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Restructuring Charges
9 Months Ended
Mar. 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring Charges

5. Restructuring Charges

During the third quarter and first nine months of fiscal year 2024, Adtalem recorded restructuring charges primarily driven by prior real estate consolidations at Adtalem’s home office. We continue to incur restructuring charges or reversals related to exited leased space from previous restructuring activities. During the third quarter and first nine months of fiscal year 2023, Adtalem recorded restructuring charges primarily driven by real estate consolidations at Walden, Medical and Veterinary, and Adtalem’s home office resulting in impairments on operating lease assets and property and equipment. When estimating costs of exiting lease space, estimates are made which could differ materially from actual results and may result in additional restructuring charges or reversals in future periods. Termination benefit charges represent severance pay and benefits for employees impacted by workforce reductions. Adtalem’s home office is classified as “Home Office and Other” in Note 18 “Segment Information.” Restructuring charges by segment were as follows (in thousands):

Three Months Ended March 31, 2024

Nine Months Ended March 31, 2024

Real Estate
and Other

Termination
Benefits

Total

Real Estate
and Other

Termination
Benefits

Total

Walden

 

$

 

$

 

$

$

(776)

 

$

 

$

(776)

Medical and Veterinary

 

194

 

 

194

339

 

40

 

379

Home Office and Other

 

279

 

 

279

1,614

 

 

1,614

Total

$

473

$

$

473

$

1,177

$

40

$

1,217

Three Months Ended March 31, 2023

Nine Months Ended March 31, 2023

Real Estate
and Other

Termination
Benefits

Total

Real Estate
and Other

Termination
Benefits

Total

Chamberlain

 

$

 

$

 

$

$

818

 

$

 

$

818

Walden

 

53

 

 

53

3,120

 

54

 

3,174

Medical and Veterinary

 

81

 

340

 

421

6,994

 

340

 

7,334

Home Office and Other

 

804

 

 

804

5,430

 

950

 

6,380

Total

$

938

$

340

$

1,278

$

16,362

$

1,344

$

17,706

The following table summarizes the separation and restructuring plan activity for fiscal years 2023 and 2024, for which cash payments are required (in thousands):

Liability balance as of June 30, 2022

$

813

Increase in liability (separation and other charges)

 

1,620

Reduction in liability (payments and adjustments)

 

(1,692)

Liability balance as of June 30, 2023

 

741

Increase in liability (separation and other charges)

 

40

Reduction in liability (payments and adjustments)

 

(781)

Liability balance as of March 31, 2024

$

These liability balances are recorded as accrued liabilities on the Consolidated Balance Sheets.