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RESTRUCTURING CHARGES | 3 Months Ended
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Sep. 30, 2018
Restructuring and Related Activities [Abstract] |
RESTRUCTURING CHARGES | NOTE 10: RESTRUCTURING CHARGES During the first three months of fiscal year 2019, Adtalem recorded restructuring charges primarily related to the impairment of the land, buildings and equipment at the Dominica campus of RUSM and severance related to workforce reductions in Dominica. On August 3, 2018, management announced its decision to relocate RUSM’s campus operations to Barbados and not return to Dominica. The land, buildings and equipment in Dominica have been fully impaired as management has determined the market value less the costs to sell the facilities or move the equipment is zero (see “Note 3: Summary of Significant Accounting Policies”). In addition, during the first three months of fiscal year 2019, Adtalem recorded restructuring charges primarily related to real estate consolidations at Adtalem’s home office. During the first three months of fiscal year 2018, Adtalem recorded restructuring charges primarily related to workforce reductions at Adtalem’s home office. When estimating costs of exiting lease space, estimates are made which could differ materially from actual results and result in additional restructuring charges or reversals in future periods. Termination benefit charges, as a result of reducing Adtalem’s workforce by 176 and 7 positions in the first three months of fiscal year 2019 and 2018, respectively, represented severance pay and benefits for these employees. Adtalem’s home office is classified as “Home Office and Other” in “Note 14: Segment Information.” Pre-tax restructuring charges by segment were as follows (in thousands):
|  | Three Months Ended September 30, 2018 |
|  | Real Estate ‎ and Other |  |  | Termination ‎ Benefits |  |  | Total |
Medical and Healthcare |  | $ | 37,753 |  |  | $ | 1,262 |  |  | $ | 39,015 |
Technology and Business |  |  | 75 |  |  |  | - |  |  |  | 75 |
Home Office and Other |  |  | 509 |  |  |  | (51 | ) |  |  | 458 |
Total |  | $ | 38,337 |  |  | $ | 1,211 |  |  | $ | 39,548 |
|  | Three Months Ended September 30, 2017 |
|  | Real Estate ‎ and Other |  |  | Termination ‎ Benefits |  |  | Total |
Medical and Healthcare |  | $ | 26 |  |  | $ | 86 |  |  | $ | 112 |
Home Office and Other |  |  | (625 | ) |  |  | 1,650 |  |  |  | 1,025 |
Total |  | $ | (599 | ) |  | $ | 1,736 |  |  | $ | 1,137 |
The following table summarizes the separation and restructuring plan activity for the fiscal years 2019 and 2018, for which cash payments are required (in thousands):
Liability balance at June 30, 2017 |  | $ | 46,115 |
Increase in liability (separation and other charges) |  |  | 19,893 |
Reduction in liability (payments and adjustments) |  |  | (27,081 | )
Liability balance at June 30, 2018 |  |  | 38,927 |
Increase in liability (separation and other charges) |  |  | 1,465 |
Reduction in liability (payments and adjustments) |  |  | (7,496 | )
Liability balance at September 30, 2018 |  | $ | 32,896 |
Of this liability balance, $14.7 million is recorded as Accrued Liabilities and $18.2 million is recorded as Other Liabilities on the Consolidated Balance Sheet as of September 30, 2018. These liability balances primarily represent rent accruals and costs for employees that have either not yet separated from Adtalem or their full severance has not yet been paid. All of these remaining costs are expected to be paid out for periods of up to 7 years.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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