Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 15, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CECO | ||
Entity Registrant Name | CAREER EDUCATION CORP | ||
Entity Central Index Key | 1,046,568 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 69,772,910 | ||
Entity Public Float | $ 955,000,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
CURRENT ASSETS: | |||
Cash and cash equivalents, unrestricted | $ 32,394 | $ 18,110 | |
Restricted cash | 337 | 789 | |
Restricted short-term investments | 5,070 | ||
Short-term investments | 196,428 | 156,178 | |
Total cash and cash equivalents, restricted cash and short-term investments | 229,159 | 180,147 | |
Student receivables, net of allowance for doubtful accounts of $23,307 and $20,533 as of December 31, 2018 and 2017, respectively | 28,751 | 18,875 | |
Receivables, other, net | 2,567 | 1,163 | |
Prepaid expenses | 7,771 | 7,722 | |
Inventories | 763 | 1,112 | |
Other current assets | 437 | 1,319 | |
Assets of discontinued operations | 382 | ||
Total current assets | 269,448 | 210,720 | |
NON-CURRENT ASSETS: | |||
Property and equipment, net of accumulated depreciation of $198,052 and $213,825 as of December 31, 2018 and 2017, respectively | 30,048 | 33,230 | |
Goodwill | 87,356 | 87,356 | |
Intangible assets, net of amortization of $1,400 as of both December 31, 2018 and 2017 | 7,900 | 7,900 | |
Student receivables, net of allowance for doubtful accounts of $1,529 and $2,001 as of December 31, 2018 and 2017, respectively | 942 | 2,548 | |
Deferred income tax assets, net | 81,628 | 98,084 | |
Other assets | 4,993 | 5,673 | |
Assets of discontinued operations | 178 | 1,585 | |
TOTAL ASSETS | [1] | 482,493 | 447,096 |
CURRENT LIABILITIES: | |||
Accounts payable | 9,195 | 8,515 | |
Accrued expenses: | |||
Payroll and related benefits | 24,530 | 32,910 | |
Advertising and marketing costs | 9,300 | 9,245 | |
Income taxes | 1,472 | 2,185 | |
Other | 19,668 | 31,233 | |
Deferred revenue | 32,351 | 22,897 | |
Liabilities of discontinued operations | 536 | 5,701 | |
Total current liabilities | 97,052 | 112,686 | |
NON-CURRENT LIABILITIES: | |||
Deferred rent obligations | 12,745 | 15,277 | |
Other liabilities | 17,493 | 22,143 | |
Liabilities of discontinued operations | 785 | ||
Total non-current liabilities | 30,238 | 38,205 | |
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; 85,173,686 and 84,279,533 shares issued, 69,772,910 and 69,117,803 shares outstanding as of December 31, 2018 and 2017, respectively | 852 | 843 | |
Additional paid-in capital | 628,295 | 621,008 | |
Accumulated other comprehensive loss | (298) | (164) | |
Accumulated deficit | (52,946) | (108,127) | |
Treasury stock, at cost, 15,400,776 and 15,161,730 shares as of December 31, 2018 and 2017, respectively | (220,700) | (217,355) | |
Total stockholders' equity | 355,203 | 296,205 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 482,493 | $ 447,096 | |
[1] | The statement of income (loss) and comprehensive income (loss) balances including revenue, operating income (loss), depreciation and amortization and capital expenditures are presented above on a continuing operations basis. Total assets are presented on a consolidated basis including continuing and discontinued operations. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Student receivables, allowance for doubtful accounts, current | $ 23,307 | $ 20,533 |
Property and equipment, accumulated depreciation | 198,052 | 213,825 |
Intangible assets, amortization | 1,400 | 1,400 |
Student receivables, allowance for doubtful accounts, non-current | $ 1,529 | $ 2,001 |
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 | 85,173,686 | 84,279,533 |
Common stock, shares outstanding | 69,772,910 | 69,117,803 |
Treasury stock, shares | 15,400,776 | 15,161,730 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
REVENUE: | |||||||
Total revenue | [1] | $ 581,296 | $ 596,435 | $ 704,392 | |||
OPERATING EXPENSES: | |||||||
Educational services and facilities | 109,897 | 143,344 | 235,100 | ||||
General and administrative | 390,707 | 404,965 | 477,725 | ||||
Depreciation and amortization | [1] | 9,394 | 13,990 | 22,747 | |||
Asset impairment | 1,164 | ||||||
Total operating expenses | 509,998 | 562,299 | 736,736 | ||||
Operating income (loss) | [1] | 71,298 | 34,136 | (32,344) | |||
OTHER INCOME (EXPENSE): | |||||||
Interest income | 3,539 | 1,900 | 1,262 | ||||
Interest expense | (681) | (451) | (584) | ||||
Miscellaneous income | 196 | 665 | 300 | ||||
Total other income | 3,054 | 2,114 | 978 | ||||
PRETAX INCOME (LOSS) | 74,352 | 36,250 | (31,366) | ||||
Provision for (benefit from) income taxes | 18,561 | 67,125 | (16,550) | ||||
INCOME (LOSS) FROM CONTINUING OPERATIONS | 55,791 | (30,875) | (14,816) | ||||
LOSS FROM DISCONTINUED OPERATIONS, net of tax | (610) | (1,022) | (3,896) | ||||
NET INCOME (LOSS) | 55,181 | (31,897) | (18,712) | ||||
OTHER COMPREHENSIVE (LOSS) INCOME, net of tax: | |||||||
Foreign currency translation adjustments | (100) | 288 | (77) | ||||
Unrealized (losses) gains on investments | (34) | (194) | 699 | ||||
Total other comprehensive (loss) income | (134) | 94 | 622 | ||||
COMPREHENSIVE INCOME (LOSS) | $ 55,047 | $ (31,803) | $ (18,090) | ||||
NET INCOME (LOSS) PER SHARE - BASIC: | |||||||
Income (loss) from continuing operations | $ 0.80 | $ (0.45) | $ (0.22) | ||||
Loss from discontinued operations | (0.01) | (0.01) | (0.05) | ||||
Net income (loss) per share | 0.79 | [2] | (0.46) | [2] | (0.27) | ||
NET INCOME (LOSS) PER SHARE - DILUTED: | |||||||
Income (loss) from continuing operations | 0.78 | (0.45) | (0.22) | ||||
Loss from discontinued operations | (0.01) | (0.01) | (0.05) | ||||
Net income (loss) per share | $ 0.77 | [2] | $ (0.46) | [2] | $ (0.27) | ||
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||||||
Basic | 69,598 | 68,949 | [3] | 68,373 | [3] | ||
Diluted | 71,482 | 68,949 | [3] | 68,373 | [3] | ||
Tuition and Fees [Member] | |||||||
REVENUE: | |||||||
Total revenue | $ 578,545 | $ 593,849 | $ 700,525 | ||||
Other [Member] | |||||||
REVENUE: | |||||||
Total revenue | [4] | $ 2,751 | $ 2,586 | $ 3,867 | |||
[1] | The statement of income (loss) and comprehensive income (loss) balances including revenue, operating income (loss), depreciation and amortization and capital expenditures are presented above on a continuing operations basis. Total assets are presented on a consolidated basis including continuing and discontinued operations. | ||||||
[2] | Basic and diluted earnings per share are calculated independently for each of the quarters presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree with the annual earnings per share amount for the corresponding year. | ||||||
[3] | Due to the fact that we reported a loss from continuing operations for the years ended December 31, 2017 and 2016, potential common stock equivalents were 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 years ended December 31, 2017 and 2016. | ||||||
[4] | Other revenue primarily includes contract training revenue and bookstore and laptop sales. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
BALANCE at Dec. 31, 2015 | $ 337,610 | $ 830 | $ (215,606) | $ 610,784 | $ (880) | $ (57,518) |
BALANCE, shares at Dec. 31, 2015 | 82,997,000 | |||||
BALANCE, shares at Dec. 31, 2015 | (14,898,000) | |||||
Net income (loss) | (18,712) | (18,712) | ||||
Foreign currency translation | (77) | (77) | ||||
Unrealized gain (loss) on investments | 699 | 699 | ||||
COMPREHENSIVE INCOME (LOSS) | (18,090) | |||||
Share-based compensation expense: | ||||||
Stock option plans | 1,256 | 1,256 | ||||
Restricted stock award plans | 1,960 | 1,960 | ||||
Employee stock purchase plan | 21 | 21 | ||||
Common stock issued under: | ||||||
Stock option plans | $ 375 | $ 1 | 374 | |||
Stock option plan, shares | 89,773 | 90,000 | ||||
Restricted stock award plans | $ (563) | $ 3 | $ (563) | (3) | ||
Restricted stock award plan, shares | 387,000 | (121,000) | ||||
Employee stock purchase plan | 398 | $ 1 | 397 | |||
Employee stock purchase plan, shares | 64,000 | |||||
Tax benefit of stock settlements | (1,464) | (1,464) | ||||
BALANCE at Dec. 31, 2016 | 321,503 | $ 835 | $ (216,169) | 613,325 | (258) | (76,230) |
BALANCE, shares at Dec. 31, 2016 | 83,538,000 | |||||
BALANCE, shares at Dec. 31, 2016 | (15,019,000) | |||||
Net income (loss) | (31,897) | (31,897) | ||||
Foreign currency translation | 288 | 288 | ||||
Unrealized gain (loss) on investments | (194) | (194) | ||||
COMPREHENSIVE INCOME (LOSS) | (31,803) | |||||
Share-based compensation expense: | ||||||
Stock option plans | 1,585 | 1,585 | ||||
Restricted stock award plans | 3,366 | 3,366 | ||||
Employee stock purchase plan | 19 | 19 | ||||
Common stock issued under: | ||||||
Stock option plans | $ 2,360 | $ 3 | 2,357 | |||
Stock option plan, shares | 288,618 | 289,000 | ||||
Restricted stock award plans | $ (1,187) | $ 4 | $ (1,186) | (5) | ||
Restricted stock award plan, shares | 416,000 | (143,000) | ||||
Employee stock purchase plan | 362 | $ 1 | 361 | |||
Employee stock purchase plan, shares | 37,000 | |||||
BALANCE at Dec. 31, 2017 | $ 296,205 | $ 843 | $ (217,355) | 621,008 | (164) | (108,127) |
BALANCE, shares at Dec. 31, 2017 | 84,279,533 | 84,280,000 | ||||
BALANCE, shares at Dec. 31, 2017 | (15,161,730) | (15,162,000) | ||||
Net income (loss) | $ 55,181 | 55,181 | ||||
Foreign currency translation | (100) | (100) | ||||
Unrealized gain (loss) on investments | (34) | (34) | ||||
COMPREHENSIVE INCOME (LOSS) | 55,047 | |||||
Share-based compensation expense: | ||||||
Stock option plans | 1,956 | 1,956 | ||||
Restricted stock award plans | 3,641 | 3,641 | ||||
Employee stock purchase plan | 17 | 17 | ||||
Common stock issued under: | ||||||
Stock option plans | $ 1,363 | $ 2 | 1,361 | |||
Stock option plan, shares | 161,072 | 161,000 | ||||
Restricted stock award plans | $ (3,345) | $ 7 | $ (3,345) | (7) | ||
Restricted stock award plan, shares | 709,000 | (239,000) | ||||
Employee stock purchase plan | 319 | 319 | ||||
Employee stock purchase plan, shares | 24,000 | |||||
BALANCE at Dec. 31, 2018 | $ 355,203 | $ 852 | $ (220,700) | $ 628,295 | $ (298) | $ (52,946) |
BALANCE, shares at Dec. 31, 2018 | 85,173,686 | 85,174,000 | ||||
BALANCE, shares at Dec. 31, 2018 | (15,400,776) | (15,401,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income (loss) | $ 55,181 | $ (31,897) | $ (18,712) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Asset impairment | 1,164 | |||
Depreciation and amortization expense | 9,394 | 13,990 | 22,747 | |
Bad debt expense | 31,940 | 27,436 | 31,885 | |
Compensation expense related to share-based awards | 5,614 | 4,970 | 3,237 | |
Gain on disposition of property and equipment | (438) | |||
Deferred income taxes | 17,863 | 64,225 | (18,087) | |
Changes in operating assets and liabilities: | ||||
Student receivables, gross | (10,541) | 5,129 | 6,925 | |
Allowance for doubtful accounts | (29,646) | (28,075) | (29,033) | |
Other receivables, net | (1,286) | (257) | 1,127 | |
Inventories, prepaid expenses, and other current assets | 3,053 | 8,742 | 2,783 | |
Deposits and other non-current assets | 711 | 1,706 | 1,634 | |
Accounts payable | 698 | (1,588) | (16,264) | |
Accrued expenses and deferred rent obligations | (35,448) | (80,703) | 29,254 | |
Deferred tuition revenue | 9,454 | (5,467) | (11,747) | |
Net cash provided by (used in) operating activities | 56,987 | (21,789) | 6,475 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Purchases of available-for-sale investments | (309,784) | (256,243) | (160,590) | |
Sales of available-for-sale investments | 275,024 | 250,928 | 126,830 | |
Purchases of property and equipment | [1] | (6,732) | (6,332) | (4,129) |
Proceeds on the sale of assets | 3,600 | |||
Payments of cash upon sale of businesses, net of cash divested | (62) | |||
Net cash used in investing activities | (41,492) | (11,647) | (34,351) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Issuance of common stock | 1,682 | 2,722 | 773 | |
Payments on borrowings | (38,000) | |||
Payments of employee tax associated with stock compensation | (3,345) | (1,187) | (563) | |
Net cash (used in) provided by financing activities | (1,663) | 1,535 | (37,790) | |
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS: | (82) | (192) | ||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 13,832 | (31,983) | (65,858) | |
CASH AND CASH EQUIVALENTS, beginning of the year | 18,899 | 50,882 | 116,740 | |
CASH AND CASH EQUIVALENTS, end of the year | 32,731 | 18,899 | 50,882 | |
Supplemental Cash Flow Information: | ||||
Interest paid | 153 | |||
Income taxes paid | $ 266 | $ 120 | $ 334 | |
[1] | The statement of income (loss) and comprehensive income (loss) balances including revenue, operating income (loss), depreciation and amortization and capital expenditures are presented above on a continuing operations basis. Total assets are presented on a consolidated basis including continuing and discontinued operations. |
Description of the Company
Description of the Company | 12 Months Ended |
Dec. 31, 2018 | |
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 blended learning programs. Our two regionally-accredited universities – Colorado Technical University (“CTU”) (“AIU”) path ® During 2018, CEC completed the multi-year process of teaching out campuses within its All Other Campuses segment. Students enrolled at these campuses were 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 University Group institutions can be found at www.careered.com As used in this Annual Report on Form 10-K, the terms “we,” “us,” “our,” “the Company” and “CEC” refer to Career Education Corporation and our wholly-owned subsidiaries. The terms “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 institutions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Principles of Consolidation and Basis of Financial Statement Presentation These consolidated financial statements presented herein include the accounts of Career Education Corporation and our wholly-owned subsidiaries (collectively “CEC”) Our reporting segments are determined in accordance with Financial Accounting Standards Board (“FASB”) (“ASC”) Segment Reporting (comprises University Group) During 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), a new accounting standard intended to improve and converge the financial reporting requirements between U.S. GAAP and International Financial Reporting Standards, which supersedes virtually all existing revenue recognition guidance under GAAP. The fundamental principles of the new guidance are that companies should recognize revenue in a manner that reflects the timing of the transfer of services to customers and the amount of revenue recognized reflects the consideration that a company expects to receive for the goods and services provided. The new guidance establishes a five step approach for the recognition of revenue. We adopted this guidance using the modified retrospective approach which applies to contracts that have remaining obligations as of January 1, 2018 and new contracts entered into subsequent to January 1, 2018. Under the modified retrospective approach, we do not restate comparative periods on our consolidated financial statements. As a result of this change in accounting guidance, we updated our revenue recognition policies and disclosures. The guidance under Topic 606 did not impact the amount of revenue we recognized in previous periods, and also does not impact the amount of revenue recognized prospectively as our revenue recognition methodology remained relatively the same under the new guidance. The guidance under Topic 606 did impact our presentation of financial condition and disclosures. Previously, a student’s entire accounts receivable balance along with their deferred revenue balance was evaluated to determine the net position of the two and the proper reporting of that balance within student receivables, net, or within deferred revenue, net, on our consolidated balance sheets. Under Topic 606, we now separate the contract asset balance from the student receivable balance to determine the amount reported as deferred revenue on the consolidated balance sheets for each student. See Note 5 “Revenue Recognition” for more information. b. Management’s Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the U.S. (“GAAP”) c. Concentration of Credit Risk A substantial portion of credit extended to students is repaid through the students’ participation in various federal financial aid programs authorized by Title IV of the Higher Education Act of 1965, as amended (“Higher Education Act”) Title IV Programs Transfers of funds received from Title IV Programs are made in accordance with the U.S. Department of Education’s (“ED”) d. Student Receivables and Allowance for Doubtful Accounts Student receivables represent funds owed to us in exchange for the educational services that we provided to a student. Student receivables are reported net of an allowance for doubtful accounts at the end of the reporting period. Student receivables which are due to be paid in less than one year are recorded as current assets within our consolidated balance sheets. Student receivables which are due to be paid more than one year from the balance sheet date are reported as non-current assets within our consolidated balance sheets. 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 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. We extend unsecured credit to a portion of the students who are enrolled at our institutions for tuition and certain other educational costs. Based upon past experience and judgment, we establish an allowance for doubtful accounts with respect to student receivables which we estimate will ultimately not be collectible. As such, our results from operations only reflect the amount of revenue that is estimated to be reasonably collectible. Our standard allowance estimation methodology considers a number of factors that, based on our collections experience, we believe have an impact on our repayment risk and ability to collect student receivables. 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 students. Overall, our allowance estimation process for student receivables is validated by trending analysis and comparing estimated and actual performance. We monitor our collections and write-off experience to assess whether or not adjustments to our allowance percentage estimates are necessary. Changes in trends in any of the factors that we believe impact the collection of our student receivables, as noted above, or modifications to our collection practices, and other related policies may impact our estimate of our allowance for doubtful accounts and our results from operations. e. Fair Value of Financial Instruments The fair value measure of accounting for financial instruments establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The fair value for restricted short-term investments and short-term investments reported in our consolidated balance sheets are valued at Level 1 and Level 2 within the fair value hierarchy. Restricted short-term investments are comprised of certificates of deposit to provide securitization of our letters of credit pursuant to our credit agreement. See Note 4 “Financial Instruments” for further details. f. Revenue Recognition Our revenue, which is derived primarily from academic programs taught to students who attend our institutions, is generally segregated into two categories: (1) tuition and fees and (2) other. Tuition and fees represent costs to our students for educational services provided by our institutions. Our institutions charge tuition and fees at varying amounts, depending on the institution, the type of program and specific curriculum. Our institutions bill students a single charge that covers tuition, fees and required program materials, such as textbooks and supplies, which we treat as a single performance obligation. Generally, we bill student tuition at the beginning of each academic period, and recognize the tuition as revenue on a straight-line basis over the academic term, which includes any applicable externship period. As part of a student’s course of instruction, certain fees, such as technology fees, graduation fees and laboratory fees, are billed to students. These fees are earned over the applicable term and are not considered separate performance obligations. The portion of tuition and fees billed to students but not yet earned is recorded as deferred revenue and reported as a current liability on our consolidated balance sheets, as we expect to earn these revenues within the next year. A contract asset is recorded for each student for the current term for which students are enrolled for the amount billed for the current term but payment has not been received and to which the Company does not have the unconditional right to receive payment because the student has not reached the point in the current academic term at which the amount billed is no longer refundable to the student. On a student by student basis, the contract asset is offset against the deferred revenue balance for the current term and the net deferred revenue balance is reflected within current liabilities on our consolidated balance sheets. If a student withdraws from one of our institutions prior to the completion of the academic term, we refund the portion of tuition and fees already paid that, pursuant to our refund policy and applicable federal and state law and accrediting agency standards, we are not entitled to retain. Generally, the amount to be refunded is based upon the percent of the term attended and the amount of tuition and fees paid by the student as of their withdrawal date. Students are typically entitled to a partial refund through approximately halfway of their term. Pursuant to each institution’s policy, once a student reaches the point in the term where no refund is given, the student would not have a refund due if withdrawing from the institution subsequent to that date. Management reassesses collectability when a student withdraws from the institution and has unpaid tuition charges for the current term which the institution is entitled to retain per the applicable refund policy. Such unpaid charges do not meet the threshold of reasonably collectible and are recognized as revenue in accordance with ASC Topic 606 when cash is received and the contract is terminated and neither party has further performance obligations. Our institutions’ academic year is generally at least 30 weeks in length but varies both by institution and program of study and is divided by academic terms. Academic terms are determined by regulatory requirements mandated by the federal government and/or applicable accrediting body, which also vary by institution and program. Academic terms are determined by start dates, which vary by institution and program and are generally 10-11 weeks in length. Our students finance costs through a variety of funding sources, including, among others, federal loan and grant programs, institutional payment plans, employer reimbursement, Veterans’ Administration and other military funding and grants, private and institutional scholarships and cash payments. Other revenue, which consists primarily of contract training revenue and bookstore sales, is billed and recognized as goods are delivered or services are performed. Contract training revenue results from individual training courses that are stand-alone courses and not part of a degree or certificate program. Bookstore sales are primarily initiated by the student and are not included in the enrollment agreement at the onset of a student’s entrance to the institution. These types of sales constitute a separate performance obligation from classroom instruction. g. Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. The fair market value of cash and cash equivalents approximate their carrying value. The cash in the Company’s banks is not fully insured by the Federal Deposit Insurance Corporation. Restricted cash balances are used to provide securitization for letters of credit. Restricted cash balances as of December 31, 2018 and 2017 total $0.3 million and $0.8 million, respectively. Students at our institutions may receive grants, loans and work-study opportunities to fund their education under Title IV Programs. In certain instances, students may request that we retain a portion of their Title IV funds provided to them in excess of tuition billings. Students may authorize us to apply these funds to historical balances or future charges and/or distribute them directly to the student in certain cases. As of December 31, 2018, we held $6.2 million of these funds on behalf of students within cash and cash equivalents on our consolidated balance sheet. h. Discontinued Operations Discontinued operations are accounted for in accordance with FASB ASC Section 360-10-35 Property, Plant, and Equipment Effective January 1, 2015, ASC Topic 360 limits discontinued operations reporting to disposals of components of an entity that represent a strategic shift upon disposal that have or will have a major effect on an entity’s operations and financial results. We did not have any disposals since the 2015 effective date which met the revised definition of discontinued operations and accordingly all disposals since January 1, 2015 continue to be reported within continuing operations for all periods presented. i. Investments Our investments, which primarily consist of non-governmental debt securities, treasury and federal agencies, and municipal bonds are classified as “available-for-sale” and recorded at fair value. Any unrealized holding gains or temporary unrealized holding losses, net of income tax effects, are reported as a component of accumulated other comprehensive (loss) income within stockholders’ equity. Realized gains and losses are computed on the basis of specific identification and are included in miscellaneous income (expense) in our consolidated statements of income (loss) and comprehensive income (loss). We use the equity method to account for our investment in equity securities if our investment gives us the ability to exercise significant influence over operating and financial policies of the investee. We include our proportionate share of earnings and/or losses of our equity method investee in other income (expense) within our consolidated statements of income (loss) and comprehensive income (loss). The carrying value of our equity investment is reported within other non-current assets on our consolidated balance sheets. Our investment in an equity affiliate equated to a 30.7%, or $2.7 million, non-controlling interest in CCKF, a Dublin-based educational technology company providing intelligent systems to power the delivery of individualized and personalized learning. j. Inventories Inventories, consisting principally of program materials, textbooks and supplies, are stated at the lower of cost, determined on a first-in, first-out basis, or market. The cost of inventory is reflected as a component of educational services and facilities expense as the items are used or sold. k. