RESTRUCTURING CHARGES

9 Months Ended

Mar. 31, 2015

NOTE 10: RESTRUCTURING CHARGES

For the three and nine months ending March 31, 2015, DeVry Group recorded pre-tax charges related to real estate consolidations of $5.9 million and $16.9 million, respectively. Also, DeVry University implemented a Voluntary Separation Plan (“VSP”) and a reduction in force (“RIF”) in the first nine months of fiscal year 2015. These actions reduced DeVry University’s workforce by 298 total positions and resulted in pre-tax charges for the three and nine months ending March 31, 2015 of $1.1 million and $13.6 million. Restructuring charges were allocated to segment costs in the first nine months of fiscal year 2015 as follows: $4.5 million to Medical and Healthcare and $26.0 million to Business Technology and Management.

During the first nine months of fiscal year 2014, DeVry Group implemented a 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 nine 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 nine 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 the DeVry Group home office, which is classified as “Home Office and Other” in “Note 14 - Segment Information” to the consolidated financial statements of this Form 10-Q.

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)		26.3
Reduction in liability (payments and adjustments)		(19.0)
Liability balance at March 31, 2015	$	28.6

Of this liability balance, $16.1million is recorded as Accrued Expenses and $12.5 million is recorded as Deferred Rent and Other liabilities in the Consolidated Balance Sheet at March 31, 2015. These liability balances 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 except for rent charges which may be paid out for periods of up to nine years.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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