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SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2013
Segment Reporting [Abstract]  
SEGMENT REPORTING

13. SEGMENT REPORTING

Our segments were determined in accordance with FASB 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 certain additional campuses which were previously in the process of 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 campuses within the Transitional Schools segment will be reported within continuing operations for all periods presented until they complete their teach-out. As campuses within Transitional Schools cease operations, the results of operation for all periods presented will be reflected within discontinued operations. During the first quarter of 2013 and fourth quarter of 2012, we completed the teach-out of SBC Hazelwood and LCB Pittsburgh, respectively. Accordingly, the results of operations for these campuses are now reported within discontinued operations. All prior period results have been recast to reflect our reporting segments on a comparable basis.

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 job training in the field of energy conservation.

International includes our INSEEC schools and IUM school which are located in France and Monaco, respectively. 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.

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  
      For the Quarter
Ended March 31,		      For the Quarter
Ended March 31,		  
      2013      2012            2013                 2012        
     (Dollars in thousands)  

CTU

    $ 90,209       $ 96,329       $ 15,912      $ 19,079   

AIU

      66,299         88,940         3,146        14,661   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total University Schools

      156,508         185,269         19,058        33,740   
  

 

 

     

 

 

     

 

 

    

 

 

  

Health Education

      38,021         54,092         (11,310 )      (1,672 ) 

Culinary Arts

      45,938         62,838         (12,137 )      1,266   

Design & Technology

      30,289         41,801         (7,156 )      334   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total Career Schools

      114,248         158,731         (30,603 )      (72 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

International

      49,677         42,829         13,480        13,125   

Corporate and Other (1)

      —           14         (6,368 )      12,582   
  

 

 

     

 

 

     

 

 

    

 

 

  

Subtotal

      320,433         386,843         (4,433 )      59,375   

Transitional Schools

      20,050         44,521         (13,668 )      (11,519 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Total

    $ 340,483       $ 431,364       $ (18,101 )    $ 47,856   
  

 

 

     

 

 

     

 

 

    

 

 

  

 

     Total Assets as of (2)  
     March 31,
2013		      December 31,
2012		  
     (Dollars in thousands)  

CTU

    $ 72,047       $ 72,554   

AIU

      58,524         65,092   
  

 

 

     

 

 

  

Total University Schools

      130,571         137,646   
  

 

 

     

 

 

  

Health Education

      43,076         52,511   

Culinary Arts

      167,166         173,477   

Design & Technology

      30,037         30,720   
  

 

 

     

 

 

  

Total Career Schools

      240,279         256,708   
  

 

 

     

 

 

  

International

      264,451         280,636   

Corporate and Other

      310,591         385,611   
  

 

 

     

 

 

  

Subtotal

      945,892         1,060,601   

Transitional Schools

      26,373         39,030   

Discontinued Operations

      22,359         23,072   
  

 

 

     

 

 

  

Total

    $ 994,624       $ 1,122,703   
  

 

 

     

 

 

  

 

(1) The first quarter of 2012 operating income includes a $19.0 million insurance recovery related to the settlement of claims under certain insurance policies.
(2) Total assets do not include intercompany receivable or payable activity between schools and corporate and investments in subsidiaries.