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Income Taxes (Tables) | 12 Months Ended
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Jun. 30, 2024
Income Tax Disclosure [Abstract] |
Income before Income Tax | Income from continuing operations before income taxes, classified by source of income, was as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended June 30,
​ | ​ | 2024 | ​ | 2023 | ​ | 2022
Domestic | ​ | $ | 89,752 | ​ | $ | 51,422 | ​ | $ | (112,151)
Foreign | ​ |  | 74,185 | ​ |  | 60,613 | ​ |  | 60,657
Total | ​ | $ | 163,937 | ​ | $ | 112,035 | ​ | $ | (51,494)
Income Tax Provisions (Benefits) | The components of the provision for (benefit from) income taxes were as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended June 30,
​ |  | 2024 | ​ | 2023 | ​ | 2022
Current tax provision (benefit): |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. federal | ​ | $ | 11,243 | ​ | $ | 13,761 | ​ | $ | (6,767)
State and local | ​ |  | 3,489 | ​ |  | 824 | ​ |  | 4,154
Foreign | ​ |  | 419 | ​ |  | 614 | ​ |  | 725
Total current | ​ |  | 15,151 | ​ |  | 15,199 | ​ |  | (1,888)
Deferred tax provision (benefit): | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. federal | ​ |  | 4,870 | ​ |  | (1,099) | ​ |  | (6,425)
State and local | ​ |  | 2,745 | ​ |  | (4,347) | ​ |  | (6,597)
Foreign | ​ |  | 3,458 | ​ |  | 530 | ​ |  | (629)
Total deferred | ​ |  | 11,073 | ​ |  | (4,916) | ​ |  | (13,651)
Provision for (benefit from) income taxes | ​ | $ | 26,224 | ​ | $ | 10,283 | ​ | $ | (15,539)
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, |
​ | ​ | 2024 | ​ | ​ | 2023 | ​ | ​ | 2022 |
Income tax at statutory rate | ​ | $ | 34,427 | ​ | 21.0 | % | ​ | $ | 23,527 | ​ | 21.0 | % | ​ | $ | (10,814) | ​ | 21.0 | %
Lower rates on foreign operations | ​ |  | (11,419) |  | (7.0) | % | ​ |  | (11,668) |  | (10.4) | % | ​ |  | (12,879) |  | 25.0 | %
State income taxes | ​ |  | 4,557 |  | 2.8 | % | ​ |  | 2,719 |  | 2.4 | % | ​ |  | (661) |  | 1.3 | %
Loss on investment in subsidiary | ​ |  | — |  | — | % | ​ |  | — |  | — | % | ​ |  | (1,669) |  | 3.2 | %
Deferred tax benefit from acquisitions and divestitures | ​ |  | — |  | — | % | ​ |  | — |  | — | % | ​ |  | (1,153) |  | 2.2 | %
Research and development tax credits | ​ | ​ | (1,589) | ​ | (1.0) | % | ​ | ​ | (1,862) | ​ | (1.7) | % | ​ | ​ | — |  | — | %
Change in valuation allowance | ​ | ​ | (621) | ​ | (0.4) | % | ​ | ​ | (9,769) | ​ | (8.7) | % | ​ | ​ | 5,406 |  | (10.5) | %
Reduction in state loss carryforwards | ​ | ​ | — | ​ | — | % | ​ | ​ | 2,340 | ​ | 2.1 | % | ​ | ​ | (5,882) |  | 11.4 | %
Permanent non-deductible items | ​ |  | 2,293 |  | 1.4 | % | ​ |  | 1,630 |  | 1.5 | % | ​ |  | 2,788 |  | (5.4) | %
Foreign tax provisions under GILTI | ​ | ​ | 4,908 | ​ | 3.0 | % | ​ |  | 3,569 | ​ | 3.2 | % | ​ |  | 8,581 | ​ | (16.7) | %
Change in unrecognized tax benefits | ​ | ​ | (6,849) | ​ | (4.2) | % | ​ |  | 791 | ​ | 0.7 | % | ​ |  | 56 | ​ | (0.1) | %
Other | ​ |  | 517 |  | 0.3 | % | ​ |  | (994) |  | (0.9) | % | ​ |  | 688 |  | (1.3) | %