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation and amortization are recognized using the straight-line method over the estimated useful lives of the related assets for financial reporting purposes and an accelerated method for income tax reporting purposes. Leasehold improvements are amortized on a straight-line basis over the shorter of the life of the lease or the useful life. Maintenance, repairs, minor renewals and betterments are expensed as incurred, and major improvements, which extend the useful life of the asset, are capitalized. l. Goodwill and Intangible Assets Goodwill represents the excess of cost over fair market value of identifiable net assets acquired through business purchases. In accordance with FASB ASC Topic 350 – Intangibles-Goodwill and Other (“quantitative assessment”) When performing a qualitative assessment, management must first consider events and circumstances that may affect the fair value of the reporting unit to determine whether it is necessary to perform the quantitative impairment test. Management focuses on the significant inputs and any events or circumstances that could affect the significant inputs, including, but not limited to, financial performance, such as negative or declining cash flows, or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods, legal, regulatory, contractual, competitive, economic, political, business or other factors, and industry and market considerations, such as a deteriorating operating environment or increased competition. Management evaluates all events and circumstances, including positive or mitigating factors, that could affect the significant inputs used to determine fair value. If management determines that it is not more likely than not that the goodwill of the reporting unit is impaired based upon its qualitative assessment then it does not need to perform the quantitative assessment. When performing a quantitative assessment for the annual review of goodwill balances for impairment, we estimate the fair value of each of our reporting units based on projected future operating results and cash flows, market assumptions and/or comparative market multiple methods. Determining fair value requires significant estimates and assumptions based on an evaluation of a number of factors, such as marketplace participants, relative market share, new student interest, student retention, future expansion or contraction expectations, amount and timing of future cash flows and the discount rate applied to the cash flows. Projected future operating results and cash flows used for valuation purposes do reflect improvements relative to recent historical periods with respect to, among other things, modest revenue growth and operating margins. Although we believe our projected future operating results and cash flows and related estimates regarding fair values are based on reasonable assumptions, historically projected operating results and cash flows have not always been achieved. The failure of one of our reporting units to achieve projected operating results and cash flows in the near term or long term may reduce the estimated fair value of the reporting unit below its carrying value and result in the recognition of a goodwill impairment charge. Significant management judgment is necessary to evaluate the impact of operating and macroeconomic changes and to estimate future cash flows. Assumptions used in our impairment evaluations, such as forecasted growth rates and our cost of capital, are based on the best available market information and are consistent with our internal forecasts and operating plans. In addition to cash flow estimates, our valuations are sensitive to the rate used to discount cash flows and future growth assumptions. These assumptions could be adversely impacted by certain of the risks discussed in Item 1A, “Risk Factors,” in this Annual Report on Form 10-K. Intangible assets include indefinite-lived assets. Indefinite-lived assets include our CTU trade name and accreditation rights, which are recorded at fair market value upon acquisition and subsequently reviewed on an annual basis for impairment. Accreditation rights represent the ability of our institutions to participate in Title IV Programs. See Note 9 “Goodwill and Other Intangible Assets” for further discussion. m. Impairment of Long-Lived Assets We review property and equipment and other long-lived assets for impairment on an annual basis or whenever adverse events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. If such adverse events or changes in circumstances occur, we will recognize an impairment loss if the undiscounted future cash flows expected to be generated by the assets are less than the carrying value of the related assets. The impairment loss would reduce the carrying value of the assets to their estimated fair value. See Note 7 “Property and Equipment” for further discussion. n. Contingencies During the ordinary course of business, we are subject to various claims and contingencies. In accordance with FASB ASC Topic 450 – Contingencies o. Income Taxes We are subject to the income tax laws of the U.S. and various state and local jurisdictions. These tax laws are complex and subject to interpretation. As a result, significant judgments and interpretations are required in determining our income tax provisions (benefits) and evaluating our uncertain tax positions. We account for income taxes in accordance with FASB ASC Topic 740 – Income Taxes In assessing the need for a valuation allowance and/or release of a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. Topic 740 provides that important factors in determining whether a deferred tax asset will be realized are whether there has been sufficient taxable income in recent years and whether sufficient taxable income is expected in future years in order to utilize the deferred tax asset. In evaluating the realizability of deferred income tax assets, we consider, among other things, historical levels of taxable income along with possible sources of future taxable income, which include: the expected timing of the reversals of existing temporary reporting differences, the existence of taxable income in prior carryback year(s), the expected impact of tax planning strategies that may be implemented to prevent the potential loss of future income tax benefits, expected future taxable income and earnings history exclusive of the loss that created the future deductible amount, coupled with evidence indicating the loss is not a continuing condition. Changes in, among other things, income tax legislation, statutory income tax rates, or future taxable income levels could materially impact our valuation of income tax assets and liabilities and could cause our income tax provision to vary significantly among financial reporting periods. If, based on the weight of available evidence, it is more likely than not the deferred tax assets will not be realized, we record a valuation allowance, or release all or a portion of the valuation allowance if it is more likely than not the deferred tax assets are expected to be realized. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence may be objectively verified. A high degree of judgment is required to determine if, and the extent to which, valuation allowances should be recorded against deferred tax assets. Topic 740 further clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in an income tax return. Topic 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. p. Deferred Rent Obligations Many of the real estate operating lease agreements to which we are party contain rent escalation clauses or lease incentives, such as rent abatements or tenant improvement allowances. Rent escalation clauses and lease incentives are taken into account in determining total rent expense to be recognized during the term of the lease, which begins on the date that we take control of the leased space. Renewal options are considered when evaluating the overall term of the lease. In accordance with FASB ASC Topic 840 – Leases We record tenant improvement allowances as a deferred rent obligation on our consolidated balance sheets and as a cash inflow from operating activities on our consolidated statements of cash flows. We record capital expenditures funded by tenant improvement allowances received as a leasehold improvement on our consolidated balance sheets and as an investing activity within our consolidated statements of cash flows. q. Share-Based Compensation FASB ASC Topic 718 – Compensation-Stock Compensation Our share-based awards are measured at fair value and recognized over the requisite service or performance period. The fair value of each stock option is estimated on the date of grant using the Black-Scholes option pricing model, based on the market price of the underlying common stock, expected life, expected stock price volatility and expected risk-free interest rate. Expected volatility is computed using a combination of historical volatility for a period equal to the expected term; the risk-free interest rates are based on the U.S. Treasury yield curve, with a remaining term approximately equal to the expected term used in the option pricing model. The fair value of each restricted stock unit award is estimated based on the market price of the underlying common stock on the date of the grant. The fair value of each market-based performance grant is estimated using the Monte Carlo Simulation methodology to assess the grant date fair value. We estimate forfeitures at the time of grant and revise our estimate in subsequent periods if actual forfeitures differ from those estimates. See Note 14 “Share-Based Compensation” for further discussion of our share-based compensation plans, the nature of share-based awards issued under the plans and our accounting for share-based awards. r. Advertising Costs Advertising costs are expensed as incurred. Advertising costs, which are included in general and administrative expenses on our consolidated statements of income (loss) and comprehensive income (loss), were $126.4 million, $136.1 million and $154.9 million, for the years ended December 31, 2018, 2017 and 2016, respectively. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 3. RECENT ACCOUNTING PRONOUNCEMENTS Recent accounting guidance adopted in 2018 In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Non-Employee Share-Based Payment Accounting In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 In February 2017, the FASB issued ASU No. 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), a new accounting standard intended to improve and converge the financial reporting requirements between U.S. GAAP and International Financial Reporting Standards, which supersedes virtually all existing revenue recognition guidance under GAAP. The fundamental principles of the new guidance are that companies should recognize revenue in a manner that reflects the timing of the transfer of services to customers and the amount of revenue recognized reflects the consideration that a company expects to receive for the goods and services provided. The new guidance establishes a five step approach for the recognition of revenue. For all public business entities, ASU No. 2014-09 is effective for annual periods and interim periods beginning after December 15, 2017. We completed the assessment of our evaluation of the new standard on our accounting policies, processes and system requirements and adopted this guidance beginning 2018. We have adopted this guidance using the modified retrospective approach which applies to contracts that have remaining obligations as of January 1, 2018 and new contracts entered into subsequent to January 1, 2018. Under the modified retrospective approach, we do not restate comparative periods on our consolidated financial statements. The adoption impacted the presentation of our financial condition and disclosures but did not impact our results of operations. See Note 5 “Revenue Recognition” for more information. Accounting guidance to be adopted in 2019 In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“AOCI”) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The objective of Topic 842 is to establish transparency and comparability 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, and, therefore, recognition of those lease assets and liabilities represents an improvement over previous GAAP. The accounting applied for lessors largely remained unchanged. The amendment in this ASU requires recognition of a lease liability and a right of use asset at the lease inception date. Subsequently, the FASB issued three additional Updates to the guidance as follows: In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements Targeted Improvements Narrow-Scope Improvements for Lessors Recent accounting guidance not yet adopted In August 2018, the FASB issued ASU No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | 4. FINANCIAL INSTRUMENTS Investments consist of the following as of December 31, 2018 and 2017 (dollars in thousands): December 31, 2018 Gross Unrealized Cost Gain (Loss) Fair Value Short-term investments (available for sale): Non-governmental debt securities $ 179,393 $ 35 $ (337 ) $ 179,091 Treasury and federal agencies 17,417 5 (85 ) 17,337 Total short-term investments (available for sale) $ 196,810 $ 40 $ (422 ) $ 196,428 December 31, 2017 Gross Unrealized Cost Gain (Loss) Fair Value Short-term investments (available for sale): Municipal bonds $ 830 $ - $ - $ 830 Non-governmental debt securities 125,485 7 (222 ) 125,270 Treasury and federal agencies 30,211 - (133 ) 30,078 Total short-term investments 156,526 7 (355 ) 156,178 Restricted short-term investments (available for sale): Non-governmental debt securities 5,070 - - 5,070 Total short-term investments (available for sale) $ 161,596 $ 7 $ (355 ) $ 161,248 In the table above, unrealized holding gains (losses) as of December 31, 2018 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 commercial paper and certificates of deposit. 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 prior to maturity 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 were comprised entirely of certificates of deposit, which secured our letters of credit. A schedule of available-for-sale investments segregated by their original stated terms to maturity as of December 31, 2018 and 2017 are as follows (dollars in thousands): Less than one year One to five years Six to ten years Greater than ten years Total Original stated term to maturity of available-for-sale- investments as of December 31, 2018 $ 156,657 $ 38,845 $ - $ 926 $ 196,428 Original stated term to maturity of available-for-sale- investments as of December 31, 2017 $ 113,634 $ 46,586 $ - $ 1,028 $ 161,248 Realized gains or losses resulting from sales of investments during the years ended December 31, 2018, 2017 and 2016 were not significant. Fair Value Measurements FASB ASC Topic 820 – Fair Value Measurements As of December 31, 2018, we held investments that are required to be measured at fair value on a recurring basis. These investments (available-for-sale) consist of 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 December 31, 2018 Level 1 Level 2 Level 3 Total Non-governmental debt securities $ 20,000 $ 159,091 $ - $ 179,091 Treasury and federal agencies - 17,337 - 17,337 Totals $ 20,000 $ 176,428 $ - $ 196,428 As of December 31, 2017 Level 1 Level 2 Level 3 Total Municipal bonds $ - $ 830 $ - $ 830 Non-governmental debt securities 31,500 98,840 - 130,340 Treasury and federal agencies - 30,078 - 30,078 Totals $ 31,500 $ 129,748 $ - $ 161,248 Equity Method Investment Our investment in an equity affiliate, which is recorded within other noncurrent assets on our consolidated balance sheets, represents an international investment in a private company. As of December 31, 2018, our investment in an equity affiliate equated to a 30.7%, or $2.7 million, non-controlling interest in CCKF, a Dublin-based educational technology company providing intelligent systems to power the delivery of individualized and personalized learning. For the years ended December 31, 2018, 2017 and 2016, we recorded approximately $0.4 million, $0.3 million and $0.9 million of loss, respectively, related to our proportionate investment in CCKF within miscellaneous income (expense) on our consolidated statements of income (loss) and comprehensive income (loss). We make periodic operating maintenance payments related to proprietary rights that we use in our intelli path ® Maintenance Fee Payments For the year ended December 31, 2018 $ 1,462 For the year ended December 31, 2017 $ 1,371 For the year ended December 31, 2016 $ 1,375 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 5. REVENUE RECOGNITION Disaggregation of Revenue The following tables disaggregate our revenue by major source for the years ended December 31, 2018, 2017 and 2016 For the Year Ended December 31, 2018 CTU AIU All Other Campuses Total Tuition $ 359,929 $ 196,712 $ 550 $ 557,191 Technology fees 11,560 7,590 - 19,150 Other miscellaneous fees (1) 1,769 416 19 2,204 Total tuition and fees 373,258 204,718 569 578,545 Other revenue (2) 2,512 202 37 2,751 Total revenue $ 375,770 $ 204,920 $ 606 $ 581,296 For the Year Ended December 31, 2017 CTU AIU All Other Campuses Total Tuition $ 356,091 $ 190,739 $ 26,615 $ 573,445 Technology fees 11,175 6,791 - 17,966 Other miscellaneous fees (1) 1,964 451 23 2,438 Total tuition and fees 369,230 197,981 26,638 593,849 Other revenue (2) 2,095 270 221 2,586 Total revenue $ 371,325 $ 198,251 $ 26,859 $ 596,435 For the Year Ended December 31, 2016 CTU AIU All Other Campuses Total Tuition $ 354,295 $ 185,929 $ 140,470 $ 680,694 Technology fees 10,839 6,013 3 16,855 Other miscellaneous fees (1) 1,946 855 175 2,976 Total tuition and fees 367,080 192,797 140,648 700,525 Other revenue (2) 2,239 235 1,393 3,867 Total revenue $ 369,319 $ 193,032 $ 142,041 $ 704,392 __________________ (1) Other miscellaneous fees include graduation fees, laboratory fees and activity fees. (2) Other revenue primarily includes contract training revenue and bookstore and laptop sales. Performance Obligations Our revenue, which is derived primarily from academic programs taught to students who attend our institutions, is generally segregated into two categories: (1) tuition and fees and (2) other. Tuition and fees represent costs to our students for educational services provided by our institutions. Our institutions charge tuition and fees at varying amounts, depending on the institution, the type of program and specific curriculum. Our institutions bill students a single charge that covers tuition, fees and required program materials, such as textbooks and supplies, which we treat as a single performance obligation. Generally, we bill student tuition at the beginning of each academic period, and recognize the tuition as revenue on a straight-line basis over the academic term, which includes any applicable externship period. As part of a student’s course of instruction, certain fees, such as technology fees, graduation fees and laboratory fees, are billed to students. These fees are earned over the applicable term and are not considered separate performance obligations. Other revenue, which consists primarily of contract training revenue and bookstore sales, is billed and recognized as goods are delivered or services are performed. Contract training revenue results from individual training courses that are stand-alone courses and not part of a degree or certificate program. Bookstore sales are primarily initiated by the student and are not included in the enrollment agreement at the onset of a student’s entrance to the institution. These types of sales constitute a separate performance obligation from classroom instruction. Our institutions’ academic year is generally at least 30 weeks in length but varies both by institution and program of study and is divided by academic terms. Academic terms are determined by regulatory requirements mandated by the federal government and/or applicable accrediting body, which also vary by institution and program. Academic terms are determined by start dates, which vary by institution and program and are generally 10 – 11 weeks in length. Contract Assets Prior to the adoption of ASC Topic 606, we offset our student receivable balances with deferred revenue on a student by student basis. Deferred revenue was previously stated net of outstanding student receivables on a student-by-student basis as of the end of each reporting period. Upon adoption of ASC Topic 606, we determined that a portion of the student receivable balance which was previously offset with deferred revenue now meets the definition of student receivables and is not considered a contract asset and therefore is no longer offset with deferred revenue. The previously reported balances along with the adjustment and beginning January 1, 2018 balances are provided below (dollars in thousands). December 31, 2017 Impact of Modified Retrospective Adoption of ASC 606 January 1, 2018 Post ASC 606 Adoption Student receivables, net of allowance for doubtful accounts, current $ 18,875 $ 6,663 $ 25,538 Deferred revenue $ 22,897 $ 6,663 $ 29,560 For each term, the portion of tuition and fee payments billed to students but not yet earned is recorded as deferred revenue and reported as a current liability on our consolidated balance sheets, as we expect to earn these revenues within the next year. A contract asset is recorded for each student for the current term for which they are enrolled for the amount billed for the current term that has not yet been received as payment and to which we do not have the unconditional right to receive payment because the student has not reached the point in the student’s current academic term at which the amount billed is no longer refundable to the student. On a student by student basis, the contract asset is offset against the deferred revenue balance for the current term and the net deferred revenue balance is reflected within current liabilities on our consolidated balance sheets. Due to the short-term nature of our academic terms, the contract asset balance which exists at the beginning of each quarter will no longer be a contract asset at the end of that quarter. The decrease in contract asset balances are a result of one of the following: it becomes a student receivable balance once a student reaches the point in a student’s academic term where the amount billed is no longer refundable to the student; a refund to withdrawn students for the portion entitled to be refunded under each institutions’ refund policy; or a student makes a change in the number of classes they are enrolled which may cause an adjustment to their previously billed amount. As of the end of each quarter, a new contract asset is determined on a student by student basis based on the most recently started term and a student’s progress within that term as compared to the date at which the student is no longer entitled to a refund under each institution’s refund policy. The amount of contract assets which are being offset with deferred revenue balances as of January 1, 2018 and December 31, 2018 were as follows (dollars in thousands): As of January 1, 2018 December 31, 2018 Gross deferred revenue $ 39,544 $ 51,694 Gross contract assets (9,984 ) (19,343 ) Deferred revenue, net $ 29,560 $ 32,351 Deferred Revenue Changes in our deferred revenue balances for the year ended December 31, 2018 were as follows (dollars in thousands): For the Year Ended December 31, 2018 CTU AIU All Other Campuses Total Gross deferred revenue, January 1, 2018 $ 23,933 $ 15,507 $ 104 $ 39,544 Revenue earned from balances existing as of January 1, 2018 (22,218 ) (14,086 ) (104 ) (36,408 ) Billings during period (1) 373,671 216,670 510 590,851 Revenue earned for new billings during the period (351,040 ) (190,632 ) (465 ) (542,137 ) Other adjustments (96 ) (15 ) (45 ) (156 ) Gross deferred revenue, December 31, 2018 $ 24,250 $ 27,444 $ - $ 51,694 ______________ (1) Billings during period includes adjustments for prior billings. Cash Receipts Our students finance costs through a variety of funding sources, including, among others, federal loan and grant programs, institutional payment plans, employer reimbursement, Veterans’ Administration and other military funding and grants, private and institutional scholarships and cash payments. Cash receipts from government related sources are typically received during the current academic term. We typically receive funds after the end of an academic term for students who receive employer reimbursements. Students who have not applied for any type of financial aid generally set up a payment plan with the institution and make payments on a monthly basis per the terms of the payment plan. If a student withdraws from one of our institutions prior to the completion of the academic term, we refund the portion of tuition and fees already paid that, pursuant to our refund policy and applicable federal and state law and accrediting agency standards, we are not entitled to retain. Generally, the amount to be refunded to a student is calculated based upon the percent of the term attended and the amount of tuition and fees paid by the student as of their withdrawal date. In certain circumstances, we have recognized revenue for students who have withdrawn that we are not entitled to retain. We have estimated a reserve for these limited circumstances based on historical evidence in the amount of $0.9 million as of December 31, 2018 and December 31, 2017. Students are typically entitled to a partial refund through approximately halfway of their term. Pursuant to each institution’s policy, once a student reaches the point in the term where no refund is given, the student would not have a refund due if withdrawing from the institution subsequent to that date. Management reassesses collectability when a student withdraws from the institution and has unpaid tuition charges for the current term which the institution is entitled to retain per the applicable refund policy. Such unpaid charges do not meet the threshold of reasonably collectible and are recognized as revenue in accordance with ASC Topic 606 when cash is received and the contract is terminated and neither party has further performance obligations. We have no remaining performance obligations for students who have withdrawn from our institutions, and once the refund calculation is performed and funds are returned to the student, if applicable under our refund policy, no further consideration is due back to the student. We recognized $1.4 million and $1.5 million for the years ended December 31, 2018 and 2017, respectively, for payments received from withdrawn students. Significant Judgments We analyze revenue recognition on a portfolio approach under ASC Topic 606. Significant judgment is utilized in determining the appropriate portfolios to assess for meeting the criteria to recognize revenue under ASC Topic 606. We have determined that all of our students can be grouped into one portfolio. Based on our past experience, students at different campuses, in different programs or with different funding all behave similarly. Enrollment agreements all contain similar terms, refund policies are similar across all institutions and all students work with the campus to obtain some type of funding, for example, Title IV Program funds, Veterans Administration funds, military funding, employer reimbursement or self-pay. We have significant historical data for our students which allows us to analyze collectability. We do not expect that revenue earned for the portfolio is significantly different as compared to revenue that would be earned if we were to assess each student contract separately. Significant judgment is also required to assess collectability, particularly as it relates to students seeking funding under Title IV Programs. Because students are required to provide documentation, and in some cases extensive documentation, to the Department of Education to be eligible and approved for funding, the timeframe for this process can sometimes span between 90 to 120 days. We monitor the progress of students through the eligibility and approval process and assess collectability for the portfolio each reporting period to monitor that the collectability threshold is met. For the years ended December 31, 2018, 2017 and 2016, we received a majority of our institutions’ cash receipts for tuition payments from various government agencies as well as our corporate partnerships. These cash receipts represent a substantial portion of our consolidated revenues and all have low risk of collectability. |
