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Segment Information
 6 Months Ended
Dec. 31, 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, litigation reserve, and loss on assets held for sale. 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

​

Six Months Ended

​

​

December 31, 

​

December 31, 

​

​

2023

​

2022

​

2023

​

2022

Revenue:

 

​

​

 

​

​

 

​

​

 

​

​

Chamberlain

​

$

153,553

​

$

141,396

​

$

296,149

​

$

276,801

Walden

​

​

146,808

​

​

131,940

​

​

288,416

​

​

262,841

Medical and Veterinary

​

​

92,881

​

​

89,498

​

​

177,522

​

​

177,461

Total consolidated revenue

​

$

393,242

​

$

362,834

​

$

762,087

​

$

717,103

Adjusted operating income:

​

 

​

​

 

​

​

 

​

​

​

​

Chamberlain

​

$

29,640

​

$

33,229

​

$

53,964

​

$

60,231

Walden

​

​

30,155

​

​

29,012

​

​

61,270

​

​

53,553

Medical and Veterinary

​

​

22,091

​

​

22,549

​

​

36,568

​

​

39,613

Home Office and Other

​

 

(6,317)

​

 

(6,885)

​

 

(12,924)

​

 

(8,725)

Total consolidated adjusted operating income

​

​

75,569

​

​

77,905

​

​

138,878

​

​

144,672

Reconciliation to Consolidated Financial Statements:

​

​

​

​

​

​

​

​

​

​

​

​

Restructuring expense

​

 

(68)

​

 

(1,363)

​

 

(744)

​

 

(16,428)

Business integration expense

​

​

(6,909)

​

 

(14,816)

​

​

(12,171)

​

 

(24,356)

Intangible amortization expense

​

​

(9,333)

​

 

(16,176)

​

​

(20,010)

​

 

(34,704)

Litigation reserve

​

​

—

​

 

—

​

​

(18,500)

​

 

—

Loss on assets held for sale

​

​

(647)

​

 

—

​

​

(647)

​

 

—

Total consolidated operating income

​

​

58,612

​

​

45,550

​

​

86,806

​

​

69,184

Interest expense

​

 

(16,693)

​

 

(15,589)

​

 

(32,350)

​

 

(33,349)

Other income (expense), net

​

 

3,563

​

 

(1,440)

​

 

5,777

​

 

(679)

Total consolidated income from continuing operations before income taxes

​

$

45,482

​

$

28,521

​

$

60,233

​

$

35,156

Capital expenditures:

​

 

​

​

​

​

​

 

​

​

​

​

Chamberlain

​

$

5,757

​

$

1,492

​

$

11,042

​

$

2,918

Walden

​

​

2,619

​

​

268

​

​

5,561

​

​

1,093

Medical and Veterinary

​

​

1,935

​

​

342

​

​

3,280

​

​

915

Home Office and Other

​

 

4,971

​

 

2,094

​

 

10,445

​

 

4,821

Total consolidated capital expenditures

​

$

15,282

​

$

4,196

​

$

30,328

​

$

9,747

Depreciation expense:

​

 

​

​

​

​

​

 

​

​

​

​

Chamberlain

​

$

5,162

​

$

4,099

​

$

9,478

​

$

8,580

Walden

​

​

2,305

​

​

2,269

​

​

4,467

​

​

4,864

Medical and Veterinary

​

​

3,110

​

​

3,031

​

​

6,054

​

​

6,136

Home Office and Other

​

 

359

​

 

1,257

​

 

715

​

 

1,881

Total consolidated depreciation expense

​

$

10,936

​

$

10,656

​

$

20,714

​

$

21,461

Intangible amortization expense:

​

 

​

​

​

​

​

 

​

​

​

​

Walden

​

$

9,333

​

$

16,176

​

$

20,010

​

$

34,704

Total consolidated intangible amortization expense

​

$

9,333

​

$

16,176

​

$

20,010

​

$

34,704

​

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

​

Six Months Ended

​

​

December 31, 

​

December 31, 

​

​

2023

​

2022

​

2023

​

2022

Revenue by geographic area:

 

​

​

 

​

​

​

​

​

​

​

​

Domestic operations

​

$

300,361

​

$

273,336

​

$

584,565

​

$

539,642

Barbados, St. Kitts, and St. Maarten

​

 

92,881

​

 

89,498

​

 

177,522

​

 

177,461

Total consolidated revenue

​

$

393,242

​

$

362,834

​

$

762,087

​

$

717,103

​

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