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Restructuring Charges

3 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

Restructuring Charges

6. Restructuring Charges

During the first quarter of fiscal year 2022, Adtalem recorded restructuring charges primarily related to Adtalem’s home office workforce reductions related to synergy actions with regard to the Walden acquisition and Adtalem’s home office real estate consolidations. During the first quarter of fiscal year 2021, Adtalem recorded restructuring charges primarily related to Adtalem’s home office and ACAMS real estate consolidations. 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 represented severance pay and benefits for these employees. Adtalem’s home office is classified as “Home Office and Other” in Note 20 “Segment Information.” Pre-tax restructuring charges by segment were as follows (in thousands):

​

​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended September 30, 2021
​	​	Real Estate and Other		​	Termination Benefits		​	Total
Financial Services	​	$	821		$	—		$	821
Home Office and Other	​	​	989		​	2,106		​	3,095
Total	​	$	1,810	​	$	2,106	​	$	3,916

​

​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended September 30, 2020
​	​	Real Estate and Other		​	Termination Benefits		​	Total
Financial Services	​	$	1,415	​	$	—	​	$	1,415
Home Office and Other		​	2,318		​	490		​	2,808
Total	​	$	3,733	​	$	490	​	$	4,223

​

The following table summarizes the separation and restructuring plan activity for the fiscal years 2021 and 2022, for which cash payments are required (in thousands):

​

​	​	​	​
Liability balance as of June 30, 2020	​	$	1,435
Increase in liability (separation and other charges)	​		490
Reduction in liability (payments and adjustments)	​		(1,925)
Liability balance as of June 30, 2021	​		—
Increase in liability (separation and other charges)	​		2,814
Reduction in liability (payments and adjustments)	​		—
Liability balance as of September 30, 2021	​	$	2,814

​

Of this liability balance, $2.3 million is recorded as accrued liabilities and $0.5 million is recorded as other liabilities on the Consolidated Balance Sheet as of September 30, 2021. In addition to continuing to incur restructuring charges or reversals related to exiting leased space from previous restructuring activities, we have begun implementing additional restructuring plans to achieve synergies with the Walden acquisition.

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- References

No definition available.

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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://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 5.P.4(e))
-URI http://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-URI http://asc.fasb.org/topic&trid=2175745

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section 50
-Paragraph 1
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-URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869

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