Restructuring Charges

12 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

Restructuring Charges

6. Restructuring Charges

During fiscal year 2022, Adtalem recorded restructuring charges primarily driven by workforce reductions and contract terminations related to synergy actions with regard to the Walden acquisition and Medical and Veterinary and Adtalem’s home office real estate consolidations. During fiscal year 2021, Adtalem recorded restructuring charges primarily driven by Adtalem’s home office real estate consolidations. During fiscal year 2020, Adtalem recorded restructuring charges primarily driven by Adtalem’s home office real estate consolidations and workforce reductions across the organization. When estimating costs of exiting lease space, estimates are made which could differ materially from actual results and result in additional restructuring charges or reversals in future periods. Termination benefit charges represented severance pay and benefits for these employees. Adtalem’s home office is classified as “Home Office and Other” in Note 21 “Segment Information.” Pre-tax restructuring charges by segment were as follows (in thousands):

	Year Ended June 30, 2022
	Real Estate and Other		Termination Benefits		Total
Chamberlain	$	835	$	2,003	$	2,838
Walden		—		4,053		4,053
Medical and Veterinary		7,675		2,116		9,791
Home Office and Other		5,977		2,969		8,946
Total	$	14,487	$	11,141	$	25,628

	Year Ended June 30, 2021
	Real Estate and Other		Termination Benefits		Total
Home Office and Other	$	6,379	$	490	$	6,869
Total	$	6,379	$	490	$	6,869

	Year Ended June 30, 2020
	Real Estate and Other		Termination Benefits		Total
Chamberlain	$	—	$	291	$	291
Medical and Veterinary		1,129		287		1,416
Home Office and Other		20,161		1,815		21,976
Total	$	21,290	$	2,393	$	23,683

The following table summarizes the separation and restructuring plan activity for fiscal years 2021 and 2022, for which cash payments are required (in thousands):

Liability balance as of June 30, 2020	$	1,435
Increase in liability (separation and other charges)		490
Reduction in liability (payments and adjustments)		(1,925)
Liability balance as of June 30, 2021		—
Increase in liability (separation and other charges)		11,851
Reduction in liability (payments and adjustments)		(11,038)
Liability balance as of June 30, 2022	$	813

The liability balance of $0.8 million is recorded as accrued liabilities on the Consolidated Balance Sheets as of June 30, 2022. We continue to incur restructuring charges or reversals related to exiting leased space from previous restructuring activities and we have begun implementing additional restructuring plans to achieve synergies after the Walden acquisition.