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SEGMENT REPORTING | 12 Months Ended
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Dec. 31, 2012
SEGMENT REPORTING | 19. SEGMENT REPORTING Our segments were determined in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 280—Segment Reporting and were based upon how the Company analyzes performance and makes decisions. Each segment represents a group of postsecondary education providers that offer a variety of degree and non-degree academic programs. These segments are organized by key market segments to enhance brand focus and operational alignment within each segment to more effectively execute our strategic growth plan. In the fourth quarter of 2012, we reorganized our business across seven reporting segments: CTU, AIU (comprises University Schools); Health Education, Culinary Arts, Design & Technology (comprises Career Schools); International; and Transitional Schools. This reorganization was a result of the decision made in the fourth quarter of 2012 to teach out a number of campuses, which are now included in our Transitional Schools reporting segment, along with campuses previously announced as being taught out. These campuses employ a gradual teach-out process, enabling them to continue to operate while current students complete their course of study; they no longer enroll new students. The results of operations for schools within the Transitional Schools segment will be reported within continuing operations for all periods presented until they complete their teach-out. As schools within Transitional Schools cease operations, the results of operation for all periods presented will be reflected within discontinued operations. In addition, during the fourth quarter of 2012, we completed the teach-out of Le Cordon Bleu Pittsburgh. Accordingly, the results of operations for this school are now reported within discontinued operations. All prior period results have been recast to reflect our reporting segments on a comparable basis. The seven reporting segments are described below. The reporting segments are described below. University Schools: Colorado Technical University (CTU) 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. American InterContinental University (AIU) schools collectively offer academic programs in the career-oriented disciplines of business studies, information technologies, criminal justice and design technologies in an online, classroom or laboratory setting. Career Schools: 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 Le Cordon Bleu schools in North America that collectively offer hands-on programs in the career-oriented disciplines of culinary arts and patisserie and baking in the commercial kitchens of Le Cordon Bleu; and advanced degree programs in culinary arts and hotel and restaurant management online. Design & Technology includes IADT, Harrington College of Design and Brooks Institute schools. These schools collectively offer academic programs primarily in the career-oriented disciplines of fashion design, game design, graphic design, interior design, film and video production, photography and visual communications in a classroom, laboratory or online setting as well as jobs training in the field of energy conservation. International includes our INSEEC schools and IUM school which are located in France, the United Kingdom and Monaco. These schools 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. Transitional Schools includes our campuses that are currently being taught out. See the “Campus Locations” table below for a listing of schools that comprise this segment. We evaluate segment performance based on operating results. 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 (Loss) Income |  |  | Depreciation and Amortization |  |  | Capital Expenditures |  |  | Total Assets (14) |
|  | (In thousands) |
For the Year Ended December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CTU (7) |  | $ | 363,935 |  |  | $ | 54,928 |  |  | $ | 3,476 |  |  | $ | 1,408 |  |  | $ | 72,554 |
AIU |  |  | 304,208 |  |  |  | 20,896 |  |  |  | 4,249 |  |  |  | 1,746 |  |  |  | 65,092 |
Total University Schools |  |  | 668,143 |  |  |  | 75,824 |  |  |  | 7,725 |  |  |  | 3,154 |  |  |  | 137,646 |
Health Education (2) |  |  | 181,577 |  |  |  | (78,288 | ) |  |  | 9,696 |  |  |  | 3,959 |  |  |  | 52,511 |
Culinary Arts (3) |  |  | 224,842 |  |  |  | (33,854 | ) |  |  | 17,670 |  |  |  | 2,535 |  |  |  | 173,477 |
Design & Technology (4) (10) |  |  | 141,542 |  |  |  | (57,627 | ) |  |  | 6,438 |  |  |  | 2,288 |  |  |  | 30,720 |
Total Career Schools |  |  | 547,961 |  |  |  | (169,769 | ) |  |  | 33,804 |  |  |  | 8,782 |  |  |  | 256,708 |
International |  |  | 128,568 |  |  |  | 21,131 |  |  |  | 4,844 |  |  |  | 6,474 |  |  |  | 280,636 |
Corporate and Other (5) |  |  | 55 |  |  |  | (7,618 | ) |  |  | 22,640 |  |  |  | 16,481 |  |  |  | 385,611 |
Subtotal |  |  | 1,344,727 |  |  |  | (80,432 | ) |  |  | 69,013 |  |  |  | 34,891 |  |  |  | 1,060,601 |
Transitional Schools (6) |  |  | 144,542 |  |  |  | (103,318 | ) |  |  | 11,645 |  |  |  | 3,053 |  |  |  | 39,539 |
Discontinued Operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |  |  |  | 22,563 |
Total |  | $ | 1,489,269 |  |  | $ | (183,750 | ) |  | $ | 80,658 |  |  | $ | 37,944 |  |  | $ | 1,122,703 |
