Segment Reporting

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Reporting

14. 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, 2020, our two segments are:

♦ 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 September 30, 2020, students enrolled at CTU represented approximately 56% of our total enrollments. Approximately 95% of CTU’s students are enrolled in programs offered fully online. In March 2020, CTU’s campus-based and blended-format students also began pursuing their education solely through CTU’s online platform as a result of the COVID-19 pandemic.

♦ The American InterContinental University System’s (AIU; formerly referred to as American InterContinental University) 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. AIU now also includes results of operations and student enrollments related to the Trident acquisition commencing on the March 2, 2020 date of acquisition. As of September 30, 2020, students enrolled at AIU represented approximately 44% of our total enrollments. Approximately 97% of AIU’s students are enrolled in programs offered fully online. In March 2020, AIU’s campus-based and blended-format students also began pursuing their education solely through AIU’s online platform as a result of the COVID-19 pandemic.

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

	For the Quarter Ended September 30,
	Revenue										Operating Income (Loss)
	2020		% of Total			2019		% of Total			2020			2019
CTU	$	98,985		58.5	%	$	96,038		62.0	%	$	32,993		$	29,926
AIU (1)		70,048		41.4	%		58,907		38.0	%		5,513			7,341
Total University Group		169,033		99.9	%		154,945		100.0	%		38,506			37,267
Corporate and Other (2)		93	NM				14	NM				(6,432	)		(12,973	)
Total	$	169,126		100.0	%	$	154,959		100.0	%	$	32,074		$	24,294

	For the Year to Date Ended September 30,
	Revenue										Operating Income (Loss)
	2020		% of Total			2019		% of Total			2020			2019
CTU (3)	$	302,766		58.7	%	$	289,650		61.7	%	$	100,688		$	71,730
AIU (1) (4)		213,279		41.3	%		179,559		38.3	%		25,365			11,436
Total University Group		516,045		100.0	%		469,209		100.0	%		126,053			83,166
Corporate and Other (2)		110	NM				44		0.0	%		(19,308	)		(28,717	)
Total	$	516,155		100.0	%	$	469,253		100.0	%	$	106,745		$	54,449

	Total Assets as of  (5)
	September 30, 2020		December 31, 2019
CTU	$	98,220	$	100,414
AIU (1)		136,213		104,747
Total University Group		234,433		205,161
Corporate and Other (2)		449,237		393,904
Discontinued Operations		81		81
Total	$	683,751	$	599,146

(1) AIU results of operations and total assets include the Trident acquisition commencing on the March 2, 2020 date of acquisition and as of September 30, 2020.

(2) Corporate and Other includes results of operations and total assets for closed campuses. An expense of $7.1 million was recorded for closed campuses related to the Oregon arbitration matter for the quarter and year to date ended September 30, 2019.

(3) An expense of $18.6 million was recorded within CTU related to the FTC settlement for the year to date ended September 30, 2019.

(4) An expense of $11.4 million was recorded within AIU related to the FTC settlement for the year to date ended September 30, 2019.

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