Segment Reporting

12 Months Ended

Dec. 31, 2019

16. 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.

Our two reporting segments are described below.

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Colorado Technical University’s (CTU) mission is to provide industry relevant higher education to a diverse student population through innovative technology and experienced faculty, enabling the pursuit of personal and professional goals. CTU places a strong focus on providing degree programs to meet the needs of our non-traditional students for career advancement and of employers for a well-educated workforce. This University 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 December 31, 2019, students enrolled at CTU represented approximately 64% of our total enrollments. Approximately 94% of CTU’s enrollments are fully online.

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American InterContinental University’s (AIU) mission is to provide for the varying educational needs of a career-oriented, culturally diverse and geographically dispersed student body with the goal of preparing students academically, personally and professionally. AIU focuses on helping busy 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 December 31, 2019, students enrolled at AIU represented approximately 36% of our total enrollments. Approximately 94% of AIU’s enrollments are fully online.

We evaluate segment performance based on operating results. Adjustments to reconcile segment results to consolidated results are included under the caption “Corporate and Other,” which primarily includes unallocated corporate activity and eliminations, as well as results related to our closed campuses.

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

	Revenue		Operating Income (Loss)			Depreciation and Amortization		Capital Expenditures		Total Assets
For the Year Ended December 31, 2019 ⁽¹⁾
CTU ⁽³⁾	$	392,263	$	108,602		$	5,397	$	580	$	100,414
AIU ⁽⁴⁾		235,374		16,413			3,388		411		104,747
Total University Group		627,637		125,015			8,785		991		205,161
Corporate and Other ^{(2) (5)}		67		(38,553	)		360		4,183		393,904
Discontinued Operations											81
Total	$	627,704	$	86,462		$	9,145	$	5,174	$	599,146
For the Year Ended December 31, 2018 ⁽¹⁾
CTU	$	375,770	$	111,623		$	5,310	$	168	$	76,713
AIU		204,920		8,176			3,582		201		59,133
Total University Group		580,690		119,799			8,892		369		135,846
Corporate and Other ^{(2) (6)}		606		(48,501	)		502		6,363		346,469
Discontinued Operations											178
Total	$	581,296	$	71,298		$	9,394	$	6,732	$	482,493
For the Year Ended December 31, 2017 ⁽¹⁾
CTU	$	371,325	$	109,202		$	2,047	$	74
AIU		198,251		8,401			1,752		79
Total University Group		569,576		117,603			3,799		153
Corporate and Other ^{(2) (7)}		26,859		(83,467	)		10,191		6,179
Total	$	596,435	$	34,136		$	13,990	$	6,332

(1)

The statement of income (loss) and comprehensive income (loss) balances including revenue, operating income (loss), depreciation and amortization and capital expenditures are presented above on a continuing operations basis. Total assets are presented on a consolidated basis including continuing and discontinued operations and do not include intercompany receivable or payable activity between institutions and corporate and investments in subsidiaries.

(2) Corporate and Other includes results of operations for closed campuses.

For the year ended December 31, 2019, segment results included:

(3) CTU: a $18.6 million charge related to the FTC settlement.

(4) AIU: a $11.4 million charge related to the FTC settlement.

(5) Corporate and Other: a charge of $7.1 million for the Oregon arbitrations matter related to previously closed campuses.

For the year ended December 31, 2018, segment results included:

(6)	Corporate and Other: $14.6 million of charges related to significant legal settlements for the Surrett and multi-state AG matters and $9.4 million of charges related to remaining lease obligations of vacated space.

For the year ended December 31, 2017, segment results included:

(7)	Corporate and Other: $6.5 million charge related to a significant legal settlement for the Surrett matter and $14.8 million of charges related to remaining lease obligations of vacated space.