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INCOME TAXES (Tables)

12 Months Ended

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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