Student Receivables
Student Receivables | 12 Months Ended |
Dec. 31, 2018 | |
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 at the end of the reporting period. Student receivables, net, are reflected on our 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 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 To assist students in completing their educational programs, we previously provided extended payment plans to certain students. We discontinued providing extended payment plans to students during the first quarter of 2011. As of December 31, 2018 and 2017, the amount of non-current student receivables under these plans along with payment plans that are longer than 12 months in duration, net of allowance for doubtful accounts, was $0.9 million and $2.5 million, respectively. Student Receivables Valuation Allowance Changes in our current and non-current receivables allowance for the years ended December 31, 2018, 2017 and 2016 were as follows (dollars in thousands): Balance, Beginning of Period Charges to Expense (1) Amounts Written-off Balance, End of Period For the year ended December 31, 2018 $ 22,534 $ 32,042 $ (29,740 ) $ 24,836 For the year ended December 31, 2017 $ 23,142 $ 27,571 $ (28,179 ) $ 22,534 For the year ended December 31, 2016 $ 20,229 $ 32,049 $ (29,136 ) $ 23,142 (1) Charges to expense include an offset for recoveries of amounts previously written off of $5.7 million, $4.2 million and $6.2 million for the years ended December 31, 2018, 2017 and 2016, respectively. Fair Value Measurements The carrying amount reported in our 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. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 7. PROPERTY AND EQUIPMENT The cost basis and estimated useful lives of property and equipment as of December 31, 2018 and 2017 are as follows (dollars in thousands): December 31, 2018 2017 Life Computer hardware and software $ 105,175 $ 105,244 3 years Leasehold improvements 73,951 90,486 Shorter of Life of Lease or Useful Life Furniture, fixtures and equipment 37,362 40,464 5-10 years Building and improvements 8,578 8,578 15-35 years Library materials 982 1,522 10 years Vehicles 107 464 5 years Construction in progress 1,945 297 228,100 247,055 Less-accumulated depreciation (198,052 ) (213,825 ) Total property and equipment, net $ 30,048 $ 33,230 Depreciation expense for the years ended December 31, 2018, 2017 and 2016 was $9.4 million, $13.4 million and $21.9 million, respectively. There were no asset impairment charges for the years ended December 31, 2018 and 2017. Property and equipment was affected by asset impairment charges of approximately $1.2 million for the year ended December 31, 2016, primarily as a result of the reduction in carrying values for campuses that were being taught out and decisions made to exit certain leased facilities. The fair value for these assets was determined based upon management’s assumptions regarding an estimated percentage of replacement value for similar assets and estimated salvage values. Because the determination of the estimated fair value of these assets requires significant estimation and assumptions, these fair value measurements are categorized as Level 3 per ASC Topic 820. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leases | 8. LEASES We lease most of our administrative and educational facilities under non-cancelable operating leases expiring at various dates through 2028. Lease terms generally range from one to ten years with one to two renewal options for extended terms. In most cases, we are required to make additional payments under facility operating leases for taxes, insurance and other operating expenses incurred during the operating lease period. Certain of our leases contain rent escalation clauses or lease incentives, including rent abatements and tenant improvement allowances. Rent escalation clauses and lease incentives are taken into account in determining total rent expense to be recognized during the term of the lease, which begins on the date we take control of the leased space. Renewal options are considered when determining the overall lease term. In accordance with FASB ASC Topic 840— Leases Rent expense, including charges recorded for vacated space, exclusive of related taxes, insurance, and maintenance costs, for continuing operations totaled approximately $15.5 million, $28.1 million and $70.4 million for the years ended December 31, 2018, 2017 and 2016, respectively, and is reflected in educational services and facilities expense for our institutions and within general and administrative expense for our corporate offices in our consolidated statements of income (loss) and comprehensive income (loss). 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, primarily associated with our teach-out campuses. These costs are recorded within educational services and facilities expense on our consolidated statements of income (loss) and comprehensive income (loss). 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 consolidated balance sheets. Changes in our future minimum lease obligations for vacated space related to our continuing operations for the years ended December 31, 2018, 2017 and 2016 were as follows (dollars in thousands): Balance, Beginning of Period Charges Incurred (1) Net Cash Payments Other (2) Balance, End of Period For the year ended December 31, 2018 $ 20,763 $ 10,955 $ (20,659 ) $ 41 $ 11,100 For the year ended December 31, 2017 $ 36,814 $ 14,838 $ (33,313 ) $ 2,424 $ 20,763 For the year ended December 31, 2016 $ 12,892 $ 32,351 $ (16,413 ) $ 7,984 $ 36,814 (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. (2) Includes existing prepaid rent and deferred rent liability balances for newly vacated spaces that offset the losses incurred in the period recorded. As of December 31, 2018, future minimum lease payments under operating leases for continuing and discontinued operations are as follows (dollars in thousands): Operating Leases Continuing Discontinued Operations Operations Total 2019 (1) $ 21,076 $ 808 $ 21,884 2020 17,728 - 17,728 2021 12,070 - 12,070 2022 8,638 - 8,638 2023 and thereafter 22,298 - 22,298 Total $ 81,810 $ 808 $ 82,618 __________________________ (1) Amounts include payments due associated with executed early terminations of real estate leases. Of the remaining $81.8 million of lease payments for continuing operations, $14.9 million relates to our All Other Campuses leases. See Note 18 “Discontinued Operations” and Note 10 “Restructuring Charges” for further discussion. As of December 31, 2018, future minimum sublease rental income under operating leases, which will decrease our future minimum lease payments presented above, for continuing and discontinued operations is as follows (dollars in thousands): Operating Subleases Continuing Discontinued Operations Operations Total 2019 $ 3,457 $ 174 $ 3,631 2020 2,750 - 2,750 2021 1,279 - 1,279 2022 777 - 777 2023 and thereafter 328 - 328 Total $ 8,591 $ 174 $ 8,765 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 9. GOODWILL AND OTHER INTANGIBLE ASSETS There were no changes in the carrying amount of goodwill for continuing operations as of December 31, 2018 and 2017. The carrying values of goodwill for CTU and AIU were $45.9 million and $41.4 million, respectively, as of December 31, 2018 and 2017. We performed our annual impairment analysis of goodwill as of October 1, 2018 and determined that neither of our reporting units were impaired as of October 1, 2018. In assessing the fair value for CTU and AIU, we performed a qualitative assessment to determine if we believe it is more likely than not that our reporting unit’s carrying values exceed their respective fair values, in our goodwill assessment process. When performing the qualitative assessment, management first considered events and circumstances that may affect the fair value of the reporting unit to determine whether it is necessary to perform the quantitative impairment test. Management focused on the significant inputs, including its projections of revenue growth, operating expense leverage and the discount rate utilized in the prior year assessment, and any events or circumstances that could affect the significant inputs. These events and circumstances included, but were not limited to, financial performance, such as negative or declining cash flows, or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods, legal, regulatory, contractual, competitive, economic, political, business or other factors, and industry and market considerations, such as a deteriorating operating environment or increased competition. Management evaluated all events and circumstances, including positive or mitigating factors, that could affect the significant inputs used to determine fair value. Additionally, management evaluated its most recent quantitative assessment to determine by how much the previous fair value exceeded the carrying value for each indefinite-lived intangible asset. The determination of estimated fair value of each reporting unit requires significant estimates and assumptions, and as such, these fair value measurements are categorized as Level 3 per ASC Topic 820. These estimates and assumptions primarily include, but are not limited to, the discount rate, terminal growth rates, operating cash flow projections and capital expenditure forecasts. Due to the inherent uncertainty involved in deriving those estimates, actual results could differ from those estimates. We evaluate the merits of each significant assumption used, both individually and in the aggregate, to determine the fair value of each reporting unit for reasonableness. As of December 31, 2018 and 2017, the net book value of other intangible assets are as follows (dollars in thousands): As of December 31, 2018 As of December 31, 2017 Non-amortizable intangible assets: Accreditation rights $ 1,000 $ 1,000 CTU trade name 6,900 6,900 Net book value, non-amortizable intangible assets: $ 7,900 $ 7,900 As of December 31, 2018, net intangible assets include certain accreditation rights and trade names that are considered to have indefinite useful lives and, in accordance with FASB ASC Topic 350 —Intangibles—Goodwill and Other We performed our annual impairment testing of indefinite-lived intangible asset balances as of October 1, 2018 utilizing the qualitative assessment approach and concluded that no indicators existed that would suggest that it is more likely than not that the assets would be impaired. We continue to monitor the operating results and revenue projections related to our CTU trade name and accreditation rights on a quarterly basis for signs of possible declines in estimated fair value. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges | 10. 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. All of these teach-out campuses have ceased operations as of December 31, 2018. The Company continues to evaluate our corporate and campus functions to best align with our current enrollments to promote efficient and effective support. The following table details the changes in our accrual for severance and related costs associated with all restructuring events during the years ended December 31, 2018, 2017 and 2016 (dollars in thousands): Balance, Beginning Period Severance and related charges (1) Payments Non-cash adjustments (2) Balance, End of Period For the year ended December 31, 2018 $ 2,170 $ 1,898 $ (2,883 ) $ (589 ) $ 596 For the year ended December 31, 2017 $ 8,686 $ - $ (6,767 ) $ 251 $ 2,170 For the year ended December 31, 2016 $ 18,985 $ 507 $ (11,015 ) $ 209 $ 8,686 _________________________ (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 ) 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 years ended December 31, 2018, 2017 and 2016 by reporting segment is as follows (dollars in thousands): For the Year Ended December 31, 2018 2017 2016 CTU $ 782 $ - $ 18 AIU 1,083 - 66 Total University Group 1,865 - 84 Corporate and Other 33 - 388 Subtotal 1,898 - 472 All Other Campuses - - 35 Total $ 1,898 $ - $ 507 The current portion of the accrual for severance and related charges was $0.6 million and $2.1 million, respectively, as of December 31, 2018 and 2017, which is recorded within current accrued expenses – payroll and related benefits. In addition, as of December 31, 2018, we have an accrual of approximately $0.4 million related to retention bonuses that have been offered to certain employees. These amounts are recorded ratably over the period the employees are retained. In addition to the severance charges detailed above, a number of teach-out campuses will have remaining lease obligations following their campus closure, with the longest lease term being through 2021. We do not expect to have any significant future charges for remaining lease obligations related to the campuses which completed their teach-out. We have recorded approximately $78.7 million of charges related to remaining obligations for continuing operations since 2015. See Note 8 “Leases” and Note 18 “Discontinued Operations” for further information regarding remaining lease obligations of continuing operations and discontinued operations. |
Credit Agreement
Credit Agreement | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Credit Agreement | 11. CREDIT AGREEMENT On December 27, 2018, the Company; its wholly-owned subsidiary, CEC Educational Services, LLC; and the subsidiary guarantors thereunder, entered into a credit agreement with BMO Harris Bank N.A. (“BMO Harris”) (“LIBOR”) We may prepay amounts outstanding, or terminate or reduce the commitments, under the credit agreement upon three or five business days’ prior notice, respectively, in each case without premium or penalty. The credit agreement contains customary affirmative, negative and financial maintenance covenants, including a requirement to maintain a balance of cash, cash equivalents and marketable securities in our domestic accounts of at least $50.0 million at all times. The loans and letter of credit obligations under the credit agreement are required to be 100% secured with cash and marketable securities deposited with the bank. The agreement also contains customary representations and warranties, events of default, and rights and remedies upon the occurrence of any event of default, including rights to accelerate the loans, terminate the commitments and rights to realize upon the collateral securing the obligations under the credit agreement. As of December 31, 2018, there were no outstanding borrowings under the revolving credit facility. Selected details of our applicable credit agreement as of and for the years ended December 31, 2018 and 2017 were as follows (dollars in thousands): As of December 31, 2018 2017 (1) Credit Agreements: Credit facility remaining availability $ 47,782 $ 89,930 Outstanding letters of credit (2)(3) $ 2,218 $ 5,070 Availability of additional letters of credit (4) $ 22,782 $ 54,930 Weighted average daily revolving credit borrowings for the year ended $ - $ - Weighted average annual interest rate 0.00 % 0.00 % Commitment fee rate 0.30 % 0.25 % Letter of credit fee rate 1.25 % 0.75 % ________________ (1) Amounts listed as of and for the year ended December 31, 2017 relate to our previous credit agreement. ( 2 ) As of December 31, 2017, $5.1 million of restricted short-term investments provided collateral for our letters of credit. ( 3 ) As of December 31, 2018 and 2017, outstanding letters of credit not related to the credit agreements totaled $0.3 million and $0.8 million, respectively, which amounts are fully collateralized with restricted cash, which is in addition to the $5.1 million referenced in this Note 11 as of December 31, 2017. ( 4 ) The letters of credit sublimit of $25.0 million and $60.0 million as of December 31, 2018 and 2017, respectively, under the credit agreements is part of, not in addition to, the $50.0 million and $95.0 million aggregate commitments as of December 31, 2018 and 2017, respectively. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Contingencies Disclosure [Abstract] | |
Contingencies | 12. CONTINGENCIES An accrual for estimated legal fees and settlements of $6.1 million and $8.7 million at December 31, 2018 and December 31, 2017, respectively, is presented within other current liabilities on our 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. 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, reputation, results of operations, cash flows and financial position. Oregon Arbitrations. There are 319 active individual arbitration claims which were filed against Western Culinary Institute, Ltd. from March through July 2018, all of which are being administered by the American Arbitration Association. These individual arbitrations involve students who attended WCI from approximately 2008 to 2010. Each arbitration seeks monetary damages and alleges that WCI made a variety of misrepresentations to the individual student filing the arbitration, 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. The institution is no longer in operation and closed in 2017. Because of the early stages of these individual arbitrations, the unique circumstances with respect to each individual student and the many questions of fact and law that have already arisen and that may arise in the future, the outcome of each of these individual arbitrations 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 these actions because of the inherent difficulty in assessing damages, if any, in each individual arbitration and the number of individual students, if any, who might be entitled to recover damages. Accordingly, we have not recognized any liability associated with any of these actions. Multi-State AGs. On January 3, 2019, the Company entered into agreements (the “AG Agreements”) with attorneys general from 48 states and the District of Columbia to bring closure to the previously disclosed multi-state inquiries ongoing since January 2014. The state of California is expected, per its own procedures, to enter into a stipulated judgment with the Company at a later date reflecting the terms of the AG Agreements. As part of the AG Agreements, the Company expressly denies any allegations of wrongdoing. In addition, the attorneys general have provided a release of potential claims that they may have brought. Under the terms of the AG Agreements, the Company has agreed to specific financial, operational and compliance commitments as more specifically described below: Financial Commitments: • In connection with the AG Agreements, the Company recorded an aggregate pre-tax charge of $6.4 million in the fourth quarter of 2018, consisting of: o A $5.0 million payment to the collective group of attorneys general to cover expenses incurred during the course of their inquiry over the last five years (which the attorneys general will distribute as they elect). o The write-off of approximately $1.4 million of accounts receivable. Although the Company agreed to forgo efforts to collect on approximately $556 million of old accounts receivable that were incurred during the last 30 years by students at over 100 campuses who reside in participating states, all but approximately $1.4 million of these old accounts receivable were written-off in prior reporting periods over the last 30 years in the ordinary course of the Company’s operations. The agreement to forgo efforts to collect on these previously written-off receivables does not require any additional write-off expense to the Company’s financial statements. • Additionally, the Company agreed to work with a third-party administrator that will report annually on the Company’s compliance with various obligations the Company has committed to in the AG Agreements and to reimburse a total of $2.0 million of the administrator’s fees and expenses to be paid over the next three years. Operational Commitments: • The Company will provide students with additional communication of important policies, academic program information and financial aid information during the enrollment process, including a single page program disclosure as well as disclosure of applicable refund policies. • The Company will provide newly enrolling students an online financial aid interactive tool that can assist them in understanding their financial commitments. • The Company will continue its current practice of offering a no cost orientation and/or an introductory course with materials designed to support new college students (if they have less than 24 college credits). • Undergraduate students will have the ability to withdraw with no monetary obligation up to seven days after their first class at on-campus schools and up to 21 days after the start of the term at online programs (if they have less than 24 online college credits). Compliance Commitments: • The Company agreed to continue many of its existing compliance programs that it uses to monitor for accurate communication with prospective students. • The Company will continue its monitoring of third-party marketing vendors and agreed on a process to continue to hold them accountable for complying with the Company’s advertising guidelines. • The Company will continue to monitor and review conversations that its admissions and financial aid staff have with prospective students during the student recruitment process. • The Company will enhance current training to staff working with students regarding the additional information and tools that are part of the commitments in the Agreements. • The Company agreed to continue its compliance with applicable state laws in its interactions with students and prospective students. Generally, the operational aspects agreed to as part of the AG Agreements are for a six-year period. The Company entered into the AG Agreements with the attorneys general of all states except for New York and California. The state of California is expected, per its own procedures, to enter into a stipulated judgment with the Company at a later date reflecting the terms of the AG Agreements and as a result the amounts above include California. The Company had previously entered into an agreement with the attorney general of New York. FTC. On August 20, 2015, the Company received a request for information pursuant to a Civil Investigative Demand from the U.S. Federal Trade Commission . 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 continues to respond to supplemental requests for information, including a CID dated July 5, 2018 requesting specific information about telephone calls placed to prospective students from 2013 to the present. The FTC recently requested information regarding lead aggregators and our related compliance efforts. The Company is cooperating with the FTC, and is presently in discussions with the FTC’s staff regarding concerns and potential claims the staff may recommend for consideration by more senior representatives within the FTC. The Company agreed with the FTC to toll the statute of limitations from October 18, 2018 until such time as the tolling may be terminated with respect to any claims the FTC may have under the Federal Trade Commission Act or the Telemarketing and Consumer Fraud and Abuse Prevention Act. The ultimate outcome of the FTC’s inquiry is uncertain. As a result of this inquiry or pursuant to any related action against us, the Company or certain of its institutions may be subject to claims of failure to comply with federal laws or regulations, required to pay significant financial penalties and/or required to curtail or modify their operations. Based on information available to us at present and the uncertain outcome of this inquiry, we cannot reasonably estimate a range of potential loss this inquiry might have on the Company. Other . In addition to the legal proceedings and other matters described above, 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. We are also subject to a variety of other claims, lawsuits, arbitrations and investigations that arise from time to time out of the conduct of our business, including, but not limited to, matters involving prospective students, students or graduates, alleged violations of the Telephone Consumer Protection Act, both individually and on behalf of a putative class, and employment matters. While we currently believe that these additional matters, individually or in aggregate, will not have a material adverse impact on our financial position, cash flows or results of operations, these additional 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 and cash flows. