Exhibit 99.1
Career Education Corporation
Reconciliation of Segment Reporting
For the Years Ended December 31, 2009 and 2008
Unaudited
(in millions)
Total Revenue for the Year Ended December 31, | ||||||||||||||||||||||||||||||||
2009 | Adjustments | 2009 | 2008 | Adjustments | 2008 | |||||||||||||||||||||||||||
SBU | As Reported | Organizational Realignment (1) | Shared Services Allocation(2) | Recasted | As Reported | Organizational Realignment (1) | Shared Services Allocation (2) | Recasted | ||||||||||||||||||||||||
University(1) | $ | 811 | $ | 207 | $ | — | $ | 1,018 | $ | 702 | $ | 205 | $ | — | $ | 907 | ||||||||||||||||
Culinary Arts | 332 | — | — | 332 | 328 | — | — | 328 | ||||||||||||||||||||||||
Health Education(1) | 306 | 57 | — | 363 | 249 | 59 | — | 308 | ||||||||||||||||||||||||
Art & Design(1) | 264 | (264 | ) | — | — | 264 | (264 | ) | — | — | ||||||||||||||||||||||
International | 121 | — | — | 121 | 108 | — | — | 108 | ||||||||||||||||||||||||
Transitional Schools (3) | 3 | — | — | 3 | 10 | — | — | 10 | ||||||||||||||||||||||||
Corporate & other | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 1,837 | $ | — | $ | — | $ | 1,837 | $ | 1,661 | $ | — | $ | — | $ | 1,661 | ||||||||||||||||
Total Operating Income for the Year Ended December 31, | ||||||||||||||||||||||||||||||||
2009 | Adjustments | 2009 | 2008 | Adjustments | 2008 | |||||||||||||||||||||||||||
SBU | As Reported | Organizational Realignment(1) | Shared Services Allocation(2) | Recasted | As Reported | Organizational Realignment(1) | Shared Services Allocation (2) | Recasted | ||||||||||||||||||||||||
University(1) | $ | 178 | $ | 29 | $ | (12 | ) | $ | 195 | $ | 123 | $ | 25 | $ | (21 | ) | $ | 127 | ||||||||||||||
Culinary Arts | 18 | — | (3 | ) | 15 | (6 | ) | — | — | (6 | ) | |||||||||||||||||||||
Health Education(1) | 55 | 4 | (17 | ) | 42 | 21 | 3 | (10 | ) | 14 | ||||||||||||||||||||||
Art & Design(1) | 33 | (33 | ) | — | — | 28 | (28 | ) | — | — | ||||||||||||||||||||||
International | 19 | — | — | 19 | 19 | — | — | 19 | ||||||||||||||||||||||||
Transitional Schools (3) | (10 | ) | — | (1 | ) | (11 | ) | (6 | ) | — | — | (6 | ) | |||||||||||||||||||
Corporate & other | (70 | ) | — | 33 | (37 | ) | (70 | ) | — | 31 | (39 | ) | ||||||||||||||||||||
Total | $ | 223 | $ | — | $ | — | $ | 223 | $ | 109 | $ | — | $ | — | $ | 109 | ||||||||||||||||
(1) | Schools previously organized within the Art & Design reporting segment have been realigned as a component of the University reporting segment, with the exception of Brown College which was realigned within the Health Education reporting segment. In addition, Briarcliffe College was realigned from the University reporting segment to the Health Education reporting segment. |
(2) | Reflects the impact to segment operating income resulting from the change in methodology utilized to allocate the cost of shared and corporate services to the reporting segments. This change was a result of a detailed review of the shared services provided to our campuses. The new methodology allocates costs based on usage and consumption factors. |
(3) | AIU-Los Angeles, CA is the only school remaining in Transitional Schools. |
Career Education Corporation
Recast Quarterly Segment Reporting
For the Years Ended December 31, 2009 and 2008
Unaudited
(in millions)
