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SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2012
SEGMENT REPORTING

14. SEGMENT REPORTING

The Company has six reporting segments. The reporting segments are described below.

CTU includes our Colorado Technical University schools. These schools collectively offer academic programs in the career-oriented disciplines of business studies, information systems and technologies, criminal justice, computer science and engineering, and health sciences in an online, classroom or laboratory setting.

AIU includes our American InterContinental University schools. These schools collectively offer academic programs in the career-oriented disciplines of business studies, accounting, information technologies, criminal justice, fashion marketing and design, media production, interior design, visual communication and education in an online, classroom or laboratory setting.

Health Education includes our Sanford-Brown schools, along with Brown College, Briarcliffe College and Missouri College. These schools collectively offer academic programs in the career-oriented disciplines of health education, complemented by certain programs in business studies and information technology, in a classroom, laboratory or online setting.

Culinary Arts includes our LCB schools that collectively offer culinary arts programs in the career-oriented disciplines of culinary arts, baking and pastry arts, and hotel and restaurant management in a classroom, kitchen or online setting.

Art & Design includes IADT, Harrington College of Design, Collins College and Brooks Institute schools. These schools offer academic programs primarily in the career-oriented disciplines of graphic design, web design and development, Internet marketing, information technology, retail merchandising and management, fashion design, game design, interior design, film and video production, photography and visual communications in a classroom, laboratory or online setting, as well as job training in the field of energy conservation.

International includes our INSEEC schools and IUM school located in France, the United Kingdom and Monaco, which collectively offer academic programs in the career-oriented disciplines of business studies, health education, advertising, communications and technologies and luxury goods and services in a classroom or laboratory setting.

We evaluate segment performance based on operating income. Adjustments to reconcile segment results to consolidated results are included under the caption “Corporate and Other,” which primarily includes unallocated corporate activity and eliminations.

 

Summary financial information by reporting segment is as follows:

 

     Revenue     Operating Income (Loss)  
      For the Quarters
Ended June 30,		     For the Quarters
Ended June 30,		  
     2012      2011     2012     2011  
     (Dollars in thousands)  

CTU

    $ 94,859       $ 112,061      $ 11,515      $ 33,973   

AIU

      78,841         98,031        6,878        26,337   

Health Education (1)

      75,751         109,825        (67,253 )      3,381   

Culinary Arts

      58,301         83,259        (4,441 )      13,174   

Art & Design (2)

      40,054         56,676        (46,971 )      7,675   

International

      21,140         25,151        (2,406 )      2,038   

Corporate and Other

      20         (125 )      (5,419 )      (7,267 ) 
  

 

 

     

 

 

    

 

 

    

 

 

  

Total

    $ 368,966       $ 484,878      $ (108,097 )    $ 79,311   
  

 

 

     

 

 

    

 

 

    

 

 

  
     Revenue     Operating Income (Loss)  
     For the Years to Date
Ended June 30,		     For the Years to Date
Ended June 30,		  
     2012      2011     2012     2011  
     (Dollars in thousands)  

CTU

    $ 194,774       $ 230,126      $ 30,560      $ 70,261   

AIU

      167,781         202,305        21,539        53,954   

Health Education

      166,976         226,134        (79,097 )      15,011   

Culinary Arts

      121,847         175,032        (4,449 )      26,941   

Art & Design

      87,722         121,276        (47,860 )      18,070   

International

      63,969         61,966        10,719        11,793   

Corporate and Other (3)

      34         (261 )      7,122        (7,844 ) 
  

 

 

     

 

 

    

 

 

    

 

 

  

Total

    $ 803,103       $ 1,016,578      $ (61,466 )    $ 188,186   
  

 

 

     

 

 

    

 

 

    

 

 

  

 

     Total Assets as of (4)  
     June 30,
2012		      December 31,
2011		  
     (Dollars in thousands)  

CTU

    $ 73,206       $ 74,648   

AIU

      66,871         73,090   

Health Education

      88,507         149,444   

Culinary Arts

      204,647         215,318   

Art & Design

      40,891         88,869   

International

      253,557         277,140   

Corporate and Other

      391,148         417,182   

Discontinued Operations

      20,263         20,429   
  

 

 

     

 

 

  

Total

    $ 1,139,090       $ 1,316,120   
  

 

 

     

 

 

  

 

(1) Second quarter of 2012 included a $41.9 million goodwill impairment charge, $1.1 million in asset impairment charges recorded as a result of the decision made in the second quarter of 2012 to teach out several schools and a $1.0 million trade name impairment charge. Second quarter of 2011 included a $2.0 million charge related to the impairment of accreditation rights intangible assets.
(2) Second quarter of 2012 included a $41.5 million goodwill impairment charge.
(3) Year to date June 2012 operating income includes a $19.0 million insurance recovery related to the settlement of claims under certain insurance policies. Year to date June 30, 2011 operating loss includes a $7.0 million insurance recovery related to previously settled legal matters and a $1.4 million gain on the sale of real estate.
(4) Total assets do not include the following intercompany activity: receivable or payable activity between schools and corporate and investments in subsidiaries.