Segment Information

12 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segment Information

22. Segment Information

We present three reportable segments as follows:

Chamberlain – Offers degree and certificate programs in the nursing and health professions postsecondary education industry. This segment includes the operations of Chamberlain.

Walden – Offers degree and certificate programs, 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 certificate 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 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, amortization of acquired intangible assets, litigation reserve, loss on assets held for sale, debt modification costs, 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” 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):

	Year Ended June 30,
	2024		2023		2022
Revenue:
Chamberlain	$	633,522	$	571,034	$	557,536
Walden		595,332		533,725		485,393
Medical and Veterinary		355,798		346,067		338,913
Total consolidated revenue	$	1,584,652	$	1,450,826	$	1,381,842
Adjusted operating income:
Chamberlain	$	137,800	$	135,503	$	127,252
Walden		130,547		110,364		104,582
Medical and Veterinary		71,507		67,336		69,148
Home Office		(31,076)		(25,633)		(33,380)
Total consolidated adjusted operating income		308,778		287,570		267,602
Reconciliation to Consolidated Financial Statements:
Deferred revenue adjustment		—		—		(8,561)
CEO transition costs		—		—		(6,195)
Restructuring expense		(1,870)		(18,817)		(25,628)
Business acquisition and integration expense		(34,215)		(42,661)		(53,198)
Amortization of acquired intangible assets:		(35,644)		(61,239)		(97,274)
Litigation reserve		(18,500)		(10,000)		—
Loss on assets held for sale		(647)		—		—
Debt modification costs		(848)		—		—
Gain on sale of assets		—		13,317		—
Total consolidated operating income		217,054		168,170		76,746
Interest expense		(63,659)		(63,100)		(129,348)
Other income, net		10,542		6,965		1,108
Total consolidated income (loss) from continuing operations before income taxes	$	163,937	$	112,035	$	(51,494)
Capital expenditures:
Chamberlain	$	26,293	$	13,934	$	15,235
Walden		5,889		1,084		5,393
Medical and Veterinary		5,708		3,358		3,277
Home Office		11,003		7,638		7,149
Total consolidated capital expenditures	$	48,893	$	26,014	$	31,054
Depreciation:
Chamberlain	$	18,752	$	17,175	$	18,547
Walden		7,389		9,419		9,255
Medical and Veterinary		11,983		12,438		13,890
Home Office		1,552		2,344		2,882
Total consolidated depreciation	$	39,676	$	41,376	$	44,574
Amortization of acquired intangible assets:
Walden	$	35,644	$	61,239	$	97,274
Total consolidated amortization of acquired intangible assets	$	35,644	$	61,239	$	97,274

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):

	Year Ended June 30,
	2024		2023		2022
Revenue by geographic area:
Domestic operations	$	1,228,854	$	1,104,759	$	1,042,929
Barbados, St. Kitts, and St. Maarten		355,798		346,067		338,913
Total consolidated revenue	$	1,584,652	$	1,450,826	$	1,381,842
Long-lived assets by geographic area:
Domestic operations	$	283,597	$	256,268	$	289,129
Barbados, St. Kitts, and St. Maarten		149,507		163,058		178,792
Total consolidated long-lived assets	$	433,104	$	419,326	$	467,921

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