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Segment Reporting | 9 Months Ended
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Sep. 30, 2016
Segment Reporting [Abstract] |
Segment Reporting | 12. 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 operational alignment and, for our two universities, to enhance brand focus within each segment to more effectively execute our strategic plan. As of September 30, 2016, our four segments are: 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 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 fully-online programs through CTU Online, local campuses and blended formats, which combine campus-based and online education. As of September 30, 2016, students enrolled at CTU represented approximately 59% of our total enrollments. Approximately 93% 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 fully-online programs through AIU Online, local campuses and blended formats, which combine campus-based and online education. As of September 30, 2016, students enrolled at AIU represented approximately 29% of our total enrollments. Approximately 93% of AIU’s enrollments are fully online.
Career Schools Group: Campuses included in our Career Schools segments include those which are currently being taught out or those which have completed their teach-out activities or have been sold subsequent to January 1, 2015. As a result of a change in accounting guidance, campuses which have closed or have been sold subsequent to January 1, 2015 no longer meet the criteria for discontinued operations and remain reported within continuing operations on our unaudited condensed consolidated financial statements. Campuses in teach-out employ a gradual teach-out process, enabling them to continue to operate while current students have a reasonable opportunity to complete their course of study; they no longer enroll new students.
| ☐ | Culinary Arts includes our Le Cordon Bleu institutions in North America (“LCB”) which 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. LCB also provides online programs in culinary arts and hotel and restaurant management. These campuses are all expected to complete their teach-out activities during 2017. As of September 30, 2016, students enrolled at LCB represented approximately 9% of our total enrollments.
| ☐ | Transitional Group includes our non-LCB campuses which are in teach-out or those which have been closed or sold subsequent to January 1, 2015. Our Transitional Group 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 fashion design, film and video production, graphic design, interior design and visual communications. The campuses within the Transitional Group that have not yet ceased operations as of September 30, 2016 will complete their teach-outs on varying dates through 2018. As of September 30, 2016, students enrolled at the Transitional Group campuses represented approximately 3% of our total enrollments. During the third quarter of 2016, the Company completed the teach-out of five Transitional Group campuses: Sanford-Brown Atlanta, Sanford-Brown Dallas, Sanford-Brown Ft. Lauderdale, Sanford-Brown Iselin and International Academy of Design & Technology Detroit, which continue to be reported as part of the Transitional Group as of September 30, 2016.
Summary financial information by reporting segment is as follows (dollars in thousands):
|  | For the Quarter Ended September 30, |
|  | Revenue |  |  | Operating (Loss) Income |
|  | 2016 |  |  | % of Total |  |  | 2015 |  |  | % of Total |  |  | 2016 |  |  | 2015 |
CTU (1) |  | $ | 90,921 |  |  |  | 54.2 | % |  | $ | 85,433 |  |  |  | 42.0 | % |  | $ | 21,486 |  |  | $ | 18,616 |
AIU (2) |  |  | 48,542 |  |  |  | 29.0 | % |  |  | 50,688 |  |  |  | 24.9 | % |  |  | 291 |  |  |  | 1,695 |
Total University Group |  |  | 139,463 |  |  |  | 83.2 | % |  |  | 136,121 |  |  |  | 66.9 | % |  |  | 21,777 |  |  |  | 20,311 |
Corporate and Other |  |  | - |  |  | NM |  |  |  | 39 |  |  | NM |  |  |  | (5,587 | ) |  |  | (8,040 | )
Subtotal |  |  | 139,463 |  |  |  | 83.2 | % |  |  | 136,160 |  |  |  | 66.9 | % |  |  | 16,190 |  |  |  | 12,271 |
Culinary Arts (3) |  |  | 21,369 |  |  |  | 12.7 | % |  |  | 41,410 |  |  |  | 20.4 | % |  |  | (1,801 | ) |  |  | (33,195 | )