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. INCOME TAXES Pretax income from continuing operations for the years ended December 31, 2018 and 2017 was $74.4 million and $36.3 million, respectively, and pretax loss from continuing operations for the year ended December 31, 2016 was $31.4 million. The provision for (benefit from) income taxes from continuing operations for the years ended December 31, 2018, 2017 and 2016 consists of the following (dollars in thousands): For the Year Ended December 31, 2018 2017 2016 Current provision State and local $ 524 $ 1,870 $ 704 Total current provision 524 1,870 704 Deferred provision (benefit) Federal 16,144 67,936 (16,247 ) State and local 1,893 (2,681 ) (1,007 ) Total deferred provision (benefit) 18,037 65,255 (17,254 ) Total provision for (benefit from) income taxes $ 18,561 $ 67,125 $ (16,550 ) A reconciliation of the statutory U.S. federal income tax rate to our effective income tax rate for continuing operations for the years ended December 31, 2018, 2017 and 2016 is as follows: For the Year Ended December 31, 2018 2017 2016 Statutory U.S. federal income tax rate 21.0 % 35.0 % (35.0 ) % State and local income taxes 3.1 2.3 (3.4 ) Stock-based compensation (1.4 ) 3.2 - Valuation allowance - 0.3 0.5 Legal settlement 1.4 - - Federal audit settlement - - (6.7 ) State audit settlement 0.1 (4.6 ) - Federal income tax rate change - 145.3 - Worthless stock - - (11.9 ) Tax credits (0.2 ) (0.7 ) (0.4 ) Other 1.0 4.4 4.1 Effective income tax rate 25.0 % 185.2 % (52.8 ) % The effective tax rate for the year ended December 31, 2018 includes a $1.0 million favorable adjustment, or 1.4% impact, associated with the tax effect of stock-based compensation, and a $1.1 million unfavorable adjustment, or 1.4% impact, related to the non-deductibility of the AG agreements. The 2018 effective tax rate also reflects the reduction in the U.S. corporate tax rate from 35% to 21% resulting from the enactment of the Tax Cuts and Jobs Act (“TCJA”) Compensation – Stock Compensation (Topic 718) A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits as of December 31, 2018, 2017 and 2016 is as follows (dollars in thousands): 2018 2017 2016 Gross unrecognized tax benefits, beginning of the year $ 8,564 $ 8,132 $ 7,737 Additions for tax positions of prior years 5 24 263 Additions for tax positions related to the current year 1,839 1,625 1,247 Reductions due to lapse of applicable statute of limitations (1,399 ) (1,217 ) (1,115 ) Subtotal 9,009 8,564 8,132 Interest and penalties 1,862 1,909 2,008 Total gross unrecognized tax benefits, end of the year $ 10,871 $ 10,473 $ 10,140 The total amount of net unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate in future periods was $8.6 million and $8.3 million for the years ended December 31, 2018 and 2017, respectively. As of December 31, 2018, our short and long-term reserves, recorded within current accrued income taxes and other non-current liabilities, respectively, related to FASB’s interpretation No. 48 of ASC Topic 740-10, Accounting for Uncertainty in Income Taxes (“FIN 48”) CEC and its subsidiaries file income tax returns in the U.S. and in various state and local jurisdictions. CEC and its subsidiaries are routinely examined by tax authorities in these jurisdictions. As of December 31, 2018, CEC had been examined by the Internal Revenue Service through our tax year ending December 31, 2014. Due to the expiration of various statutes of limitations, it is reasonably possible that CEC’s gross unrecognized tax benefits balance may change within the next twelve months by a range of zero to $1.6 million. Deferred income tax assets and liabilities result primarily from temporary differences in the recognition of various expenses for tax and financial statement purposes, and from the recognition of the tax benefits of net operating loss carry forwards. Components of deferred income tax assets and liabilities for continuing operations as of December 31, 2018 and 2017 are as follows (dollars in thousands): December 31, 2018 2017 Deferred income tax assets: Accrued occupancy $ 2,871 $ 5,133 Deferred rent obligations 1,382 1,746 Foreign tax credits 32,998 32,998 Valuation allowance foreign tax credits (32,998 ) (32,998 ) Compensation and employee benefits 7,038 8,520 Tax net operating loss carry forwards 66,319 71,911 Valuation allowance (13,656 ) (14,561 ) Allowance for doubtful accounts 3,388 2,943 Covenant not-to-compete 2 3 Accrued settlements and legal 252 2,065 Deferred compensation 494 890 Accrued restructuring and severance 156 394 Equity method for investments 525 394 General business tax credits 1,292 1,192 Illinois edge credits 1,383 2,960 Valuation allowance edge credits (1,383 ) (2,960 ) Depreciation and amortization 12,403 18,223 Other 331 491 Total deferred income tax assets 82,797 99,344 Deferred income tax liabilities: Other 1,169 1,260 Total deferred income tax liabilities 1,169 1,260 Net deferred income tax assets $ 81,628 $ 98,084 As of December 31, 2018, the Company has a gross deferred tax asset before valuation allowance of $382.8 million and a gross deferred tax liability of $4.9 million. As of December 31, 2017, the Company had a gross deferred tax asset before valuation allowance of $457.9 million and a gross deferred tax liability of $5.3 million. As of December 31, 2018, we have federal Net Operating Loss (“NOL”) In assessing the continued need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. Topic 740 provides that important factors in determining whether a deferred tax asset will be realized include whether sufficient taxable income is expected in future years in order to utilize the deferred tax asset. In evaluating the realizability of deferred income tax assets, we consider, among other things, historical levels of taxable income along with possible sources of future taxable income, which include: the expected timing of the reversals of existing temporary reporting differences, the existence of taxable income in prior carryback years, the expected impact of tax planning strategies that may be implemented to prevent the potential loss of future income tax benefits and expected future taxable income. Changes in, among other things, income tax legislation, statutory income tax rates, or future taxable income levels could materially impact our valuation of income tax assets and liabilities and could cause our income tax provision to vary significantly among financial reporting periods. If, based on the weight of available evidence, it is more likely than not the deferred tax assets will not be realized, we record a valuation allowance, or release all or a portion of the valuation allowance if it is more likely than not the deferred tax assets are expected to be realized. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence may be objectively verified. A high degree of judgment is required to determine if, and the extent to which, valuation allowances should be recorded against deferred tax assets. As of December 31, 2017, |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 14. SHARE-BASED COMPENSATION Overview of Share-Based Compensation Plans The Career Education Corporation 2016 Incentive Compensation Plan (the “2016 Plan”) As of December 31, 2018, we estimate that compensation expense of approximately $10.0 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 and cash-based performance unit awards and excludes any estimates of forfeitures. This amount generally does not include expense associated with performance-based restricted stock unit awards granted in the fourth quarter of 2018 as the Company does not currently believe it is probable that it will meet the performance targets. Stock Options. The exercise price of stock options 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 100% exercisable after the first anniversary of the grant date. Grants of stock options are generally only subject to the service conditions discussed previously. Stock option activity during the years ended December 31, 2018, 2017 and 2016 under our plans was as follows: Options Weighted Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic (in thousands) Outstanding as of December 31, 2015 2,657,723 $ 14.27 Granted 915,122 4.81 Exercised (89,773 ) 4.17 $ 189 Forfeited (120,964 ) 5.11 Cancelled (276,220 ) 24.69 Outstanding as of December 31, 2016 3,085,888 $ 11.18 Granted 365,709 8.67 Exercised (288,618 ) 8.18 $ 250 Forfeited (75,426 ) 6.97 Cancelled (219,500 ) 29.67 Outstanding as of December 31, 2017 2,868,053 $ 9.86 Granted 336,768 14.10 Exercised (161,072 ) 8.46 $ 987 Forfeited - - Cancelled (225,316 ) 20.58 Outstanding as of December 31, 2018 2,818,433 $ 9.59 6.14 years $ 12,275 Exercisable as of December 31, 2018 1,847,335 $ 10.13 5.16 years $ 8,605 The following table summarizes information with respect to all outstanding and exercisable stock options under all of our plans as of December 31, 2018: Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Number Exercisable Weighted Average Exercise Price $ 2.65 $ 4.07 326,324 $ 3.57 5.81 312,162 $ 3.54 $ 4.15 $ 4.15 250,732 $ 4.15 6.61 188,049 $ 4.15 $ 4.49 $ 4.49 683,104 $ 4.49 7.18 341,552 $ 4.49 $ 5.00 $ 6.51 346,012 $ 6.00 5.76 316,904 $ 6.01 $ 7.22 $ 8.30 324,832 $ 8.07 7.41 138,007 $ 7.76 $ 8.63 $ 13.80 377,061 $ 12.65 8.69 104,429 $ 9.65 $ 15.39 $ 22.13 312,712 $ 20.66 3.01 248,576 $ 22.02 $ 26.15 $ 26.15 36,144 $ 26.15 0.15 36,144 $ 26.15 $ 29.02 $ 29.02 41,512 $ 29.02 1.17 41,512 $ 29.02 $ 30.67 $ 30.67 120,000 $ 30.67 1.38 120,000 $ 30.67 2,818,433 $ 9.59 6.14 1,847,335 $ 10.13 Restricted Stock Units to be Settled in Stock. Restricted stock units to be settled in shares of stock generally vest 25% per year over a four-year service period. Restricted stock units which are “performance-based” are subject to performance or market 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. The performance-based restricted stock units generally vest three years after the grant date or vest 20% after the first year, 50% after the second and 30% after the third year. 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 years ended December 31, 2018, 2017 and 2016: Restricted Stock to be Settled in Shares of Stock Units Weighted Average Grant-Date Fair Value Per Unit Outstanding as of December 31, 2015 757,871 $ 5.55 Granted 1,555,828 4.58 Vested (1) (381,850 ) 5.98 Forfeited (219,645 ) 5.06 Outstanding as of December 31, 2016 1,712,204 $ 4.63 Granted 289,392 8.49 Vested (1) (422,284 ) 4.64 Forfeited (125,489 ) 5.56 Outstanding as of December 31, 2017 1,453,823 $ 5.32 Granted 1,397,644 12.91 Vested (709,132 ) 4.97 Forfeited (124,858 ) 7.14 Outstanding as of December 31, 2018 2,017,477 $ 10.59 _______________ (1) The total vested awards include 6.3 thousand and 9.2 thousand of vested restricted stock units settled in cash for the years ended December 31, 2017 and 2016, respectively. These awards granted in 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. 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 years ended December 31, 2018, 2017 and 2016: Deferred Stock Units to be Settled in Shares Weighted Average Grant-Date Fair Value Per Unit Outstanding as of December 31, 2015 (1) 90,642 $ 4.43 Granted - - Vested (14,619 ) 4.39 Forfeited - - Outstanding as of December 31, 2016 (1) 76,023 $ 4.44 Granted - - Vested - - Forfeited - - Outstanding as of December 31, 2017 (1) 76,023 $ 4.44 Granted - - Vested - - Forfeited - - Outstanding as of December 31, 2018 (1) 76,023 $ 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 vest 25% per year over a four-year service period beginning on the date of grant. 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 statement of income (loss) and comprehensive income (loss) 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 for the years ended December 31, 2018, 2017 and 2016: Restricted Stock Units to be Settled in Cash Outstanding as of December 31, 2015 1,575,050 Granted 461,428 Vested (610,680 ) Forfeited (233,720 ) Outstanding as of December 31, 2016 1,192,078 Granted - Vested (650,729 ) Forfeited (69,621 ) Outstanding as of December 31, 2017 471,728 Granted - Vested (214,192 ) Forfeited (44,742 ) Outstanding as of December 31, 2018 212,794 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 years ended December 31, 2018, 2017 and 2016 for all types of awards was as follows (dollars in thousands): December 31, Award Type 2018 2017 2016 Stock options $ 1,956 $ 1,585 $ 1,256 Restricted stock units settled in stock 3,641 3,366 1,960 Restricted stock units settled in cash 2,197 4,134 5,569 Total stock-based compensation expense $ 7,794 $ 9,085 $ 8,785 Performance Unit Awards. Performance unit awards granted during 2016 and 2017 are long-term incentive, cash-based awards. Payment of these awards is based upon a calculation of Total Shareholder Return 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, 2018 and 2019, respectively. These awards 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 statement of income (loss) and comprehensive income (loss) in the current period. We recorded $3.1 million, $5.3 million and $5.4 million of expense related to these awards for the years ended December 31, 2018, 2017 and 2016, respectively. Share-Based Awards Assumptions We recognize the value of share-based compensation as expense in our consolidated statements of income (loss) and comprehensive income (loss) during the vesting periods of the underlying share-based awards using the straight-line method. FASB ASC Topic 718 allows companies to estimate forfeitures of share-based awards at the time of grant and revise such estimates in subsequent periods if actual forfeitures differ from original projections. The fair value of each stock option award granted during the years ended December 31, 2018, 2017 and 2016 was estimated on the date of grant using the Black-Scholes-Merton option pricing model. Our determination of the fair value of each stock option is affected by our stock price on the date of grant, as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, our expected stock price volatility over the expected life of the awards and actual and projected stock option exercise behavior. The weighted average fair value per share of stock option awards granted during the years ended December 31, 2018, 2017 and 2016, and assumptions used to value stock options are as follows: For the Year Ended December 31, 2018 2017 2016 Dividend yield - - - Risk-free interest rate 2.6 % 1.9 % 1.3 % Weighted average volatility 56.1 % 64.2 % 70.4 % Expected life (in years) 5.0 5.2 4.8 Weighted average grant date fair value per share of options granted $ 7.09 $ 4.81 $ 2.75 Volatility is calculated based on the actual historical daily prices of our common stock based on the same time period of the expected term of the stock option award. During the year ended December 31, 2018, we utilized a range of expected volatility assumptions for purposes of estimating the fair value of stock options awarded during the period. Such volatility assumptions ranged from 54.2% to 64.1%. The expected life of each stock option award is estimated based primarily on our actual historical director and employee exercise behavior and forfeiture rates. The fair value of each share of restricted stock and restricted stock units to be settled in stock is equal to the fair market value of our common stock as of the date of grant, which is the closing price per share of our common stock on NASDAQ. |
Weighted Average Common Shares
Weighted Average Common Shares | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Weighted Average Common Shares | 15. 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 years ended December 31, 2018, 2017 and 2016 were as follows: For the Year Ended December 31, 2018 2017 (1) 2016 (1) Basic common shares outstanding 69,598 68,949 68,373 Common stock equivalents 1,884 - - Diluted common shares outstanding 71,482 68,949 68,373 _________________ (1) Earnings per Share For the year ended December 31, 2018, certain unexercised stock options awards are excluded from our computation 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 computation of diluted earnings per share were 0.8 million shares for the year ended December 31, 2018. In addition to the common stock issued upon the exercise of employee stock options and the vesting of restricted stock units to be settled in stock, we issued less than 0.1 million shares for each of the years ended December 31, 2018, 2017 and 2016, pursuant to our employee stock purchase plan. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 16. EMPLOYEE BENEFIT PLANS Retirement Savings and Profit Sharing Plan We maintain a defined contribution 401(k) retirement savings plan which is available to all employees who have worked greater than 1,000 hours within a fiscal year. Under the plan, an eligible employee may elect to defer receipt of a portion of their annual pay, including salary and bonus. During 2018, 2017 and 2016, we contributed this amount to the plan on the employee’s behalf and also made a matching contribution equal to 50% of the first 2% and 25% of the next 4% of the percentage of annual pay that the employee elected to defer. A participant is 100% vested at all times in the amounts the employee defers from annual pay and in the company’s matching contribution. During the years ended December 31, 2018, 2017 and 2016, we recorded expense under this plan of approximately $2.7 million, $2.8 million, and $2.9 million, respectively, net of any forfeited Company matching contributions. Employee Stock Purchase Plan We maintain an employee stock purchase plan that allows substantially all full-time and part-time employees to acquire shares of our common stock through payroll deductions over three-month offering periods. The per share purchase price is equal to 95% of the fair market value of a share of our common stock on the last day of the offering period, and purchases are limited to 10% of an employee’s salary, up to a maximum of $25,000 per calendar year. We are authorized to issue up to 4.0 million shares of common stock under the employee stock purchase plan, and, as of December 31, 2018, 3.3 million shares of common stock have been issued under the plan. Share-based compensation expense recorded during the years ended December 31, 2018, 2017 and 2016 in connection with the compensatory elements of our employee stock purchase plan was not significant. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | 17. SEGMENT REPORTING Our segments are determined in accordance with FASB ASC Topic 280— Segment Reporting Our three reporting segments are described below. ☐ Colorado Technical University (CTU) places a strong focus on providing industry-relevant degree programs to meet the needs of our non-traditional students for career advancement and of employers for a well-educated workforce and offers academic programs in the career-oriented disciplines of business studies, nursing, computer science, engineering, information systems and technology, cybersecurity, criminal justice and healthcare management. Students pursue their degrees through fully-online programs, local campuses and blended formats which combine campus-based and online education. As of December 31, 2018, students enrolled at CTU represented approximately 66% of our total enrollments. Approximately 93% of CTU’s enrollments are fully online. ☐ American InterContinental University (AIU) focuses on helping busy non-traditional students get the degree they need to move forward in their career as efficiently as possible and offers academic programs in the career-oriented disciplines of business studies, information technologies, education and criminal justice. Students pursue their degrees through fully-online programs, local campuses and blended formats which combine campus-based and online education. As of December 31, 2018, students enrolled at AIU represented approximately 34% of our total enrollments. Approximately 94% of AIU’s enrollments are fully online. ☐ All Other Campuses includes those campuses 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 consolidated financial statements. Our All Other Campuses segment includes former campuses in the following two categories: • Our Le Cordon Bleu institutions in North America (“LCB”) • Our non-LCB campuses which have completed their teach-out or those which have been closed or sold subsequent to January 1, 2015. These non-LCB campuses previously offered academic programs in career-oriented disciplines complemented by certain programs in business studies and information technology. During 2018, we completed the teach-out of all remaining non-LCB campuses. Beginning in 2019, the Company will no longer report results for closed campuses separately as these campuses will no longer meet the definition of an operating segment under ASC Topic 280. Any remaining results of operations, which would primarily consist of occupancy expenses for any remaining properties, will be reported within Corporate and Other beginning January 1, 2019. We evaluate segment performance based on operating results. Adjustments to reconcile segment results to consolidated results are included under the caption “Corporate and Other,” which primarily includes unallocated corporate activity and eliminations. Summary financial information by reporting segment is as follows (dollars in thousands): Revenue Operating Income (Loss) Depreciation and Amortization Capital Expenditures Total Assets For the Year Ended December 31, 2018 (1) CTU $ 375,770 $ 111,623 $ 5,310 $ 168 $ 76,713 AIU 204,920 8,176 3,582 201 59,133 Total University Group 580,690 119,799 8,892 369 135,846 Corporate and Other - (16,598 ) 369 6,363 330,132 Subtotal 580,690 103,201 9,261 6,732 465,978 All Other Campuses (2) 606 (31,903 ) 133 - 16,337 Discontinued Operations 178 Total $ 581,296 $ 71,298 $ 9,394 $ 6,732 $ 482,493 For the Year Ended December 31, 2017 (1) CTU $ 371,325 $ 109,202 $ 2,047 $ 74 $ 72,988 AIU 198,251 8,401 1,752 79 51,832 Total University Group 569,576 117,603 3,799 153 124,820 Corporate and Other - (22,067 ) 6,527 6,179 291,211 Subtotal 569,576 95,536 10,326 6,332 416,031 All Other Campuses (3) 26,859 (61,400 ) 3,664 - 29,098 Discontinued Operations 1,967 Total $ 596,435 $ 34,136 $ 13,990 $ 6,332 $ 447,096 For the Year Ended December 31, 2016 (1) CTU $ 369,319 $ 99,412 $ 2,157 $ 675 AIU (4) 193,032 (29,598 ) 1,687 406 Total University Group 562,351 69,814 3,844 1,081 Corporate and Other - (25,097 ) 7,320 2,512 Subtotal 562,351 44,717 11,164 3,593 All Other Campuses (5) 142,041 (77,061 ) 11,583 536 Discontinued Operations Total $ 704,392 $ (32,344 ) $ 22,747 $ 4,129 (1) The statement of income (loss) and comprehensive income (loss) balances including revenue, operating income (loss), depreciation and amortization and capital expenditures are presented above on a continuing operations basis. Total assets are presented on a consolidated basis including continuing and discontinued operations. For the year ended December 31, 2018, segment results included: (2) All Other Campuses: $14.6 million of charges related to significant legal settlements and $9.4 million of charges related to remaining lease obligations of vacated space. For the year ended December 31, 2017, segment results included: ( 3 ) All Other Campuses: $6.5 million charge related to a significant legal settlement and $14.8 million of charges related to remaining lease obligations of vacated space. For the year ended December 31, 2016, segment results included: ( 4 ) AIU: $32.0 million charge related to a significant legal settlement. ( 5 ) All Other Campuses: $31.0 million of charges related to remaining lease obligations of vacated space. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | 18. DISCONTINUED OPERATIONS As of December 31, 2018, the results of operations for campuses that have ceased operations prior to 2015 are presented within discontinued operations. Prior to January 1, 2015, our teach-out campuses met the criteria for discontinued operations upon completion of their teach-out as defined under FASB ASC Topic 205 – Presentation of Financial Statements Results of Discontinued Operations Combined summary results of operations for our discontinued operations for the years ended December 31, 2018, 2017, and 2016 were as follows (dollars in thousands): For the Year Ended December 31, 2018 2017 2016 Total operating expenses $ 1,089 $ 2,310 $ 6,586 Loss before income tax $ (1,089 ) $ (2,268 ) $ (6,586 ) Benefit from income tax (479 ) (1,246 ) (2,690 ) Loss from discontinued operations, net of tax $ (610 ) $ (1,022 ) $ (3,896 ) Assets and Liabilities of Discontinued Operations Assets and liabilities of discontinued operations on our consolidated balance sheets as of December 31, 2018 and 2017 include the following (dollars in thousands): As of December 31, 2018 2017 Assets: Current assets: Receivables, net $ - $ 382 Total current assets - 382 Non-current assets: Deferred income tax assets, net 178 1,585 Total assets of discontinued operations $ 178 $ 1,967 Liabilities: Current liabilities: Accounts payable and accrued expenses $ 51 $ 185 Remaining lease obligations 485 5,516 Total current liabilities 536 5,701 Non-current liabilities: Remaining lease obligations - 785 Total liabilities of discontinued operations $ 536 $ 6,486 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 2019. 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 consolidated balance sheets, for the years ended December 31, 2018, 2017 and 2016 were as follows (dollars in thousands): Balance, Beginning of Period Charges Incurred (1) Net Cash Payments (2) Balance, End of Period For the year ended December 31, 2018 $ 6,301 $ (141 ) $ (5,675 ) $ 485 For the year ended December 31, 2017 $ 14,474 $ 818 $ (8,991 ) $ 6,301 For the year ended December 31, 2016 $ 21,751 $ 4,090 $ (11,367 ) $ 14,474 ___________________ (1) Includes subsequent adjustments for accretion, revised estimates, and variances between estimated and actual charges, net of any reversals for terminated lease obligations. (2) See Note 8 “Leases” for the future minimum lease payments under operating leases for discontinued operations as of December 31, 2018. |
Quarterly Financial Summary (Un
Quarterly Financial Summary (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Summary (Unaudited) | 19. QUARTERLY FINANCIAL SUMMARY (UNAUDITED) Summary financial information by quarter is as follows (dollars in thousands, except per share data): Quarter Total 2018 First (2) Second (3) Third Fourth (4) Year Revenue $ 148,065 $ 142,036 $ 145,690 $ 145,505 $ 581,296 Operating income 20,529 11,303 19,283 20,183 $ 71,298 Net income 17,502 8,751 14,857 14,071 $ 55,181 Net income per share (1) Basic $ 0.25 $ 0.13 $ 0.21 $ 0.20 $ 0.79 Diluted $ 0.25 $ 0.12 $ 0.21 $ 0.20 $ 0.77 Quarter Total 2017 First Second Third Fourth (5) Year Revenue $ 162,109 $ 146,222 $ 144,986 $ 143,118 $ 596,435 Operating income 9,781 9,104 4,539 10,712 $ 34,136 Net income (loss) 5,177 4,286 3,022 (44,382 ) $ (31,897 ) Net income (loss) per share (1) Basic $ 0.08 $ 0.06 $ 0.04 $ (0.64 ) $ (0.46 ) Diluted $ 0.07 $ 0.06 $ 0.04 $ (0.64 ) $ (0.46 ) (1) Basic and diluted earnings per share are calculated independently for each of the quarters presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree with the annual earnings per share amount for the corresponding year. For the year ended December 31, 2018, quarterly results included: (2) First quarter of 2018 net income included a $3.5 million significant legal settlement. (3) Second quarter of 2018 net income included a $6.0 million significant legal settlement. (4) Fourth quarter of 2018 net income included a $5.0 million significant legal settlement. For the year ended December 31, 2017, quarterly results included: (5) Fourth quarter of 2017 net loss included a $6.5 million significant legal settlement. Fourth quarter 2017 also includes $52.7 million of tax expense related to the impact of the Tax Cuts and Jobs Act which was enacted in the fourth quarter of 2017. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Valuation and Qualifying Accounts (dollars in thousands) Description Balance, Beginning of Period Additions/Charges to Expense Deductions/ Other Balance, End of Period Valuation allowance for deferred tax assets (1) For the year ended December 31, 2018 $ 50,519 $ - $ (2,482 ) $ 48,037 For the year ended December 31, 2017 $ 49,748 $ 2,146 $ (1,375 ) $ 50,519 For the year ended December 31, 2016 $ 47,545 $ 4,219 $ (2,016 ) $ 49,748 Valuation allowance for accounts receivable: For the year ended December 31, 2018 $ 22,534 $ 32,042 $ (29,740 ) $ 24,836 For the year ended December 31, 2017 $ 23,142 $ 27,571 $ (28,179 ) $ 22,534 For the year ended December 31, 2016 $ 20,229 $ 32,049 $ (29,136 ) $ 23,142 (1) Amounts include both continuing and discontinued operations gross deferred tax balances. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Financial Statement Presentation | a. Principles of Consolidation and Basis of Financial Statement Presentation These consolidated financial statements presented herein include the accounts of Career Education Corporation and our wholly-owned subsidiaries (collectively “CEC”) |
Segment Reporting | Our reporting segments are determined in accordance with Financial Accounting Standards Board (“FASB”) (“ASC”) Segment Reporting (comprises University Group) |
