XML 37 R27.htm IDEA: XBRL DOCUMENT v3.22.1
Segment Information
 9 Months Ended
Mar. 31, 2022
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.

Beginning in the second quarter of fiscal year 2022, Adtalem eliminated its Financial Services segment when ACAMS, Becker, OCL, and EduPristine, 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 the former Financial Services segment. 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 ACAMS, Becker, OCL, and EduPristine within our former Financial Services segment during fiscal year 2021 and the first quarter of fiscal year 2022 were reclassified to Home Office and Other based on discontinued operations reporting guidance regarding allocation of corporate overhead. Beginning in the second quarter of fiscal year 2022, these costs are being allocated to the Chamberlain, Walden, and Medical and Veterinary segments.

We present three 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, including those in nursing, education, counseling, business, psychology, public health, social work and human services, public administration and public policy, and criminal justice. This segment includes the operations of 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.”

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 asset 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 or at Home Office and Other. 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

​

Nine Months Ended

​

​

​

March 31, 

​

March 31, 

​

​

​

2022

​

2021

​

2022

​

2021

​

Revenue:

 

​

​

 

​

​

 

​

​

 

​

​

 

Chamberlain

​

$

142,550

​

$

146,313

​

$

417,310

​

$

422,054

​

Walden

​

​

139,081

​

​

—

​

​

348,325

​

​

—

​

Medical and Veterinary

​

​

83,992

​

​

83,900

​

​

260,256

​

​

261,381

​

Total consolidated revenue

​

$

365,623

​

$

230,213

​

$

1,025,891

​

$

683,435

​

Operating income excluding special items:

​

 

​

​

 

​

​

 

​

​

​

​

​

Chamberlain

​

$

38,910

​

$

36,107

​

$

85,556

​

$

98,758

​

Walden

​

​

26,188

​

​

—

​

​

69,601

​

​

—

​

Medical and Veterinary

​

​

19,482

​

​

14,977

​

​

54,853

​

​

56,626

​

Home Office and Other

​

 

(8,057)

​

 

(10,260)

​

 

(26,816)

​

 

(30,948)

​

Total consolidated operating income excluding special items

​

​

76,523

​

​

40,824

​

​

183,194

​

​

124,436

​

Reconciliation to consolidated financial statements:

​

​

​

​

​

​

​

​

​

​

​

​

​

Deferred revenue adjustment

​

​

—

​

​

—

​

​

(8,561)

​

​

—

​

CEO transition costs

​

​

—

​

​

—

​

​

(6,195)

​

​

—

​

Restructuring expense

​

 

(10,518)

​

 

(1,217)

​

 

(16,999)

​

 

(5,299)

​

Business acquisition and integration expense

​

​

(5,924)

​

 

(3,646)

​

​

(41,537)

​

 

(28,161)

​

Walden intangible amortization expense

​

​

(26,817)

​

 

—

​

​

(73,967)

​

 

—

​

Total consolidated operating income

​

​

33,264

​

​

35,961

​

​

35,935

​

​

90,976

​

Net other expense

​

 

(35,540)

​

 

(7,166)

​

 

(107,123)

​

 

(10,848)

​

Total consolidated (loss) income from continuing operations before income taxes

​

$

(2,276)

​

$

28,795

​

$

(71,188)

​

$

80,128

​

Segment assets:

​

 

​

​

​

​

​

 

​

​

​

​

​

Chamberlain

​

$

220,915

​

$

205,625

​

$

220,915

​

$

205,625

​

Walden

​

​

1,509,866

​

​

—

​

​

1,509,866

​

​

—

​

Medical and Veterinary

​

​

731,049

​

​

733,747

​

​

731,049

​

​

733,747

​

Home Office and Other

​

 

1,055,105

​

 

1,529,427

​

 

1,055,105

​

 

1,529,427

​

Discontinued Operations

​

 

1,525

​

 

592,986

​

 

1,525

​

 

592,986

​

Total consolidated assets

​

$

3,518,460

​

$

3,061,785

​

$

3,518,460

​

$

3,061,785

​

Capital expenditures:

​

 

​

​

​

​

​

 

​

​

​

​

​

Chamberlain

​

$

3,255

​

$

6,876

​

$

9,869

​

$

19,470

​

Walden

​

​

1,629

​

​

—

​

​

4,561

​

​

—

​

Medical and Veterinary

​

​

891

​

​

526

​

​

2,650

​

​

2,821

​

Home Office and Other

​

 

1,702

​

 

1,485

​

 

5,169

​

 

6,300

​

Total consolidated capital expenditures

​

$

7,477

​

$

8,887

​

$

22,249

​

$

28,591

​

Depreciation expense:

​

 

​

​

​

​

​

 

​

​

​

​

​

Chamberlain

​

$

4,738

​

$

4,091

​

$

14,048

​

$

11,998

​

Walden

​

​

2,573

​

​

—

​

​

6,801

​

​

—

​

Medical and Veterinary

​

​

3,397

​

​

3,646

​

​

10,497

​

​

10,802

​

Home Office and Other

​

 

633

​

 

866

​

 

2,125

​

 

2,525

​

Total consolidated depreciation expense

​

$

11,341

​

$

8,603

​

$

33,471

​

$

25,325

​

Intangible asset amortization expense:

​

 

​

​

​

​

​

 

​

​

​

​

​

Walden

​

$

26,817

​

$

—

​

$

73,967

​

$

—

​

Total consolidated intangible asset amortization expense

​

$

26,817

​

$

—

​

$

73,967

​

$

—

​

​

​

​

Adtalem conducts its educational operations in the U.S., Barbados, St. Kitts, and St. Maarten. Revenue and long-lived assets by geographic area are as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

Nine Months Ended

​

​

​

March 31, 

​

March 31, 

​

​

​

2022

​

2021

​

2022

​

2021

​

Revenue from unaffiliated customers:

 

​

​

 

​

​

 

​

​

​

​

​

 

Domestic operations

​

$

281,631

​

$

146,313

​

$

765,635

​

$

422,054

​

Barbados, St. Kitts, and St. Maarten

​

 

83,992

​

 

83,900

​

 

260,256

​

 

261,381

​

Total consolidated revenue

​

$

365,623

​

$

230,213

​

$

1,025,891

​

$

683,435

​

Long-lived assets:

​

 

​

​

 

​

​

 

​

​

​

​

​

Domestic operations

​

$

296,838

​

$

271,396

​

$

296,838

​

$

271,396

​

Barbados, St. Kitts, and St. Maarten

​

 

184,668

​

 

170,025

​

 

184,668

​

 

170,025

​

Total consolidated long-lived assets

​

$

481,506

​

$

441,421

​

$

481,506

​

$

441,421

​

​

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