NOTE 9: RESTRUCTURING CHARGES

During the first six months of fiscal year 2014, DeVry Group implemented a Voluntary Separation Plan (VSP) that reduced its workforce by 66 positions across DeVry University and the DeVry Group home office. This resulted in a pre-tax charge of $10.4 million in the six month period that represented severance pay and benefits for these employees. In addition, charges related to real estate consolidation of $6.0 million were recorded during the first six months of fiscal year 2014. These restructuring costs were allocated to the following DeVry Group segments: $8.0 million to Business Technology and Management, $5.5 million to Medical and Healthcare and $2.9 million to DeVry Group home office, which is classified as “Depreciation and Other” in “Note 13 - Segment Information”.

During fiscal year 2013, DeVry Group implemented an involuntary reduction in force (RIF), a Voluntary Separation Plan (VSP), and other staff reduction actions that reduced its workforce by approximately 475 positions across all reporting units. This resulted in a pre-tax charge of approximately $10.3 million in fiscal year 2013 that represented severance pay and benefits for those employees who separated from DeVry Group. Also during fiscal year 2013, DeVry Group made decisions to consolidate certain facilities at its Carrington and DeVry University educational institutions. This resulted in pre-tax charges of $6.3 million in fiscal year 2013. In addition, DeVry Group consolidated its administrative offices in the Chicagoland area. As a result, a DeVry Group-owned facility in Wood Dale, Illinois was closed in December 2012, and employees were re-located to other facilities in the area. The Wood Dale facility is held as available for sale. This resulted in a pre-tax charge of $7.9 million in fiscal year 2013 for a write-down of assets to fair market value and an expected loss on this asset sale. Other restructuring charges totaling $1.7 million were also expensed in fiscal year 2013.

The following table summarizes the separation and restructuring plan activity for the six months ended December 31, 2013 and 2012, for which cash payments are required (dollars in millions):

	Six months ended
	December 31,
	2013		2012
Liability balance at Beginning of Period	$	13.2	$	5.6
Increase in liability (separation and other charges)		15.3		0.7
Reduction in liability (payments and adjustments)		(10.6)		(5.8)
Liability balance at End of Period	$	17.9	$	0.5

The remaining liability balances as of December 31, 2013 primarily represent costs for employees that have either not yet separated from DeVry Group or their full severance has not yet been paid. All of these remaining costs are expected to be paid over the next 12 months.