Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CECO | |
Entity Registrant Name | CAREER EDUCATION CORP | |
Entity Central Index Key | 1,046,568 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 68,492,085 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
CURRENT ASSETS: | |||
Cash and cash equivalents, unrestricted | $ 55,659 | $ 66,919 | |
Restricted cash | 1,375 | 49,821 | |
Restricted short-term investments | 9,597 | ||
Short-term investments | 151,153 | 114,901 | |
Total cash and cash equivalents, restricted cash and short-term investments | 217,784 | 231,641 | |
Student receivables, net of allowance for doubtful accounts of $19,304 and $18,013 as of September 30, 2016 and December 31, 2015, respectively | 25,457 | 31,618 | |
Receivables, other, net | 876 | 5,194 | |
Prepaid expenses | 12,695 | 14,380 | |
Inventories | 1,829 | 3,353 | |
Other current assets | 954 | 2,523 | |
Assets of discontinued operations | 176 | 254 | |
Total current assets | 259,771 | 288,963 | |
NON-CURRENT ASSETS: | |||
Property and equipment, net | 45,213 | 58,249 | |
Goodwill | 87,356 | 87,356 | |
Intangible assets, net | 8,700 | 9,300 | |
Student receivables, net of allowance for doubtful accounts of $1,754 and $2,216 as of September 30, 2016 and December 31, 2015, respectively | 3,128 | 3,958 | |
Deferred income tax assets, net | 130,343 | 137,716 | |
Other assets | 8,328 | 16,562 | |
Assets of discontinued operations | 8,634 | 8,811 | |
TOTAL ASSETS | [1] | 551,473 | 610,915 |
CURRENT LIABILITIES: | |||
Short-term borrowings | 38,000 | ||
Accounts payable | 16,000 | 25,906 | |
Accrued expenses: | |||
Payroll and related benefits | 33,075 | 38,789 | |
Advertising and marketing costs | 17,041 | 11,788 | |
Income taxes | 1,730 | 1,061 | |
Other | 25,599 | 24,082 | |
Deferred tuition revenue | 30,342 | 40,112 | |
Liabilities of discontinued operations | 7,004 | 13,067 | |
Total current liabilities | 130,791 | 192,805 | |
NON-CURRENT LIABILITIES: | |||
Deferred rent obligations | 35,664 | 45,927 | |
Other liabilities | 24,133 | 25,197 | |
Liabilities of discontinued operations | 5,862 | 9,376 | |
Total non-current liabilities | 65,659 | 80,500 | |
STOCKHOLDERS' EQUITY: | |||
Preferred stock, $0.01 par value; 1,000,000 shares authorized; none issued or outstanding | |||
Common stock, $0.01 par value; 300,000,000 shares authorized; 83,509,840 and 82,996,585 shares issued, 68,492,083 and 68,098,654 shares outstanding as of September 30, 2016 and December 31, 2015, respectively | 835 | 830 | |
Additional paid-in capital | 613,611 | 610,784 | |
Accumulated other comprehensive income (loss) | 87 | (880) | |
Accumulated deficit | (43,354) | (57,518) | |
Cost of 15,017,757 and 14,897,931 shares in treasury as of September 30, 2016 and December 31, 2015, respectively | (216,156) | (215,606) | |
Total stockholders' equity | 355,023 | 337,610 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 551,473 | $ 610,915 | |
[1] | Total assets do not include intercompany receivable or payable activity between schools and corporate and investments in subsidiaries. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Student receivables, allowance for doubtful accounts, current | $ 19,304 | $ 18,013 |
Student receivables, allowance for doubtful accounts, non-current | $ 1,754 | $ 2,216 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 83,509,840 | 82,996,585 |
Common stock, shares outstanding | 68,492,083 | 68,098,654 |
Treasury, Shares in treasury | 15,017,757 | 14,897,931 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||||
REVENUE: | |||||||
Tuition and registration fees | $ 166,819 | $ 202,179 | $ 546,036 | $ 643,617 | |||
Other | 806 | 1,305 | 3,101 | 3,709 | |||
Total revenue | 167,625 | 203,484 | 549,137 | 647,326 | |||
OPERATING EXPENSES: | |||||||
Educational services and facilities | 51,393 | 74,888 | 170,993 | 222,846 | |||
General and administrative | 111,723 | 133,177 | 337,358 | 442,021 | |||
Depreciation and amortization | 5,215 | 5,962 | 16,986 | 19,861 | |||
Asset impairment | 33,446 | 237 | 50,837 | ||||
Total operating expenses | 168,331 | 247,473 | 525,574 | 735,565 | |||
Operating (loss) income | (706) | (43,989) | 23,563 | (88,239) | |||
OTHER INCOME (EXPENSE): | |||||||
Interest income | 334 | 164 | 900 | 548 | |||
Interest expense | (117) | (170) | (469) | (502) | |||
Loss on sale of business | (715) | (1,632) | |||||
Miscellaneous income (expense) | 10 | 54 | (4) | (321) | |||
Total other income (expense) | 227 | (667) | 427 | (1,907) | |||
PRETAX (LOSS) INCOME | (479) | (44,656) | 23,990 | (90,146) | |||
Provision for (benefit from) income taxes | 21 | 35 | 8,776 | (923) | |||
(LOSS) INCOME FROM CONTINUING OPERATIONS | (500) | (44,691) | 15,214 | (89,223) | |||
LOSS FROM DISCONTINUED OPERATIONS, net of tax | (186) | (544) | (1,050) | (1,616) | |||
NET (LOSS) INCOME | (686) | (45,235) | 14,164 | (90,839) | |||
OTHER COMPREHENSIVE INCOME, net of tax: | |||||||
Foreign currency translation adjustments | 47 | 143 | |||||
Unrealized gains on investments | 370 | 81 | 824 | 233 | |||
Total other comprehensive income | 417 | 81 | 967 | 233 | |||
COMPREHENSIVE (LOSS) INCOME | $ (269) | $ (45,154) | $ 15,131 | $ (90,606) | |||
NET (LOSS) INCOME PER SHARE - BASIC and DILUTED: | |||||||
(Loss) income from continuing operations | $ (0.01) | $ (0.66) | $ 0.22 | $ (1.32) | |||
Loss from discontinued operations | (0.01) | (0.01) | (0.02) | ||||
Net (loss) income per share | $ (0.01) | $ (0.67) | $ 0.21 | $ (1.34) | |||
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||||||
Basic | 68,460 | [1] | 67,961 | [1] | 68,328 | 67,798 | [1] |
Diluted | 68,460 | [1] | 67,961 | [1] | 68,889 | 67,798 | [1] |
[1] | Due to the fact that we reported a loss from continuing operations for the quarters ended September 30, 2015 and 2016, and year to date ended September 30, 2015, potential common stock equivalents are excluded from the diluted common shares outstanding calculation. Per FASB ASC Topic 260 – Earnings Per Share, an entity that reports discontinued operations shall use income or loss from continuing operations as the benchmark for calculating diluted common shares outstanding, and as such, we have zero common stock equivalents since these shares would have an anti-dilutive effect on our net loss per share for the quarters ended September 30, 2015 and 2016, and year to date ended September 30, 2015. |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 14,164 | $ (90,839) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Asset impairment | 237 | 50,837 |
Depreciation and amortization expense | 16,986 | 19,861 |
Bad debt expense | 23,201 | 15,526 |
Compensation expense related to share-based awards | 2,251 | 2,453 |
Loss on sale of businesses, net | 1,632 | |
Gain on disposition of property and equipment | (438) | (10) |
Deferred income taxes | 7,373 | |
Changes in operating assets and liabilities | (48,060) | (20,463) |
Net cash provided by (used in) operating activities | 15,714 | (21,003) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of available-for-sale investments | (137,755) | (64,056) |
Sales of available-for-sale investments | 99,718 | 69,436 |
Purchases of property and equipment | (3,352) | (7,926) |
Proceeds on the sale of assets | 3,600 | 2,272 |
Payments of cash upon sale of businesses | (62) | (4,125) |
Net cash used in investing activities | (37,851) | (4,399) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Issuance of common stock | 581 | 1,082 |
Payment on borrowings | (38,000) | (10,000) |
Change in restricted cash | 48,446 | 9,250 |
Net cash provided by financing activities | 11,027 | 332 |
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS: | (150) | 178 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (11,260) | (24,892) |
CASH AND CASH EQUIVALENTS, beginning of the period | 66,919 | 93,832 |
CASH AND CASH EQUIVALENTS, end of the period | $ 55,659 | $ 68,940 |
Description of the Company
Description of the Company | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of the Company | 1. DESCRIPTION OF THE COMPANY Career Education’s academic institutions offer a quality education to a diverse student population in a variety of disciplines through online, campus-based and hybrid learning programs. Our two universities – American InterContinental University (“AIU”) and Colorado Technical University (“CTU”) – provide degree programs through the master’s or doctoral level as well as associate and bachelor’s levels. Both universities predominantly serve students online with career-focused degree programs that are designed to meet the educational demands of today’s busy adults. AIU and CTU continue to show innovation in higher education, advancing new personalized learning technologies like their intelli path Additionally, CEC is in the process of teaching out campuses within our Transitional Group and Culinary Arts segments. Students enrolled at these campuses are afforded the reasonable opportunity to complete their program of study prior to the final teach-out date. A listing of individual campus locations and web links to Career Education’s colleges, institutions and universities can be found at www.careered.com. As used in this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” “the Company” and “CEC” refer to Career Education Corporation and our wholly-owned subsidiaries. The terms “college,” “institution” and “university” refer to an individual, branded, for-profit educational institution, owned by us and includes its campus locations. The term “campus” refers to an individual main or branch campus operated by one of our colleges, institutions or universities. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 2. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring accruals, considered necessary for a fair presentation have been included. Operating results for the quarter and year to date ended September 30, 2016 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2016. The unaudited condensed consolidated financial statements presented herein include the accounts of Career Education Corporation and our wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated. Our reporting segments are determined in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 280 – Segment Reporting During the third quarter of 2016, the Company completed the teach-out of five Transitional Group campuses: Sanford-Brown Atlanta, Sanford-Brown Dallas, Sanford-Brown Ft. Lauderdale, Sanford-Brown Iselin and International Academy of Design & Technology Detroit, which continue to be reported within the Transitional Group as of September 30, 2016 in accordance with ASC Topic 360 – Property, Plant and Equipment |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 3. RECENT ACCOUNTING PRONOUNCEMENTS In August 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. In March 2016, the FASB issued ASU No. 2016-07 , Simplifying the Transition to the Equity Method of Accounting In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The core principle of Topic 842 is that lessees should recognize the assets and liabilities that arise from leases. All leases create an asset and liability for the lessee in accordance with FASB Concept Statements No. 6 Elements of Financial Statements In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | 4. DISCONTINUED OPERATIONS As of September 30, 2016, the results of operations for campuses that have ceased operations prior to 2015 are presented within discontinued operations. Prior to January 1, 2015, our Transitional Group campuses met the criteria for discontinued operations upon completion of their teach-out. Commencing January 1, 2015, in accordance with new guidance under ASC Topic 360, only campuses that meet the criteria of a strategic shift upon disposal will be classified within discontinued operations, among other criteria. Since the January 2015 effective date of the updated guidance within ASC Topic 360, we have not had any campuses that met the criteria to be considered a discontinued operation. Results of Discontinued Operations The summary of unaudited results of operations for our discontinued operations for the quarters and years to date ended September 30, 2016 and 2015 were as follows (dollars in thousands): For the Quarter Ended September 30, For the Year to Date Ended September 30, 2016 2015 2016 2015 Revenue $ - $ 3 $ - $ 6 Total operating expenses $ 295 $ 547 $ 1,676 $ 1,636 Loss before income tax $ (295 ) $ (544 ) $ (1,676 ) $ (1,616 ) Benefit from income tax (109 ) - (626 ) - Loss from discontinued operations, net of tax $ (186 ) $ (544 ) $ (1,050 ) $ (1,616 ) Net loss per share - Basic and Diluted $ - $ (0.01 ) $ (0.01 ) $ (0.02 ) Assets and Liabilities of Discontinued Operations Assets and liabilities of discontinued operations on our condensed consolidated balance sheets as of September 30, 2016 and December 31, 2015 include the following (dollars in thousands): September 30, December 31, 2016 2015 Assets: Current assets: Receivables, net $ 176 $ 254 Total current assets 176 254 Non-current assets: Other assets, net 543 720 Deferred income tax assets, net 8,091 8,091 Total assets of discontinued operations $ 8,810 $ 9,065 Liabilities: Current liabilities: Accounts payable and accrued expenses $ 81 $ 528 Remaining lease obligations 6,923 12,539 Total current liabilities 7,004 13,067 Non-current liabilities: Remaining lease obligations 5,698 9,212 Other 164 164 Total liabilities of discontinued operations $ 12,866 $ 22,443 Remaining Lease Obligations of Discontinued Operations A number of the campuses that ceased operations prior to January 1, 2015 have remaining lease obligations that expire over time with the latest expiration in 2020. A liability is recorded representing the fair value of the remaining lease obligation at the time the space is no longer being utilized. Changes in our future remaining lease obligations, which are reflected within current and non-current liabilities of discontinued operations on our condensed consolidated balance sheets, for the quarters and years to date ended September 30, 2016 and 2015 were as follows (dollars in thousands): Balance, Beginning of Period Charges Incurred (1) Net Cash Payments Other Balance, End of Period For the quarter ended September 30, 2016 $ 16,149 $ (479 ) $ (3,049 ) $ - $ 12,621 For the quarter ended September 30, 2015 $ 27,993 $ (151 ) $ (3,275 ) $ 50 $ 24,617 For the year to date ended September 30, 2016 $ 21,751 $ (78 ) $ (9,052 ) $ - $ 12,621 For the year to date ended September 30, 2015 $ 37,616 $ (564 ) $ (12,485 ) $ 50 $ 24,617 (1) Includes charges for vacated spaces and subsequent adjustments for accretion, revised estimates and variances between estimated and actual charges, net of any reversals for terminated lease obligations. