SEGMENT INFORMATION

9 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 15: SEGMENT INFORMATION

DeVry Group’s principal business is providing postsecondary education. During the third quarter of fiscal year 2017, DeVry Group affected a change to reportable segments to align with current strategic priorities and resource allocation. DeVry Group presents four reportable segments: “Medical and Healthcare,” which includes the operations of Chamberlain and the medical and veterinary schools (which includes AUC, RUSM and RUSVM); “Professional Education,” which includes the operations of Becker; “Technology and Business,” which includes the operations of DeVry Brazil; and “U.S. Traditional Postsecondary,” which includes the operations of DeVry University and Carrington.

These segments are consistent with the method by which the Chief Operating Decision Maker (DeVry Group’s President and Chief Executive Officer) evaluates performance and allocates resources. Performance evaluations are based, in part, on each segment’s operating income. Intersegment sales are accounted for at amounts comparable to sales to nonaffiliated customers and are eliminated in consolidation. “Home Office and Other” includes activity not allocated to a reportable segment and is included to reconcile segment results to the Consolidated Financial Statements. The accounting policies of the segments are the same as those described in “Note 4: Summary of Significant Accounting Policies.”

Summary financial information by reporting segment is as follows (in thousands):

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2017		2016		2017		2016
Revenue:
Medical and Healthcare	$	208,153	$	210,215	$	609,331	$	590,616
Professional Education		29,810		23,683		91,906		71,417
Technology and Business		61,810		48,062		193,437		121,405
U.S. Traditional Postsecondary		152,951		193,008		465,666		590,643
Intersegment Elimination and Other		(635)		(747)		(2,009)		(2,245)
Total Consolidated Revenue	$	452,089	$	474,221	$	1,358,331	$	1,371,836
Operating Income (Loss):
Medical and Healthcare	$	50,150	$	57,450	$	146,166	$	140,920
Professional Education		2,619		5,905		8,810		15,638
Technology and Business		5,358		(1,583)		16,864		(1,447)
U.S. Traditional Postsecondary (1)		(5,724)		2,942		(21,411)		(132,827)
Home Office and Other (1)		(5,110)		(3,867)		(65,183)		(9,569)
Total Consolidated Operating Income	$	47,293	$	60,847	$	85,246	$	12,715
Segment Assets:
Medical and Healthcare	$	888,413	$	830,493	$	888,413	$	830,493
Professional Education		450,769		109,478		450,769		109,478
Technology and Business		609,624		504,640		609,624		504,640
U.S. Traditional Postsecondary		258,810		570,976		258,810		570,976
Home Office and Other (2)		110,193		81,472		110,193		81,472
Total Consolidated Assets	$	2,317,809	$	2,097,059	$	2,317,809	$	2,097,059
Additions to Long-Lived Assets:
Medical and Healthcare	$	3,574	$	2,798	$	10,418	$	16,571
Professional Education		66		220		363,724		815
Technology and Business		4,882		5,557		12,495		194,111
U.S. Traditional Postsecondary		1,679		2,945		5,080		14,182
Home Office and Other		1,922		2,080		4,464		9,667
Total Consolidated Additions to Long-Lived Assets	$	12,123	$	13,600	$	396,181	$	235,346
Reconciliation to Consolidated Financial Statements:
Capital Expenditures	$	12,123	$	9,956	$	32,529	$	51,004
Increase in Capital Assets from Acquisitions		-		-		4,913		13,487
Increase in Intangible Assets and Goodwill		-		3,644		358,739		170,855
Total Increase in Consolidated Long-Lived Assets	$	12,123	$	13,600	$	396,181	$	235,346
Depreciation Expense:
Medical and Healthcare	$	6,652	$	7,526	$	19,850	$	21,057
Professional Education		119		66		466		549
Technology and Business		2,881		1,272		6,991		3,535
U.S. Traditional Postsecondary		5,773		7,805		17,689		24,719
Home Office and Other		2,936		3,310		8,932		9,489
Total Consolidated Depreciation Expense	$	18,361	$	19,979	$	53,928	$	59,349
Intangible Asset Amortization Expense:
Professional Education	$	1,893	$	147	$	5,679	$	447
Technology and Business		899		1,200		2,808		3,325
U.S. Traditional Postsecondary		-		65		-		190
Total Consolidated Amortization Expense	$	2,792	$	1,412	$	8,487	$	3,962

(1) U.S. Traditional Postsecondary and Home Office and Other Operating Income includes $4.1 million and $52.2 million in charges, respectively, in the nine months ended March 31, 2017 for regulatory settlements as described in "Note 3: Regulatory Settlements."

(2) In addition to the change in reportable segments, Home Office and Other Segment Assets and Total Consolidated Assets in fiscal year 2016 have been revised to reflect the reclassification of deferred tax assets and liabilities related to adoption of ASU No. 2015-17 "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes."

DeVry Group conducts its educational operations in the U.S., Dominica, St. Kitts, St. Maarten, Brazil, Canada, Europe, the Middle East, India, China and the Pacific Rim. Other international revenue, which is derived principally from Europe and the Pacific Rim, was less than 5% of total revenue for each of the three-month and nine-month periods ended March 31, 2017 and 2016. Revenue and long-lived assets by geographic area are as follows (in thousands):

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2017		2016		2017		2016
Revenue from Unaffiliated Customers:
Domestic Operations	$	305,639	$	336,927	$	901,261	$	982,656
International Operations:
Dominica, St. Kitts and St. Maarten		83,237		88,263		260,083		262,963
Brazil		61,810		48,063		193,437		121,405
Other		1,403		968		3,550		4,812
Total International		146,450		137,294		457,070		389,180
Total Consolidated Revenue	$	452,089	$	474,221	$	1,358,331	$	1,371,836
Long-Lived Assets:
Domestic Operations	$	260,101	$	309,281	$	260,101	$	309,281
International Operations:
Dominica, St. Kitts and St. Maarten		188,511		183,146		188,511		183,146
Brazil		117,412		92,779		117,412		92,779
Other		3,746		27		3,746		27
Total International		309,669		275,952		309,669		275,952
Total Consolidated Long-Lived Assets	$	569,770	$	585,233	$	569,770	$	585,233

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