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INCOME TAXES (Tables) | 12 Months Ended
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Jun. 30, 2018
Income Tax Disclosure [Abstract] |
Income before Income Tax | The components of income from continuing operations before income taxes are as follows (in thousands):
|  | Year Ended June 30, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
U.S. |  | $ | 63,353 |  |  | $ | (13,553 | ) |  | $ | 36,505 |
Foreign |  |  | 135,330 |  |  |  | 144,812 |  |  |  | 114,317 |
Total |  | $ | 198,683 |  |  | $ | 131,259 |  |  | $ | 150,822 |
Income Tax Provisions (Benefits) | The income tax provisions related to the above results are as follows (in thousands):
|  | Year Ended June 30, |
Income Tax Provision (Benefit): |  | 2018 |  |  | 2017 |  |  | 2016 |
Current Tax Provision |  |  |  |  |  |  |  |  |  |  |  |
U.S. Federal |  | $ | 69,986 |  |  | $ | 1,162 |  |  | $ | 37,239 |
State and Local |  |  | (599 | ) |  |  | (3,834 | ) |  |  | (6,256 | )
Foreign |  |  | 7,831 |  |  |  | 3,777 |  |  |  | 2,685 |
Total Current |  |  | 77,218 |  |  |  | 1,105 |  |  |  | 33,668 |
Deferred Tax Provision (Benefit): |  |  |  |  |  |  |  |  |  |  |  |
U.S. Federal |  |  | 19,020 |  |  |  | (2,745 | ) |  |  | (20,044 | )
State and Local |  |  | (1,173 | ) |  |  | 6,155 |  |  |  | 7,552 |
Foreign |  |  | (10,963 | ) |  |  | 5,079 |  |  |  | 4,150 |
Total Deferred |  |  | 6,884 |  |  |  | 8,489 |  |  |  | (8,342 | )
Income Tax Provision |  | $ | 84,102 |  |  | $ | 9,594 |  |  | $ | 25,326 |
Income Tax Provisions Computed using Statutory U.S. Federal Rate | The income tax provisions differ from those that would be computed using the statutory U.S. federal rate as a result of the following items (in thousands):
|  | Year Ended June 30, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Income Tax at Statutory Rate |  | $ | 55,750 |  |  |  | 28.1 | % |  | $ | 45,941 |  |  |  | 35.0 | % |  | $ | 52,788 |  |  |  | 35.0 | %
Lower Rates on Foreign Operations |  |  | (30,749 | ) |  |  | (15.5 | )% |  |  | (42,911 | ) |  |  | (32.7 | )% |  |  | (33,271 | ) |  |  | (22.1 | )%
State Income Taxes |  |  | 3,648 |  |  |  | 1.8 | % |  |  | 1,348 |  |  |  | 1.0 | % |  |  | 3,240 |  |  |  | 2.1 | %
Impact of Tax Cuts and Jobs Act |  |  | 103,878 |  |  |  | 52.3 | % |  |  | - |  |  |  | 0.0 | % |  |  | - |  |  |  | 0.0 | %
Loss on Investment in Subsidiary |  |  | (48,903 | ) |  |  | (24.6 | %) |  |  | - |  |  |  | 0.0 | % |  |  | - |  |  |  | 0.0 | %
Benefit on Foreign Intangibles |  |  | (8,813 | ) |  |  | (4.5 | %) |  |  | - |  |  |  | 0.0 | % |  |  | - |  |  |  | 0.0 | %
Permanent Non-Deductible/(Taxable) Items |  |  | 7,715 |  |  |  | 3.9 | % |  |  | 2,720 |  |  |  | 2.1 | % |  |  | 1,931 |  |  |  | 1.3 | %
Other |  |  | 1,576 |  |  |  | 0.8 | % |  |  | 2,496 |  |  |  | 1.9 | % |  |  | 638 |  |  |  | 0.5 | %
Income Tax Provision |  | $ | 84,102 |  |  |  | 42.3 | % |  | $ | 9,594 |  |  |  | 7.3 | % |  | $ | 25,326 |  |  |  | 16.8 | %
Deferred Tax Assets (Liabilities) | These assets and liabilities are composed of the following (in thousands):
|  | Year Ended June 30, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Employee Benefits |  | $ | 11,957 |  |  | $ | 18,648 |  |  | $ | 16,712 |
Stock-Based Compensation |  |  | 7,577 |  |  |  | 18,130 |  |  |  | 21,239 |
Deferred Rent |  |  | 9,841 |  |  |  | 17,588 |  |  |  | 22,135 |
Receivable Reserve |  |  | 7,953 |  |  |  | 11,308 |  |  |  | 18,476 |
Restructuring Costs |  |  | 8,704 |  |  |  | 17,148 |  |  |  | 18,820 |
Depreciation |  |  | 3,380 |  |  |  | - |  |  |  | - |
Other Reserves |  |  | 2,420 |  |  |  | 6,701 |  |  |  | 3,978 |
Loss and Credit Carryforwards, Net |  |  | 37,340 |  |  |  | 37,569 |  |  |  | 24,213 |
Less: Valuation Allowance |  |  | (11,496 | ) |  |  | (9,456 | ) |  |  | (8,624 | )
Gross Deferred Tax Assets |  |  | 77,676 |  |  |  | 117,636 |  |  |  | 116,949 |
Depreciation |  |  | - |  |  |  | (10,641 | ) |  |  | (21,700 | )
Amortization of Intangible Assets |  |  | (68,011 | ) |  |  | (106,952 | ) |  |  | (73,397 | )
Gross Deferred Tax Liability |  |  | (68,011 | ) |  |  | (117,593 | ) |  |  | (95,097 | )
Net Deferred Taxes |  | $ | 9,665 |  |  | $ | 43 |  |  | $ | 21,852 |
Net Operating Loss and Credit Carryforwards | Adtalem has the following tax net operating loss (tax effected) and credit carryforwards as of June 30, 2018 (in thousands):
|  | June 30, |  |  | Years of Expiration |
|  | 2018 |  |  | Beginning |  |  | Ending |
U.S. Credit Carryforwards |  | $ | 271 |  |  |  | 2027 |  |  |  | 2027 |
State Net Operating Loss Carryforwards |  |  | 17,440 |  |  |  | 2019 |  |  |  | 2039 |
State Credit Carryforwards |  |  | 8,425 |  |  |  | 2019 |  |  |  | 2028 |
Foreign Net Operating Loss Carryforwards |  |  | 8,082 |  |  |  | 2021 |  |  |  | 2038 |
Foreign Net Operating Loss Carryforwards |  |  | 3,122 |  |  |  | No Expiration |
Gross Deferred Tax Assets |  | $ | 37,340 |  |  |  |  |  |  |  |  |
Changes in Unrecognized Tax Benefits | The changes in our unrecognized tax benefits were (in thousands):
|  | Year Ended June 30, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Beginning Balance, July 1 |  | $ | 7,901 |  |  | $ | 7,497 |  |  | $ | 8,475 |
Increases from Positions Taken During Prior Periods |  |  | 1,151 |  |  |  | 1,397 |  |  |  | 346 |
Decreases from Positions Taken During Prior Periods |  |  | (5,711 | ) |  |  | (1,445 | ) |  |  | (1,716 | )
Increases from Positions Taken During the Current Period |  |  | 31,063 |  |  |  | 452 |  |  |  | 392 |
Ending Balance, June 30 |  | $ | 34,404 |  |  | $ | 7,901 |  |  | $ | 7,497 |

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