Segment Reporting

9 Months Ended

Sep. 30, 2018

Segment Reporting

Segment Reporting

14. Segment Reporting

Strategic Education is an educational services company that provides access to high-quality education through campus-based and online post-secondary degree programs and job-ready skills offerings in 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.

Two of the Company’s operating segments that meet the quantitative thresholds to qualify as reportable segments are the Strayer and Capella segments. The Strayer segment includes Strayer University and the Jack Welch Management Institute; the Capella segment consists of Capella University. None of the Company’s other operating segments individually meet the quantitative thresholds to qualify as reportable segments; therefore, these other operating segments are combined and presented below as Non-Degree Programs. The Non-Degree Programs reportable segment is comprised of the DevMountain, LLC (“DevMountain”), Hackbright Academy, Inc. (“Hackbright”), NYCDA, and Sophia Learning, LLC businesses.

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 three and nine months ended September 30, 2017 and 2018 is presented in the following table.

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2017		2018		2017		2018
Revenues
Strayer	$	107,321	$	114,471	$	332,094	$	343,644
Capella		—		43,792		—		43,792
Non-Degree Programs		1,191		2,682		4,050		4,646
Consolidated Revenues	$	108,512	$	160,945	$	336,144	$	392,082
Income (loss) from operations
Strayer	$	8,069	$	11,904	$	43,072	$	44,215
Capella		—		(14,326)		—		(14,326)
Non-Degree Programs		(1,949)		(1,688)		(6,649)		(4,131)
Amortization of intangible assets		—		(10,278)		—		(10,278)
Merger costs		(3,414)		(29,620)		(3,414)		(37,791)
Fair value adjustments and impairment of intangible assets		5,518		(13,119)		7,512		(19,304)
Consolidated income (loss) from operations	$	8,224	$	(57,127)	$	40,521	$	(41,615)