Segment Reporting

12 Months Ended

Dec. 31, 2018

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 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 non-traditional 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, criminal justice 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, 2018, students enrolled at CTU represented approximately 66% of our total enrollments. Approximately 93% of CTU’s enrollments are fully online.

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American InterContinental University (AIU) focuses on helping busy non-traditional students 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, 2018, students enrolled at AIU represented approximately 34% of our total enrollments. Approximately 94% of AIU’s enrollments are fully online.

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All Other Campuses includes those campuses 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. Our All Other Campuses segment includes former 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. The Company completed the teach-out activities of all Le Cordon Bleu campuses during 2017.

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Our non-LCB campuses which have completed their teach-out or those which have been closed or sold subsequent to January 1, 2015. These non-LCB campuses previously offered academic programs in career-oriented disciplines complemented by certain programs in business studies and information technology. During 2018, we completed the teach-out of all remaining non-LCB campuses.

Beginning in 2019, the Company will no longer report results for closed campuses separately as these campuses will no longer meet the definition of an operating segment under ASC Topic 280. Any remaining results of operations, which would primarily consist of occupancy expenses for any remaining properties, will be reported within Corporate and Other beginning January 1, 2019.

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, 2018 ⁽¹⁾
CTU	$	375,770	$	111,623		$	5,310	$	168	$	76,713
AIU		204,920		8,176			3,582		201		59,133
Total University Group		580,690		119,799			8,892		369		135,846
Corporate and Other		-		(16,598	)		369		6,363		330,132
Subtotal		580,690		103,201			9,261		6,732		465,978
All Other Campuses ⁽²⁾		606		(31,903	)		133		-		16,337
Discontinued Operations											178
Total	$	581,296	$	71,298		$	9,394	$	6,732	$	482,493
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 ⁽³⁾		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
AIU ⁽⁴⁾		193,032		(29,598	)		1,687		406
Total University Group		562,351		69,814			3,844		1,081
Corporate and Other		-		(25,097	)		7,320		2,512
Subtotal		562,351		44,717			11,164		3,593
All Other Campuses ⁽⁵⁾		142,041		(77,061	)		11,583		536
Discontinued Operations
Total	$	704,392	$	(32,344	)	$	22,747	$	4,129

(1)

The statement of income (loss) and comprehensive income (loss) 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, 2018, segment results included:

(2) All Other Campuses: $14.6 million of charges related to significant legal settlements and $9.4 million of charges related to remaining lease obligations of vacated space.

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

(3)	All Other Campuses: $6.5 million charge related to a significant 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:

(4)	AIU: $32.0 million charge related to a significant legal settlement.

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