Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 16, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | LOPE | ||
Entity Registrant Name | GRAND CANYON EDUCATION, INC. | ||
Entity Central Index Key | 1,434,588 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 48,292,274 | ||
Entity Public Float | $ 3.7 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 153,474 | $ 45,976 |
Restricted cash and cash equivalents | 94,534 | 84,931 |
Investments | 89,271 | 62,596 |
Accounts receivable, net | 10,908 | 9,538 |
Income taxes receivable | 2,086 | 4,686 |
Other current assets | 24,589 | 22,341 |
Total current assets | 374,862 | 230,068 |
Property and equipment, net | 922,284 | 855,528 |
Prepaid royalties | 2,763 | 3,059 |
Goodwill | 2,941 | 2,941 |
Other assets | 723 | 897 |
Total assets | 1,303,573 | 1,092,493 |
Current liabilities | ||
Accounts payable | 29,139 | 24,824 |
Accrued compensation and benefits | 23,173 | 19,697 |
Accrued liabilities | 20,757 | 21,283 |
Income taxes payable | 16,182 | 2,734 |
Student deposits | 95,298 | 85,881 |
Deferred revenue | 46,895 | 40,739 |
Current portion of notes payable | 6,691 | 31,636 |
Total current liabilities | 238,135 | 226,794 |
Other noncurrent liabilities | 1,200 | 1,689 |
Deferred income taxes, non-current | 18,362 | 23,708 |
Notes payable, less current portion | 59,925 | 66,616 |
Total liabilities | 317,622 | 318,807 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock, $0.01 par value, 10,000 shares authorized; 0 shares issued and outstanding at December 31, 2017 and 2016 | ||
Common stock, $0.01 par value, 100,000 shares authorized; 52,277 and 51,509 shares issued and 48,125 and 47,559 shares outstanding at December 31, 2017 and 2016, respectively | 523 | 515 |
Treasury stock, at cost, 4,152 and 3,950 shares of common stock at December 31, 2017 and 2016, respectively | (100,694) | (89,394) |
Additional paid-in capital | 232,670 | 212,559 |
Accumulated other comprehensive loss | (724) | (910) |
Retained earnings | 854,176 | 650,916 |
Total stockholders' equity | 985,951 | 773,686 |
Total liabilities and stockholders' equity | $ 1,303,573 | $ 1,092,493 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 52,277,000 | 51,509,000 |
Common stock, shares outstanding | 48,125,000 | 47,559,000 |
Treasury stock, shares | 4,152,000 | 3,950,000 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||||||||||
Net revenue | $ 271,418 | $ 236,209 | $ 218,301 | $ 248,206 | $ 244,663 | $ 210,444 | $ 191,279 | $ 226,958 | $ 974,134 | $ 873,344 | $ 778,200 |
Costs and expenses: | |||||||||||
Instructional costs and services | 108,933 | 104,303 | 95,030 | 102,574 | 102,100 | 91,748 | 84,599 | 94,654 | 410,840 | 373,101 | 329,651 |
Admissions advisory and related | 34,061 | 31,426 | 31,085 | 31,972 | 32,062 | 28,814 | 28,866 | 29,544 | 128,544 | 119,286 | 112,572 |
Advertising | 23,678 | 25,523 | 24,776 | 24,631 | 21,000 | 23,896 | 22,149 | 21,107 | 98,608 | 88,152 | 76,229 |
Marketing and promotional | 2,555 | 2,350 | 2,264 | 2,460 | 2,383 | 2,127 | 2,108 | 2,242 | 9,629 | 8,860 | 7,287 |
General and administrative | 10,845 | 12,915 | 10,058 | 9,941 | 10,260 | 13,430 | 8,809 | 10,720 | 43,759 | 43,219 | 42,100 |
Lease termination costs | 160 | 3,363 | 3,523 | ||||||||
Total costs and expenses | 180,072 | 176,517 | 163,213 | 171,578 | 167,965 | 163,378 | 146,531 | 158,267 | 691,380 | 636,141 | 567,839 |
Operating income | 91,346 | 59,692 | 55,088 | 76,628 | 76,698 | 47,066 | 44,748 | 68,691 | 282,754 | 237,203 | 210,361 |
Interest expense | (527) | (567) | (495) | (580) | (497) | (344) | (158) | (329) | (2,169) | (1,328) | (1,248) |
Interest income and other | 757 | 1,445 | 739 | 2 | 199 | (2,291) | 293 | 2,048 | 2,943 | 249 | (106) |
Income before income taxes | 91,576 | 60,570 | 55,332 | 76,050 | 76,400 | 44,431 | 44,883 | 70,410 | 283,528 | 236,124 | 209,007 |
Income tax expense | 23,320 | 21,266 | 15,485 | 20,138 | 28,421 | 15,187 | 17,257 | 26,745 | 80,209 | 87,610 | 77,596 |
Net income | $ 68,256 | $ 39,304 | $ 39,847 | $ 55,912 | $ 47,979 | $ 29,244 | $ 27,626 | $ 43,665 | $ 203,319 | $ 148,514 | $ 131,411 |
Earnings per share: | |||||||||||
Basic income per share | $ 1.44 | $ 0.83 | $ 0.85 | $ 1.20 | $ 1.03 | $ 0.63 | $ 0.60 | $ 0.96 | $ 4.31 | $ 3.22 | $ 2.86 |
Diluted income per share | $ 1.41 | $ 0.81 | $ 0.83 | $ 1.16 | $ 1.01 | $ 0.62 | $ 0.59 | $ 0.93 | $ 4.22 | $ 3.15 | $ 2.78 |
Basic weighted average shares outstanding | 47,342 | 47,316 | 47,151 | 46,748 | 46,470 | 46,231 | 46,004 | 45,622 | 47,140 | 46,083 | 45,975 |