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | 5. FINANCIAL INSTRUMENTS Investments consist of the following as of September 30, 2016 and December 31, 2015 (dollars in thousands): September 30, 2016 Gross Unrealized Cost Gain (Loss) Fair Value Short-term investments (available for sale): Municipal bonds $ 2,250 $ - $ - $ 2,250 Non-governmental debt securities 108,987 37 (67 ) 108,957 Treasury and federal agencies 39,946 23 (23 ) 39,946 Total short-term investments 151,183 60 (90 ) 151,153 Restricted short-term investments (available for sale): Non-governmental debt securities 9,597 - - 9,597 Total investments (available for sale) $ 160,780 $ 60 $ (90 ) $ 160,750 December 31, 2015 Gross Unrealized Cost Gain (Loss) Fair Value Short-term investments (available for sale): Municipal bonds $ 1,500 $ - $ (11 ) $ 1,489 Non-governmental debt securities 76,999 - (242 ) 76,757 Treasury and federal agencies 36,779 3 (127 ) 36,655 Total short-term investments 115,278 3 (380 ) 114,901 Long-term investments (available for sale): Municipal bond 7,850 - (476 ) 7,374 Total investments (available for sale) $ 123,128 $ 3 $ (856 ) $ 122,275 In the table above, unrealized holding gains (losses) as of September 30, 2016 relate to short-term investments that have been in a continuous unrealized gain (loss) position for less than one year. Our unrestricted non-governmental debt securities primarily consist of corporate bonds and commercial paper. Our treasury and federal agencies primarily consist of U.S. Treasury bills and federal home loan debt securities. We do not intend to sell our investments in these securities and it is not likely that we will be required to sell these investments before recovery of the amortized cost basis. Our restricted short-term investments are comprised entirely of certificates of deposit, which secure our letters of credit. Prior to the second quarter of 2016, these funds were held as cash by the letter of credit issuer and reported by the Company as restricted cash on our condensed consolidated balance sheets. During the third quarter of 2016, our long-term municipal bond investment was called by the issuer at face value. The cumulative unrealized loss of $0.5 million was subsequently reversed out of accumulated other comprehensive loss, a component of stockholders’ equity during the current year quarter. Fair Value Measurements FASB ASC Topic 820 – Fair Value Measurements As of September 30, 2016, we held investments that are required to be measured at fair value on a recurring basis. These investments (available-for-sale) consist of municipal bonds, non-governmental debt securities, and treasury and federal agencies securities. Available for sale securities included in Level 1 are valued at quoted prices in active markets for identical assets and liabilities. Available for sale securities included in Level 2 are estimated based on observable inputs other than quoted prices in active markets for identical assets and liabilities, such as quoted prices for identical or similar assets or liabilities in inactive markets or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Investments measured at fair value on a recurring basis subject to the disclosure requirements of FASB ASC Topic 820 – Fair Value Measurements As of September 30, 2016 Level 1 Level 2 Level 3 Total Municipal bonds $ - $ 2,250 $ - $ 2,250 Non-governmental debt securities 35,368 83,186 - 118,554 Treasury and federal agencies - 39,946 - 39,946 Totals $ 35,368 $ 125,382 $ - $ 160,750 As of December 31, 2015 Level 1 Level 2 Level 3 Total Municipal bonds $ - $ 1,489 $ 7,374 $ 8,863 Non-governmental debt securities - 76,757 - 76,757 Treasury and federal agencies - 36,655 - 36,655 Totals $ - $ 114,901 $ 7,374 $ 122,275 Equity Method Investment Our investment in an equity affiliate, which is recorded within other noncurrent assets on our condensed consolidated balance sheets, represents an international investment in a private company. As of September 30, 2016, our investment in an equity affiliate equated to a 30.7%, or $3.3 million, non-controlling interest in CCKF, a Dublin-based educational technology company providing intelligent adaptive systems to power the delivery of individualized and personalized learning. During the quarters ended September 30, 2016 and 2015, we recorded approximately $0.2 million and less than $0.1 million of loss, respectively, and during the years to date ended September 30, 2016 and September 30, 2015, we recorded approximately $1.0 million and $0.2 million of loss, respectively, related to our proportionate investment in CCKF within miscellaneous (expense) income on our unaudited condensed consolidated statements of (loss) income and comprehensive (loss) income. We make periodic operating maintenance payments for our use of intelli path TM Maintenance Fee Payments For the quarter ended September 30, 2016 $ 340 For the quarter ended September 30, 2015 $ 337 For the year to date ended September 30, 2016 $ 1,027 For the year to date ended September 30, 2015 $ 1,036 Credit Agreement During the fourth quarter of 2015, the Company; its wholly-owned subsidiary, CEC Educational Services, LLC (“CEC-ES”); and the subsidiary guarantors thereunder entered into a Fourth Amendment to its Amended and Restated Credit Agreement dated as of December 30, 2013 (as amended, the “Credit Agreement”) with BMO Harris Bank N.A., in its capacities as the initial lender and letter of credit issuer thereunder and the administrative agent for the lenders which from time to time may be parties to the Credit Agreement, to among other things, decrease the revolving credit facility to $95.0 million and require pre-approval by the lenders for each credit extension (other than letter of credit extensions) occurring after December 31, 2015. The revolving credit facility under the Credit Agreement is scheduled to mature on December 31, 2018. The loans and letter of credit obligations under the Credit Agreement are required to be secured by 100% cash collateral. As of September 30, 2016, there were no outstanding borrowings under the revolving credit facility. |
Student Receivables
Student Receivables | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Student Receivables | 6. STUDENT RECEIVABLES Student receivables represent funds owed to us in exchange for the educational services provided to a student. Student receivables are reflected net of an allowance for doubtful accounts and net of deferred tuition revenue as determined on a student-by-student basis at the end of the reporting period. Student receivables, net are reflected on our condensed consolidated balance sheets as components of both current and non-current assets. We do not accrue interest on past due student receivables; interest is recorded only upon collection. Generally, a student receivable balance is written off once it reaches greater than 90 days past due. Although we analyze past due receivables, it is not practical to provide an aging of our non-current student receivable balances as a result of the methodology utilized in determining our earned student receivable balances. Student receivables are recognized on our condensed consolidated balance sheets as they are deemed earned over the course of a student’s program and/or term, and therefore cash collections are not applied against specifically dated transactions. Our standard student receivable allowance estimation methodology considers a number of factors that, based on our collection experience, we believe have an impact on our repayment risk and ability to collect student receivables. Changes in the trends in any of these factors may impact our estimate of the allowance for doubtful accounts. These factors include, but are not limited to: internal repayment history, repayment practices of previous extended payment programs, changes in the current economic, legislative or regulatory environments and the ability to complete the federal financial aid process with the student. These factors are monitored and assessed on a regular basis. Overall, our allowance estimation process for student receivables is validated by trending analysis and comparing estimated and actual performance. Student Receivables Under Extended Payment Plans and Recourse Loan Agreements To assist students in completing their educational programs, we had previously provided extended payment plans to certain students and also had loan agreements with Sallie Mae and Stillwater National Bank and Trust Company (“Stillwater”) which required us to repurchase loans originated by them to our students after a certain period of time. We discontinued providing extended payment plans to students during the first quarter of 2011 and the recourse loan agreements with Sallie Mae and Stillwater ended in March 2008 and April 2007, respectively. As of September 30, 2016 and December 31, 2015, the amount of non-current student receivables under these programs, net of allowance for doubtful accounts, was $3.1 million and $4.0 million, respectively. Student Receivables Valuation Allowance Changes in our current and non-current receivables allowance for the quarters and years to date ended September 30, 2016 and 2015 were as follows (dollars in thousands): Balance, Beginning of Period Charges to Expense (1) Amounts Written-off Balance, End of Period For the quarter ended September 30, 2016 $ 21,008 $ 8,457 $ (8,407 ) $ 21,058 For the quarter ended September 30, 2015 $ 18,503 $ 6,428 $ (6,213 ) $ 18,718 For the year to date ended September 30, 2016 $ 20,229 $ 23,332 $ (22,503 ) $ 21,058 For the year to date ended September 30, 2015 $ 19,097 $ 15,653 $ (16,032 ) $ 18,718 (1) Charges to expense include an offset for recoveries of amounts previously written off of $1.3 million and $1.4 million for the quarters ended September 30, 2016 and 2015, respectively, and $4.9 million and $5.1 million for the years to date ended September 30, 2016 and 2015, respectively. Fair Value Measurements The carrying amount reported in our condensed consolidated balance sheets for the current portion of student receivables approximates fair value because of the nature of these financial instruments as they generally have short maturity periods. It is not practicable to estimate the fair value of the non-current portion of student receivables, since observable market data is not readily available, and no reasonable estimation methodology exists. |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges | 7. RESTRUCTURING CHARGES During the past several years, we have carried out reductions in force related to the continued reorganization of our corporate and campus functions to better align with current total enrollments and made decisions to teach out a number of campuses, meaning gradually close the campuses through an orderly process. As part of the process to wind down these teach-out campuses, the Company also announced that it will align its corporate overhead to support a more streamlined and focused operating entity. Most notably, we have recorded charges within our Transitional Group and Culinary Arts segments and our corporate functions as we continue to align our overall management structure. Each of our teach-out campuses offer current students the reasonable opportunity to complete their course of study. The majority of these teach-out campuses are expected to cease operations by 2017 with the remainder expected to cease operations in 2018. The following table details the changes in our accrual for severance and related costs associated with all restructuring events for our continuing operations during the quarters and years to date ended September 30, 2016 and 2015 (dollars in thousands): Balance, Beginning of Period Severance & Related Charges (1) (2) Payments Non-cash Adjustments (3) Balance, End of Period For the quarter ended September 30, 2016 $ 11,290 $ 117 $ (1,546 ) $ 240 $ 10,101 For the quarter ended September 30, 2015 $ 12,863 $ 52 $ (2,335 ) $ (830 ) $ 9,750 For the year to date ended September 30, 2016 $ 18,985 $ 389 $ (9,176 ) $ (97 ) $ 10,101 For the year to date ended September 30, 2015 $ 2,712 $ 13,697 $ (5,399 ) $ (1,260 ) $ 9,750 (1) Includes charges related to COBRA and outplacement services which are assumed to be completed by the third month following an employee’s departure. (2) Severance payments will result in future cash expenditures through 2018. (3) Includes cancellations due to employee departures prior to agreed upon end dates, employee transfers to open positions within the organization and subsequent adjustments to severance and related costs. Severance and related expenses for the quarters and years to date ended September 30, 2016 and 2015 by reporting segment is as follows (dollars in thousands): For the Quarter Ended September 30, For the Year to Date Ended September 30, 2016 2015 2016 2015 CTU $ - $ 18 $ 18 $ 306 AIU - 4 66 343 Total University Group - 22 84 649 Corporate and Other 117 - 270 4,318 Subtotal 117 22 354 4,967 Culinary Arts - - 5 265 Transitional Group - 30 30 8,465 Total $ 117 $ 52 $ 389 $ 13,697 The current portion of the accrual for severance and related charges was $7.6 million as of September 30, 2016, which is recorded within current accrued expenses – payroll and related benefits; the long-term portion of $2.5 million is recorded within other non-current liabilities on our condensed consolidated balance sheet. In addition, as of September 30, 2016, we have accrued approximately $1.5 million related to retention bonuses that have been offered to certain employees. These amounts will be recorded ratably over the period the employees are retained. In addition to the severance charges detailed above, a number of the teach-out campuses will have remaining lease obligations following the eventual campus closure, with the longest lease term being through 2023. The total remaining estimated charge as of September 30, 2016, for all restructuring events reported within continuing operations related to the remaining lease obligation for these leases, once the campus completes the close process, and adjusted for possible lease buyouts and sublease assumptions is approximately $40 million - $50 million. The amount related to each campus will be recorded at each campus closure date based on current estimates and assumptions related to the amount and timing of sublease income. This is in addition to approximately $34.6 million of charges related to remaining obligations that were recorded during 2015 through the third quarter of 2016. Remaining Lease Obligations of Continuing Operations We have recorded lease exit costs associated with the exit of real estate space for certain campuses related to our continuing operations. These costs are recorded within educational services and facilities expense on our unaudited condensed consolidated statements of (loss) income and comprehensive (loss) income. The current portion of the liability for these charges is reflected within other accrued expenses under current liabilities and the long-term portion of these charges are included in other liabilities under the non-current liabilities section of our condensed consolidated balance sheets. Changes in our future minimum lease obligations for exited space related to our continuing operations for the quarters and years to date ended September 30, 2016 and 2015 were as follows (dollars in thousands): Balance, Beginning of Period Charges Incurred (1) Net Cash Payments Other Balance, End of Period For the quarter ended September 30, 2016 $ 17,140 $ 4,912 $ (3,476 ) $ 1,303 $ 19,879 For the quarter ended September 30, 2015 $ 5,480 $ 11,107 $ (6,399 ) $ 2,242 $ 12,430 For the year to date ended September 30, 2016 $ 12,892 $ 13,994 $ (11,476 ) $ 4,469 $ 19,879 For the year to date ended September 30, 2015 $ 7,094 $ 17,527 $ (16,112 ) $ 3,921 $ 12,430 _____________ (1) Includes charges for newly vacated spaces and subsequent adjustments for accretion, revised estimates and variances between estimated and actual charges, net of any reversals for terminated lease obligations. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Contingencies Disclosure [Abstract] | |
