XML 55 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
Segment Reporting
 9 Months Ended
Sep. 30, 2014
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. Our reporting segments are described below.

University Schools:

Colorado Technical University (CTU) collectively offers 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) collectively offers 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:

Career Colleges includes Briarcliffe College, Brooks Institute, Harrington College of Design, Missouri College and our Sanford-Brown institutions. The Career Colleges group collectively offers academic programs primarily in the career-oriented discipline of health education complemented by certain programs in business studies and information technology, as well as visual communications, fashion design, photography, interior design, graphic design and video production in a classroom, laboratory or online setting.

Culinary Arts includes our Le Cordon Bleu institutions 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.

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 (dollars in thousands):

 

     For the Quarter Ended September 30,  
     Revenue    

Operating (Loss) Income

  
     2014      % of
Total		     2013      % of
Total		     2014      2013  

CTU

    $ 82,410         36.2 %    $ 82,185         33.7 %    $ 10,698       $ 9,615   

AIU

      51,889         22.8 %      56,284         23.1 %      (4,194 )       (5,930 ) 
  

 

 

       

 

 

       

 

 

     

 

 

  

Total University Schools

      134,299         59.0 %      138,469         56.7 %      6,504         3,685   
  

 

 

       

 

 

       

 

 

     

 

 

  

Career Colleges (1)

      40,799         17.9 %      45,900         18.8 %      (29,908 )       (17,242 ) 

Culinary Arts (2)

      44,499         19.6 %      44,256         18.1 %      (12,602 )       (23,655 ) 
  

 

 

       

 

 

       

 

 

     

 

 

  

Total Career Schools

      85,298         37.5 %      90,156         36.9 %      (42,510 )       (40,897 ) 
  

 

 

       

 

 

       

 

 

     

 

 

  

Corporate and Other (3)

      52         0.0 %      —           0.0 %      2,528         (7,561 ) 
  

 

 

       

 

 

       

 

 

     

 

 

  

Subtotal

      219,649         96.6 %      228,625         93.6 %      (33,478 )       (44,773 ) 

Transitional Schools

      7,803         3.4 %      15,545         6.4 %      (11,390 )       (10,099 ) 
  

 

 

       

 

 

       

 

 

     

 

 

  

Total

    $ 227,452         100.0 %    $ 244,170         100.0 %    $ (44,868 )     $ (54,872 ) 
  

 

 

       

 

 

       

 

 

     

 

 

  
     For the Year to Date Ended September 30,  
     Revenue     Operating (Loss) Income  
     2014      % of
Total		     2013      % of
Total		     2014     2013  

CTU

    $ 254,371         36.5 %    $ 258,504         33.2 %    $ 46,136      $ 42,932   

AIU

      154,147         22.1 %      182,518         23.5 %      (9,108 )      (1,763 ) 
  

 

 

       

 

 

       

 

 

    

 

 

  

Total University Schools

      408,518         58.6 %      441,022         56.7 %      37,028        41,169   
  

 

 

       

 

 

       

 

 

    

 

 

  

Career Colleges (1)

      131,220         18.8 %      147,065         18.9 %      (60,103 )      (56,617 ) 

Culinary Arts (2)

      129,312         18.5 %      134,771         17.3 %      (50,420 )      (52,809 ) 
  

 

 

       

 

 

       

 

 

    

 

 

  

Total Career Schools

      260,532         37.4 %      281,836         36.2 %      (110,523 )      (109,426 ) 
  

 

 

       

 

 

       

 

 

    

 

 

  

Corporate and Other (3)

      190         0.0 %      —           0.0 %      (14,121 )      (24,979 ) 
  

 

 

       

 

 

       

 

 

    

 

 

  

Subtotal

      669,240         96.0 %      722,858         92.9 %      (87,616 )      (93,236 ) 

Transitional Schools

      28,151         4.0 %      54,831         7.1 %      (29,291 )      (28,231 ) 
  

 

 

       

 

 

       

 

 

    

 

 

  

Total

    $ 697,391         100.0 %    $ 777,689         100.0 %    $ (116,907 )    $ (121,467 ) 
  

 

 

       

 

 

       

 

 

    

 

 

  
     Total Assets as of (4)                     
     September 30,
2014		            December 31,
2013		                     

CTU

    $ 74,981         $ 75,275          

AIU

      53,557           54,426          
  

 

 

       

 

 

         

Total University Schools

      128,538           129,701          
  

 

 

       

 

 

         

Career Colleges

      34,560           53,791          

Culinary Arts

      89,106           108,349          
  

 

 

       

 

 

         

Total Career Schools

      123,666           162,140          
  

 

 

       

 

 

         

Corporate and Other

      360,335           491,822          
  

 

 

       

 

 

         

Subtotal

      612,539           783,663          

Transitional Schools

      9,864           14,078          

Discontinued Operations

      1,633           7,304          
  

 

 

       

 

 

         

Total

    $ 624,036         $ 805,045          
  

 

 

       

 

 

         

 

(1) The third quarter of 2014 operating loss includes $12.8 million of asset impairment charges. The year to date 2013 operating loss includes $8.6 million related to legal settlements and a $1.7 million trade name impairment charge.
(2) The third quarter of 2014 operating loss includes $1.5 million of trade name impairment charges. The year to date 2014 and 2013 operating loss includes $8.9 million and $13.0 million of trade name impairment charges, respectively.
(3) The third quarter of 2014 operating income includes an insurance recovery of $8.6 million.
(4) Total assets do not include intercompany receivable or payable activity between campuses and corporate and investments in subsidiaries.