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INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2019

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,
		2019			2018			2017
U.S.		$	80,209		$	61,307		$	(15,046)
Foreign			89,972			137,376			146,305
Total		$	170,181		$	198,683		$	131,259

Income Tax Provisions (Benefits)

The income tax provisions related to the above results are as follows (in thousands):

		Year Ended June 30,
		2019			2018			2017
Current Tax Provision (Benefit):
U.S. Federal		$	17,450		$	69,986		$	1,162
State and Local			1,788			(599)			(3,834)
Foreign			1,906			7,831			3,777
Total Current			21,144			77,218			1,105
Deferred Tax Provision (Benefit):
U.S. Federal			4,066			19,020			(2,745)
State and Local			9,029			(1,173)			6,155
Foreign			(82)			(10,963)			5,079
Total Deferred			13,013			6,884			8,489
Income Tax Provision		$	34,157		$	84,102		$	9,594

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,
		2019					2018					2017
Income Tax at Statutory Rate		$	35,738		21.0	%	$	55,750		28.1	%	$	45,941		35.0	%
Lower Rates on Foreign Operations			(18,939)		(11.1)	%		(30,749)		(15.5)	%		(42,911)		(32.7)	%
State Income Taxes			5,825		3.4	%		3,648		1.8	%		1,348		1.0	%
Impact of Tax Cuts and Jobs Act			—		—	%		103,878		52.3	%		—		—	%
Loss on Investment in Subsidiary			1,797		1.1	%		(48,903)		(24.6)	%		—		—	%
Benefit on Foreign Intangibles			—		—	%		(8,813)		(4.5)	%		—		—	%
Permanent Non-Deductible Items			537		0.3	%		7,715		3.9	%		2,720		2.1	%
Foreign Tax Provisions Under GILTI			4,808		2.8	%		—		—	%		—		—	%
Other			4,391		2.6	%		1,576		0.8	%		2,496		1.9	%
Income Tax Provision		$	34,157		20.1	%	$	84,102		42.3	%	$	9,594		7.3	%

Deferred Tax Assets (Liabilities)

These assets and liabilities are composed of the following (in thousands):

		June 30,
		2019			2018			2017
Employee Benefits		$	10,505		$	11,957		$	18,648
Stock-Based Compensation			6,549			7,577			18,130
Deferred Rent			7,736			9,841			17,588
Receivable Reserve			2,601			7,953			11,308
Restructuring Costs			6,017			8,704			17,148
Depreciation			—			3,380			—
Other Reserves			2,830			4,766			6,701
Loss and Credit Carryforwards, Net			36,259			37,340			37,569
Less: Valuation Allowance			(9,943)			(11,496)			(9,456)
Gross Deferred Tax Assets			62,554			80,022			117,636
Depreciation			(14)			—			(10,641)
Deferred Taxes on Unremitted Foreign Earnings			(3,146)			(2,346)			—
Amortization of Intangible Assets			(70,319)			(68,011)			(106,952)
Other Accruals			(187)			—			—
Gross Deferred Tax Liability			(73,666)			(70,357)			(117,593)
Net Deferred Tax (Liability) Asset		$	(11,112)		$	9,665		$	43

Net Operating Loss and Credit Carryforwards

Adtalem has the following tax net operating loss (tax effected), interest (tax effected), and credit carryforwards as of June 30, 2019 (in thousands):

		June 30,			Years of Expiration
		2019			Beginning		Ending
U.S. Net Operating Loss Carryforwards		$	24		2038		2038
U.S. Interest Expense Carryforwards			215		No Expiration
U.S. Credit Carryforwards			1,192		2027		2029
State Net Operating Loss Carryforwards			18,446		2022		2039
State Credit Carryforwards			1,152		2022		2024
Foreign Net Operating Loss Carryforwards			10,924		2021		2039
Foreign Net Operating Loss Carryforwards			4,306		No Expiration
Total Loss and Credit Carryforwards, Net		$	36,259

Changes in Unrecognized Tax Benefits

The changes in our unrecognized tax benefits were (in thousands):

		Year Ended June 30,
		2019			2018			2017
Balance at Beginning of Period		$	34,404		$	7,901		$	7,497
Increases from Positions Taken During Prior Periods			593			1,151			1,397
Decreases from Positions Taken During Prior Periods			(2,174)			(5,711)			(1,445)
Increases from Positions Taken During the Current Period			606			31,063			452
Balance at End of Period		$	33,429		$	34,404		$	7,901

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