Contingencies | 8. CONTINGENCIES An accrual for estimated legal fees and settlements of $2.6 million and $2.7 million at September 30, 2016 and December 31, 2015, respectively, is presented within other current liabilities on our condensed consolidated balance sheets. We record a liability when we believe that it is both probable that a loss will be incurred and the amount of loss can be reasonably estimated. We evaluate, at least quarterly, developments in our legal matters that could affect the amount of liability that was previously accrued, and make adjustments as appropriate. Significant judgment is required to determine both probability and the estimated amount. We may be unable to estimate a possible loss or range of possible loss due to various reasons, including, among others: (1) if the damages sought are indeterminate; (2) if the proceedings are in early stages; (3) if there is uncertainty as to the outcome of pending appeals, motions, or settlements; (4) if there are significant factual issues to be determined or resolved; and (5) if there are novel or unsettled legal theories presented. In such instances, there is considerable uncertainty regarding the ultimate resolution of such matters, including a possible eventual loss, if any. Litigation We are, or were, a party to the following legal proceedings that we consider to be outside the scope of ordinary routine litigation incidental to our business. Due to the inherent uncertainties of litigation, we cannot predict the ultimate outcome of these matters. An unfavorable outcome of any one or more of these matters could have a material adverse impact on our business, results of operations, cash flows and financial position. Student Litigation Surrett, et al. v. Western Culinary Institute, Ltd. and Career Education Corporation . On March 5, 2008, a complaint was filed in Portland, Oregon in the Circuit Court of the State of Oregon in and for Multnomah County naming Western Culinary Institute, Ltd. (“WCI”) and the Company as defendants. Plaintiffs filed the complaint individually and as a putative class action and alleged two claims for equitable relief: violation of Oregon’s Unlawful Trade Practices Act (“UTPA”) and unjust enrichment. Plaintiffs filed an amended complaint on April 10, 2008, which added two claims for money damages: fraud and breach of contract. Plaintiffs allege WCI made a variety of misrepresentations to them, relating generally to WCI’s placement statistics, students’ employment prospects upon graduation from WCI, the value and quality of an education at WCI, and the amount of tuition students could expect to pay as compared to salaries they could expect to earn after graduation. WCI subsequently moved to dismiss certain of plaintiffs’ claims under Oregon’s UTPA; that motion was granted on September 12, 2008. On February 5, 2010, the Court entered a formal Order granting class certification on part of plaintiff’s UTPA and fraud claims purportedly based on omissions, denying certification of the rest of those claims and denying certification of the breach of contract and unjust enrichment claims. The class consists of students who enrolled at WCI between March 5, 2006 and March 1, 2010, excluding those who dropped out or were dismissed from the school for academic reasons. Plaintiffs filed a fifth amended complaint on December 7, 2010, which included individual and class allegations by Nathan Surrett. Class notice was sent on April 22, 2011, and the opt-out period expired on June 20, 2011. The class consisted of approximately 2,600 members. They are seeking tuition refunds, interest and certain fees paid in connection with their enrollment at WCI. On May 23, 2012, WCI filed a motion to compel arbitration of claims by 1,062 individual class members who signed enrollment agreements containing express class action waivers. The Court issued an Order denying the motion on July 27, 2012. On August 6, 2012, WCI filed an appeal from the Court’s Order and on August 30, 2012, the Court of Appeals issued an Order granting WCI’s motion to compel the trial court to cease exercising jurisdiction in the case. The oral argument on the appeal was heard on May 9, 2014 and on January 21, 2016, the appellate court reversed the trial court and held that the claims by the 1,062 individual class members referenced above should be compelled to arbitration. The case has been remanded back to the trial court for further proceedings. Because of the many questions of fact and law that have already arisen and that may arise in the future, the outcome of this legal proceeding is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of potential loss, if any, for this action because of the inherent difficulty in assessing the appropriate measure of damages and the number of class members who might be entitled to recover damages, if we were to be found liable. Accordingly, we have not recognized any liability associated with this action. False Claims Act United States of America, ex rel. Melissa Simms Powell, et al. v. American InterContinental University, Inc., a Georgia Corporation, Career Education Corp., a Delaware Corporation and John Doe Nos. 1-100. On July 28, 2009, we were served with a complaint filed in the U.S. District Court for the Northern District of Georgia, Atlanta Division. The complaint was originally filed under seal on July 14, 2008 by four former employees of the Dunwoody campus of our American InterContinental University on behalf of themselves and the federal government. On July 27, 2009, the Court ordered the complaint unsealed and we were notified that the U.S. Department of Justice declined to intervene in the action. When the federal government declines to intervene in a False Claims Act action, as it has done in this case, the private plaintiffs (or “relators”) may elect to pursue the litigation on behalf of the federal government and, if they are successful, receive a portion of the federal government’s recovery. The action alleges violations of the False Claims Act and promissory fraud, including allegedly providing false certifications to the federal government regarding compliance with certain provisions of the Higher Education Act and accreditation standards. Relators claim that defendants’ conduct caused the government to pay federal funds to defendants and to make payments to third-party lenders, which the government would not have made if not for defendants’ alleged violation of the law. Relators seek treble damages plus civil penalties and attorneys’ fees. On July 12, 2012, the Court granted our motion to dismiss for a lack of jurisdiction, the claims related to incentive compensation and proof of graduation. Thus, the only claim that remained pending against defendants was based on relators’ contention that defendants misled the school’s accreditor, Southern Association of Colleges and Schools, during the accreditation process. On December 16, 2013, we filed a motion for summary judgment on a variety of substantive grounds. On September 29, 2014, the Court granted our motion for summary judgment and entered judgment in our favor. On October 2, 2014, relators filed a notice of appeal. The appeal was stayed pending the United States Supreme Court’s decision in , No. 12-1497. The Supreme Court issued its decision and the case was remanded to the district court. After considering additional arguments regarding whether it has jurisdiction over relators’ remaining claims, on June 8, 2016, the district court issued an order finding that it does not have jurisdiction over the relators’ proof of graduation claim. The Court additionally found that it does not have jurisdiction over the incentive compensation claim as to three of the four relators, but that it does have jurisdiction over that claim with respect to the fourth relator. The Court ordered, and the parties submitted further briefing as to whether and to what extent the Court’s June 8, 2016 order affected its September 29, 2014 order granting summary judgment to defendants on the accreditation claim. On September 20, 2016, the court held that all four relators could proceed with the accreditation claim and on October 28, 2016, the court set the case for trial on February 27, 2017. Because of the many questions of fact and law that have already arisen and that may arise in the future, the outcome of this legal proceeding is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of potential loss, if any, for this action because the complaint does not seek a specified amount of damages and it is unclear how damages would be calculated, if we were to be found liable. Moreover, the case presents novel legal issues. Accordingly, we have not recognized any liability associated with this action. United States of America, ex rel. Brent M. Nelson v. Career Education Corporation, Sanford-Brown, Ltd., and Ultrasound Technical Services, Inc. On April 18, 2013, defendants were served with an amended complaint filed in the U.S. District Court for the Eastern District of Wisconsin. The original complaint was filed under seal on July 30, 2012 by a former employee of Sanford-Brown College Milwaukee on behalf of himself and the federal government. On February 27, 2013, the Court ordered the complaint unsealed and we were notified that the U.S. Department of Justice declined to intervene in the action. After the federal government declined to intervene in this case, the relator elected to pursue the litigation on behalf of the federal government. If he is successful he would receive a portion of the federal government’s recovery. An amended complaint was filed by the relator on April 12, 2013 and alleges violations of the False Claims Act, including allegedly providing false certifications to the federal government regarding compliance with certain provisions of the Higher Education Act and accreditation standards. Relator claims that defendants’ conduct caused the government to pay federal funds to defendants, and to make payments to third-party lenders, which the government would not have made if not for defendants’ alleged violation of the law. Relator seeks treble damages plus civil penalties and attorneys’ fees. On June 11, 2013, defendants filed a motion to dismiss the case on a variety of grounds. The Court ruled on that motion, dismissing CEC from the case and dismissing several of the relator’s factual claims. On November 27, 2013, Sanford Brown, LTD., and Ultrasound Technical Services, Inc., the remaining Company defendants, filed a motion to dismiss the case for lack of subject matter jurisdiction due to prior public disclosures of the relator’s alleged claims. On March 17, 2014, the Court granted this motion in part, limiting the timeframe and geographical scope of the relator’s claims. On June 13, 2014, the Court granted the remaining Company defendants’ motion for summary judgment and entered judgment in their favor. On July 9, 2014, relator filed a notice of appeal. On June 8, 2015, the appellate court affirmed the district court. On July 2, 2015, relator filed a petition for rehearing, which was denied on August 4, 2015. On December 2, 2015, relator filed his petition for certiorari to the United States Supreme Court. Defendants filed their opposition to the petition on February 3, 2016. On June 27, 2016, the Supreme Court entered an order granting the petition, vacating the appellate court’s judgment and remanding the case back to the appellate court for further consideration. On October 24, 2016, the appellate court again affirmed the district court’s grant of summary judgment in defendants’ favor. Relator has 90 days from entry of the judgment to seek certiorari to the United States Supreme Court. Because of the many questions of fact and law that have already arisen and that may arise in the future, the outcome of this legal proceeding is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of potential loss, if any, for this action because the complaint does not seek a specified amount of damages and it is unclear how damages would be calculated, if we were to be found liable. Accordingly, we have not recognized any liability associated with this action. United States of America, ex rel. Ann Marie Rega v. Career Education Corporation, et al. On May 16, 2014, Relator Ann Marie Rega, a former employee of Sanford-Brown Iselin, filed an action in the U.S. District Court for the District of New Jersey against the Company and almost all of the Company’s individual schools on behalf of herself and the federal government. She alleges claims under the False Claims Act, including that the defendants allegedly provided false certifications to the federal government regarding compliance with certain provisions of the Higher Education Act and accreditation standards. Relator claims that defendants’ conduct caused the government to pay federal funds to defendants, and to make payments to third-party lenders, which the government would not have made if not for defendants’ alleged violation of the law. Relator seeks treble damages plus civil penalties and attorneys’ fees. Relator failed to comply with the statutory requirement that all False Claims Act cases be filed under seal. On June 16, 2014, defendants filed a motion to dismiss the complaint with prejudice as to relator for failure to file her complaint under seal in accordance with the requirements of the False Claims Act. The Company has been contacted by the Civil Division of the U.S. Department of Justice (“DOJ”) with a request for certain documents and information relating to relator’s claims. The Company is cooperating with the DOJ. Because it is in the early stages and because of the many questions of fact and law that may arise, the outcome of this legal proceeding is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of potential loss, if any, for this action because the complaint does not seek a specified amount of damages and it is unclear how damages would be calculated, if we were to be found liable. Moreover, the case presents novel legal issues. Accordingly, we have not recognized any liability associated with this action. Employment Litigation Wilson, et al. v. Career Education Corporation. On August 11, 2011, Riley Wilson, a former admissions representative based in Minnesota, filed a complaint in the U.S. District Court for the Northern District of Illinois. The two-count complaint asserts claims of breach of contract and unjust enrichment arising from our decision to terminate our Admissions Representative Supplemental Compensation (“ARSC”) Plan. In addition to his individual claims, Wilson also seeks to represent a nationwide class of similarly situated admissions representatives who also were affected by termination of the plan. On October 6, 2011, we filed a motion to dismiss the complaint. On April 13, 2012, the Court granted our motion to dismiss in its entirety and dismissed plaintiff’s complaint for failure to state a claim. The Court dismissed this action with prejudice on May 14, 2012. On June 11, 2012, plaintiff filed a notice of appeal with the U.S. Court of Appeals for the Seventh Circuit appealing the final judgment of the trial court. Briefing was completed on October 30, 2012, and oral argument was held on December 3, 2012. On August 30, 2013, the Seventh Circuit affirmed the district court’s ruling on plaintiff’s unjust enrichment claim but reversed and remanded for further proceedings on plaintiff’s breach of contract claim. On September 13, 2013, we filed a petition for rehearing to seek review of the panel’s decision on the breach of contract claim and for certification of question to the Illinois Supreme Court, but the petition was denied. The case was remanded to the district court for further proceedings on the sole question of whether CEC’s termination of the ARSC Plan violated the implied covenant of good faith and fair dealing. The parties completed fact discovery as to the issue of liability. On March 24, 2015, we filed a motion for summary judgment which the Court granted on December 18, 2015. Plaintiff filed his notice of appeal on January 16, 2016. The oral argument on the appeal was heard on September 23, 2016 and the parties are awaiting the court’s decision. Because of the many questions of fact and law that may arise on appeal, the outcome of this legal proceeding is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of potential loss, if any, for this action. Accordingly, we have not recognized any liability associated with this action. Other Litigation In addition to the legal proceedings and other matters described above, we are also subject to a variety of other claims, lawsuits and investigations that arise from time to time out of the conduct of our business, including, but not limited to, claims involving prospective students, students or graduates, alleged violations of the Telephone Consumer Protection Act, both individually and on behalf of a putative class, and routine employment matters. While we