Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 29, 2015 | |
Entity Information [Line Items] | ||
Entity Registrant Name | BRIDGEPOINT EDUCATION INC | |
Entity Central Index Key | 1,305,323 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 45,782,583 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 242,673 | $ 207,003 |
Restricted cash | 24,591 | 25,934 |
Investments | 21,902 | 12,051 |
Accounts receivable, net | 30,793 | 21,274 |
Student loans receivable, net | 928 | 1,003 |
Deferred income taxes | 12,757 | 21,301 |
Prepaid expenses and other current assets | 33,577 | 22,818 |
Total current assets | 367,221 | 311,384 |
Property and equipment, net | 30,560 | 78,219 |
Investments | 71,364 | 111,557 |
Student loans receivable, net | 7,607 | 9,510 |
Goodwill and intangibles, net | 22,221 | 24,775 |
Deferred income taxes | 4,118 | 20,175 |
Other long-term assets | 2,209 | 2,475 |
Total assets | 505,300 | 558,095 |
Current liabilities: | ||
Accounts payable | 2,128 | 1,013 |
Accrued liabilities | 72,364 | 51,403 |
Deferred revenue and student deposits | 89,614 | 108,048 |
Total current liabilities | 164,106 | 160,464 |
Rent liability | 21,397 | 22,098 |
Other long-term liabilities | 11,902 | 9,652 |
Total liabilities | $ 197,405 | $ 192,214 |
Commitments and contingencies (see Note 14) | ||
Preferred stock, $0.01 par value: | ||
20,000 shares authorized; zero shares issued and outstanding at both September 30, 2015, and December 31, 2014 | $ 0 | $ 0 |
Common stock, $0.01 par value: | ||
300,000 shares authorized; 63,340 issued and 45,783 outstanding at September 30, 2015; 62,957 issued and 45,400 outstanding at December 31, 2014 | 633 | 630 |
Additional paid-in capital | 186,375 | 180,720 |
Retained earnings | 458,008 | 521,775 |
Accumulated other comprehensive loss | (52) | (175) |
Treasury stock, 17,557 shares at cost at both September 30, 2015, and December 31, 2014 | (337,069) | (337,069) |
Total stockholders' equity | 307,895 | 365,881 |
Total liabilities and stockholders' equity | $ 505,300 | $ 558,095 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets - Parenthetical - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Stockholders' equity: | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
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 | 63,340,000 | 62,957,000 |
Common stock, shares outstanding | 45,783,000 | 45,400,000 |
Treasury stock, shares at cost | 17,557,000 | 17,557,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue | $ 140,762 | $ 162,654 | $ 430,337 | $ 491,446 |
Costs and expenses: | ||||
Instructional costs and services | 69,197 | 79,707 | 215,656 | 239,641 |
Admissions advisory and marketing | 47,794 | 56,783 | 148,636 | 178,079 |
General and administrative | 13,346 | 15,583 | 42,914 | 48,589 |
Restructuring and impairment charges | 44,904 | 0 | 59,322 | 0 |
Total costs and expenses | 175,241 | 152,073 | 466,528 | 466,309 |
Operating income (loss) | (34,479) | 10,581 | (36,191) | 25,137 |
Other income, net | 465 | 1,080 | 1,499 | 2,159 |
Income (loss) before income taxes | (34,014) | 11,661 | (34,692) | 27,296 |
Income tax expense | 28,732 | 5,370 | 29,075 | 12,380 |
Net income (loss) | $ (62,746) | $ 6,291 | $ (63,767) | $ 14,916 |
Earnings (loss) per share: | ||||
Basic (in usd per share) | $ (1.37) | $ 0.14 | $ (1.40) | $ 0.33 |
Diluted (in usd per share) | $ (1.37) | $ 0.14 | $ (1.40) | $ 0.32 |
Weighted average number of common shares outstanding used in computing earnings per share: | ||||
Basic (in shares) | 45,754 | 45,301 | 45,620 | 45,145 |
Diluted (in shares) | 45,754 | 46,474 | 45,620 | 46,495 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net income (loss) | $ (62,746) | $ 6,291 | $ (63,767) | $ 14,916 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gains (losses) on investments | (12) | (123) | 123 | (195) |
Comprehensive income (loss) | $ (62,758) | $ 6,168 | $ (63,644) | $ 14,721 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Stockholders' Equity - 9 months ended Sep. 30, 2015 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Balance, shares at Dec. 31, 2014 | 62,957 | |||||
Balance at Dec. 31, 2014 | $ 365,881 | $ 630 | $ 180,720 | $ 521,775 | $ (175) | $ (337,069) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 7,324 | 7,324 | ||||
Exercise of stock options, shares | 166 | |||||
Exercise of stock options | 260 | $ 1 | 259 | |||
Excess tax benefit of option exercises and restricted stock, net of tax shortfall | (770) | (770) | ||||
Stock issued under employee stock purchase plan, shares | 16 | |||||
Stock issued under employee stock purchase plan | 136 | 136 | ||||
Stock issued under stock incentive plan, net of shares held for taxes, shares | 201 | |||||
Stock issued under stock incentive plan, net of shares held for taxes | (1,292) | $ 2 | (1,294) | |||
Net loss | (63,767) | (63,767) | ||||
Unrealized gains on investments, net of tax | 123 | 123 | ||||
Balance, shares at Sep. 30, 2015 | 63,340 | |||||
Balance at Sep. 30, 2015 | $ 307,895 | $ 633 | $ 186,375 | $ 458,008 | $ (52) | $ (337,069) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (63,767) | $ 14,916 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Provision for bad debts | 24,269 | 21,961 |
Depreciation and amortization | 15,403 | 17,914 |
Amortization of premium/discount | 364 | 85 |
Deferred income taxes | 24,081 | 1,124 |
Stock-based compensation | 7,324 | 7,891 |
Excess tax benefit of option exercises | (426) | (1,171) |
Loss on impairment of student loans receivable | 1,207 | 1,466 |
Net gain (loss) on marketable securities | 125 | (22) |
Loss on termination of leased space | 13,540 | 0 |
Loss on impairment of fixed assets | 38,855 | 80 |
Changes in operating assets and liabilities: | ||
Restricted cash | 7,712 | 12,202 |
Accounts receivable | (33,524) | (30,314) |
Prepaid expenses and other current assets | 5,537 | 3,317 |
Student loans receivable | 831 | 763 |
Other long-term assets | 266 | 368 |
Accounts payable and accrued liabilities | (2,883) | (532) |
Deferred revenue and student deposits | (18,313) | (23,600) |
Other liabilities | (3,960) | (1,864) |
Net cash provided by operating activities | 16,641 | 24,584 |
Cash flows from investing activities: | ||
Capital expenditures | (2,324) | (9,644) |
Purchases of investments | (20,242) | (87,855) |
Non-operating restricted cash | (6,369) | (29) |
Capitalized costs for intangible assets | (1,761) | (2,957) |
Sales and maturities of investments | 50,195 | 50,000 |
Net cash provided by (used in) investing activities | 19,499 | (50,485) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 260 | 3,076 |
Excess tax benefit of option exercises | 426 | 1,171 |
Proceeds from the issuance of stock under employee stock purchase plan | 136 | 0 |
Tax withholdings on issuance of stock awards | (1,292) | (2,093) |
Net cash (used in) provided by financing activities | (470) | 2,154 |
Net increase (decrease) in cash and cash equivalents | 35,670 | (23,747) |
Cash and cash equivalents at beginning of period | 207,003 | 212,526 |
Cash and cash equivalents at end of period | 242,673 | 188,779 |
Supplemental disclosure of non-cash transactions: | ||
Purchase of equipment included in accounts payable and accrued liabilities | $ 70 | $ 910 |
Nature of Business
Nature of Business | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business Bridgepoint Education, Inc. (together with its subsidiaries, the “Company”), incorporated in 1999, is a provider of postsecondary education services. Its wholly-owned subsidiaries, Ashford University ® and University of the Rockies SM , are regionally accredited academic institutions that offer associate's, bachelor's, master's and doctoral programs online, as well as at their traditional campuses located in Iowa and Colorado, respectively. Announced in the third quarter of 2015, Ashford University's campus in Iowa will be closing after the 2015-2016 academic year, following the implementation of the teach-out plan. For further information, refer to Note 3, “Restructuring and Impairment Charges.” |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The condensed consolidated financial statements include the accounts of Bridgepoint Education, Inc. and its wholly-owned subsidiaries. Intercompany transactions have been eliminated in consolidation. Unaudited Interim Financial Information The condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 , which was filed with the Securities and Exchange Commission (the “SEC”) on March 10, 2015 . In the opinion of management, these financial statements include all adjustments, consisting of normal recurring adjustments, considered necessary to present a fair statement of the Company's condensed consolidated financial position, results of operations and cash flows as of and for the periods presented. Operating results for any interim period are not necessarily indicative of the results that may be expected for the full year. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP for complete annual financial statements. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements. Actual results could differ from those estimates. Reclassifications Certain reclassifications have been made to the prior years’ financial statements to conform to the current year presentation. These reclassifications had no effect on previously reported results of operations or retained earnings. Restricted Cash The Company's restricted cash is primarily held in money market accounts, and is excluded from cash and cash equivalents on the Company's consolidated balance sheets and statements of cash flows. The majority of restricted cash represents funds held for students from Title IV financial aid program funds that result in credit balances on a student’s account. Changes in this restricted cash are included in the Company's condensed consolidated statements of cash flows as cash flows from operating activities. To a lesser extent, restricted cash also represents amounts held as collateral for letters of credit. Changes in this restricted cash are included in the Company's condensed consolidated statements of cash flows as cash flows from investing activities. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605, Revenue Recognition . This literature is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The accounting guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This standard can be adopted using one of two retrospective application methods. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606), Deferral of the Effective Date, which defer the effective date of ASU 2014-09 by one year, to fiscal years beginning after December 15, 2017. The Company continues to evaluate the impacts, if any, the adoption of ASU 2014-09 and ASU 2015-14 will have on the Company's financial position or results of operations. In January 2015, the FASB issued ASU 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20). This update simplifies the income statement presentation requirements and eliminates from GAAP the concept of extraordinary items, and essentially deletes the requirements in Subtopic 225-20. However, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amendments may be applied prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company adopted ASU 2015-01 effective April 1, 2015, and such adoption does not have a material effect on the Company's consolidated financial statements. |
Restructuring and Impairment Ch
Restructuring and Impairment Charges | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Impairment Charges [Abstract] | |
