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Restructuring Charges

6 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

Restructuring Charges

6. Restructuring Charges

During the second quarter and first six months of 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 the second quarter and first six months ended of 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 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 20 “Segment Information.” Pre-tax restructuring charges by segment were as follows (in thousands):

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​

​

​

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Three Months Ended December 31, 2022

​

Six Months Ended December 31, 2022

​

​

Real Estate and Other

​

Termination Benefits

​

Total

​

Real Estate and Other

​

Termination Benefits

​

Total

Chamberlain

$

—

$

—

$

—

​

$

818

$

—

$

818

Walden

​

41

​

—

​

41

​

​

3,067

​

54

​

3,121

Medical and Veterinary

​

87

​

—

​

87

​

​

6,913

​

—

​

6,913

Home Office and Other

​

557

​

678

​

1,235

​

​

4,626

​

950

​

5,576

Total

​

$

685

​

$

678

​

$

1,363

​

$

15,424

​

$

1,004

​

$

16,428

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​

​

​

​

​

​

​

​

​

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​

​

​

​

​

​

​

​

​

​

Three Months Ended December 31, 2021

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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

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​

62

​

126

​

188

Home Office and Other

​

657

​

416

​

1,073

​

​

1,646

​

2,521

​

4,167

Total

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$

982

​

$

2,405

​

$

3,387

​

$

1,971

​

$

4,510

​

$

6,481

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

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​	​	​	​
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)	​		1,004
Reduction in liability (payments and adjustments)	​		(616)
Liability balance as of December 31, 2022	​	$	1,201

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The liability balance of $1.2 million is recorded as accrued liabilities on the Consolidated Balance Sheets as of December 31, 2022. We continue to incur restructuring charges or reversals related to exiting 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 5.P.4(e))
-URI https://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 https://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 https://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
-Subparagraph (e)
-URI https://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 https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869

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