Diluted weighted average shares outstanding | 48,382 | 48,292 | 48,192 | 48,070 | 47,452 | 47,175 | 46,990 | 46,860 | 48,235 | 47,121 | 47,281 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 203,319 | $ 148,514 | $ 131,411 |
Other comprehensive income (loss), net of tax: | |||
Unrealized gains (losses) on hedging derivatives, net of taxes of $6, $94, and $230 for the years ended December 31, 2017, 2016 and 2015, respectively | 11 | (151) | (372) |
Unrealized gains (losses) on available for sale securities, net of taxes of $108, $168 and $50 for the years ended December 31, 2017, 2016 and 2015, respectively | 175 | (270) | (82) |
Comprehensive income | $ 203,505 | $ 148,093 | $ 130,957 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized losses on hedging derivatives, taxes | $ 6 | $ 94 | $ 230 |
Unrealized gains (losses) on available-for-sale securities, taxes | $ 108 | $ 168 | $ 50 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Beginning Balance at Dec. 31, 2014 | $ 476,232 | $ 497 | $ (53,770) | $ 158,549 | $ (35) | $ 370,991 |
Beginning Balance, Shares at Dec. 31, 2014 | 49,746 | 3,002 | ||||
Comprehensive income | 130,957 | (454) | 131,411 | |||
Common stock purchased for treasury | (11,279) | $ (11,279) | ||||
Common stock purchased for treasury, shares | 288 | |||||
Share-based compensation | 6,989 | $ 3 | $ (4,283) | 11,269 | ||
Share-based compensation, Shares | 324 | 94 | ||||
Restricted shares forfeited | 0 | $ 0 | $ 0 | 0 | 0 | 0 |
Restricted shares forfeited, Shares | 27 | |||||
Exercise of stock options | $ 3,489 | $ 3 | 3,486 | |||
Exercise of stock options, Shares | 218 | 218 | ||||
Excess tax benefits | $ 3,863 | 3,863 | ||||
Ending Balance at Dec. 31, 2015 | 610,251 | $ 503 | $ (69,332) | 177,167 | (489) | 502,402 |
Ending Balance, Shares at Dec. 31, 2015 | 50,288 | 3,411 | ||||
Comprehensive income | 148,093 | (421) | 148,514 | |||
Common stock purchased for treasury | (15,367) | $ (15,367) | ||||
Common stock purchased for treasury, shares | 416 | |||||
Share-based compensation | 7,581 | $ 3 | $ (4,695) | 12,273 | ||
Share-based compensation, Shares | 275 | 114 | ||||
Restricted shares forfeited | 0 | $ 0 | $ 0 | 0 | 0 | 0 |
Restricted shares forfeited, Shares | 9 | |||||
Exercise of stock options | $ 13,207 | $ 9 | 13,198 | |||
Exercise of stock options, Shares | 946 | 946 | ||||
Excess tax benefits | $ 9,921 | 9,921 | ||||
Ending Balance at Dec. 31, 2016 | 773,686 | $ 515 | $ (89,394) | 212,559 | (910) | 650,916 |
Ending Balance, Shares at Dec. 31, 2016 | 51,509 | 3,950 | ||||
Comprehensive income | 203,505 | 186 | 203,319 | |||
Common stock purchased for treasury | $ (1,510) | $ (1,510) | ||||
Common stock purchased for treasury, shares | 17 | 17 | ||||
Share-based compensation | $ 2,898 | $ 2 | $ (9,790) | 12,686 | ||
Share-based compensation, Shares | 192 | 151 | ||||
Restricted shares forfeited | 0 | $ 0 | $ 0 | 0 | 0 | 0 |
Restricted shares forfeited, Shares | 34 | |||||
Exercise of stock options | $ 7,372 | $ 6 | 7,366 | |||
Exercise of stock options, Shares | 576 | 576 | ||||
Ending Balance at Dec. 31, 2017 | $ 985,951 | $ 523 | $ (100,694) | 232,670 | $ (724) | 854,176 |
Ending Balance, Shares at Dec. 31, 2017 | 52,277 | 4,152 | ||||
Cumulative effect from the adoption of accounting pronouncements, net of taxes | $ 59 | $ (59) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows provided by operating activities: | |||
Net income | $ 203,319 | $ 148,514 | $ 131,411 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Share-based compensation | 12,688 | 12,276 | 11,257 |
Provision for bad debts | 18,478 | 18,639 | 16,620 |
Depreciation and amortization | 54,228 | 45,683 | 35,675 |
Deferred income taxes | (5,160) | 8,432 | 4,576 |
Other, including fixed asset impairments | 3,883 | 1,161 | 3,713 |
Changes in assets and liabilities: | |||
Accounts receivable | (19,848) | (20,598) | (17,139) |
Prepaid expenses and other | (2,399) | (1,715) | (2,525) |
Accounts payable | 5,378 | (4,793) | 5,002 |
Accrued liabilities | 3,079 | 6,743 | (5,500) |
Income taxes receivable/payable | 16,048 | 11,892 | (4,965) |
Deferred rent | (369) | (475) | (1,211) |
Deferred revenue | 6,156 | 2,863 | 1,008 |
Student deposits | 9,417 | 9,139 | 7,158 |
Net cash provided by operating activities | 304,898 | 237,761 | 185,080 |
Cash flows used in investing activities: | |||
Capital expenditures | (113,586) | (178,292) | (204,718) |
Purchases of land, building and golf course improvements related to off-site development | (10,368) | (60,727) | (13,583) |
Proceeds received from note receivable | 501 | ||
Return of equity method investment | 685 | 1,749 | |
Purchases of investments | (94,054) | (49,157) | (48,122) |
