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SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2013
SEGMENT REPORTING

14. SEGMENT REPORTING

Our segments are determined in accordance with FASB ASC Topic 280 – Segment Reporting and are 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 plan. 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 follows (dollars in thousands):

 

     For the Quarter Ended June 30,  
     Revenue      Operating (Loss) Income  
     2013      2012      2013     2012  

CTU

    $ 86,887       $ 91,839       $ 16,588      $ 12,181   

AIU

      59,935         78,841         1,021        6,878   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total University Schools

      146,822         170,680         17,609        19,059   
  

 

 

     

 

 

     

 

 

    

 

 

  

Health Education (1)

      35,289         45,457         (27,107 )      (50,230 ) 

Culinary Arts (2)

      44,577         57,895         (17,017 )      (3,121 ) 

Design & Technology (3)

      27,858         34,724         (7,595 )      (45,006 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Total Career Schools

      107,724         138,076         (51,719 )      (98,357 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

International

      25,824         21,140         (3,659 )      (2,406 ) 

Corporate and Other

      —           20         (11,050 )      (5,373 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Subtotal

      280,370         329,916         (48,819 )      (87,077 ) 

Transitional Schools (4)

      14,477         36,033         (14,707 )      (18,178 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Total

    $ 294,847       $ 365,949       $ (63,526 )    $ (105,255 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

 

     For the Year to Date Ended June 30,  
     Revenue      Operating (Loss) Income  
     2013      2012           2013                2012        

CTU

    $ 177,096       $ 188,168       $ 32,500      $ 31,260   

AIU

      126,234         167,781         4,167        21,539   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total University Schools

      303,330         355,949         36,667        52,799   
  

 

 

     

 

 

     

 

 

    

 

 

  

Health Education (1)

      73,310         99,549         (38,417 )      (51,902 ) 

Culinary Arts (2)

      90,515         120,733         (29,154 )      (1,855 ) 

Design & Technology (3)

      58,147         76,525         (14,751 )      (44,672 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Total Career Schools

      221,972         296,807         (82,322 )      (98,429 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

International

      75,501         63,969         9,821        10,719   

Corporate and Other (5)

      —           34         (17,418 )      7,209   
  

 

 

     

 

 

     

 

 

    

 

 

  

Subtotal

      600,803         716,759         (53,252 )      (27,702 ) 

Transitional Schools (4)

      34,293         78,821         (27,629 )      (29,339 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Total

    $ 635,096       $ 795,580       $ (80,881 )    $ (57,041 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

 

     Total Assets as of (6)  
     June 30,
2013		      December 31,
2012		  

CTU

    $ 73,869       $ 72,554   

AIU

      59,974         65,092   
  

 

 

     

 

 

  

Total University Schools

      133,843         137,646   
  

 

 

     

 

 

  

Health Education

      39,109         52,511   

Culinary Arts

      161,410         173,477   

Design & Technology

      31,176         30,720   
  

 

 

     

 

 

  

Total Career Schools

      231,695         256,708   
  

 

 

     

 

 

  

International

      251,750         280,636   

Corporate and Other

      331,932         385,611   
  

 

 

     

 

 

  

Subtotal

      949,220         1,060,601   

Transitional Schools

      22,491         38,448   

Discontinued Operations

      22,477         23,654   
  

 

 

     

 

 

  

Total

    $ 994,188       $ 1,122,703   
  

 

 

     

 

 

  

 

(1) The second quarter of 2013 includes $10.0 million related to the probable settlement of a legal matter and a $1.7 million trade name impairment charge. The second quarter of 2012 included a $41.9 million goodwill impairment charge.
(2) The second quarter of 2013 includes a $2.3 million trade name impairment charge.
(3) The second quarter of 2012 included a $40.8 million goodwill impairment charge.
(4) The second quarter of 2012 included a $1.0 million trade name impairment charge, $0.9 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 $0.7 million goodwill impairment charge.
(5) The operating income for the year to date ended June 30, 2012 included a $19.0 million insurance recovery related to the settlement of claims under certain insurance policies.
(6) Total assets do not include intercompany receivable or payable activity between schools and corporate and investments in subsidiaries.