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SEGMENT INFORMATION
9 Months Ended
Mar. 31, 2015
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 noncontrolling 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. This change was made to reflect how management now evaluates segment operating results. 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 DeVry Group’s 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 and nine months ended March 31, 2015 and 2014. Home office information is included where it is needed to reconcile segment data to the consolidated financial statements (in thousands).
 
 
 
For the Three Months Ended
March 31,
 
For the Nine Months Ended
March 31,
 
 
 
2015
 
2014
 
2015
 
2014
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
Medical and Healthcare
 
$
225,427
 
$
204,610
 
$
645,424
 
$
570,913
 
International and Professional Education
 
 
61,112
 
 
50,782
 
 
175,539
 
 
155,933
 
Business, Technology and Management
 
 
203,832
 
 
241,896
 
 
617,810
 
 
714,118
 
Intersegment Revenue and Other
 
 
(541)
 
 
(1,171)
 
 
(2,019)
 
 
(2,666)
 
Total Consolidated Revenue
 
$
489,830
 
$
496,117
 
$
1,436,754
 
$
1,438,298
 
Operating Income:
 
 
 
 
 
 
 
 
 
 
 
 
 
Medical and Healthcare
 
$
43,302
 
$
44,703
 
$
117,807
 
$
103,687
 
International and Professional Education
 
 
4,629
 
 
6,330
 
 
19,859
 
 
22,401
 
Business, Technology and Management
 
 
1,146
 
 
22,517
 
 
(9,155)
 
 
21,403
 
Home Office and Other
 
 
373
 
 
(4,013)
 
 
(5,448)
 
 
(9,121)
 
Total Consolidated Operating Income
 
$
49,450
 
$
69,537
 
$
123,063
 
$
138,370
 
Interest Income (Expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Income
 
$
1,318
 
$
605
 
$
2,015
 
$
1,498
 
Interest Expense
 
 
(2,813)
 
 
(1,073)
 
 
(3,558)
 
 
(3,125)
 
Net Interest and Other Income (Expense)
 
 
(1,495)
 
 
(468)
 
 
(1,543)
 
 
(1,627)
 
Total Consolidated Income from Continuing
 
 
 
 
 
 
 
 
 
 
 
 
 
Operations Before Income Taxes
 
$
47,955
 
$
69,069
 
$
121,520
 
$
136,743
 
Segment Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Medical and Healthcare
 
$
1,126,681
 
$
1,110,784
 
$
1,126,681
 
$
1,110,784
 
International and Professional Education
 
 
398,399
 
 
296,915
 
 
398,399
 
 
296,915
 
Business, Technology and Management
 
 
443,234
 
 
495,711
 
 
443,234
 
 
495,711
 
Home Office and Other
 
 
180,363
 
 
145,455
 
 
180,363
 
 
145,455
 
Total Consolidated Assets
 
$
2,148,677
 
$
2,048,865
 
$
2,148,677
 
$
2,048,865
 
Additions to Long-lived Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Medical and Healthcare
 
$
14,366
 
$
8,559
 
$
44,642
 
$
27,487
 
International and Professional Education
 
 
122,926
 
 
2,705
 
 
145,137
 
 
34,246
 
Business, Technology and Management
 
 
965
 
 
2,497
 
 
4,154
 
 
10,351
 
Home Office and Other
 
 
4,196
 
 
422
 
 
7,419
 
 
3,522
 
Total Consolidated Additions to Long-lived Assets
 
$
142,453
 
$
14,183
 
$
201,352
 
$
75,606
 
Reconciliation to Consolidated Financial Statements
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital Expenditures
 
$
21,240
 
$
14,183
 
$
64,301
 
$
47,609
 
Increase in Capital Assets from Acquisitions
 
 
9,416
 
 
-
 
 
10,921
 
 
2,037
 
Increase in Intangible Assets and Goodwill
 
 
111,797
 
 
-
 
 
126,130
 
 
25,960
 
Total Increase in Consolidated Long-lived Assets
 
$
142,453
 
$
14,183
 
$
201,352
 
$
75,606
 
Depreciation Expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
Medical and Healthcare
 
$
6,437
 
$
5,786
 
$
19,468
 
$
18,407
 
International and Professional Education
 
 
1,579
 
 
1,389
 
 
4,532
 
 
2,503
 
Business, Technology and Management
 
 
9,290
 
 
11,072
 
 
28,171
 
 
32,983
 
Home Office and Other
 
 
3,459
 
 
2,575
 
 
9,955
 
 
7,648
 
Total Consolidated Depreciation
 
$
20,765
 
$
20,822
 
$
62,126
 
$
61,541
 
Intangible Asset Amortization Expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
Medical and Healthcare
 
$
162
 
$
901
 
$
485
 
$
2,745
 
International and Professional Education
 
 
1,080
 
 
693
 
 
2,050
 
 
2,110
 
Total Consolidated Amortization
 
$
1,242
 
$
1,594
 
$
2,535
 
$
4,855
 
 
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, Europe and the Pacific Rim, were less than 5% of total revenues for the three and nine months ended March 31, 2015 and 2014. Revenues and long-lived assets by geographic area are as follows:
 
 
 
For the Three Months Ended
March, 31
 
For the Nine Months Ended
March 31,
 
 
 
2015
 
2014
 
2015
 
2014
 
Revenue from Unaffiliated Customers:
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic Operations
 
$
365,677
 
$
379,919
 
$
1,067,034
 
$
1,098,306
 
International Operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
Dominica, St. Kitts and St. Maarten
 
 
85,144
 
 
85,798
 
 
257,590
 
 
247,694
 
Brazil
 
 
37,503
 
 
27,018
 
 
106,930
 
 
83,444
 
Other
 
 
1,506
 
 
3,382
 
 
5,200
 
 
8,854
 
Total International
 
 
124,153
 
 
116,198
 
 
369,720
 
 
339,992
 
Consolidated
 
$
489,830
 
$
496,117
 
$
1,436,754
 
$
1,438,298
 
Long-lived Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic Operations
 
$
360,253
 
$
382,143
 
$
360,253
 
$
382,143
 
International Operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
Dominica, St. Kitts and St. Maarten
 
 
182,975
 
 
168,171
 
 
182,975
 
 
168,171
 
Brazil
 
 
48,973
 
 
46,486
 
 
48,973
 
 
46,486
 
Other
 
 
2,148
 
 
2,007
 
 
2,148
 
 
2,007
 
Total International
 
 
234,096
 
 
216,664
 
 
234,096
 
 
216,664
 
Consolidated
 
$
594,349
 
$
598,807
 
$
594,349
 
$
598,807
 
 
No one customer accounted for more than 10% of DeVry Group's consolidated revenues.