Restructuring and Impairment Charges | Restructuring and Impairment Charges During the three and nine months ended September 30, 2015 , the Company initiated various restructuring plans to better align its resources with its business strategy. The related restructuring charges are primarily comprised of i) charges related to the write off of certain fixed assets and assets abandoned, ii) student transfer agreement costs, iii) severance costs related to headcount reductions made in connection with restructuring plans and iv) estimated lease losses related to facilities vacated or consolidated under restructuring plans. These charges were recorded in the restructuring and impairment charges line item on the Company's condensed consolidated statements of income for the three and nine months ended September 30, 2015 . On July 7, 2015, the Company committed to the implementation of a plan to close Ashford University's campus in Clinton, Iowa (the “Clinton Campus”) following the 2015-2016 academic year, at the end of May 2016. The Ashford University Board of Trustees made the decision to close the Clinton Campus following an ongoing review of the University's strategic direction and as a result of the University's inability to meet campus enrollment requirements despite its best efforts to continue maintaining and operating the Clinton Campus. The closure of the Clinton Campus is intended to realign the Company's operations to focus on its core mission of leveraging technology to create innovative solutions that advance learning. As this closure of the Clinton Campus does not meet the criteria for discontinued operations under ASC 360, Property, Plant and Equipment , the results of operations are reported within continuing operations for all periods presented. Primarily as a result of this planned campus closure, during the three and nine months ended September 30, 2015 , the Company recognized asset impairment charges of $37.3 million and $38.6 million , respectively, relating to the write off of certain fixed assets. With the planned closure of the Clinton Campus, ground-based students will be provided resources for future education based upon their agreement. The Company recorded restructuring charges relating to future cash expenditures for student transfer agreement costs of approximately $4.3 million during each of the three and nine months ended September 30, 2015 . This estimate is based upon several assumptions that are subject to change, including student decisions regarding transfer. The Company also implemented various reductions in force during fiscal 2015 to help better align personnel resources with the decline in enrollment. During the three and nine months ended September 30, 2015 , the Company recognized $2.1 million and $2.9 million , respectively, as restructuring charges relating to severance costs for wages and benefits resulting from the reduction in force. The Company estimates that it will record an additional $2.5 million in future restructuring and asset impairment charges related to severance and retention charges for the closure of the Clinton Campus. As part of its continued efforts to streamline operations, the Company vacated or consolidated properties in Denver and San Diego, and reassessed its obligations on non-cancelable leases. During the three and nine months ended September 30, 2015 , the Company recorded $1.2 million and $13.5 million , respectively, as restructuring charges relating to lease exit and other costs. These amounts were recorded in the restructuring and impairment charges line item on the Company's condensed consolidated statements of income for the three and nine months ended September 30, 2015 . A summary of the charges are below (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Asset impairment $ 37,300 $ — $ 38,612 $ — Student transfer agreement costs 4,275 — 4,275 — Severance costs 2,120 — 2,895 — Lease exit and other costs 1,209 — 13,540 — Total restructuring and impairment charges $ 44,904 $ — $ 59,322 $ — |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable, net, consist of the following (in thousands): As of As of Accounts receivable $ 57,328 $ 48,841 Less allowance for doubtful accounts (26,535 ) (27,567 ) Accounts receivable, net $ 30,793 $ 21,274 As of September 30, 2015 and December 31, 2014 , there was an immaterial amount included within net accounts receivable with a payment due date of greater than one year. The following table presents the changes in the allowance for doubtful accounts for the periods indicated (in thousands): Beginning Balance Charged to Expense Deductions(1) Ending Balance Allowance for doubtful accounts: For the nine months ended September 30, 2015 $ (27,567 ) $ 24,249 $ (25,281 ) $ (26,535 ) For the nine months ended September 30, 2014 $ (26,901 ) 21,957 (21,177 ) $ (27,681 ) (1) Deductions represent accounts written off, net of recoveries. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Investments | Investments The following tables summarize the fair value information of short-term and long-term investments as of September 30, 2015 and December 31, 2014 , respectively (in thousands): As of September 30, 2015 Level 1 Level 2 Level 3 Total Mutual funds $ 1,238 $ — $ — $ 1,238 Corporate notes and bonds — 47,026 — 47,026 U.S. government and agency securities — 20,002 — 20,002 Certificates of deposit — 25,000 — 25,000 Total $ 1,238 $ 92,028 $ — $ 93,266 As of December 31, 2014 Level 1 Level 2 Level 3 Total Mutual funds $ 1,071 $ — $ — $ 1,071 Corporate notes and bonds — 62,550 — 62,550 U.S. government and agency securities — 34,987 — 34,987 Certificates of deposit — 25,000 — 25,000 Total $ 1,071 $ 122,537 $ — $ 123,608 The tables above include amounts related to investments classified as other investments, such as certificates of deposit, which are carried at amortized cost. The amortized cost of such investments approximated fair value at each balance sheet date. The assumptions used in these fair value estimates are considered as other observable inputs and are therefore categorized as Level 2 measurements under the accounting guidance. The Company's Level 2 investments are valued using readily available pricing sources that utilize market observable inputs, including the current interest rate for similar types of instruments. The Company records the changes in unrealized gains and losses on its investments arising during the period in other comprehensive income. For the three months ended September 30, 2015 and 2014 , the Company recorded net unrealized losses of $12,000 and $123,000 , respectively, in other comprehensive income, which were net of tax expense of $5,000 and tax benefit of $26,000 , respectively. For the nine months ended September 30, 2015 and 2014 , the Company recorded net unrealized gains of $123,000 and net unrealized losses $195,000 , respectively, in other comprehensive income, which were net of tax expense of $66,000 and tax benefit of $73,000 , respectively. During the nine months ended September 30, 2015 , the Company reclassified $61,000 out of accumulated other comprehensive income, which was realized as a net loss on marketable securities in the consolidated statement of income for the period within other income, net. There was no such reclassification in the nine months ended September 30, 2014 . |
Student Loan Receivables
Student Loan Receivables | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Student Loans Receivable | Student Loans Receivable Student loans receivable, net, consist of the following (in thousands): Short-term: As of As of Student loans receivable (non-tuition related) $ 455 $ 509 Student loans receivable (tuition related) 582 626 Current student loans receivable 1,037 1,135 Less allowance for doubtful accounts (109 ) (132 ) Student loans receivable, net $ 928 $ 1,003 Long-term: As of As of Student loans receivable (non-tuition related) $ 3,402 $ 4,805 Student loans receivable (tuition related) 5,611 6,068 Non-current student loans receivable 9,013 10,873 Less allowance for doubtful accounts (1,406 ) (1,363 ) Student loans receivable, net $ 7,607 $ 9,510 Student loans receivable is presented net of any related discount, and the balances approximated fair value at each balance sheet date. The Company estimates the fair value of the student loans receivable by discounting the future cash flows using an interest rate of 4.5% , which approximates the interest rates used in similar arrangements. The assumptions used in this estimate are considered unobservable inputs and are therefore categorized as Level 3 measurements under the accounting guidance. Revenue recognized related to student loans was immaterial during each of the three and nine months ended September 30, 2015 and 2014 , respectively. The following table presents the changes in the allowance for doubtful accounts for the periods indicated (in thousands): Beginning Balance Charged to Expense Deductions(1) Ending Balance Allowance for student loans receivable (tuition related): For the nine months ended September 30, 2015 $ (1,495 ) $ 20 $ — $ (1,515 ) For the nine months ended September 30, 2014 $ (2,144 ) 4 981 $ (1,167 ) (1) Deductions represent accounts written off, net of recoveries. For the non-tuition related student loans receivable, the Company monitors the credit quality of the borrower using credit scores, aging history of the loan and delinquency trending. The loan reserve methodology is reviewed on a quarterly basis. Delinquency is the main factor in determining if a loan is impaired. If a loan were determined to be impaired, interest would no longer accrue. For the three and nine months ended September 30, 2015 , $0.3 million and $1.2 million , respectively, of student loans were impaired. As of September 30, 2015 , $5.6 million of student loans had been placed on non-accrual status. As of September 30, 2015 , the delinquency status of gross student loans receivable was as follows (in thousands): 120 days and less $ 13,595 From 121 - 270 days 963 Greater than 270 days 3,616 Total gross student loans receivable 18,174 Less: Amounts reserved or impaired (7,129 ) Less: Discount on student loans receivable (2,510 ) Total student loans receivable, net $ 8,535 |
Other Significant Balance Sheet
Other Significant Balance Sheet Accounts | 9 Months Ended |
Sep. 30, 2015 | |
Significant Balance Sheet Accounts [Abstract] | |
Other Significant Balance Sheet Accounts | Other Significant Balance Sheet Accounts Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): As of As of Prepaid expenses $ 7,884 $ 8,500 Prepaid licenses 2,857 5,598 Prepaid income taxes 2,127 2,945 Prepaid insurance 1,939 1,508 Interest receivable 378 424 Insurance recoverable 17,646 3,040 Other current assets 746 803 Total prepaid expenses and other current assets $ 33,577 $ 22,818 Property and Equipment, Net Property and equipment, net, consist of the following (in thousands): As of As of Land $ — $ 7,091 Buildings — 29,540 Furniture and office equipment 63,322 81,030 Software 12,533 12,454 Leasehold improvements 11,155 21,096 Vehicles 22 147 Campus assets held and used 6,075 — Total property and equipment 93,107 151,358 Less accumulated depreciation and amortization (62,547 ) (73,139 ) Total property and equipment, net $ 30,560 $ 78,219 On July 7, 2015, the Company committed to the implementation of a plan to close the Clinton Campus following the 2015-2016 academic year, at the end of May 2016. As a result, the Company recognized an impairment charge relating to the write off of certain fixed assets. For further details, see Note 3 “Restructuring and Impairment Charges.” The remaining assets of the Clinton Campus are valued at $6.1 million as of September 30, 2015, and are classified as held and used. Goodwill and Intangibles, Net Goodwill and intangibles, net, consist of the following (in thousands): September 30, 2015 Definite-lived intangible assets: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Capitalized curriculum costs $ 19,931 $ (12,914 ) $ 7,017 Purchased intangible assets 15,850 (3,213 ) 12,637 Total definite-lived intangible assets $ 35,781 $ (16,127 ) $ 19,654 Goodwill and indefinite-lived intangibles 2,567 Total goodwill and intangibles, net $ 22,221 December 31, 2014 Definite-lived intangible assets: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Capitalized curriculum costs $ 18,174 $ (9,526 ) $ 8,648 Purchased intangible assets 15,850 (2,290 ) 13,560 Total definite-lived intangible assets $ 34,024 $ (11,816 ) $ 22,208 Goodwill and indefinite-lived intangibles 2,567 Total goodwill and intangibles, net $ 24,775 For the three months ended September 30, 2015 and September 30, 2014 , amortization expense was $1.4 million and $1.5 million , respectively. For the nine months ended September 30, 2015 and September 30, 2014 , amortization expense was $4.3 million and $4.2 million , respectively. The following table summarizes the estimated remaining amortization expense as of each fiscal year ended below (in thousands): Year Ended December 31, 2015 $ 1,347 2016 4,571 2017 3,052 2018 1,973 2019 1,311 Thereafter 7,400 Total future amortization expense $ 19,654 Accrued Liabilities Accrued liabilities consist of the following (in thousands): As of As of Accrued salaries and wages $ 7,620 $ 8,250 Accrued bonus 2,595 2,720 Accrued vacation 9,798 9,771 Accrued litigation and fees 720 542 Accrued expenses 16,977 16,623 Student transfer agreement costs 2,584 — Rent liability 12,606 8,528 Accrued insurance liability 19,464 4,520 Accrued income taxes payable — 449 Total accrued liabilities $ 72,364 $ 51,403 Deferred Revenue and Student Deposits Deferred revenue and student deposits consist of the following (in thousands): As of As of Deferred revenue $ 35,628 $ 26,445 Student deposits 53,986 81,603 Total deferred revenue and student deposits $ 89,614 $ 108,048 Other Long-Term Liabilities Other long-term liabilities consist of the following (in thousands): As of As of Uncertain tax positions $ 7,932 $ 7,586 Legal settlements 332 1,000 Student transfer agreement costs 1,692 — Other long-term liabilities 1,946 1,066 Total other long-term liabilities $ 11,902 $ 9,652 |
Credit Facilities
