In its FY22 annual report Stride, Inc. (LRN), a K-12 education and adult learning services provider, revealed Advertising and Marketing Costs for 2021 and 2020 that do not match previous filings. In prior filings, Stride recorded Advertising and Marketing Costs of $23 million and $32.7 million in 2021 and 2020 respectively.

In a footnote in the latest annual report, Stride increased its Advertising and Marketing costs for the two prior years by $67.7 million, approximately doubling the annual expense. In a footnote, the company said it had previously excluded $37.3 million and $30.4 million of advertising costs incurred during 2021 and 2020 respectively.

The company called the change a disclosure modification.

Stride also said the change had no impact on its financial statements.

DuDil contacted Stride, asking specifically where the previously excluded costs were recorded. In response, Stride’s VP of Investors Relations Timothy Casey told us:

“It’s strictly a change in the footnote calculation – all of the costs were recorded in SG&A in 2020, 2021, and 2022 – but the footnote now includes an expanded definition for the costs.”