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SEGMENT REPORTING | 12 Months Ended
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Dec. 31, 2013
Segment Reporting [Abstract] |
SEGMENT REPORTING | 18. 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. During the fourth quarter of 2013, we completed the sale and transfer of control of our International Segment, which consisted of our INSEEC schools and the International University of Monaco located in France and Monaco, respectively. See Note 3 “Dispositions” of the notes to our consolidated financial statements. Accordingly, the results of operations for the International Segment are now reported within discontinued operations. During the third and fourth quarters of 2013, we announced the teach-out of six additional campuses, including four campuses within Health Education and two campuses within Design & Technology. These campuses are now included within our Transitional Schools segment. In addition, during 2013 we completed the teach-out of four campuses, SBC Hazelwood, SBI Landover, SBC Milwaukee and IADT Schaumburg, and accordingly, the results of operations for these schools are now reported within discontinued operations. All prior period results have been recast to reflect our reporting segments on a comparable basis. Our 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 which collectively offer hands-on educational programs in the career-oriented disciplines of culinary arts and patisserie and baking in the commercial-grade kitchens of Le Cordon Bleu. Le Cordon Bleu also provides online programs in culinary arts and hotel and restaurant management. 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 visual communications, fashion design, photography, interior design, graphic design and video production in a classroom, laboratory or online setting as well as continuing education and short-term vocational programs in the area of energy conservation. Transitional Schools includes our campuses that are currently 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. 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 (dollars in thousands):
|  | Revenue |  |  | Operating (Loss) Income |  |  | Depreciation and Amortization |  |  | Capital Expenditures |  |  | Total Assets (17) |
For the Year Ended December 31, 2013 |  |  |  |
CTU |  | $ | 347,255 |  |  | $ | 63,460 |  |  | $ | 2,919 |  |  | $ | 158 |  |  | $ | 75,441 |
AIU |  |  | 231,606 |  |  |  | (5,556 | ) |  |  | 3,069 |  |  |  | 122 |  |  |  | 54,426 |
Total University Schools |  |  | 578,861 |  |  |  | 57,904 |  |  |  | 5,988 |  |  |  | 280 |  |  |  | 129,867 |
Health Education (2) |  |  | 125,845 |  |  |  | (50,480 | ) |  |  | 7,796 |  |  |  | 542 |  |  |  | 39,248 |
Culinary Arts (3) |  |  | 177,549 |  |  |  | (81,218 | ) |  |  | 17,083 |  |  |  | 705 |  |  |  | 108,349 |
Design & Technology (4) |  |  | 96,348 |  |  |  | (30,542 | ) |  |  | 4,934 |  |  |  | 5,691 |  |  |  | 19,470 |
Total Career Schools |  |  | 399,742 |  |  |  | (162,240 | ) |  |  | 29,813 |  |  |  | 6,938 |  |  |  | 167,067 |
Corporate and Other |  |  | — |  |  |  | (33,600 | ) |  |  | 22,574 |  |  |  | 6,272 |  |  |  | 491,674 |
Subtotal |  |  | 978,603 |  |  |  | (137,936 | ) |  |  | 58,375 |  |  |  | 13,490 |  |  |  | 788,608 |
Transitional Schools (5) |  |  | 78,757 |  |  |  | (76,748 | ) |  |  | 10,265 |  |  |  | 294 |  |  |  | 14,974 |
Discontinued Operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,852 |  |  |  | 1,463 |
Total |  | $ | 1,057,360 |  |  | $ | (214,684 | ) |  | $ | 68,640 |  |  | $ | 19,636 |  |  | $ | 805,045 |
For the Year Ended December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CTU (11) |  | $ | 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 (6) |  |  | 153,441 |  |  |  | (70,888 | ) |  |  | 8,020 |  |  |  | 3,633 |  |  |  | 45,471 |
Culinary Arts (7) |  |  | 224,842 |  |  |  | (33,854 | ) |  |  | 17,670 |  |  |  | 2,535 |  |  |  | 173,477 |
Design & Technology (8) (14) |  |  | 124,611 |  |  |  | (56,747 | ) |  |  | 5,400 |  |  |  | 2,157 |  |  |  | 27,389 |
Total Career Schools |  |  | 502,894 |  |  |  | (161,489 | ) |  |  | 31,090 |  |  |  | 8,325 |  |  |  | 246,337 |
Corporate and Other (9) |  |  | 55 |  |  |  | (7,699 | ) |  |  | 22,640 |  |  |  | 16,481 |  |  |  | 433,152 |
Subtotal |  |  | 1,171,092 |  |  |  | (93,364 | ) |  |  | 61,455 |  |  |  | 27,960 |  |  |  | 817,135 |
Transitional Schools (10) |  |  | 173,788 |  |  |  | (103,637 | ) |  |  | 13,282 |  |  |  | 3,450 |  |  |  | 47,446 |