currently believe that such claims, individually or in aggregate, will not have a material adverse impact on our financial position, cash flows or results of operations, these other matters are subject to inherent uncertainties, and management’s view of these matters may change in the future. Were an unfavorable final outcome to occur in any one or more of these matters, there exists the possibility of a material adverse impact on our business, reputation, financial position, cash flows, and the results of operations for the period in which the effect becomes probable and reasonably estimable. State Investigations The Attorney General of Connecticut is serving as the point of contact for inquiries received from the attorneys general of the following: Arkansas, Arizona, Connecticut, Idaho, Iowa, Kentucky, Missouri, Nebraska, North Carolina, Oregon, Pennsylvania, Washington (January 24, 2014); Illinois (December 9, 2011); Tennessee (February 7, 2014); Hawaii (May 28, 2014 ); New Mexico (May 2014); Maryland (March 16, 2015); and the District of Columbia (June 3, 2015) (these 18 attorneys general are collectively referred to as the “Multi-State AGs”). In addition, the Company has received inquiries from the attorneys general of Florida (November 5, 2010), Massachusetts (September 27, 2012), Colorado (August 27, 2013) and Minnesota (September 18, 2014, October 25, 2016). The inquiries are civil investigative demands or subpoenas which relate to the investigation by the attorneys general of whether the Company and its schools have complied with certain state consumer protection laws, and generally focus on the Company's practices relating to the recruitment of students, graduate placement statistics, graduate certification and licensing results and student lending activities, among other matters. Depending on the state, the documents and information sought by the attorneys general in connection with their investigations cover time periods as early as 2006 to the present. The Company intends to cooperate with the states involved with a view towards resolving these inquiries as promptly as possible. In this regard, the Company has participated in several meetings with representatives of the Multi-State AGs about the Company’s business and to engage in a dialogue towards a resolution of these inquiries. We cannot predict the scope, duration or outcome of these attorney general investigations. At the conclusion of any of these matters, the Company or certain of its schools may be subject to claims of failure to comply with state laws or regulations and may be required to pay significant financial penalties and/or curtail or modify their operations. Other state attorneys general may also initiate inquiries into the Company or its schools. In addition, all of the Company’s institutions have been issued provisional program participation agreements that extend through December 31, 2016. Each of our institutions will need to apply for recertification by September 30, 2016 in order to continue its eligibility to participate in Title IV Programs. We cannot predict whether, or to what extent, any of these inquiries or future resolutions of these inquiries might impact our Title IV eligibility. Depending on the circumstances of any resolution of these inquiries, ED may revoke, limit, suspend, delay or deny the institution’s or all of the Company’s institutions’ Title IV eligibility, or impose fines. If any of the foregoing occurs, our business, reputation, financial position, cash flows and results of operations could be materially adversely affected. Based on information available to us at present, we cannot reasonably estimate a range of potential monetary or non-monetary impact these investigations might have on the Company because it is uncertain what remedies, if any, these regulators might ultimately seek in connection with these investigations. In addition to the aforementioned inquiries, from time to time, we receive informal requests from state Attorneys General and other government agencies relating to specific complaints they have received from students or former students which seek information about the student, our programs, and other matters relating to our activities in the relevant state. These requests can be broad and time consuming to respond to, and there is a risk that they could expand and/or lead to a formal inquiry or investigation into our practices in a particular state. Federal Trade Commission Inquiry On August 20, 2015, the Company received a request for information pursuant to a Civil Investigative Demand from the U.S. Federal Trade Commission (“FTC”). The request was made pursuant to a November 2013 resolution by the FTC directing an investigation to determine whether unnamed persons, partnerships, corporations, or others have engaged or are engaging in deceptive or unfair acts or practices in or affecting commerce in the advertising, marketing or sale of secondary or postsecondary educational products or services, or educational accreditation products or services. The information request requires the Company to provide documents and information regarding a broad spectrum of the business and practices of its subsidiaries and institutions for the time period of January 1, 2010 to the present. The Company is cooperating with the FTC with a view towards resolving these inquiries as promptly as possible. Because the FTC inquiry is in the early stages and because of the many questions of fact and law that may arise, we cannot predict the outcome of the inquiry. Based on information available to us at present, we cannot reasonably estimate a range of potential monetary or non-monetary impact this inquiry might have on the Company because it is uncertain what remedies, if any, the FTC might ultimately seek in connection with this inquiry. SEC Inquiry As previously disclosed, on June 21, 2016, the Company received a request for documents and information from the Denver Regional Office of the Securities and Exchange Commission (“SEC”) regarding the Company’s fourth quarter 2014 classification of the Company’s Le Cordon Bleu Culinary Arts campuses as held for sale within discontinued operations, subsequent sales process and CEC’s related public disclosures. The Company is cooperating Regulatory Matters ED Inquiry and HCM1 Status In December 2011, the U.S. Department of Education (“ED”) advised the Company that it is conducting an inquiry concerning possible violations of ED misrepresentation regulations related to placement rates reported by certain of the Company’s institutions to accrediting bodies, students and potential students. This inquiry stems from the Company’s self-reporting to ED of its internal investigation into student placement determination practices at the Company’s previous Health Education segment campuses and review of placement determination practices at all of the Company’s other domestic campuses in 2011. The Company has been cooperating with ED in connection with this inquiry. If ED determines that the Company or any of its institutions violated ED misrepresentation regulations with regard to the publication or reporting of placement rates or other disclosures to students or prospective students or finds any other basis in the materials we are providing, ED may revoke, limit, suspend, delay or deny the institution’s or all of the Company’s institutions Title IV eligibility, or impose fines. In addition, all of the Company’s institutions have been issued provisional program participation agreements that extend through December 31, 2016. Each of our institutions expected to continue operations after December 31, 2016 has applied for recertification by September 30, 2016 in order to continue its eligibility to participate in Title IV Programs. We cannot predict whether, or to what extent, ED’s inquiry might impact this recertification process. In December 2011, ED also moved all of the Company’s institutions from the “advance” method of payment of Title IV Program funds to cash monitoring status (referred to as Heightened Cash Monitoring 1, or HCM1, status). If ED finds violations of the Higher Education Act or related regulations, ED may impose monetary or program level sanctions, impose some period of delay in the Company’s receipt of Title IV funds or transfer the Company’s schools to the “reimbursement” or Heightened Cash Monitoring 2 (“HCM2”) methods of payment of Title IV Program funds. While on HCM2 status, an institution must disburse its own funds to students, document the students’ eligibility for Title IV Program funds and comply with certain waiting period requirements before receiving such funds from ED, which may result in a delay in receiving those funds. The process of re-establishing a regular schedule of cash receipts for the Title IV Program funds if ED places our schools on “reimbursement” or HCM2 payment status could take several months, and would require us to fund ongoing operations substantially out of existing cash balances. If our existing cash balances are insufficient to sustain us through this transition period, we would need to pursue other sources of liquidity, which may not be available or may be costly. OIG Audit Our schools and universities are subject to periodic audits by various regulatory bodies, including the U.S. Department of Education's Office of Inspector General ("OIG"). The OIG audit services division commenced a compliance audit of CTU in June 2010, covering the period July 5, 2009 to May 16, 2010 (the “Audit Period”), to determine whether CTU had policies and procedures to ensure that CTU administered Title IV Program and other federal program funds in accordance with applicable federal law and regulation. On January 13, 2012, the OIG issued a draft report identifying three findings, including one regarding the documentation of attendance of students enrolled in online programs and one regarding the calculation of returns of Title IV Program funds arising from student withdrawals without official notice to the institution. CTU submitted a written response to the OIG, contesting these findings, on March 2, 2012. CTU disagreed with the OIG's proposed determination of what constitutes appropriate documentation or verification of online academic activity during the time period covered by the audit. CTU's response asserted that this finding was based on the retroactive application of standards adopted as part of the program integrity regulations that first went into effect on July 1, 2011. The OIG final report, along with CTU's response to the draft report, was forwarded to ED's Office of Federal Student Aid on September 21, 2012. On October 24, 2012, CTU provided a further response challenging the findings of the report directly to ED's Office of Federal Student Aid. As a result of ED’s review of these materials, on January 31, 2013, CTU received a request from ED that it perform two file reviews covering the Audit Period to determine potential liability on two discrete issues associated with one of the above findings. The first file review relates to any potential aid awarded to students who engaged in virtual classroom attendance activities prior to the official start date of a course and for which no further attendance was registered during the official class term. The second file review relates to students that were awarded and paid Pell funds for enrollment in two concurrent courses, while only registering attendance in one of the two courses. The Company completed these file reviews and provided supporting documentation to ED on April 10, 2013. On April 29, 2016, ED directed CTU to perform these same two file reviews for an additional time period that extended from the end of the Audit Period through June 30, 2011, which CTU has completed and submitted to ED. On April 29, 2016, ED also requested an additional file review related to whether CTU appropriately performed calculations regarding any required return of Title IV Program funds for students that failed to earn passing grades within a term. This additional file review covers the period from July 5, 2009 to June 30, 2011 and is a review of whether students should be deemed to have unofficially withdrawn from the institution based on each student’s last known academically-related activity. CTU is seeking reconsideration of the request for this additional file review. As of September 30, 2016, the Company has a $1.0 million reserve recorded related to this matter. This reserve does not include any amount relating to the additional file review requested by ED on April 29, 2016 because it is uncertain. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. INCOME TAXES The determination of the annual effective tax is based upon a number of significant estimates and judgments, including the estimated annual pretax income in each tax jurisdiction in which we operate and the ongoing development of tax planning strategies during the year. In addition, our provision for income taxes can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, as well as other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions. The following is a summary of our provision for (benefit from) income taxes and effective tax rate from continuing operations (dollars in thousands): For the Quarter Ended September 30, For the Year to Date Ended September 30, 2016 2015 2016 2015 Pretax (loss) income $ (479 ) $ (44,656 ) $ 23,990 $ (90,146 ) Provision for (benefit from) income taxes $ 21 $ 35 $ 8,776 $ (923 ) Effective rate 4.4 % 0.1 % 36.6 % -1.0 % As of December 31, 2015, we determined that it was more likely than not that we will realize most of our deferred tax assets and, as a result, reversed a significant portion of our valuation allowance during the fourth quarter of 2015. As of December 31, 2015, a valuation allowance of $47.5 million was maintained with respect to our foreign tax credits, separate state net operating losses and Illinois edge credits. After considering both positive and negative evidence related to the realization of these deferred tax assets we have determined that it is necessary to continue to record the valuation allowance against these credits and separate state net operating losses as of September 30, 2016. The effective tax rate for the quarter ended September 30, 2016, was primarily impacted by tax reserves recorded in the current quarter and the tax effect of expenses that are not deductible for tax purposes. The effective tax rate for the year to date ended September 30, 2016 includes $2.1 million favorable tax adjustment related to the recent closure of a federal tax audit for the tax years 2013 and 2014. The effect of this discrete item was to decrease the year to date effective rate by 8.8%. The effective rate for the quarter and year to date ended September 30, 2015, was primarily driven by maintaining a full valuation allowance against our deferred tax assets. For the quarter and year to date ended September 30, 2015, the effect of federal and state valuation losses reduced the effective tax rate benefit by 42.4% and 41.8%, respectively. We estimate that it is reasonably possible that the gross liability for unrecognized tax benefits for a variety of uncertain tax positions will decrease by up to $1.9 million in the next twelve months as a result of the completion of various tax audits currently in process and the expiration of the statute of limitations in several jurisdictions. The income tax rate for the quarter and year to date ended September 30, 2016 does not take into account the possible reduction of the liability for unrecognized tax benefits. The impact of a reduction to the liability will be treated as a discrete item in the period the reduction occurs. We recognize interest and penalties related to unrecognized tax benefits in tax expense. As of September 30, 2016, we had accrued $2.0 million as an estimate for reasonably possible interest and accrued penalties. Our tax returns are routinely examined by federal, state, local and foreign tax authorities and these audits are at various stages of completion at any given time. The Internal Revenue Service recently completed its examination of our U.S. income tax returns for the 2013 and 2014 tax years. