Summary of Significant Accounting Policy (Tables)

12 Months Ended

Jun. 30, 2019

Summary of Significant Accounting Policies

Schedule of impact of adoption of ASU 606

The impact of adoption on the Company’s consolidated statements of operations for the year ended June 30, 2019 was as follows:

	Year Ended June 30, 2019
	As
	Reported		Adjustment		Amounts
	Under		due to ASC		under
	ASC 606		606		ASC 605
		(In thousands)
Revenues	$	1,015,752	$	(203)	$	1,015,549
Selling, administrative, and other operating expenses		297,350		(263)		297,087
Income from operations		45,486		60		45,546
Net income		37,209		60		37,269
Net income attributable to common stockholders	$	37,209	$	60	$	37,269

The impact of adoption on the Company’s consolidated balance sheets as of June 30, 2019 was as follows:

	June 30, 2019
	As Reported		Adjustment		Amounts
	Under ASC		due to ASC		under ASC
	606		606		605
		(In thousands)
Other current assets	$	12,307	$	(273)	$	12,034
Deposits and other assets		48,330		(629)		47,701
Total assets		819,606		(902)		818,704
Deferred revenue		22,828		(2,263)		20,565
Total liabilities		186,241		(2,263)		183,978
Retained earnings (accumulated deficit)		22,447		60		22,507
Total stockholders' equity		633,365		60		633,425

Schedule of disaggregation of revenue

	Year Ended
	June 30, 2019
		(In thousands)
Managed Public School Programs	$	890,275
Institutional
Non-managed Public School Programs		50,623
Institutional Software & Services		39,330
Total Institutional		89,953
Private Pay Schools and Other		35,524
Total Revenues	$	1,015,752

Schedule of accounts receivables, contract assets and deferred revenue

	June 30,		July 1,
	2019		2018
	(In thousands)
Accounts receivable	$	191,639	$	176,319
Unbilled receivables (included in accounts receivable)		16,189		12,143
Deferred revenue		22,828		25,580

Schedule of useful lives of property and equipment

	Useful Life
Student and state testing computers	3 - 5 years
Computer hardware	3 years
Computer software	3 - 5 years
Web site development	3 years
Office equipment	5 years
Furniture and fixtures	7 years
Leasehold improvements	3 - 12 years

Schedule of goodwill activity

($ in millions)	Amount
Goodwill
Balance as of June 30, 2016	$	87.3
Adjustment to purchase price of LTS Education Systems ("LTS")		(0.1)
Balance as of June 30, 2017	$	87.2
Acquisition of Big Universe, Inc.		3.0
Balance as of June 30, 2018	$	90.2
Adjustments		—
Balance as of June 30, 2019	$	90.2

Schedule of intangible assets

	June 30, 2019						June 30, 2018
($in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
Trade names	$	17.6	$	(9.4)	$	8.2	$	17.6	$	(8.5)	$	9.1
Customer and distributor relationships		20.5		(14.7)		5.8		20.5		(13.4)		7.1
Developed technology		3.2		(2.8)		0.4		3.2		(2.2)		1.0
Other		1.4		(0.8)		0.6		1.4		(0.6)		0.8
Total	$	42.7	$	(27.7)	$	15.0	$	42.7	$	(24.7)	$	18.0

Schedule of calculation of basic and diluted net income (loss) per share

	Year Ended June 30,
	2019		2018		2017
	(In thousands except share and per share data)
Basic net income per share computation:
Net income attributable to common stockholders	$	37,209	$	27,620	$	451
Weighted average common shares  — basic		38,848,780		39,282,674		38,298,581
Basic net income per share	$	0.96	$	0.70	$	0.01
Diluted net income per share computation:
Net income attributable to common stockholders	$	37,209	$	27,620	$	451
Share computation:
Weighted average common shares  — basic		38,848,780		39,282,674		38,298,581
Effect of dilutive stock options and restricted stock awards		2,096,020		1,355,070		1,202,353
Weighted average common shares  — diluted		40,944,800		40,637,744		39,500,934
Diluted net income per share	$	0.91	$	0.68	$	0.01

Schedule of assets and liabilities measured at fair value on a nonrecurring basis

The following table summarizes certain fair value information at June 30, 2019 for assets or liabilities measured at fair value on a nonrecurring basis.