Credit Facilities | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Credit Facilities | Credit Facilities The Company previously had a $50 million revolving line of credit (the “Facility”) pursuant to an Amended and Restated Revolving Credit Agreement (the “Revolving Credit Agreement”) with the lenders signatory thereto and Comerica Bank (“Comerica”). The Facility had an original term of three years and expired on April 13, 2015. The Revolving Credit Agreement amended, restated and superseded any prior loan documents. Up through the date of expiration of the Facility, the Company had no borrowings outstanding under the Facility. Under the Revolving Credit Agreement and the documents executed in connection therewith (collectively, the “Facility Loan Documents”), the lenders also agreed to make loans to the Company and issue letters of credit on the Company's behalf, subject to specific terms and conditions. The Company had previously used the availability under the Facility to issue letters of credit, but subsequent to the expiration of the Facility, the Company collateralized the letters of credit with cash in the aggregate amount of $6.4 million , which is included as restricted cash as of September 30, 2015 . Interest and fees accruing under the Facility were payable quarterly in arrears and principal was payable at maturity. For any advance under the Facility, interest would accrue at either the “Base Rate” or the “Eurodollar-based Rate,” at the Company's option. The Facility Loan Documents contained other customary affirmative, negative and financial maintenance covenants, representations and warranties, events of default, and remedies upon an event of default, including the acceleration of debt and the right to foreclose on the collateral securing the Facility. Up through the date of expiration of the Facility, the Company had no outstanding financial covenants in the Facility Loan Documents. Surety Bond Facility As part of its normal business operations, the Company is required to provide surety bonds in certain states in which the Company does business. In May 2009, the Company entered into a surety bond facility with an insurance company to provide such bonds when required. As of September 30, 2015 , the Company's total available surety bond facility was $12.0 million and the surety had issued bonds totaling $3.4 million on the Company's behalf under such facility. |
Lease Obligations
Lease Obligations | 9 Months Ended |
Sep. 30, 2015 | |
Lease Obligations [Abstract] | |
Lease Obligations | Lease Obligations Operating leases The Company leases certain office facilities and office equipment under non-cancelable lease arrangements that expire at various dates through 2023. The office leases contain certain renewal options. Rent expense under non-cancelable operating lease arrangements is accounted for on a straight-line basis and totaled $33.0 million and $26.6 million for the nine-month periods ending September 30, 2015 and 2014, respectively. In August 2015, the Company signed an agreement to terminate a portion of its office facilities lease in Denver, which was originally set to expire in March 2023. See further information in Note 3, “Restructuring and Impairment Charges.” The following table summarizes the future minimum rental payments under non-cancelable operating lease arrangements in effect at September 30, 2015 (in thousands): Year Ended December 31, 2015 $ 8,813 2016 36,019 2017 35,914 2018 31,285 2019 20,876 Thereafter 16,694 Total minimum payments $ 149,601 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings per share is calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is calculated by dividing net income available to common stockholders by the sum of (i) the weighted average number of common shares outstanding for the period and (ii) potentially dilutive securities outstanding during the period, if the effect is dilutive. Potentially dilutive securities for the periods presented may include incremental shares of common stock issuable upon the exercise of stock options and upon the settlement of restricted stock units (“RSUs”) and performance stock units (“PSUs”). The following table sets forth the computation of basic and diluted earnings (loss) per share for the periods indicated (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Net income (loss) $ (62,746 ) $ 6,291 $ (63,767 ) $ 14,916 Denominator: Weighted average number of common shares outstanding 45,754 45,301 45,620 45,145 Effect of dilutive options and stock units — 1,173 — 1,350 Diluted weighted average number of common shares outstanding 45,754 46,474 45,620 46,495 Earnings (loss) per share: Basic earnings (loss) per share $ (1.37 ) $ 0.14 $ (1.40 ) $ 0.33 Diluted earnings (loss) per share $ (1.37 ) $ 0.14 $ (1.40 ) $ 0.32 For the periods indicated below, the computation of diluted common shares outstanding excludes stock options, RSUs and PSUs, as applicable, because their effect was anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Options 5,147 2,765 5,116 2,661 Stock units 691 — 673 — |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company recorded $1.7 million and $2.8 million of stock-based compensation expense for the three months ended September 30, 2015 and 2014 , respectively, and $7.3 million and $7.9 million of stock-based compensation expense for the nine months ended September 30, 2015 and 2014 , respectively. The related income tax benefit was $0.6 million and $1.1 million for the three months ended September 30, 2015 and 2014 , respectively, and $2.7 million and $3.0 million for the nine months ended September 30, 2015 and 2014 , respectively. The Company granted 28,060 RSUs during the three months ended September 30, 2015 at a grant date fair value of $8.08 . During the three months ended September 30, 2015 , there were 10,320 RSUs which vested. The Company did not grant any PSUs, and no PSUs vested during the three months ended September 30, 2015 . The Company did not grant any options to purchase shares of common stock during the three months ended September 30, 2015 . During the three months ended September 30, 2015 , options to purchase 57,756 shares of common stock were exercised. As of September 30, 2015 , there was unrecognized compensation cost of $17.3 million related to the combined unvested stock options, RSUs and PSUs. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Each reporting period, the Company estimates the likelihood that it will be able to recover its deferred tax assets, which represent timing differences in the recognition of certain tax deductions for accounting and tax purposes. The realization of deferred tax assets is dependent, in part, upon future taxable income. Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, the Company considers all available evidence, including past operating results, estimates of future taxable income given current business conditions affecting the Company, and the feasibility of ongoing tax planning strategies. Through the end of the second quarter of 2015, the Company forecasted three years of cumulative income through 2015 and did not expect any significant changes in 2016 that would cause the three year cumulative income to move to a loss. Based on the history of cumulative income and no significant changes in 2016, the Company believed that it would have sufficient taxable income in future years to realize its net deferred tax assets. In the third quarter of 2015, there were several pieces of negative evidence that have contributed to the Company’s conclusion that a valuation allowance is appropriate against all deferred tax assets that rely upon future taxable income for their realization. This new negative evidence includes i) a third quarter significant pre-tax loss, ii) projections that show the company will be in a 3-year cumulative loss position by 2016, and iii) continued difficult business and regulatory environment for for-profit education institutions. After weighing all positive and negative evidence, the Company has concluded it will not rely upon future taxable income to support realizability of deferred tax assets and, therefore, has recorded a valuation allowance against the assets in the third quarter. The Company’s estimated annual effective income tax rate that was applied to normal, recurring operations for the nine months ended September 30, 2015 was (10.3)% and included $21.2 million of valuation allowance recorded through the effective income tax rate. The Company’s actual effective income tax rate was (83.8)% for the nine months ended September 30, 2015 and included $24.9 million of valuation allowance recorded as a discrete item in the current quarter. In addition to the valuation allowance, the Company’s estimated annual effective income tax rate differed from the Company’s estimated annual effective income tax rate due to increases in reserves for unrecognized tax benefits and related accrued interest in the current year. The following is a summary of the components of the valuation allowance recorded in the current quarter (in thousands): Net deferred tax assets at December 31, 2014 $ 41.5 2014 return to provision adjustments (0.1 ) Gross up for indefinite-lived intangible deferred tax liability 0.7 Net deferred tax assets at December 31, 2014, as adjusted $ 42.1 Temporary differences at December 31, 2014 that reverse in 2015 and reduce taxes paid (17.2 ) Valuation allowance recorded in third quarter of 2015 for future amortization expense $ 24.9 Temporary differences originating in 2015 expense $ 38.1 Anticipated reversals of temporary differences that can carryback for tax refunds (16.9 ) Valuation allowance recorded in the third quarter of 2015 through effective tax rate $ 21.2 Total valuation allowance recorded in the third quarter of 2015 $ 46.1 The Company intends to maintain a valuation allowance against its deferred tax assets until sufficient positive evidence exists to support its reversal. At September 30, 2015 and December 31, 2014 , the Company had $20.6 million and $20.9 million , respectively, of gross unrecognized tax benefits, of which $13.4 million and $13.6 million , respectively, would impact the effective income tax rate if recognized. The tax years 2002 through 2014 are open to examination by major taxing jurisdictions to which the Company is subject. The California Franchise Tax Board is auditing the Company’s 2008 through 2012 California income tax returns. The Company is also subject to various other state audits. With respect to all audits, the Company does not expect any significant adjustments to amounts already reserved. In connection with the California Franchise Tax Board audit, in 2014 the Company filed a refund claim for years 2008 through 2010 for approximately $12.6 million . However, the Company will not recognize any income statement benefit in its financial statements related to the refund claim until the final resolution of the audit. It is reasonably possible that the total amount of the unrecognized tax benefit will change during the next 12 months. However, the Company does not expect any potential change to have a material effect on the Company's results of operations or financial position in the next year. The Company's continuing practice is to recognize interest and penalties related to uncertain tax positions in income tax expense. Accrued interest and penalties related to uncertain tax positions as of September 30, 2015 and December 31, 2014 was $2.1 million and $1.9 million , respectively. |
Regulatory
Regulatory | 9 Months Ended |
Sep. 30, 2015 | |
Regulatory [Abstract] | |
Regulatory | Regulatory The Company is subject to extensive regulation by federal and state governmental agencies and accrediting bodies. In particular, the Higher Education Act of 1965, as amended (the “Higher Education Act”), and the regulations promulgated thereunder by the U.S. Department of Education (the “Department”) subject the Company to significant regulatory scrutiny on the basis of numerous standards that institutions of higher education must satisfy in order to participate in the various federal student financial assistance programs under Title IV of the Higher Education Act. Ashford University is regionally accredited by WASC Senior College and University Commission (“WSCUC”), formerly referred to as WASC. University of the Rockies is regionally accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools. Department of Education Program Review of Ashford University In July 2014, the Company and Ashford University received notification from the Department that it intended to conduct an ordinary course program review of Ashford University’s administration of federal student financial aid (Title IV) programs in which the university participates. The review, which commenced on August 25, 2014 and is currently ongoing, covers federal financial aid years 2012-2013 and 2013-2014, as well as compliance with the Jeanne Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act (the “Clery Act”), the Drug-Free Schools and Communities Act and related regulations. WSCUC Grant of Initial Accreditation of Ashford University In July 2013, WSCUC granted Initial Accreditation to Ashford University for five years, until July 15, 2018. In December 2013, Ashford University effected its transition to WSCUC accreditation and designated its San Diego, California facilities as its main campus and its Clinton, Iowa campus as an additional location. As part of a continuing monitoring process, Ashford University hosted a visiting team from WSCUC in a special visit in April 2015. In July 2015, Ashford University received an Action Letter from WSCUC outlining