Segment Reporting

12 Months Ended

Dec. 31, 2021

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 quality and 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 addressing employer’s needs for a well-educated workforce. CTU 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, 2021, students enrolled at CTU represented approximately 61% of our total enrollments. Approximately 96% of CTU’s students are enrolled in programs offered fully online. Through December 31, 2021 CTU’s campus-based and blended-format students pursued their education solely through CTU’s online platform as a result of the COVID-19 pandemic.

☐ The American InterContinental University System (AIUS or AIU System) is comprised of two universities: American InterContinental University (“AIU”) and Trident University International (“Trident” or “TUI”). AIUS is committed to providing quality and accessible higher education opportunities for a diverse student population, including adult and other non-traditional learners and the military community. AIUS places emphasis on the educational, professional and personal growth of each student. AIUS 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. As of December 31, 2021, students enrolled at AIUS represented approximately 39% of our total enrollments. Approximately 97% of AIUS’ students are enrolled in programs offered fully online. Throughout 2021, courses at AIUS’ ground-based campuses were gradually offered in-person, with substantially all classes being offered in-person by December 31, 2021. Students are offered the opportunity to return to campus-based instruction or remain virtual through synchronous virtual instruction.

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, 2021
CTU (2)	$	408,549	$	148,481		$	7,365	$	2,949	$	153,072
AIUS (3)		283,360		39,130			9,068		1,666		151,407
Corporate and Other (4)		1,125		(38,595	)		333		5,838		542,954
Total	$	693,034	$	149,016		$	16,766	$	10,453	$	847,433
For the Year Ended December 31, 2020
CTU	$	405,507	$	138,490		$	6,165	$	110	$	96,922
AIUS (3)		281,361		30,822			8,301		1,224		141,602
Corporate and Other (4)		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 (5)	$	392,263	$	108,602		$	5,397	$	580
AIUS (6)		235,374		16,413			3,388		411
Corporate and Other (4) (7)		67		(38,553	)		360		4,183
Total	$	627,704	$	86,462		$	9,145	$	5,174

__________________

(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)     CTU results of operations and total assets include the Hippo acquisition commencing on the September 10, 2021 date of acquisition and as of December 31, 2021.

(3)     AIUS results of operations and total assets include the DigitalCrafts acquisition commencing on the August 2, 2021 date of acquisition and as of December 31, 2021 and the Trident acquisition commencing on the March 2, 2020 date of acquisition and as of December 31, 2021 and 2020.

(4)     Corporate and Other includes results of operations and total assets for closed campuses. Revenue recorded within Corporate and Other relates to miscellaneous non-student related revenue.

(5)     CTU results of operations include a $18.6 million charge related to the FTC settlement for the year ended December 31, 2019.

(6)     AIUS results of operations include a $11.4 million charge related to the FTC settlement for the year ended December 31, 2019.  

(7)     Corporate and Other results of operations include a $7.1 million charge related to the Oregon arbitration matter for closed campuses for the year ended December 31, 2019.