	Fair Value Measurements Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Input		Inputs
Description	Fair Value		(Level 1)		(Level 2)		(Level 3)
		(In thousands)
Lease exit liability	$	1,779	$	—	$	—	$	1,779

The following table summarizes certain fair value information at June 30, 2018 for assets or liabilities measured at fair value on a nonrecurring basis.

	Fair Value Measurements Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Input		Inputs
Description	Fair Value		(Level 1)		(Level 2)		(Level 3)
		(In thousands)
Lease exit liability	$	2,758	$	—	$	—	$	2,758

Schedule of assets and liabilities measured at fair value on a recurring basis

	Fair Value Measurements Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Input		Inputs
Description	Fair Value		(Level 1)		(Level 2)		(Level 3)
		(In thousands)
Lease exit liability	$	2,758	$	—	$	—	$	2,758

The following table summarizes certain fair value information at June 30, 2019 for assets or liabilities measured at fair value on a recurring basis.

	Fair Value Measurements Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Input		Inputs
Description	Fair Value		(Level 1)		(Level 2)		(Level 3)
		(In thousands)
Convertible note received in acquisition	$	5,006		—		—		5,006

The following table summarizes certain fair value information at June 30, 2018 for assets or liabilities measured at fair value on a recurring basis.

	Fair Value Measurements Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Input		Inputs
Description	Fair Value		(Level 1)		(Level 2)		(Level 3)
		(In thousands)
Contingent consideration associated with acquisitions	$	1,345	$	—	$	—	$	1,345

Schedule of activity related to fair value measurements categorized as Level 3 of the valuation hierarchy, valued on a recurring basis

	Fair Value Measurements Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Input		Inputs
Description	Fair Value		(Level 1)		(Level 2)		(Level 3)
		(In thousands)
Contingent consideration associated with acquisitions	$	1,345	$	—	$	—	$	1,345

The following table presents activity related to the Company’s fair value measurements categorized as Level 3 of the valuation hierarchy, valued on a recurring basis, for the year ended June 30, 2019.

		Year Ended June 30, 2019
			Purchases,
	Fair Value		Issuances,		Unrealized		Fair Value
Description	June 30, 2018		and Settlements		Gains (Losses)		June 30, 2019
	(In thousands)
Contingent consideration associated with acquisitions	$	1,345	$	(1,347)	$	2	$	—
Convertible note received in acquisition		—		5,006		—		5,006

The following table presents activity related to the Company’s fair value measurements categorized as Level 3 of the valuation hierarchy, valued on a recurring basis, for the year ended June 30, 2018.

		Year Ended June 30, 2018
			Purchases,
	Fair Value		Issuances,		Unrealized		Fair Value
Description	June 30, 2017		and Settlements		Gains (Losses)		June 30, 2018
	(In thousands)
Contingent consideration associated with acquisitions		2,806		(1,319)		(142)		1,345

The following table presents activity related to the Company’s fair value measurements categorized as Level 3 of the valuation hierarchy, valued on a recurring basis, for the year ended June 30, 2017.

		Year Ended June 30, 2017
			Purchases,
	Fair Value		Issuances,		Unrealized		Fair Value
Description	June 30, 2016		and Settlements		Gains (Losses)		June 30, 2017
	(In thousands)
Redeemable noncontrolling interest in Middlebury Interactive Learning	$	6,801	$	(9,134)	$	2,333	$	—
Contingent consideration associated with acquisitions		2,947		—		(141)		2,806
Total	$	9,748	$	(9,134)	$	2,192	$	2,806