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Segment Information
 9 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Segment Information

20. Segment Information

We present three reportable segments as follows:

Chamberlain – Offers degree and non-degree programs in the nursing and health professions 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.”

Certain expenses previously allocated to ACAMS, Becker, OCL, and EduPristine within our former Financial Services segment during the first quarter of fiscal year 2022 have been 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.

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 adjusted operating income. Adjusted operating income excludes special items, which consists of deferred revenue adjustment, CEO transition costs, restructuring expense, business acquisition and integration expense, intangible asset amortization, and gain on sale of assets. 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. Total assets by segment is not presented as our CODM does not review or allocate resources based on segment assets. 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, 

​

​

2023

​

2022

​

2023

​

2022

Revenue:

 

​

​

 

​

​

 

​

​

 

​

​

Chamberlain

​

$

149,737

​

$

142,550

​

$

426,538

​

$

417,310

Walden

​

​

132,874

​

​

139,081

​

​

395,715

​

​

348,325

Medical and Veterinary

​

​

86,471

​

​

82,650

​

​

263,932

​

​

255,560

Total consolidated revenue

​

$

369,082

​

$

364,281

​

$

1,086,185

​

$

1,021,195

Adjusted operating income:

​

 

​

​

 

​

​

 

​

​

​

​

Chamberlain

​

$

39,589

​

$

38,910

​

$

99,820

​

$

85,556

Walden

​

​

24,628

​

​

25,843

​

​

78,181

​

​

68,796

Medical and Veterinary

​

​

16,893

​

​

18,140

​

​

56,506

​

​

50,157

Home Office and Other

​

 

(8,142)

​

 

(6,685)

​

 

(16,867)

​

 

(26,467)

Total consolidated adjusted operating income

​

​

72,968

​

​

76,208

​

​

217,640

​

​

178,042

Reconciliation to Consolidated Financial Statements:

​

​

​

​

​

​

​

​

​

​

​

​

Deferred revenue adjustment

​

​

—

​

​

—

​

​

—

​

​

(8,561)

CEO transition costs

​

​

—

​

​

—

​

​

—

​

​

(6,195)

Restructuring expense

​

 

(1,278)

​

 

(10,518)

​

 

(17,706)

​

 

(16,999)

Business acquisition and integration expense

​

​

(11,346)

​

 

(5,924)

​

​

(35,702)

​

 

(41,537)

Intangible amortization expense

​

​

(14,232)

​

 

(26,817)

​

​

(48,936)

​

 

(73,967)

Gain on sale of assets

​

​

13,317

​

 

—

​

​

13,317

​

 

—

Total consolidated operating income

​

​

59,429

​

​

32,949

​

​

128,613

​

​

30,783

Interest expense

​

 

(14,457)

​

 

(36,585)

​

 

(47,806)

​

 

(109,907)

Other income (expense), net

​

 

3,980

​

 

(327)

​

 

3,301

​

 

2,435

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

​

$

48,952

​

$

(3,963)

​

$

84,108

​

$

(76,689)

Capital expenditures:

​

 

​

​

​

​

​

 

​

​

​

​

Chamberlain

​

$

4,002

​

$

3,255

​

$

6,920

​

$

9,869

Walden

​

​

1,198

​

​

1,629

​

​

2,291

​

​

4,561

Medical and Veterinary

​

​

1,277

​

​

891

​

​

2,192

​

​

2,650

Home Office and Other

​

 

2,832

​

 

1,702

​

 

7,653

​

 

5,169

Total consolidated capital expenditures

​

$

9,309

​

$

7,477

​

$

19,056

​

$

22,249

Depreciation expense:

​

 

​

​

​

​

​

 

​

​

​

​

Chamberlain

​

$

4,405

​

$

4,738

​

$

12,985

​

$

14,048

Walden

​

​

2,439

​

​

2,573

​

​

7,303

​

​

6,801

Medical and Veterinary

​

​

3,231

​

​

3,397

​

​

9,367

​

​

10,497

Home Office and Other

​

 

82

​

 

633

​

 

1,963

​

 

2,125

Total consolidated depreciation expense

​

$

10,157

​

$

11,341

​

$

31,618

​

$

33,471

Intangible asset amortization expense:

​

 

​

​

​

​

​

 

​

​

​

​

Walden

​

$

14,232

​

$

26,817

​

$

48,936

​

$

73,967

Total consolidated intangible asset amortization expense

​

$

14,232

​

$

26,817

​

$

48,936

​

$

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, 

​

​

2023

​

2022

​

2023

​

2022

Revenue from unaffiliated customers:

 

​

​

 

​

​

 

​

​

​

​

​

Domestic operations

​

$

282,611

​

$

281,631

​

$

822,253

​

$

765,635

Barbados, St. Kitts, and St. Maarten

​

 

86,471

​

 

82,650

​

 

263,932

​

 

255,560

Total consolidated revenue

​

$

369,082

​

$

364,281

​

$

1,086,185

​

$

1,021,195

Long-lived assets:

​

 

​

​

 

​

​

 

​

​

​

​

Domestic operations

​

$

266,985

​

$

296,838

​

$

266,985

​

$

296,838

Barbados, St. Kitts, and St. Maarten

​

 

159,083

​

 

184,668

​

 

159,083

​

 

184,668

Total consolidated long-lived assets

​

$

426,068

​

$

481,506

​

$

426,068

​

$

481,506

​

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