Segment Reporting

9 Months Ended

Sep. 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 nine months ended September 30, 2019 and 2020 is presented in the following table (in thousands):

	For the three months ended September 30,				For the nine months ended September 30,
	2019		2020		2019		2020
Revenues
Strayer University	$	129,993	$	128,411	$	392,466	$	412,145
Capella University	111,754		110,615		340,899		348,014
Consolidated revenues	$	241,747	$	239,026	$	733,365	$	760,159
Income from operations
Strayer University	$	17,993	$	22,809	$	66,229	$	95,225
Capella University	18,924		14,974		65,039		68,684
Amortization of intangible assets	(15,417)		(15,417)		(46,251)		(46,251)
Merger and integration costs	(1,500)		(2,920)		(11,698)		(7,858)
Restructuring costs	—		(4,024)		—		(4,024)
Consolidated income from operations	$	20,000	$	15,422	$	73,319	$	105,776