the findings arising out of its team's special visit. The Action Letter stated that the WSCUC visiting team found substantial evidence that Ashford University continues to make sustained progress in all six areas recommended by WSCUC in 2013. WSCUC also performs Mid-Cycle Reviews of its accredited institutions near the midpoint of their periods of accreditation, as required by the Department. The purpose of the Mid-Cycle Review is to identify problems with an institution’s or program’s continued compliance with agency standards while taking into account institutional or program strengths and stability. The Mid-Cycle Review report will focus particularly on student achievement, including indicators of educational effectiveness, retention and graduation data. Licensure by California BPPE To be eligible to participate in Title IV programs, an institution must be legally authorized to offer its educational programs by the states in which it is physically located. Effective July 2011, the Department established new requirements to determine if an institution is considered to be legally authorized by a state. In connection with its transition to WSCUC accreditation, Ashford University designated its San Diego, California facilities as its main campus for Title IV purposes and submitted an Application for Approval to Operate an Accredited Institution to the State of California, Department of Consumer Affairs, Bureau for Private Postsecondary Education (“BPPE”) on September 10, 2013. In April 2014, the application was granted, and the university was approved by BPPE to operate in California until July 15, 2018. As a result, Ashford University is no longer exempt from certain laws and regulations applicable to private, post-secondary educational institutions. These laws and regulations entail certain California reporting requirements, including but not limited to, graduation, employment and licensing data, certain changes of ownership and control, faculty and programs, and student refund policies, as well as the triggering of other state and federal student employment data reporting and disclosure requirements. Negotiated Rulemaking and Other Executive Action The Department held Program Integrity and Improvement negotiated rulemaking sessions in February through May 2014 that focused on topics including, but not limited to, cash management of Title IV program funds, state authorization for programs offering distance or correspondence education, credit and clock hour conversions, the retaking of coursework, and the definition of “adverse credit” for PLUS loan borrowers. No consensus resulted from the rulemaking sessions. As a result, the Department had discretion to propose Program Integrity regulations in these areas. In August 2014, the Department published a Notice of Proposed Rulemaking proposing new regulations regarding the federal Direct PLUS loan program. The final regulations, effective July 1, 2015, update the standard for determining if a potential parent or student borrower has an adverse credit history for purposes of eligibility for a PLUS loan. Specifically, the regulations revise the definition of “adverse credit history” and require that parents and students who have an adverse credit history, but who are approved for a PLUS loan on the basis of extenuating circumstances or who obtain an endorser for the PLUS loan, must receive loan counseling before receiving the loan. Three negotiated rulemaking sessions between January and March of 2014 resulted in draft regulations to enact changes to the Clery Act required by the enactment of the Violence Against Women Act (“VAWA”). The Department published final regulations in the Federal Register on October 20, 2014, effective July 1, 2015. Among other things, VAWA requires institutions to compile statistics for additional incidents to those currently required by the Clery Act and include certain policies, procedures and programs pertaining to these incidents in annual security reports. On September 3, 2014, the Department published a notice in the Federal Register to announce its intention to establish a negotiated rulemaking committee to prepare proposed regulations for the William D. Ford “Federal Direct Loan Program” authorized by the Higher Education Act. Two public hearings were held in October and November 2014. On December 19, 2014, the Department published a notice to announce its intention to establish the committee to (i) prepare proposed regulations to establish a new Pay as You Earn repayment plan for those not covered by the existing Federal Direct Loan Program and (ii) establish procedures for Federal Family Education Loan Program (“FFEL Program”) loan holders to use to identify U.S. military services members who may be eligible for a lower interest rate on their FFEL Program loans. The committee met in February, March and April of 2015. On July 9, 2015, the Department published a Notice of Proposed Rulemaking proposing to amend the regulations governing the Federal Direct Loan Program to create a new income-contingent repayment plan in accordance with President Obama's initiative to allow more Federal Direct Loan Program borrowers to cap their loan payments at 10% of their monthly income. On October 30, 2014, the Obama administration announced that the Department will lead an effort to formalize an interagency task force to conduct oversight of for-profit institutions of higher education, especially regarding alleged unfair, deceptive, and abusive policies and practices. The task force will include the Departments of Justice, Treasury and Veterans Affairs, as well as the Consumer Financial Protection Bureau, Federal Trade Commission, Securities and Exchange Commission, and state Attorneys General. The stated purpose of the task force is to “coordinate...activities and promote information sharing to protect students from unfair, deceptive, and abusive policies and practices.” On March 24, 2015, the Department's Office of Inspector General (the “OIG”) issued a final audit report titled “Federal Student Aid's Oversight of Schools' Compliance with the Incentive Compensation Ban.” In its report, the OIG concluded that the Department's Office of Federal Student Aid (the “FSA”) failed to (i) revise its enforcement procedures and guidance after the Department eliminated the incentive compensation safe harbors in 2010, (ii) develop procedures and guidance on appropriate enforcement action and (iii) properly resolve incentive compensation ban findings. In response to the report, the OIG and the FSA agreed on corrective action that may increase scrutiny and enforcement action related to payment of incentive compensation. On May 18, 2015, the Department published a Notice of Proposed Rulemaking to amend cash management regulations related to Title IV program funds. The proposed regulations address student access to Title IV program funds, financial account fees and the opening of financial accounts. The proposed regulations also clarify how the Department treats previously passed coursework for Title IV eligibility purposes, and streamline the requirements for converting clock hours to credit hours. On June 8, 2015, the Department held a press conference and released a document entitled “Fact Sheet: Protecting Students from Abusive Career Colleges” in which the Department announced processes that will be established to assist students who may have been the victims of fraud in gaining relief under the “defense to repayment” provisions of the federal Direct Loan program regulations. Rarely used in the past, the defense to repayment provisions allow a student to assert as a defense against repayment of federal Direct Loans any commission of fraud or other violation of applicable state law by the school related to such loans or the educational services paid for. The processes outlined by the Department on June 8 include (i) extending debt relief eligibility to groups of students where possible, (ii) providing loan forbearance and pausing payments while claims are being resolved, (iii) appointing a Special Master dedicated to borrower defense issues for students who believe they have a defense to repayment, (iv) establishing a streamlined process and (v) building a better system for debt relief for the future. The Department noted that building a better system for debt relief would involve developing new regulations to clarify and streamline loan forgiveness under the defense to repayment provisions, while maintaining or enhancing current consumer protection standards and strengthening provisions that hold schools accountable for actions that result in loan discharges. On August 20, 2015, the Department announced its intention to establish a negotiated rulemaking committee to prepare proposed regulations for the Federal Student Aid programs authorized under Title IV of the Higher Education Act. The committee will include representatives of organizations or groups with interests that are significantly affected by the subject matter of the proposed regulations. The Department also announced public hearings at which interested parties may comment on the topics suggested by the Department and may suggest additional topics that should be considered for action by the negotiating committee. In addition, the Department announced that it will accept written comments on the topics suggested by the Department and suggestions for additional issues that should be considered for action by the negotiating committee. As part of this process, the Department intends to convene a committee to develop proposed regulations for determining which acts or omissions of an institution of higher education a borrower may assert as a defense to repayment of a loan made under the Federal Direct Loan Program (“borrower defenses”) and the consequences of such borrower defenses for borrowers, institutions, and the Secretary. Specifically, the Department intends to address: (1) the procedures to be used for a borrower to establish a defense to repayment; (2) the criteria that the Department will use to identify acts or omissions of an institution that constitute defenses to repayment of Federal Direct Loans to the Secretary; (3) the standards and procedures that the Department will use to determine the liability of the institution participating in the Federal Direct Loan Program for amounts based on borrower defenses; and (4) the effect of borrower defenses on institutional capability assessments. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation From time to time, the Company is a party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. When the Company becomes aware of a claim or potential claim, it assesses the likelihood of any loss or exposure. In accordance with authoritative guidance, the Company records loss contingencies in its financial statements only for matters in which losses are probable and can be reasonably estimated. Where a range of loss can be reasonably estimated with no best estimate in the range, the Company records the minimum estimated liability. If the loss is not probable or the amount of the loss cannot be reasonably estimated, the Company discloses the nature of the specific claim if the likelihood of a potential loss is reasonably possible and the amount involved is material. The Company continuously assesses the potential liability related to the Company’s pending litigation and revises its estimates when additional information becomes available. Below is a list of material legal proceedings to which the Company or its subsidiaries is a party. Compliance Audit by the Department's Office of the Inspector General In January 2011, Ashford University received a final audit report from the OIG regarding the compliance audit commenced in May 2008 and covering the period July 1, 2006 through June 30, 2007. The audit covered Ashford University's administration of Title IV program funds, including compliance with regulations governing institutional and student eligibility, awards and disbursements of Title IV program funds, verification of awards and returns of unearned funds during that period, and its compensation of financial aid and recruiting personnel during the period May 10, 2005 through June 30, 2009. The final audit report contained audit findings, in each case for the period July 1, 2006 through June 30, 2007, which are applicable to award year 2006-2007. Each finding was accompanied by one or more recommendations to the FSA. Ashford University provided the FSA a detailed response to the OIG’s final audit report in February 2011. In June 2011, in connection with two of the six findings, the FSA requested that Ashford University conduct a file review of the return to Title IV fund calculations for all Title IV recipients who withdrew from distance education programs during the 2006-2007 award year. The institution cooperated with the request and supplied the information within the time frame required. If the FSA were to determine to assess a monetary liability or commence other administrative action, Ashford University would have an opportunity to contest the assessment or proposed action