RESTRUCTURING CHARGES

3 Months Ended

Sep. 30, 2014

RESTRUCTURING CHARGES

NOTE 10:  RESTRUCTURING CHARGES

In the first quarter of fiscal year 2015, DeVry University implemented a Voluntary Separation Plan (“VSP”) and a reduction in force (“RIF”). These actions reduced DeVry University’s workforce by 114 total positions and resulted in pre-tax charges of $12.2 million that represented severance pay and benefits for these employees. DeVry Group also recorded pre-tax charges related to real estate consolidations of $1.1 million. These restructuring costs were allocated to the segments as follows: $0.7 million to Medical and Healthcare and $12.6 million to Business Technology and Management.

During the first quarter of fiscal year 2014, DeVry Group implemented a VSP that reduced its workforce by 66 positions across DeVry University and DeVry Group Home Office. This resulted in a pre-tax charge of $10.4 million in the quarter that represented severance pay and benefits for these employees. In addition, charges related to real estate consolidation of $1.3 million were recorded in the first quarter of fiscal year 2014. These restructuring costs were allocated to the segments as follows: $8.0 million to Business Technology and Management, $0.7 million to Medical and Healthcare, $3.0 million to DeVry Group Home Office which is classified as “Home Office and Other” in “Note 14 - Segment Information”.

During fiscal year 2014, DeVry Group implemented a VSP and a RIF that reduced its workforce by approximately 270 positions primarily at DeVry University and the DeVry Group home office. This resulted in a pre-tax charge of $14.0 million in fiscal year 2014 that represented severance pay and benefits for these employees. In addition, charges related to real estate consolidation of $18.7 million were recorded during fiscal year 2014. These restructuring costs were allocated to the following DeVry Group segments: $7.9 million to Medical and Healthcare; $0.2 million to International and Professional Education; $21.7 million to Business, Technology and Management; and $2.9 million to the DeVry Group home office, which is classified as “Home Office and Other” in “Note 14 - Segment Information”.

The following table summarizes the separation and restructuring plan activity for the fiscal years 2015 and 2014, for which cash payments are required (dollars in millions):

Liability balance at June 30, 2013	$	13.2
Increase in liability (separation and other charges)		30.0
Reduction in liability (payments and adjustments)		(21.9)
Liability balance at June 30, 2014		21.3
Increase in liability (separation and other charges)		13.1
Reduction in liability (payments and adjustments)		(6.3)
Liability balance at September 30, 2014	$	28.1

The remaining liability balances as of September 30, 2014 primarily represent rent accruals and 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.