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Restructuring Charges
 9 Months Ended
Mar. 31, 2022
Restructuring and Related Activities [Abstract]  
Restructuring Charges

6. Restructuring Charges

During the third quarter and first nine 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 Medical and Veterinary and Adtalem’s home office real estate consolidations. During the third quarter and first nine 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):

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​

​

​

​

​

​

Three Months Ended March 31, 2022

​

Nine Months Ended March 31, 2022

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​

Real Estate
and Other

​

Termination
Benefits

​

Total

​

Real Estate
and Other

​

Termination
Benefits

​

Total

Chamberlain

 

$

—

 

$

1,931

 

$

1,931

​

$

263

 

$

2,003

 

$

2,266

Walden

 

​

—

 

​

2,225

 

​

2,225

​

​

—

 

​

4,016

 

​

4,016

Medical and Veterinary

 

​

2,709

 

​

1,860

 

​

4,569

​

​

2,771

 

​

1,986

 

​

4,757

Home Office and Other

 

​

1,446

 

​

347

 

​

1,793

​

​

3,092

 

​

2,868

 

​

5,960

Total

​

$

4,155

​

$

6,363

​

$

10,518

​

$

6,126

​

$

10,873

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$

16,999

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​

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​

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​

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​

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​

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Three Months Ended March 31, 2021

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Nine Months Ended March 31, 2021

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​

Real Estate
and Other

​

Termination
Benefits

​

Total

​

Real Estate
and Other

​

Termination
Benefits

​

Total

Home Office and Other

 

$

1,217

 

$

—

 

$

1,217

 

$

4,809

 

$

490

 

$

5,299

Total

​

$

1,217

​

$

—

​

$

1,217

​

$

4,809

​

$

490

​

$

5,299

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

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​

​

​

​

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)

​

 

11,582

Reduction in liability (payments and adjustments)

​

 

(9,128)

Liability balance as of March 31, 2022

​

$

2,454

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The liability balance of $2.5 million is recorded as accrued liabilities on the Consolidated Balance Sheets as of March 31, 2022. 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.