Note 14—Segment Information

 

We historically managed our business in four segments based on geographic location for which operating managers are responsible to the Chief Operations Officer. These segments included our historical core markets of the United States, Canada, and the United Kingdom, with the fourth segment including all Other Foreign Markets. During the three months ended December 31, 2017, the Company’s management decided to combine the previously reported United States and Canada segments into the North America segment effective for the 2017 year-end reporting and since such date, our operations have been managed through three operating segments: (i) The North America, (ii) the United Kingdom, (iii) Other Foreign Markets. Operating results, as reported below, are reviewed regularly by our Chief Operating Officer, or Chief Operating Decision Maker (“CODM”) and other members of the executive team.

 

The proportion of our total revenue attributable to each segment is as follows:

 

		Years Ended December 31,
As a percentage of total revenue		2017				2016
North America			58.5	%			65.2	%
U.K.			22.0	%			19.9	%
Other foreign markets			19.5	%			14.9	%
Total consolidated revenue			100	%			100	%

 

Operating results for the segments are as follows:

 

		Years Ended December 31,
		2017				2016
Segment revenue		(In thousands)
North America		$	57,147			$	58,142
U.K.			21,494				17,747
Other foreign markets			19,089				13,307
Total consolidated revenue		$	97,730			$	89,196

  

		Years Ended  December 31,
		2017				2016
Segment gross profit contribution *		(In thousands)
North America		$	11,606			$	12,919
U.K.			5,890				2,942
Other foreign markets			1,726				1,667
Total consolidated gross profit		$	19,222			$	17,528

 

* Segment gross profit is calculated as revenue less direct course expenses, advertising and sales expenses and royalty expense.

 

		Years Ended  December 31,
		2017				2016
Depreciation and amortization expenses		(In thousands)
North America		$	105			$	126
U.K.			19				20
Other foreign markets			1				—
Total consolidated depreciation and amortization expenses		$	125			$	146

 

		December 31,				December 31,
		2017				2016
Segment identifiable assets		(In thousands)
North America		$	15,364			$	13,061
U.K.			9,090				3,508
Other foreign markets			2,566				3,795
Total consolidated identifiable assets		$	27,020			$	20,364

 

For both the years ended December 31, 2017 and 2016, our long-lived assets in the U.S. were approximately $1.2 million in each period. For both the years ended December 31, 2017 and 2016, our international long-lived assets were less than $0.1 million in each period.