XML 45 R27.htm IDEA: XBRL DOCUMENT v3.21.2

Segment Information

3 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Information

20. 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. We present four reportable segments as follows:

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

Walden – Offers more than 100 online certificate, bachelor’s, master’s, and doctoral degrees. This segment includes the operations of Walden University (“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.”

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 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, and Walden intangible amortization. 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. 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):

​

​	​	​	​	​	​	​	​
​	​	Three Months Ended					​
​	​	September 30,					​
​	​	2021		​	2020		​
Revenue:		​	​		​	​
Chamberlain	​	$	135,639	​	$	133,764	​
Walden	​	​	68,617	​	​	—	​
Medical and Veterinary	​	​	84,814	​	​	85,062	​
Financial Services	​		59,257	​		49,415	​
Total consolidated revenue	​	$	348,327	​	$	268,241	​
Operating income excluding special items:	​		​	​	​	​	​
Chamberlain	​	$	20,855	​	$	30,169	​
Walden	​	​	11,012	​	​	—	​
Medical and Veterinary	​	​	15,665	​	​	22,841	​
Financial Services	​		13,449	​		8,687	​
Home Office and Other	​		(6,390)	​		(7,332)	​
Total consolidated operating income excluding special items	​	​	54,591	​	​	54,365	​
Reconciliation to Consolidated Financial Statements:	​	​	​	​	​	​	​
Deferred revenue adjustment	​	​	(6,207)	​	​	—	​
CEO transition costs	​	​	(6,195)	​	​	—	​
Restructuring expense	​		(3,916)	​		(4,223)	​
Business acquisition and integration expense	​	​	(26,553)	​		(13,436)	​
Walden intangible amortization expense	​	​	(16,451)	​		—	​
Total consolidated operating (loss) income	​	​	(4,731)	​	​	36,706	​
Net other expense	​		(46,515)	​		(2,170)	​
Total consolidated (loss) income from continuing operations before income taxes	​	$	(51,246)	​	$	34,536	​
Segment assets:	​		​	​	​	​	​
Chamberlain	​	$	229,061	​	$	212,177	​
Walden	​	​	1,703,019	​	​	—	​
Medical and Veterinary	​	​	730,096	​	​	764,205	​
Financial Services	​		592,029	​		579,634	​
Home Office and Other	​		513,985	​		773,881	​
Total consolidated assets	​	$	3,768,190	​	$	2,329,897	​
Capital expenditures:	​		​	​	​	​	​
Chamberlain	​	$	3,645	​	$	7,751	​
Walden	​	​	184	​	​	—	​
Medical and Veterinary	​	​	1,255	​	​	1,515	​
Financial Services	​		633	​		2,127	​
Home Office and Other	​		1,607	​		3,050	​
Total consolidated capital expenditures	​	$	7,324	​	$	14,443	​
Depreciation expense:	​		​	​	​	​	​
Chamberlain	​	$	4,584	​	$	3,840	​
Walden	​	​	1,712	​	​	—	​
Medical and Veterinary	​	​	3,455	​	​	3,533	​
Financial Services	​		1,019	​		729	​
Home Office and Other	​		780	​		873	​
Total consolidated depreciation expense	​	$	11,550	​	$	8,975	​
Intangible asset amortization expense:	​		​	​	​	​	​
Walden	​	$	16,451	​	$	—	​
Financial Services	​		2,486	​		2,518	​
Total consolidated intangible asset amortization expense	​	$	18,937	​	$	2,518	​

​

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):

​

​	​	​	​	​	​	​	​
​	​	Three Months Ended					​
​	​	September 30,					​
​	​	2021		​	2020		​
Revenue from unaffiliated customers:		​	​	​	​	​
Domestic operations	​	$	248,139	​	$	172,644	​
International operations:	​		​	​	​	​	​
Barbados, St. Kitts, and St. Maarten	​		84,814	​		85,062	​
Other	​		15,374	​		10,535	​
Total international	​		100,188	​		95,597	​
Total consolidated revenue	​	$	348,327	​	$	268,241	​
Long-lived assets:	​		​	​	​	​	​
Domestic operations	​	$	332,458	​	$	292,335	​
International operations:	​		​	​	​	​	​
Barbados, St. Kitts, and St. Maarten	​		157,972	​		183,343	​
Other	​		501	​		1,090	​
Total international	​		158,473	​		184,433	​
Total consolidated long-lived assets	​	$	490,931	​	$	476,768	​

​

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.

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

X

- References

No definition available.

+ Details

Name:	us-gaap_SegmentReportingAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Name:	us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration