We analyze performance and make decisions based on the allocation of resources, and as a result, in accordance with FASB ASC Topic 280—Segment Reporting, we determined that the following reporting segments would be reported as of January 1, 2011: CTU, AIU, Health Education, Culinary Arts, Art & Design and International. This change in reporting segments was a result of changes in the organizational structure. This resulted in no change to our previously reported Health Education, Culinary Arts and International segments. Our previously reported University segment has been divided into three components: CTU, AIU and Art & Design. As a result of the organizational restructure, we now have six reporting segments. All prior period results have been recast to reflect our reporting segments as of September 30, 2011. The reporting segments are described below.

CTU includes our Colorado Technical University schools. These schools collectively offer academic programs in the career-oriented disciplines of business studies, information systems and technologies, criminal justice, computer science and engineering, and health sciences in an online, classroom or laboratory setting.

AIU includes our American InterContinental University schools. These schools collectively offer academic programs in the career-oriented disciplines of business studies, information technologies, criminal justice and design in an online, classroom or laboratory setting.

Health Education includes our Sanford-Brown schools, along with Brown College, Briarcliffe College and Missouri College. These schools collectively offer academic programs in the career-oriented disciplines of health education, complemented by certain programs in business studies and information technology in a classroom, laboratory or online setting.

Culinary Arts includes our LCB schools that collectively offer culinary arts programs in the career-oriented disciplines of culinary arts, baking and pastry arts, and hotel and restaurant management in a classroom, kitchen or online setting.

Art & Design includes IADT, Harrington College of Design, Collins College and Brooks Institute schools. These schools offer academic programs primarily in the career-oriented disciplines of fashion design, game design, graphic design, interior design, film and video production, photography and visual communications in a classroom, laboratory or online setting.

International includes our INSEEC schools, IUM, and Istituto Marangoni schools located in France, Italy, the United Kingdom and Monaco, which collectively offer academic programs in the career-oriented disciplines of business studies, health education, fashion and design, visual communications and technologies and luxury goods and services in a classroom or laboratory setting.

We evaluate segment performance based on operating income. Adjustments to reconcile segment results to consolidated results are included under the caption "Corporate and Other," which primarily includes unallocated corporate activity and eliminations.


	Revenue						Operating Income (Loss)
	For the Quarters Ended September 30,						For the Quarters Ended September 30,
	2011			2010			2011			2010
	(Dollars in thousands)
CTU ⁽¹⁾	$	100,477		$	116,311		$	16,755		$	32,414
AIU⁽²⁾		85,787			113,119			12,430			23,252
Health Education		102,195			110,421			(3,632	)		12,820
Culinary Arts⁽³⁾		73,686			108,305			3,800			(23,867	)
Art & Design		49,686			61,082			2,557			9,158
International		19,567			15,061			(7,151	)		(6,740	)
Corporate and Other		(84	)		(157	)		(8,965	)		(7,530	)

Total	$	431,314		$	524,142		$	15,794		$	39,507


	Revenue						Operating Income (Loss)
	For the Years to Date Ended September 30,						For the Years to Date Ended September 30,
	2011			2010			2011			2010
CTU ⁽¹⁾	$	330,603		$	342,079		$	87,016		$	94,278
AIU⁽²⁾		288,092			349,934			66,384			96,054
Health Education		328,329			322,256			11,379			35,434
Culinary Arts⁽³⁾		248,718			293,881			30,741			(3,267	)
Art & Design		170,962			186,270			20,627			22,663
International		105,509			87,378			12,371			9,689
Corporate and Other ⁽⁴⁾		(345	)		(491	)		(16,809	)		(29,146	)

Total	$	1,471,868		$	1,581,307		$	211,709		$	225,705


							Total Assets as of ⁽⁵⁾
							September 30, 2011			December 31, 2010
							(Dollars in thousands)
CTU ⁽⁶⁾							$	74,992		$	52,566
AIU ⁽⁶⁾								78,524			112,159
Health Education								251,770			283,558
Culinary Arts								324,051			339,848
Art & Design								80,170			91,514
International								281,105			269,723
Corporate and Other								418,012			396,714
Discontinued Operations								23,712			25,797

Total							$	1,532,336		$	1,571,879

(1)	During the third quarter 2011, CTU recorded an accrual of $5.0 million within administrative expense for an estimate for potential reimbursements of government funds.

(2)	During the third quarter 2010, AIU recorded $7.0 million of legal expense related to the settlements of legal matters.

(3)

During the third quarter 2010, Culinary Arts recorded a $40.0 million charge related to the settlement of a legal matter. For the first and third quarters 2010, Culinary Arts recorded $3.2 million and $7.3 million, respectively, of additional bad debt expense for increases in reserve rates related to our extended payment plan programs.

(4)

Year to date September 30, 2011 includes a $7.0 million insurance recovery related to previously settled legal matters. The prior year to date included a $2.4 million lease termination charge related to our former corporate headquarters and a $4.1 million charge for an increase in the allowance for doubtful accounts related to our previously terminated recourse loan program.

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

(6)	During the first quarter of 2011 in conjunction with the segment reorganization, $27.9 million of the goodwill balance attributable to the former University reporting unit was reclassified from AIU to CTU, in accordance with FASB ASC Topic 350—Intangibles—Goodwill and Other.