Discontinued Operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6,534 |  |  |  | 258,122 |
Total |  | $ | 1,344,880 |  |  | $ | (197,001 | ) |  | $ | 74,737 |  |  | $ | 37,944 |  |  | $ | 1,122,703 |
For the Year Ended December 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CTU (11) |  | $ | 415,411 |  |  | $ | 111,119 |  |  | $ | 3,425 |  |  | $ | 4,553 |  |  |  |  |
AIU |  |  | 365,203 |  |  |  | 72,738 |  |  |  | 4,830 |  |  |  | 3,208 |  |  |  |  |
Total University Schools |  |  | 780,614 |  |  |  | 183,857 |  |  |  | 8,255 |  |  |  | 7,761 |  |  |  |  |
Health Education (12) |  |  | 211,177 |  |  |  | (44,602 | ) |  |  | 9,782 |  |  |  | 17,205 |  |  |  |  |
Culinary Arts (13) |  |  | 303,135 |  |  |  | (63,452 | ) |  |  | 19,357 |  |  |  | 3,646 |  |  |  |  |
Design & Technology (14) |  |  | 162,410 |  |  |  | 11,500 |  |  |  | 6,414 |  |  |  | 2,477 |  |  |  |  |
Total Career Schools |  |  | 676,722 |  |  |  | (96,554 | ) |  |  | 35,553 |  |  |  | 23,328 |  |  |  |  |
Corporate and Other (15) |  |  | (399 | ) |  |  | (30,194 | ) |  |  | 19,736 |  |  |  | 28,643 |  |  |  |  |
Subtotal |  |  | 1,456,937 |  |  |  | 57,109 |  |  |  | 63,544 |  |  |  | 59,732 |  |  |  |  |
Transitional Schools (16) |  |  | 248,644 |  |  |  | (45,882 | ) |  |  | 12,843 |  |  |  | 14,132 |  |  |  |  |
Discontinued Operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,469 |  |  |  |  |
Total |  | $ | 1,705,581 |  |  | $ | 11,227 |  |  | $ | 76,387 |  |  | $ | 78,333 |  |  |  |  |
(1) | The statement of (loss) income and comprehensive (loss) income balances including revenue, operating (loss) income and depreciation and amortization are presented above on a continuing operations basis. Total assets and capital expenditures are presented on a consolidated basis including continuing and discontinued operations.
For the year ended December 31, 2013, segment results included:
(2) | Health Education: $8.8 million related to the settlement of a legal matter and a $1.7 million trade name impairment charge.
(3) | Culinary Arts: $15.5 million related to a pending legal settlement and a $13.0 million trade name impairment charge.
(4) | Design & Technology: $4.1 million in asset impairments, related to long-lived assets for our ongoing schools ($2.3) and decisions made to exit certain leased facilities ($1.8).
(5) | Transitional Schools: $2.6 million in asset impairments and $1.7 million related to the settlement of a legal matter.
For the year ended December 31, 2012, segment results included:
(6) | Health Education: $44.8 million of goodwill and trade name impairment charges.
(7) | Culinary Arts: An $8.1 million trade name impairment charge.
(8) | Design & Technology: A $40.8 million goodwill impairment charge.
(9) | Corporate and Other: A $19.0 million insurance recovery related to the settlement of claims under certain insurance policies.
(10) | Transitional Schools: $30.7 million in goodwill and asset impairment charges.
For the year ended December 31, 2011, segment results included:
(11) | 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.
(12) | Health Education: $59.9 million of goodwill and intangible asset impairment charges.
(13) | Culinary Arts: $94.1 million of goodwill and trade name impairment charges.
(14) | Design & Technology: $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.
(15) | Corporate and Other: A $7.0 million insurance recovery related to previously settled legal matters.
(16) | Transitional Schools: $37.3 million of goodwill and asset impairment charges.
(17) | Total assets do not include intercompany 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 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 2: 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 3: 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 4: 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 5: 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 6: 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 7: 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 8: 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 Reference 9: 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 10: 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 11: 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 12: 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 13: 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 14: 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 + Details
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