through administrative proceedings, with the right to seek review of any final administrative action in the federal courts. The outcome of this audit is uncertain at this point because of the many questions of fact and law that may arise. At present, the Company cannot reasonably estimate a range of loss for this action based on the information available to the Company. Accordingly, the Company has not accrued any liability associated with this matter. Iowa Attorney General Civil Investigation of Ashford University In February 2011, Ashford University received from the Attorney General of the State of Iowa (the “Iowa Attorney General”) a Civil Investigative Demand and Notice of Intent to Proceed (the “CID”) relating to the Iowa Attorney General’s investigation of whether certain of the university's business practices comply with Iowa consumer laws. Pursuant to the CID, the Iowa Attorney General requested documents and detailed information for the time period January 1, 2008 to present. On numerous occasions, representatives from the Company and Ashford University met with the Iowa Attorney General to discuss the status of the investigation and the Iowa Attorney General’s allegations against the Company that had been communicated to the Company in June 2013. As a result of these meetings, on May 15, 2014, the Iowa Attorney General, the Company and Ashford University entered into an Assurance of Voluntary Compliance (the “AVC”) in full resolution of the CID and the Iowa Attorney General’s allegations. The AVC, in which the Company and Ashford University do not admit any liability, contains several components including injunctive relief, nonmonetary remedies and a payment to the Iowa Attorney General to be used for restitution to Iowa consumers, costs and fees. The AVC also provides for the appointment of a settlement administrator for a period of three years to review the Company’s and Ashford University’s compliance with the terms of the AVC. The Company had originally accrued $9.0 million back in 2013 related to this matter, which represented its best estimate of the total restitution, cost of non-monetary remedies and future legal costs. The remaining accrual of $1.1 million as of September 30, 2015 is split between both current and long-term liabilities. New York Attorney General Investigation of Bridgepoint Education, Inc. In May 2011, the Company received from the Attorney General of the State of New York (the “NY Attorney General”) a subpoena relating to the NY Attorney General's investigation of whether the Company and its academic institutions have complied with certain New York state consumer protection, securities and finance laws. Pursuant to the subpoena, the NY Attorney General has requested from the Company and its academic institutions documents and detailed information for the time period March 17, 2005 to present. The Company is cooperating with the investigation and cannot predict the eventual scope, duration or outcome of the investigation at this time. North Carolina Attorney General Investigation of Ashford University In September 2011, Ashford University received from the Attorney General of the State of North Carolina (the “NC Attorney General”) an Investigative Demand relating to the NC Attorney General's investigation of whether the university's business practices complied with North Carolina consumer protection laws. Pursuant to the Investigative Demand, the NC Attorney General has requested from Ashford University documents and detailed information for the time period January 1, 2008 to present. Ashford University is cooperating with the investigation and cannot predict the eventual scope, duration or outcome of the investigation at this time. California Attorney General Investigation of For-Profit Educational Institutions In January 2013, the Company received from the Attorney General of the State of California (the “CA Attorney General”) an Investigative Subpoena relating to the CA Attorney General’s investigation of for-profit educational institutions. Pursuant to the Investigative Subpoena, the CA Attorney General has requested documents and detailed information for the time period March 1, 2009 to present. On July 24, 2013, the CA Attorney General filed a petition to enforce certain categories of the Investigative Subpoena related to recorded calls and electronic marketing data. On September 25, 2013, the Company reached an agreement with the CA Attorney General to produce certain categories of the documents requested in the petition and stipulated to continue the hearing on the petition to enforce from October 3, 2013 to January 9, 2014. On January 13, 2014 and June 19, 2014, the Company received additional Investigative Subpoenas from the CA Attorney General each requesting additional documents and information for the time period March 1, 2009 through the current date. Representatives from the Company have met with the CA Attorney General’s office on several occasions to discuss the status of the investigation, additional information requests, and specific concerns related to possible unfair business practices in connection with the Company’s recruitment of students and debt collection practices. The Company cannot predict the eventual scope, duration or outcome of the investigation at this time. As a result, the Company cannot reasonably estimate a range of loss for this action and accordingly has not accrued any liability associated with this action. Massachusetts Attorney General Investigation of Bridgepoint Education, Inc. and Ashford University On July 21, 2014, the Company and Ashford University received from the Attorney General of the State of Massachusetts (the “MA Attorney General”) a Civil Investigative Demand relating to the MA Attorney General's investigation of for-profit educational institutions and whether the university's business practices complied with Massachusetts consumer protection laws. Pursuant to the Civil Investigative Demand, the MA Attorney General has requested from the Company and Ashford University documents and information for the time period January 1, 2006, to present. The Company is cooperating with the investigation and cannot predict the eventual scope, duration or outcome of the investigation at this time. Securities & Exchange Commission Subpoena of Bridgepoint Education, Inc. On July 22, 2014, the Company received from the SEC a subpoena relating to certain of the Company’s accounting practices, including revenue recognition, receivables and other matters relating to the Company’s previously disclosed intention to restate its financial statements for fiscal year ended December 31, 2013 and revise its financial statements for the years ended December 31, 2011 and 2012, and the prior revision of the Company’s financial statements for the fiscal year ended December 31, 2012. Pursuant to the subpoena, the SEC has requested from the Company documents and detailed information for the time period January 1, 2009 to present. The Company is cooperating with the investigation and cannot predict the eventual scope, duration or outcome of the investigation at this time. As a result, the Company cannot reasonably estimate a range of loss for this action and accordingly has not accrued any liability associated with this action. Consumer Financial Protection Bureau Subpoena of Bridgepoint Education, Inc. and Ashford University On August 10, 2015, the Company and Ashford University received from the Consumer Financial Protection Bureau (the “CFPB”) Civil Investigative Demands related to the CFPB's investigation to determine whether for-profit post-secondary-education companies or other unnamed persons have engaged in or are engaging in unlawful acts or practices related to the advertising, marketing or origination of private student loans. The Company and Ashford University have provided documents, testimony and other information to the CFPB, and cannot predict the eventual scope, duration or outcome of the investigation at this time. As a result, the Company cannot reasonably estimate a range of loss for this action and accordingly has not accrued any liability associated with this action. Securities Class Actions Consolidated Securities Class Action On July 13, 2012, a securities class action complaint was filed in the U.S. District Court for the Southern District of California by Donald K. Franke naming the Company, Andrew Clark, Daniel Devine and Jane McAuliffe as defendants for allegedly making false and materially misleading statements regarding the Company’s business and financial results, specifically the concealment of accreditation problems at Ashford University. The complaint asserts a putative class period stemming from May 3, 2011 to July 6, 2012. A substantially similar complaint was also filed in the same court by Luke Sacharczyk on July 17, 2012 making similar allegations against the Company, Andrew Clark and Daniel Devine. The Sacharczyk complaint asserts a putative class period stemming from May 3, 2011 to July 12, 2012. On July 26, 2012, another purported securities class action complaint was filed in the same court by David Stein against the same defendants based upon the same general set of allegations and class period. The complaints allege violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 promulgated thereunder and seek unspecified monetary relief, interest, and attorneys’ fees. On October 22, 2012, the Sacharczyk and Stein actions were consolidated with the Franke action and the Court appointed the City of Atlanta General Employees' Pension Fund and the Teamsters Local 677 Health Services & Insurance Plan as lead plaintiffs. A consolidated complaint was filed on December 21, 2012 and the Company filed a motion to dismiss on February 19, 2013. On September 13, 2013, the Court granted the motion to dismiss with leave to amend for alleged misrepresentations relating to Ashford University’s quality of education, the WSCUC accreditation process and the Company’s financial forecasts. The Court denied the motion to dismiss for alleged misrepresentations concerning Ashford University’s persistence rates. Following the conclusion of discovery, in September 2015, we entered into an agreement in principle with the plaintiffs to settle the litigation for $15.5 million , which we believe will be funded by our insurance carriers. The settlement agreement is subject to final approval by the Court, which we expect to occur during fiscal year 2016. Zamir v. Bridgepoint Education, Inc., et al. On February 24, 2015, a securities class action complaint was filed in the U.S. District Court for the Southern District of California by Nelda Zamir naming the Company, Andrew Clark and Daniel Devine as defendants. The complaint asserts violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder, claiming that the defendants made false and materially misleading statements and failed to disclose material adverse facts regarding the Company's business, operations and prospects, specifically regarding the Company’s improper application of revenue recognition methodology to assess collectability of funds owed by students. The complaint asserts a putative class period stemming from August 7, 2012 to May 30, 2014 and seeks unspecified monetary relief, interest and attorneys' fees. On July 15, 2015, the Court granted plaintiff's motion for appointment as lead plaintiff and for appointment of lead counsel. On September 18, 2015, the plaintiff filed a substantially similar amended complaint that asserts a putative class period stemming from March 12, 2013 to May 30, 2014. The amended complaint also names Patrick Hackett, Adarsh Sarma, Warburg Pincus & Co., Warburg Pincus LLC, Warburg Pincus Partners LLC, and Warburg Pincus Private Equity VIII, L.P. as additional defendants. The Company intends to vigorously defend against this action and anticipates filing a motion to dismiss in November 2015. However, the outcome of this legal proceeding is uncertain at this point because of the many questions of fact and law that may arise. Based on information available to the Company at present, it cannot reasonably estimate a range of loss for this action. Accordingly, the Company has not accrued any liability associated with this action. Shareholder Derivative Actions In re Bridgepoint, Inc. Shareholder Derivative Action On July 24, 2012, a shareholder derivative complaint was filed in California Superior Court by Alonzo Martinez. In the complaint, the plaintiff asserts a derivative claim on the Company's behalf against certain of its current and former officers and directors. The complaint is captioned Martinez v. Clark, et al. and generally alleges that the individual defendants breached their fiduciary duties of candor, good faith and loyalty, wasted corporate assets and were unjustly enriched. The lawsuit seeks unspecified monetary relief and disgorgement on behalf of the Company, as well as other equitable relief and attorneys' fees. On September 28, 2012, a substantially similar shareholder derivative complaint was filed in California Superior Court by David Adolph-Laroche. In the complaint, the plaintiff