Segment Reporting

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Segment Reporting

18. SEGMENT REPORTING

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 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. In addition, in November 2011, we completed the sale of our Istituto Marangoni schools in Milan, Paris and London. Accordingly, the results of operations for the Istituto Marangoni schools are reported within discontinued operations. All prior period results have been recast to reflect our reporting segments on a comparable basis. 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, as well as jobs training in the field of energy conservation.

International includes our INSEEC schools and IUM school located in France, the United Kingdom and Monaco, which collectively offer academic programs in the career-oriented disciplines of business studies, health education, advertising, 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.

Summary financial information by reporting segment is as follows:

	Revenue			Operating Income (Loss)			Depreciation and Amortization		Capital Expenditures		Total Assets(11)
	(In thousands)
For the Year Ended, December 31, 2011
CTU(2)(3)	$	431,588		$	112,626		$	4,044	$	5,067	$	74,648
AIU(3)		365,203			72,738			4,830		3,208		73,090
Health Education(4)		428,987			(89,633	)		20,260		29,731		149,444
Culinary Arts(5)		314,272			(64,984	)		21,520		3,646		215,318
Art & Design(6)		218,967			15,043			9,406		3,808		88,869
International		125,887			24,746			4,716		3,727		277,140
Corporate and Other(7)		(399	)		(31,374	)		19,736		28,643		417,182
Discontinued Operations										503		20,429
Total	$	1,884,505		$	39,162		$	84,512	$	78,333	$	1,316,120
For the Year Ended, December 31, 2010
CTU	$	465,315		$	133,881		$	4,592	$	1,748	$	52,566
AIU(8)		448,581			118,959			4,216		9,616		112,159
Health Education		441,608			52,028			13,789		28,380		283,558
Culinary Arts(9)		387,884			(66,813	)		18,763		23,406		339,848
Art & Design		245,395			29,173			9,989		6,292		91,514
International		101,013			16,334			4,748		2,664		215,667
Corporate and Other(10)		(623	)		(42,663	)		13,946		54,429		397,794
Discontinued Operations										748		79,854
Total	$	2,089,173		$	240,899		$	70,043	$	127,283	$	1,572,960
For the Year Ended, December 31, 2009
CTU	$	368,621		$	79,889		$	3,804	$	2,426
AIU		409,043			90,127			5,482		8,355
Health Education		362,692			42,072			10,462		24,930
Culinary Arts		332,236			14,873			18,441		4,452
Art & Design		240,530			25,065			10,432		7,511
International		89,793			15,107			2,728		17,170
Corporate and Other		(514	)		(41,919	)		13,225		6,990
Discontinued Operations										2,253
Total	$	1,802,401		$	225,214		$	64,574	$	74,087

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

(2) CTU recorded a $5.0 million charge for legal expense related to the potential reimbursements of government funds.

(3) 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.

(4) Health Education recorded a $94.7 million goodwill impairment charge.

(5) Culinary Arts recorded $94.1 million of goodwill and trade name impairment charges.

(6) Art & Design recorded $6.0 million of legal expense related to the potential settlement of a legal matter.

(7) Corporate and Other recorded a $7.0 million insurance recovery related to previously settled legal matters.

(8) AIU recorded $7.0 million of legal expense related to the settlements of legal matters.

(9) Culinary Arts recorded a $40.8 million charge related to the settlement of a legal matter. In addition, Culinary Arts recorded $69.2 million of goodwill and asset impairment charges, as well as $10.5 million of additional bad debt expense for increases in reserve rates related to our extended payment plan programs.

(10) Corporate and Other recorded 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.

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