11. 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 June 30, 2017, our four segments are:

University Group:

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Colorado Technical University (CTU) places a strong focus on providing industry-relevant degree programs to meet the needs of our students for career advancement and of employers for a well-educated workforce and offers academic programs in the career-oriented disciplines of business studies, nursing, computer science, engineering, information systems and technology, cybersecurity and healthcare management. Students pursue their degrees through fully-online programs, local campuses and blended formats, which combine campus-based and online education. As of June 30, 2017, students enrolled at CTU represented approximately 63% of our total enrollments. Approximately 92% of CTU’s enrollments are fully online.

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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, education and criminal justice. Students pursue their degrees through fully-online programs, local campuses and blended formats, which combine campus-based and online education. As of June 30, 2017, students enrolled at AIU represented approximately 34% of our total enrollments. Approximately 94% of AIU’s enrollments are fully online.

Career Schools Group:

Campuses included in our Career School 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 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.

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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. These campuses are all expected to complete their teach-out activities by the end of 2017. As of June 30, 2017, students enrolled at LCB represented approximately 2% of our total enrollments.

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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 in career-oriented disciplines complemented by certain programs in business studies and information technology. The campuses within the Transitional Group that have not yet ceased operations as of June 30, 2017 will complete their teach-outs on varying dates through 2018. As of June 30, 2017, students enrolled at the Transitional Group campuses represented approximately 1% of our total enrollments. During the second quarter of 2017, the Company completed the teach-out of three Transitional Group campuses: Sanford-Brown Brooklyn Center, Sanford-Brown Chicago and Sanford-Brown Orlando, which continue to be reported as part of the Transitional Group as of June 30, 2017.

Summary financial information by reporting segment is as follows (dollars in thousands):

	For the Quarter Ended June 30,
	Revenue										Operating Income (Loss)
	2017		% of Total			2016		% of Total			2017			2016
CTU	$	91,204		62.4	%	$	91,736		50.2	%	$	28,064		$	29,970
AIU		46,215		31.6	%		50,608		27.7	%		1,075			6,838
Total University Group		137,419		94.0	%		142,344		77.9	%		29,139			36,808
Corporate and Other		-	NM				-	NM				(5,847	)		(5,761	)
Subtotal		137,419		94.0	%		142,344		77.9	%		23,292			31,047
Culinary Arts		6,646		4.5	%		29,998		16.4	%		(6,753	)		361
Transitional Group		2,157		1.5	%		10,284		5.6	%		(7,435	)		(14,118	)
Total	$	146,222		100.0	%	$	182,626		100.0	%	$	9,104		$	17,290

	For the Year to Date Ended June 30,
	Revenue										Operating Income (Loss)
	2017		% of Total			2016		% of Total			2017			2016
CTU	$	185,239		60.1	%	$	183,702		48.2	%	$	51,084		$	49,207
AIU		100,468		32.6	%		103,581		27.2	%		5,731			8,745
Total University Group		285,707		92.7	%		287,283		75.3	%		56,815			57,952
Corporate and Other		-	NM				-	NM				(10,396	)		(11,573	)
Subtotal		285,707		92.7	%		287,283		75.3	%		46,419			46,379
Culinary Arts		16,935		5.5	%		68,621		18.0	%		(11,012	)		3,467
Transitional Group		5,689		1.8	%		25,608		6.7	%		(16,522	)		(25,577	)
Total	$	308,331		100.0	%	$	381,512		100.0	%	$	18,885		$	24,269

	Total Assets as of⁽¹⁾
	June 30, 2017		December 31, 2016
CTU	$	73,081	$	76,143
AIU		68,188		66,081
Total University Group		141,269		142,224
Corporate and Other		290,811		334,945
Subtotal		432,080		477,169
Culinary Arts		52,324		57,443
Transitional Group		15,984		18,736
Discontinued Operations		6,087		6,253
Total	$	506,475	$	559,601

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