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Segment Reporting
 12 Months Ended
Dec. 31, 2019
Segment Reporting  
Segment Reporting

20.   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.

During the first quarter of fiscal year 2020, the Company changed its organizational structure resulting in two reportable segments: Strayer University segment and Capella University segment, each of which meets the quantitative thresholds to qualify as reportable segments. As a result, the Company has retrospectively recast the tables below to reflect its new segment structure. The Strayer University segment is comprised of Strayer University, including its programs offered through the Jack Welch Management Institute, and DevMountain and Hackbright Academy; the Capella University segment consists of Capella University and Sophia Learning.

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, 2017, 2018, and 2019 is presented in the following table:

​

​

​

​

​

​

​

​

​

​

​

​

    

2017

    

2018

    

2019

Revenues

 

​

  

 

​

  

 

​

  

Strayer University

​

$

454,851

​

$

477,839

​

$

536,969

Capella University

​

 

—

​

 

156,346

​

 

460,168

Consolidated revenues

​

$

454,851

​

$

634,185

​

$

997,137

Income (loss) from operations

​

 

  

​

 

  

​

 

  

Strayer University

​

$

56,576

​

$

62,294

​

$

103,409

Capella University

​

 

—

​

 

6,314

​

 

90,713

Amortization of intangible assets

​

 

—

​

 

(25,694)

​

 

(61,667)

Merger and integration costs

​

 

(11,879)

​

 

(45,745)

​

 

(21,923)

Fair value adjustments and impairment of intangible assets

​

 

7,512

​

 

(19,909)

​

 

—

Consolidated income (loss) from operations

​

$

52,209

​

$

(22,740)

​

$

110,532

​

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

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​

​

​

​

​

​

​

​

​

​

​

    

2017

    

2018

    

2019

Depreciation and amortization

 

​

  

 

​

  

 

​

  

Strayer University

​

$

18,733

​

$

20,427

​

$

23,956

Capella University

​

 

—

​

 

7,693

​

 

18,837

Amortization of intangible assets

​

 

—

​

 

25,694

​

 

61,667

Merger and integration costs

​

 

—

​

 

729

​

 

401

Consolidated depreciation and amortization

​

$

18,733

​

$

54,543

​

$

104,861

Stock-Based compensation

​

 

  

​

 

  

​

 

  

Strayer University

​

$

11,627

​

$

11,759

​

$

5,971

Capella University

​

 

—

​

 

1,531

​

 

5,822

Merger and integration costs

​

 

—

​

 

2,242

​

 

367

Consolidated stock-based compensation

​

$

11,627

​

$

15,532

​

$

12,160

​