Total Revenue for the 2009 Quarters Ended | Total Revenue for the 2008 Quarters Ended | |||||||||||||||||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | Full Year | March 31 | June 30 | September 30 | December 31 | Full Year | |||||||||||||||||||||||||||||||
University(1) | $ | 239 | $ | 250 | $ | 260 | $ | 269 | $ | 1,018 | $ | 232 | $ | 226 | $ | 221 | $ | 228 | $ | 907 | ||||||||||||||||||||
Culinary Arts | 75 | 74 | 92 | 91 | 332 | 87 | 78 | 86 | 77 | 328 | ||||||||||||||||||||||||||||||
Health Education (1) | 83 | 87 | 90 | 103 | 363 | 78 | 73 | 74 | 83 | 308 | ||||||||||||||||||||||||||||||
International | 35 | 26 | 15 | 45 | 121 | 34 | 25 | 13 | 36 | 108 | ||||||||||||||||||||||||||||||
Transitional Schools (3) | 1 | 1 | 1 | — | 3 | 4 | 3 | 2 | 1 | 10 | ||||||||||||||||||||||||||||||
Corporate & other | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
$ | 433 | $ | 438 | $ | 458 | $ | 508 | $ | 1,837 | $ | 435 | $ | 405 | $ | 396 | $ | 425 | $ | 1,661 | |||||||||||||||||||||
Operating Income for the 2009 Quarters Ended(2) | Operating Income for the 2008 Quarters Ended(2) | |||||||||||||||||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | Full Year | March 31 | June 30 | September 30 | December 31 | Full Year | |||||||||||||||||||||||||||||||
University(1) | $ | 43 | $ | 46 | $ | 45 | $ | 61 | $ | 195 | $ | 30 | $ | 28 | $ | 25 | $ | 44 | $ | 127 | ||||||||||||||||||||
Culinary Arts | (1 | ) | (3 | ) | 7 | 12 | 15 | 6 | — | (11 | ) | (1 | ) | (6 | ) | |||||||||||||||||||||||||
Health Education (1) | 10 | 7 | 9 | 16 | 42 | 3 | 1 | 1 | 9 | 14 | ||||||||||||||||||||||||||||||
International | 11 | 3 | (4 | ) | 9 | 19 | 13 | 3 | (5 | ) | 8 | 19 | ||||||||||||||||||||||||||||
Transitional Schools (3) | (2 | ) | (1 | ) | (2 | ) | (6 | ) | (11 | ) | (4 | ) | (1 | ) | — | (1 | ) | (6 | ) | |||||||||||||||||||||
Corporate & other | (10 | ) | (15 | ) | (17 | ) | 5 | (4) | (37 | ) | (12 | ) | (9 | ) | (9 | ) | (9 | ) | (39 | ) | ||||||||||||||||||||
$ | 51 | $ | 37 | $ | 38 | $ | 97 | $ | 223 | $ | 36 | $ | 22 | $ | 1 | $ | 50 | $ | 109 | |||||||||||||||||||||
(1) | Schools previously organized within the Art & Design reporting segment have been realigned as a component of the University reporting segment, with the exception of Brown College which was realigned within the Health Education reporting segment. In addition, Briarcliffe College was realigned from the University reporting segment to the Health Education reporting segment. |
(2) | Reflects the impact to segment operating income resulting from the change in methodology utilized to allocate the cost of shared and corporate services to the reporting segments. This change was a result of a detailed review of the shared services provided to our campuses. The new methodology allocates costs based on usage and consumption factors. |
(3) | AIU-Los Angeles, CA is the only school remaining in Transitional Schools. |
(4) | Within Corporate and other we received a $12.0 million payment related to the termination of certain insurance policies in the fourth quarter 2009. |
Career Education Corporation
Recast Quarterly Segment Reporting - University
For the Years Ended December 31, 2009 and 2008
Unaudited
(in millions)
Total Revenue for the 2009 Quarters Ended | Total Revenue for the 2008 Quarters Ended | |||||||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | Full Year | March 31 | June 30 | September 30 | December 31 | Full Year | |||||||||||||||||||||
Art & Design(1) | $ | 58 | $ | 59 | $ | 60 | $ | 63 | $ | 240 | $ | 64 | $ | 58 | $ | 55 | $ | 61 | $ | 238 | ||||||||||
