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Segment Information

12 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Information

21. Segment Information

Beginning in the first quarter of fiscal year 2020, Adtalem Brazil operations 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 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.

We present two reportable segments as follows:

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

Financial Services – Offers test preparation, certifications, conferences, seminars, memberships, and subscriptions to business professionals in the areas of accounting, anti-money laundering, banking, and mortgage lending. This segment includes the operations of ACAMS, Becker, OCL, and EduPristine. On August 4, 2021, Adtalem announced we are exploring strategic alternatives for the Financial Services 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 on each segment’s operating income excluding special items. Operating income excludes special items, which consists of restructuring expense, business acquisition and integration expense, gain on sale of assets, and settlement gains. 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. Intersegment sales are accounted for at amounts comparable to sales to nonaffiliated customers and are eliminated in consolidation. “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. 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,
​	​	2021		​	2020		​	2019
Revenue:		​	​	​	​	​	​	​	​
Medical and Healthcare	​	$	906,901	​	$	866,428	​	$	849,861
Financial Services	​		205,479	​		185,573	​		167,211
Home Office and Other	​		—	​		—	​		(3,229)
Total consolidated revenue	​	$	1,112,380	​	$	1,052,001	​	$	1,013,843
Operating income excluding special items:	​	​	​	​	​	​	​	​	​
Medical and Healthcare	​	$	196,703	​	$	167,744	​	$	181,217
Financial Services	​		31,405	​		22,464	​		35,467
Home Office and Other	​		(25,228)	​		(24,099)	​		(33,965)
Total consolidated operating income excluding special items	​	​	202,880	​	​	166,109	​	​	182,719
Reconciliation to Consolidated Financial Statements:	​	​	​	​	​	​	​	​	​
Restructuring expense	​		(9,804)	​		(28,628)	​		(53,067)
Business acquisition and integration expense	​	​	(31,593)	​		—	​		—
Gain on sale of assets	​	​	—	​		4,779	​		—
Settlement gains	​	​	—	​	​	—	​	​	26,178
Total consolidated operating income	​	​	161,483	​	​	142,260	​	​	155,830
Net other (expense) income	​		(34,633)	​		94,919	​		(16,083)
Total consolidated income from continuing operations before income taxes	​	$	126,850	​	$	237,179	​	$	139,747
Segment assets:	​	​	​	​	​	​	​	​	​
Medical and Healthcare	​	$	1,257,278	​	$	1,231,951	​	$	814,728
Financial Services	​		577,958	​		580,272	​		582,327
Home Office and Other	​		1,218,600	​		416,464	​		263,242
Discontinued Operations	​		—	​		—	​		582,399
Total consolidated assets	​	$	3,053,836	​	$	2,228,687	​	$	2,242,696
Capital expenditures:	​	​	​	​	​	​	​	​	​
Medical and Healthcare	​	$	32,752	​	$	25,334	​	$	47,410
Financial Services	​		8,783	​		4,532	​		1,678
Home Office and Other	​		7,129	​		14,271	​		8,486
Total consolidated capital expenditures	​	$	48,664	​	$	44,137	​	$	57,574
Depreciation expense:	​	​	​	​	​	​	​	​	​
Medical and Healthcare	​	$	30,554	​	$	29,064	​	$	28,025
Financial Services	​		3,568	​		2,010	​		1,849
Home Office and Other	​		3,476	​		3,354	​		3,885
Total consolidated depreciation expense	​	$	37,598	​	$	34,428	​	$	33,759
Intangible asset amortization expense:	​	​	​	​	​	​	​	​	​
Financial Services	​	$	10,073	​	$	10,262	​	$	6,947
Total consolidated intangible asset amortization expense	​	$	10,073	​	$	10,262	​	$	6,947

​

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. Revenue and long-lived assets by geographic area are as follows (in thousands):

​

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended June 30,
​	​	2021		​	2020		​	2019
Revenue from unaffiliated customers:		​	​	​	​	​	​	​	​
Domestic operations	​	$	717,974	​	$	651,342	​	$	606,363
International operations:	​	​	​	​	​	​	​	​	​
Barbados, St. Kitts, and St. Maarten	​		343,087	​		354,773	​		362,427
Other	​		51,319	​		45,886	​		45,053
Total international	​		394,406	​		400,659	​		407,480
Total consolidated revenue	​	$	1,112,380	​	$	1,052,001	​	$	1,013,843
Long-lived assets:	​	​	​	​	​	​	​	​	​
Domestic operations	​	$	301,294	​	$	273,921	​	$	134,401
International operations:	​	​	​	​	​	​	​	​	​
Barbados, St. Kitts, and St. Maarten	​		164,337	​		185,362	​		147,193
Other	​		549	​		1,754	​		1,839
Total international	​		164,886	​		187,116	​		149,032
Total consolidated long-lived assets	​	$	466,180	​	$	461,037	​	$	283,433

​

Prior period amounts in the above table for long-lived assets have changed to conform with the current period presentation. We have changed our methodology to include only property and equipment, net and operating lease assets as long-lived assets for this disclosure. We believe these changes better reflects the usefulness of this disclosure. The adoption of ASC 842 as of July 1, 2019, which required operating lease assets to be recorded on the Consolidated Balance Sheet, resulted in the increase in long-lived assets from fiscal year 2019 to fiscal year 2020.

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

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- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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