SEGMENT INFORMATION

3 Months Ended

Sep. 30, 2018

NOTE 14: SEGMENT INFORMATION

Beginning in the second quarter of fiscal year 2018, DeVry University operations were classified as discontinued operations. In addition, beginning in the fourth quarter of fiscal year 2018, Carrington operations were classified as discontinued operations. See “Note 2: Discontinued Operations and Assets Held for Sale” for further information. Segment information presented excludes the results of DeVry University and Carrington, which were previously classified within our former U.S. Traditional Postsecondary segment and are presented as discontinued operations in the Consolidated Financial Statements. Discontinued operations assets are included in the table below to reconcile to Total Consolidated Assets presented on the Consolidated Balance Sheets. In addition, certain expenses previously allocated to DeVry University and Carrington within our former U.S. Traditional Postsecondary segment have been reclassified to the Home Office and Other segment based on discontinued operating reporting guidance regarding allocation of corporate overhead.

Adtalem’s principal business is the provision of educational services. Adtalem presents three reporting segments: “Medical and Healthcare,” which includes the operations of Chamberlain and the medical and veterinary schools (which include AUC, RUSM and RUSVM); “Professional Education,” which includes the operations of ACAMS, Becker and EduPristine; and “Technology and Business,” which includes the operations of Adtalem Brazil.

These segments are consistent with the method by which the Chief Operating Decision Maker (Adtalem’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 reporting segment and is included to reconcile segment results to the Consolidated Financial Statements. Segments may have allocated depreciation expense related to depreciable assets reported as an asset in a different segment. The accounting policies of the segments are the same as those described in “Note 3: Summary of Significant Accounting Policies.”

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

	Three Months Ended September 30,
	2018			2017
Revenue:
Medical and Healthcare	$	202,100		$	191,285
Professional Education		35,646			40,042
Technology and Business		47,251			62,439
Home Office and Other		(807	)		(623	)
Total Consolidated Revenue	$	284,190		$	293,143
Operating Income (Loss) from Continuing Operations:
Medical and Healthcare	$	1,656		$	26,232
Professional Education		4,750			10,507
Technology and Business		(2,745	)		1,861
Home Office and Other		(6,169	)		(8,714	)
Total Consolidated Operating (Loss) Income from Continuing Operations	$	(2,508	)	$	29,886
Segment Assets:
Medical and Healthcare	$	872,108		$	951,208
Professional Education		452,054			446,600
Technology and Business		526,873			637,302
Home Office and Other		400,546			173,706
Discontinued Operations		98,284			175,695
Total Consolidated Assets	$	2,349,865		$	2,384,511
Additions to Long-Lived Assets:
Medical and Healthcare	$	11,776		$	5,667
Professional Education		962			923
Technology and Business		1,829			3,341
Home Office and Other		583			1,842
Total Consolidated Additions to Long-Lived Assets	$	15,150		$	11,773
Reconciliation to Consolidated Financial Statements:
Capital Expenditures	$	15,150		$	11,773
Total Increase in Consolidated Long-Lived Assets	$	15,150		$	11,773
Depreciation Expense (1):
Medical and Healthcare	$	6,260		$	7,586
Professional Education		367			460
Technology and Business		2,315			2,765
Home Office and Other		1,100			367
Total Consolidated Depreciation Expense	$	10,042		$	11,178
Intangible Asset Amortization Expense:
Professional Education	$	1,605		$	1,625
Technology and Business		505			872
Total Consolidated Amortization Expense	$	2,110		$	2,497

(1) Depreciation expense for each reporting segment has been modified to current presentation to include the Home Office and Other depreciation which is allocated to each reporting segment.

Adtalem conducts its educational operations in the U.S., Barbados, 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 months ended September 30, 2018 and 2017.

Revenue and long-lived assets by geographic area are as follows (in thousands):

	Three Months Ended September 30,
	2018		2017
Revenue from Unaffiliated Customers:
Domestic Operations	$	146,662	$	152,025
International Operations:
Dominica, St. Kitts and St. Maarten		88,447		77,378
Brazil		47,251		62,439
Other		1,830		1,301
Total International		137,528		141,118
Total Consolidated Revenue	$	284,190	$	293,143
Long-Lived Assets:
Domestic Operations	$	152,427	$	156,563
International Operations:
Barbados, Dominica, St. Kitts and St. Maarten		161,136		183,919
Brazil		89,494		110,205
Other		2,012		3,950
Total International		252,642		298,074
Total Consolidated Long-Lived Assets	$	405,069	$	454,637

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