Provision for (benefit from) income taxes | ​ | $ | 26,224 |  | 16.0 | % | ​ | $ | 10,283 |  | 9.2 | % | ​ | $ | (15,539) |  | 30.2 | %
Deferred Tax Assets (Liabilities) | The components of the deferred income tax assets and liabilities were as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30,
​ | ​ | 2024 | ​ | 2023
Employee benefits | ​ | $ | 15,866 | ​ | $ | 11,719
Stock-based compensation | ​ |  | 7,664 | ​ |  | 7,310
Receivable reserve | ​ |  | 9,028 | ​ |  | 6,246
Capitalized research and experimental costs | ​ |  | 9,322 | ​ |  | 8,075
Operating lease liabilities | ​ | ​ | 42,526 | ​ | ​ | 41,235
Other reserves | ​ |  | 12,439 | ​ |  | 6,246
Loss and credit carryforwards, net | ​ |  | 15,426 | ​ |  | 19,259
Less: valuation allowance | ​ |  | — | ​ |  | (621)
Gross deferred tax assets | ​ |  | 112,271 | ​ |  | 99,469
Depreciation | ​ |  | (8,298) | ​ |  | (5,643)
Deferred taxes on unremitted foreign earnings | ​ | ​ | (210) | ​ | ​ | (428)
Amortization of intangible assets | ​ |  | (50,035) | ​ |  | (31,294)
Operating lease assets | ​ | ​ | (34,166) | ​ | ​ | (31,478)
Gross deferred tax liability | ​ |  | (92,709) | ​ |  | (68,843)
Net deferred tax asset | ​ | $ | 19,562 | ​ | $ | 30,626
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, 2024 (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | Years of Expiration
​ | ​ | 2024 | ​ | Beginning | ​ | Ending
U.S. interest expense carryforwards | ​ | $ | 506 |  | no expiration
U.S. credit carryforwards | ​ | ​ | 672 | ​ | 2027 | ​ | 2030
State net operating loss carryforwards | ​ |  | 9,053 |  | 2025 |  | 2043
State interest expense carryforwards | ​ | ​ | 592 | ​ | no expiration
State credit carryforwards | ​ | ​ | 130 | ​ | no expiration
Foreign net operating loss carryforwards | ​ |  | 4,473 |  | 2030 |  | 2033
Total loss and credit carryforwards, net | ​ | $ | 15,426 |  | ​ | ​ | ​
Changes in Valuation Allowance | The changes in our valuation allowances were as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended June 30,
​ | ​ | 2024 | ​ | 2023 | ​ | 2022
Balance at beginning of period | ​ | $ | 621 | ​ | $ | 10,390 | ​ | $ | 4,985
Charged to costs and expenses | ​ |  | — | ​ |  | (2,677) | ​ |  | 5,522
Deductions | ​ |  | (621) | ​ |  | (7,092) | ​ |  | (117)
Balance at end of period | ​ | $ | — | ​ | $ | 621 | ​ | $ | 10,390
Changes in Unrecognized Tax Benefits | The changes in our unrecognized tax benefits were as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended June 30,
​ | ​ | 2024 | ​ | 2023 | ​ | 2022
Balance at beginning of period | ​ | $ | 13,128 | ​ | $ | 11,645 | ​ | $ | 9,836
Increases from positions taken during prior periods | ​ |  | 953 | ​ |  | 1,299 | ​ |  | 1,074
Decreases from positions taken during prior periods | ​ |  | (1,248) | ​ |  | — | ​ |  | (1,737)
Increases from positions taken during the current period | ​ |  | 554 | ​ |  | 665 | ​ |  | 2,845
Reductions due to lapse of statute | ​ |  | (6,664) | ​ |  | (481) | ​ |  | (373)
Balance at end of period | ​ | $ | 6,723 | ​ | $ | 13,128 | ​ | $ | 11,645

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