Revenue Recognition | During 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), a new accounting standard intended to improve and converge the financial reporting requirements between U.S. GAAP and International Financial Reporting Standards, which supersedes virtually all existing revenue recognition guidance under GAAP. The fundamental principles of the new guidance are that companies should recognize revenue in a manner that reflects the timing of the transfer of services to customers and the amount of revenue recognized reflects the consideration that a company expects to receive for the goods and services provided. The new guidance establishes a five step approach for the recognition of revenue. We adopted this guidance using the modified retrospective approach which applies to contracts that have remaining obligations as of January 1, 2018 and new contracts entered into subsequent to January 1, 2018. Under the modified retrospective approach, we do not restate comparative periods on our consolidated financial statements. As a result of this change in accounting guidance, we updated our revenue recognition policies and disclosures. The guidance under Topic 606 did not impact the amount of revenue we recognized in previous periods, and also does not impact the amount of revenue recognized prospectively as our revenue recognition methodology remained relatively the same under the new guidance. The guidance under Topic 606 did impact our presentation of financial condition and disclosures. Previously, a student’s entire accounts receivable balance along with their deferred revenue balance was evaluated to determine the net position of the two and the proper reporting of that balance within student receivables, net, or within deferred revenue, net, on our consolidated balance sheets. Under Topic 606, we now separate the contract asset balance from the student receivable balance to determine the amount reported as deferred revenue on the consolidated balance sheets for each student. See Note 5 “Revenue Recognition” for more information. f. Revenue Recognition Our revenue, which is derived primarily from academic programs taught to students who attend our institutions, is generally segregated into two categories: (1) tuition and fees and (2) other. Tuition and fees represent costs to our students for educational services provided by our institutions. Our institutions charge tuition and fees at varying amounts, depending on the institution, the type of program and specific curriculum. Our institutions bill students a single charge that covers tuition, fees and required program materials, such as textbooks and supplies, which we treat as a single performance obligation. Generally, we bill student tuition at the beginning of each academic period, and recognize the tuition as revenue on a straight-line basis over the academic term, which includes any applicable externship period. As part of a student’s course of instruction, certain fees, such as technology fees, graduation fees and laboratory fees, are billed to students. These fees are earned over the applicable term and are not considered separate performance obligations. The portion of tuition and fees billed to students but not yet earned is recorded as deferred revenue and reported as a current liability on our consolidated balance sheets, as we expect to earn these revenues within the next year. A contract asset is recorded for each student for the current term for which students are enrolled for the amount billed for the current term but payment has not been received and to which the Company does not have the unconditional right to receive payment because the student has not reached the point in the current academic term at which the amount billed is no longer refundable to the student. On a student by student basis, the contract asset is offset against the deferred revenue balance for the current term and the net deferred revenue balance is reflected within current liabilities on our consolidated balance sheets. If a student withdraws from one of our institutions prior to the completion of the academic term, we refund the portion of tuition and fees already paid that, pursuant to our refund policy and applicable federal and state law and accrediting agency standards, we are not entitled to retain. Generally, the amount to be refunded is based upon the percent of the term attended and the amount of tuition and fees paid by the student as of their withdrawal date. Students are typically entitled to a partial refund through approximately halfway of their term. Pursuant to each institution’s policy, once a student reaches the point in the term where no refund is given, the student would not have a refund due if withdrawing from the institution subsequent to that date. Management reassesses collectability when a student withdraws from the institution and has unpaid tuition charges for the current term which the institution is entitled to retain per the applicable refund policy. Such unpaid charges do not meet the threshold of reasonably collectible and are recognized as revenue in accordance with ASC Topic 606 when cash is received and the contract is terminated and neither party has further performance obligations. Our institutions’ academic year is generally at least 30 weeks in length but varies both by institution and program of study and is divided by academic terms. Academic terms are determined by regulatory requirements mandated by the federal government and/or applicable accrediting body, which also vary by institution and program. Academic terms are determined by start dates, which vary by institution and program and are generally 10-11 weeks in length. Our students finance costs through a variety of funding sources, including, among others, federal loan and grant programs, institutional payment plans, employer reimbursement, Veterans’ Administration and other military funding and grants, private and institutional scholarships and cash payments. Other revenue, which consists primarily of contract training revenue and bookstore sales, is billed and recognized as goods are delivered or services are performed. Contract training revenue results from individual training courses that are stand-alone courses and not part of a degree or certificate program. Bookstore sales are primarily initiated by the student and are not included in the enrollment agreement at the onset of a student’s entrance to the institution. These types of sales constitute a separate performance obligation from classroom instruction. |
Management's Use of Estimates | b. Management’s Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the U.S. (“GAAP”) |
Concentration of Credit Risk | c. Concentration of Credit Risk A substantial portion of credit extended to students is repaid through the students’ participation in various federal financial aid programs authorized by Title IV of the Higher Education Act of 1965, as amended (“Higher Education Act”) Title IV Programs Transfers of funds received from Title IV Programs are made in accordance with the U.S. Department of Education’s (“ED”) |
Student Receivables and Allowance for Doubtful Accounts | d. Student Receivables and Allowance for Doubtful Accounts Student receivables represent funds owed to us in exchange for the educational services that we provided to a student. Student receivables are reported net of an allowance for doubtful accounts at the end of the reporting period. Student receivables which are due to be paid in less than one year are recorded as current assets within our consolidated balance sheets. Student receivables which are due to be paid more than one year from the balance sheet date are reported as non-current assets within our consolidated balance sheets. 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 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. We extend unsecured credit to a portion of the students who are enrolled at our institutions for tuition and certain other educational costs. Based upon past experience and judgment, we establish an allowance for doubtful accounts with respect to student receivables which we estimate will ultimately not be collectible. As such, our results from operations only reflect the amount of revenue that is estimated to be reasonably collectible. Our standard allowance estimation methodology considers a number of factors that, based on our collections experience, we believe have an impact on our repayment risk and ability to collect student receivables. 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 students. Overall, our allowance estimation process for student receivables is validated by trending analysis and comparing estimated and actual performance. We monitor our collections and write-off experience to assess whether or not adjustments to our allowance percentage estimates are necessary. Changes in trends in any of the factors that we believe impact the collection of our student receivables, as noted above, or modifications to our collection practices, and other related policies may impact our estimate of our allowance for doubtful accounts and our results from operations. |
Fair Value of Financial Instruments | e. Fair Value of Financial Instruments The fair value measure of accounting for financial instruments establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The fair value for restricted short-term investments and short-term investments reported in our consolidated balance sheets are valued at Level 1 and Level 2 within the fair value hierarchy. Restricted short-term investments are comprised of certificates of deposit to provide securitization of our letters of credit pursuant to our credit agreement. See Note 4 “Financial Instruments” for further details. |
Cash and Cash Equivalents | g. Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. The fair market value of cash and cash equivalents approximate their carrying value. The cash in the Company’s banks is not fully insured by the Federal Deposit Insurance Corporation. Restricted cash balances are used to provide securitization for letters of credit. Restricted cash balances as of December 31, 2018 and 2017 total $0.3 million and $0.8 million, respectively. Students at our institutions may receive grants, loans and work-study opportunities to fund their education under Title IV Programs. In certain instances, students may request that we retain a portion of their Title IV funds provided to them in excess of tuition billings. Students may authorize us to apply these funds to historical balances or future charges and/or distribute them directly to the student in certain cases. As of December 31, 2018, we held $6.2 million of these funds on behalf of students within cash and cash equivalents on our consolidated balance sheet. |
Discontinued Operations | h. Discontinued Operations Discontinued operations are accounted for in accordance with FASB ASC Section 360-10-35 Property, Plant, and Equipment Effective January 1, 2015, ASC Topic 360 limits discontinued operations reporting to disposals of components of an entity that represent a strategic shift upon disposal that have or will have a major effect on an entity’s operations and financial results. We did not have any disposals since the 2015 effective date which met the revised definition of discontinued operations and accordingly all disposals since January 1, 2015 continue to be reported within continuing operations for all periods presented. |
Investments | i. Investments Our investments, which primarily consist of non-governmental debt securities, treasury and federal agencies, and municipal bonds are classified as “available-for-sale” and recorded at fair value. Any unrealized holding gains or temporary unrealized holding losses, net of income tax effects, are reported as a component of accumulated other comprehensive (loss) income within stockholders’ equity. Realized gains and losses are computed on the basis of specific identification and are included in miscellaneous income (expense) in our consolidated statements of income (loss) and comprehensive income (loss). We use the equity method to account for our investment in equity securities if our investment gives us the ability to exercise significant influence over operating and financial policies of the investee. We include our proportionate share of earnings and/or losses of our equity method investee in other income (expense) within our consolidated statements of income (loss) and comprehensive income (loss). The carrying value of our equity investment is reported within other non-current assets on our consolidated balance sheets. Our investment in an equity affiliate equated to a 30.7%, or $2.7 million, non-controlling interest in CCKF, a Dublin-based educational technology company providing intelligent systems to power the delivery of individualized and personalized learning. |
Inventories | j. Inventories Inventories, consisting principally of program materials, textbooks and supplies, are stated at the lower of cost, determined on a first-in, first-out basis, or market. The cost of inventory is reflected as a component of educational services and facilities expense as the items are used or sold. |
Property and Equipment | k. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation and amortization are recognized using the straight-line method over the estimated useful lives of the related assets for financial reporting purposes and an accelerated method for income tax reporting purposes. Leasehold improvements are amortized on a straight-line basis over the shorter of the life of the lease or the useful life. Maintenance, repairs, minor renewals and betterments are expensed as incurred, and major improvements, which extend the useful life of the asset, are capitalized. |
Goodwill and Intangible Assets | l. Goodwill and Intangible Assets Goodwill represents the excess of cost over fair market value of identifiable net assets acquired through business purchases. In accordance with FASB ASC Topic 350 – Intangibles-Goodwill and Other (“quantitative assessment”) When performing a qualitative assessment, management must first consider events and circumstances that may affect the fair value of the reporting unit to determine whether it is necessary to perform the quantitative impairment test. Management focuses on the significant inputs and any events or circumstances that could affect the significant inputs, including, but not limited to, financial performance, such as negative or declining cash flows, or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods, legal, regulatory, contractual, competitive, economic, political, business or other factors, and industry and market considerations, such as a deteriorating operating environment or increased competition. Management evaluates all events and circumstances, including positive or mitigating factors, that could affect the significant inputs used to determine fair value. If management determines that it is not more likely than not that the goodwill of the reporting unit is impaired based upon its qualitative assessment then it does not need to perform the quantitative assessment. When performing a quantitative assessment for the annual review of goodwill balances for impairment, we estimate the fair value of each of our reporting units based on projected future operating results and cash flows, market assumptions and/or comparative market multiple methods. Determining fair value requires significant estimates and assumptions based on an evaluation of a number of factors, such as marketplace participants, relative market share, new student interest, student retention, future expansion or contraction expectations, amount and timing of future cash flows and the discount rate applied to the cash flows. Projected future operating results and cash flows used for valuation purposes do reflect improvements relative to recent historical periods with respect to, among other things, modest revenue growth and operating margins. Although we believe our projected future operating results and cash flows and related estimates regarding fair values are based on reasonable assumptions, historically projected operating results and cash flows have not always been achieved. The failure of one of our reporting units to achieve projected operating results and cash flows in the near term or long term may reduce the estimated fair value of the reporting unit below its carrying value and result in the recognition of a goodwill impairment charge. Significant management judgment is necessary to evaluate the impact of operating and macroeconomic changes and to estimate future cash flows. Assumptions used in our impairment evaluations, such as forecasted growth rates and our cost of capital, are based on the best available market information and are consistent with our internal forecasts and operating plans. In addition to cash flow estimates, our valuations are sensitive to the rate used to discount cash flows and future growth assumptions. These assumptions could be adversely impacted by certain of the risks discussed in Item 1A, “Risk Factors,” in this Annual Report on Form 10-K. Intangible assets include indefinite-lived assets. Indefinite-lived assets include our CTU trade name and accreditation rights, which are recorded at fair market value upon acquisition and subsequently reviewed on an annual basis for impairment. Accreditation rights represent the ability of our institutions to participate in Title IV Programs. See Note 9 “Goodwill and Other Intangible Assets” for further discussion. |
Impairment of Long-Lived Assets | m. Impairment of Long-Lived Assets We review property and equipment and other long-lived assets for impairment on an annual basis or whenever adverse events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. If such adverse events or changes in circumstances occur, we will recognize an impairment loss if the undiscounted future cash flows expected to be generated by the assets are less than the carrying value of the related assets. The impairment loss would reduce the carrying value of the assets to their estimated fair value. See Note 7 “Property and Equipment” for further discussion. |
Contingencies | n. Contingencies During the ordinary course of business, we are subject to various claims and contingencies. In accordance with FASB ASC Topic 450 – Contingencies |
Income Taxes | o. Income Taxes We are subject to the income tax laws of the U.S. and various state and local jurisdictions. These tax laws are complex and subject to interpretation. As a result, significant judgments and interpretations are required in determining our income tax provisions (benefits) and evaluating our uncertain tax positions. We account for income taxes in accordance with FASB ASC Topic 740 – Income Taxes In assessing the need for a valuation allowance and/or release of a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. Topic 740 provides that important factors in determining whether a deferred tax asset will be realized are whether there has been sufficient taxable income in recent years and whether sufficient taxable income is expected in future years in order to utilize the deferred tax asset. In evaluating the realizability of deferred income tax assets, we consider, among other things, historical levels of taxable income along with possible sources of future taxable income, which include: the expected timing of the reversals of existing temporary reporting differences, the existence of taxable income in prior carryback year(s), the expected impact of tax planning strategies that may be implemented to prevent the potential loss of future income tax benefits, expected future taxable income and earnings history exclusive of the loss that created the future deductible amount, coupled with evidence indicating the loss is not a continuing condition. Changes in, among other things, income tax legislation, statutory income tax rates, or future taxable income levels could materially impact our valuation of income tax assets and liabilities and could cause our income tax provision to vary significantly among financial reporting periods. If, based on the weight of available evidence, it is more likely than not the deferred tax assets will not be realized, we record a valuation allowance, or release all or a portion of the valuation allowance if it is more likely than not the deferred tax assets are expected to be realized. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence may be objectively verified. A high degree of judgment is required to determine if, and the extent to which, valuation allowances should be recorded against deferred tax assets. Topic 740 further clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in an income tax return. Topic 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. |
Deferred Rent Obligations | p. Deferred Rent Obligations Many of the real estate operating lease agreements to which we are party contain rent escalation clauses or lease incentives, such as rent abatements or tenant improvement allowances. Rent escalation clauses and lease incentives are taken into account in determining total rent expense to be recognized during the term of the lease, which begins on the date that we take control of the leased space. Renewal options are considered when evaluating the overall term of the lease. In accordance with FASB ASC Topic 840 – Leases We record tenant improvement allowances as a deferred rent obligation on our consolidated balance sheets and as a cash inflow from operating activities on our consolidated statements of cash flows. We record capital expenditures funded by tenant improvement allowances received as a leasehold improvement on our consolidated balance sheets and as an investing activity within our consolidated statements of cash flows. |
Share-Based Compensation | q. Share-Based Compensation FASB ASC Topic 718 – Compensation-Stock Compensation Our share-based awards are measured at fair value and recognized over the requisite service or performance period. The fair value of each stock option is estimated on the date of grant using the Black-Scholes option pricing model, based on the market price of the underlying common stock, expected life, expected stock price volatility and expected risk-free interest rate. Expected volatility is computed using a combination of historical volatility for a period equal to the expected term; the risk-free interest rates are based on the U.S. Treasury yield curve, with a remaining term approximately equal to the expected term used in the option pricing model. The fair value of each restricted stock unit award is estimated based on the market price of the underlying common stock on the date of the grant. The fair value of each market-based performance grant is estimated using the Monte Carlo Simulation methodology to assess the grant date fair value. We estimate forfeitures at the time of grant and revise our estimate in subsequent periods if actual forfeitures differ from those estimates. See Note 14 “Share-Based Compensation” for further discussion of our share-based compensation plans, the nature of share-based awards issued under the plans and our accounting for share-based awards. |
Advertising Costs | r. Advertising Costs Advertising costs are expensed as incurred. Advertising costs, which are included in general and administrative expenses on our consolidated statements of income (loss) and comprehensive income (loss), were $126.4 million, $136.1 million and $154.9 million, for the years ended December 31, 2018, 2017 and 2016, respectively. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Investments | Investments consist of the following as of December 31, 2018 and 2017 (dollars in thousands): December 31, 2018 Gross Unrealized Cost Gain (Loss) Fair Value Short-term investments (available for sale): Non-governmental debt securities $ 179,393 $ 35 $ (337 ) $ 179,091 Treasury and federal agencies 17,417 5 (85 ) 17,337 Total short-term investments (available for sale) $ 196,810 $ 40 $ (422 ) $ 196,428 December 31, 2017 Gross Unrealized Cost Gain (Loss) Fair Value Short-term investments (available for sale): Municipal bonds $ 830 $ - $ - $ 830 Non-governmental debt securities 125,485 7 (222 ) 125,270 Treasury and federal agencies 30,211 - (133 ) 30,078 Total short-term investments 156,526 7 (355 ) 156,178 Restricted short-term investments (available for sale): Non-governmental debt securities 5,070 - - 5,070 Total short-term investments (available for sale) $ 161,596 $ 7 $ (355 ) $ 161,248 |
Schedule of Available-for-Sale Investments | A schedule of available-for-sale investments segregated by their original stated terms to maturity as of December 31, 2018 and 2017 are as follows (dollars in thousands): Less than one year One to five years Six to ten years Greater than ten years Total Original stated term to maturity of available-for-sale- investments as of December 31, 2018 $ 156,657 $ 38,845 $ - $ 926 $ 196,428 Original stated term to maturity of available-for-sale- investments as of December 31, 2017 $ 113,634 $ 46,586 $ - $ 1,028 $ 161,248 |
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 Measurements As of December 31, 2018 Level 1 Level 2 Level 3 Total Non-governmental debt securities $ 20,000 $ 159,091 $ - $ 179,091 Treasury and federal agencies - 17,337 - 17,337 Totals $ 20,000 $ 176,428 $ - $ 196,428 As of December 31, 2017 Level 1 Level 2 Level 3 Total Municipal bonds $ - $ 830 $ - $ 830 Non-governmental debt securities 31,500 98,840 - 130,340 Treasury and federal agencies - 30,078 - 30,078 Totals $ 31,500 $ 129,748 $ - $ 161,248 |
Schedule of Maintenance Fee Payment to CCKF | We make periodic operating maintenance payments related to proprietary rights that we use in our intelli path ® Maintenance Fee Payments For the year ended December 31, 2018 $ 1,462 For the year ended December 31, 2017 $ 1,371 For the year ended December 31, 2016 $ 1,375 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregation of Revenue by Major Source | The following tables disaggregate our revenue by major source for the years ended December 31, 2018, 2017 and 2016 For the Year Ended December 31, 2018 CTU AIU All Other Campuses Total Tuition $ 359,929 $ 196,712 $ 550 $ 557,191 Technology fees 11,560 7,590 - 19,150 Other miscellaneous fees (1) 1,769 416 19 2,204 Total tuition and fees 373,258 204,718 569 578,545 Other revenue (2) 2,512 202 37 2,751 Total revenue $ 375,770 $ 204,920 $ 606 $ 581,296 For the Year Ended December 31, 2017 CTU AIU All Other Campuses Total Tuition $ 356,091 $ 190,739 $ 26,615 $ 573,445 Technology fees 11,175 6,791 - 17,966 Other miscellaneous fees (1) 1,964 451 23 2,438 Total tuition and fees 369,230 197,981 26,638 593,849 Other revenue (2) 2,095 270 221 2,586 Total revenue $ 371,325 $ 198,251 $ 26,859 $ 596,435 For the Year Ended December 31, 2016 CTU AIU All Other Campuses Total Tuition $ 354,295 $ 185,929 $ 140,470 $ 680,694 Technology fees 10,839 6,013 3 16,855 Other miscellaneous fees (1) 1,946 855 175 2,976 Total tuition and fees 367,080 192,797 140,648 700,525 Other revenue (2) 2,239 235 1,393 3,867 Total revenue $ 369,319 $ 193,032 $ 142,041 $ 704,392 __________________ (1) Other miscellaneous fees include graduation fees, laboratory fees and activity fees. (2) Other revenue primarily includes contract training revenue and bookstore and laptop sales. |
Schedule of Previously Reported Balances, Adjustment and Current Reported Balances | The previously reported balances along with the adjustment and beginning January 1, 2018 balances are provided below (dollars in thousands). December 31, 2017 Impact of Modified Retrospective Adoption of ASC 606 January 1, 2018 Post ASC 606 Adoption Student receivables, net of allowance for doubtful accounts, current $ 18,875 $ 6,663 $ 25,538 Deferred revenue $ 22,897 $ 6,663 $ 29,560 |
Summary of Contract Assets Offset with Deferred Revenue Balances | The amount of contract assets which are being offset with deferred revenue balances as of January 1, 2018 and December 31, 2018 were as follows (dollars in thousands): As of January 1, 2018 December 31, 2018 Gross deferred revenue $ 39,544 $ 51,694 Gross contract assets (9,984 ) (19,343 ) Deferred revenue, net $ 29,560 $ 32,351 |
Changes in Deferred Revenue Balances | Changes in our deferred revenue balances for the year ended December 31, 2018 were as follows (dollars in thousands): For the Year Ended December 31, 2018 CTU AIU All Other Campuses Total Gross deferred revenue, January 1, 2018 $ 23,933 $ 15,507 $ 104 $ 39,544 Revenue earned from balances existing as of January 1, 2018 (22,218 ) (14,086 ) (104 ) (36,408 ) Billings during period (1) 373,671 216,670 510 590,851 Revenue earned for new billings during the period (351,040 ) (190,632 ) (465 ) (542,137 ) Other adjustments (96 ) (15 ) (45 ) (156 ) Gross deferred revenue, December 31, 2018 $ 24,250 $ 27,444 $ - $ 51,694 ______________ (1) Billings during period includes adjustments for prior billings. |
Student Receivables (Tables)
