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Restructuring Charges

12 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring Charges

6. Restructuring Charges

During fiscal year 2023, Adtalem recorded restructuring charges primarily driven by real estate consolidations at Walden, Medical and Veterinary, and Adtalem’s home office resulting in impairments on operating lease assets and property and equipment. During fiscal year 2022, Adtalem recorded restructuring charges primarily driven by workforce reductions and contract terminations related to synergy actions with regards to the Walden acquisition and Medical and Veterinary and Adtalem’s home office real estate consolidations. During fiscal year 2021, Adtalem recorded restructuring charges primarily driven by 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 may result in additional restructuring charges or reversals in future periods. Termination benefit charges represent severance pay and benefits for employees

impacted by workforce reductions. Adtalem’s home office is classified as “Home Office and Other” in Note 22 “Segment Information.” Pre-tax restructuring charges by segment were as follows (in thousands):

​

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended June 30, 2023
​	​	Real Estate and Other		​	Termination Benefits		​	Total
Chamberlain	​	$	818		$	—		$	818
Walden	​	​	3,191		​	54		​	3,245
Medical and Veterinary	​	​	7,071		​	616		​	7,687
Home Office and Other	​	​	6,117		​	950		​	7,067
Total	​	$	17,197	​	$	1,620	​	$	18,817

​

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended June 30, 2022
​	​	Real Estate and Other		​	Termination Benefits		​	Total
Chamberlain	​	$	835		$	2,003		$	2,838
Walden	​	​	—		​	4,053		​	4,053
Medical and Veterinary	​	​	7,675		​	2,116		​	9,791
Home Office and Other	​	​	5,977		​	2,969		​	8,946
Total	​	$	14,487	​	$	11,141	​	$	25,628

​

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended June 30, 2021
​	​	Real Estate and Other		​	Termination Benefits		​	Total
Home Office and Other	​	$	6,379	​	$	490	​	$	6,869
Total	​	$	6,379	​	$	490	​	$	6,869

​

The following table summarizes the separation and restructuring plan activity for fiscal years 2022 and 2023, for which cash payments are required (in thousands):

​

​	​	​	​
Liability balance as of June 30, 2021	​	$	—
Increase in liability (separation and other charges)	​		11,851
Reduction in liability (payments and adjustments)	​		(11,038)
Liability balance as of June 30, 2022	​		813
Increase in liability (separation and other charges)	​		1,620
Reduction in liability (payments and adjustments)	​		(1,692)
Liability balance as of June 30, 2023	​	$	741

​

The liability balance of $0.7 million is recorded as accrued liabilities on the Consolidated Balance Sheets as of June 30, 2023. We continue to incur restructuring charges or reversals related to exited leased space from previous restructuring activities.

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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
-Topic 420
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147482017/420-10-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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