Segment Reporting |
12. 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 is comprised of a postsecondary education institution that offers a variety of academic programs. These segments are organized by key market segments and to enhance brand focus within each segment to more effectively execute our strategic plan. As of June 30, 2019, our two segments are:
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♦ |
Colorado Technical University (CTU) places a strong focus on providing industry-relevant degree programs to meet the needs of our non-traditional students for career advancement and of employers for a well-educated workforce and offers |
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academic programs in the career-oriented disciplines of business studies, nursing, computer science, engineering, information systems and technology, cybersecurity, criminal justice 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 June 30, 2019, students enrolled at CTU represented approximately 67% of our total enrollments. Approximately 93% of CTU’s enrollments are fully online. |
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♦ |
American InterContinental University (AIU) focuses on helping non-traditional students get the degree they need to move forward in their career as efficiently as possible and 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 June 30, 2019, students enrolled at AIU represented approximately 33% of our total enrollments. Approximately 94% of AIU’s enrollments are fully online. |
Summary financial information by reporting segment is as follows (dollars in thousands):
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For the Quarter Ended June 30, |
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Revenue |
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Operating Income (Loss) |
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2019 |
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% of Total |
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2018 |
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% of Total |
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2019 |
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2018 |
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CTU (1) |
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$ |
96,555 |
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61.7 |
% |
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$ |
93,266 |
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|
65.7 |
% |
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$ |
12,113 |
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$ |
27,116 |
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AIU (2) |
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59,873 |
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38.3 |
% |
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48,579 |
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34.2 |
% |
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(4,217 |
) |
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(1,585 |
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Total University Group |
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156,428 |
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100.0 |
% |
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141,845 |
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99.9 |
% |
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7,896 |
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|
25,531 |
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Corporate and Other (3) |
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13 |
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NM |
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|
191 |
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0.1 |
% |
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(7,712 |
) |
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(14,228 |
) |
Total |
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$ |
156,441 |
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|
|
100.0 |
% |
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$ |
142,036 |
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|
|
100.0 |
% |
|
$ |
184 |
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$ |
11,303 |
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For the Year to Date Ended June 30, |
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Revenue |
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Operating Income (Loss) |
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2019 |
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% of Total |
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2018 |
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% of Total |
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2019 |
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2018 |
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CTU (1) |
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$ |
193,612 |
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61.6 |
% |
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$ |
187,873 |
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|
64.8 |
% |
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$ |
41,804 |
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$ |
54,301 |
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AIU (2) |
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120,652 |
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38.4 |
% |
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|
101,700 |
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35.1 |
% |
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|
4,095 |
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|
2,551 |
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Total University Group |
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314,264 |
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100.0 |
% |
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289,573 |
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99.8 |
% |
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|
45,899 |
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|
56,852 |
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Corporate and Other (3) |
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30 |
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NM |
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|
528 |
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0.2 |
% |
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(15,744 |
) |
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(25,020 |
) |
Total |
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$ |
314,294 |
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|
100.0 |
% |
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$ |
290,101 |
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|
100.0 |
% |
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$ |
30,155 |
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$ |
31,832 |
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Total Assets as of (4) |
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June 30, 2019 |
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December 31, 2018 |
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CTU |
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$ |
97,655 |
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$ |
76,713 |
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AIU |
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|
65,292 |
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|
59,133 |
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Total University Group |
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162,947 |
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135,846 |
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Corporate and Other (3) |
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398,554 |
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346,469 |
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Discontinued Operations |
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298 |
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|
178 |
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Total |
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$ |
561,799 |
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$ |
482,493 |
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(1) |
A reserve of $18.6 million was recorded within CTU related to the FTC settlement during the quarter ended June 30, 2019. |
(2) |
A reserve of $11.4 million was recorded within AIU related to the FTC settlement during the quarter ended June 30, 2019. |
(3) |
Corporate and Other includes results of operations for closed campuses. |
(4) |
Total assets do not include intercompany receivable or payable activity between institutions and corporate and investments in subsidiaries. |
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