Student Receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Changes in Current and Non-Current Receivables Allowance | Changes in our current and non-current receivables allowance for the years ended December 31, 2018, 2017 and 2016 were as follows (dollars in thousands): Balance, Beginning of Period Charges to Expense (1) Amounts Written-off Balance, End of Period For the year ended December 31, 2018 $ 22,534 $ 32,042 $ (29,740 ) $ 24,836 For the year ended December 31, 2017 $ 23,142 $ 27,571 $ (28,179 ) $ 22,534 For the year ended December 31, 2016 $ 20,229 $ 32,049 $ (29,136 ) $ 23,142 (1) Charges to expense include an offset for recoveries of amounts previously written off of $5.7 million, $4.2 million and $6.2 million for the years ended December 31, 2018, 2017 and 2016, respectively. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Schedule of Cost Basis and Estimated Useful Lives of Property and Equipment | The cost basis and estimated useful lives of property and equipment as of December 31, 2018 and 2017 are as follows (dollars in thousands): December 31, 2018 2017 Life Computer hardware and software $ 105,175 $ 105,244 3 years Leasehold improvements 73,951 90,486 Shorter of Life of Lease or Useful Life Furniture, fixtures and equipment 37,362 40,464 5-10 years Building and improvements 8,578 8,578 15-35 years Library materials 982 1,522 10 years Vehicles 107 464 5 years Construction in progress 1,945 297 228,100 247,055 Less-accumulated depreciation (198,052 ) (213,825 ) Total property and equipment, net $ 30,048 $ 33,230 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Schedule of Changes in Future Minimum Lease Obligations | Changes in our future minimum lease obligations for vacated space related to our continuing operations for the years ended December 31, 2018, 2017 and 2016 were as follows (dollars in thousands): Balance, Beginning of Period Charges Incurred (1) Net Cash Payments Other (2) Balance, End of Period For the year ended December 31, 2018 $ 20,763 $ 10,955 $ (20,659 ) $ 41 $ 11,100 For the year ended December 31, 2017 $ 36,814 $ 14,838 $ (33,313 ) $ 2,424 $ 20,763 For the year ended December 31, 2016 $ 12,892 $ 32,351 $ (16,413 ) $ 7,984 $ 36,814 (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. (2) Includes existing prepaid rent and deferred rent liability balances for newly vacated spaces that offset the losses incurred in the period recorded. |
Schedule of Future Minimum Lease Payments and Sublease Rental Income under Operating Leases for Continuing and Discontinued Operations | As of December 31, 2018, future minimum lease payments under operating leases for continuing and discontinued operations are as follows (dollars in thousands): Operating Leases Continuing Discontinued Operations Operations Total 2019 (1) $ 21,076 $ 808 $ 21,884 2020 17,728 - 17,728 2021 12,070 - 12,070 2022 8,638 - 8,638 2023 and thereafter 22,298 - 22,298 Total $ 81,810 $ 808 $ 82,618 __________________________ (1) Amounts include payments due associated with executed early terminations of real estate leases. As of December 31, 2018, future minimum sublease rental income under operating leases, which will decrease our future minimum lease payments presented above, for continuing and discontinued operations is as follows (dollars in thousands): Operating Subleases Continuing Discontinued Operations Operations Total 2019 $ 3,457 $ 174 $ 3,631 2020 2,750 - 2,750 2021 1,279 - 1,279 2022 777 - 777 2023 and thereafter 328 - 328 Total $ 8,591 $ 174 $ 8,765 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Net Book Value of Other Intangible Assets | As of December 31, 2018 and 2017, the net book value of other intangible assets are as follows (dollars in thousands): As of December 31, 2018 As of December 31, 2017 Non-amortizable intangible assets: Accreditation rights $ 1,000 $ 1,000 CTU trade name 6,900 6,900 Net book value, non-amortizable intangible assets: $ 7,900 $ 7,900 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 during the years ended December 31, 2018, 2017 and 2016 (dollars in thousands): Balance, Beginning Period Severance and related charges (1) Payments Non-cash adjustments (2) Balance, End of Period For the year ended December 31, 2018 $ 2,170 $ 1,898 $ (2,883 ) $ (589 ) $ 596 For the year ended December 31, 2017 $ 8,686 $ - $ (6,767 ) $ 251 $ 2,170 For the year ended December 31, 2016 $ 18,985 $ 507 $ (11,015 ) $ 209 $ 8,686 _________________________ (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 ) 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 years ended December 31, 2018, 2017 and 2016 by reporting segment is as follows (dollars in thousands): For the Year Ended December 31, 2018 2017 2016 CTU $ 782 $ - $ 18 AIU 1,083 - 66 Total University Group 1,865 - 84 Corporate and Other 33 - 388 Subtotal 1,898 - 472 All Other Campuses - - 35 Total $ 1,898 $ - $ 507 |
Credit Agreement (Tables)
Credit Agreement (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Credit Agreement | Selected details of our applicable credit agreement as of and for the years ended December 31, 2018 and 2017 were as follows (dollars in thousands): As of December 31, 2018 2017 (1) Credit Agreements: Credit facility remaining availability $ 47,782 $ 89,930 Outstanding letters of credit (2)(3) $ 2,218 $ 5,070 Availability of additional letters of credit (4) $ 22,782 $ 54,930 Weighted average daily revolving credit borrowings for the year ended $ - $ - Weighted average annual interest rate 0.00 % 0.00 % Commitment fee rate 0.30 % 0.25 % Letter of credit fee rate 1.25 % 0.75 % ________________ (1) Amounts listed as of and for the year ended December 31, 2017 relate to our previous credit agreement. ( 2 ) As of December 31, 2017, $5.1 million of restricted short-term investments provided collateral for our letters of credit. ( 3 ) As of December 31, 2018 and 2017, outstanding letters of credit not related to the credit agreements totaled $0.3 million and $0.8 million, respectively, which amounts are fully collateralized with restricted cash, which is in addition to the $5.1 million referenced in this Note 11 as of December 31, 2017. ( 4 ) The letters of credit sublimit of $25.0 million and $60.0 million as of December 31, 2018 and 2017, respectively, under the credit agreements is part of, not in addition to, the $50.0 million and $95.0 million aggregate commitments as of December 31, 2018 and 2017, respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Deferred Income Tax Assets and Liabilities for Continuing Operation | Error extracting Word content December 31, 2018 2017 Deferred income tax assets: Accrued occupancy $ 2,871 $ 5,133 Deferred rent obligations 1,382 1,746 Foreign tax credits 32,998 32,998 Valuation allowance foreign tax credits (32,998 ) (32,998 ) Compensation and employee benefits 7,038 8,520 Tax net operating loss carry forwards 66,319 71,911 Valuation allowance (13,656 ) (14,561 ) Allowance for doubtful accounts 3,388 2,943 Covenant not-to-compete 2 3 Accrued settlements and legal 252 2,065 Deferred compensation 494 890 Accrued restructuring and severance 156 394 Equity method for investments 525 394 General business tax credits 1,292 1,192 Illinois edge credits 1,383 2,960 Valuation allowance edge credits (1,383 ) (2,960 ) Depreciation and amortization 12,403 18,223 Other 331 491 Total deferred income tax assets 82,797 99,344 Deferred income tax liabilities: Other 1,169 1,260 Total deferred income tax liabilities 1,169 1,260 Net deferred income tax assets $ 81,628 $ 98,084 |
Schedule of Provision for (Benefits from) Income Taxes from Continuing Operations | The provision for (benefit from) income taxes from continuing operations for the years ended December 31, 2018, 2017 and 2016 consists of the following (dollars in thousands): For the Year Ended December 31, 2018 2017 2016 Current provision State and local $ 524 $ 1,870 $ 704 Total current provision 524 1,870 704 Deferred provision (benefit) Federal 16,144 67,936 (16,247 ) State and local 1,893 (2,681 ) (1,007 ) Total deferred provision (benefit) 18,037 65,255 (17,254 ) Total provision for (benefit from) income taxes $ 18,561 $ 67,125 $ (16,550 ) |
Schedule of Reconciliation of the Statutory U.S. Federal Income Tax Rate to Effective Income Tax Rate for Continuing Operations | A reconciliation of the statutory U.S. federal income tax rate to our effective income tax rate for continuing operations for the years ended December 31, 2018, 2017 and 2016 is as follows: For the Year Ended December 31, 2018 2017 2016 Statutory U.S. federal income tax rate 21.0 % 35.0 % (35.0 ) % State and local income taxes 3.1 2.3 (3.4 ) Stock-based compensation (1.4 ) 3.2 - Valuation allowance - 0.3 0.5 Legal settlement 1.4 - - Federal audit settlement - - (6.7 ) State audit settlement 0.1 (4.6 ) - Federal income tax rate change - 145.3 - Worthless stock - - (11.9 ) Tax credits (0.2 ) (0.7 ) (0.4 ) Other 1.0 4.4 4.1 Effective income tax rate 25.0 % 185.2 % (52.8 ) % |
Schedule of Reconciliation of the Beginning and Ending Amount of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits as of December 31, 2018, 2017 and 2016 is as follows (dollars in thousands): 2018 2017 2016 Gross unrecognized tax benefits, beginning of the year $ 8,564 $ 8,132 $ 7,737 Additions for tax positions of prior years 5 24 263 Additions for tax positions related to the current year 1,839 1,625 1,247 Reductions due to lapse of applicable statute of limitations (1,399 ) (1,217 ) (1,115 ) Subtotal 9,009 8,564 8,132 Interest and penalties 1,862 1,909 2,008 Total gross unrecognized tax benefits, end of the year $ 10,871 $ 10,473 $ 10,140 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Information with Respect to Outstanding and Exercisable Stock Options | The following table summarizes information with respect to all outstanding and exercisable stock options under all of our plans as of December 31, 2018: Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Number Exercisable Weighted Average Exercise Price $ 2.65 $ 4.07 326,324 $ 3.57 5.81 312,162 $ 3.54 $ 4.15 $ 4.15 250,732 $ 4.15 6.61 188,049 $ 4.15 $ 4.49 $ 4.49 683,104 $ 4.49 7.18 341,552 $ 4.49 $ 5.00 $ 6.51 346,012 $ 6.00 5.76 316,904 $ 6.01 $ 7.22 $ 8.30 324,832 $ 8.07 7.41 138,007 $ 7.76 $ 8.63 $ 13.80 377,061 $ 12.65 8.69 104,429 $ 9.65 $ 15.39 $ 22.13 312,712 $ 20.66 3.01 248,576 $ 22.02 $ 26.15 $ 26.15 36,144 $ 26.15 0.15 36,144 $ 26.15 $ 29.02 $ 29.02 41,512 $ 29.02 1.17 41,512 $ 29.02 $ 30.67 $ 30.67 120,000 $ 30.67 1.38 120,000 $ 30.67 2,818,433 $ 9.59 6.14 1,847,335 $ 10.13 |
Schedule of Deferred Stock Units to be Settled in Shares | The following table summarizes information with respect to all deferred stock units during the years ended December 31, 2018, 2017 and 2016: Deferred Stock Units to be Settled in Shares Weighted Average Grant-Date Fair Value Per Unit Outstanding as of December 31, 2015 (1) 90,642 $ 4.43 Granted - - Vested (14,619 ) 4.39 Forfeited - - Outstanding as of December 31, 2016 (1) 76,023 $ 4.44 Granted - - Vested - - Forfeited - - Outstanding as of December 31, 2017 (1) 76,023 $ 4.44 Granted - - Vested - - Forfeited - - Outstanding as of December 31, 2018 (1) 76,023 $ 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 for the years ended December 31, 2018, 2017 and 2016: Restricted Stock Units to be Settled in Cash Outstanding as of December 31, 2015 1,575,050 Granted 461,428 Vested (610,680 ) Forfeited (233,720 ) Outstanding as of December 31, 2016 1,192,078 Granted - Vested (650,729 ) Forfeited (69,621 ) Outstanding as of December 31, 2017 471,728 Granted - Vested (214,192 ) Forfeited (44,742 ) Outstanding as of December 31, 2018 212,794 |
Summary of Total Stock Based Compensation Expense | Stock-Based Compensation Expense. Total stock-based compensation expense for the years ended December 31, 2018, 2017 and 2016 for all types of awards was as follows (dollars in thousands): December 31, Award Type 2018 2017 2016 Stock options $ 1,956 $ 1,585 $ 1,256 Restricted stock units settled in stock 3,641 3,366 1,960 Restricted stock units settled in cash 2,197 4,134 5,569 Total stock-based compensation expense $ 7,794 $ 9,085 $ 8,785 |
Schedule of Fair Value of Stock Option Award Granted Estimated on Date of Grant Using the Black-Scholes-Merton Option Pricing Model | The weighted average fair value per share of stock option awards granted during the years ended December 31, 2018, 2017 and 2016, and assumptions used to value stock options are as follows: For the Year Ended December 31, 2018 2017 2016 Dividend yield - - - Risk-free interest rate 2.6 % 1.9 % 1.3 % Weighted average volatility 56.1 % 64.2 % 70.4 % Expected life (in years) 5.0 5.2 4.8 Weighted average grant date fair value per share of options granted $ 7.09 $ 4.81 $ 2.75 |
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 years ended December 31, 2018, 2017 and 2016: Restricted Stock to be Settled in Shares of Stock Units Weighted Average Grant-Date Fair Value Per Unit Outstanding as of December 31, 2015 757,871 $ 5.55 Granted 1,555,828 4.58 Vested (1) (381,850 ) 5.98 Forfeited (219,645 ) 5.06 Outstanding as of December 31, 2016 1,712,204 $ 4.63 Granted 289,392 8.49 Vested (1) (422,284 ) 4.64 Forfeited (125,489 ) 5.56 Outstanding as of December 31, 2017 1,453,823 $ 5.32 Granted 1,397,644 12.91 Vested (709,132 ) 4.97 Forfeited (124,858 ) 7.14 Outstanding as of December 31, 2018 2,017,477 $ 10.59 (1) The total vested awards include 6.3 thousand and 9.2 thousand of vested restricted stock units settled in cash for the years ended December 31, 2017 and 2016, respectively. These awards granted in 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. |
Employee Stock Option [Member] | |
Summary of Stock Option Activity | Stock option activity during the years ended December 31, 2018, 2017 and 2016 under our plans was as follows: Options Weighted Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic (in thousands) Outstanding as of December 31, 2015 2,657,723 $ 14.27 Granted 915,122 4.81 Exercised (89,773 ) 4.17 $ 189 Forfeited (120,964 ) 5.11 Cancelled (276,220 ) 24.69 Outstanding as of December 31, 2016 3,085,888 $ 11.18 Granted 365,709 8.67 Exercised (288,618 ) 8.18 $ 250 Forfeited (75,426 ) 6.97 Cancelled (219,500 ) 29.67 Outstanding as of December 31, 2017 2,868,053 $ 9.86 Granted 336,768 14.10 Exercised (161,072 ) 8.46 $ 987 Forfeited - - Cancelled (225,316 ) 20.58 Outstanding as of December 31, 2018 2,818,433 $ 9.59 6.14 years $ 12,275 Exercisable as of December 31, 2018 1,847,335 $ 10.13 5.16 years $ 8,605 |
Weighted Average Common Shares
Weighted Average Common Shares (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Weighted Average Numbers of Common Shares Used to Compute Basic and Diluted Net (Loss) Income Per Share | The weighted average number of common shares used to compute basic and diluted net income (loss) per share for the years ended December 31, 2018, 2017 and 2016 were as follows: For the Year Ended December 31, 2018 2017 (1) 2016 (1) Basic common shares outstanding 69,598 68,949 68,373 Common stock equivalents 1,884 - - Diluted common shares outstanding 71,482 68,949 68,373 _________________ (1) Earnings per Share |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary Financial Information by Reporting Segment | Summary financial information by reporting segment is as follows (dollars in thousands): Revenue Operating Income (Loss) Depreciation and Amortization Capital Expenditures Total Assets For the Year Ended December 31, 2018 (1) CTU $ 375,770 $ 111,623 $ 5,310 $ 168 $ 76,713 AIU 204,920 8,176 3,582 201 59,133 Total University Group 580,690 119,799 8,892 369 135,846 Corporate and Other - (16,598 ) 369 6,363 330,132 Subtotal 580,690 103,201 9,261 6,732 465,978 All Other Campuses (2) 606 (31,903 ) 133 - 16,337 Discontinued Operations 178 Total $ 581,296 $ 71,298 $ 9,394 $ 6,732 $ 482,493 For the Year Ended December 31, 2017 (1) CTU $ 371,325 $ 109,202 $ 2,047 $ 74 $ 72,988 AIU 198,251 8,401 1,752 79 51,832 Total University Group 569,576 117,603 3,799 153 124,820 Corporate and Other - (22,067 ) 6,527 6,179 291,211 Subtotal 569,576 95,536 10,326 6,332 416,031 All Other Campuses (3) 26,859 (61,400 ) 3,664 - 29,098 Discontinued Operations 1,967 Total $ 596,435 $ 34,136 $ 13,990 $ 6,332 $ 447,096 For the Year Ended December 31, 2016 (1) CTU $ 369,319 $ 99,412 $ 2,157 $ 675 AIU (4) 193,032 (29,598 ) 1,687 406 Total University Group 562,351 69,814 3,844 1,081 Corporate and Other - (25,097 ) 7,320 2,512 Subtotal 562,351 44,717 11,164 3,593 All Other Campuses (5) 142,041 (77,061 ) 11,583 536 Discontinued Operations Total $ 704,392 $ (32,344 ) $ 22,747 $ 4,129 (1) The statement of income (loss) and comprehensive income (loss) balances including revenue, operating income (loss), depreciation and amortization and capital expenditures are presented above on a continuing operations basis. Total assets are presented on a consolidated basis including continuing and discontinued operations. For the year ended December 31, 2018, segment results included: (2) All Other Campuses: $14.6 million of charges related to significant legal settlements and $9.4 million of charges related to remaining lease obligations of vacated space. For the year ended December 31, 2017, segment results included: ( 3 ) All Other Campuses: $6.5 million charge related to a significant legal settlement and $14.8 million of charges related to remaining lease obligations of vacated space. For the year ended December 31, 2016, segment results included: ( 4 ) AIU: $32.0 million charge related to a significant legal settlement. ( 5 ) All Other Campuses: $31.0 million of charges related to remaining lease obligations of vacated space. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Combined Summary Results of Operations for Discontinued Operations | Combined summary results of operations for our discontinued operations for the years ended December 31, 2018, 2017, and 2016 were as follows (dollars in thousands): For the Year Ended December 31, 2018 2017 2016 Total operating expenses $ 1,089 $ 2,310 $ 6,586 Loss before income tax $ (1,089 ) $ (2,268 ) $ (6,586 ) Benefit from income tax (479 ) (1,246 ) (2,690 ) Loss from discontinued operations, net of tax $ (610 ) $ (1,022 ) $ (3,896 ) |
Assets and Liabilities of Discontinued Operations on Consolidated Balance Sheets | Assets and liabilities of discontinued operations on our consolidated balance sheets as of December 31, 2018 and 2017 include the following (dollars in thousands): As of December 31, 2018 2017 Assets: Current assets: Receivables, net $ - $ 382 Total current assets - 382 Non-current assets: Deferred income tax assets, net 178 1,585 Total assets of discontinued operations $ 178 $ 1,967 Liabilities: Current liabilities: Accounts payable and accrued expenses $ 51 $ 185 Remaining lease obligations 485 5,516 Total current liabilities 536 5,701 Non-current liabilities: Remaining lease obligations - 785 Total liabilities of discontinued operations $ 536 $ 6,486 |
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 consolidated balance sheets, for the years ended December 31, 2018, 2017 and 2016 were as follows (dollars in thousands): Balance, Beginning of Period Charges Incurred (1) Net Cash Payments (2) Balance, End of Period For the year ended December 31, 2018 $ 6,301 $ (141 ) $ (5,675 ) $ 485 For the year ended December 31, 2017 $ 14,474 $ 818 $ (8,991 ) $ 6,301 For the year ended December 31, 2016 $ 21,751 $ 4,090 $ (11,367 ) $ 14,474 (1) Includes subsequent adjustments for accretion, revised estimates, and variances between estimated and actual charges, net of any reversals for terminated lease obligations. (2) See Note 8 “Leases” for the future minimum lease payments under operating leases for discontinued operations as of December 31, 2018. |
Quarterly Financial Summary (_2
Quarterly Financial Summary (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Summary | Summary financial information by quarter is as follows (dollars in thousands, except per share data): Quarter Total 2018 First (2) Second (3) Third Fourth (4) Year Revenue $ 148,065 $ 142,036 $ 145,690 $ 145,505 $ 581,296 Operating income 20,529 11,303 19,283 20,183 $ 71,298 Net income 17,502 8,751 14,857 14,071 $ 55,181 Net income per share (1) Basic $ 0.25 $ 0.13 $ 0.21 $ 0.20 $ 0.79 Diluted $ 0.25 $ 0.12 $ 0.21 $ 0.20 $ 0.77 Quarter Total 2017 First Second Third Fourth (5) Year Revenue $ 162,109 $ 146,222 $ 144,986 $ 143,118 $ 596,435 Operating income 9,781 9,104 4,539 10,712 $ 34,136 Net income (loss) 5,177 4,286 3,022 (44,382 ) $ (31,897 ) Net income (loss) per share (1) Basic $ 0.08 $ 0.06 $ 0.04 $ (0.64 ) $ (0.46 ) Diluted $ 0.07 $ 0.06 $ 0.04 $ (0.64 ) $ (0.46 ) (1) Basic and diluted earnings per share are calculated independently for each of the quarters presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree with the annual earnings per share amount for the corresponding year. For the year ended December 31, 2018, quarterly results included: (2) First quarter of 2018 net income included a $3.5 million significant legal settlement. (3) Second quarter of 2018 net income included a $6.0 million significant legal settlement. (4) Fourth quarter of 2018 net income included a $5.0 million significant legal settlement. For the year ended December 31, 2017, quarterly results included: (5) Fourth quarter of 2017 net loss included a $6.5 million significant legal settlement. Fourth quarter 2017 also includes $52.7 million of tax expense related to the impact of the Tax Cuts and Jobs Act which was enacted in the fourth quarter of 2017. |
Description of the Company - Ad
Description of the Company - Additional Information (Detail) | Dec. 31, 2018University |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of regionally-accredited universities | 2 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)Segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Accounting Policies [Line Items] | |||
Number of reporting segments | Segment | 3 | ||
Securitization of letters of credit | $ 0.3 | $ 0.8 | |
Advertising costs | $ 126.4 | $ 136.1 | $ 154.9 |
CCKF [Member] | |||
Accounting Policies [Line Items] | |||
Percentage of investment in equity affiliate | 30.70% | ||
Non controlling interest | $ 2.7 | ||
Title IV Programs [Member] | |||
Accounting Policies [Line Items] | |||
Student fund portion in cash, and cash equivalents | $ 6.2 | ||
Maximum [Member] | |||
Accounting Policies [Line Items] | |||
Maturity period of cash equivalents including short-term investments | three months | ||
Minimum [Member] | |||
Accounting Policies [Line Items] | |||
Number of days past due to write off student receivables | 90 days | ||
Student Loans [Member] | Maximum [Member] | Current Assets [Member] | |||
Accounting Policies [Line Items] | |||
Student receivables period | 1 year | ||
Student Loans [Member] | Minimum [Member] | Non Current Assets [Member] | |||
Accounting Policies [Line Items] | |||
Student receivables period | 1 year | ||
Cash Receipts [Member] | Credit Concentration Risk [Member] | |||
Accounting Policies [Line Items] | |||
Percentage of cash receipts from Title IV Program funding | 79.00% | 78.00% | 76.00% |
Financial Instruments - Summary
Financial Instruments - Summary of Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total short-term investments (available for sale), Cost | $ 161,596 | |
Total short-term investments (available for sale), Gross Unrealized Gain | 7 | |
Total short-term investments (available for sale), Gross Unrealized (Loss) | (355) | |
Total short-term investments (available for sale), Fair value | 161,248 | |
Short-term, Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total short-term investments (available for sale), Cost | 830 | |
Total short-term investments (available for sale), Fair value | 830 | |
Short-term, Non-governmental Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total short-term investments (available for sale), Cost | $ 179,393 | 125,485 |
Total short-term investments (available for sale), Gross Unrealized Gain | 35 | 7 |
Total short-term investments (available for sale), Gross Unrealized (Loss) | (337) | (222) |
Total short-term investments (available for sale), Fair value | 179,091 | 125,270 |
Short-term, Treasury and Federal Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total short-term investments (available for sale), Cost | 17,417 | 30,211 |
Total short-term investments (available for sale), Gross Unrealized Gain | 5 | |
Total short-term investments (available for sale), Gross Unrealized (Loss) | (85) | (133) |
Total short-term investments (available for sale), Fair value | 17,337 | 30,078 |
Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total short-term investments (available for sale), Cost | 196,810 | 156,526 |
Total short-term investments (available for sale), Gross Unrealized Gain | 40 | 7 |
Total short-term investments (available for sale), Gross Unrealized (Loss) | (422) | (355) |
Total short-term investments (available for sale), Fair value | $ 196,428 | 156,178 |
Restricted short-term, Non-governmental Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total short-term investments (available for sale), Cost | 5,070 | |
Total short-term investments (available for sale), Fair value | $ 5,070 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial Instruments [Line Items] | |||
Period cash equivalents and short-term investments have been in continuous unrealized gain (loss) position, years, maximum | 1 year | ||
CCKF [Member] | |||
Financial Instruments [Line Items] | |||
Non controlling interest | $ 2.7 | ||
Percentage of investment in equity affiliate | 30.70% | ||
Gain (loss) from investment in affiliate | $ (0.4) | $ (0.3) | $ (0.9) |
Financial Instruments - Schedul
Financial Instruments - Schedule of Available-for-Sale Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized Cost And Fair Value Debt Securities [Abstract] | ||
Original stated term to maturity of available-for-sale- investments, Less than one year | $ 156,657 | $ 113,634 |
Original stated term to maturity of available-for-sale- investments, One to five years | 38,845 | 46,586 |
Original stated term to maturity of available-for-sale- investments, Greater than ten years | 926 | 1,028 |
Original stated term to maturity of available-for-sale- investments, Total | $ 196,428 | $ 161,248 |
Financial Instruments - Investm
Financial Instruments - Investments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | $ 161,248 | |
Total investments at fair value | $ 196,428 | 156,178 |
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 | 196,428 | 161,248 |
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 | 830 | |
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 | 179,091 | 130,340 |
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 | 17,337 | 30,078 |
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 | 20,000 | 31,500 |
Fair Value Measurements on Recurring Basis [Member] | Level 1 [Member] | Non-governmental Debt Securities [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 20,000 | 31,500 |
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 | 176,428 | 129,748 |
Fair Value Measurements on Recurring Basis [Member] | Level 2 [Member] | Municipal Bonds [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 830 | |
Fair Value Measurements on Recurring Basis [Member] | Level 2 [Member] | Non-governmental Debt Securities [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 159,091 | 98,840 |
Fair Value Measurements on Recurring Basis [Member] | Level 2 [Member] | Treasury and Federal Agencies [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | $ 17,337 | $ 30,078 |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Maintenance Fee Payment to CCKF (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |||
Maintenance Fee Payments | $ 1,462 | $ 1,371 | $ 1,375 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Disaggregation of Revenue by Major Source (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | [1] | $ 581,296 | $ 596,435 | $ 704,392 | |||
Tuition [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | 557,191 | 573,445 | 680,694 | ||||
Technology Fees [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | 19,150 | 17,966 | 16,855 | ||||
Other Miscellaneous Fees [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | [2] | 2,204 | 2,438 | 2,976 | |||
Tuition and Fees [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | 578,545 | 593,849 | 700,525 | ||||
Other [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | [3] | 2,751 | 2,586 | 3,867 | |||
University Group [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | [1] | 580,690 | 569,576 | 562,351 | |||