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 10. SHARE-BASED COMPENSATION Overview of Share-Based Compensation Plans The Career Education Corporation 2016 Incentive Compensation Plan (the “2016 Plan”) was approved by the Company’s stockholders on May 24, 2016. The 2016 Plan authorizes awards of stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock, performance units, annual incentive awards, and substitute awards, which generally may be settled in cash or shares of our common stock. Any shares of our common stock that are subject to awards of stock options or stock appreciation rights payable in shares will be counted as 1.0 share for each share issued for purposes of the aggregate share limit and any shares of our common stock that are subject to any other form of award payable in shares will be counted as 1.35 shares for each share issued for purposes of the aggregate share limit. As of September 30, 2016, there were approximately 4.2 million shares of common stock available for future share-based awards under the 2016 Plan, which is net of (i) 0.2 million shares issuable upon exercise of outstanding options and (ii) less than 0.1 million shares underlying restricted stock units, which will be settled in shares of our common stock if the vesting conditions are met and thus reduce the common stock available for future share-based awards under the 2016 Plan by the amount vested. These shares have been multiplied by the applicable factor under the 2016 Plan to determine the remaining shares available as of September 30, 2016. Additionally, as of September 30, 2016, there were approximately 2.9 million shares issuable upon exercise of outstanding options and 1.7 million shares underlying restricted and deferred stock units outstanding, which will be settled in shares of our common stock if the vesting conditions are met, under the previous Career Education Corporation 2008 Incentive Compensation Plan. This plan was replaced by the 2016 Plan and effective May 24, 2016, all future awards will be made under the 2016 Plan. The vesting of all types of equity awards (stock options, stock appreciation rights, restricted stock awards, restricted stock units and deferred stock units) is subject to possible acceleration in certain circumstances. Generally, if a plan participant terminates employment for any reason other than by death or disability during the vesting period, the right to unvested equity awards is forfeited. As of September 30, 2016, we estimate that compensation expense of approximately $6.0 million will be recognized over the next four years for all unvested share-based awards that have been granted to participants, including stock options, restricted stock units and deferred stock units to be settled in shares of stock but excluding restricted stock units to be settled in cash. Stock Options. The exercise price of stock options and stock appreciation rights granted under each of the plans is equal to the fair market value of our common stock on the date of grant. Employee stock options generally become exercisable 25% per year over a four-year service period beginning on the date of grant and expire ten years from the date of grant. Non-employee directors’ stock options expire ten years from the date of grant and generally become exercisable as follows: 100% after the first anniversary of grant date or one-fourth on the grant date and one-fourth for each of the first through third anniversary of the grant date. Grants of stock options are generally only subject to the service conditions discussed previously. Stock option activity during the year to date ended September 30, 2016 under all of our plans was as follows (options in thousands): Options Weighted Average Exercise Price Outstanding as of December 31, 2015 2,658 $ 14.27 Granted 906 4.79 Exercised (75 ) 3.66 Forfeited (121 ) 5.11 Cancelled (266 ) 25.39 Outstanding as of September 30, 2016 3,102 $ 11.16 Exercisable as of September 30, 2016 1,830 $ 15.61 Restricted Stock Units to be Settled in Stock. Restricted stock units to be settled in shares of stock generally become fully vested as follows: 25% per year over a four -year service period or one-third for each of the first through third anniversary of the grant date. Certain awards granted in 2016 vest 20% after the first year, 50% after the second year and 30% after the third year and are “performance-based” awards which are subject to performance conditions that, even if the requisite service period is met, may reduce the number of units of restricted stock that vest at the end of the requisite service period or result in all units being forfeited. Also, certain awards granted in the second quarter of 2015 for retention purposes are subject to accelerated vesting and cash settlement in the event of an involuntary not-for-cause termination of employment by the Company. The following table summarizes information with respect to all outstanding restricted stock units to be settled in shares of stock under our plans during the year to date ended September 30, 2016 (units in thousands): Restricted Stock to be Settled in Shares of Stock Units Weighted Average Grant-Date Fair Value Per Unit Outstanding as of December 31, 2015 758 $ 5.55 Granted 1,556 4.58 Vested (1) (378 ) 6.00 Forfeited (192 ) 5.12 Outstanding as of September 30, 2016 1,744 $ 4.63 _____________ (1) The total vested awards include 9.2 thousand of vested restricted stock units settled in cash. As a result of the termination provision for certain awards, in the event of an involuntary not-for-cause termination of employment by the Company certain termination scenarios allow for cash-settlement. Deferred Stock Units to be Settled in Stock. During 2014, we granted deferred stock units to our non-employee directors. The deferred stock units are to be settled in shares of stock and generally vest one-third per year over a three-year service period beginning on the date of grant. Settlement of the deferred stock units and delivery of the underlying shares of stock to the plan participants does not occur until he or she ceases to provide services to the Company in the capacity of a director, employee or consultant. The following table summarizes information with respect to all deferred stock units during the year to date ended September 30, 2016 (units in thousands): Deferred Stock Units to be Settled in Shares Weighted Average Grant-Date Fair Value Per Unit Outstanding as of December 31, 2015 (1) 91 $ 4.43 Granted - - Vested (15 ) 4.39 Forfeited - - Outstanding as of September 30, 2016 (1) 76 $ 4.44 (1) Includes vested but unreleased awards. These awards are included in total outstanding awards until they are released under the terms of the agreement. Restricted Stock Units to be Settled in Cash. Restricted stock units to be settled in cash generally become fully vested 25% per year over a four-year service period beginning on the date of grant. Certain awards granted to our Chief Executive Officer in 2015 outside of the 2008 Plan vest 50% per year over a two-year service period. Cash-settled restricted stock units are recorded as liabilities as the expense is recognized and the fair value for these awards is determined at each period end date with changes in fair value recorded in our unaudited condensed consolidated statements of (loss) income and comprehensive (loss) income in the current period. Cash-settled restricted stock units are settled with a cash payment for each unit vested equal to the closing price on the vesting date. Cash-settled restricted stock units are not included in common shares reserved for issuance or available for issuance under the 2016 Plan. The following table summarizes information with respect to all cash-settled restricted stock units during the year to date ended September 30, 2016 (units in thousands): Restricted Stock Units to be Settled in Cash Outstanding as of December 31, 2015 1,575 Granted 461 Vested (606 ) Forfeited (208 ) Outstanding as of September 30, 2016 1,222 Upon vesting, based on the conditions set forth in the award agreements, these units will be settled in cash. We valued these units in accordance with the guidance set forth by FASB ASC Topic 718 – Compensation-Stock Compensation Stock-Based Compensation Expense. Total stock-based compensation expense for the quarters and years to date ended September 30, 2016 and 2015 for all types of awards was as follows (dollars in thousands): For the Quarter Ended September 30, For the Year to Date Ended September 30, Award Type 2016 2015 (1) 2016 2015 (1) Stock options $ 316 $ 289 $ 905 $ 683 Restricted stock or units settled in stock 539 687 1,330 2,214 Restricted stock units settled in cash 1,362 463 3,383 1,007 Total stock-based compensation expense $ 2,217 $ 1,439 $ 5,618 $ 3,904 (1) Stock-based compensation expense for the year to date 2015 does not reflect $1.5 million of forfeitures related to our former Chief Executive Officer’s departure which was applied against the separation agreement payment of $2.5 million. Performance Unit Awards. Performance unit awards granted during 2014, 2015 and 2016 are long-term incentive, cash-based awards. Payment of these awards is based upon a calculation of Total Shareholder Return (“TSR”) of CEC as compared to TSR across a specified peer group of our competitors over a three-year performance period ending primarily on December 31, 2016, 2017 and 2018, respectively. These awards are recorded as liabilities as the expense is recognized and fair value for these awards is revalued at each period end date with changes in fair value recorded in our unaudited condensed consolidated statements of (loss) income and comprehensive (loss) income in the current period. We recorded $2.6 million and $0.7 million of expense related to these awards for the years to date ended September 30, 2016 and September 30, 2015, respectively, with $1.7 million and $1.0 million of expense for the quarters ended September 30, 2016 and September 30, 2015, respectively. |
Weighted Average Common Shares
Weighted Average Common Shares | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Weighted Average Common Shares | 11. WEIGHTED AVERAGE COMMON SHARES Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income (loss) by the weighted average number of shares assuming dilution. Dilutive common shares outstanding is computed using the Treasury Stock Method and reflects the additional shares that would be outstanding if dilutive stock options were exercised and restricted stock units were settled for common shares during the period. The weighted average number of common shares used to compute basic and diluted net income (loss) per share for the quarters and years to date ended September 30, 2016 and 2015 were as follows: For the Quarter Ended September 30, For the Year to Date Ended September 30, 2016 (1) 2015 (1) 2016 2015 (1) Basic common shares outstanding 68,460 67,961 68,328 67,798 Common stock equivalents - - 561 - Diluted common shares outstanding 68,460 67,961 68,889 67,798 ___________________ (1) Due to the fact that we reported a loss from continuing operations for the quarters ended September 30, 2015 and 2016, and year to date ended September 30, 2015, potential common stock equivalents are excluded from the diluted common shares outstanding calculation. Per FASB ASC Topic 260 – Earnings Per Share For the year to date ended September 30, 2016, certain unexercised stock option awards are excluded from our computations of diluted earnings per share, as these shares were out-of-the-money and their effect would have been anti-dilutive. The anti-dilutive options that were excluded from our computations of diluted earnings per share were 2.6 million shares for the year to date ended September 30, 2016. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | 12. SEGMENT REPORTING Our segments are determined in accordance with FASB ASC Topic 280— Segment Reporting University Group: ☐ Colorado Technical University (CTU) ☐ American InterContinental University (AIU) Career Schools Group: Campuses included in our Career Schools segments include those which are currently being taught out or those which have completed their teach-out activities or have been sold subsequent to January 1, 2015. As a result of a change in accounting guidance, campuses which have closed or have been sold subsequent to January 1, 2015 no longer meet the criteria for discontinued operations and remain reported within continuing operations on our unaudited condensed consolidated financial statements. Campuses in teach-out employ a gradual teach-out process, enabling them to continue to operate while current students have a reasonable opportunity to complete their course of study; they no longer enroll new students. ☐ Culinary Arts includes our Le Cordon Bleu institutions in North America (“LCB”) which offer hands on educational programs in the career-oriented disciplines of culinary arts and patisserie and baking in the commercial-grade kitchens of Le Cordon Bleu. LCB also provides online programs in culinary arts and hotel and restaurant management. These campuses are all expected to complete their teach-out activities during 2017. As of September 30, 2016, students enrolled at LCB represented approximately 9% of our total enrollments. ☐ Transitional Group includes our non-LCB campuses which are in teach-out or those which have been closed or sold subsequent to January 1, 2015. Our Transitional Group offers academic programs primarily in the career-oriented discipline of health education complemented by certain programs in business studies and information technology, as well as fashion design, film and video production, graphic design, interior design and visual communications. The campuses within the Transitional Group that have not yet ceased operations as of September 30, 2016 will complete their teach-outs on varying dates through 2018. As of September 30, 2016, students enrolled at the Transitional Group campuses represented approximately 3% of our total enrollments. During the third quarter of 2016, the Company completed the teach-out of five Transitional Group campuses: Sanford-Brown Atlanta, Sanford-Brown Dallas, Sanford-Brown Ft. Lauderdale, Sanford-Brown Iselin and International Academy of Design & Technology Detroit, which continue to be reported as part of the Transitional Group as of September 30, 2016. Summary financial information by reporting segment is as follows (dollars in thousands): For the Quarter Ended September 30, Revenue Operating (Loss) Income 2016 % of Total 2015 % of Total 2016 2015 CTU (1) $ 90,921 54.2 % $ 85,433 42.0 % $ 21,486 $ 18,616 AIU (2) 48,542 29.0 % 50,688 24.9 % 291 1,695 Total University Group 139,463 83.2 % 136,121 66.9 % 21,777 20,311 Corporate and Other - NM 39 NM (5,587 ) (8,040 ) Subtotal 139,463 83.2 % 136,160 66.9 % 16,190 12,271 Culinary Arts (3) 21,369 12.7 % 41,410 20.4 % (1,801 ) (33,195 ) Transitional Group 6,793 4.1 % 25,914 12.7 % (15,095 ) (23,065 ) Total $ 167,625 100.0 % $ 203,484 100.0 % $ (706 ) $ (43,989 ) For the Year to Date Ended September 30, Revenue Operating (Loss) Income 2016 % of Total 2015 % of Total 2016 2015 CTU (1) $ 274,623 50.0 % $ 256,734 39.7 % $ 70,693 $ 57,495 AIU (2) 152,123 27.7 % 155,778 24.1 % 9,036 3,982 Total University Group 426,746 77.7 % 412,512 63.7 % 79,729 61,477 Corporate and Other - NM 117 NM (17,160 ) (20,936 ) Subtotal 426,746 77.7 % 412,629 63.7 % 62,569 40,541 Culinary Arts (3) 89,990 16.4 % 128,170 19.8 % 1,666 (43,512 ) Transitional Group 32,401 5.9 % 106,527 16.5 % (40,672 ) (85,268 ) Total $ 549,137 100.0 % $ 647,326 100.0 % $ 23,563 $ (88,239 ) Total Assets as of (4) September 30, 2016 December 31, 2015 CTU $ 73,695 $ 76,577 AIU 53,521 53,087 Total University Group 127,216 129,664 Corporate and Other 332,902 372,405 Subtotal 460,118 502,069 Culinary Arts 61,425 71,197 Transitional Group 21,120 28,584 Discontinued Operations 8,810 9,065 Total $ 551,473 $ 610,915 (1) Bad debt increased approximately 2.0% and 2.3% as a percentage of revenue for the quarter and year to date ended September 30, 2016 as compared to the respective prior periods, primarily driven by students who are experiencing a greater time lag while completing the financial aid application process due to increased verification procedures implemented by ED. (2) Bad debt remained relatively flat as a percentage of revenue for the quarter and increased approximately 1.1% as a percentage of revenue for the year to date ended September 30, 2016 as compared to the respective prior periods, primarily driven by students who are experiencing a greater time lag while completing the financial aid application process due to increased verification procedures implemented by ED. (3) The prior year quarter and year to date included $33.4 million and $43.1 million of asset impairment charges, respectively. (4) Total assets do not include intercompany receivable or payable activity between schools and corporate and investments in subsidiaries. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Summary Results of Operations for Discontinued Operations | The summary of unaudited results of operations for our discontinued operations for the quarters and years to date ended September 30, 2016 and 2015 were as follows (dollars in thousands): For the Quarter Ended September 30, For the Year to Date Ended September 30, 2016 2015 2016 2015 Revenue $ - $ 3 $ - $ 6 Total operating expenses $ 295 $ 547 $ 1,676 $ 1,636 Loss before income tax $ (295 ) $ (544 ) $ (1,676 ) $ (1,616 ) Benefit from income tax (109 ) - (626 ) - Loss from discontinued operations, net of tax $ (186 ) $ (544 ) $ (1,050 ) $ (1,616 ) Net loss per share - Basic and Diluted $ - $ (0.01 ) $ (0.01 ) $ (0.02 ) |