Proceeds from sale or maturity of investments | 65,259 | 69,925 | 65,542 |
Net cash used in investing activities | (152,064) | (216,001) | (200,881) |
Cash flows (used in) provided by financing activities: | |||
Principal payments on notes payable and capital lease obligations | (6,805) | (7,224) | (6,784) |
Debt issuance costs | (194) | ||
Net borrowings from revolving line of credit | (25,000) | 25,000 | |
Repurchase of common shares including shares withheld in lieu of income taxes | (11,300) | (20,062) | (15,562) |
Net proceeds from exercise of stock options | 7,372 | 13,207 | 3,489 |
Net cash (used in) provided by financing activities | (35,733) | 10,727 | (18,857) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 117,101 | 32,487 | (34,658) |
Cash and cash equivalents and restricted cash, beginning of period | 130,907 | 98,420 | 133,078 |
Cash and cash equivalents and restricted cash, end of period | 248,008 | 130,907 | 98,420 |
Supplemental disclosure of cash flow information | |||
Cash paid during the year for interest | 2,252 | 1,220 | 1,244 |
Cash paid during the year for income taxes | 69,606 | 66,206 | 75,587 |
Supplemental disclosure of non-cash investing and financing activities | |||
Purchases of property and equipment included in accounts payable | $ 6,682 | 7,746 | 13,277 |
Purchases of equipment though capital lease obligations | 1,156 | ||
Shortfall tax expense from share-based compensation | 260 | 26 | |
Tax benefit of Spirit warrant intangible | $ 253 | $ 253 |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | 1. Nature of Business Grand Canyon Education, Inc. (together with its subsidiaries, the “University”) was formed in Delaware in November 2003 as a limited liability company, under the name Significant Education, LLC, for the purpose of acquiring the assets of Grand Canyon University from a non-profit The University is a comprehensive regionally accredited university that offers over 225 graduate and undergraduate degree programs, emphases and certificates across nine colleges both online and on ground at our over 275 acre campus in Phoenix, Arizona, at leased facilities and at facilities owned by third party employers. Our undergraduate programs are designed to be innovative and to meet the future needs of employers, while providing students with the needed critical thinking and effective communication skills developed through a Christian, liberal arts foundation. We offer master’s and doctoral degrees in contemporary fields that are designed to provide students with the capacity for transformational leadership in their chosen industry, emphasizing the immediate relevance of theory, application, and evaluation to promote personal and organizational change. The University is accredited by the Higher Learning Commission. The University’s wholly owned subsidiaries are primarily used to facilitate expansion of the University campus. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of Grand Canyon Education, Inc. and its wholly owned subsidiaries. Intercompany transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents The University invests a portion of its cash in excess of current operating requirements in short term certificates of deposit and money market instruments. The University considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. Restricted Cash and Cash Equivalents A significant portion of the University’s revenue is received from students who participate in government financial aid assistance programs. Restricted cash and cash equivalents primarily represent amounts received from the federal and state governments under various student aid grant and loan programs, such as Title IV. The University receives these funds subsequent to the completion of the authorization and disbursement process and holds them for the benefit of the student. The U.S. Department of Education (“Department of Education”) requires Title IV funds collected in advance of student billings to be restricted until the course begins. The University records all of these amounts as a current asset in restricted cash and cash equivalents. The majority of these funds remain as restricted for an average of 60 to 90 days from the date of receipt. Investments The University considers its investments in municipal bond, mutual funds, municipal securities and certificates of deposit as available-for-sale Available-for-sale Property and Equipment Property and equipment are recorded at cost less accumulated depreciation. Depreciation is computed using the straight-line method. Normal repairs and maintenance are expensed as incurred. Expenditures