16. 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.

Our three reporting segments are described below.

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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 December 31, 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 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 December 31, 2017, students enrolled at AIU represented approximately 36% of our total enrollments. Approximately 94% of AIU’s enrollments are fully online.

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All Other Campuses includes those campuses which are currently being taught out or 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. Our All Other Campuses segment includes campuses in the following two categories:

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Our Le Cordon Bleu institutions in North America (“LCB”) which previously offered hands-on educational programs in the career-oriented disciplines of culinary arts and patisserie and baking. During 2017, the Company completed the teach-out activities of all remaining Le Cordon Bleu campuses. These campuses comprised our former Culinary Arts segment.

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Our non-LCB campuses which are in teach-out or those which have been closed or sold subsequent to January 1, 2015. These non-LCB campuses offer academic programs in career-oriented disciplines complemented by certain programs in business studies and information technology. These campuses comprised our former Transitional Group segment. Campuses that have not yet ceased operations as of December 31, 2017 will complete their teach-outs on varying dates during 2018. As of December 31, 2017, students enrolled at these campuses represented less than 1% of our total enrollments. During 2017, we completed the teach-out of seven non-LCB campuses.

The results of operations for these closed campuses will remain reported within the ‘All Other Campuses’ segment as part of continuing operations, in accordance with ASC Topic 360.

All prior period results have been recast to reflect our reporting segments on a comparable basis.

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 Income (Loss)			Depreciation and Amortization		Capital Expenditures		Total Assets
For the Year Ended December 31, 2017 ⁽¹⁾
CTU	$	371,325	$	109,202		$	2,047	$	74	$	72,988
AIU		198,251		8,401			1,752		79		51,832
Total University Group		569,576		117,603			3,799		153		124,820
Corporate and Other		-		(22,067	)		6,527		6,179		291,211
Subtotal		569,576		95,536			10,326		6,332		416,031
All Other Campuses⁽²⁾		26,859		(61,400	)		3,664		-		29,098
Discontinued Operations											1,967
Total	$	596,435	$	34,136		$	13,990	$	6,332	$	447,096
For the Year Ended December 31, 2016 ⁽¹⁾
CTU	$	369,319	$	99,412		$	2,157	$	675	$	76,143
AIU ⁽³⁾		193,032		(29,598	)		1,687		406		66,081
Total University Group		562,351		69,814			3,844		1,081		142,224
Corporate and Other		-		(25,097	)		7,320		2,512		334,945
Subtotal		562,351		44,717			11,164		3,593		477,169
All Other Campuses ⁽⁴⁾		142,041		(77,061	)		11,583		536		76,179
Discontinued Operations											6,253
Total	$	704,392	$	(32,344	)	$	22,747	$	4,129	$	559,601
For the Year Ended December 31, 2015 ⁽¹⁾
CTU	$	348,215	$	87,496		$	2,281	$	1,084
AIU		201,649		5,520			1,636		2,406
Total University Group		549,864		93,016			3,917		3,490
Corporate and Other		157		(27,267	)		11,173		4,873
Subtotal		550,021		65,749			15,090		8,363
All Other Campuses ⁽⁵⁾		297,252		(157,917	)		9,848		3,332
Discontinued Operations
Total	$	847,273	$	(92,168	)	$	24,938	$	11,695

(1)

The statement of (loss) income and comprehensive (loss) income balances including revenue, operating income (loss), depreciation and amortization and capital expenditures are presented above on a continuing operations basis. Total assets are presented on a consolidated basis including continuing and discontinued operations.

For the year ended December 31, 2017, segment results included:

(2)	All Other Campuses: $6.5 million charge related to a legal settlement and $14.8 million of charges related to remaining lease obligations of vacated space.

For the year ended December 31, 2016, segment results included:

(3)	AIU: $32.0 million charge related to legal settlements.

(4)	All Other Campuses: $31.0 million of charges related to remaining lease obligations of vacated space.

For the year ended December 31, 2015, segment results included:

(5)	All Other Campuses: $41.2 million related to long-lived asset impairment and an $18.8 million trade name impairment charge.