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Income Taxes (Tables) | 12 Months Ended
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Jun. 30, 2020
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,
​ | ​ | 2020 | ​ | 2019 | ​ | 2018
U.S. | ​ | $ | 160,334 | ​ | $ | 80,209 | ​ | $ | 63,353
Foreign | ​ |  | 76,845 | ​ |  | 59,538 | ​ |  | 92,826
Total | ​ | $ | 237,179 | ​ | $ | 139,747 | ​ | $ | 156,179
Income Tax Provisions (Benefits) | The income tax provisions related to the above results are as follows (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended June 30,
​ |  | 2020 |  | 2019 |  | 2018
Current tax provision (benefit): |  | ​ |  |  | ​ |  |  | ​ |
U.S. federal | ​ | $ | (3,097) | ​ | $ | 15,912 | ​ | $ | 68,525
State and local | ​ |  | 735 | ​ |  | 1,749 | ​ |  | (762)
Foreign | ​ |  | 519 | ​ |  | 2,224 | ​ |  | 5,785
Total current | ​ |  | (1,843) | ​ |  | 19,885 | ​ |  | 73,548
Deferred tax provision (benefit): | ​ |  |  | ​ |  |  | ​ |  |
U.S. federal | ​ |  | (4,197) | ​ |  | 4,066 | ​ |  | 19,019
State and local | ​ |  | (104) | ​ |  | 9,028 | ​ |  | (1,173)
Foreign | ​ |  | (214) | ​ |  | (101) | ​ |  | (3,287)
Total deferred | ​ |  | (4,515) | ​ |  | 12,993 | ​ |  | 14,559
(Benefit from) provision for income taxes | ​ | $ | (6,358) | ​ | $ | 32,878 | ​ | $ | 88,107
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, |
​ |  | 2020 |  | 2019 |  | 2018 |
Income tax at statutory rate | ​ | $ | 49,807 |  | 21.0 | % | $ | 29,347 |  | 21.0 | % | $ | 43,823 |  | 28.1 | %
Lower rates on foreign operations | ​ |  | (16,210) |  | (6.8) | % |  | (12,738) |  | (9.1) | % |  | (21,777) |  | (13.9) | %
State income taxes | ​ |  | 3,072 |  | 1.3 | % |  | 5,825 |  | 4.2 | % |  | 3,648 |  | 2.3 | %
Impact of Tax Cuts and Jobs Act of 2017 | ​ |  | — |  | — | % |  | — |  | — | % |  | 103,878 |  | 66.5 | %
Loss on investment in subsidiary | ​ |  | (25,688) |  | (10.8) | % |  | 1,797 |  | 1.3 | % |  | (48,903) |  | (31.3) | %
Gain on derivative | ​ | ​ | (23,252) | ​ | (9.8) | % | ​ | — | ​ | — | % | ​ | — | ​ | — | %
Permanent non-deductible items | ​ |  | (236) |  | (0.1) | % |  | 469 |  | 0.3 | % |  | 5,976 |  | 3.8 | %
Foreign tax provisions under GILTI | ​ | ​ | 6,502 | ​ | 2.7 | % | ​ | 3,231 | ​ | 2.3 | % | ​ | — | ​ | — | %
Other | ​ |  | (353) |  | (0.1) | % |  | 4,947 |  | 3.5 | % |  | 1,462 |  | 0.9 | %
(Benefit from) provision for income taxes | ​ | $ | (6,358) |  | (2.7) | % | $ | 32,878 |  | 23.5 | % | $ | 88,107 |  | 56.4 | %
Deferred Tax Assets (Liabilities) | These assets and liabilities are composed of the following (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30,
​ |  | 2020 |  | 2019 |  | 2018
Employee benefits | ​ | $ | 10,818 | ​ | $ | 10,504 | ​ | $ | 11,956
Stock-based compensation | ​ |  | 6,924 | ​ |  | 6,549 | ​ |  | 7,577
Deferred rent | ​ |  | — | ​ |  | 7,620 | ​ |  | 9,841
Receivable reserve | ​ |  | 2,530 | ​ |  | 1,542 | ​ |  | 7,170
Restructuring costs | ​ |  | — | ​ |  | 6,185 | ​ |  | 8,705
Depreciation | ​ |  | — | ​ |  | 6 | ​ |  | 3,395
Operating lease liabilities | ​ | ​ | 48,110 | ​ | ​ | — | ​ | ​ | —
Other reserves | ​ |  | 4,748 | ​ |  | 1,473 | ​ |  | 3,634
Loss and credit carryforwards, net | ​ |  | 23,695 | ​ |  | 33,061 | ​ |  | 35,221
Less: valuation allowance | ​ |  | (9,937) | ​ |  | (9,943) | ​ |  | (11,496)
Gross deferred tax assets | ​ |  | 86,888 | ​ |  | 56,997 | ​ |  | 76,003
Depreciation | ​ |  | (177) | ​ |  | — | ​ |  | —
Deferred taxes on unremitted foreign earnings | ​ | ​ | (525) | ​ | ​ | (3,146) | ​ | ​ | (2,346)
Amortization of intangible assets | ​ |  | (54,864) | ​ |  | (66,257) | ​ |  | (65,482)
Operating lease assets | ​ | ​ | (33,279) | ​ | ​ | — | ​ | ​ | —
Other accruals | ​ | ​ | (741) | ​ | ​ | (187) | ​ | ​ | —
Gross deferred tax liability | ​ |  | (89,586) | ​ |  | (69,590) | ​ |  | (67,828)
Net deferred tax (liability) asset | ​ | $ | (2,698) | ​ | $ | (12,593) | ​ | $ | 8,175
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, 2020 (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | Years of Expiration
​ |  | 2020 |  | Beginning |  | Ending
U.S. interest expense carryforwards | ​ | $ | 99 | ​ | No expiration
U.S. credit carryforwards | ​ | ​ | 518 |  | 2027 |  | 2029
State net operating loss carryforwards | ​ |  | 17,623 |  | 2022 |  | 2039
Foreign net operating loss carryforwards | ​ |  | 4,361 |  | 2021 |  | 2038
Foreign net operating loss carryforwards | ​ |  | 1,094 |  | No expiration
Total loss and credit carryforwards, net | ​ | $ | 23,695 |  |  |  |
Changes in Unrecognized Tax Benefits | The changes in our unrecognized tax benefits were (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended June 30,
​ |  | 2020 |  | 2019 |  | 2018
Balance at beginning of period | ​ | $ | 31,818 | ​ | $ | 32,804 | ​ | $ | 7,901
Increases from positions taken during prior periods | ​ |  | — | ​ |  | 582 | ​ |  | 1,151
Decreases from positions taken during prior periods | ​ |  | (26,489) | ​ |  | (660) | ​ |  | (3,501)
Increases from positions taken during the current period | ​ |  | 6,456 | ​ |  | 606 | ​ |  | 29,463
Reductions due to lapse of statute | ​ |  | (231) | ​ |  | (1,390) | ​ |  | (559)
Reductions due to settlement | ​ |  | (73) | ​ |  | (124) | ​ |  | (1,651)
Balance at end of period | ​ | $ | 11,481 | ​ | $ | 31,818 | ​ | $ | 32,804

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