18. Segment Reporting

Strategic Education is an educational services company that provides access to high-quality education through campus-based and online post-secondary education offerings, as well as through programs to develop job-ready skills for high-demand markets. Strategic Education’s portfolio of companies is dedicated to closing the skills gap by placing adults on the most direct path between learning and employment.

Two of the Company’s operating segments that meet the quantitative thresholds to qualify as reportable segments are the Strayer University and Capella University segments. The Strayer University segment is comprised of Strayer University, including its programs offered through the the Jack Welch Management Institute; the Capella University segment consists of Capella University. None of the Company’s other operating segments individually meet the quantitative thresholds to qualify as reportable segments; therefore, these other operating segments are combined and presented below as Non-Degree Programs. The Non-Degree Programs reportable segment is comprised of the DevMountain, LLC (“DevMountain”), Hackbright Academy, Inc. (“Hackbright”), NYCDA, and Sophia Learning, LLC businesses.

Revenue and operating expenses are generally directly attributable to the segments. Inter-segment revenues are not presented separately, as these amounts are immaterial. The Company’s Chief Operating Decision Maker does not evaluate operating segments using asset information.

A summary of financial information by reportable segment (in thousands) for the years ended December 31, 2016, 2017, and 2018 is presented in the following table:


	2016		2017		2018
Revenues
Strayer University	$	435,153	$	449,547	$	471,104
Capella University		—		—		154,918
Non-Degree Programs		5,935		5,304		8,163
Consolidated revenues	$	441,088	$	454,851	$	634,185
Income (loss) from operations
Strayer University	$	67,991	$	64,801	$	68,188
Capella University		—		—		6,340
Non-Degree Programs		(13,732)		(8,225)		(5,920)
Amortization of intangible assets		—		—		(25,694)
Merger costs		—		(11,879)		(45,745)
Fair value adjustments and impairment of intangible assets		3,213		7,512		(19,909)
Consolidated income (loss) from operations	$	57,472	$	52,209	$	(22,740)

The following table presents a schedule of significant non-cash items included in segment income (loss) from operations by reportable segment (in thousands):


	2016		2017		2018
Depreciation and amortization
Strayer University	$	17,380	$	18,268	$	19,997
Capella University		—		—		7,382
Non-Degree Programs		437		465		741
Amortization of intangible assets		—		—		25,694
Merger costs		—		—		729
Consolidated depreciation and amortization	$	17,817	$	18,733	$	54,543
Stock-Based compensation
Strayer University	$	10,767	$	11,627	$	11,602
Capella University		—		—		1,495
Non-Degree Programs		—		—		193
Merger costs		—		—		2,242
Consolidated stock-based compensation	$	10,767	$	11,627	$	15,532