University Group [Member] | CTU [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | [1] | 375,770 | 371,325 | 369,319 | |||
University Group [Member] | AIU [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | [1] | 204,920 | 198,251 | 193,032 | [4] | ||
University Group [Member] | Tuition [Member] | CTU [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | 359,929 | 356,091 | 354,295 | ||||
University Group [Member] | Tuition [Member] | AIU [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | 196,712 | 190,739 | 185,929 | ||||
University Group [Member] | Technology Fees [Member] | CTU [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | 11,560 | 11,175 | 10,839 | ||||
University Group [Member] | Technology Fees [Member] | AIU [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | 7,590 | 6,791 | 6,013 | ||||
University Group [Member] | Other Miscellaneous Fees [Member] | CTU [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | [2] | 1,769 | 1,964 | 1,946 | |||
University Group [Member] | Other Miscellaneous Fees [Member] | AIU [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | [2] | 416 | 451 | 855 | |||
University Group [Member] | Tuition and Fees [Member] | CTU [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | 373,258 | 369,230 | 367,080 | ||||
University Group [Member] | Tuition and Fees [Member] | AIU [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | 204,718 | 197,981 | 192,797 | ||||
University Group [Member] | Other [Member] | CTU [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | [3] | 2,512 | 2,095 | 2,239 | |||
University Group [Member] | Other [Member] | AIU [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | [3] | 202 | 270 | 235 | |||
All Other Campuses [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | [1] | 606 | [5] | 26,859 | [6] | 142,041 | [7] |
All Other Campuses [Member] | Tuition [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | 550 | 26,615 | 140,470 | ||||
All Other Campuses [Member] | Technology Fees [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | 3 | ||||||
All Other Campuses [Member] | Other Miscellaneous Fees [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | [2] | 19 | 23 | 175 | |||
All Other Campuses [Member] | Tuition and Fees [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | 569 | 26,638 | 140,648 | ||||
All Other Campuses [Member] | Other [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | [3] | $ 37 | $ 221 | $ 1,393 | |||
[1] | The statement of income (loss) and comprehensive income (loss) balances including revenue, operating income (loss), depreciation and amortization and capital expenditures are presented above on a continuing operations basis. Total assets are presented on a consolidated basis including continuing and discontinued operations. | ||||||
[2] | Other miscellaneous fees include graduation fees, laboratory fees and activity fees. | ||||||
[3] | Other revenue primarily includes contract training revenue and bookstore and laptop sales. | ||||||
[4] | AIU: $32.0 million charge related to a significant legal settlement. | ||||||
[5] | All Other Campuses: $14.6 million of charges related to significant legal settlements and $9.4 million of charges related to remaining lease obligations of vacated space. | ||||||
[6] | All Other Campuses: $6.5 million charge related to a significant legal settlement and $14.8 million of charges related to remaining lease obligations of vacated space. | ||||||
[7] | All Other Campuses: $31.0 million of charges related to remaining lease obligations of vacated space. |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)Portfolio | Dec. 31, 2017USD ($) | |
Revenue Recognition [Line Items] | ||
Length of academic year | 210 days | |
Revenue recognized estimated reserve based on historical evidence | $ 0.9 | $ 0.9 |
ASC Topic 606 [Member] | ||
Revenue Recognition [Line Items] | ||
Revenue recognized for payments received from withdrawn students | $ 1.4 | $ 1.5 |
Number of portfolio for revenue recognition | Portfolio | 1 | |
Minimum [Member] | ||
Revenue Recognition [Line Items] | ||
Length of academic terms | 70 days | |
Minimum [Member] | ASC Topic 606 [Member] | ||
Revenue Recognition [Line Items] | ||
Days required for documentation to be eligible and approved for funding | 90 days | |
Maximum [Member] | ||
Revenue Recognition [Line Items] | ||
Length of academic terms | 77 days | |
Maximum [Member] | ASC Topic 606 [Member] | ||
Revenue Recognition [Line Items] | ||
Days required for documentation to be eligible and approved for funding | 120 days |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Previously Reported Balances, Adjustment and Current Reported Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Student receivables, net of allowance for doubtful accounts, current | $ 28,751 | $ 18,875 | |
Deferred revenue | $ 32,351 | $ 29,560 | $ 22,897 |
ASC Topic 606 [Member] | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Student receivables, net of allowance for doubtful accounts, current | 25,538 | ||
Deferred revenue | 29,560 | ||
Impact of Modified Retrospective Adoption of ASC 606 [Member] | ASC Topic 606 [Member] | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Student receivables, net of allowance for doubtful accounts, current | 6,663 | ||
Deferred revenue | $ 6,663 |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Contract Assets Offset with Deferred Revenue Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue Recognition [Abstract] | |||
Gross deferred revenue | $ 51,694 | $ 39,544 | $ 39,544 |
Gross contract assets | (19,343) | (9,984) | |
Deferred revenue, net | $ 32,351 | $ 29,560 | $ 22,897 |
Revenue Recognition - Changes i
Revenue Recognition - Changes in Deferred Revenue Balances (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | ||
Deferred Revenue Arrangement [Line Items] | ||
Gross deferred revenue, beginning balance | $ 39,544 | |
Revenue earned from balances existing | (36,408) | |
Billings during period | 590,851 | [1] |
Revenue earned for new billings during the period | (542,137) | |
Other adjustments | (156) | |
Gross deferred revenue, ending balance | 51,694 | |
University Group [Member] | CTU [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Gross deferred revenue, beginning balance | 23,933 | |
Revenue earned from balances existing | (22,218) | |
Billings during period | 373,671 | [1] |
Revenue earned for new billings during the period | (351,040) | |
Other adjustments | (96) | |
Gross deferred revenue, ending balance | 24,250 | |
University Group [Member] | AIU [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Gross deferred revenue, beginning balance | 15,507 | |
Revenue earned from balances existing | (14,086) | |
Billings during period | 216,670 | [1] |
Revenue earned for new billings during the period | (190,632) | |
Other adjustments | (15) | |
Gross deferred revenue, ending balance | 27,444 | |
All Other Campuses [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Gross deferred revenue, beginning balance | 104 | |
Revenue earned from balances existing | (104) | |
Billings during period | 510 | [1] |
Revenue earned for new billings during the period | (465) | |
Other adjustments | $ (45) | |
[1] | Billings during period includes adjustments for prior billings. |
Student Receivables - Additiona
Student Receivables - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Student receivables, net of allowance for doubtful accounts | $ 942 | $ 2,548 |
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 | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Receivables [Abstract] | ||||
Balance, Beginning of Period | $ 22,534 | $ 23,142 | $ 20,229 | |
Charges to Expense | [1] | 32,042 | 27,571 | 32,049 |
Amounts Written-off | (29,740) | (28,179) | (29,136) | |
Balance, End of Period | $ 24,836 | $ 22,534 | $ 23,142 | |
[1] | Charges to expense include an offset for recoveries of amounts previously written off of $5.7 million, $4.2 million and $6.2 million for the years ended December 31, 2018, 2017 and 2016, respectively. |
Student Receivables - Changes_2
Student Receivables - Changes in Current and Non-Current Receivables Allowance (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | |||
Recoveries of amounts previously written off | $ 5.7 | $ 4.2 | $ 6.2 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Cost Basis and Estimated Useful Lives of Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Computer hardware and software | $ 105,175 | $ 105,244 |
Leasehold improvements | 73,951 | 90,486 |
Furniture, fixtures and equipment | 37,362 | 40,464 |
Building and improvements | 8,578 | 8,578 |
Library materials | 982 | 1,522 |
Vehicles | 107 | 464 |
Construction in progress | 1,945 | 297 |
Property plant and equipment, Total | 228,100 | 247,055 |
Less-accumulated depreciation | (198,052) | (213,825) |
Total property and equipment, net | $ 30,048 | $ 33,230 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life (in years) | Shorter of Life of Lease or Useful Life | |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life (in years) | 3 years | |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life (in years) | 5 years | |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life (in years) | 10 years | |
Building and Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life (in years) | 15 years | |
Building and Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life (in years) | 35 years | |
Library Materials [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life (in years) | 10 years | |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life (in years) | 5 years |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 9,400,000 | $ 13,400,000 | $ 21,900,000 |
Asset impairment charges | $ 0 | $ 0 | $ 1,200,000 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Subject to or Available for Operating Lease [Line Items] | |||
Operating leases expiration date | 2,028 | ||
Operating leases obligation | $ 82,618 | ||
Continuing Operation [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Rent expense, including charges for vacated space, exclusive of related taxes | 15,500 | $ 28,100 | $ 70,400 |
Operating leases obligation | 81,810 | ||
All Other Campuses [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Operating leases obligation | $ 14,900 | ||
Minimum [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Lease term range, years | 1 year | ||
Number of renewal options for extended terms | 1 year | ||
Maximum [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Lease term range, years | 10 years | ||
Number of renewal options for extended terms | 2 years |
Leases - Schedule of Changes in
Leases - Schedule of Changes in Future Minimum Lease Obligations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Leases [Abstract] | |||
Balance, Beginning of Period | $ 20,763 | $ 36,814 | $ 12,892 |
Charges Incurred | 10,955 | 14,838 | 32,351 |
Net Cash Payments | (20,659) | (33,313) | (16,413) |
Other | 41 | 2,424 | 7,984 |
Balance, End of Period | $ 11,100 | $ 20,763 | $ 36,814 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments under Operating Leases for Continuing and Discontinued Operations (Detail) $ in Thousands | Dec. 31, 2018USD ($) | |
Property Subject to or Available for Operating Lease [Line Items] | ||
Operating Leases, 2019 | $ 21,884 | [1] |
Operating Leases, 2020 | 17,728 | |
Operating Leases, 2021 | 12,070 | |
Operating Leases, 2022 | 8,638 | |
Operating Leases, 2023 and thereafter | 22,298 | |
Operating Leases, Total | 82,618 | |
Continuing Operation [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Operating Leases, 2019 | 21,076 | [1] |
Operating Leases, 2020 | 17,728 | |
Operating Leases, 2021 | 12,070 | |
Operating Leases, 2022 | 8,638 | |
Operating Leases, 2023 and thereafter | 22,298 | |
Operating Leases, Total | 81,810 | |
Discontinued Operations [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Operating Leases, 2019 | 808 | [1] |
Operating Leases, Total | $ 808 | |
[1] | Amounts include payments due associated with executed early terminations of real estate leases. |
Leases - Schedule of Future M_2
Leases - Schedule of Future Minimum Sublease Rental Income under Operating Leases for Continuing and Discontinued Operations (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Property Subject to or Available for Operating Lease [Line Items] | |
Operating Subleases, 2019 | $ 3,631 |
Operating Subleases, 2020 | 2,750 |
Operating Subleases, 2021 | 1,279 |
Operating Subleases, 2022 | 777 |
Operating Subleases, 2023 and thereafter | 328 |
Operating Subleases, Total | 8,765 |
Continuing Operation [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Operating Subleases, 2019 | 3,457 |
Operating Subleases, 2020 | 2,750 |
Operating Subleases, 2021 | 1,279 |
Operating Subleases, 2022 | 777 |
Operating Subleases, 2023 and thereafter | 328 |
Operating Subleases, Total | 8,591 |
Discontinued Operations [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Operating Subleases, 2019 | 174 |
Operating Subleases, Total | $ 174 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Impairment Charges [Line Items] | ||
Changes in the carrying amount of goodwill | $ 0 | $ 0 |
Carrying values of goodwill | 87,356,000 | 87,356,000 |
CTU [Member] | ||
Impairment Charges [Line Items] | ||
Carrying values of goodwill | 45,900,000 | 45,900,000 |
AIU [Member] | ||
Impairment Charges [Line Items] | ||
Carrying values of goodwill | $ 41,400,000 | $ 41,400,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Net Book Value of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Intangible Assets Net Excluding Goodwill [Line Items] | ||
Net book value, non-amortizable intangible assets | $ 7,900 | $ 7,900 |
Accreditation Rights [Member] | ||
Intangible Assets Net Excluding Goodwill [Line Items] | ||
Net book value, non-amortizable intangible assets | 1,000 | 1,000 |
CTU Trade Name [Member] | ||
Intangible Assets Net Excluding Goodwill [Line Items] | ||
Net book value, non-amortizable intangible assets | $ 6,900 | $ 6,900 |
Restructuring Charges - Accrual
Restructuring Charges - Accrual for Severance and Related Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Restructuring And Related Activities [Abstract] | ||||
Balance, Beginning of Period | $ 2,170 | $ 8,686 | $ 18,985 | |
Severance and related charges | [1] | 1,898 | 507 | |
Payments | (2,883) | (6,767) | (11,015) | |
Non-cash adjustments | [2] | (589) | 251 | 209 |
Balance, End of Period | $ 596 | $ 2,170 | $ 8,686 | |
[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] | 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 | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2016 | ||
Restructuring And Related Cost [Line Items] | |||
Severance and related expenses | [1] | $ 1,898 | $ 507 |
University Group [Member] | |||
Restructuring And Related Cost [Line Items] | |||
Severance and related expenses | 1,865 | 84 | |
Corporate and Other [Member] | |||
Restructuring And Related Cost [Line Items] | |||
Severance and related expenses | 33 | 388 | |
Subtotal [Member] | |||
Restructuring And Related Cost [Line Items] | |||
Severance and related expenses | 1,898 | 472 | |
All Other Campuses [Member] | |||
Restructuring And Related Cost [Line Items] | |||
Severance and related expenses | 35 | ||
CTU [Member] | University Group [Member] | |||
Restructuring And Related Cost [Line Items] | |||
Severance and related expenses | 782 | 18 | |
AIU [Member] | University Group [Member] | |||
Restructuring And Related Cost [Line Items] | |||
Severance and related expenses | $ 1,083 | $ 66 | |
[1] | Includes charges related to COBRA and outplacement services which are assumed to be completed by the third month following an employee’s departure. |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | 48 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |||
Accrual for severance and related charges | $ 0.6 | $ 0.6 | $ 2.1 |
Accrued retention bonuses | $ 0.4 | 0.4 | |
Lease expiration teach out campuses | 2,021 | ||
Charges related to remaining obligations for continuing operations | $ 78.7 |
Credit Agreement - Additional I
Credit Agreement - Additional Information (Detail) - Credit Agreement [Member] - Revolving Credit Facility [Member] - BMO Harris Bank N.A. ("BMO Harris") [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 27, 2018 | |
Line Of Credit Facility [Line Items] | ||
Revolving credit facility | $ 50,000,000 | |
Revolving credit facility maturity date | Jan. 20, 2022 | |
Number of days for pre-payment notice | 3 days | |
Number of days for termination notice | 5 days | |
Minimum cash under covenant term | $ 50,000,000 | |
Percentage of cash and marketable securities deposited with bank collateral for securitization | 100.00% | |
Credit facility borrowings | $ 0 |
Credit Agreement - Schedule of
Credit Agreement - Schedule of Credit Agreements (Detail) - Credit Agreement [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | [1] | ||
Credit Agreements: | ||||
Credit facility remaining availability | $ 47,782 | $ 89,930 | ||
Outstanding letters of credit | [2],[3] | 2,218 | 5,070 | |
Availability of additional letters of credit | [4] | $ 22,782 | $ 54,930 | |
Weighted average annual interest rate | 0.00% | 0.00% | ||
Commitment fee rate | 0.30% | 0.25% | ||
Letter of credit fee rate | 1.25% | 0.75% | ||
[1] | Amounts listed as of and for the year ended December 31, 2017 relate to our previous credit agreement. | |||
[2] | As of December 31, 2017, $5.1 million of restricted short-term investments provided collateral for our letters of credit. | |||
[3] | As of December 31, 2018 and 2017, outstanding letters of credit not related to the credit agreements totaled $0.3 million and $0.8 million, respectively, which amounts are fully collateralized with restricted cash, which is in addition to the $5.1 million referenced in this Note 11 as of December 31, 2017. | |||
[4] | The letters of credit sublimit of $25.0 million and $60.0 million as of December 31, 2018 and 2017, respectively, under the credit agreements is part of, not in addition to, the $50.0 million and $95.0 million aggregate commitments as of December 31, 2018 and 2017, respectively. |
Credit Agreement - Schedule o_2
Credit Agreement - Schedule of Credit Agreements (Parenthetical) (Detail) - Credit Agreement [Member] - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | ||
Line Of Credit Facility [Line Items] | ||||
Outstanding letters of credit | [1],[2] | $ 2,218,000 | $ 5,070,000 | [3] |
BMO Harris Bank N.A. ("BMO Harris") [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Outstanding letters of credit | 300,000 | 800,000 | ||
BMO Harris Bank N.A. ("BMO Harris") [Member] | Letter of Credit [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Letters of credit, sublimit and aggregate commitments | 50,000,000 | 95,000,000 | ||
BMO Harris Bank N.A. ("BMO Harris") [Member] | Letter of Credit Sublimit [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Letters of credit, sublimit and aggregate commitments | $ 25,000,000 | $ 60,000,000 | ||
[1] | As of December 31, 2017, $5.1 million of restricted short-term investments provided collateral for our letters of credit. | |||
[2] | As of December 31, 2018 and 2017, outstanding letters of credit not related to the credit agreements totaled $0.3 million and $0.8 million, respectively, which amounts are fully collateralized with restricted cash, which is in addition to the $5.1 million referenced in this Note 11 as of December 31, 2017. | |||
[3] | Amounts listed as of and for the year ended December 31, 2017 relate to our previous credit agreement. |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 5 Months Ended | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Jul. 31, 2018Claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Loss Contingencies [Line Items] | |||||
Number of arbitration claims filed | Claim | 319 | ||||
Write-off of accounts receivable | $ 29,740 | $ 28,179 | $ 29,136 | ||
Student receivables, net of allowance for doubtful accounts | $ 942 | $ 942 | 2,548 | ||
AG Agreement [Member] | |||||
Loss Contingencies [Line Items] | |||||
Aggregate pre-tax charge | 6,400 | ||||
Payment to the collective group of attorneys general to cover expenses incurred during the course of their inquiry | $ 5,000 | ||||
Inquiry period | 5 years | ||||
Accounts receivable, description | The write-off of approximately $1.4 million of accounts receivable. Although the Company agreed to forgo efforts to collect on approximately $556 million of old accounts receivable that were incurred during the last 30 years by students at over 100 campuses who reside in participating states, all but approximately $1.4 million of these old accounts receivable were written-off in prior reporting periods over the last 30 years in the ordinary course of the Company’s operations. The agreement to forgo efforts to collect on these previously written-off receivables does not require any additional write-off expense to the Company’s financial statements. | ||||
Write-off of accounts receivable | $ 1,400 | ||||
Student receivables, net of allowance for doubtful accounts | 556,000 | $ 556,000 | |||
Committed to reimburse the administrator’s fees and expenses to be paid over the next three years. | 2,000 | ||||
Duration of agreement period, operational aspects | 6 years | ||||
Other Current Liabilities [Member] | |||||
Loss Contingencies [Line Items] | |||||
Accrual for legal fees and settlements | $ 6,100 | $ 6,100 | $ 8,700 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax [Line Items] | |||
Pretax income (loss) from continuing operations | $ 74,352,000 | $ 36,250,000 | $ (31,366,000) |
Recognition of an excess tax benefit and deficiency | $ 1,000,000 | ||
Effective tax rate impact associated with stock-based compensation | 1.40% | (3.20%) | |
Income tax rate non deductible legal settlement | $ 1,100,000 | ||
Effective income tax rate legal agreements | 1.40% | ||
U.S. corporate tax rate | 21.00% | 35.00% | 35.00% |
Effective tax rate increased | 145.30% | ||
Increase in tax expense (benefit) due to revaluation | $ 52,700,000 | ||
Decrease in effective tax rate due to settlement of a state income tax audit, percentage | 0.10% | (4.60%) | |
Worthless stock deduction, tax benefit net | $ 3,700,000 | ||
Decreased effective tax rate on worthless stock | 11.90% | ||
Effective rate tax adjustment related to federal tax, amount | $ 2,100,000 | ||
Decrease in effective tax rate due to settlement of a federal income tax audit, percentage | 6.70% | ||
Unrecognized tax benefits that would impact effective tax rate | $ 8,600,000 | $ 8,300,000 | |
Short-term reserves | 1,000,000 | ||
Long-term reserves | 8,000,000 | ||
Interest and penalties | $ 1,900,000 | 1,900,000 | |
Significant change in unrecognized tax benefits, nature of event description | Due to the expiration of various statutes of limitations | ||
Gross unrecognized tax benefits change range, minimum | $ 0 | ||
Gross unrecognized tax benefits change range, maximum | 1,600,000 | ||
Deferred tax asset, gross | 382,800,000 | 457,900,000 | |
Deferred tax liability, gross | 4,900,000 | 5,300,000 | |
Illinois edge gross credits available to offset future state income tax | 1,800,000 | ||
Net deferred income tax assets | 48,000,000 | 50,500,000 | |
Domestic Country [Member] | |||
Income Tax [Line Items] | |||
Net operating loss carry forwards | 193,600,000 | ||
Foreign Country [Member] | |||
Income Tax [Line Items] | |||
Foreign tax credits | 33,000,000 | ||
State [Member] | |||
Income Tax [Line Items] | |||
Net operating loss carry forwards | 437,100,000 | ||
Combined State [Member] | |||
Income Tax [Line Items] | |||
Net operating loss carry forwards | 38,800,000 | ||
Separate State [Member] | |||
Income Tax [Line Items] | |||
Net operating loss carry forwards | 193,400,000 | ||
Maximum [Member] | |||
Income Tax [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest benefit/expense recognized | $ (100,000) | 200,000 | $ (100,000) |
Maximum [Member] | Domestic Country [Member] | |||
Income Tax [Line Items] | |||
Net operating loss carry forwards, expiration year | 2,037 | ||
Maximum [Member] | Foreign Country [Member] | |||
Income Tax [Line Items] | |||
Foreign tax credits, expiration year | 2,023 | ||
Maximum [Member] | State [Member] | |||
Income Tax [Line Items] | |||
Net operating loss carry forwards, expiration year | 2,037 | ||
Minimum [Member] | Domestic Country [Member] | |||
Income Tax [Line Items] | |||
Net operating loss carry forwards, expiration year | 2,034 | ||
Minimum [Member] | Foreign Country [Member] | |||
Income Tax [Line Items] | |||
Foreign tax credits, expiration year | 2,022 | ||
Minimum [Member] | State [Member] | |||
Income Tax [Line Items] | |||
Net operating loss carry forwards, expiration year | 2,019 | ||
ASU 2016-09 [Member] | |||
Income Tax [Line Items] | |||
Recognition of an excess tax benefit and deficiency | $ 1,100,000 | ||
Increase in annual effective tax rate due to recognition of an excess tax benefit and deficiency | 3.20% | ||
Illinois [Member] | |||
Income Tax [Line Items] | |||
Increase in tax expense (benefit) due to revaluation | $ 1,700,000 | ||
Decrease in effective tax rate due to settlement of a state income tax audit, percentage | (4.60%) | ||
Illinois [Member] | Maximum [Member] | |||
Income Tax [Line Items] | |||
Edge credits expiration year | 2,019 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for (Benefits from) Income Taxes from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
State and local | $ 524 | $ 1,870 | $ 704 |
Total current provision | 524 | 1,870 | 704 |
Federal | 16,144 | 67,936 | (16,247) |
State and local | 1,893 | (2,681) | (1,007) |
Total deferred provision (benefit) | 18,037 | 65,255 | (17,254) |
Total provision for (benefit from) income taxes | $ 18,561 | $ 67,125 | $ (16,550) |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Statutory U.S. Federal Income Tax Rate to Effective Income Tax Rate for Continuing Operations (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||
Statutory U.S. federal income tax rate | 21.00% | 35.00% | 35.00% |
State and local income taxes | 3.10% | 2.30% | 3.40% |
Stock-based compensation | (1.40%) | 3.20% | |
Valuation allowance | 0.30% | (0.50%) | |
Legal settlement | 1.40% | ||
Federal audit settlement | 6.70% | ||
State audit settlement | 0.10% | (4.60%) | |
Federal income tax rate change | 145.30% | ||
Worthless stock | 11.90% | ||
Tax credits | (0.20%) | (0.70%) | (0.40%) |
Other | 1.00% | 4.40% | (4.10%) |
Effective income tax rate | 25.00% | 185.20% | 52.80% |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Gross unrecognized tax benefits, beginning of the year | $ 8,564 | $ 8,132 | $ 7,737 |
Additions for tax positions of prior years | 5 | 24 | 263 |
Additions for tax positions related to the current year | 1,839 | 1,625 | 1,247 |
Reductions due to lapse of applicable statute of limitations | (1,399) | (1,217) | (1,115) |
Subtotal | 9,009 | 8,564 | 8,132 |
Interest and penalties | 1,862 | 1,909 | 2,008 |
Total gross unrecognized tax benefits, end of the year | $ 10,871 | $ 10,473 | $ 10,140 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Deferred Income Tax Assets and Liabilities for Continuing Operations (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Accrued occupancy | $ 2,871 | $ 5,133 |
Deferred rent obligations | 1,382 | 1,746 |
Foreign tax credits | 32,998 | 32,998 |
Valuation allowance foreign tax credits | (32,998) | (32,998) |
Compensation and employee benefits | 7,038 | 8,520 |
Tax net operating loss carry forwards | 66,319 | 71,911 |
Valuation allowance | (13,656) | (14,561) |
Allowance for doubtful accounts | 3,388 | 2,943 |
Covenant not-to-compete | 2 | 3 |
Accrued settlements and legal | 252 | 2,065 |
Deferred compensation | 494 | 890 |
Accrued restructuring and severance | 156 | 394 |
