sale		142,417		177,923		166,557
Noncurrent assets:
Property and equipment, net		57,610		81,250		80,234
Operating lease assets		54,092		—		—
Intangible assets, net		88,403		120,108		118,134
Goodwill		138,914		187,195		183,575
Other assets, net		9,542		10,338		8,999
Total noncurrent assets held for sale		348,561		398,891		390,942
Total assets held for sale	$	490,978	$	576,814	$	557,499
Liabilities:
Current liabilities:
Accounts payable	$	2,378	$	4,242	$	3,230
Accrued payroll and benefits		10,671		17,828		15,462
Accrued liabilities		4,891		10,193		12,008
Deferred revenue		8,688		3,846		13,990
Current operating lease liabilities		8,322		—		—
Total current liabilities held for sale		34,950		36,109		44,690
Noncurrent liabilities:
Long-term operating lease liabilities		46,747		—		—
Other liabilities		10,103		16,146		16,372
Total noncurrent liabilities held for sale		56,850		16,146		16,372
Total liabilities held for sale	$	91,800	$	52,255	$	61,062

The following is a summary of income statement information of operations reported as discontinued operations, which includes Adtalem Brazil operations and includes Carrington’s and DeVry University’s operations through the date of each respective sale (in thousands):

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2020		2019		2020		2019
Revenue	$	41,355	$	49,906	$	142,160	$	355,506
Operating cost and expense:
Cost of educational services		28,940		36,147		98,605		222,837
Student services and administrative expense		17,781		11,252		47,860		130,615
Restructuring expense (gain)		199		(257)		625		(570)
Asset impairment charge - building and equipment		—		—		—		1,953
Total operating cost and expense		46,920		47,142		147,090		354,835
Operating (loss) income from discontinued operations		(5,565)		2,764		(4,930)		671
Other income (expense):
Interest and dividend income		425		941		2,164		2,917
Interest expense		(807)		(483)		(2,770)		(2,317)
Net other (expense) income		(382)		458		(606)		600
(Loss) income from discontinued operations before income taxes		(5,947)		3,222		(5,536)		1,271
Loss on disposal of discontinued operations before income taxes		—		(265)		—		(32,979)
Benefit from income taxes		3,228		182		3,778		5,762
(Loss) income from discontinued operations		(2,719)		3,139		(1,758)		(25,946)
Net income attributable to redeemable noncontrolling interest		—		(74)		—		(382)
Net (loss) income from discontinued operations attributable to Adtalem	$	(2,719)	$	3,065	$	(1,758)	$	(26,328)