Segment Reporting

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Strategic Education is an educational services company that provides access to high-quality education through campus-based and online post-secondary education offerings, as well as through programs to develop job-ready skills for high-demand markets. Strategic Education’s portfolio of companies is dedicated to closing the skills gap by placing adults on the most direct path between learning and employment. The Company merged DevMountain into Strayer University, which resulted in a change to the way management reviews financial information in 2020 and by which the Chief Operating Decision Maker evaluates performance and allocates the resources of the Company. Prior period segment disclosures have been recast to conform to the current period presentation.

The Company’s two operating segments, Strayer University and Capella University, meet the quantitative thresholds to qualify as reportable segments. The Strayer University segment is comprised of Strayer University, including its programs offered through the Jack Welch Management Institute and DevMountain, as well as Hackbright Academy. The Capella University segment consists of Capella University and Sophia Learning.

Revenue and operating expenses are generally directly attributable to the segments. Inter-segment revenues are not presented separately, as these amounts are immaterial. The Company’s Chief Operating Decision Maker does not evaluate operating segments using asset information.

A summary of financial information by reportable segment for the three and six months ended June 30, 2019 and 2020 is presented in the following table (in thousands):

	For the three months ended June 30,						For the six months ended June 30,
	2019			2020			2019			2020
Revenues
Strayer University	$	131,728		$	138,080		$	262,474		$	283,734
Capella University	113,382			117,751			229,144			237,399
Consolidated revenues	$	245,110		$	255,831		$	491,618		$	521,133
Income from operations
Strayer University	$	24,433		$	35,813		$	48,236		$	72,416
Capella University	21,599			27,173			46,115			53,710
Amortization of intangible assets	(15,417		)	(15,417		)	(30,834		)	(30,834		)
Merger and integration costs	(3,019		)	(1,174		)	(10,198		)	(4,938		)
Consolidated income from operations	$	27,596		$	46,395		$	53,319		$	90,354