that materially extend the useful life of an asset are capitalized. Construction in progress represents items not yet placed in service and are not depreciated. Internally developed software represents qualifying salary and consulting costs for time spent on developing internal use software and is included in construction in progress until its completion. The University capitalizes interest using its interest rates on the specific borrowings used to finance the improvements, which approximated 2.8% in 2017, 2.2% in 2016, and 1.9% in 2015. Interest cost capitalized and incurred in the years ended December 31, 2017, 2016, and 2015 are as follows: Year Ended December 31, 2017 2016 2015 Interest incurred $ 2,656 $ 2,538 $ 1,962 Interest capitalized 487 1,210 714 Interest expense $ 2,169 $ 1,328 $ 1,248 Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Furniture and fixtures, computer equipment, and vehicles generally have estimated useful lives of ten, four, and five years, respectively. Leasehold improvements are depreciated over the shorter of their lease term or their useful life. Land improvements and buildings are depreciated over lives ranging from 10 to 40 years. Leases The University enters into various lease agreements in conducting its business. At the inception of each lease, the University evaluates the lease agreement to determine whether the lease is an operating or capital lease. In addition, many of the lease agreements contain renewal options and tenant improvement allowances. When such items are included in a lease agreement, the University records a deferred liability on the balance sheet and records the rent expense evenly over the term of the lease. Leasehold improvements are included as investing activities and are included as additions to property, plant and equipment. For leases with renewal options, the University records rent expense and amortizes the leasehold improvement on a straight-line basis over the initial non-cancelable Other Assets The University developed our online delivery platform with an affiliated entity and put this platform into full production in 2011. The University has prepaid perpetual license fees and source code rights for the software developed, and has prepaid maintenance and service fees. Included in current other assets is the amount that will be amortized in the next twelve month cycle for maintenance and service fees and included in property and equipment is the amount that will be amortized over fifteen years for the perpetual licenses. Long-Lived Assets The University evaluates the recoverability of its long-lived assets for impairment, other than goodwill, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future net cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Prepaid Royalties In connection with the February 2004 acquisition of the assets of Grand Canyon University from a non-profit Goodwill Goodwill represents the excess of the cost over the fair market value of net assets acquired, including identified intangible assets. Goodwill is tested annually or more frequently if circumstances indicate potential impairment. The Financial Accounting Standards Board (“FASB”) has issued guidance that permits an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step Share-Based Compensation The University measures and recognizes compensation expense for share-based payment awards made to employees and directors. The fair value of the University’s restricted stock awards is based on the market price of its common stock on the date of grant. Stock-based compensation expense related to restricted stock grants is expensed over the vesting period using the straight-line method for University employees and the University’s board of directors. Starting January 1, 2017 with the adoption of the share-based compensation accounting standard, the University made an accounting policy election to account for forfeitures as they occur, prior to 2017 these forfeitures were estimated and reported net of the expense. See Note 2, Accounting Pronouncements Adopted in 2017. Derivatives and Hedging Derivative financial instruments are recorded on the balance sheet as assets or liabilities and re-measured Derivative financial instruments enable the University to manage its exposure to interest rate risk. The University does not engage in any derivative instrument trading activity. Credit risk associated with the University’s derivatives is limited to the risk that a derivative counterparty will not perform in accordance with the terms of the contract. Exposure to counterparty credit risk is considered