Segment Information

12 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

21. Segment Information

During the first quarter of fiscal year 2022, Adtalem made a change to its reportable segments to align with current strategic priorities and resource allocation.

Beginning in the second quarter of fiscal year 2022, Adtalem eliminated its Financial Services segment when ACAMS, Becker, OCL, and EduPristine, were classified as discontinued operations. See Note 4 “Discontinued Operations and Assets Held for Sale” for additional information. Segment information presented excludes the results of the former Financial Services segment. 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 ACAMS, Becker, OCL, and EduPristine within our former Financial Services segment during fiscal year 2021 and the first quarter of fiscal year 2022 were reclassified to Home Office and Other based on discontinued operations reporting guidance regarding allocation of corporate overhead. Beginning in the second quarter of fiscal year 2022, these costs are being allocated to the Chamberlain, Walden, and Medical and Veterinary segments.

We present three reportable segments as follows:

Chamberlain – Offers degree and non-degree programs in the nursing and health professions postsecondary education industry. This segment includes the operations of Chamberlain.

Walden – Offers more than 100 online certificate, bachelor’s, master’s, and doctoral degrees, including those in nursing, education, counseling, business, psychology, public health, social work and human services, public administration and public policy, and criminal justice. This segment includes the operations of Walden, which was acquired by Adtalem on August 12, 2021. See Note 3 “Acquisitions” for additional information on the acquisition.

Medical and Veterinary – Offers degree and non-degree programs in the medical and veterinary postsecondary education industry. This segment includes the operations of AUC, RUSM, and RUSVM, which are collectively referred to as the “medical and veterinary schools.”

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 on each segment’s operating income excluding special items. Operating income excludes special items, which consists of deferred revenue adjustment, CEO transition costs, restructuring expense, business acquisition and integration expense, Walden intangible asset amortization, and gain on sale of assets. Adtalem’s management excludes these items from its review of the results of the operating segments for purposes of measuring segment profitability and allocating resources. “Home Office and Other” includes activities 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 or at Home Office and Other. The accounting policies of the segments are the same as those described in Note 2 “Summary of Significant Accounting Policies.”

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

	Year Ended June 30,
	2022		2021		2020
Revenue:
Chamberlain	$	557,536	$	563,814	$	511,655
Walden		485,393		—		—
Medical and Veterinary		344,193		343,087		354,772
Total consolidated revenue	$	1,387,122	$	906,901	$	866,427
Operating income excluding special items:
Chamberlain	$	127,252	$	128,851	$	99,652
Walden		105,732		—		—
Medical and Veterinary		74,428		67,852		68,092
Home Office and Other		(36,092)		(40,189)		(38,773)
Total consolidated operating income excluding special items		271,320		156,514		128,971
Reconciliation to Consolidated Financial Statements:
Deferred revenue adjustment		(8,561)		—		—
CEO transition costs		(6,195)		—		—
Restructuring expense		(25,628)		(6,869)		(23,683)
Business acquisition and integration expense		(53,198)		(31,593)		—
Walden intangible amortization expense		(97,274)		—		—
Gain on sale of assets		—		—		4,779
Total consolidated operating income		80,464		118,052		110,067
Net other (expense) income		(125,528)		(34,633)		94,919
Total consolidated (loss) income from continuing operations before income taxes	$	(45,064)	$	83,419	$	204,986
Segment assets:
Chamberlain	$	293,461	$	484,110	$	483,563
Walden		1,685,918		—		—
Medical and Veterinary		708,265		773,168		748,388
Home Office and Other		341,531		1,247,653		444,243
Discontinued Operations		—		579,912		581,864
Total consolidated assets	$	3,029,175	$	3,084,843	$	2,258,058
Capital expenditures:
Chamberlain	$	15,235	$	28,631	$	19,920
Walden		5,393		—		—
Medical and Veterinary		3,277		4,121		5,414
Home Office and Other		7,149		7,129		14,271
Total consolidated capital expenditures	$	31,054	$	39,881	$	39,605
Depreciation expense:
Chamberlain	$	18,547	$	16,123	$	14,869
Walden		9,255		—		—
Medical and Veterinary		13,890		14,431		14,195
Home Office and Other		2,882		3,334		3,214
Total consolidated depreciation expense	$	44,574	$	33,888	$	32,278
Intangible asset amortization expense:
Walden	$	97,274	$	—	$	—
Total consolidated intangible asset amortization expense	$	97,274	$	—	$	—

Adtalem conducts its educational operations in the U.S., Barbados, St. Kitts, and St. Maarten. Revenue and long-lived assets by geographic area are as follows (in thousands):

	Year Ended June 30,
	2022		2021		2020
Revenue from unaffiliated customers:
Domestic operations	$	1,042,929	$	563,814	$	511,655
Barbados, St. Kitts, and St. Maarten		344,193		343,087		354,772
Total consolidated revenue	$	1,387,122	$	906,901	$	866,427
Long-lived assets:
Domestic operations	$	289,129	$	286,720	$	273,368
Barbados, St. Kitts, and St. Maarten		178,792		164,337		185,362
Total consolidated long-lived assets	$	467,921	$	451,057	$	458,730

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