RESTRUCTURING CHARGES

3 Months Ended

Sep. 30, 2016

Restructuring and Related Activities [Abstract]

NOTE 9: RESTRUCTURING CHARGES

During the first quarter of fiscal year 2017, DeVry Group recorded pre-tax charges, including accelerated depreciation, primarily related to real estate consolidations of $5.0 million. These restructuring charges were charged to segment expense in the first quarter of fiscal year 2017 as follows: $1.3 million to Medical and Healthcare, $1.7 million to Business, Technology and Management and $2.0 million to the DeVry Group home office which is classified as “Home Office and Other” in “Note 13: Segment Information.”

During the first quarter of fiscal year 2016, DeVry Group recorded pre-tax charges, including accelerated depreciation, related to real estate consolidations of $18.8 million. Also during the first quarter of fiscal year 2016, DeVry University implemented a reduction in force (“RIF”) which reduced DeVry University’s workforce by 104 total positions and resulted in pre-tax charges of $5.3 million during the first quarter of fiscal year 2016. These charges represented severance pay and benefits for these employees. These restructuring charges were charged to segment expense in the first quarter of fiscal year 2016 as follows: $0.4 million to Medical and Healthcare and $23.7 million to Business, Technology and Management.

The following table summarizes the separation and restructuring plan activity for the fiscal years 2017 and 2016, for which cash payments are required (in millions):

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
Increase in liability (separation and other charges)		4.1
Reduction in liability (payments and adjustments)		(11.9)
Liability balance at September 30, 2016	$	40.4

Of this liability balance, $17.1 million is recorded as Accrued Expenses and $23.3 million is recorded as Deferred Rent and Other Liabilities in the Consolidated Balance Sheet at September 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.