NOTE 17: SEGMENT INFORMATION

Adtalem’s principal business is providing postsecondary education. During the third quarter of fiscal year 2017, Adtalem effected a change to reportable segments to align with current strategic priorities and resource allocation. As of the quarter ended March 31, 2017, Adtalem presents four reportable 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 Becker; “Technology and Business,” which includes the operations of Adtalem 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 (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 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 5: Summary of Significant Accounting Policies.”

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

	Year Ended June 30,
	2017		2016		2015
Revenue:
Medical and Healthcare	$	802,462	$	783,655	$	700,806
Professional Education		131,769		102,921		99,608
Technology and Business		276,341		196,097		159,231
U.S. Traditional Postsecondary		601,919		763,809		952,833
Intersegment Elimination and Other		(2,691)		(2,945)		(2,535)
Total Consolidated Revenue	$	1,809,800	$	1,843,537	$	1,909,943
Operating Income (Loss) from Continuing Operations:
Medical and Healthcare	$	187,138	$	178,484	$	155,377
Professional Education		19,866		28,043		22,036
Technology and Business		36,204		13,580		15,638
U.S. Traditional Postsecondary		(25,982)		(211,299)		(25,177)
Home Office and Other		(78,613)		(20,951)		(10,964)
Total Consolidated Operating Income (Loss) from Continuing Operations	$	138,613	$	(12,143)	$	156,910
Segment Assets:
Medical and Healthcare	$	900,048	$	827,951	$	941,995
Professional Education		451,261		91,741		116,959
Technology and Business		606,563		583,020		280,082
U.S. Traditional Postsecondary		235,116		326,058		623,093
Home Office and Other		121,047		268,226		77,703
Total Consolidated Assets	$	2,314,035	$	2,096,996	$	2,039,832
Additions to Long-Lived Assets:
Medical and Healthcare	$	15,774	$	25,645	$	53,704
Professional Education		364,275		1,120		1,399
Technology and Business		19,222		206,955		138,075
U.S. Traditional Postsecondary		6,486		17,941		11,269
Home Office and Other		6,477		10,806		9,704
Total Consolidated Additions to Long-Lived Assets	$	412,234	$	262,467	$	214,151
Reconciliation to Consolidated Financial Statements
Capital Expenditures	$	48,994	$	69,396	$	88,707
Increase in Capital Assets from Acquisitions		4,913		13,778		10,921
Increase in Intangible Assets and Goodwill		358,327		179,293		114,523
Total Increase in Consolidated Long-Lived Assets	$	412,234	$	262,467	$	214,151
Depreciation Expense:
Medical and Healthcare	$	26,460	$	28,616	$	21,943
Professional Education		658		721		1,792
Technology and Business		9,788		5,189		4,372
U.S. Traditional Postsecondary		23,446		32,079		42,628
Home Office and Other		11,836		12,795		14,273
Total Consolidated Depreciation Expense	$	72,188	$	79,400	$	85,008
Intangible Asset Amortization Expense:
Medical and Healthcare	$	-	$	-	$	387
Professional Education		7,482		563		912
Technology and Business		3,687		4,629		2,530
U.S. Traditional Postsecondary		-		255		260
Total Consolidated Amortization Expense	$	11,169	$	5,447	$	4,089

Adtalem 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 years ended June 30, 2017, 2016 and 2015. Revenue and long-lived assets by geographic area are as follows (in thousands):

	Year Ended June 30,
	2017		2016		2015
Revenue from Unaffiliated Customers:
Domestic Operations	$	1,187,756	$	1,294,487	$	1,401,301
International Operations:
Dominica, St. Kitts and St. Maarten		340,861		346,235		337,782
Brazil		276,341		196,097		159,231
Other		4,842		6,718		11,629
Total International		622,044		549,050		508,642
Total Consolidated Revenue	$	1,809,800	$	1,843,537	$	1,909,943
Long-Lived Assets:
Domestic Operations	$	245,253	$	294,641	$	356,183
International Operations:
Dominica, St. Kitts and St. Maarten		190,843		190,513		186,258
Brazil		104,497		106,878		54,517
Other		3,378		3,388		118
Total International		298,718		300,779		240,893
Total Consolidated Long-Lived Assets	$	543,971	$	595,420	$	597,076

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