Adtalem Global Education Inc
For the period ended Dec 31, 2023. Filed Jan 30, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2023 · Filed Jan 30, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Restructuring Charges
- Restructuring Charges
During the second quarter and first six 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 second quarter and first six 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 December 31, 2023 · · Six Months Ended December 31, 2023 | ||||||||||||||||
| · · Real Estateand Other · · TerminationBenefits · · Total · · Real Estateand Other · · TerminationBenefits · · Total | ||||||||||||||||
| Walden | $(776) | $— | $(776) | | $(776) | $— | $(776) | |||||||||
| Medical and Veterinary | | 71 | | — | | 71 | | | 145 | | 40 | | 185 | |||
| Home Office and Other | | 773 | | — | | 773 | | | 1,335 | | — | | 1,335 | |||
| Total | | $68 | | $— | | $68 | | $704 | | $40 | | $744 | ||||
| · · · · · · · · · · · · · · · · · · | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| · · Three Months Ended December 31, 2022 · · Six Months Ended December 31, 2022 | ||||||||||||||||
| · · Real Estateand Other · · TerminationBenefits · · Total · · Real Estateand Other · · TerminationBenefits · · Total | ||||||||||||||||
| Chamberlain | $— | $— | $— | | $818 | $— | $818 | |||||||||
| Walden | | 41 | | — | | 41 | | | 3,067 | | 54 | | 3,121 | |||
| Medical and Veterinary | | 87 | | — | | 87 | | | 6,913 | | — | | 6,913 | |||
| Home Office and Other | | 557 | | 678 | | 1,235 | | | 4,626 | | 950 | | 5,576 | |||
| Total | | $685 | | $678 | | $1,363 | | $15,424 | | $1,004 | | $16,428 | ||||
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) | | (666) |
| Liability balance as of December 31, 2023 | | $115 |
These liability balances are recorded as accrued liabilities on the Consolidated Balance Sheets as of June 30, 2023 and December 31, 2023.
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