American InterContinental University | 98 | 104 | 107 | 100 | 409 | 95 | 98 | 95 | 87 | 375 | ||||||||||||||||||||
Colorado Technical University | 83 | 87 | 93 | 106 | 369 | 73 | 70 | 71 | 80 | 294 | ||||||||||||||||||||
Total University | $ | 239 | $ | 250 | $ | 260 | $ | 269 | $ | 1,018 | $ | 232 | $ | 226 | $ | 221 | $ | 228 | $ | 907 | ||||||||||
Operating Income for the 2009 Quarters Ended(2) | Operating Income for the 2008 Quarters Ended(2) | |||||||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | Full Year | March 31 | June 30 | September 30 | December 31 | Full Year | |||||||||||||||||||||
Art & Design(1) | $ | 5 | $ | 4 | $ | 6 | $ | 10 | $ | 25 | $ | 9 | $ | 4 | $ | 2 | $ | 8 | $ | 23 | ||||||||||
American InterContinental University | 21 | 25 | 24 | 20 | 90 | 6 | 16 | 15 | 17 | 54 | ||||||||||||||||||||
Colorado Technical University | 17 | 17 | 15 | 31 | 80 | 15 | 8 | 8 | 19 | 50 | ||||||||||||||||||||
Total University | $ | 43 | $ | 46 | $ | 45 | $ | 61 | $ | 195 | $ | 30 | $ | 28 | $ | 25 | $ | 44 | $ | 127 | ||||||||||
(1) | Schools previously organized within the Art & Design reporting segment have been realigned as a component of the University reporting segment, with the exception of Brown College which was realigned within the Health Education reporting segment. In addition, Briarcliffe College was realigned from the University reporting segment to the Health Education reporting segment. |
(2) | Reflects the impact to segment operating income resulting from the change in methodology utilized to allocate the cost of shared and corporate services to the reporting segments. This change was a result of a detailed review of the shared services provided to our campuses. The new methodology allocates costs based on usage and consumption factors. |
Career Education Corporation
Recast Quarterly New Student Starts
For the Years Ended December 31, 2009 and 2008
Unaudited
New Student Starts for the 2009 Quarters Ended | ||||||||||
March 31 | June 30 | September 30 | December 31 | Full Year | ||||||
University(1) | 17,610 | 15,200 | 18,350 | 18,550 | 69,710 | |||||
Culinary Arts | 2,840 | 2,600 | 7,100 | 1,430 | 13,970 | |||||
Health Education(1) | 6,830 | 6,380 | 8,000 | 5,510 | 26,720 | |||||
International | 710 | 280 | 4,200 | 2,950 | 8,140 | |||||
Transitional Schools (2) | — | — | — | — | — | |||||
Total | 27,990 | 24,460 | 37,650 | 28,440 | 118,540 | |||||
New Student Starts for the 2008 Quarters Ended | ||||||||||
March 31 | June 30 | September 30 | December 31 | Full Year | ||||||
University(1) | 17,400 | 12,830 | 16,300 | 16,080 | 62,610 | |||||
Culinary Arts | 2,520 | 1,670 | 4,710 | 1,050 | 9,950 | |||||
Health Education(1) | 5,770 | 4,530 | 6,520 | 4,380 | 21,200 | |||||
International | 560 | 300 | 4,070 | 2,530 | 7,460 | |||||
Transitional Schools(2) | 70 | — | — | — | 70 | |||||
Total | 26,320 | 19,330 | 31,600 | 24,040 | 101,290 | |||||
(1) | Schools previously organized within the Art & Design reporting segment have been realigned as a component of the University reporting segment, with the exception of Brown College which was realigned within the Health Education reporting segment. In addition, Briarcliffe College was realigned from the University reporting segment to the Health Education reporting segment. |
(2) | AIU-Los Angeles, CA is the only school remaining in Transitional Schools. |
