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Restructuring Charges
 9 Months Ended
Mar. 31, 2023
Restructuring and Related Activities [Abstract]  
Restructuring Charges

6. Restructuring Charges

During the third quarter and first nine 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 third quarter and first nine 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 Medical and Veterinary 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):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended March 31, 2023

​

Nine Months Ended March 31, 2023

​

​

Real Estate
and Other

​

Termination
Benefits

​

Total

​

Real Estate
and Other

​

Termination
Benefits

​

Total

Chamberlain

 

$

—

 

$

—

 

$

—

​

$

818

 

$

—

 

$

818

Walden

 

​

53

 

​

—

 

​

53

​

​

3,120

 

​

54

 

​

3,174

Medical and Veterinary

 

​

81

 

​

340

 

​

421

​

​

6,994

 

​

340

 

​

7,334

Home Office and Other

 

​

804

 

​

—

 

​

804

​

​

5,430

 

​

950

 

​

6,380

Total

​

$

938

​

$

340

​

$

1,278

​

$

16,362

​

$

1,344

​

$

17,706

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended March 31, 2022

​

Nine Months Ended March 31, 2022

​

​

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

​

$

16,999

​

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)

​

 

1,343

Reduction in liability (payments and adjustments)

​

 

(1,293)

Liability balance as of March 31, 2023

​

$

863

​

The liability balance of $0.9 million is recorded as accrued liabilities on the Consolidated Balance Sheets as of March 31, 2023. We continue to incur restructuring charges or reversals related to exiting leased space from previous restructuring activities.