asserts a derivative claim on the Company's behalf against certain of its current and former officers and directors. The complaint is captioned Adolph-Laroche v. Clark, et al. and generally alleges that the individual defendants breached their fiduciary duties of candor, good faith and loyalty, wasted corporate assets and were unjustly enriched. On October 11, 2012, the Adolph-Laroche action was consolidated with the Martinez action and the case is now captioned In re Bridgepoint, Inc. Shareholder Derivative Action . A consolidated complaint was filed on December 18, 2012 and the defendants filed a motion to stay the case while the underlying securities class action is pending. The motion was granted by the Court on April 11, 2013. A status conference was held on October 10, 2013, during which the Court ordered the stay continued for the duration of discovery in the securities class action, but permitted the plaintiff to receive copies of any discovery responses served in the underlying securities class action. Cannon v. Clark, et al. On November 1, 2013, a shareholder derivative complaint was filed in the U.S. District Court for the Southern District of California by James Cannon. In the complaint, the plaintiff asserts a derivative claim on the Company's behalf against certain of its current officers and directors. The complaint is captioned Cannon v. Clark, et al . and is substantially similar to the previously filed California State Court derivative action now captioned In re Bridgepoint, Inc. Shareholder Derivative Action . In the complaint, plaintiff generally alleges that the individual defendants breached their fiduciary duties of candor, good faith and loyalty, wasted corporate assets and were unjustly enriched. The lawsuit seeks unspecified monetary relief and disgorgement on behalf of the Company, as well as other equitable relief and attorneys' fees. Pursuant to a stipulation among the parties, on January 6, 2014, the Court ordered the case stayed during discovery in the underlying securities class action, but permitted the plaintiff to receive copies of any discovery responses served in the underlying securities class action. Di Giovanni v. Clark, et al. , and Craig-Johnston v. Clark, et al . On December 9, 2013, two nearly identical shareholder derivative complaints were filed in the United States District Court for the Southern District of California. The complaints assert derivative claims on the Company's behalf against the members of the Company's board of directors as well as against Warburg Pincus & Co., Warburg Pincus LLC, Warburg Pincus Partners LLC, and Warburg Pincus Private Equity VIII, L.P. The two complaints are captioned Di Giovanni v. Clark, et al. and Craig-Johnston v. Clark, et al . The complaints generally allege that all of the defendants breached their fiduciary duties and were unjustly enriched and that the individual defendants wasted corporate assets in connection with the tender offer commenced by the Company on November 13, 2013. The lawsuits seek unspecified monetary relief and disgorgement, as well as other equitable relief and attorneys’ fees. On February 28, 2014, the defendants filed motions to dismiss, which were granted by the Court on October 17, 2014. The plaintiffs filed a notice of appeal on December 8, 2014 and the case is currently under appeal with the United States Court of Appeals for the Ninth Circuit. Klein v. Clark, et al. On January 9, 2014, a shareholder derivative complaint was filed in the Superior Court of the State of California in San Diego. The complaint asserts derivative claims on the Company's behalf against the members of the Company's board of directors as well as against Warburg Pincus & Co., Warburg Pincus LLC, Warburg Pincus Partners LLC, and Warburg Pincus Private Equity VIII, L.P. The complaint is captioned Klein v. Clark, et al. and generally alleges that all of the defendants breached their fiduciary duties and were unjustly enriched and that the individual defendants wasted corporate assets in connection with the tender offer commenced by the Company on November 13, 2013. The lawsuit seeks unspecified monetary relief and disgorgement, as well as other equitable relief and attorneys’ fees. On March 21, 2014, the Court granted the parties' stipulation to stay the case until the motions to dismiss in the related federal derivative action were decided. On November 14, 2014, the Court dismissed the case but retained jurisdiction in the event the dismissal in the federal case is reversed on appeal by the United States Court of Appeals for the Ninth Circuit. Reardon v. Clark, et al. On March 18, 2015, a shareholder derivative complaint was filed in the Superior Court of the State of California in San Diego. The complaint asserts derivative claims on the Company's behalf against certain of its current and former officers and directors. The complaint is captioned Reardon v. Clark, et al. and generally alleges that the individual defendants breached their fiduciary duties of candor, good faith and loyalty, wasted corporate assets and were unjustly enriched. The lawsuit seeks unspecified monetary relief and disgorgement, as well as other equitable relief and attorneys’ fees. Pursuant to a stipulation among the parties, on May 27, 2015, the Court ordered the case stayed during discovery in the underlying Zamir securities class action, but permitted the plaintiff to receive copies of any discovery conducted in the underlying Zamir securities class action. Guzman v. Bridgepoint Education, Inc. In January 2011, Betty Guzman filed a class action lawsuit against the Company, Ashford University and University of the Rockies in the U.S. District Court for the Southern District of California. The complaint is captioned Guzman v. Bridgepoint Education, Inc., et al. and generally alleges that the defendants engaged in misrepresentation and other unlawful behavior in their efforts to recruit and retain students. The complaint asserts a putative class period of March 1, 2005 through the present. In March 2011, the defendants filed a motion to dismiss the complaint, which was granted by the Court with leave to amend in October 2011. In January 2012, the plaintiff filed a first amended complaint asserting similar claims and the same class period, and the defendants filed another motion to dismiss. In May 2012, the Court granted University of the Rockies’ motion to dismiss and granted in part and denied in part the motion to dismiss filed by the Company and Ashford University. The Court also granted the plaintiff leave to file a second amended complaint. In August 2012, the plaintiff filed a second amended complaint asserting similar claims and the same class period. The second amended complaint seeks unspecified monetary relief, disgorgement of all profits, various other equitable relief, and attorneys’ fees. The defendants filed a motion to strike portions of the second amended complaint, which was granted in part and denied in part. On April 30, 2014, the plaintiff filed a motion for class certification, which was denied by the Court on March 26, 2015. On April 9, 2015, the plaintiff filed a petition for permission to appeal the denial of class certification with the United States Court of Appeals for the Ninth Circuit, which was denied by the Court of Appeals on June 9, 2015. On October 13, 2015, the parties entered into an agreement to settle the case for an immaterial amount and have filed a stipulation with the Court to dismiss the case with prejudice. Qui Tam Complaints In December 2012, the Company received notice that the U.S. Department of Justice had declined to intervene in a qui tam complaint filed in the U.S. District Court for the Southern District of California by Ryan Ferguson and Mark T. Pacheco under the federal False Claims Act on March 10, 2011 and unsealed on December 26, 2012. The complaint is captioned United States of America, ex rel., Ryan Ferguson and Mark T. Pacheco v. Bridgepoint Education, Inc., Ashford University and University of the Rockies . The qui tam complaint alleges, among other things, that since March 10, 2005, the Company caused its institutions, Ashford University and University of the Rockies, to violate the federal False Claims Act by falsely certifying to the U.S. Department of Education that the institutions were in compliance with various regulations governing the Title IV programs, including those that require compliance with federal rules regarding the payment of incentive compensation to enrollment personnel, student disclosures, and misrepresentation in connection with the institutions' participation in the Title IV programs. The complaint seeks significant damages, penalties and other relief. On April 30, 2013, the relators petitioned the Court for voluntary dismissal of the complaint without prejudice. The U.S. Department of Justice filed a notice stipulating to the dismissal and the Court granted the dismissal on June 12, 2013. In January 2013, the Company received notice that the U.S. Department of Justice had declined to intervene in a qui tam complaint filed in the U.S. District Court for the Southern District of California by James Carter and Roger Lengyel under the federal False Claims Act on July 2, 2010 and unsealed on January 2, 2013. The complaint is captioned United States of America, ex rel., James Carter and Roger Lengyel v. Bridgepoint Education, Inc., Ashford University . The qui tam complaint alleges, among other things, that since March 2005, the Company and Ashford University have violated the federal False Claims Act by falsely certifying to the U.S. Department of Education that Ashford University was in compliance with federal rules regarding the payment of incentive compensation to enrollment personnel in connection with the institution's participation in Title IV programs. Pursuant to a stipulation between the parties, the relators filed an amended complaint on May 10, 2013. The amended complaint is substantially similar to the original complaint and seeks significant damages, penalties and other relief. In March 2015, the Company filed a motion to dismiss the case pursuant to the public disclosure bar, which was granted without leave to amend by the Court on August 17, 2015. The relators filed a notice of appeal on September 15, 2015 and the case is currently under appeal with the United States Court of Appeals for the Ninth Circuit. The outcome of this legal proceeding is uncertain at this point because of the many questions of fact and law that may arise. Based on information available to the Company at present, it cannot reasonably estimate a range of loss for this action. Accordingly, the Company has not accrued any liability associated with this action. Cavazos v. Ashford University On June 22, 2015, Diamond Cavazos filed a purported class action against Ashford University in the Superior Court of the State of California in San Diego. The complaint is captioned Diamond Cavazos v. Ashford University, LLC and generally alleges various wage and hour claims under California law for failure to pay overtime, failure to pay minimum wages and failure to provide rest and meal breaks. The lawsuit seeks back pay, the cost of benefits, penalties and interest on behalf of the putative class members, as well as other equitable relief and attorneys' fees. Before responding to the complaint, the parties entered into an agreement to settle the case for an immaterial amount and have filed a stipulation with the Court to dismiss the case with prejudice. Coleman et al. v. Ashford University On June 4, 2015, Brandy Coleman and a group of seven other former employees filed a purported class action against Ashford University in the Superior Court of the State of California in San Diego. The complaint is captioned Brandy Coleman v. Ashford University, LLC and generally alleges violations of the California WARN Act for back pay and benefits associated with the termination of the plaintiffs' employment in May 2015. The lawsuit seeks unpaid wages, penalties and interest on behalf of the putative class members, as well as other equitable relief and attorneys' fees. Before responding to the complaint, the parties entered into an agreement to settle the case for an immaterial amount and have filed a stipulation with the Court to dismiss the case with prejudice. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of Bridgepoint Education, Inc. and its wholly-owned subsidiaries. Intercompany transactions have been eliminated in consolidation. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 , which was filed with the Securities and Exchange Commission (the “SEC”) on March 10, 2015 . In the opinion of management, these financial statements include all adjustments, consisting of normal recurring adjustments, considered necessary to present a fair statement of the Company's condensed consolidated financial position, results of operations and cash flows as of and for the periods presented. Operating results for any interim period are not necessarily indicative of the results that may be expected for the full year. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP for complete annual financial statements. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements. Actual results could differ from those estimates. |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior years’ financial statements to conform to the current year presentation. These reclassifications had no effect on previously reported results of operations or retained earnings. |
