RESTRUCTURING CHARGES

12 Months Ended

Jun. 30, 2016

Restructuring and Related Activities [Abstract]

NOTE 10: RESTRUCTURING CHARGES

During fiscal year 2016, DeVry Group recorded pre-tax charges, including accelerated depreciation, related to real estate consolidations of $50.1 million. Also during fiscal year 2016, DeVry Group implemented several reductions in force (“RIF”) which reduced DeVry Group’s workforce by 761 total positions and resulted in pre-tax charges of $24.1 million during fiscal year 2016. These charges represented severance pay and benefits for these employees. These restructuring charges were charged to segment costs in fiscal year 2016 as follows: $5.6 million to Medical and Healthcare, $1.2 million to International and Professional Education, $66.9 million to Business, Technology and Management and $0.5 million to the DeVry Group home office which is classified as “Home Office and Other” in “Note 15: Segment Information.”

During fiscal year 2015, DeVry Group recorded pre-tax charges, including accelerated depreciation, related to real estate consolidations of $23.5 million. Also during fiscal year 2015, DeVry University implemented a voluntary separation plan (“VSP”) and a RIF. DeVry Group home office and Becker also experienced workforce reductions in fiscal year 2015. These actions reduced DeVry Group’s workforce by 668 total positions and resulted in pre-tax charges of $19.4 million during fiscal year 2015. These charges represented severance pay and benefits for these employees. These restructuring charges were charged to segment costs in fiscal year 2015 as follows: $6.9 million to Medical and Healthcare, $0.1 million to International and Professional Education, $32.6 million to Business, Technology and Management and $3.3 million to the DeVry Group home office.

The following table summarizes the separation and restructuring plan activity for the fiscal years 2016 and 2015, for which cash payments are required (in millions):

Liability balance at June 30, 2014	$	15.4
Increase in liability (separation and other charges)		42.0
Reduction in liability (payments and adjustments)		(30.4)
Liability balance at June 30, 2015		27.0
Increase in liability (separation and other charges)		67.5
Reduction in liability (payments and adjustments)		(46.3)
Liability balance at June 30, 2016	$	48.2

Of this liability balance, $26.7 million is recorded as Accrued Expenses and $21.5 million is recorded as Deferred Rent and Other Liabilities in the Consolidated Balance Sheet at June 30, 2016. These liability balances primarily represent rent accruals and costs for employees that have either not yet separated from DeVry Group or their full severance has not yet been paid. All of these remaining costs are expected to be paid over the next 12 months except for rent charges which may be paid out for periods of up to 8 years.