Property and Equipment and Capitalized Software and Curriculum

12 Months Ended

Jun. 30, 2023

Property and Equipment and Capitalized Software and Curriculum

Property and Equipment and Capitalized Software and Curriculum

4. Property and Equipment and Capitalized Software and Curriculum

Property and equipment consists of the following at:

	June 30,
	2023		2022
	(In thousands)
Student computers	$	114,064	$	106,688
Computer software		14,908		14,655
Computer hardware		8,867		5,386
Leasehold improvements		11,590		12,612
State testing computers		4,609		7,440
Furniture and fixtures		3,547		3,910
Office equipment		213		134
		157,798		150,825
Less accumulated depreciation and amortization		(105,466)		(89,288)
	$	52,332	$	61,537

The Company recorded depreciation expense related to property and equipment reflected in selling, general, and administrative expenses of $3.6 million, $3.9 million and $6.3 million during the years ended June 30, 2023, 2022 and 2021, respectively. Depreciation expense of $42.3 million, $37.6 million and $31.7 million related to computers provided to students is reflected in instructional costs and services during the years ended June 30, 2023, 2022 and 2021, respectively.

The Company incurs maintenance and repair expenses, which are expensed as incurred, and are generally recorded in selling, general, and administrative expenses.

Capitalized software costs consist of the following at:

	June 30,
	2023		2022
	(In thousands)
Capitalized software	$	318,965	$	274,401
Less accumulated depreciation and amortization		(235,500)		(202,601)
	$	83,465	$	71,800

The Company recorded amortization expense of $27.0 million, $22.9 million and $19.7 million related to capitalized software reflected in instructional costs and services and $5.6 million, $5.4 million and $4.2 million reflected in selling, general, and administrative expenses during the years ended June 30, 2023, 2022 and 2021, respectively.

Capitalized curriculum development costs consist of the following at:

	June 30,
	2023		2022
	(In thousands)
Capitalized curriculum development costs	$	183,597	$	189,246
Less accumulated depreciation and amortization		(132,810)		(138,666)
	$	50,787	$	50,580

The Company recorded amortization expense of $16.7 million, $15.1 million and $16.4 million related to capitalized curriculum development cost reflected in instructional costs and services during the years ended June 30, 2023, 2022 and 2021, respectively.