XML 62 R37.htm IDEA: XBRL DOCUMENT
v3.22.2

Income Taxes (Tables) | 12 Months Ended
--- | ---
Jun. 30, 2022
Income Tax Disclosure [Abstract] |
Income before Income Tax | Income from continuing operations before income taxes, classified by source of income, were as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended June 30,
​ | ​ | 2022 | ​ | 2021 | ​ | 2020
Domestic | ​ | $ | (111,001) | ​ | $ | 12,471 | ​ | $ | 129,532
Foreign | ​ |  | 65,937 | ​ |  | 70,948 | ​ |  | 75,454
Total | ​ | $ | (45,064) | ​ | $ | 83,419 | ​ | $ | 204,986
Income Tax Provisions (Benefits) | The components of the (benefit from) provision for income taxes were as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended June 30,
​ |  | 2022 | ​ | 2021 | ​ | 2020
Current tax provision (benefit): |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. federal | ​ | $ | (6,465) | ​ | $ | 10,631 | ​ | $ | (9,572)
State and local | ​ |  | 4,154 | ​ |  | 1,691 | ​ |  | (601)
Foreign | ​ |  | 725 | ​ |  | 547 | ​ |  | 519
Total current | ​ |  | (1,586) | ​ |  | 12,869 | ​ |  | (9,654)
Deferred tax provision (benefit): | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. federal | ​ |  | (6,425) | ​ |  | (2,970) | ​ |  | (4,114)
State and local | ​ |  | (6,597) | ​ |  | 996 | ​ |  | (271)
Foreign | ​ |  | (629) | ​ |  | 2,194 | ​ |  | (900)
Total deferred | ​ |  | (13,651) | ​ |  | 220 | ​ |  | (5,285)
(Benefit from) provision for income taxes | ​ | $ | (15,237) | ​ | $ | 13,089 | ​ | $ | (14,939)
Income Tax Provisions Computed using Statutory U.S. Federal Rate | The effective tax rate differs from the statutory tax rates as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended June 30, |
​ | ​ | 2022 | ​ | ​ | 2021 | ​ | ​ | 2020 |
Income tax at statutory rate | ​ | $ | (9,463) | ​ | 21.0 | % | ​ | $ | 17,518 | ​ | 21.0 | % | ​ | $ | 43,047 | ​ | 21.0 | %
Lower rates on foreign operations | ​ |  | (14,040) |  | 31.2 | % | ​ |  | (12,219) |  | (14.6) | % | ​ |  | (16,182) |  | (7.9) | %
State income taxes | ​ |  | (607) |  | 1.3 | % | ​ |  | 1,199 |  | 1.4 | % | ​ |  | 1,338 |  | 0.7 | %
Loss on investment in subsidiary | ​ |  | (1,669) |  | 3.7 | % | ​ |  | — |  | — | % | ​ |  | (25,688) |  | (12.5) | %
Deferred tax benefit from acquisitions and divestitures | ​ |  | (1,153) |  | 2.6 | % | ​ |  | — |  | — | % | ​ |  | — |  | — | %
Gain on derivative | ​ | ​ | — | ​ | — | % | ​ |  | — | ​ | — | % | ​ |  | (23,252) | ​ | (11.3) | %
Permanent non-deductible items | ​ |  | 2,788 |  | (6.2) | % | ​ |  | 796 |  | 1.0 | % | ​ |  | (707) |  | (0.3) | %
Foreign tax provisions under GILTI | ​ | ​ | 8,639 | ​ | (19.2) | % | ​ |  | 5,506 | ​ | 6.6 | % | ​ |  | 6,440 | ​ | 3.1 | %
Other | ​ |  | 268 |  | (0.6) | % | ​ |  | 289 |  | 0.3 | % | ​ |  | 65 |  | — | %
(Benefit from) provision for income taxes | ​ | $ | (15,237) |  | 33.8 | % | ​ | $ | 13,089 |  | 15.6 | % | ​ | $ | (14,939) |  | (7.3) | %
Deferred Tax Assets (Liabilities) | The components of the deferred income tax assets and liabilities were as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30,
​ | ​ | 2022 | ​ | 2021
Employee benefits | ​ | $ | 9,936 | ​ | $ | 12,643
Stock-based compensation | ​ |  | 6,675 | ​ |  | 6,895
Receivable reserve | ​ |  | 6,919 | ​ |  | 2,598
Operating lease liabilities | ​ | ​ | 44,089 | ​ | ​ | 50,234
Other reserves | ​ |  | 1,865 | ​ |  | 4,117
Loss and credit carryforwards, net | ​ |  | 21,206 | ​ |  | 15,334
Less: valuation allowance | ​ |  | (10,390) | ​ |  | (4,985)
Gross deferred tax assets | ​ |  | 80,300 | ​ |  | 86,836
Depreciation | ​ |  | (5,314) | ​ |  | (1,696)
Deferred taxes on unremitted foreign earnings | ​ | ​ | (397) | ​ | ​ | (733)
Amortization of intangible assets | ​ |  | (18,975) | ​ |  | (22,161)
Operating lease assets | ​ | ​ | (30,075) | ​ | ​ | (35,106)
Other accruals | ​ | ​ | — | ​ | ​ | 169
Gross deferred tax liability | ​ |  | (54,761) | ​ |  | (59,527)
Net deferred tax asset (liability) | ​ | $ | 25,539 | ​ | $ | 27,309
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, 2022 (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | Years of Expiration
​ | ​ | 2022 | ​ | Beginning | ​ | Ending
U.S. credit carryforwards | ​ | $ | 672 |  | 2027 |  | 2030
State net operating loss carryforwards | ​ |  | 16,006 |  | 2024 |  | 2042
Foreign net operating loss carryforwards | ​ |  | 4,528 |  | 2023 |  | 2032
Total loss and credit carryforwards, net | ​ | $ | 21,206 |  | ​ | ​ | ​
Changes in Unrecognized Tax Benefits | The changes in our unrecognized tax benefits were (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended June 30,
​ | ​ | 2022 | ​ | 2021 | ​ | 2020
Balance at beginning of period | ​ | $ | 9,926 | ​ | $ | 11,001 | ​ | $ | 31,303
Increases from positions taken during prior periods | ​ |  | 1,074 | ​ |  | 47 | ​ |  | —
Decreases from positions taken during prior periods | ​ |  | (2,815) | ​ |  | (904) | ​ |  | (26,476)
Increases from positions taken during the current period | ​ |  | 2,845 | ​ |  | 42 | ​ |  | 6,454
Reductions due to lapse of statute | ​ |  | (373) | ​ |  | (257) | ​ |  | (206)
Reductions due to settlement | ​ |  | — | ​ |  | (3) | ​ |  | (74)
Balance at end of period | ​ | $ | 10,657 | ​ | $ | 9,926 | ​ | $ | 11,001

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI https://asc.fasb.org/extlink&oid=126976462&loc=d3e36027-109320 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information, such as tax authority, amounts, and expiration dates, of net operating loss carryforwards, including an assessment of the likelihood of utilization. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32559-109319 + Details
Name: | us-gaap_SummaryOfOperatingLossCarryforwardsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration