Segment Information

3 Months Ended

Mar. 31, 2020

The Company has two operating segments that are managed in the following reportable segments:

•American Public Education Segment, or APEI Segment; and

•Hondros College of Nursing Segment, or HCN Segment.

In accordance with FASB ASC 280, Segment Reporting, the chief operating decision-maker has been identified as the Company’s Chief Executive Officer. The Company’s Chief Executive Officer reviews operating results to make decisions about allocating resources and assessing performance for the APEI and HCN Segments.

A summary of financial information by reportable segment is as follows (in thousands):



	Three Months Ended March 31,
	2020			2019
	(Unaudited)
Revenue:
American Public Education Segment	$	67,094		$	65,721
Hondros College of Nursing Segment	7,539			7,747
Intersegment elimination	(17		)	(27		)
Total Revenue	$	74,616		$	73,441
Depreciation and amortization:
American Public Education Segment	$	3,194		$	3,782
Hondros College of Nursing Segment	144			269
Total Depreciation and amortization	$	3,338		$	4,051
Income (loss) from operations before interest income and income taxes:
American Public Education Segment	$	3,577		$	7,522
Hondros College of Nursing Segment	(885		)	(6,146		)
Intersegment elimination	1			6
Total income from operations before interest income and income taxes	$	2,693		$	1,382
Interest income, net:
American Public Education Segment	$	690		$	1,047
Hondros College of Nursing Segment	12			6
Total Interest income, net	$	702		$	1,053
Income tax expense (benefit):
American Public Education Segment	$	1,215		$	1,666
Hondros College of Nursing Segment	(241		)	(1,729		)
Total Income tax expense (benefit)	$	974		$	(63	)
Capital expenditures:
American Public Education Segment	$	1,745		$	1,345
Hondros College of Nursing Segment	124			240
Total Capital expenditures	$	1,869		$	1,585

The APEI Segment charges the HCN Segment for the value of courses taken by HCN Segment employees at APUS. The intersegment elimination represents the elimination of this intersegment revenue in consolidation.

A summary of the Company’s consolidated assets by reportable segment is as follows (in thousands):



	As of March 31, 2020		As of December 31, 2019
	(Unaudited)
Assets:
American Public Education Segment	$	295,844	$	305,896
Hondros College of Nursing Segment	49,415		49,001
Total Assets	$	345,259	$	354,897