RESTRUCTURING CHARGES

9 Months Ended

Mar. 31, 2017

Restructuring and Related Activities [Abstract]

NOTE 11: RESTRUCTURING CHARGES

During the third quarter and first nine months of fiscal year 2017 and 2016, DeVry Group recorded restructuring charges related to real estate consolidations and reductions in force (“RIF”) at DeVry University, Carrington, the administrative support operations of the medical and veterinary schools and DeVry Group home office. DeVry Group home office is classified as “Home Office and Other” in “Note 15: Segment Information.” These RIF charges, which reduced the DeVry Group workforce by 207 and 303 total positions in the first nine months of fiscal years 2017 and 2016, respectively, represented severance pay and benefits for these employees. These pre-tax restructuring charges by segment were as follows (in thousands):

	Three Months Ended March 31, 2017						Nine Months Ended March 31, 2017
	Real		Termination				Real		Termination
	Estate		Benefits		Total		Estate		Benefits		Total
Medical and Healthcare	$	137	$	530	$	667	$	137	$	530	$	667
U.S. Traditional Postsecondary		2,347		3,345		5,692		9,835		3,345		13,180
Home Office and Other		(222)		1,634		1,412		1,706		2,315		4,021
Total	$	2,262	$	5,509	$	7,771	$	11,678	$	6,190	$	17,868

	Three Months Ended March 31, 2016						Nine Months Ended March 31, 2016
	Real		Termination				Real		Termination
	Estate		Benefits		Total		Estate		Benefits		Total
Professional Education	$	300	$	-	$	300	$	300	$	-	$	300
U.S. Traditional Postsecondary		729		1,844		2,573		31,901		7,669		39,570
Total	$	1,029	$	1,844	$	2,873	$	32,201	$	7,669	$	39,870

The following table summarizes the separation and restructuring plan activity for the fiscal years 2017 and 2016, for which cash payments are required (in thousands):

Liability balance at June 30, 2015	$	26,992
Increase in liability (separation and other charges)		67,495
Reduction in liability (payments and adjustments)		(46,264)
Liability balance at June 30, 2016		48,223
Increase in liability (separation and other charges)		14,889
Reduction in liability (payments and adjustments)		(23,074)
Liability balance at March 31, 2017	$	40,038

Of this liability balance, $17.7 million is recorded as Accrued Expenses and $22.3 million is recorded as Deferred Rent and Other Liabilities on the Consolidated Balance Sheet at March 31, 2017. 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 8 years.