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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2013
Segment Reporting [Abstract]  
SEGMENT REPORTING

13. 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 results of our International Schools are now reported within discontinued operations due to our decision in the third quarter of 2013 to commit to a plan to sell these assets. The remaining six 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.

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 September 30,  
     Revenue      Operating (Loss) Income  
     2013      2012           2013               2012       

CTU

    $ 82,424       $ 86,484       $ 9,208      $ 10,324   

AIU

      56,284         71,204         (5,930 )      1,084   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total University Schools

      138,708         157,688         3,278        11,408   
  

 

 

     

 

 

     

 

 

    

 

 

  

Health Education

      34,129         40,469         (14,783 )      (12,758 ) 

Culinary Arts (1)

      44,256         54,415         (23,655 )      (10,136 ) 

Design & Technology

      24,752         33,129         (10,036 )      (6,240 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Total Career Schools

      103,137         128,013         (48,474 )      (29,134 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Corporate and Other

      —           16         (7,561 )      (5,389 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Subtotal

      241,845         285,717         (52,757 )      (23,115 ) 

Transitional Schools

      9,468         30,438         (15,892 )      (17,327 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Total

    $ 251,313       $ 316,155       $ (68,649 )    $ (40,442 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

 

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

CTU

    $ 259,520       $ 274,652       $ 41,708      $ 41,584   

AIU

      182,518         238,985         (1,763 )      22,623   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total University Schools

      442,038         513,637         39,945        64,207   
  

 

 

     

 

 

     

 

 

    

 

 

  

Health Education (2)

      107,439         140,018         (53,200 )      (64,660 ) 

Culinary Arts (1)

      134,771         175,148         (52,809 )      (11,991 ) 

Design & Technology (3)

      82,899         109,654         (24,787 )      (50,912 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Total Career Schools

      325,109         424,820         (130,796 )      (127,563 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Corporate and Other (4)

      —           50         (24,979 )      1,746   
  

 

 

     

 

 

     

 

 

    

 

 

  

Subtotal

      767,147         938,507         (115,830 )      (61,610 ) 

Transitional Schools (5)

      43,761         109,259         (43,521 )      (46,666 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Total

    $ 810,908       $ 1,047,766       $ (159,351 )    $ (108,276 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

 

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

CTU

    $ 74,300       $ 72,554   

AIU

      60,755         65,092   
  

 

 

     

 

 

  

Total University Schools

      135,055         137,646   
  

 

 

     

 

 

  

Health Education

      36,884         52,511   

Culinary Arts

      145,860         173,477   

Design & Technology

      32,108         30,720   
  

 

 

     

 

 

  

Total Career Schools

      214,852         256,708   
  

 

 

     

 

 

  

Corporate and Other

      342,734         433,233   
  

 

 

     

 

 

  

Subtotal

      692,641         827,587   

Transitional Schools

      19,731         38,448   

Discontinued Operations

      272,811         256,668   
  

 

 

     

 

 

  

Total

    $ 985,183       $ 1,122,703   
  

 

 

     

 

 

  

 

 

(1) Year to date 2013 expenses include a $13.0 million trade name impairment charge, of which $10.7 million was recorded in the third quarter of 2013.
(2) Year to date 2013 expenses include $10.3 million related to the settlement of a legal matter and a $1.7 million trade name impairment charge. Year to date 2012 included a $41.9 million goodwill impairment charge.
(3) Year to date 2012 expenses include a $40.8 million goodwill impairment charge.
(4) The operating income for the year to date ended September 30, 2012 included a $19.0 million insurance recovery related to the settlement of claims under certain insurance policies.
(5) Year to date 2012 expenses include 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.
(6) Total assets do not include intercompany receivable or payable activity between schools and corporate and investments in subsidiaries.