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Segment Information

3 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Information

18. 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 online certificate programs and 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.

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 adjusted operating income. Adjusted operating income excludes special items, which consists of restructuring expense, business integration expense, intangible amortization expense, and litigation reserve. 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
​	​	September 30,
​	​	2023		​	2022
Revenue:		​	​		​	​
Chamberlain	​	$	142,596	​	$	135,405
Walden	​	​	141,608	​	​	130,901
Medical and Veterinary	​	​	84,641	​	​	87,963
Total consolidated revenue	​	$	368,845	​	$	354,269
Adjusted operating income:	​		​	​	​	​
Chamberlain	​	$	24,324	​	$	27,002
Walden	​	​	31,115	​	​	24,541
Medical and Veterinary	​	​	14,477	​	​	17,064
Home Office and Other	​		(6,607)	​		(1,840)
Total consolidated adjusted operating income	​	​	63,309	​	​	66,767
Reconciliation to Consolidated Financial Statements:	​	​	​	​	​	​
Restructuring expense	​		(676)	​		(15,065)
Business integration expense	​	​	(5,262)	​		(9,540)
Intangible amortization expense	​	​	(10,677)	​		(18,528)
Litigation reserve	​	​	(18,500)	​		—
Total consolidated operating income	​	​	28,194	​	​	23,634
Interest expense	​		(15,657)	​		(17,760)
Other income, net	​		2,214	​		761
Total consolidated income from continuing operations before income taxes	​	$	14,751	​	$	6,635
Capital expenditures:	​		​	​	​	​
Chamberlain	​	$	5,285	​	$	1,426
Walden	​	​	2,942	​	​	825
Medical and Veterinary	​	​	1,345	​	​	573
Home Office and Other	​		5,474	​		2,727
Total consolidated capital expenditures	​	$	15,046	​	$	5,551
Depreciation expense:	​		​	​	​	​
Chamberlain	​	$	4,316	​	$	4,481
Walden	​	​	2,162	​	​	2,595
Medical and Veterinary	​	​	2,944	​	​	3,105
Home Office and Other	​		356	​		624
Total consolidated depreciation expense	​	$	9,778	​	$	10,805
Intangible amortization expense:	​		​	​	​	​
Walden	​	$	10,677	​	$	18,528
Total consolidated intangible amortization expense	​	$	10,677	​	$	18,528

​

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

​

​	​	​	​	​	​	​
​	​	Three Months Ended
​	​	September 30,
​	​	2023		​	2022
Revenue by geographic area:	​	​	​	​	​	​
Domestic operations	​	$	284,204	​	$	266,306
Barbados, St. Kitts, and St. Maarten	​		84,641	​		87,963
Total consolidated revenue	​	$	368,845	​	$	354,269

​

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

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- References

No definition available.

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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.

+ References

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