Segment Reporting

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Reporting

11. 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. As of March 31, 2017, our four segments are:

University Group:

☐ Colorado Technical University (CTU) places a strong focus on providing industry-relevant degree programs to meet the needs of our 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 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 March 31, 2017, students enrolled at CTU represented approximately 60% of our total enrollments. Approximately 92% of CTU’s enrollments are fully online.

☐ American InterContinental University (AIU) focuses on helping busy professionals get the degree they need to move forward in their career as efficiently as possible and collectively 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 March 31, 2017, students enrolled at AIU represented approximately 35% of our total enrollments. Approximately 93% of AIU’s enrollments are fully online.

Career Schools Group:

         Campuses included in our Career School segments include those which are currently being taught out or those 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. Campuses in teach-out employ a gradual teach-out process, enabling them to continue to operate while current students have a reasonable opportunity to complete their course of study; they no longer enroll new students.

☐ Culinary Arts includes our Le Cordon Bleu institutions in North America (“LCB”) which offer hands-on educational programs in the career-oriented disciplines of culinary arts and patisserie and baking in the commercial-grade kitchens of Le Cordon Bleu. These campuses are all expected to complete their teach-out activities by the end of 2017. As of March 31, 2017, students enrolled at LCB represented approximately 4% of our total enrollments.

☐ Transitional Group includes our non-LCB campuses which are in teach-out or those which have been closed or sold subsequent to January 1, 2015. Our Transitional Group offers academic programs in career-oriented disciplines complemented by certain programs in business studies and information technology. The campuses within the Transitional Group that have not yet ceased operations as of March 31, 2017 will complete their teach-outs on varying dates through 2018. As of March 31, 2017, students enrolled at the Transitional Group campuses represented approximately 1% of our total enrollments. During the first quarter of 2017, the Company completed the teach-out of two Transitional Group campuses: Sanford-Brown Mendota Heights and Sanford-Brown Houston, which continue to be reported as part of the Transitional Group as of March 31, 2017.

Summary financial information by reporting segment is as follows (dollars in thousands):

	For the Quarter Ended March 31,
	Revenue										Operating Income (Loss)
	2017		% of Total			2016		% of Total			2017			2016
CTU	$	94,035		58.0	%	$	91,966		46.2	%	$	23,020		$	19,237
AIU		54,253		33.5	%		52,973		26.6	%		4,656			1,907
Total University Group		148,288		91.5	%		144,939		72.9	%		27,676			21,144
Corporate and Other		-	NM				-	NM				(4,549	)		(5,812	)
Subtotal		148,288		91.5	%		144,939		72.9	%		23,127			15,332
Culinary Arts		10,289		6.3	%		38,623		19.4	%		(4,259	)		3,106
Transitional Group		3,532		2.2	%		15,324		7.7	%		(9,087	)		(11,459	)
Total	$	162,109		100.0	%	$	198,886		100.0	%	$	9,781		$	6,979

	Total Assets as of  (1)
	March 31, 2017		December 31, 2016
CTU	$	72,828	$	76,143
AIU		67,834		66,081
Total University Group		140,662		142,224
Corporate and Other		290,784		334,945
Subtotal		431,446		477,169
Culinary Arts		54,688		57,443
Transitional Group		17,450		18,736
Discontinued Operations		6,145		6,253
Total	$	509,729	$	559,601

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