SEGMENT INFORMATION

3 Months Ended

Sep. 30, 2014

SEGMENT INFORMATION

NOTE 14:  SEGMENT INFORMATION

DeVry Group’s principal business is providing postsecondary education. DeVry Group presents three reportable segments: “Business, Technology and Management”, which is comprised solely of DeVry University; “Medical and Healthcare” which includes the operations of AUC, RUSM, RUSVM, Chamberlain and Carrington; and “International and Professional Education”, which includes the operations of DeVry Brasil and Becker.

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, and certain home office-related depreciation and expenses. Income taxes, interest income and expense, and certain home office-related depreciation and expenses are reconciling items in arriving at income before income taxes for each segment. As of the first quarter of fiscal year 2015, amortization expense is included in the operating income of each segment and is no longer a reconciling item in arriving at income before income taxes for each segment. Prior year information has been restated to reflect this change. 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 home office assets. Additions to long-lived assets have been measured in this same manner. Reconciling items are included as home office 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, 2014.

 

Following is a tabulation of business segment information based on the segmentation for the three months ended September 30, 2014 and 2013. Home office information is included where it is needed to reconcile segment data to the consolidated financial statements (dollars in thousands).

	For the Three Months Ended September 30,
	2014		2013
Revenue:
Medical and Healthcare	$	206,012	$	175,856
International and Professional Education		53,203		43,721
Business, Technology and Management		203,641		232,309
Intersegment Revenue and Other		(812)		(973)
Total Consolidated Revenue	$	462,044	$	450,913
Operating Income:
Medical and Healthcare		37,643		24,575
International and Professional Education		4,738		372
Business, Technology and Management	$	(12,468)	$	(11,061)
Home Office and Other		(5,270)		(3,615)
Total Consolidated Operating Income	$	24,643	$	10,271
Interest Income (Expense):
Interest Income	$	397	$	583
Interest Expense		(393)		(1,000)
Net Interest and Other Income (Expense)		4		(417)
Total Consolidated Income from Continuing Operations Before Income Taxes	$	24,647	$	9,854
Segment Assets:
Medical and Healthcare	$	1,228,521	$	1,087,590
International and Professional Education		311,212		276,391
Business, Technology and Management		432,939		484,630
Home Office and Other		161,955		171,634
Assets of Divested Business		-		6,562
Total Consolidated Assets	$	2,134,627	$	2,026,807
Additions to Long-lived Assets:
Medical and Healthcare	$	15,773	$	14,296
International and Professional Education		2,744		29,857
Business, Technology and Management		1,218		3,950
Home Office and Other		1,417		2,075
Total Consolidated Additions to Long-lived Assets	$	21,152	$	50,178
Reconciliation to Consolidated Financial Statements
Capital Expenditures	$	21,152	$	22,180
Increase in Capital Assets from Acquisitions		-		2,037
Increase in Intangible Assets and Goodwill		-		25,961
Total Increase in Consolidated Long-lived Assets	$	21,152	$	50,178
Depreciation Expense:
Medical and Healthcare	$	6,401	$	6,147
International and Professional Education		1,470		548
Business, Technology and Management		9,422		10,835
Home Office and Other		3,155		2,450
Total Consolidated Depreciation	$	20,448	$	19,980
Intangible Asset Amortization Expense:
Medical and Healthcare	$	162	$	942
International and Professional Education		602		707
Total Consolidated Amortization	$	764	$	1,649

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 revenue, which is derived principally from Canada, Europe and the Pacific Rim, were less than 5% of total revenue for the three months ended September 30, 2014 and 2013. Revenue and long-lived assets by geographic area are as follows:

	For the Three Months Ended  September 30,
	2014		2013
Revenue from Unaffiliated Customers:
Domestic Operations	$	349,089	$	350,117
International Operations:
Dominica, St. Kitts and St. Maarten		82,111		75,507
Brazil		29,348		23,521
Other		1,496		1,768
Total International		112,955		100,796
Consolidated	$	462,044	$	450,913
Long-lived Assets:
Domestic Operations	$	378,029	$	402,817
International Operations:
Dominica, St. Kitts and St. Maarten		172,988		169,907
Brazil		44,741		43,771
Other		157		253
Total International		217,886		213,931
Long-lived Assets of Business Held for Sale		-		1,509
Consolidated	$	595,915	$	618,257

No one customer accounted for more than 10% of DeVry Group's consolidated revenue.