Discontinued Operations

3 Months Ended

Sep. 30, 2024

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

3. Discontinued Operations

On December 11, 2018, Adtalem completed the sale of DeVry University to Cogswell Education, LLC (“Cogswell”) for de minimis consideration. As the sale represented a strategic shift that had a major effect on Adtalem’s operations and

financial results, DeVry University is presented in Adtalem’s Consolidated Financial Statements as a discontinued operation. The purchase agreement includes an earn-out entitling Adtalem to payments of up to $20.0 million over a ten-year period payable based on DeVry University’s financial results. Adtalem received $5.5 million, $4.1 million, and $2.9 million during the second quarter of fiscal year 2024, 2023, and 2022, respectively, related to the earn-out. We have received a total of $12.5 million related to the earn-out thus far.

The following is a summary of income statement information reported as discontinued operations, which includes expense from ongoing litigation costs and settlements related to the DeVry University and Carrington College divestitures (in thousands):

	Three Months Ended
	September 30,
	2024		2023
Revenue	$	—	$	—
Operating cost and expense:
Student services and administrative expense		107		1,765
Total operating cost and expense		107		1,765
Loss from discontinued operations before income taxes		(107)		(1,765)
Benefit from income taxes		27		452
Loss from discontinued operations	$	(80)	$	(1,313)