Property and Equipment and Capitalized Software and Curriculum

12 Months Ended

Jun. 30, 2024

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,
	2024		2023
	(In thousands)
Student computers	$	128,496	$	114,064
Computer software		9,923		14,908
Computer hardware		6,698		8,867
Leasehold improvements		10,369		11,590
State testing computers		4,609		4,609
Furniture and fixtures		3,190		3,547
Office equipment		122		213
		163,407		157,798
Less accumulated depreciation and amortization		(112,551)		(105,466)
	$	50,856	$	52,332

The Company recorded depreciation expense related to property and equipment reflected in selling, general, and administrative expenses of $3.8 million, $3.6 million and $3.9 million during the years ended June 30, 2024, 2023 and 2022, respectively. Depreciation expense of $32.9 million, $42.3 million and $37.6 million related to computers provided to students is reflected in instructional costs and services during the years ended June 30, 2024, 2023 and 2022, 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,
	2024		2023
	(In thousands)
Capitalized software	$	330,054	$	318,965
Less accumulated depreciation and amortization		(248,102)		(235,500)
	$	81,952	$	83,465

The Company recorded amortization expense of $34.4 million, $27.0 million and $22.9 million related to capitalized software reflected in instructional costs and services and $7.9 million, $5.6 million and $5.4 million reflected in selling, general, and administrative expenses during the years ended June 30, 2024, 2023 and 2022, respectively.

Capitalized curriculum development costs consist of the following at:

	June 30,
	2024		2023
	(In thousands)
Capitalized curriculum development costs	$	181,353	$	183,597
Less accumulated depreciation and amortization		(128,121)		(132,810)
	$	53,232	$	50,787

The Company recorded amortization expense of $17.7 million, $16.7 million and $15.1 million related to capitalized curriculum development cost reflected in instructional costs and services during the years ended June 30, 2024, 2023 and 2022, respectively.