Assets and Liabilities of Discontinued Operations on Consolidated Balance Sheets | Assets and liabilities of discontinued operations on our condensed consolidated balance sheets as of September 30, 2016 and December 31, 2015 include the following (dollars in thousands): September 30, December 31, 2016 2015 Assets: Current assets: Receivables, net $ 176 $ 254 Total current assets 176 254 Non-current assets: Other assets, net 543 720 Deferred income tax assets, net 8,091 8,091 Total assets of discontinued operations $ 8,810 $ 9,065 Liabilities: Current liabilities: Accounts payable and accrued expenses $ 81 $ 528 Remaining lease obligations 6,923 12,539 Total current liabilities 7,004 13,067 Non-current liabilities: Remaining lease obligations 5,698 9,212 Other 164 164 Total liabilities of discontinued operations $ 12,866 $ 22,443 |
Changes in Future Remaining Lease Obligations Discontinued Operations | Changes in our future remaining lease obligations, which are reflected within current and non-current liabilities of discontinued operations on our condensed consolidated balance sheets, for the quarters and years to date ended September 30, 2016 and 2015 were as follows (dollars in thousands): Balance, Beginning of Period Charges Incurred (1) Net Cash Payments Other Balance, End of Period For the quarter ended September 30, 2016 $ 16,149 $ (479 ) $ (3,049 ) $ - $ 12,621 For the quarter ended September 30, 2015 $ 27,993 $ (151 ) $ (3,275 ) $ 50 $ 24,617 For the year to date ended September 30, 2016 $ 21,751 $ (78 ) $ (9,052 ) $ - $ 12,621 For the year to date ended September 30, 2015 $ 37,616 $ (564 ) $ (12,485 ) $ 50 $ 24,617 (1) Includes charges for vacated spaces and subsequent adjustments for accretion, revised estimates and variances between estimated and actual charges, net of any reversals for terminated lease obligations. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of Investments | Investments consist of the following as of September 30, 2016 and December 31, 2015 (dollars in thousands): September 30, 2016 Gross Unrealized Cost Gain (Loss) Fair Value Short-term investments (available for sale): Municipal bonds $ 2,250 $ - $ - $ 2,250 Non-governmental debt securities 108,987 37 (67 ) 108,957 Treasury and federal agencies 39,946 23 (23 ) 39,946 Total short-term investments 151,183 60 (90 ) 151,153 Restricted short-term investments (available for sale): Non-governmental debt securities 9,597 - - 9,597 Total investments (available for sale) $ 160,780 $ 60 $ (90 ) $ 160,750 December 31, 2015 Gross Unrealized Cost Gain (Loss) Fair Value Short-term investments (available for sale): Municipal bonds $ 1,500 $ - $ (11 ) $ 1,489 Non-governmental debt securities 76,999 - (242 ) 76,757 Treasury and federal agencies 36,779 3 (127 ) 36,655 Total short-term investments 115,278 3 (380 ) 114,901 Long-term investments (available for sale): Municipal bond 7,850 - (476 ) 7,374 Total investments (available for sale) $ 123,128 $ 3 $ (856 ) $ 122,275 |
Investments Measured at Fair Value on Recurring Basis | Investments measured at fair value on a recurring basis subject to the disclosure requirements of FASB ASC Topic 820 – Fair Value M easurements As of September 30, 2016 Level 1 Level 2 Level 3 Total Municipal bonds $ - $ 2,250 $ - $ 2,250 Non-governmental debt securities 35,368 83,186 - 118,554 Treasury and federal agencies - 39,946 - 39,946 Totals $ 35,368 $ 125,382 $ - $ 160,750 As of December 31, 2015 Level 1 Level 2 Level 3 Total Municipal bonds $ - $ 1,489 $ 7,374 $ 8,863 Non-governmental debt securities - 76,757 - 76,757 Treasury and federal agencies - 36,655 - 36,655 Totals $ - $ 114,901 $ 7,374 $ 122,275 |
Schedule of Maintenance Fee Payment to CCKF | We make periodic operating maintenance payments for our use of intelli path TM Maintenance Fee Payments For the quarter ended September 30, 2016 $ 340 For the quarter ended September 30, 2015 $ 337 For the year to date ended September 30, 2016 $ 1,027 For the year to date ended September 30, 2015 $ 1,036 |
Student Receivables (Tables)
Student Receivables (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Changes in Current and Non-Current Receivables Allowance | Changes in our current and non-current receivables allowance for the quarters and years to date ended September 30, 2016 and 2015 were as follows (dollars in thousands): Balance, Beginning of Period Charges to Expense (1) Amounts Written-off Balance, End of Period For the quarter ended September 30, 2016 $ 21,008 $ 8,457 $ (8,407 ) $ 21,058 For the quarter ended September 30, 2015 $ 18,503 $ 6,428 $ (6,213 ) $ 18,718 For the year to date ended September 30, 2016 $ 20,229 $ 23,332 $ (22,503 ) $ 21,058 For the year to date ended September 30, 2015 $ 19,097 $ 15,653 $ (16,032 ) $ 18,718 (1) Charges to expense include an offset for recoveries of amounts previously written off of $1.3 million and $1.4 million for the quarters ended September 30, 2016 and 2015, respectively, and $4.9 million and $5.1 million for the years to date ended September 30, 2016 and 2015, respectively. |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring And Related Activities [Abstract] | |
Accrual for Severance and Related Costs | The following table details the changes in our accrual for severance and related costs associated with all restructuring events for our continuing operations during the quarters and years to date ended September 30, 2016 and 2015 (dollars in thousands): Balance, Beginning of Period Severance & Related Charges (1) (2) Payments Non-cash Adjustments (3) Balance, End of Period For the quarter ended September 30, 2016 $ 11,290 $ 117 $ (1,546 ) $ 240 $ 10,101 For the quarter ended September 30, 2015 $ 12,863 $ 52 $ (2,335 ) $ (830 ) $ 9,750 For the year to date ended September 30, 2016 $ 18,985 $ 389 $ (9,176 ) $ (97 ) $ 10,101 For the year to date ended September 30, 2015 $ 2,712 $ 13,697 $ (5,399 ) $ (1,260 ) $ 9,750 (1) Includes charges related to COBRA and outplacement services which are assumed to be completed by the third month following an employee’s departure. (2) Severance payments will result in future cash expenditures through 2018. (3) Includes cancellations due to employee departures prior to agreed upon end dates, employee transfers to open positions within the organization and subsequent adjustments to severance and related costs. |
Restructuring Charges by Segment | Severance and related expenses for the quarters and years to date ended September 30, 2016 and 2015 by reporting segment is as follows (dollars in thousands): For the Quarter Ended September 30, For the Year to Date Ended September 30, 2016 2015 2016 2015 CTU $ - $ 18 $ 18 $ 306 AIU - 4 66 343 Total University Group - 22 84 649 Corporate and Other 117 - 270 4,318 Subtotal 117 22 354 4,967 Culinary Arts - - 5 265 Transitional Group - 30 30 8,465 Total $ 117 $ 52 $ 389 $ 13,697 |
Schedule of Changes in Future Minimum Lease Obligations | Changes in our future minimum lease obligations for exited space related to our continuing operations for the quarters and years to date ended September 30, 2016 and 2015 were as follows (dollars in thousands): Balance, Beginning of Period Charges Incurred (1) Net Cash Payments Other Balance, End of Period For the quarter ended September 30, 2016 $ 17,140 $ 4,912 $ (3,476 ) $ 1,303 $ 19,879 For the quarter ended September 30, 2015 $ 5,480 $ 11,107 $ (6,399 ) $ 2,242 $ 12,430 For the year to date ended September 30, 2016 $ 12,892 $ 13,994 $ (11,476 ) $ 4,469 $ 19,879 For the year to date ended September 30, 2015 $ 7,094 $ 17,527 $ (16,112 ) $ 3,921 $ 12,430 _____________ (1) Includes charges for newly vacated spaces and subsequent adjustments for accretion, revised estimates and variances between estimated and actual charges, net of any reversals for terminated lease obligations. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Summary of Provision for (Benefit from) Income Taxes and Effective Tax Rate from Continuing Operations | The following is a summary of our provision for (benefit from) income taxes and effective tax rate from continuing operations (dollars in thousands): For the Quarter Ended September 30, For the Year to Date Ended September 30, 2016 2015 2016 2015 Pretax (loss) income $ (479 ) $ (44,656 ) $ 23,990 $ (90,146 ) Provision for (benefit from) income taxes $ 21 $ 35 $ 8,776 $ (923 ) Effective rate 4.4 % 0.1 % 36.6 % -1.0 % |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Schedule of Deferred Stock Units to be Settled in Shares | The following table summarizes information with respect to all deferred stock units during the year to date ended September 30, 2016 (units in thousands): Deferred Stock Units to be Settled in Shares Weighted Average Grant-Date Fair Value Per Unit Outstanding as of December 31, 2015 (1) 91 $ 4.43 Granted - - Vested (15 ) 4.39 Forfeited - - Outstanding as of September 30, 2016 (1) 76 $ 4.44 (1) Includes vested but unreleased awards. These awards are included in total outstanding awards until they are released under the terms of the agreement. |
Schedule of Restricted Stock Units to be Settled in Cash | The following table summarizes information with respect to all cash-settled restricted stock units during the year to date ended September 30, 2016 (units in thousands): Restricted Stock Units to be Settled in Cash Outstanding as of December 31, 2015 1,575 Granted 461 Vested (606 ) Forfeited (208 ) Outstanding as of September 30, 2016 1,222 |
Summary of Total Stock Based Compensation Expense | Stock-Based Compensation Expense. Total stock-based compensation expense for the quarters and years to date ended September 30, 2016 and 2015 for all types of awards was as follows (dollars in thousands): For the Quarter Ended September 30, For the Year to Date Ended September 30, Award Type 2016 2015 (1) 2016 2015 (1) Stock options $ 316 $ 289 $ 905 $ 683 Restricted stock or units settled in stock 539 687 1,330 2,214 Restricted stock units settled in cash 1,362 463 3,383 1,007 Total stock-based compensation expense $ 2,217 $ 1,439 $ 5,618 $ 3,904 (1) Stock-based compensation expense for the year to date 2015 does not reflect $1.5 million of forfeitures related to our former Chief Executive Officer’s departure which was applied against the separation agreement payment of $2.5 million. |
Restricted Stock Units [Member] | |
Schedule of Information with Respect to all Outstanding Restricted Stock | The following table summarizes information with respect to all outstanding restricted stock units to be settled in shares of stock under our plans during the year to date ended September 30, 2016 (units in thousands): Restricted Stock to be Settled in Shares of Stock Units Weighted Average Grant-Date Fair Value Per Unit Outstanding as of December 31, 2015 758 $ 5.55 Granted 1,556 4.58 Vested (1) (378 ) 6.00 Forfeited (192 ) 5.12 Outstanding as of September 30, 2016 1,744 $ 4.63 _____________ (1) The total vested awards include 9.2 thousand of vested restricted stock units settled in cash. As a result of the termination provision for certain awards, in the event of an involuntary not-for-cause termination of employment by the Company certain termination scenarios allow for cash-settlement. |
Employee Stock Option [Member] | |
Summary of Stock Option Activity | Stock option activity during the year to date ended September 30, 2016 under all of our plans was as follows (options in thousands): Options Weighted Average Exercise Price Outstanding as of December 31, 2015 2,658 $ 14.27 Granted 906 4.79 Exercised (75 ) 3.66 Forfeited (121 ) 5.11 Cancelled (266 ) 25.39 Outstanding as of September 30, 2016 3,102 $ 11.16 Exercisable as of September 30, 2016 1,830 $ 15.61 |
Weighted Average Common Shares
Weighted Average Common Shares (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Summary of Weighted Average Numbers of Common Shares Used to Compute Basic and Diluted Net Income (Loss) Per Share | The weighted average number of common shares used to compute basic and diluted net income (loss) per share for the quarters and years to date ended September 30, 2016 and 2015 were as follows: For the Quarter Ended September 30, For the Year to Date Ended September 30, 2016 (1) 2015 (1) 2016 2015 (1) Basic common shares outstanding 68,460 67,961 68,328 67,798 Common stock equivalents - - 561 - Diluted common shares outstanding 68,460 67,961 68,889 67,798 (1) Due to the fact that we reported a loss from continuing operations for the quarters ended September 30, 2015 and 2016, and year to date ended September 30, 2015, potential common stock equivalents are excluded from the diluted common shares outstanding calculation. Per FASB ASC Topic 260 – Earnings Per Share |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Summary Financial Information by Reporting Segment | Summary financial information by reporting segment is as follows (dollars in thousands): For the Quarter Ended September 30, Revenue Operating (Loss) Income 2016 % of Total 2015 % of Total 2016 2015 CTU (1) $ 90,921 54.2 % $ 85,433 42.0 % $ 21,486 $ 18,616 AIU (2) 48,542 29.0 % 50,688 24.9 % 291 1,695 Total University Group 139,463 83.2 % 136,121 66.9 % 21,777 20,311 Corporate and Other - NM 39 NM (5,587 ) (8,040 ) Subtotal 139,463 83.2 % 136,160 66.9 % 16,190 12,271 Culinary Arts (3) 21,369 12.7 % 41,410 20.4 % (1,801 ) (33,195 ) Transitional Group 6,793 4.1 % 25,914 12.7 % (15,095 ) (23,065 ) Total $ 167,625 100.0 % $ 203,484 100.0 % $ (706 ) $ (43,989 ) For the Year to Date Ended September 30, Revenue Operating (Loss) Income 2016 % of Total 2015 % of Total 2016 2015 CTU (1) $ 274,623 50.0 % $ 256,734 39.7 % $ 70,693 $ 57,495 AIU (2) 152,123 27.7 % 155,778 24.1 % 9,036 3,982 Total University Group 426,746 77.7 % 412,512 63.7 % 79,729 61,477 Corporate and Other - NM 117 NM (17,160 ) (20,936 ) Subtotal 426,746 77.7 % 412,629 63.7 % 62,569 40,541 Culinary Arts (3) 89,990 16.4 % 128,170 19.8 % 1,666 (43,512 ) Transitional Group 32,401 5.9 % 106,527 16.5 % (40,672 ) (85,268 ) Total $ 549,137 100.0 % $ 647,326 100.0 % $ 23,563 $ (88,239 ) Total Assets as of (4) September 30, 2016 December 31, 2015 CTU $ 73,695 $ 76,577 AIU 53,521 53,087 Total University Group 127,216 129,664 Corporate and Other 332,902 372,405 Subtotal 460,118 502,069 Culinary Arts 61,425 71,197 Transitional Group 21,120 28,584 Discontinued Operations 8,810 9,065 Total $ 551,473 $ 610,915 (1) Bad debt increased approximately 2.0% and 2.3% as a percentage of revenue for the quarter and year to date ended September 30, 2016 as compared to the respective prior periods, primarily driven by students who are experiencing a greater time lag while completing the financial aid application process due to increased verification procedures implemented by ED. (2) Bad debt remained relatively flat as a percentage of revenue for the quarter and increased approximately 1.1% as a percentage of revenue for the year to date ended September 30, 2016 as compared to the respective prior periods, primarily driven by students who are experiencing a greater time lag while completing the financial aid application process due to increased verification procedures implemented by ED. (3) The prior year quarter and year to date included $33.4 million and $43.1 million of asset impairment charges, respectively. (4) Total assets do not include intercompany receivable or payable activity between schools and corporate and investments in subsidiaries. |