Restricted Cash | Restricted Cash The Company's restricted cash is primarily held in money market accounts, and is excluded from cash and cash equivalents on the Company's consolidated balance sheets and statements of cash flows. The majority of restricted cash represents funds held for students from Title IV financial aid program funds that result in credit balances on a student’s account. Changes in this restricted cash are included in the Company's condensed consolidated statements of cash flows as cash flows from operating activities. To a lesser extent, restricted cash also represents amounts held as collateral for letters of credit. Changes in this restricted cash are included in the Company's condensed consolidated statements of cash flows as cash flows from investing activities. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605, Revenue Recognition . This literature is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The accounting guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This standard can be adopted using one of two retrospective application methods. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606), Deferral of the Effective Date, which defer the effective date of ASU 2014-09 by one year, to fiscal years beginning after December 15, 2017. The Company continues to evaluate the impacts, if any, the adoption of ASU 2014-09 and ASU 2015-14 will have on the Company's financial position or results of operations. In January 2015, the FASB issued ASU 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20). This update simplifies the income statement presentation requirements and eliminates from GAAP the concept of extraordinary items, and essentially deletes the requirements in Subtopic 225-20. However, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amendments may be applied prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company adopted ASU 2015-01 effective April 1, 2015, and such adoption does not have a material effect on the Company's consolidated financial statements. |
Restructuring and Impairment 23
Restructuring and Impairment Charges Restructuring and Impairment Charges (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Charges | A summary of the charges are below (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Asset impairment $ 37,300 $ — $ 38,612 $ — Student transfer agreement costs 4,275 — 4,275 — Severance costs 2,120 — 2,895 — Lease exit and other costs 1,209 — 13,540 — Total restructuring and impairment charges $ 44,904 $ — $ 59,322 $ — |
Accounts Receivable (Tables)
Accounts Receivable (Tables) - Allowance for Doubtful Accounts, Current | 9 Months Ended |
Sep. 30, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Accounts Receivable, Net | Accounts receivable, net, consist of the following (in thousands): As of As of Accounts receivable $ 57,328 $ 48,841 Less allowance for doubtful accounts (26,535 ) (27,567 ) Accounts receivable, net $ 30,793 $ 21,274 |
Changes in Allowance for Doubtful Accounts, Accounts Receivable | The following table presents the changes in the allowance for doubtful accounts for the periods indicated (in thousands): Beginning Balance Charged to Expense Deductions(1) Ending Balance Allowance for doubtful accounts: For the nine months ended September 30, 2015 $ (27,567 ) $ 24,249 $ (25,281 ) $ (26,535 ) For the nine months ended September 30, 2014 $ (26,901 ) 21,957 (21,177 ) $ (27,681 ) (1) Deductions represent accounts written off, net of recoveries. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Information of Short and Long-term Investments | The following tables summarize the fair value information of short-term and long-term investments as of September 30, 2015 and December 31, 2014 , respectively (in thousands): As of September 30, 2015 Level 1 Level 2 Level 3 Total Mutual funds $ 1,238 $ — $ — $ 1,238 Corporate notes and bonds — 47,026 — 47,026 U.S. government and agency securities — 20,002 — 20,002 Certificates of deposit — 25,000 — 25,000 Total $ 1,238 $ 92,028 $ — $ 93,266 As of December 31, 2014 Level 1 Level 2 Level 3 Total Mutual funds $ 1,071 $ — $ — $ 1,071 Corporate notes and bonds — 62,550 — 62,550 U.S. government and agency securities — 34,987 — 34,987 Certificates of deposit — 25,000 — 25,000 Total $ 1,071 $ 122,537 $ — $ 123,608 |
Student Loans Receivable (Table
Student Loans Receivable (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Delinquency Status of Gross Student Loans Receivable | As of September 30, 2015 , the delinquency status of gross student loans receivable was as follows (in thousands): 120 days and less $ 13,595 From 121 - 270 days 963 Greater than 270 days 3,616 Total gross student loans receivable 18,174 Less: Amounts reserved or impaired (7,129 ) Less: Discount on student loans receivable (2,510 ) Total student loans receivable, net $ 8,535 |
Allowance for Notes Receivable | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Student Loans Receivable, Net | Student loans receivable, net, consist of the following (in thousands): Short-term: As of As of Student loans receivable (non-tuition related) $ 455 $ 509 Student loans receivable (tuition related) 582 626 Current student loans receivable 1,037 1,135 Less allowance for doubtful accounts (109 ) (132 ) Student loans receivable, net $ 928 $ 1,003 Long-term: As of As of Student loans receivable (non-tuition related) $ 3,402 $ 4,805 Student loans receivable (tuition related) 5,611 6,068 Non-current student loans receivable 9,013 10,873 Less allowance for doubtful accounts (1,406 ) (1,363 ) Student loans receivable, net $ 7,607 $ 9,510 |
Changes in Allowance for Doubtful Accounts, Student Loans Receivable | The following table presents the changes in the allowance for doubtful accounts for the periods indicated (in thousands): Beginning Balance Charged to Expense Deductions(1) Ending Balance Allowance for student loans receivable (tuition related): For the nine months ended September 30, 2015 $ (1,495 ) $ 20 $ — $ (1,515 ) For the nine months ended September 30, 2014 $ (2,144 ) 4 981 $ (1,167 ) (1) Deductions represent accounts written off, net of recoveries. |
Other Significant Balance She27
Other Significant Balance Sheet Accounts (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Significant Balance Sheet Accounts [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following (in thousands): As of As of Prepaid expenses $ 7,884 $ 8,500 Prepaid licenses 2,857 5,598 Prepaid income taxes 2,127 2,945 Prepaid insurance 1,939 1,508 Interest receivable 378 424 Insurance recoverable 17,646 3,040 Other current assets 746 803 Total prepaid expenses and other current assets $ 33,577 $ 22,818 |
Property and Equipment, Net | Property and equipment, net, consist of the following (in thousands): As of As of Land $ — $ 7,091 Buildings — 29,540 Furniture and office equipment 63,322 81,030 Software 12,533 12,454 Leasehold improvements 11,155 21,096 Vehicles 22 147 Campus assets held and used 6,075 — Total property and equipment 93,107 151,358 Less accumulated depreciation and amortization (62,547 ) (73,139 ) Total property and equipment, net $ 30,560 $ 78,219 |
Goodwill and Intangibles, Net | Goodwill and intangibles, net, consist of the following (in thousands): September 30, 2015 Definite-lived intangible assets: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Capitalized curriculum costs $ 19,931 $ (12,914 ) $ 7,017 Purchased intangible assets 15,850 (3,213 ) 12,637 Total definite-lived intangible assets $ 35,781 $ (16,127 ) $ 19,654 Goodwill and indefinite-lived intangibles 2,567 Total goodwill and intangibles, net $ 22,221 December 31, 2014 Definite-lived intangible assets: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Capitalized curriculum costs $ 18,174 $ (9,526 ) $ 8,648 Purchased intangible assets 15,850 (2,290 ) 13,560 Total definite-lived intangible assets $ 34,024 $ (11,816 ) $ 22,208 Goodwill and indefinite-lived intangibles 2,567 Total goodwill and intangibles, net $ 24,775 |
Intangibles, Estimated Remaining Amortization Expense | The following table summarizes the estimated remaining amortization expense as of each fiscal year ended below (in thousands): Year Ended December 31, 2015 $ 1,347 2016 4,571 2017 3,052 2018 1,973 2019 1,311 Thereafter 7,400 Total future amortization expense $ 19,654 |
Accrued Liabilities | Accrued liabilities consist of the following (in thousands): As of As of Accrued salaries and wages $ 7,620 $ 8,250 Accrued bonus 2,595 2,720 Accrued vacation 9,798 9,771 Accrued litigation and fees 720 542 Accrued expenses 16,977 16,623 Student transfer agreement costs 2,584 — Rent liability 12,606 8,528 Accrued insurance liability 19,464 4,520 Accrued income taxes payable — 449 Total accrued liabilities $ 72,364 $ 51,403 |
Deferred Revenue and Student Deposits | Deferred revenue and student deposits consist of the following (in thousands): As of As of Deferred revenue $ 35,628 $ 26,445 Student deposits 53,986 81,603 Total deferred revenue and student deposits $ 89,614 $ 108,048 |
Other Long-Term Liabilities | Other long-term liabilities consist of the following (in thousands): As of As of Uncertain tax positions $ 7,932 $ 7,586 Legal settlements 332 1,000 Student transfer agreement costs 1,692 — Other long-term liabilities 1,946 1,066 Total other long-term liabilities $ 11,902 $ 9,652 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Lease Obligations [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The following table summarizes the future minimum rental payments under non-cancelable operating lease arrangements in effect at September 30, 2015 (in thousands): Year Ended December 31, 2015 $ 8,813 2016 36,019 2017 35,914 2018 31,285 2019 20,876 Thereafter 16,694 Total minimum payments $ 149,601 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings (loss) per share for the periods indicated (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Net income (loss) $ (62,746 ) $ 6,291 $ (63,767 ) $ 14,916 Denominator: Weighted average number of common shares outstanding 45,754 45,301 45,620 45,145 Effect of dilutive options and stock units — 1,173 — 1,350 Diluted weighted average number of common shares outstanding 45,754 46,474 45,620 46,495 Earnings (loss) per share: Basic earnings (loss) per share $ (1.37 ) $ 0.14 $ (1.40 ) $ 0.33 Diluted earnings (loss) per share $ (1.37 ) $ 0.14 $ (1.40 ) $ 0.32 |
Antidilutive Securities | For the periods indicated below, the computation of diluted common shares outstanding excludes stock options, RSUs and PSUs, as applicable, because their effect was anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Options 5,147 2,765 5,116 2,661 Stock units 691 — 673 — |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of Valuation Allowance Components | The following is a summary of the components of the valuation allowance recorded in the current quarter (in thousands): Net deferred tax assets at December 31, 2014 $ 41.5 2014 return to provision adjustments (0.1 ) Gross up for indefinite-lived intangible deferred tax liability 0.7 Net deferred tax assets at December 31, 2014, as adjusted $ 42.1 Temporary differences at December 31, 2014 that reverse in 2015 and reduce taxes paid (17.2 ) Valuation allowance recorded in third quarter of 2015 for future amortization expense $ 24.9 Temporary differences originating in 2015 expense $ 38.1 Anticipated reversals of temporary differences that can carryback for tax refunds (16.9 ) Valuation allowance recorded in the third quarter of 2015 through effective tax rate $ 21.2 Total valuation allowance recorded in the third quarter of 2015 $ 46.1 |
Restructuring and Impairment 31
Restructuring and Impairment Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and impairment charges | $ 44,904 | $ 0 | $ 59,322 | $ 0 |
Asset impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and impairment charges | 37,300 | 0 | 38,612 | 0 |
Lease Agreements | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and impairment charges | 1,209 | 0 | 13,540 | 0 |
Service Agreements | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs and Asset Impairment Charges | 4,275 | 0 | 4,275 | 0 |
Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs and Asset Impairment Charges | 2,120 | $ 0 | 2,895 | $ 0 |
Restructuring Reserve | $ 2,500 | $ 2,500 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Accounts receivable | $ 57,328 | $ 48,841 |
Less allowance for doubtful accounts | (26,535) | (27,567) |
Accounts receivable, net | $ 30,793 | $ 21,274 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | $ 93,266 | $ 93,266 | $ 123,608 | ||
Unrealized gains (losses) on investments | (12) | $ (123) | 123 | $ (195) | |