Equity method for investments | 525 | 394 |
General business tax credits | 1,292 | 1,192 |
Illinois edge credits | 1,383 | 2,960 |
Valuation allowance edge credits | (1,383) | (2,960) |
Depreciation and amortization | 12,403 | 18,223 |
Other | 331 | 491 |
Total deferred income tax assets | 82,797 | 99,344 |
Other | 1,169 | 1,260 |
Total deferred income tax liabilities | 1,169 | 1,260 |
Net deferred income tax assets | $ 81,628 | $ 98,084 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares issuable upon exercise of outstanding options | 2,818,433 | 2,868,053 | 3,085,888 | 2,657,723 |
Estimated pretax compensation expense | $ 10 | |||
Expiration period in years | 4 years | |||
Service period in years | 4 years | |||
Restricted stock units settled in shares exercisable in percentage | 25.00% | |||
Restricted stock units settled in cash exercisable in percentage | 25.00% | |||
Stock compensation and recognized liability | $ 2.2 | $ 4.1 | $ 5.6 | |
Long-term incentive, cash-based awards | 3 years | |||
Performance unit award expenses | $ 3.1 | $ 5.3 | $ 5.4 | |
Volatility assumptions for estimating the fair value of stock options, minimum | 54.20% | |||
Volatility assumptions for estimating the fair value of stock options, maximum | 64.10% | |||
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 awards and units | 2,017,477 | 1,453,823 | 1,712,204 | 757,871 |
Service period in years | 4 years | |||
Performance-based Restricted Stock Units [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Service period in years | 3 years | |||
Performance-based 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% | |||
Performance-based 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% | |||
Performance-based 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% | |||
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 | 2,100,000 | |||
Shares issuable upon exercise of outstanding options | 800,000 | |||
Number of shares to reduce shares available to grant by upon vesting of restricted stock awards and units | 2,100,000 | |||
2008 Incentive Compensation Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares issuable upon exercise of outstanding options | 2,000,000 | |||
Number of shares to reduce shares available to grant by upon vesting of restricted stock awards and units | 500,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Beginning balance of Outstanding, Options | 2,868,053 | 3,085,888 | 2,657,723 |
Granted, Options | 336,768 | 365,709 | 915,122 |
Exercised, Options | (161,072) | (288,618) | (89,773) |
Forfeited, Options | (75,426) | (120,964) | |
Cancelled, Options | (225,316) | (219,500) | (276,220) |
Ending balance of Outstanding, Options | 2,818,433 | 2,868,053 | 3,085,888 |
Exercisable, Options | 1,847,335 | ||
Beginning balance of Outstanding, Weighted Average Exercise Price | $ 9.86 | $ 11.18 | $ 14.27 |
Granted, Weighted Average Exercise Price | 14.10 | 8.67 | 4.81 |
Exercised, Weighted Average Exercise Price | 8.46 | 8.18 | 4.17 |
Forfeited, Weighted Average Exercise Price | 6.97 | 5.11 | |
Cancelled, Weighted Average Exercise Price | 20.58 | 29.67 | 24.69 |
Ending balance of Outstanding, Weighted Average Exercise Price | 9.59 | $ 9.86 | $ 11.18 |
Exercisable, Weighted Average Exercise Price | $ 10.13 | ||
Outstanding, Weighted Average Remaining Contractual Term | 6 years 1 month 20 days | ||
Exercisable, Weighted Average Remaining Contractual Term | 5 years 1 month 28 days | ||
Exercised, Aggregate Intrinsic Value | $ 987 | $ 250 | $ 189 |
Outstanding, Aggregate Intrinsic Value | 12,275 | ||
Exercisable, Aggregate Intrinsic Value | $ 8,605 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Information with Respect to Outstanding and Exercisable Stock Options (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Number of Options Outstanding | 2,818,433 | 2,868,053 | 3,085,888 | 2,657,723 |
Options Outstanding, Weighted Average Exercise Price | $ 9.59 | $ 9.86 | $ 11.18 | $ 14.27 |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 6 years 1 month 20 days | |||
Options Exercisable, Number Exercisable | 1,847,335 | |||
Options Exercisable, Weighted Average Exercise Price | $ 10.13 | |||
Range of Exercise Prices $2.65 - $4.07 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | 2.65 | |||
Range of Exercise Prices, Maximum | $ 4.07 | |||
Options Outstanding, Number of Options Outstanding | 326,324 | |||
Options Outstanding, Weighted Average Exercise Price | $ 3.57 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 5 years 9 months 21 days | |||
Options Exercisable, Number Exercisable | 312,162 | |||
Options Exercisable, Weighted Average Exercise Price | $ 3.54 | |||
Range of Exercise Prices $4.15 - $4.15 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | 4.15 | |||
Range of Exercise Prices, Maximum | $ 4.15 | |||
Options Outstanding, Number of Options Outstanding | 250,732 | |||
Options Outstanding, Weighted Average Exercise Price | $ 4.15 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 6 years 7 months 9 days | |||
Options Exercisable, Number Exercisable | 188,049 | |||
Options Exercisable, Weighted Average Exercise Price | $ 4.15 | |||
Range of Exercise Prices $4.49 - $4.49 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | 4.49 | |||
Range of Exercise Prices, Maximum | $ 4.49 | |||
Options Outstanding, Number of Options Outstanding | 683,104 | |||
Options Outstanding, Weighted Average Exercise Price | $ 4.49 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 7 years 2 months 4 days | |||
Options Exercisable, Number Exercisable | 341,552 | |||
Options Exercisable, Weighted Average Exercise Price | $ 4.49 | |||
Range of Exercise Prices $5.00 - $6.51 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | 5 | |||
Range of Exercise Prices, Maximum | $ 6.51 | |||
Options Outstanding, Number of Options Outstanding | 346,012 | |||
Options Outstanding, Weighted Average Exercise Price | $ 6 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 5 years 9 months 3 days | |||
Options Exercisable, Number Exercisable | 316,904 | |||
Options Exercisable, Weighted Average Exercise Price | $ 6.01 | |||
Range of Exercise Prices $7.22 - $8.30 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | 7.22 | |||
Range of Exercise Prices, Maximum | $ 8.30 | |||
Options Outstanding, Number of Options Outstanding | 324,832 | |||
Options Outstanding, Weighted Average Exercise Price | $ 8.07 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 7 years 4 months 28 days | |||
Options Exercisable, Number Exercisable | 138,007 | |||
Options Exercisable, Weighted Average Exercise Price | $ 7.76 | |||
Range of Exercise Prices $8.63 - $13.80 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | 8.63 | |||
Range of Exercise Prices, Maximum | $ 13.80 | |||
Options Outstanding, Number of Options Outstanding | 377,061 | |||
Options Outstanding, Weighted Average Exercise Price | $ 12.65 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 8 years 8 months 8 days | |||
Options Exercisable, Number Exercisable | 104,429 | |||
Options Exercisable, Weighted Average Exercise Price | $ 9.65 | |||
Range of Exercise Prices $15.39 - $22.13 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | 15.39 | |||
Range of Exercise Prices, Maximum | $ 22.13 | |||
Options Outstanding, Number of Options Outstanding | 312,712 | |||
Options Outstanding, Weighted Average Exercise Price | $ 20.66 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 3 years 3 days | |||
Options Exercisable, Number Exercisable | 248,576 | |||
Options Exercisable, Weighted Average Exercise Price | $ 22.02 | |||
Range of Exercise Prices $26.15 - $26.15 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | 26.15 | |||
Range of Exercise Prices, Maximum | $ 26.15 | |||
Options Outstanding, Number of Options Outstanding | 36,144 | |||
Options Outstanding, Weighted Average Exercise Price | $ 26.15 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 1 month 24 days | |||
Options Exercisable, Number Exercisable | 36,144 | |||
Options Exercisable, Weighted Average Exercise Price | $ 26.15 | |||
Range of Exercise Prices $29.02 - $29.02 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | 29.02 | |||
Range of Exercise Prices, Maximum | $ 29.02 | |||
Options Outstanding, Number of Options Outstanding | 41,512 | |||
Options Outstanding, Weighted Average Exercise Price | $ 29.02 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 1 year 2 months 1 day | |||
Options Exercisable, Number Exercisable | 41,512 | |||
Options Exercisable, Weighted Average Exercise Price | $ 29.02 | |||
Range of Exercise Prices $30.67 - $30.67 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | 30.67 | |||
Range of Exercise Prices, Maximum | $ 30.67 | |||
Options Outstanding, Number of Options Outstanding | 120,000 | |||
Options Outstanding, Weighted Average Exercise Price | $ 30.67 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 1 year 4 months 17 days | |||
Options Exercisable, Number Exercisable | 120,000 | |||
Options Exercisable, Weighted Average Exercise Price | $ 30.67 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Information with Respect to all Outstanding Restricted Stock (Detail) - Restricted Stock Units [Member] - $ / shares | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Beginning balance of Outstanding, Units | 1,453,823 | 1,712,204 | 757,871 | ||
Granted, Units | 1,397,644 | 289,392 | 1,555,828 | ||
Vested, Units | (709,132) | (422,284) | [1] | (381,850) | [1] |
Forfeited, Units | (124,858) | (125,489) | (219,645) | ||
Ending balance of Outstanding, Units | 2,017,477 | 1,453,823 | 1,712,204 | ||
Beginning balance of Outstanding, Weighted Average Grant-Date Fair Value Per Unit | $ 5.32 | $ 4.63 | $ 5.55 | ||
Granted, Weighted Average Grant-Date Fair Value Per Unit | 12.91 | 8.49 | 4.58 | ||
Vested, Weighted Average Grant-Date Fair Value Per Unit | 4.97 | 4.64 | [1] | 5.98 | [1] |
Forfeited, Weighted Average Grant-Date Fair Value Per Unit | 7.14 | 5.56 | 5.06 | ||
Ending balance of Outstanding, Weighted Average Grant-Date Fair Value Per Unit | $ 10.59 | $ 5.32 | $ 4.63 | ||
[1] | The total vested awards include 6.3 thousand and 9.2 thousand of vested restricted stock units settled in cash for the years ended December 31, 2017 and 2016, respectively. These awards granted in 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. |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Information with Respect to all Outstanding Restricted Stock (Parenthetical) (Detail) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted Stock Units [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vested stock settled in cash | 6,300 | 9,200 |
Share-Based Compensation - Sc_4
Share-Based Compensation - Schedule of Deferred Stock Units to be Settled in Shares (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Beginning balance of Outstanding, Deferred Stock Units to be Settled in Shares | [1] | 76,023 | 76,023 | 90,642 |
Granted, Deferred Stock Units to be Settled in Shares | 0 | 0 | 0 | |
Vested, Deferred Stock Units to be Settled in Shares | 0 | 0 | (14,619) | |
Forfeited, Deferred Stock Units to be Settled in Shares | 0 | 0 | 0 | |
Ending balance of Outstanding, Deferred Stock Units to be Settled in Shares | [1] | 76,023 | 76,023 | 76,023 |
Beginning balance of Outstanding, Weighted Average Grant-Date Fair Value Per Unit | [1] | $ 4.44 | $ 4.44 | $ 4.43 |
Granted, Weighted Average Grant-Date Fair Value Per Unit | 0 | 0 | 0 | |
Vested, Weighted Average Grant-Date Fair Value Per Unit | 0 | 0 | 4.39 | |
Forfeited, Weighted Average Grant-Date Fair Value Per Unit | 0 | 0 | 0 | |
Ending balance of Outstanding, Weighted Average Grant-Date Fair Value Per Unit | [1] | $ 4.44 | $ 4.44 | $ 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. |
Share-Based Compensation - Sc_5
Share-Based Compensation - Schedule of Restricted Stock Units to be Settled in Cash (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Beginning balance of Outstanding, Restricted Stock Units to be Settled in Cash | 471,728 | 1,192,078 | 1,575,050 |
Restricted Stock Units to be Settled in Cash, Granted | 461,428 | ||
Restricted Stock Units to be Settled in Cash, Vested | (214,192) | (650,729) | (610,680) |
Restricted Stock Units to be Settled in Cash, Forfeited | (44,742) | (69,621) | (233,720) |
Ending balance of Outstanding, Restricted Stock Units to be Settled in Cash | 212,794 | 471,728 | 1,192,078 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Total Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 7,794 | $ 9,085 | $ 8,785 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 1,956 | 1,585 | 1,256 |
Restricted Stock Units Settled in Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 3,641 | 3,366 | 1,960 |
Restricted Stock Units Settled in Cash [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 2,197 | $ 4,134 | $ 5,569 |
Share-Based Compensation - Sc_6
Share-Based Compensation - Schedule of Fair Value of Stock Option Award Granted Estimated on Date of Grant Using the Black-Scholes-Merton Option Pricing Model (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Risk-free interest rate | 2.60% | 1.90% | 1.30% |
Weighted average volatility | 56.10% | 64.20% | 70.40% |
Expected life (in years) | 5 years | 5 years 2 months 12 days | 4 years 9 months 18 days |
Weighted average grant date fair value per share of options granted | $ 7.09 | $ 4.81 | $ 2.75 |
Weighted Average Common Share_2
Weighted Average Common Shares - Summary of Weighted Average Numbers of Common Shares Used to Compute Basic and Diluted Net (Loss) Income Per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | [1] | |
Earnings Per Share [Abstract] | |||||
Basic common shares outstanding | 69,598 | 68,949 | 68,373 | ||
Common stock equivalents | 1,884 | ||||
Diluted common shares outstanding | 71,482 | 68,949 | 68,373 | ||
[1] | Due to the fact that we reported a loss from continuing operations for the years ended December 31, 2017 and 2016, potential common stock equivalents were 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 years ended December 31, 2017 and 2016. |
Weighted Average Common Share_3
Weighted Average Common Shares - Summary of Weighted Average Numbers of Common Shares Used to Compute Basic and Diluted Net (Loss) Income Per Share (Parenthetical) (Detail) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive awards excluded from computations of diluted earnings per share | 0 | 0 |
Weighted Average Common Share_4
Weighted Average Common Shares - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive awards excluded from computations of diluted earnings per share | 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 | 800 | ||
Common Stock [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average number of shares issued | 24 | 37 | 64 |
Common Stock [Member] | Maximum [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average number of shares issued | 100 | 100 | 100 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of amount vested to defined contribution retirement savings plan | 100.00% | ||
Expense for continuing and discontinued operations under employee benefit plan | $ 2,700,000 | $ 2,800,000 | $ 2,900,000 |
Percentage of fair market value of common stock | 95.00% | ||
Percentage of shares limited to an employee under employee stock purchase plan | 10.00% | ||
Maximum salary of employee allowed to purchase shares under employee stock purchase plan | $ 25,000 | ||
Common stock issued under employee stock purchase plan | 3,300,000 | ||
0-2% Contribution [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of amount contributed to defined contribution retirement savings plan | 50.00% | 50.00% | 50.00% |
2-4% Contribution [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of amount contributed to defined contribution retirement savings plan | 25.00% | 25.00% | 25.00% |
Minimum number of hours worked | 1000 hours | ||
Employee Stock Purchase Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Authorized to grant the common stock under the employee stock purchase plan | 4,000,000 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018Segment | |
Segment Reporting Information [Line Items] | |
Number of reporting segments | 3 |
CTU [Member] | |
Segment Reporting Information [Line Items] | |
Students enrolled expressed as percentage of enrollment | 66.00% |
CTU [Member] | Fully Online [Member] | |
Segment Reporting Information [Line Items] | |
Percentage of enrollment | 93.00% |
AIU [Member] | |
Segment Reporting Information [Line Items] | |
Students enrolled expressed as percentage of enrollment | 34.00% |
AIU [Member] | Fully Online [Member] | |
Segment Reporting Information [Line Items] | |
Percentage of enrollment | 94.00% |
Segment Reporting - Summary Fin
Segment Reporting - Summary Financial Information by Reporting Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | [3] | Mar. 31, 2018 | [4] | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenue | [1] | $ 581,296 | $ 596,435 | $ 704,392 | |||||||||||||||
Operating Income (Loss) | $ 20,183 | [2] | $ 19,283 | $ 11,303 | $ 20,529 | $ 10,712 | [5] | $ 4,539 | $ 9,104 | $ 9,781 | 71,298 | [1] | 34,136 | [1] | (32,344) | [1] | |||
Depreciation and amortization | [1] | 9,394 | 13,990 | 22,747 | |||||||||||||||
Capital Expenditures | [1] | 6,732 | 6,332 | 4,129 | |||||||||||||||
Total Assets | [1] | 482,493 | 447,096 | 482,493 | 447,096 | ||||||||||||||
University Group [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenue | [1] | 580,690 | 569,576 | 562,351 | |||||||||||||||
Operating Income (Loss) | [1] | 119,799 | 117,603 | 69,814 | |||||||||||||||
Depreciation and amortization | [1] | 8,892 | 3,799 | 3,844 | |||||||||||||||
Capital Expenditures | [1] | 369 | 153 | 1,081 | |||||||||||||||
Total Assets | [1] | 135,846 | 124,820 | 135,846 | 124,820 | ||||||||||||||
Corporate and Other [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Operating Income (Loss) | [1] | (16,598) | (22,067) | (25,097) | |||||||||||||||
Depreciation and amortization | [1] | 369 | 6,527 | 7,320 | |||||||||||||||
Capital Expenditures | [1] | 6,363 | 6,179 | 2,512 | |||||||||||||||
Total Assets | [1] | 330,132 | 291,211 | 330,132 | 291,211 | ||||||||||||||
Subtotal [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenue | [1] | 580,690 | 569,576 | 562,351 | |||||||||||||||
Operating Income (Loss) | [1] | 103,201 | 95,536 | 44,717 | |||||||||||||||
Depreciation and amortization | [1] | 9,261 | 10,326 | 11,164 | |||||||||||||||
Capital Expenditures | [1] | 6,732 | 6,332 | 3,593 | |||||||||||||||
Total Assets | [1] | 465,978 | 416,031 | 465,978 | 416,031 | ||||||||||||||
All Other Campuses [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenue | [1] | 606 | [6] | 26,859 | [7] | 142,041 | [8] | ||||||||||||
Operating Income (Loss) | [1] | (31,903) | [6] | (61,400) | [7] | (77,061) | [8] | ||||||||||||
Depreciation and amortization | [1] | 133 | [6] | 3,664 | [7] | 11,583 | [8] | ||||||||||||
Capital Expenditures | [1],[8] | 536 | |||||||||||||||||
Total Assets | [1] | 16,337 | [6] | 29,098 | [7] | 16,337 | [6] | 29,098 | [7] | ||||||||||
CTU [Member] | University Group [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenue | [1] | 375,770 | 371,325 | 369,319 | |||||||||||||||
Operating Income (Loss) | [1] | 111,623 | 109,202 | 99,412 | |||||||||||||||
Depreciation and amortization | [1] | 5,310 | 2,047 | 2,157 | |||||||||||||||
Capital Expenditures | [1] | 168 | 74 | 675 | |||||||||||||||
Total Assets | [1] | 76,713 | 72,988 | 76,713 | 72,988 | ||||||||||||||
AIU [Member] | University Group [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenue | [1] | 204,920 | 198,251 | 193,032 | [9] | ||||||||||||||
Operating Income (Loss) | [1] | 8,176 | 8,401 | (29,598) | [9] | ||||||||||||||
Depreciation and amortization | [1] | 3,582 | 1,752 | 1,687 | [9] | ||||||||||||||
Capital Expenditures | [1] | 201 | 79 | $ 406 | [9] | ||||||||||||||
Total Assets | [1] | 59,133 | 51,832 | 59,133 | 51,832 | ||||||||||||||
Discontinued Operations [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total Assets | [1] | $ 178 | $ 1,967 | $ 178 | $ 1,967 | ||||||||||||||
[1] | The statement of income (loss) and comprehensive income (loss) balances including revenue, operating income (loss), depreciation and amortization and capital expenditures are presented above on a continuing operations basis. Total assets are presented on a consolidated basis including continuing and discontinued operations. | ||||||||||||||||||
[2] | Fourth quarter of 2018 net income included a $5.0 million significant legal settlement. | ||||||||||||||||||
[3] | Second quarter of 2018 net income included a $6.0 million significant legal settlement. | ||||||||||||||||||
[4] | First quarter of 2018 net income included a $3.5 million significant legal settlement. | ||||||||||||||||||
[5] | Fourth quarter of 2017 net loss included a $6.5 million significant legal settlement. Fourth quarter 2017 also includes $52.7 million of tax expense related to the impact of the Tax Cuts and Jobs Act which was enacted in the fourth quarter of 2017. | ||||||||||||||||||
[6] | All Other Campuses: $14.6 million of charges related to significant legal settlements and $9.4 million of charges related to remaining lease obligations of vacated space. | ||||||||||||||||||
[7] | All Other Campuses: $6.5 million charge related to a significant legal settlement and $14.8 million of charges related to remaining lease obligations of vacated space. | ||||||||||||||||||
[8] | All Other Campuses: $31.0 million of charges related to remaining lease obligations of vacated space. | ||||||||||||||||||
[9] | AIU: $32.0 million charge related to a significant legal settlement. |
Segment Reporting - Summary F_2
Segment Reporting - Summary Financial Information by Reporting Segment (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||
Significant legal settlements charge | $ 5 | $ 6 | $ 3.5 | $ 6.5 | |||
All Other Campuses [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Significant legal settlements charge | $ 14.6 | $ 6.5 | |||||
Charge related to remaining lease obligations | $ 9.4 | $ 14.8 | $ 31 | ||||
University Group [Member] | AIU [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Significant legal settlements charge | $ 32 |
Discontinued Operations - Combi
Discontinued Operations - Combined Summary Results of Operations for Discontinued Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Discontinued Operations And Disposal Groups [Abstract] | |||
Total operating expenses | $ 1,089 | $ 2,310 | $ 6,586 |
Loss before income tax | (1,089) | (2,268) | (6,586) |
Benefit from income tax | (479) | (1,246) | (2,690) |
Loss from discontinued operations, net of tax | $ (610) | $ (1,022) | $ (3,896) |
Discontinued Operations - Asset
Discontinued Operations - Assets and Liabilities of Discontinued Operations on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disposal Group Including Discontinued Operation Balance Sheet Disclosures [Abstract] | ||
Receivables, net | $ 382 | |
Total current assets | 382 | |
Deferred income tax assets, net | $ 178 | 1,585 |
Total assets of discontinued operations | 178 | 1,967 |
Accounts payable and accrued expenses | 51 | 185 |
Remaining lease obligations | 485 | 5,516 |
Total current liabilities | 536 | 5,701 |
Remaining lease obligations | 785 | |
Total liabilities of discontinued operations | $ 536 | $ 6,486 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Lease expiration year | 2,019 |
Discontinued Operations - Chang
Discontinued Operations - Changes in Future Remaining Lease Obligations Discontinued Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Discontinued Operations And Disposal Groups [Abstract] | ||||
Balance, Beginning of Period | $ 6,301 | $ 14,474 | $ 21,751 | |
Charges Incurred | [1] | (141) | 818 | 4,090 |
Net Cash Payments | [2] | (5,675) | (8,991) | (11,367) |
Balance, End of Period | $ 485 | $ 6,301 | $ 14,474 | |
[1] | Includes subsequent adjustments for accretion, revised estimates, and variances between estimated and actual charges, net of any reversals for terminated lease obligations. | |||
[2] | See Note 8 “Leases” for the future minimum lease payments under operating leases for discontinued operations as of December 31, 2018. |
Quarterly Financial Summary (_3
Quarterly Financial Summary (Unaudited) - Schedule of Quarterly Financial Summary (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2018 | [1] | Sep. 30, 2018 | Jun. 30, 2018 | [2] | Mar. 31, 2018 | [3] | Dec. 31, 2017 | [4] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||
Revenue | $ 145,505 | $ 145,690 | $ 142,036 | $ 148,065 | $ 143,118 | $ 144,986 | $ 146,222 | $ 162,109 | $ 581,296 | $ 596,435 | ||||||||||||
Operating income (loss) | 20,183 | 19,283 | 11,303 | 20,529 | 10,712 | 4,539 | 9,104 | 9,781 | 71,298 | [5] | 34,136 | [5] | $ (32,344) | [5] | ||||||||
Net income (loss) | $ 14,071 | $ 14,857 | $ 8,751 | $ 17,502 | $ (44,382) | $ 3,022 | $ 4,286 | $ 5,177 | $ 55,181 | $ (31,897) | $ (18,712) | |||||||||||
Net income (loss) per share Basic | $ 0.20 | [6] | $ 0.21 | [6] | $ 0.13 | [6] | $ 0.25 | [6] | $ (0.64) | [6] | $ 0.04 | [6] | $ 0.06 | [6] | $ 0.08 | [6] | $ 0.79 | [6] | $ (0.46) | [6] | $ (0.27) | |
Net income (loss) per share Diluted | $ 0.20 | [6] | $ 0.21 | [6] | $ 0.12 | [6] | $ 0.25 | [6] | $ (0.64) | [6] | $ 0.04 | [6] | $ 0.06 | [6] | $ 0.07 | [6] | $ 0.77 | [6] | $ (0.46) | [6] | $ (0.27) | |
[1] | Fourth quarter of 2018 net income included a $5.0 million significant legal settlement. | |||||||||||||||||||||
[2] | Second quarter of 2018 net income included a $6.0 million significant legal settlement. | |||||||||||||||||||||
[3] | First quarter of 2018 net income included a $3.5 million significant legal settlement. | |||||||||||||||||||||
[4] | Fourth quarter of 2017 net loss included a $6.5 million significant legal settlement. Fourth quarter 2017 also includes $52.7 million of tax expense related to the impact of the Tax Cuts and Jobs Act which was enacted in the fourth quarter of 2017. | |||||||||||||||||||||
[5] | The statement of income (loss) and comprehensive income (loss) balances including revenue, operating income (loss), depreciation and amortization and capital expenditures are presented above on a continuing operations basis. Total assets are presented on a consolidated basis including continuing and discontinued operations. | |||||||||||||||||||||
[6] | Basic and diluted earnings per share are calculated independently for each of the quarters presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree with the annual earnings per share amount for the corresponding year. |
Quarterly Financial Summary (_4
Quarterly Financial Summary (Unaudited) - Schedule of Quarterly Financial Summary (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | ||||
Significant legal settlements charge | $ 5 | $ 6 | $ 3.5 | $ 6.5 |
Tax expense related to impact of enacted tax cuts and jobs act during period | $ 52.7 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Valuation Allowance for Deferred Tax Assets [Member] | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Valuation allowance, Beginning balance | [1] | $ 50,519 | $ 49,748 | $ 47,545 |
Valuation allowance, Additions/Charges to Expense | [1] | 2,146 | 4,219 | |
Valuation allowance, Deductions/ Other | [1] | (2,482) | (1,375) | (2,016) |
Valuation allowance, Ending balance | [1] | 48,037 | 50,519 | 49,748 |
Valuation Allowance for Accounts Receivable [Member] | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Valuation allowance, Beginning balance | 22,534 | 23,142 | 20,229 | |
Valuation allowance, Additions/Charges to Expense | 32,042 | 27,571 | 32,049 | |
Valuation allowance, Deductions/ Other | (29,740) | (28,179) | (29,136) | |
Valuation allowance, Ending balance | $ 24,836 | $ 22,534 | $ 23,142 | |
[1] | Amounts include both continuing and discontinued operations gross deferred tax balances. |