RESTRUCTURING CHARGES

6 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

NOTE 11: RESTRUCTURING CHARGES

During the second quarter and first six months of fiscal year 2017, DeVry Group recorded pre-tax restructuring charges primarily related to real estate consolidations of $5.1 million and $10.1 million, respectively. These restructuring charges were allocated to segment expense in the first six months of fiscal year 2017 as follows: $3.7 million to Medical and Healthcare, $4.0 million to Business, Technology and Management and $2.4 million to the DeVry Group home office which is classified as “Home Office and Other” in “Note 15: Segment Information.”

During the second quarter and first six months of fiscal year 2016, DeVry Group recorded pre-tax restructuring charges related to real estate consolidations of $12.4 million and $31.2 million, respectively. Also during the first six months of fiscal year 2016, DeVry University implemented a reduction in force (“RIF”) which reduced DeVry University’s workforce by 187 total positions and resulted in pre-tax restructuring charges of $0.5 million and $5.8 million during the second quarter and first six months of fiscal year 2016, respectively. These charges represented severance pay and benefits for these employees. These restructuring charges were allocated to segment expense in the first six months of fiscal year 2016 as follows: $0.1 million to Medical and Healthcare and $36.9 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)		5.8
Reduction in liability (payments and adjustments)		(16.0)
Liability balance at December 31, 2016	$	38.0

Of this liability balance, $15.3 million is recorded as Accrued Expenses and $22.7 million is recorded as Deferred Rent and Other Liabilities on the Consolidated Balance Sheet at December 31, 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.