NOTE 14: 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 and ACAMS; “Technology and Business,” which includes the operations of Adtalem Brazil; and “U.S. Traditional Postsecondary,” which includes the operations of DeVry University and Carrington. Prior period amounts have been reclassified to conform to the current reportable segment presentation.

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 3: Summary of Significant Accounting Policies.”

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

	Three Months Ended
	September 30,
	2017		2016
Revenue:
Medical and Healthcare	$	191,285	$	199,769
Professional Education		40,042		34,730
Technology and Business		62,439		58,240
U.S. Traditional Postsecondary		127,881		157,875
Home Office and Other		(622)		(722)
Total Consolidated Revenue	$	421,025	$	449,892
Operating Income (Loss):
Medical and Healthcare	$	26,232	$	43,863
Professional Education		10,507		6,057
Technology and Business		1,861		(1,976)
U.S. Traditional Postsecondary		(20,203)		(10,006)
Home Office and Other		(3,961)		(4,831)
Total Consolidated Operating Income	$	14,436	$	33,107
Segment Assets:
Medical and Healthcare	$	944,794	$	894,136
Professional Education		446,600		458,974
Technology and Business		637,302		574,860
U.S. Traditional Postsecondary		241,661		311,952
Home Office and Other		113,239		84,434
Total Consolidated Assets	$	2,383,596	$	2,324,356
Additions to Long-Lived Assets:
Medical and Healthcare	$	5,667	$	3,303
Professional Education		923		363,710
Technology and Business		3,341		4,785
U.S. Traditional Postsecondary		2,122		1,997
Home Office and Other		1,842		1,227
Total Consolidated Additions to Long-Lived Assets	$	13,895	$	375,022
Reconciliation to Consolidated Financial Statements:
Capital Expenditures	$	13,895	$	11,318
Increase in Capital Assets from Acquisitions		-		4,913
Increase in Intangible Assets and Goodwill		-		358,791
Total Increase in Consolidated Long-Lived Assets	$	13,895	$	375,022
Depreciation Expense:
Medical and Healthcare	$	6,577	$	6,478
Professional Education		238		167
Technology and Business		2,626		1,941
U.S. Traditional Postsecondary		5,358		5,954
Home Office and Other		2,173		2,936
Total Consolidated Depreciation Expense	$	16,972	$	17,476
Intangible Asset Amortization Expense:
Professional Education	$	1,625	$	1,902
Technology and Business		872		1,361
Total Consolidated Amortization Expense	$	2,497	$	3,263

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 three month periods ended September 30, 2017 and 2016. Revenue and long-lived assets by geographic area are as follows (in thousands):

	Three Months Ended
	September 30,
	2017		2016
Revenue from Unaffiliated Customers:
Domestic Operations	$	279,907	$	302,046
International Operations:
Dominica, St. Kitts and St. Maarten		77,378		88,304
Brazil		62,439		58,240
Other		1,301		1,302
Total International		141,118		147,846
Total Consolidated Revenue	$	421,025	$	449,892
Long-Lived Assets:
Domestic Operations	$	234,048	$	284,961
International Operations:
Dominica, St. Kitts and St. Maarten		183,919		189,235
Brazil		110,205		110,772
Other		3,950		3,416
Total International		298,074		303,423
Total Consolidated Long-Lived Assets	$	532,122	$	588,384

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