Description of the Company - Ad
Description of the Company - Additional Information (Detail) | Sep. 30, 2016University |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of universities | 2 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2016SegmentCmp | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Number of reporting segments | Segment | 4 |
Transitional Group [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Number of campuses completed teach out activities | Cmp | 5 |
Discontinued Operations - Summa
Discontinued Operations - Summary Results of Operations for Discontinued Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Discontinued Operations And Disposal Groups [Abstract] | ||||
Revenue | $ 3 | $ 6 | ||
Total operating expenses | $ 295 | 547 | $ 1,676 | 1,636 |
Loss before income tax | (295) | (544) | (1,676) | (1,616) |
Benefit from income tax | (109) | (626) | ||
Loss from discontinued operations, net of tax | $ (186) | $ (544) | $ (1,050) | $ (1,616) |
Net loss per share - Basic and Diluted | $ (0.01) | $ (0.01) | $ (0.02) |
Discontinued Operations - Asset
Discontinued Operations - Assets and Liabilities of Discontinued Operations on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Disposal Group Including Discontinued Operation Balance Sheet Disclosures [Abstract] | ||
Receivables, net | $ 176 | $ 254 |
Total current assets | 176 | 254 |
Other assets, net | 543 | 720 |
Deferred income tax assets, net | 8,091 | 8,091 |
Total assets of discontinued operations | 8,810 | 9,065 |
Accounts payable and accrued expenses | 81 | 528 |
Remaining lease obligations | 6,923 | 12,539 |
Total current liabilities | 7,004 | 13,067 |
Remaining lease obligations | 5,698 | 9,212 |
Other | 164 | 164 |
Total liabilities of discontinued operations | $ 12,866 | $ 22,443 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Lease expiration year | 2,020 |
Discontinued Operations - Chang
Discontinued Operations - Changes in Future Remaining Lease Obligations Discontinued Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Discontinued Operations And Disposal Groups [Abstract] | |||||
Balance, Beginning of Period | $ 16,149 | $ 27,993 | $ 21,751 | $ 37,616 | |
Charges Incurred | [1] | (479) | (151) | (78) | (564) |
Net Cash Payments | (3,049) | (3,275) | (9,052) | (12,485) | |
Other | 0 | 50 | 0 | 50 | |
Balance, End of Period | $ 12,621 | $ 24,617 | $ 12,621 | $ 24,617 | |
[1] | Includes charges for vacated spaces and subsequent adjustments for accretion, revised estimates and variances between estimated and actual charges, net of any reversals for terminated lease obligations. |
Financial Instruments - Summary
Financial Instruments - Summary of Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | $ 160,780 | $ 123,128 |
Total investments (available for sale), Gross Unrealized Gain | 60 | 3 |
Total investments (available for sale), Gross Unrealized (Loss) | (90) | (856) |
Total investments (available for sale), Fair value | 160,750 | 122,275 |
Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | 151,183 | 115,278 |
Total investments (available for sale), Gross Unrealized Gain | 60 | 3 |
Total investments (available for sale), Gross Unrealized (Loss) | (90) | (380) |
Total investments (available for sale), Fair value | 151,153 | 114,901 |
Short-term Investments [Member] | Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | 2,250 | 1,500 |
Total investments (available for sale), Gross Unrealized (Loss) | (11) | |
Total investments (available for sale), Fair value | 2,250 | 1,489 |
Short-term Investments [Member] | Non-governmental Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | 108,987 | 76,999 |
Total investments (available for sale), Gross Unrealized Gain | 37 | |
Total investments (available for sale), Gross Unrealized (Loss) | (67) | (242) |
Total investments (available for sale), Fair value | 108,957 | 76,757 |
Short-term Investments [Member] | Treasury and Federal Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | 39,946 | 36,779 |
Total investments (available for sale), Gross Unrealized Gain | 23 | 3 |
Total investments (available for sale), Gross Unrealized (Loss) | (23) | (127) |
Total investments (available for sale), Fair value | 39,946 | 36,655 |
Restricted short-term investments [Member] | Non-governmental Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | 9,597 | |
Total investments (available for sale), Fair value | $ 9,597 | |
Long Term Investments [Member] | Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | 7,850 | |
Total investments (available for sale), Gross Unrealized (Loss) | (476) | |
Total investments (available for sale), Fair value | $ 7,374 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Financial Instruments [Line Items] | |||||
Period cash equivalents and short-term investments have been in continuous unrealized loss position, years, maximum | 1 year | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | BMO Harris Bank N.A. (“BMO Harris”) [Member] | |||||
Financial Instruments [Line Items] | |||||
Revolving credit facility | $ 95,000,000 | ||||
Credit facility borrowings | $ 0 | $ 0 | |||
Revolving credit facility maturity date | Dec. 31, 2018 | ||||
CCKF [Member] | |||||
Financial Instruments [Line Items] | |||||
Percentage of investment in equity affiliate | 30.70% | 30.70% | |||
Non controlling interest | $ 3,300,000 | $ 3,300,000 | |||
Income (loss) from investment in affiliate | (200,000) | $ (1,000,000) | $ (200,000) | ||
Maximum [Member] | CCKF [Member] | |||||
Financial Instruments [Line Items] | |||||
Income (loss) from investment in affiliate | $ (100,000) | ||||
Municipal Bonds [Member] | |||||
Financial Instruments [Line Items] | |||||
Cumulative unrealized loss reversed out of accumulated other comprehensive loss | $ 500,000 |
Financial Instruments - Investm
Financial Instruments - Investments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | $ 160,750 | $ 122,275 |
Fair Value Measurements on Recurring Basis [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 160,750 | 122,275 |
Fair Value Measurements on Recurring Basis [Member] | Level 1 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 35,368 | |
Fair Value Measurements on Recurring Basis [Member] | Level 2 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 125,382 | 114,901 |
Fair Value Measurements on Recurring Basis [Member] | Level 3 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 7,374 | |
Fair Value Measurements on Recurring Basis [Member] | Municipal Bonds [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 2,250 | 8,863 |
Fair Value Measurements on Recurring Basis [Member] | Municipal Bonds [Member] | Level 2 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 2,250 | 1,489 |
Fair Value Measurements on Recurring Basis [Member] | Municipal Bonds [Member] | Level 3 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 7,374 | |
Fair Value Measurements on Recurring Basis [Member] | Non-governmental Debt Securities [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 118,554 | 76,757 |
Fair Value Measurements on Recurring Basis [Member] | Non-governmental Debt Securities [Member] | Level 1 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 35,368 | |
Fair Value Measurements on Recurring Basis [Member] | Non-governmental Debt Securities [Member] | Level 2 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 83,186 | 76,757 |
Fair Value Measurements on Recurring Basis [Member] | Treasury and Federal Agencies [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 39,946 | 36,655 |
Fair Value Measurements on Recurring Basis [Member] | Treasury and Federal Agencies [Member] | Level 2 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | $ 39,946 | $ 36,655 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Periodic Operating Maintenance Payments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Related Party Transactions [Abstract] | ||||
Maintenance Fee Payments | $ 340 | $ 337 | $ 1,027 | $ 1,036 |
Student Receivables - Additiona
Student Receivables - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Student receivables, net of allowance for doubtful accounts | $ 3,128 | $ 3,958 |
Minimum [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Student receivables write-off period, days past due | 90 days |
Student Receivables - Changes i
Student Receivables - Changes in Current and Non-Current Receivables Allowance (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Receivables [Abstract] | |||||
Balance, Beginning of Period | $ 21,008 | $ 18,503 | $ 20,229 | $ 19,097 | |
Charges to Expense | [1] | 8,457 | 6,428 | 23,332 | 15,653 |
Amounts Written-off | (8,407) | (6,213) | (22,503) | (16,032) | |
Balance, End of Period | $ 21,058 | $ 18,718 | $ 21,058 | $ 18,718 | |
[1] | Charges to expense include an offset for recoveries of amounts previously written off of $1.3 million and $1.4 million for the quarters ended September 30, 2016 and 2015, respectively, and $4.9 million and $5.1 million for the years to date ended September 30, 2016 and 2015, respectively. |
Student Receivables - Changes38
Student Receivables - Changes in Current and Non-Current Receivables Allowance (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Receivables [Abstract] | ||||
Recoveries of amounts previously written off | $ 1.3 | $ 1.4 | $ 4.9 | $ 5.1 |
Restructuring Charges - Accrual
Restructuring Charges - Accrual for Severance and Related Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Restructuring And Related Activities [Abstract] | |||||
Beginning of Period | $ 11,290 | $ 12,863 | $ 18,985 | $ 2,712 | |
Severance & Related Charges | [1],[2] | 117 | 52 | 389 | 13,697 |
Payments | (1,546) | (2,335) | (9,176) | (5,399) | |
Non-cash Adjustments | [3] | 240 | (830) | (97) | (1,260) |
End of Period | $ 10,101 | $ 9,750 | $ 10,101 | $ 9,750 | |
[1] | Includes charges related to COBRA and outplacement services which are assumed to be completed by the third month following an employee’s departure. | ||||
[2] | Severance payments will result in future cash expenditures through 2018. | ||||
[3] | Includes cancellations due to employee departures prior to agreed upon end dates, employee transfers to open positions within the organization and subsequent adjustments to severance and related costs. |
Restructuring Charges - Restruc
Restructuring Charges - Restructuring Charges by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Restructuring And Related Cost [Line Items] | |||||
Severance and related expenses | [1],[2] | $ 117 | $ 52 | $ 389 | $ 13,697 |
University Group [Member] | |||||
Restructuring And Related Cost [Line Items] | |||||
Severance and related expenses | 22 | 84 | 649 | ||
Corporate and Other [Member] | |||||
Restructuring And Related Cost [Line Items] | |||||
Severance and related expenses | 117 | 270 | 4,318 | ||
Subtotal [Member] | |||||
Restructuring And Related Cost [Line Items] | |||||
Severance and related expenses | $ 117 | 22 | 354 | 4,967 | |
Culinary Arts [Member] | |||||
Restructuring And Related Cost [Line Items] | |||||
Severance and related expenses | 5 | 265 | |||
Transitional Group [Member] | |||||
Restructuring And Related Cost [Line Items] | |||||
Severance and related expenses | 30 | 30 | 8,465 | ||
CTU [Member] | |||||
Restructuring And Related Cost [Line Items] | |||||
Severance and related expenses | 18 | 18 | 306 | ||
AIU [Member] | |||||
Restructuring And Related Cost [Line Items] | |||||
Severance and related expenses | $ 4 | $ 66 | $ 343 | ||
[1] | Includes charges related to COBRA and outplacement services which are assumed to be completed by the third month following an employee’s departure. | ||||
[2] | Severance payments will result in future cash expenditures through 2018. |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Accrual for severance and related charges | $ 7.6 |
Long term amount | 2.5 |
Accrued retention bonuses | $ 1.5 |
Lease expiration teach out campuses | 2,023 |
Charges related to remaining obligations | $ 34.6 |
Minimum [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Gross remaining lease obligations | 40 |
Maximum [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Gross remaining lease obligations | $ 50 |
Restructuring Charges - Schedul
Restructuring Charges - Schedule of Changes in Future Minimum Lease Obligations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Restructuring And Related Activities [Abstract] | ||||
Balance, Beginning of Period | $ 17,140 | $ 5,480 | $ 12,892 | $ 7,094 |
Charges Incurred | 4,912 | 11,107 | 13,994 | 17,527 |
Net Cash Payments | (3,476) | (6,399) | (11,476) | (16,112) |
Other | 1,303 | 2,242 | 4,469 | 3,921 |
Balance, End of Period | $ 19,879 | $ 12,430 | $ 19,879 | $ 12,430 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) | Apr. 22, 2011Student | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | May 23, 2012Member | Jan. 13, 2012Finding | Jul. 14, 2008Employee | Apr. 10, 2008Claim | Mar. 05, 2008Claim |
Loss Contingencies [Line Items] | ||||||||
Accrual for legal fees and settlements | $ | $ 2,600,000 | $ 2,700,000 | ||||||
Number of OIG Findings | 3 | |||||||
Number of documentation of attendance of students enrolled in CTU's | 1 | |||||||
Number of calculation of returns of Title IV Program funds | 1 | |||||||
Surrett [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of alleged claims for equitable relief | Claim | 2 | |||||||
Number of claims added for money damages | Claim | 2 | |||||||
Number of students in class | Student | 2,600 | |||||||
Opt-out period expiration date | Jun. 20, 2011 | |||||||
Number of individuals WCI file motion to compel arbitration | Member | 1,062 | |||||||
False Claims Act [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of former employees who filed complaint | Employee | 4 | |||||||
OIG Audit [Member] | Maximum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Potential liability related to audit | $ | $ 1,000,000 |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for (Benefit from) Income Taxes and Effective Tax Rate from Continuing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Pretax (loss) income | $ (479) | $ (44,656) | $ 23,990 | $ (90,146) |
Provision for (benefit from) income taxes | $ 21 | $ 35 | $ 8,776 | $ (923) |
Effective rate | 4.40% | 0.10% | 36.60% | (1.00%) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Net deferred income tax assets | $ 47.5 | |||
Effective rate tax adjustment related to federal tax, amount | $ 2.1 | |||
Decrease in effective tax rate | 8.80% | |||
