NOTE 15: SEGMENT INFORMATION

Beginning in the second quarter of fiscal year 2018, DeVry University operations are classified as discontinued operations as discussed in “Note 2: Discontinued Operations and Assets Held for Sale.” Therefore, segment information presented excludes the results of DeVry University, which is 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 within the 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 four 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 Becker, ACAMS and EduPristine; “Technology and Business,” which includes the operations of Adtalem Brazil; and “U.S. Traditional Postsecondary,” which includes the operations of 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 reporting 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 4: Summary of Significant Accounting Policies.”

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

	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2017		2018		2017
Revenue:
Medical and Healthcare	$	220,067	$	208,153	$	614,649	$	609,331
Professional Education		31,505		29,810		101,906		91,906
Technology and Business		59,030		61,810		196,602		193,437
U.S. Traditional Postsecondary		32,123		33,537		93,291		102,967
Home Office and Other		(532)		(635)		(1,733)		(1,981)
Total Consolidated Revenue	$	342,193	$	332,675	$	1,004,715	$	995,660
Operating Income (Loss):
Medical and Healthcare	$	60,304	$	50,150	$	141,583	$	146,166
Professional Education		2,382		2,619		15,082		8,810
Technology and Business		(103)		5,358		15,749		16,864
U.S. Traditional Postsecondary		(251)		(3,067)		(11,544)		(11,369)
Home Office and Other (1)		(8,542)		(11,095)		(25,954)		(83,250)
Total Consolidated Operating Income	$	53,790	$	43,965	$	134,916	$	77,221
Segment Assets:
Medical and Healthcare	$	935,360	$	894,691	$	935,360	$	894,691
Professional Education		455,358		450,769		455,358		450,769
Technology and Business		625,752		609,624		625,752		609,624
U.S. Traditional Postsecondary		54,321		56,078		54,321		56,078
Home Office and Other		175,540		176,666		175,540		176,666
Discontinued Operations		40,974		129,981		40,974		129,981
Total Consolidated Assets	$	2,287,305	$	2,317,809	$	2,287,305	$	2,317,809
Additions to Long-Lived Assets:
Medical and Healthcare	$	10,740	$	3,574	$	25,076	$	10,418
Professional Education		12,918		66		14,139		363,724
Technology and Business		3,746		4,882		19,445		12,495
U.S. Traditional Postsecondary		1,099		336		2,220		2,102
Home Office and Other		4,506		1,922		8,811		4,464
Total Consolidated Additions to Long-Lived Assets	$	33,009	$	10,780	$	69,691	$	393,203
Reconciliation to Consolidated Financial Statements:
Capital Expenditures	$	20,059	$	10,780	$	52,653	$	29,551
Increase in Capital Assets from Acquisitions		287		-		303		4,913
Increase in Intangible Assets and Goodwill		12,663		-		16,735		358,739
Total Increase in Consolidated Long-Lived Assets	$	33,009	$	10,780	$	69,691	$	393,203
Depreciation Expense:
Medical and Healthcare	$	7,346	$	6,652	$	20,255	$	19,850
Professional Education		295		119		822		466
Technology and Business		2,488		2,881		7,591		6,991
U.S. Traditional Postsecondary		1,160		1,210		3,460		3,602
Home Office and Other		2,193		2,936		6,219		8,932
Total Consolidated Depreciation Expense	$	13,482	$	13,798	$	38,347	$	39,841
Intangible Asset Amortization Expense:
Professional Education	$	1,626	$	1,893	$	4,876	$	5,679
Technology and Business		748		899		2,457		2,808
Total Consolidated Amortization Expense	$	2,374	$	2,792	$	7,333	$	8,487

(1) Home Office and Other Operating Loss includes $52.2 million in charges in the nine months ended March 31, 2017 for regulatory settlements as described in "Note 3: Regulatory Settlements."

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 and nine-month periods ended March 31, 2018 and 2017. Revenue and long-lived assets by geographic area are as follows (in thousands):

	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2017		2018		2017
Revenue from Unaffiliated Customers:
Domestic Operations	$	189,187	$	186,225	$	546,474	$	538,590
International Operations:
Dominica, St. Kitts and St. Maarten		91,580		83,237		257,194		260,083
Brazil		59,030		61,810		196,602		193,437
Other		2,396		1,403		4,445		3,550
Total International		153,006		146,450		458,241		457,070
Total Consolidated Revenue	$	342,193	$	332,675	$	1,004,715	$	995,660
Long-Lived Assets:
Domestic Operations	$	169,224	$	245,683	$	169,224	$	245,683
International Operations:
Dominica, St. Kitts and St. Maarten		174,921		188,511		174,921		188,511
Brazil		107,573		117,412		107,573		117,412
Other		2,133		3,746		2,133		3,746
Total International		284,627		309,669		284,627		309,669
Total Consolidated Long-Lived Assets	$	453,851	$	555,352	$	453,851	$	555,352

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