Stock-Based Compensation (Tables)

6 Months Ended

Dec. 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 six months ended December 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, 2020	1,439,630	$	31.95
Granted	281,075		32.03
Exercised	(5,450)		23.30
Forfeited	—		—
Expired	(35,050)		41.84
Outstanding as of December 31, 2020	1,680,205		31.81	6.60	$	7,686
Exercisable as of December 31, 2020	1,025,387	$	29.03	5.42	$	7,137

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
	2021		2020
Expected life (in years)	6.54		6.51
Expected volatility	39.27	%	37.66	%
Risk-free interest rate	0.45	%	1.40	%
Dividend yield	0.00	%	0.00	%

Summary of Restricted Stock Units Activity

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

		Weighted-Average
	Number of	Grant Date
	RSUs	Fair Value
Outstanding as of July 1, 2020	767,973	$	39.42
Granted	564,900		30.62
Vested	(361,728)		34.92
Forfeited	(24,630)		38.88
Outstanding as of December 31, 2020	946,515	$	35.90

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				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Cost of educational services	$	345	$	312	$	738	$	767
Student services and administrative expense		3,303		3,012		6,914		7,780
		3,648		3,324		7,652		8,547
Income tax benefit		(641)		(713)		(1,167)		(3,246)
Net stock-based compensation expense	$	3,007	$	2,611	$	6,485	$	5,301