RESTRUCTURING CHARGES

9 Months Ended

Mar. 31, 2016

Restructuring Activities And Related Charges Disclosure [Abstract]

NOTE 9: RESTRUCTURING CHARGES

During the third quarter and first nine months of fiscal year 2016, DeVry Group recorded pre-tax charges related to real estate consolidations of $1.0 million and $32.2 million, respectively. Also during the first nine months of fiscal year 2016, DeVry University implemented a reduction in force (“RIF”) which reduced DeVry University’s workforce by 303 total positions and resulted in pre-tax charges of $1.9 million and $7.7 million during the third quarter and first nine months of fiscal year 2016, respectively. These charges represented severance pay and benefits for these employees. These restructuring charges were charged to segment costs in first nine months of fiscal year 2016 as follows: $0.4 million to Medical and Healthcare, $0.3 million to International and Professional Education and $39.2 million to Business, Technology and Management.

During the third quarter and first nine months of fiscal year 2015, DeVry Group recorded pre-tax charges related to real estate consolidations of $5.9 million and $16.9 million, respectively. Also, during the first nine months of fiscal year 2015, DeVry University implemented a Voluntary Separation Plan (“VSP”) and a RIF. These actions reduced DeVry University’s workforce by 298 total positions and resulted in pre-tax charges of $1.1 million and $13.6 million during the third quarter and first nine months of fiscal year 2015, respectively. These charges represented severance pay and benefits for these employees. These restructuring charges were charged 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.

The following table summarizes the separation and restructuring plan activity for the fiscal years 2016 and 2015, for which cash payments are required (in millions):

Liability balance at June 30, 2014	$	15.4
Increase in liability (separation and other charges)		42.0
Reduction in liability (payments and adjustments)		(30.4)
Liability balance at June 30, 2015		27.0
Increase in liability (separation and other charges)		35.3
Reduction in liability (payments and adjustments)		(33.1)
Liability balance at March 31, 2016	$	29.2

Of this liability balance, $14.4 million is recorded as Accrued Expenses and $14.8 million is recorded as Deferred Rent and Other Liabilities in the Consolidated Balance Sheet at March 31, 2016. 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 eight years.