XML 22 R13.htm IDEA: XBRL DOCUMENT v3.22.0.1
Restructuring Charges
 6 Months Ended
Dec. 31, 2021
Restructuring and Related Activities [Abstract]  
Restructuring Charges

6. Restructuring Charges

During the second quarter and first six months of fiscal year 2022, Adtalem recorded restructuring charges primarily related to workforce reductions related to synergy actions with regard to the Walden acquisition and Adtalem’s home office real estate consolidations. During the second quarter and first six months of fiscal year 2021, Adtalem recorded restructuring charges primarily related to Adtalem’s home office 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 December 31, 2021

​

Six Months Ended December 31, 2021

​

​

Real Estate
and Other

​

Termination
Benefits

​

Total

​

Real Estate
and Other

​

Termination
Benefits

​

Total

Chamberlain

 

$

263

 

$

72

 

$

335

​

$

263

 

$

72

 

$

335

Walden

 

​

—

 

​

1,791

 

​

1,791

​

​

—

 

​

1,791

 

​

1,791

Medical and Veterinary

 

​

62

 

​

126

 

​

188

​

​

62

 

​

126

 

​

188

Home Office and Other

 

​

657

 

​

416

 

​

1,073

​

​

1,646

 

​

2,521

 

​

4,167

Total

​

$

982

​

$

2,405

​

$

3,387

​

$

1,971

​

$

4,510

​

$

6,481

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended December 31, 2020

​

Six Months Ended December 31, 2020

​

​

Real Estate
and Other

​

Termination
Benefits

​

Total

​

Real Estate
and Other

​

Termination
Benefits

​

Total

Home Office and Other

 

$

1,166

 

$

—

 

$

1,166

 

$

3,592

 

$

490

 

$

4,082

Total

​

$

1,166

​

$

—

​

$

1,166

​

$

3,592

​

$

490

​

$

4,082

​

The following table summarizes the separation and restructuring plan activity for 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)

​

 

5,219

Reduction in liability (payments and adjustments)

​

 

(2,241)

Liability balance as of December 31, 2021

​

$

2,978

​

Of this liability balance, $2.7 million is recorded as accrued liabilities and $0.3 million is recorded as other liabilities on the Consolidated Balance Sheet as of December 31, 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.