Career Education Corporation
Recast Quarterly Student Population
For the Years Ended December 31, 2009 and 2008
Unaudited
Total Student Population as of the 2009 Quarters Ended | ||||||||
March 31 | June 30 | September 30 | December 31 | |||||
University(1) | 54,900 | 51,800 | 56,400 | 59,300 | ||||
Culinary Arts | 9,100 | 9,000 | 13,600 | 10,900 | ||||
Health Education(1) | 21,800 | 21,900 | 25,000 | 24,200 | ||||
International | 8,600 | 2,500 | 7,000 | 10,900 | ||||
Transitional Schools(2) | 200 | 100 | 100 | 100 | ||||
Total | 94,600 | 85,300 | 102,100 | 105,400 | ||||
Total Student Population as of the 2008 Quarters Ended | ||||||||
March 31 | June 30 | September 30 | December 31 | |||||
University(1) | 50,900 | 45,000 | 47,300 | 50,600 | ||||
Culinary Arts | 10,200 | 9,000 | 11,300 | 8,400 | ||||
Health Education(1) | 19,200 | 17,500 | 20,000 | 19,100 | ||||
International | 7,200 | 2,000 | 6,300 | 9,600 | ||||
Transitional Schools (2) | 600 | 100 | 300 | 200 | ||||
Total | 88,100 | 73,600 | 85,200 | 87,900 | ||||
(1) | Schools previously organized within the Art & Design reporting segment have been realigned as a component of the University reporting segment, with the exception of Brown College which was realigned within the Health Education reporting segment. In addition, Briarcliffe College was realigned from the University reporting segment to the Health Education reporting segment. |
(2) | AIU-Los Angeles, CA is the only school remaining in Transitional Schools. |
Career Education Corporation
Recast Quarterly New Student Starts & Student Population – University
For the Years Ended December 31, 2009 and 2008
Unaudited
New Student Starts for the 2009 Quarters Ended | New Student Starts for the 2008 Quarters Ended | |||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | Full Year | March 31 | June 30 | September 30 | December 31 | Full Year | |||||||||||
Art & Design(1) | 1,810 | 2,660 | 3,060 | 1,540 | 9,070 | 1,940 | 1,370 | 2,860 | 2,200 | 8,370 | ||||||||||
American InterContinental University | 9,270 | 4,990 | 6,530 | 7,210 | 28,000 | 9,300 | 4,700 | 6,130 | 6,350 | 26,480 | ||||||||||
Colorado Technical University | 6,530 | 7,550 | 8,760 | 9,800 | 32,640 | 6,160 | 6,760 | 7,310 | 7,530 | 27,760 | ||||||||||
Total University | 17,610 | 15,200 | 18,350 | 18,550 | 69,710 | 17,400 | 12,830 | 16,300 | 16,080 | 62,610 | ||||||||||
Total Student Population as of the 2009 Quarters Ended | Total Student Population as of the 2008 Quarters Ended | |||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | March 31 | June 30 | September 30 | December 31 | |||||||||||||
Art & Design(1) | 10,900 | 11,000 | 12,400 | 11,700 | 11,500 | 10,000 | 10,700 | 11,100 | ||||||||||||
American InterContinental University | 21,700 | 17,900 | 19,500 | 20,300 | 20,600 | 16,100 | 17,200 | 17,900 | ||||||||||||
Colorado Technical University | 22,300 | 22,900 | 24,500 | 27,300 | 18,800 | 18,900 | 19,400 | 21,600 | ||||||||||||
Total University | 54,900 | 51,800 | 56,400 | 59,300 | 50,900 | 45,000 | 47,300 | 50,600 | ||||||||||||
(1) | Schools previously organized within the Art & Design reporting segment have been realigned as a component of the University reporting segment, with the exception of Brown College which was realigned within the Health Education reporting segment. In addition, Briarcliffe College was realigned from the University reporting segment to the Health Education reporting segment. |