SEGMENT INFORMATION

3 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 15: SEGMENT INFORMATION

During the fourth quarter of fiscal year 2019, Adtalem renamed two of its segments: Professional Education was renamed Financial Services, and Technology and Business was renamed Business and Law.

Beginning in the first quarter of fiscal year 2020, Adtalem Brazil 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 Adtalem Brazil. Adtalem eliminated its Business and Law reportable segment during the first quarter of fiscal year 2020 when Adtalem Brazil was classified as discontinued operations. 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 Adtalem Brazil within our former Business and Law segment have been reclassified to the Home Office and Other segment based on discontinued operations reporting guidance regarding allocation of corporate overhead.

Adtalem presents two reportable segments: “Medical and Healthcare,” which includes the operations of Chamberlain and the medical and veterinary schools (which include AUC, RUSM and RUSVM); and “Financial Services,” which includes the operations of ACAMS, Becker, OCL and EduPristine. “Home Office and Other” includes activity not allocated to a reportable segment.

These segments are consistent with the method by which the Chief Operating Decision Maker (Adtalem’s Chairman, 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. 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 reportable segment is as follows (in thousands):

	Three Months Ended
	September 30,
	2019		2018
Revenue:
Medical and Healthcare	$	207,487	$	202,100
Financial Services		47,126		35,646
Home Office and Other		—		(807)
Total Consolidated Revenue	$	254,613	$	236,939
Operating Income (Loss) from Continuing Operations:
Medical and Healthcare	$	28,500	$	1,656
Financial Services		2,128		4,750
Home Office and Other		(4,887)		(9,638)
Total Consolidated Operating Income (Loss) from Continuing Operations	$	25,741	$	(3,232)
Segment Assets:
Medical and Healthcare	$	1,006,655	$	872,108
Financial Services		582,820		452,054
Home Office and Other		261,205		401,643
Discontinued Operations		609,644		624,060
Total Consolidated Assets	$	2,460,324	$	2,349,865
Additions to Long-Lived Assets:
Medical and Healthcare	$	6,467	$	11,776
Financial Services		539		962
Home Office and Other		3,430		583
Total Consolidated Additions to Long-Lived Assets	$	10,436	$	13,321
Reconciliation to Consolidated Financial Statements:
Capital Expenditures	$	10,436	$	13,321
Total Consolidated Additions to Long-Lived Assets	$	10,436	$	13,321
Depreciation Expense:
Medical and Healthcare	$	7,231	$	6,260
Financial Services		294		367
Home Office and Other		868		1,100
Total Consolidated Depreciation Expense	$	8,393	$	7,727
Intangible Asset Amortization Expense:
Financial Services	$	2,534	$	1,605
Total Consolidated Intangible Asset Amortization Expense	$	2,534	$	1,605

Adtalem conducts its educational and financial services operations in the U.S., Barbados, St. Kitts, St. Maarten, India, Europe, China, Canada, and the Middle East. Other international revenue was less than 5% of total revenue for each of the three months ended September 30, 2019 and 2018. Revenue and long-lived assets by geographic area are as follows (in thousands):

	Three Months Ended
	September 30,
	2019		2018
Revenue from Unaffiliated Customers:
Domestic Operations	$	161,397	$	146,662
International Operations:
Barbados, Dominica, St. Kitts and St. Maarten		90,969		88,447
Other		2,247		1,830
Total International		93,216		90,277
Total Consolidated Revenue	$	254,613	$	236,939
Long-Lived Assets:
Domestic Operations	$	196,331	$	152,427
International Operations:
Barbados, Dominica, St. Kitts and St. Maarten		173,793		161,136
Other		1,785		2,012
Total International		175,578		163,148
Total Consolidated Long-Lived Assets	$	371,909	$	315,575

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