Transitional Group |  |  | 6,793 |  |  |  | 4.1 | % |  |  | 25,914 |  |  |  | 12.7 | % |  |  | (15,095 | ) |  |  | (23,065 | )
Total |  | $ | 167,625 |  |  |  | 100.0 | % |  | $ | 203,484 |  |  |  | 100.0 | % |  | $ | (706 | ) |  | $ | (43,989 | )
|  | For the Year to Date Ended September 30, |
|  | Revenue |  |  | Operating (Loss) Income |
|  | 2016 |  |  | % of Total |  |  | 2015 |  |  | % of Total |  |  | 2016 |  |  | 2015 |
CTU (1) |  | $ | 274,623 |  |  |  | 50.0 | % |  | $ | 256,734 |  |  |  | 39.7 | % |  | $ | 70,693 |  |  | $ | 57,495 |
AIU (2) |  |  | 152,123 |  |  |  | 27.7 | % |  |  | 155,778 |  |  |  | 24.1 | % |  |  | 9,036 |  |  |  | 3,982 |
Total University Group |  |  | 426,746 |  |  |  | 77.7 | % |  |  | 412,512 |  |  |  | 63.7 | % |  |  | 79,729 |  |  |  | 61,477 |
Corporate and Other |  |  | - |  |  | NM |  |  |  | 117 |  |  | NM |  |  |  | (17,160 | ) |  |  | (20,936 | )
Subtotal |  |  | 426,746 |  |  |  | 77.7 | % |  |  | 412,629 |  |  |  | 63.7 | % |  |  | 62,569 |  |  |  | 40,541 |
Culinary Arts (3) |  |  | 89,990 |  |  |  | 16.4 | % |  |  | 128,170 |  |  |  | 19.8 | % |  |  | 1,666 |  |  |  | (43,512 | )
Transitional Group |  |  | 32,401 |  |  |  | 5.9 | % |  |  | 106,527 |  |  |  | 16.5 | % |  |  | (40,672 | ) |  |  | (85,268 | )
Total |  | $ | 549,137 |  |  |  | 100.0 | % |  | $ | 647,326 |  |  |  | 100.0 | % |  | $ | 23,563 |  |  | $ | (88,239 | )
|  | Total Assets as of (4) |
|  | September 30, 2016 |  |  | December 31, 2015 |
CTU |  | $ | 73,695 |  |  | $ | 76,577 |
AIU |  |  | 53,521 |  |  |  | 53,087 |
Total University Group |  |  | 127,216 |  |  |  | 129,664 |
Corporate and Other |  |  | 332,902 |  |  |  | 372,405 |
Subtotal |  |  | 460,118 |  |  |  | 502,069 |
Culinary Arts |  |  | 61,425 |  |  |  | 71,197 |
Transitional Group |  |  | 21,120 |  |  |  | 28,584 |
Discontinued Operations |  |  | 8,810 |  |  |  | 9,065 |
Total |  | $ | 551,473 |  |  | $ | 610,915 |
(1) | Bad debt increased approximately 2.0% and 2.3% as a percentage of revenue for the quarter and year to date ended September 30, 2016 as compared to the respective prior periods, primarily driven by students who are experiencing a greater time lag while completing the financial aid application process due to increased verification procedures implemented by ED.
(2) | Bad debt remained relatively flat as a percentage of revenue for the quarter and increased approximately 1.1% as a percentage of revenue for the year to date ended September 30, 2016 as compared to the respective prior periods, primarily driven by students who are experiencing a greater time lag while completing the financial aid application process due to increased verification procedures implemented by ED.
(3) | The prior year quarter and year to date included $33.4 million and $43.1 million of asset impairment charges, respectively.
(4) | 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 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: 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=68060357&loc=d3e9038-108599 Reference 3: 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=68060357&loc=d3e8971-108599 Reference 4: 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=68060357&loc=d3e8595-108599 Reference 5: 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=68060357&loc=d3e8380-108599 Reference 6: 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=68060357&loc=d3e8933-108599 Reference 7: 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=68060357&loc=d3e8844-108599 Reference 8: 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=68060357&loc=d3e8984-108599 Reference 9: 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=68060357&loc=d3e9031-108599 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=68060357&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 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: 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=68060357&loc=d3e8864-108599 Reference 13: 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=68060357&loc=d3e8924-108599 Reference 14: 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=68060357&loc=d3e8906-108599 + Details
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