Annual report pursuant to Section 13 and 15(d)

Segment Information

Segment Information

12 Months Ended

Dec. 31, 2018

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 Executive 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 Executive 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	2018			2017
North America		56.8	%		58.5	%
U.K.		21.9	%		22.0	%
Other foreign markets		21.3	%		19.5	%
Total consolidated revenue		100	%		100	%

Operating results for the segments are as follows:

	Years Ended December 31,
	2018		2017
Segment revenue	(In thousands)
North America	$	53,054	$	57,147
U.K.		20,469		21,494
Other foreign markets		19,886		19,089
Total consolidated revenue	$	93,409	$	97,730

	Years Ended December 31,
	2018		2017
Segment gross profit contribution *	(In thousands)
North America	$	6,157	$	11,606
U.K.		3,166		5,890
Other foreign markets		848		1,726
Total consolidated gross profit	$	10,171	$	19,222

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

	Years Ended December 31,
	2018		2017
Depreciation and amortization expenses	(In thousands)
North America	$	103	$	105
U.K.		37		19
Other foreign markets		6		1
Total consolidated depreciation and amortization expenses	$	146	$	125

	December 31,		December 31,
	2018		2017
Segment identifiable assets	(In thousands)
North America	$	11,566	$	15,364
U.K.		4,956		9,090
Other foreign markets		4,038		2,566
Total consolidated identifiable assets	$	20,560	$	27,020

Our long-lived assets in the U.S. were approximately $1.1 million and $1.2 million for the year ended December 31, 2018 and 2017, and our international long-lived assets were approximately $0.8 million and $0.1 million for the same periods.