low because these agreements have been entered into with institutions with Aa or higher credit ratings, and they are expected to perform fully under the terms of the agreements. Fair Value of Financial Instruments The carrying value of cash and cash equivalents, accounts receivable, note receivable, accounts payable, accrued compensation and benefits and accrued liabilities approximate their fair value based on the liquidity or the short-term maturities of these instruments. The carrying value of notes payable approximate fair value based on its variable rate index. The carrying value of notes payable approximate fair value based upon market interest rates available to the University for debt of similar risk and maturities. Derivative financial instruments are carried at fair value, determined using Level 2 of the hierarchy of valuation inputs as defined in the FASB Accounting Standards Codification (“Codification”), with the use of inputs other than quoted prices that are observable for the asset or liability. See Note 8, Derivative Instruments. The fair value of investments, primarily municipal securities, were determined using Level 2 of the hierarchy of valuation inputs, with the use of inputs other than quoted prices that are observable for the assets. The unit of account used for valuation is the individual underlying security. The municipal securities are comprised of city and county bonds related to schools, water and sewer, utilities, transportation, healthcare and housing. Income Taxes The University accounts for income taxes payable or refundable for the current year and deferred tax assets and liabilities for future tax consequences of events that have been recognized in the University’s consolidated financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the temporary differences are expected to be realized. The University applies a more-likely-than-not The University has deferred tax assets, which are subject to periodic recoverability assessments. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. Realization of the deferred tax assets is principally dependent upon achievement of projected future taxable income. Commitments and Contingencies The University accrues for a contingent obligation when it is probable that a liability has been incurred and the amount is reasonably estimable. When the University becomes aware of a claim or potential claim, the likelihood of any loss exposure is assessed. If it is probable that a loss will result and the amount of the loss is estimable, the University records a liability for the estimated loss. If the loss is not probable or the amount of the potential loss is not estimable, the University will disclose the claim if the likelihood of a potential loss is reasonably possible and the amount of the potential loss could be material. Estimates that are particularly sensitive to future changes include tax, legal, and other regulatory matters, which are subject to change as events evolve, and as additional information becomes available during the administrative and litigation process. The University expenses legal fees as incurred. Revenue Recognition Net revenues consist primarily of tuition and fees derived from courses taught by the University online, at its over 275 acre campus in Phoenix, Arizona, and at facilities it leases or those of employers, as well as from related educational resources that the University provides to its students, such as access to online materials. Tuition revenue and most fees from related educational resources are recognized pro-rata pro-rata Allowance for Doubtful Accounts The University records an allowance for doubtful accounts for estimated losses resulting from the inability, failure or refusal of its students to make required payments, which includes the recovery of financial aid funds advanced to a student for amounts in excess of the student’s cost of tuition and related fees. The University determines the adequacy of its allowance for doubtful accounts based on an analysis of its historical bad debt experience, current economic trends, and the aging of the accounts receivable and student status. The University applies reserves to its receivables based upon an estimate of the risk presented by the age of the receivables and student status. The University writes off accounts receivable balances of active students at the earlier of the time the balances were deemed uncollectible, or one year after the revenue is generated. The University accelerates the write off of inactive student accounts such that the accounts are written off by day 150. The University