Stock-Based Compensation (Tables)

9 Months Ended

Mar. 31, 2020

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of options Activity

The following is a summary of options activity for the nine months ended March 31, 2020:

				Weighted-Average
				Remaining	Aggregate
	Number of	Weighted-Average		Contractual Life	Intrinsic Value
	Options	Exercise Price		(in years)	(in thousands)
Outstanding as of July 1, 2019	1,488,478	$	31.33
Granted	229,125		43.39
Exercised	(85,234)		27.54
Forfeited	(65,946)		42.76
Expired	(70,604)		51.81
Outstanding as of March 31, 2020	1,495,819		31.90	6.61	$	2,937
Exercisable as of March 31, 2020	716,037	$	28.43	5.32	$	2,082

Fair Values of Stock Option Awards Estimated Weighted Average Assumptions

The fair value of Adtalem’s stock option grants was estimated assuming the following weighted-average assumptions:

	Fiscal Year
	2020		2019
Expected life (in years)	6.51		6.50
Expected volatility	37.66	%	39.60	%
Risk-free interest rate	1.40	%	2.73	%
Dividend yield	0.00	%	0.00	%

Summary of Restricted Stock Units Activity

The following is a summary of RSU activity for the nine months ended March 31, 2020:

		Weighted-Average
	Number of	Grant Date
	RSUs	Fair Value
Outstanding as of July 1, 2019	878,030	$	34.86
Granted	408,520		42.38
Vested	(362,036)		28.75
Forfeited	(121,914)		40.17
Outstanding as of March 31, 2020	802,600	$	39.08

Total Stock-Based Compensation Expense Included in Consolidated Statement of Earnings

The following table shows total stock-based compensation expense included in the Consolidated Statements of Income (in thousands):

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2020		2019		2020		2019
Cost of educational services	$	260	$	279	$	1,027	$	976
Student services and administrative expense		2,521		2,729		10,301		9,393
		2,781		3,008		11,328		10,369
Income tax benefit		(642)		(692)		(3,887)		(3,930)
Net stock-based compensation expense	$	2,139	$	2,316	$	7,441	$	6,439