Segment and Geographic Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Reporting and Geographic Information

Segment and Geographic Information

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. In 2020, the Company merged DevMountain into Strayer University and acquired ANZ, which resulted in a change to the way management reviews financial information 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 three operating segments, Strayer University, Capella University, and Australia/New Zealand, 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. The Australia/New Zealand segment is comprised of Torrens University, Think Education, and Media Design School.

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 (in thousands) for the years ended December 31, 2018, 2019, and 2020 is presented in the following table:

	2018		2019		2020
Revenues
Strayer University	$	477,839	$	536,969	$	537,633
Capella University	156,346		460,168		466,639
Australia/New Zealand	—		—		23,381
Consolidated revenues	$	634,185	$	997,137	$	1,027,653
Income (loss) from operations
Strayer University	$	62,294	$	103,409	$	120,398
Capella University	6,314		90,713		92,638
Australia/New Zealand	—		—		(13,275)
Amortization of intangible assets	(25,694)		(61,667)		(64,225)
Merger and integration costs	(45,745)		(21,923)		(13,770)
Restructuring costs	—		—		(12,382)
Impairment of intangible assets	(19,909)		—		—
Consolidated income (loss) from operations	$	(22,740)	$	110,532	$	109,384

The following table presents a schedule of significant non-cash items included in segment income (loss) from operations by reportable segment (in thousands):

	2018		2019		2020
Depreciation and amortization
Strayer University	$	20,427	$	23,956	$	24,570
Capella University	7,693		18,837		18,080
Australia/New Zealand	—		—		1,930
Amortization of intangible assets	25,694		61,667		64,225
Merger and integration costs	729		401		—
Restructuring costs	—		—		349
Consolidated depreciation and amortization	$	54,543	$	104,861	$	109,154
Stock-Based compensation
Strayer University	$	11,720	$	5,970	$	7,292
Capella University	1,570		5,823		7,272
Australia/New Zealand	—		—		46
Merger and integration costs	2,242		367		—
Consolidated stock-based compensation	$	15,532	$	12,160	$	14,610

Geographic Information

The Company's long-lived assets are comprised of Property and equipment, net and Right-of-use lease assets. The Company's long-lived assets by geographic area as of December 31, 2019 and 2020 were as follows (in thousands):

	December 31, 2019		December 31, 2020
United States	$	201,807	$	188,343
International	—		91,198