SEGMENT INFORMATION

6 Months Ended

Dec. 31, 2013

SEGMENT INFORMATION

NOTE 13:  SEGMENT INFORMATION

DeVry Group’s principal business is providing post-secondary education. Our operations are described in more detail in “Note  1- Nature of Operations” to the consolidated financial statements contained in its Annual Report on Form 10-K for the fiscal year ended June 30, 2013. DeVry Group presents three reportable segments: “Business, Technology and Management”, which includes DeVry University undergraduate and graduate operations; “Medical and Healthcare” which includes the operations of Ross University School of Medicine, Ross University School of Veterinary Medicine, American University of the Caribbean, Chamberlain College of Nursing and Carrington Colleges Group; and “International and Professional Education”, which includes the operations of DeVry Brasil and Becker Professional Education.

These segments are consistent with the method by which the Chief Operating Decision Maker (DeVry Group’s President and CEO) evaluates performance and allocates resources. Performance evaluations are based, in part, on each segment’s operating income, which is defined as income before non-controlling interest, income taxes, interest income and expense, amortization, and certain corporate-related depreciation and expenses. Income taxes, interest income and expense, amortization, and certain corporate-related depreciation and expenses are reconciling items in arriving at income before income taxes for each segment. Intersegment sales are accounted for at amounts comparable to sales to nonaffiliated customers and are eliminated in consolidation.  The consistent measure of segment assets excludes deferred income tax assets and certain depreciable corporate assets. Additions to long-lived assets have been measured in this same manner. Reconciling items are included as corporate assets. The accounting policies of the segments are the same as those described in “Note 3 — Summary of Significant Accounting Policies” to the consolidated financial statements contained in its Annual Report on Form 10-K for the fiscal year ended June 30, 2013.

Following is a tabulation of business segment information based on the segmentation for each of the three and six months ended December 31, 2013 and 2012. Corporate information is included where it is needed to reconcile segment data to the consolidated financial statements (dollars in thousands).

	For the Three Months Ended  December 31,				For the Six Months Ended  December 31,
Revenues:	2013		2012		2013		2012
Business, Technology and Management	$	239,913	$	280,239	$	472,222	$	564,853
Medical and Healthcare		190,447		167,746		366,303		326,103
International and Professional Education		61,430		52,681		105,151		89,630
Intersegment Revenues		(521)		-		(1,495)		-
Total Consolidated Revenues	$	491,269	$	500,666	$	942,181	$	980,586
Operating Income:
Business, Technology and Management	$	9,947	$	38,835	$	(1,114)	$	64,405
Medical and Healthcare		35,311		26,705		60,827		51,887
International and Professional Education		16,409		15,226		17,489		18,576
Reconciling Items:
Amortization Expense		(1,612)		(2,412)		(3,261)		(4,690)
Depreciation and Other		(1,493)		(11,159)		(5,108)		(13,535)
Total Consolidated Operating Income	$	58,562	$	67,195	$	68,833	$	116,643
Interest Income (Expense):
Interest Income	$	310	$	230	$	893	$	791
Interest Expense		(1,052)		(759)		(2,052)		(2,250)
Net Interest Income (Expense)		(742)		(529)		(1,159)		(1,459)
Total Consolidated Income from Continuing Operations Before Income Taxes	$	57,820	$	66,666	$	67,674	$	115,184
Segment Assets:
Business, Technology and Management	$	341,167	$	380,295	$	341,167	$	380,295
Medical and Healthcare		1,100,815		1,098,022		1,100,815		1,098,022
International and Professional Education		282,102		249,863		282,102		249,863
Corporate		165,029		151,827		165,029		151,827
Assets of Divested Business		-		34,777		-		34,777
Total Consolidated Assets	$	1,889,113	$	1,914,784	$	1,889,113	$	1,914,784
Additions to Long-lived Assets:
Business, Technology and Management	$	3,904	$	11,575	$	7,854	$	24,219
Medical and Healthcare		4,632		6,889		18,928		12,456
International and Professional Education		1,684		3,347		31,541		36,575
Corporate		1,025		1,629		3,100		6,557
Total Consolidated Additions to Long-lived Assets	$	11,245	$	23,440	$	61,423	$	79,807
Reconciliation to Consolidated Financial Statements
Capital Expenditures		11,245	$	21,592	$	33,426	$	47,214
Increase in Capital Assets from Acquisitions		-		-		2,037		2,897
Increase in Intangible Assets and Goodwill		-		1,848		25,960		29,696
Total Increase in Consolidated Long-lived Assets	$	11,245	$	23,440	$	61,423	$	79,807
Depreciation Expense:
Business, Technology and Management	$	11,076	$	11,052	$	21,911	$	21,892
Medical and Healthcare		6,474		6,350		12,621		12,090
International and Professional Education		566		1,275		1,114		2,379
Corporate		2,623		2,339		5,073		4,481
Total Consolidated Depreciation	$	20,739	$	21,016	$	40,719	$	40,842
Intangible Asset Amortization Expense:
Medical and Healthcare	$	902	$	1,347	$	1,844	$	2,695
International and Professional Education		710		1,065		1,417		1,995
Total Consolidated Amortization	$	1,612	$	2,412	$	3,261	$	4,690

DeVry Group conducts its educational operations in the United States, the Caribbean Islands (countries of Dominica, St. Kitts and St. Maarten), Brazil, Canada, Europe, the Middle East and the Pacific Rim. Other international revenues, which are derived principally from Canada and Europe, were less than 5% of total revenues for the three and six month periods ended December 31, 2013 and 2012. Revenues and long-lived assets by geographic area are as follows:

	For the Three Months Ended  December 31,				For the Six Months Ended  December 31,
	2013		2012		2013		2012
Revenue from Unaffiliated Customers:
Domestic Operations	$	368,271	$	391,406	$	718,388	$	781,545
International Operations:
Dominica, St. Kitts and St. Maarten		86,388		78,766		161,895		148,583
Brazil		32,905		25,584		56,426		42,900
Other		3,705		4,910		5,472		7,558
Total International		122,998		109,260		223,793		199,041
Consolidated	$	491,269	$	500,666	$	942,181	$	980,586
Long-lived Assets:
Domestic Operations	$	391,922	$	417,041	$	391,922	$	417,041
International Operations:
Dominica, St. Kitts and St. Maarten		168,249		137,146		168,249		137,146
Brazil		44,485		41,627		44,485		41,627
Other		235		1,584		235		1,584
Total International		212,968		180,357		212,968		180,357
Long-lived Assets of Business Held for Sale		-		6,239		-		6,239
Consolidated	$	604,891	$	603,637	$	604,891	$	603,637

No one customer accounted for more than 10% of DeVry Group’s consolidated revenues.