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Segment Reporting
 12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Segment Reporting

17. 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 2014, we made the decision to commit to a plan of sale of our Le Cordon Bleu Culinary Arts institutions. As we anticipate the sale of these assets to be completed within one year, we have recorded the assets and liabilities related to these institutions within current assets and liabilities of discontinued operations as of December 31, 2014. See Note 4 “Discontinued Operations” to our consolidated financial statements. Accordingly, the results of operations for the Culinary Arts segment are now reported within discontinued operations.

During 2014, we announced the teach-out of three additional campuses within our Career Colleges segment. These campuses are now included within our Transitional Group segment. In addition, during 2014 we completed the teach-out of 21 campuses, and 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. Our four reporting segments are described below.

University Group:

Colorado Technical University (CTU) places a strong focus on providing industry-relevant degree programs to meet the needs of our students for employment and of employers for a well-educated workforce and 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. Students pursue their degrees through local campuses, fully-online programs through CTU Online and blended formats, which combine campus-based and online education. As of December 31, 2014, students enrolled at CTU represented approximately 49% of our total enrollments. Approximately 90% of CTU’s enrollments are fully online.

American InterContinental University (AIU) focuses on helping busy professionals get the degree they need to move forward in their career as efficiently as possible and collectively offers academic programs in the career-oriented disciplines of business studies, information technologies, criminal justice and design technologies. Students pursue their degrees through local campuses, fully-online programs through AIU Online and blended formats, which combine campus-based and online education. As of December 31, 2014, students enrolled at AIU represented approximately 28% of our total enrollments. Approximately 90% of AIU’s enrollments are fully online.

Career Colleges Group 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. Students pursue their degrees through local campuses, fully-online programs through SBC Online and blended formats, which combine campus-based and online education. As of December 31, 2014, students enrolled within our Career Colleges represented approximately 21% of our total enrollments. Approximately 15% of Career College’s enrollments are fully online.

Transitional Group includes our campuses that are currently being taught out. See the “Campus Locations” table in Item 1, “Business,” of this Annual Report on Form 10-K for a listing of campuses that comprise this segment. 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 12 remaining campuses within the Transitional Group as of December 31, 2014 will complete their teach-outs on varying dates through 2017.

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 (9)		  

For the Year Ended December 31, 2014 (1)

   

CTU

    $ 336,573       $ 69,492      $ 2,627       $ 628       $ 73,458   

AIU

      198,896         (9,412 )      2,329         916         51,755   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total University Group

      535,469         60,080        4,956         1,544         125,213   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Career Colleges (2)

      172,833         (73,753 )      9,227         4,620         29,365   

Corporate and Other (3)

      230         (21,169 )      17,455         4,545         332,672   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Subtotal

      708,532         (34,842 )      31,638         10,709         487,250   

Transitional Group

      32,826         (37,874 )      4,381         155         7,990   

Discontinued Operations

              2,292         78,294   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total

    $ 741,358       $ (72,716 )    $ 36,019       $ 13,156       $ 573,534   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

For the Year Ended December 31, 2013 (1)

   

CTU

    $ 346,086       $ 65,078      $ 2,828       $ 158       $ 75,275   

AIU

      231,606         (5,556 )      3,069         122         54,426   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total University Group

      577,692         59,522        5,897         280         129,701   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Career Colleges (4)

      196,990         (68,652 )      10,963         5,905         53,791   

Corporate and Other

      —           (33,600 )      22,574         6,272         491,821   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Subtotal

      774,682         (42,730 )      39,434         12,457         675,313   

Transitional Group (5)

      64,999         (38,111 )      5,721         346         13,805   

Discontinued Operations

              6,833         115,927   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total

    $ 839,681       $ (80,841 )    $ 45,155       $ 19,636       $ 805,045   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

For the Year Ended December 31, 2012 (1)

   

CTU

    $ 360,369       $ 56,155      $ 3,321       $ 1,401      

AIU

      304,208         20,896        4,249         1,746      
  

 

 

     

 

 

    

 

 

     

 

 

     

Total University Group

      664,577         77,051        7,570         3,147      
  

 

 

     

 

 

    

 

 

     

 

 

     

Career Colleges (6)

      243,186         (84,663 )      11,468         4,431      

Corporate and Other (7)

      55         (7,699 )      22,639         16,481      
  

 

 

     

 

 

    

 

 

     

 

 

     

Subtotal

      907,818         (15,311 )      41,677         24,059      

Transitional Group (8)

      112,085         (54,379 )      6,675         2,412      

Discontinued Operations

              11,473      
  

 

 

     

 

 

    

 

 

     

 

 

     

Total

    $ 1,019,903       $ (69,690 )    $ 48,352       $ 37,944      
  

 

 

     

 

 

    

 

 

     

 

 

     

 

(1) The statement of loss and comprehensive loss balances including revenue, operating loss 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, 2014, segment results included:

(2) Career Colleges: $14.5 million related to long-lived asset impairment and a $2.2 million trade name impairment charge.
(3) Corporate and Other: $8.6 million of income related to an insurance recovery.

For the year ended December 31, 2013, segment results included:

(4) Career Colleges: $4.7 million of trade name and asset impairment charges and $8.8 million related to the settlement of a legal matter.
(5) Transitional Group: $3.1 million in asset impairment charges and $1.7 million related to the settlement of legal matter.

For the year ended December 31, 2012, segment results included:

(6) Career Colleges: $53.0 million of goodwill and trade name impairment charges.
(7) Corporate and Other: A $19.0 million insurance recovery related to the settlement of claims under certain insurance policies.
(8) Transitional Group: $32.6 million of goodwill, trade name and asset impairment charges.

 

(9) Total assets do not include intercompany receivable or payable activity between institutions and corporate and investments in subsidiaries.