Segment Reporting

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Reporting

18. 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 an accredited 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 business plan.

Our two reporting segments are described below.

☐ Colorado Technical University (CTU) is committed to providing industry-relevant higher education to a diverse student population through innovative technology and experienced faculty, enabling the pursuit of personal and professional goals. CTU is focused on serving adult, non-traditional students seeking career advancement, as well as the employer’s needs for a well-educated workforce. The university offers academic programs in the career-oriented disciplines of business and management, nursing, healthcare management, computer science, engineering, information systems and technology, project management, cybersecurity and criminal justice. Students pursue their degrees through fully-online programs, local campuses and blended formats, which combine campus-based and online education. As of December 31, 2020, students enrolled at CTU represented approximately 58% 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 through CTU’s online platform as a result of the COVID-19 pandemic.

☐ The American InterContinental University System (AIU) is committed to providing quality and accessible higher education opportunities for a diverse student population, including adult or other non-traditional learners and the military community. AIU places emphasis on the educational, professional and personal growth of each student, and pursues this aim with a commitment to institutional integrity and ethics. AIU offers academic programs in the career-oriented disciplines of business studies, information technologies, education, health sciences 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 December 31, 2020, students enrolled at AIU represented approximately 42% 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 through AIU’s online platform as a result of the COVID-19 pandemic.

We evaluate segment performance based on operating results. Adjustments to reconcile segment results to consolidated results are included under the caption “Corporate and Other,” which primarily includes unallocated corporate activity and eliminations, as well as results related to our closed campuses.

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

	Revenue		Operating Income (Loss)			Depreciation and Amortization		Capital Expenditures		Total Assets (1)
For the Year Ended December 31, 2020
CTU	$	405,507	$	138,490		$	6,165	$	110	$	96,922
AIU (2)		281,361		30,822			8,301		1,224		141,602
Total University Group		686,868		169,312			14,466		1,334		238,524
Corporate and Other		446		(26,378	)		320		8,434		482,993
Total	$	687,314	$	142,934		$	14,786	$	9,768	$	721,517
For the Year Ended December 31, 2019
CTU (3)	$	392,263	$	108,602		$	5,397	$	580	$	100,414
AIU (4)		235,374		16,413			3,388		411		104,747
Total University Group		627,637		125,015			8,785		991		205,161
Corporate and Other (5)		67		(38,553	)		360		4,183		393,985
Total	$	627,704	$	86,462		$	9,145	$	5,174	$	599,146
For the Year Ended December 31, 2018
CTU	$	375,770	$	111,623		$	5,310	$	168
AIU		204,920		8,176			3,582		201
Total University Group		580,690		119,799			8,892		369
Corporate and Other (6)		606		(48,501	)		502		6,363
Total	$	581,296	$	71,298		$	9,394	$	6,732

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(1) Total assets are presented on a consolidated basis and do not include intercompany receivable or payable activity between institutions and corporate and investments in subsidiaries.

(2)      AIU results of operations and total assets include the Trident acquisition commencing on the March 2, 2020 date of acquisition and as of December 31, 2020.

For the year ended December 31, 2019, segment results included:

(3)     CTU: a $18.6 million charge related to the FTC settlement.

(4)     AIU: a $11.4 million charge related to the FTC settlement.

(5)     Corporate and Other: a $7.1 million charge related to the Oregon arbitration matter for closed campuses.

For the year ended December 31, 2018, segment results included:

(6) Corporate and Other: $14.6 million of charges related to significant legal settlements for the Surrett and multi-state AG matters and $9.4 million of charges related to remaining lease obligations for vacated space.