reflects accounts receivable with an offsetting allowance as long as management believes there is a reasonable possibility of collection. Bad debt expense is recorded as an instructional costs and services expense in the consolidated income statement. Instructional Costs and Services Instructional costs and services consist primarily of costs related to the administration and delivery of the University’s educational programs. This expense category includes salaries, benefits and share-based compensation for full-time and adjunct faculty and administrative personnel, information technology costs, bad debt expense, curriculum and new program development costs (which are expensed as incurred) and costs associated with other support groups that provide services directly to the students. This category also includes an allocation of depreciation, amortization, rent, and occupancy costs attributable to the provision of educational services, primarily at the University’s Phoenix, Arizona campus. Admissions Advisory and Related Admissions advisory and related expenses include salaries and benefits for admissions advisory personnel, and revenue share expense as well as an allocation of depreciation, amortization, rent and occupancy costs attributable to the admissions advisory personnel. Advertising Advertising expenses include brand advertising, marketing leads and other branding activities. Advertising costs are expensed as incurred. Marketing and Promotional Marketing and promotional expenses include salaries, benefits and share-based compensation for marketing personnel, and other promotional expenses. This category also includes an allocation of depreciation, amortization, rent, and occupancy costs attributable to marketing and promotional activities. Marketing and promotional costs are expensed as incurred. General and Administrative General and administrative expenses include salaries, and benefits and share-based compensation of employees engaged in corporate management, finance, human resources, compliance, and other corporate functions. General and administrative expenses also include an allocation of depreciation, amortization, rent, and occupancy costs attributable to the departments providing general and administrative functions. Lease termination costs In July 2016, the University notified a current landlord of its intent to vacate leased space by the end of the fourth quarter of 2016. As part of that notification, the University was required to pay a termination fee to its landlord of $3,363 which was recorded as an expense in the third quarter of 2016. As of December 31, 2016, the University had vacated the space, and expensed an additional $160 in the fourth quarter of 2016 related to the remaining amounts due under the lease net of remaining deferred rent. Insurance/Self-Insurance The University uses a combination of insurance and self-insurance for a number of risks, including claims related to employee health care, workers’ compensation, general liability, and business interruption. Liabilities associated with these risks are estimated based on, among other things, historical claims experience, severity factors, and other actuarial assumptions. The University’s loss exposure related to self-insurance is limited by stop loss coverage on a per occurrence and aggregate basis. The University regularly analyzes its reserves for incurred but not reported claims, and for reported but not paid claims related to self-funded insurance programs. While the University believes reserves are adequate, significant judgment is involved in assessing these reserves such as assessing historical paid claims, average lags between the claims’ incurred date, reported dates and paid dates, and the frequency and severity of claims. There may be differences between actual settlement amounts and recorded reserves and any resulting adjustments are included in expense once a probable amount is known. Concentration of Credit Risk The University believes the credit risk related to cash equivalents and investments is limited due to its adherence to an investment policy that required investments to have a minimum BBB rating, depending on the type of security, by one major rating agency at the time of purchase. All of the University’s cash equivalents and investments as of December 31, 2017 and 2016 consist of investments rated BBB or higher by at least one rating agency. Additionally, the University utilizes more than one financial institution to conduct initial and ongoing credit analysis on its investment portfolio to monitor and lower the potential impact of market risk