Restructuring Charges

9 Months Ended

Mar. 31, 2024

Restructuring and Related Activities [Abstract]

Restructuring Charges

5. Restructuring Charges

During the third quarter and first nine months of fiscal year 2024, Adtalem recorded restructuring charges primarily driven by prior real estate consolidations at Adtalem’s home office. We continue to incur restructuring charges or reversals related to exited leased space from previous restructuring activities. 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. 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 18 “Segment Information.” Restructuring charges by segment were as follows (in thousands):

	Three Months Ended March 31, 2024						Nine Months Ended March 31, 2024
	Real Estate and Other		Termination Benefits		Total		Real Estate and Other		Termination Benefits		Total
Walden	$	—	$	—	$	—	$	(776)	$	—	$	(776)
Medical and Veterinary		194		—		194		339		40		379
Home Office and Other		279		—		279		1,614		—		1,614
Total	$	473	$	—	$	473	$	1,177	$	40	$	1,217

	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

The following table summarizes the separation and restructuring plan activity for fiscal years 2023 and 2024, for which cash payments are required (in thousands):

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
Increase in liability (separation and other charges)		40
Reduction in liability (payments and adjustments)		(781)
Liability balance as of March 31, 2024	$	—

These liability balances are recorded as accrued liabilities on the Consolidated Balance Sheets.