Decrease in effective tax rate due to valuation allowance, percentage | 42.40% | 41.80% | ||
Decrease in unrecognized tax positions | $ 1.9 | |||
Interest and penalties | $ 2 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares issuable upon exercise of outstanding options | 3,102,000 | 3,102,000 | 2,658,000 | ||
Estimated pretax compensation expense | $ 6 | $ 6 | |||
Expiration period in years | 4 years | ||||
Service period in years | 4 years | ||||
Restricted stock units settled in cash exercisable in percentage | 25.00% | ||||
Stock compensation and recognized liability | 1.4 | $ 3.4 | |||
Long-term incentive, cash-based awards | 3 years | ||||
Performance unit award expenses | $ 1.7 | $ 1 | $ 2.6 | $ 0.7 | |
Share-based Compensation Award, Tranche One [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock awards settled in stock exercisable in percentage | 25.00% | ||||
Share-based Compensation Award, Tranche Two [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock awards settled in stock exercisable in percentage | 33.33% | ||||
Share-based Compensation Award, Tranche Three [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock awards settled in stock exercisable in percentage | 33.33% | ||||
Non-Employee Directors' Stock Options [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Expiration period in years | 10 years | ||||
Employee stock options exercisable in percentage | 100.00% | ||||
Employee Stock Option [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Expiration period in years | 10 years | ||||
Service period in years | 4 years | ||||
Employee Stock Option [Member] | Share-based Compensation Award, Tranche One [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock awards settled in stock exercisable in percentage | 25.00% | ||||
Restricted Stock Units [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares to reduce shares available to grant by upon vesting of restricted stock units | 1,744,000 | 1,744,000 | 758,000 | ||
Service period in years | 4 years | ||||
Restricted Stock Units [Member] | Share-based Compensation Award, Tranche One [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock awards settled in stock exercisable in percentage | 20.00% | ||||
Service period in years | 3 years | ||||
Restricted Stock Units [Member] | Share-based Compensation Award, Tranche Two [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock awards settled in stock exercisable in percentage | 50.00% | ||||
Service period in years | 3 years | ||||
Restricted Stock Units [Member] | Share-based Compensation Award, Tranche Three [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock awards settled in stock exercisable in percentage | 30.00% | ||||
Service period in years | 3 years | ||||
Deferred Stock Units to be Settled in Shares [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Service period in years | 3 years | ||||
2016 Incentive Compensation Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock subject to awards of stock options or stock appreciation rights payable in shares | 1 | ||||
Common stock subject to any other form of award | 1.35 | ||||
Common stock available for future share-based awards | 4,200,000 | 4,200,000 | |||
Shares issuable upon exercise of outstanding options | 200,000 | 200,000 | |||
2008 Incentive Compensation Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares issuable upon exercise of outstanding options | 2,900,000 | 2,900,000 | |||
Number of shares to reduce shares available to grant by upon vesting of restricted stock units | 1,700,000 | 1,700,000 | |||
2008 Incentive Compensation Plan [Member] | Chief Executive Officer [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Service period in years | 2 years | ||||
Restricted stock units settled in cash exercisable in percentage | 50.00% | ||||
Maximum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares to reduce shares available to grant by upon vesting of restricted stock units | 100,000 | 100,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Option Activity (Detail) shares in Thousands | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Beginning balance of Outstanding, Options | shares | 2,658 |
Granted, Options | shares | 906 |
Exercised, Options | shares | (75) |
Forfeited, Options | shares | (121) |
Cancelled, Options | shares | (266) |
Ending balance of Outstanding, Options | shares | 3,102 |
Exercisable, Options | shares | 1,830 |
Beginning balance of Outstanding, Weighted Average Exercise Price | $ / shares | $ 14.27 |
Granted, Weighted Average Exercise Price | $ / shares | 4.79 |
Exercised, Weighted Average Exercise Price | $ / shares | 3.66 |
Forfeited, Weighted Average Exercise Price | $ / shares | 5.11 |
Cancelled, Weighted Average Exercise Price | $ / shares | 25.39 |
Ending balance of Outstanding, Weighted Average Exercise Price | $ / shares | 11.16 |
Exercisable, Weighted Average Exercise Price | $ / shares | $ 15.61 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Information with Respect to all Outstanding Restricted Stock (Detail) - Restricted Stock Units [Member] | 9 Months Ended | |
Sep. 30, 2016$ / sharesshares | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Beginning balance of Outstanding Shares | shares | 758,000 | |
Granted, Shares | shares | 1,556,000 | |
Vested, Shares | shares | (378,000) | [1] |
Forfeited, Shares | shares | (192,000) | |
Ending balance of Outstanding Shares | shares | 1,744,000 | |
Beginning balance of Outstanding, Weighted Average Grant-Date Fair Value Per Share | $ / shares | $ 5.55 | |
Granted, Weighted Average Grant-Date Fair Value Per Share | $ / shares | 4.58 | |
Vested, Weighted Average Grant-Date Fair Value Per Share | $ / shares | 6 | [1] |
Forfeited, Weighted Average Grant-Date Fair Value Per Share | $ / shares | 5.12 | |
Ending balance of Outstanding, Weighted Average Grant-Date Fair Value Per Share | $ / shares | $ 4.63 | |
[1] | The total vested awards include 9.2 thousand of vested restricted stock units settled in cash. As a result of the termination provision for certain awards, in the event of an involuntary not-for-cause termination of employment by the Company certain termination scenarios allow for cash-settlement. |
Share-Based Compensation - Sc49
Share-Based Compensation - Schedule of Information with Respect to all Outstanding Restricted Stock (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2016shares | |
Restricted Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vested stock settled in cash | 9,200 |
Share-Based Compensation - Sc50
Share-Based Compensation - Schedule of Deferred Stock Units to be Settled in Shares (Detail) | 9 Months Ended | |
Sep. 30, 2016$ / sharesshares | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Beginning balance of Outstanding Shares | 91,000 | [1] |
Granted, Shares | 0 | |
Vested, Shares | (15,000) | |
Forfeited, Shares | 0 | |
Ending balance of Outstanding Shares | 76,000 | [1] |
Beginning balance of Weighted Average Grant-Date Fair Value Per Unit | $ / shares | $ 4.43 | [1] |
Vested, Weighted Average Grant-Date Fair Value Per Unit | $ / shares | 4.39 | |
Ending balance of Weighted Average Grant-Date Fair Value Per Unit | $ / shares | $ 4.44 | [1] |
[1] | Includes vested but unreleased awards. These awards are included in total outstanding awards until they are released under the terms of the agreement |
Share-Based Compensation - Sc51
Share-Based Compensation - Schedule of Restricted Stock Units to be Settled in Cash (Detail) | 9 Months Ended |
Sep. 30, 2016shares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Beginning balance of Outstanding, Stock Units to be Settled in Cash | 1,575,000 |
Stock Units to be Settled in Cash, Granted | 461,000 |
Stock Units to be Settled in Cash, Vested | (606,000) |
Stock Units to be Settled in Cash, Forfeited | (208,000) |
Ending balance of Outstanding, Stock Units to be Settled in Cash | 1,222,000 |
Share-Based Compensation - Su52
Share-Based Compensation - Summary of Total Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock based compensation expense | $ 2,217 | $ 1,439 | $ 5,618 | $ 3,904 |
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock based compensation expense | 316 | 289 | 905 | 683 |
Restricted Stock or Units Settled in Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock based compensation expense | 539 | 687 | 1,330 | 2,214 |
Restricted Stock Units to be Settled in Cash [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock based compensation expense | $ 1,362 | $ 463 | $ 3,383 | $ 1,007 |
Share-Based Compensation - Su53
Share-Based Compensation - Summary of Total Stock Based Compensation Expense (Parenthetical) (Detail) - Former Chief Executive Officer [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Forfeitures related stock-based compensation expense | $ 1.5 |
Separation agreement payment | $ 2.5 |
Weighted Average Common Share54
Weighted Average Common Shares - Summary of Weighted Average Numbers of Common Shares Used to Compute Basic and Diluted Net Income (Loss) Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | [1] | Sep. 30, 2015 | [1] | Sep. 30, 2016 | Sep. 30, 2015 | [1] | |
Earnings Per Share [Abstract] | |||||||
Basic common shares outstanding | 68,460 | 67,961 | 68,328 | 67,798 | |||
Common stock equivalents | 561 | ||||||
Diluted common shares outstanding | 68,460 | 67,961 | 68,889 | 67,798 | |||
[1] | Due to the fact that we reported a loss from continuing operations for the quarters ended September 30, 2015 and 2016, and year to date ended September 30, 2015, potential common stock equivalents are excluded from the diluted common shares outstanding calculation. Per FASB ASC Topic 260 – Earnings Per Share, an entity that reports discontinued operations shall use income or loss from continuing operations as the benchmark for calculating diluted common shares outstanding, and as such, we have zero common stock equivalents since these shares would have an anti-dilutive effect on our net loss per share for the quarters ended September 30, 2015 and 2016, and year to date ended September 30, 2015. |
Weighted Average Common Share55
Weighted Average Common Shares - Summary of Weighted Average Numbers of Common Shares Used to Compute Basic and Diluted Net Income (Loss) Per Share (Parenthetical) (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive awards excluded from computations of diluted earnings per share | 0 | 0 | 0 |
Weighted Average Common Share56
Weighted Average Common Shares - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive awards excluded from computations of diluted earnings per share | 0 | 0 | 0 | |
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive awards excluded from computations of diluted earnings per share | 2.6 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | Sep. 30, 2016Cmp |
CTU [Member] | |
Segment Reporting Information [Line Items] | |
Students enrolled expressed as percentage of enrollment | 59.00% |
AIU [Member] | |
Segment Reporting Information [Line Items] | |
Students enrolled expressed as percentage of enrollment | 29.00% |
Culinary Arts [Member] | |
Segment Reporting Information [Line Items] | |
Students enrolled expressed as percentage of enrollment | 9.00% |
Transitional Group [Member] | |
Segment Reporting Information [Line Items] | |
Students enrolled expressed as percentage of enrollment | 3.00% |
Number of campuses completed teach out activities | 5 |
Fully Online [Member] | CTU [Member] | |
Segment Reporting Information [Line Items] | |
Percentage of enrollment | 93.00% |
Fully Online [Member] | AIU [Member] | |
Segment Reporting Information [Line Items] | |
Percentage of enrollment | 93.00% |
Segment Reporting - Summary Fin
Segment Reporting - Summary Financial Information by Reporting Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 167,625 | $ 203,484 | $ 549,137 | $ 647,326 | ||
Percentage of total revenue | 100.00% | 100.00% | 100.00% | 100.00% | ||
Operating (Loss) Income | $ (706) | $ (43,989) | $ 23,563 | $ (88,239) | ||
Total Assets | [1] | 551,473 | 551,473 | $ 610,915 | ||
Discontinued Operations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Assets | [1] | 8,810 | 8,810 | 9,065 | ||
University Group [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 139,463 | $ 136,121 | $ 426,746 | $ 412,512 | ||
Percentage of total revenue | 83.20% | 66.90% | 77.70% | 63.70% | ||
Operating (Loss) Income | $ 21,777 | $ 20,311 | $ 79,729 | $ 61,477 | ||
Total Assets | [1] | 127,216 | 127,216 | 129,664 | ||
Corporate and Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 39 | 117 | ||||
Operating (Loss) Income | (5,587) | (8,040) | (17,160) | (20,936) | ||
Total Assets | [1] | 332,902 | 332,902 | 372,405 | ||
Subtotal [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 139,463 | $ 136,160 | $ 426,746 | $ 412,629 | ||
Percentage of total revenue | 83.20% | 66.90% | 77.70% | 63.70% | ||
Operating (Loss) Income | $ 16,190 | $ 12,271 | $ 62,569 | $ 40,541 | ||
Total Assets | [1] | 460,118 | 460,118 | 502,069 | ||
Culinary Arts [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [2] | $ 21,369 | $ 41,410 | $ 89,990 | $ 128,170 | |
Percentage of total revenue | [2] | 12.70% | 20.40% | 16.40% | 19.80% | |
Operating (Loss) Income | [2] | $ (1,801) | $ (33,195) | $ 1,666 | $ (43,512) | |
Total Assets | [1] | 61,425 | 61,425 | 71,197 | ||
Transitional Group [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 6,793 | $ 25,914 | $ 32,401 | $ 106,527 | ||
Percentage of total revenue | 4.10% | 12.70% | 5.90% | 16.50% | ||
Operating (Loss) Income | $ (15,095) | $ (23,065) | $ (40,672) | $ (85,268) | ||
Total Assets | [1] | 21,120 | 21,120 | 28,584 | ||
CTU [Member] | University Group [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [3] | $ 90,921 | $ 85,433 | $ 274,623 | $ 256,734 | |
Percentage of total revenue | [3] | 54.20% | 42.00% | 50.00% | 39.70% | |
Operating (Loss) Income | [3] | $ 21,486 | $ 18,616 | $ 70,693 | $ 57,495 | |
Total Assets | [1] | 73,695 | 73,695 | 76,577 | ||
AIU [Member] | University Group [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [4] | $ 48,542 | $ 50,688 | $ 152,123 | $ 155,778 | |
Percentage of total revenue | [4] | 29.00% | 24.90% | 27.70% | 24.10% | |
Operating (Loss) Income | [4] | $ 291 | $ 1,695 | $ 9,036 | $ 3,982 | |
Total Assets | [1] | $ 53,521 | $ 53,521 | $ 53,087 | ||
[1] | Total assets do not include intercompany receivable or payable activity between schools and corporate and investments in subsidiaries. | |||||
[2] | The prior year quarter and year to date included $33.4 million and $43.1 million of asset impairment charges, respectively. | |||||
[3] | Bad debt increased approximately 2.0% and 2.3% as a percentage of revenue for the quarter and year to date ended September 30, 2016 as compared to the respective prior periods, primarily driven by students who are experiencing a greater time lag while completing the financial aid application process due to increased verification procedures implemented by ED. | |||||
[4] | Bad debt remained relatively flat as a percentage of revenue for the quarter and increased approximately 1.1% as a percentage of revenue for the year to date ended September 30, 2016 as compared to the respective prior periods, primarily driven by students who are experiencing a greater time lag while completing the financial aid application process due to increased verification procedures implemented by ED. |
Segment Reporting - Summary F59
Segment Reporting - Summary Financial Information by Reporting Segment (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Asset impairment charge | $ 33,446 | $ 237 | $ 50,837 | |
Culinary Arts [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Asset impairment charge | $ 33,400 | $ 43,100 | ||
CTU [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Bad debt increase in percentage of revenue | 2.00% | 2.30% | ||
AIU [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Bad debt increase in percentage of revenue | 1.10% |