Unrealized gains (losses) on investments, tax expense (benefit) | 5 | $ (26) | 66 | $ (73) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 61 | ||||
Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 1,238 | 1,238 | 1,071 | ||
Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 92,028 | 92,028 | 122,537 | ||
Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 0 | 0 | 0 | ||
Mutual funds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 1,238 | 1,238 | 1,071 | ||
Mutual funds | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 1,238 | 1,238 | 1,071 | ||
Mutual funds | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 0 | 0 | 0 | ||
Mutual funds | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 0 | 0 | 0 | ||
Corporate notes and bonds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 47,026 | 47,026 | 62,550 | ||
Corporate notes and bonds | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 0 | 0 | 0 | ||
Corporate notes and bonds | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 47,026 | 47,026 | 62,550 | ||
Corporate notes and bonds | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 0 | 0 | 0 | ||
U.S. government and agency securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 20,002 | 20,002 | 34,987 | ||
U.S. government and agency securities | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 0 | 0 | 0 | ||
U.S. government and agency securities | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 20,002 | 20,002 | 34,987 | ||
U.S. government and agency securities | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 0 | 0 | 0 | ||
Certificates of deposit | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 25,000 | 25,000 | 25,000 | ||
Certificates of deposit | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 0 | 0 | 0 | ||
Certificates of deposit | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 25,000 | 25,000 | 25,000 | ||
Certificates of deposit | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | $ 0 | $ 0 | $ 0 |
Accounts Receivable (Change in
Accounts Receivable (Change in Allowance) (Details) - Allowance for Doubtful Accounts, Current - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Beginning Balance | $ (27,567) | $ (26,901) |
Charged to Expense | 24,249 | 21,957 |
Deductions1 | (25,281) | (21,177) |
Ending Balance | $ (26,535) | $ (27,681) |
Student Loans Receivable (Detai
Student Loans Receivable (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Student loans receivable, short-term | $ 1,037 | $ 1,135 |
Less allowance for doubtful accounts, short-term | (109) | (132) |
Student loans receivable, net, short-term | 928 | 1,003 |
Student loans receivable, long-term | 9,013 | 10,873 |
Less allowance for doubtful accounts, long-term | (1,406) | (1,363) |
Student loans receivable, net, long-term | 7,607 | 9,510 |
Student Loans Receivable (Non-tuition Related) | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Student loans receivable, short-term | 455 | 509 |
Student loans receivable, long-term | 3,402 | 4,805 |
Student Loans Receivable (Tuition Related) | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Student loans receivable, short-term | 582 | 626 |
Student loans receivable, long-term | $ 5,611 | $ 6,068 |
Repayment Plan One [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans Receivable, Interest Rate, Stated Percentage | 4.50% |
Student Loans Receivable (Chang
Student Loans Receivable (Change in Allowance) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Provision for Loan and Lease Losses | $ 300 | $ 1,200 | |
Allowance for Notes Receivable | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | (1,495) | $ (2,144) | |
Charged to Expense | 20 | 4 | |
Deductions1 | 0 | 981 | |
Ending Balance | $ (1,515) | $ (1,515) | $ (1,167) |
Student Loans Receivable (Delin
Student Loans Receivable (Delinquency Status) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans placed on non-accrual status | $ 5,600 |
Allowance for Notes Receivable | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
120 days and less | 13,595 |
From 121 - 270 days | 963 |
Greater than 270 days | 3,616 |
Total gross student loans receivable | 18,174 |
Less: Amounts reserved or impaired | (7,129) |
Less: Discount on student loans receivable | (2,510) |
Total student loans receivable, net | $ 8,535 |
Other Significant Balance She38
Other Significant Balance Sheet Accounts (Prepaid Expenses and Other Current Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid expenses | $ 7,884 | $ 8,500 |
Prepaid licenses | 2,857 | 5,598 |
Prepaid income taxes | 2,127 | 2,945 |
Prepaid insurance | 1,939 | 1,508 |
Interest receivable | 378 | 424 |
Insurance recoverable | 17,646 | 3,040 |
Other current assets | 746 | 803 |
Total prepaid expenses and other current assets | $ 33,577 | $ 22,818 |
Other Significant Balance She39
Other Significant Balance Sheet Accounts (Property and Equipment, Net) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 93,107 | $ 151,358 |
Less accumulated depreciation and amortization | (62,547) | (73,139) |
Total property and equipment, net | 30,560 | 78,219 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 0 | 7,091 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 0 | 29,540 |
Furniture and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 63,322 | 81,030 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 12,533 | 12,454 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 11,155 | 21,096 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 22 | 147 |
Impaired Long-Lived Assets Held and Used, Asset Name [Domain] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 6,075 | $ 0 |
Other Significant Balance She40
Other Significant Balance Sheet Accounts (Goodwill and Intangibles, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Goodwill and Intangibles, Net | |||||
Definite-lived intangible assets, gross carrying amount | $ 35,781 | $ 35,781 | $ 34,024 | ||
Definite-lived intangible assets, accumulated amortization | (16,127) | (16,127) | (11,816) | ||
Definite-lived intangible assets, net carrying amount | 19,654 | 19,654 | 22,208 | ||
Goodwill and indefinite-lived intangibles | 2,567 | 2,567 | 2,567 | ||
Total goodwill and intangibles, net | 22,221 | 22,221 | 24,775 | ||
Amortization expense | 1,400 | $ 1,500 | 4,300 | $ 4,200 | |
Future Amortization Expense | |||||
2,015 | 1,347 | 1,347 | |||
2,016 | 4,571 | 4,571 | |||
2,017 | 3,052 | 3,052 | |||
2,018 | 1,973 | 1,973 | |||
2,019 | 1,311 | 1,311 | |||
Thereafter | 7,400 | 7,400 | |||
Total future amortization expense | 19,654 | 19,654 | |||
Capitalized Curriculum Costs | |||||
Goodwill and Intangibles, Net | |||||
Definite-lived intangible assets, gross carrying amount | 19,931 | 19,931 | 18,174 | ||
Definite-lived intangible assets, accumulated amortization | (12,914) | (12,914) | (9,526) | ||
Definite-lived intangible assets, net carrying amount | 7,017 | 7,017 | 8,648 | ||
Purchased Intangible Assets | |||||
Goodwill and Intangibles, Net | |||||
Definite-lived intangible assets, gross carrying amount | 15,850 | 15,850 | 15,850 | ||
Definite-lived intangible assets, accumulated amortization | (3,213) | (3,213) | (2,290) | ||
Definite-lived intangible assets, net carrying amount | $ 12,637 | $ 12,637 | $ 13,560 |
Other Significant Balance She41
Other Significant Balance Sheet Accounts (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Significant Balance Sheet Accounts [Abstract] | ||
Accrued salaries and wages | $ 7,620 | $ 8,250 |
Accrued bonus | 2,595 | 2,720 |
Accrued vacation | 9,798 | 9,771 |
Accrued litigation and fees | 720 | 542 |
Accrued expenses | 16,977 | 16,623 |
Student transfer agreement costs | 2,584 | 0 |
Rent liability | 12,606 | 8,528 |
Accrued insurance liability | 19,464 | 4,520 |
Accrued income taxes payable | 0 | 449 |
Total accrued liabilities | $ 72,364 | $ 51,403 |
Other Significant Balance She42
Other Significant Balance Sheet Accounts (Deferred Revenue) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Deferred Revenue [Abstract] | ||
Deferred revenue | $ 35,628 | $ 26,445 |
Student deposits | 53,986 | 81,603 |
Total deferred revenue and student deposits | $ 89,614 | $ 108,048 |
Other Significant Balance She43
Other Significant Balance Sheet Accounts (Other Long-term Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Other Long-Term Liabilities [Abstract] | ||
Uncertain tax positions | $ 7,932 | $ 7,586 |
Legal settlements | 332 | 1,000 |
Restructuring Reserve, Noncurrent | 1,692 | 0 |
Other long-term liabilities | 1,946 | 1,066 |
Total other long-term liabilities | $ 11,902 | $ 9,652 |
Credit Facilities (Details)
Credit Facilities (Details) - USD ($) | Apr. 13, 2012 | Sep. 30, 2015 |
Surety Bond Facility [Abstract] | ||
Surety bond facility, available amount | $ 12,000,000 | |
Surety bond facility, issued amount | 3,400,000 | |
April 2012 Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Revolving line of credit, current borrowing capacity | $ 50,000,000 | |
Revolving line of credit, term | 3 years | |
Revolving line of credit, amount outstanding | 0 | |
Revolving line of credit, letters of credit outstanding | $ 6,400,000 |
Lease Obligations (Details)
Lease Obligations (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Lease Obligations [Abstract] | ||
Operating Leases, Rent Expense, Net | $ 33,000 | $ 26,600 |
2,015 | 8,813 | |
2,016 | 36,019 | |
2,017 | 35,914 | |
2,018 | 31,285 | |
2,019 | 20,876 | |
Thereafter | 16,694 | |
Total minimum payments | $ 149,601 |
Earnings (Loss) Per Share (Basi
Earnings (Loss) Per Share (Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator: | ||||
Net income (loss) | $ (62,746) | $ 6,291 | $ (63,767) | $ 14,916 |
Denominator: | ||||
Weighted average number of common shares outstanding (in shares) | 45,754 | 45,301 | 45,620 | 45,145 |
Effect of dilutive options and restricted stock units (in shares) | 0 | 1,173 | 0 | 1,350 |
Diluted weighted average number of common shares outstanding (in shares) | 45,754 | 46,474 | 45,620 | 46,495 |
Earnings (loss) per share: | ||||
Basic (in usd per share) | $ (1.37) | $ 0.14 | $ (1.40) | $ 0.33 |
Diluted (in usd per share) | $ (1.37) | $ 0.14 | $ (1.40) | $ 0.32 |
Earnings (Loss) Per Share (Anti
Earnings (Loss) Per Share (Anti-dilutive Securities) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of dilutive common shares outstanding | 5,147 | 2,765 | 5,116 | 2,661 |
Stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of dilutive common shares outstanding | 691 | 0 | 673 | 0 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1.7 | $ 2.8 | $ 7.3 | $ 7.9 |
Income tax benefit of stock-based compensation expense | 0.6 | $ 1.1 | 2.7 | $ 3 |
Unrecognized compensation cost related to unvested options and RSUs | $ 17.3 | $ 17.3 | ||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-option equity instruments granted during the period | 28,060 | |||
Grant date fair value | $ 8.08 | |||
Equity instruments other than options vested during period | 10,320 | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity instruments other than options vested during period | 0 | |||
Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options exercised | 57,756 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Valuation Allowance [Line Items] | |||
Valuation Allowance, Increase (Decrease) from Temporary Differences Originating in Prior Years and Reversing in Current Year | $ (17,200) | $ (17,200) | |
Estimated Annual Effective Income Tax Rate | (10.30%) | ||
Effective Income Tax Rate Reconciliation, Percent | (83.80%) | ||
2014 return to provision adjustments | $ (100) | ||
Gross up for indefinite-lived intangible deferred tax liability | 700 | ||
Valuation allowance recorded in third quarter of 2015 for future amortization expense | 46,100 | ||
Temporary differences originating in 2015 expense | 38,100 | $ 38,100 | |
Anticipated reversals of temporary differences that can carryback for tax refunds | (16,900) | (16,900) | |
Unrecognized Tax Benefits | 20,600 | 20,600 | 20,900 |
Gross unrecognized tax benefits that would impact effective tax rate if recognized | 13,400 | 13,400 | 13,600 |
Income tax examination refund | 12,600 | ||
Accrued interest and penalties related to uncertain tax positions | 2,100 | $ 2,100 | 1,900 |
Deferred Tax Asset [Member] | |||
Valuation Allowance [Line Items] | |||
Valuation allowance recorded in third quarter of 2015 for future amortization expense | 24,900 | ||
Valuation Allowance Impact on Effective Tax Rate [Member] | |||
Valuation Allowance [Line Items] | |||
Valuation allowance recorded in third quarter of 2015 for future amortization expense | $ 21,200 | ||
Scenario, Previously Reported [Member] | |||
Valuation Allowance [Line Items] | |||
Net deferred tax assets at December 31, 2014 | 41,500 | ||
Scenario, Adjustment [Member] | |||
Valuation Allowance [Line Items] | |||
Net deferred tax assets at December 31, 2014 | $ 42,100 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2013 |
Regulatory Liability [Domain] | ||
Loss Contingencies [Line Items] | ||
Estimated litigation liability | $ 1.1 | $ 9 |
Insurance Settlement [Member] | ||
Loss Contingencies [Line Items] | ||
Estimated litigation liability | $ 15.5 |