associated with its cash equivalents and investment portfolio. A majority of the University’s revenues are derived from tuition financed under the Title IV programs of the Higher Education Act of 1965, as amended (the “Higher Education Act”). The financial aid and assistance programs are subject to political and budgetary considerations and are subject to extensive and complex regulations. The University’s administration of these programs is periodically reviewed by various regulatory agencies. Any regulatory violation could be the basis for the initiation of potentially adverse actions including a suspension, limitation, or termination proceeding, which could have a material adverse effect on the University. Students obtain access to federal student financial aid through a Department of Education prescribed application and eligibility certification process. Student financial aid funds are generally made available to students at prescribed intervals throughout their predetermined expected length of study. Students typically apply the funds received from the federal financial aid programs first to pay their tuition and fees. Any remaining funds are distributed directly to the student. Segment Information The University operates as a single educational delivery operation using a core infrastructure that serves the curriculum and educational delivery needs of both its ground and online students regardless of geography. The University’s Chief Executive Officer manages the University’s operations as a whole and no expense or operating income information is generated or evaluated on any component level. Accounting Pronouncements Adopted in 2017 In March 2016, the FASB issued “Compensation – Stock Compensation: Improvement to Employee Share-Based Payment Accounting,” to simplify certain aspects of the accounting for share-based payment transactions to employees. The new standard requires excess tax benefits and tax deficiencies to be recorded in the consolidated statements of income as a component of the provision for income taxes when stock awards vest or options are exercised. In addition, it eliminates the requirement to reclassify cash flows related to excess tax benefits from operating activities to financing activities on the consolidated statements of cash flows. The standard also provides an accounting policy election to account for forfeitures as they occur, allows us to withhold more of an employee’s vesting shares for tax withholding purposes without triggering liability accounting, and clarifies that all cash payments made to tax authorities on an employee’s behalf for withheld shares should be presented as a financing activity on our consolidated cash flows statement. The University adopted the new guidance in the first quarter of 2017 which required us to reflect any adjustments as of January 1, 2017. Upon adoption, excess tax benefits or deficiencies from share-based awards or options are now reflected in the consolidated statement of income as a component of the provision for income taxes, whereas previously they were recognized in equity. The University elected to account for forfeitures as they occur, rather than estimate expected forfeitures. The net cumulative effect of this change increased additional paid-in The University adopted the provisions of the standard impacting the cash flow presentation retrospectively, and accordingly, to conform to the current period presentation, we reclassified $9,928 and $3,636 of excess tax benefits which had been included as a financing activity to an operating activity for the years ended December 31, 2016 and 2015, respectively, in our consolidated statement of cash flows. The presentation requirement for cash flows related to employee taxes paid for withheld shares had no impact on our consolidated statement of cash flows since such cash flows have historically been presented as a financing activity. Adoption of the provision of the new standard related to income taxes was adopted prospectively and resulted in a reduction to our provision for income taxes of $16,511 for the year ended December 31, 2017, due to the recognition of excess tax benefits from restricted stock awards that vested or stock options that were exercised in 2017. Our restricted stock awards vest in March each year so the excess tax benefits and deficiencies is greatest in the first quarter each year. The inclusion of excess tax benefits and deficiencies as a component of our income tax expense will increase volatility within our provision for income taxes as the amount of excess tax benefits or deficiencies from share-based