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Restructuring Charges
3 Months Ended
Sep. 30, 2022
Restructuring and Related Activities [Abstract]  
Restructuring Charges

6. Restructuring Charges

During the first quarter 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 first quarter 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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​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 2022

​

​

Real Estate
and Other

​

Termination
Benefits

​

Total

Chamberlain

​

$

818

 

$

—

 

$

818

Walden

​

​

3,026

 

​

54

 

​

3,080

Medical and Veterinary

​

​

6,826

 

​

—

 

​

6,826

Home Office and Other

​

​

4,069

 

​

272

 

​

4,341

Total

​

$

14,739

​

$

326

​

$

15,065

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 2021

​

​

Real Estate
and Other

​

Termination
Benefits

​

Total

Home Office and Other

 

$

989

 

$

2,105

 

$

3,094

Total

​

$

989

​

$

2,105

​

$

3,094

​

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)

​

 

326

Reduction in liability (payments and adjustments)

​

 

(471)

Liability balance as of September 30, 2022

​

$

668

​

The liability balance of $0.7 million is recorded as accrued liabilities on the Consolidated Balance Sheets as of September 30, 2022. We continue to incur restructuring charges or reversals related to exiting leased space from previous restructuring activities.