For the Year Ended December 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CTU (7) |  | $ | 415,411 |  |  | $ | 111,119 |  |  | $ | 3,425 |  |  | $ | 4,553 |  |  | $ | 71,940 |
AIU |  |  | 365,203 |  |  |  | 72,738 |  |  |  | 4,830 |  |  |  | 3,208 |  |  |  | 73,090 |
Total University Schools |  |  | 780,614 |  |  |  | 183,857 |  |  |  | 8,255 |  |  |  | 7,761 |  |  |  | 145,030 |
Health Education (8) |  |  | 252,330 |  |  |  | (47,562 | ) |  |  | 11,818 |  |  |  | 17,732 |  |  |  | 94,977 |
Culinary Arts (9) |  |  | 303,135 |  |  |  | (63,452 | ) |  |  | 19,357 |  |  |  | 3,646 |  |  |  | 206,535 |
Design & Technology (10) |  |  | 186,879 |  |  |  | 14,223 |  |  |  | 7,486 |  |  |  | 3,557 |  |  |  | 76,297 |
Total Career Schools |  |  | 742,344 |  |  |  | (96,791 | ) |  |  | 38,661 |  |  |  | 24,935 |  |  |  | 377,809 |
International |  |  | 125,887 |  |  |  | 24,746 |  |  |  | 4,716 |  |  |  | 3,727 |  |  |  | 277,140 |
Corporate and Other (11) |  |  | (399 | ) |  |  | (30,132 | ) |  |  | 19,736 |  |  |  | 28,643 |  |  |  | 417,122 |
Subtotal |  |  | 1,648,446 |  |  |  | 81,680 |  |  |  | 71,368 |  |  |  | 65,066 |  |  |  | 1,217,101 |
Transitional Schools (12) |  |  | 224,923 |  |  |  | (40,986 | ) |  |  | 10,982 |  |  |  | 12,764 |  |  |  | 69,909 |
Discontinued Operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 503 |  |  |  | 29,110 |
Total |  | $ | 1,873,369 |  |  | $ | 40,694 |  |  | $ | 82,350 |  |  | $ | 78,333 |  |  | $ | 1,316,120 |
For the Year Ended December 31, 2010 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CTU |  | $ | 447,712 |  |  | $ | 131,813 |  |  | $ | 3,961 |  |  | $ | 1,475 |  |  |  |  |
AIU |  |  | 448,581 |  |  |  | 118,959 |  |  |  | 4,216 |  |  |  | 9,616 |  |  |  |  |
Total University Schools |  |  | 896,293 |  |  |  | 250,772 |  |  |  | 8,177 |  |  |  | 11,091 |  |  |  |  |
Health Education |  |  | 276,640 |  |  |  | 45,419 |  |  |  | 8,011 |  |  |  | 9,848 |  |  |  |  |
Culinary Arts (13) |  |  | 368,264 |  |  |  | (65,365 | ) |  |  | 17,386 |  |  |  | 23,364 |  |  |  |  |
Design & Technology |  |  | 205,876 |  |  |  | 25,658 |  |  |  | 7,858 |  |  |  | 5,757 |  |  |  |  |
Total Career Schools |  |  | 850,780 |  |  |  | 5,712 |  |  |  | 33,255 |  |  |  | 38,969 |  |  |  |  |
International |  |  | 101,013 |  |  |  | 16,334 |  |  |  | 4,748 |  |  |  | 2,664 |  |  |  |  |
Corporate and Other |  |  | (623 | ) |  |  | (43,045 | ) |  |  | 13,946 |  |  |  | 54,429 |  |  |  |  |
Subtotal |  |  | 1,847,463 |  |  |  | 229,773 |  |  |  | 60,126 |  |  |  | 107,153 |  |  |  |  |
Transitional Schools |  |  | 222,090 |  |  |  | 12,572 |  |  |  | 8,541 |  |  |  | 19,340 |  |  |  |  |
Discontinued Operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 790 |  |  |  |  |
Total |  | $ | 2,069,553 |  |  | $ | 242,345 |  |  | $ | 68,667 |  |  | $ | 127,283 |  |  |  |  |
(1) | Statement of operation balances including revenue, operating (loss) income and depreciation and amortization are presented above on a continuing operation basis. Total assets and capital expenditures are presented on a consolidated basis with continuing and discontinued operations.
(2) | Health Education’s results for the year ended December 31, 2012 included $45.4 million of goodwill and trade name impairment charges.
(3) | Culinary Arts’ results for the year ended December 31, 2012 included an $8.1 million trade name impairment charge.
(4) | Design & Technology’s results for the year ended December 31, 2012 included a $40.8 million goodwill impairment charge.
(5) | A $19.0 million insurance recovery related to the settlement of claims under certain insurance policies was recorded within Corporate and Other for the year ended December 31, 2012.
(6) | The results for Transitional Schools for the year ended December 31, 2012 included $31.0 million in goodwill and asset impairment charges.
(7) | During 2011, CTU recorded an accrual of $5.0 million within administrative expense for an estimate for potential reimbursements of government funds, which was subsequently settled for $3.6 million during the third quarter of 2012.
(8) | Health Education’s results for the year ended December 31, 2011 included $65.7 million of goodwill and asset impairment charges.
(9) | Culinary Arts’ results for the year ended December 31, 2011 included $94.1 million of goodwill and trade name impairment charges.
(10) | Design & Technology’s results for the year ended December 31, 2011 included $6.0 million of legal expense related to the potential settlement of a legal matter, which was subsequently settled for $4.8 million during the fourth quarter of 2012.
(11) | A $7.0 million insurance recovery related to previously settled legal matters was recorded within Corporate and Other for the year ended December 31, 2011.
(12) | The results for Transitional Schools for the year ended December 31, 2011 included $31.0 million of goodwill and asset impairment charges.
(13) | Culinary Arts’ results for the year ended December 31, 2010 included a $67.8 million trade name impairment charge and a $40.8 million charge related to the settlement of a legal matter.
(14) | Total assets do not include the following intercompany activity: receivable or payable activity between schools and corporate and investments in subsidiaries.

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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 Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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