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Segment Reporting

9 Months Ended

Sep. 30, 2019

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 September 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 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 September 30, 2019, students enrolled at CTU represented approximately 62% of our total enrollments. Approximately 94% 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 September 30, 2019, students enrolled at AIU represented approximately 38% 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):

	For the Quarter Ended September 30,

	Revenue										Operating Income (Loss)
	2019		% of Total			2018		% of Total			2019			2018
CTU	$	96,038		62.0	%	$	93,115		63.9	%	$	29,926		$	26,261
AIU		58,907		38.0	%		52,504		36.0	%		7,341			1,070
Total University Group		154,945		100.0	%		145,619		100.0	%		37,267			27,331
Corporate and Other ⁽¹⁾		14	NM				71		0.0	%		(12,973	)		(8,048	)
Total	$	154,959		100.0	%	$	145,690		100.0	%	$	24,294		$	19,283

	For the Year to Date Ended September 30,
	Revenue										Operating Income (Loss)
	2019		% of Total			2018		% of Total			2019			2018
CTU ⁽²⁾	$	289,650		61.7	%	$	280,988		64.5	%	$	71,730		$	80,562
AIU ⁽³⁾		179,559		38.3	%		154,204		35.4	%		11,436			3,621
Total University Group		469,209		100.0	%		435,192		99.9	%		83,166			84,183
Corporate and Other ⁽¹⁾		44	NM				599		0.1	%		(28,717	)		(33,068	)
Total	$	469,253		100.0	%	$	435,791		100.0	%	$	54,449		$	51,115

	Total Assets as of⁽⁴⁾
	September 30, 2019		December 31, 2018
CTU	$	100,527	$	76,713
AIU		79,039		59,133
Total University Group		179,566		135,846
Corporate and Other ⁽¹⁾		419,063		346,469
Discontinued Operations		178		178
Total	$	598,807	$	482,493

(1)	Corporate and Other includes results of operations for closed campuses. A reserve of $7.1 million was recorded during the current quarter within Corporate and Other for the Oregon arbitration matter related to previously closed campuses.

(2)	A reserve of $18.6 million was recorded within CTU related to the FTC settlement during the year to date ended September 30, 2019.

(3)	A reserve of $11.4 million was recorded within AIU related to the FTC settlement during the year to date ended September 30, 2019.

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