Restructuring Expense

3 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring Expense

5. Restructuring Expense

During the three months ended September 30, 2024, Adtalem recorded restructuring expense primarily driven by workforce reductions, costs to exit certain course offerings, and 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 actions. During the three months ended September 30, 2023, Adtalem recorded restructuring expense primarily driven by prior real estate consolidations at Adtalem’s home office. 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. Restructuring expense by segment were as follows (in thousands):

	Three Months Ended September 30, 2024
	Real Estate and Other		Termination Benefits		Total
Chamberlain	$	897	$	961	$	1,858
Medical and Veterinary		59		—		59
Home Office		177		—		177
Total	$	1,133	$	961	$	2,094

	Three Months Ended September 30, 2023
	Real Estate and Other		Termination Benefits		Total
Medical and Veterinary	$	74	$	40	$	114
Home Office		562		—		562
Total	$	636	$	40	$	676

The following table summarizes the separation and restructuring plan activity for fiscal years 2024 and 2025, for which cash payments are required (in thousands):

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 June 30, 2024		—
Increase in liability (separation and other charges)		961
Reduction in liability (payments and adjustments)		—
Liability balance as of September 30, 2024	$	961

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