compensation awards are dependent on our stock price at the date the restricted awards vest, our stock price on the date an option is exercised, and the quantity of options exercised. In August 2016, the FASB issued a new standard that clarifies how certain cash receipts and cash payments are presented and classified in the consolidated statement of cash flows. The University elected to early adopt this guidance in the first quarter of 2017 on a retrospective basis. There was no reclassification impact of the adoption on our consolidated statement of cash flows for the years ended December 31, 2017, 2016 and 2015, as our historical statements have been presented in accordance with this new guidance. In November 2016, the FASB issued a new standard that requires restricted cash and cash equivalents to be included with the amount of cash and cash equivalents that are reconciled on the consolidated statement of cash flows. The University elected to early adopt this guidance in the first quarter of 2017 on a retrospective basis, and accordingly, to conform to the current period presentation, we reclassified our restricted cash and cash equivalents to be included in the total of cash and cash equivalents presented at the bottom of our consolidated statement of cash flows for both the beginning and ending periods for our years ended December 31, 2017, 2016 and 2015. As a result, the amount of the change in our net cash provided by operating activities no longer includes the impact of the change in restricted cash and cash equivalents for either period. The following table summarizes the effects related to the adoption of both accounting standards (share-based compensation and restricted cash and cash equivalents) for the years ended December 31, 2016 and 2015: Consolidated Statement of Cash Flows Data: December 31, 2016 December 31, 2015 As As As As Net cash provided by operating activities $ 218,286 $ 237,761 $ 173,900 $ 185,080 Net cash provided by (used in) financing activities $ 20,655 $ 10,727 $ (15,221 ) $ (18,857 ) Net increase (decrease) in cash and cash equivalents and restricted cash $ 22,940 $ 32,487 $ (42,202 ) $ (34,658 ) Cash and cash equivalents and restricted cash, beginning of period $ 23,036 $ 98,420 $ 65,238 $ 133,078 Cash and cash equivalents and restricted cash, end of period $ 45,976 $ 130,907 $ 23,036 $ 98,420 Recent Accounting Pronouncements In May 2014, the FASB issued “ Revenue from Contracts with Customers one-year pro-rata In January 2016, the FASB issued “ Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued “ Leases right-of-use In June 2016, the FASB issued “ Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments The University has determined that no other recent accounting pronouncements apply to its operations or could otherwise have a material impact on its consolidated financial statements. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 3. Investments The following is a summary of investments as of December 31, 2017 and 2016. The University considers all investments as available for sale. As of December 31, 2017 Adjusted Gross Gross Estimated Municipal securities $ 84,768 $ — $ (409 ) $ 84,359 Certificates of Deposit $ 4,915 $ — $ (3 ) $ 4,912 Total investments $ 89,683 $ — $ (412 ) $ 89,271 As of December 31, 2016 Adjusted Gross Gross Estimated Municipal securities $ 62,769 $ 12 $ (185 ) $ 62,596 The cash flows of municipal securities are backed by the issuing municipality’s credit worthiness. All municipal securities and certificates of deposit are due in one year or less as of December 31, 2017. For the years ended December 31, 2017 and 2016, the net unrealized losses on available-for-sale |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | 4. Valuation and Qualifying Accounts Balance at Charged to Deductions (1) Balance at Allowance for doubtful accounts receivable: Year ended December 31, 2017 $ 5,918 18,478 (18,489 ) $ 5,907 Year ended December 31, 2016 $ 5,137 18,639 (17,858 ) $ 5,918 Year ended December 31, 2015 $ 6,472 16,620 (17,955 ) $ 5,137 (1) Deductions represent accounts written off, net of recoveries. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment Property and equipment consist of the following: As of December 31, 2017 2016 Land $ 160,126 $ 127,769 Land improvements 25,630 23,158 Buildings 595,384 559,791 Building and leasehold improvements 117,460 105,168 Equipment under capital leases 5,937 5,943 Computer equipment 116,477 108,551 Furniture, fixtures and equipment 63,470 59,300 Internally developed software 36,173 30,407 Other 1,176 1,176 Construction in progress 32,390 19,112 1,154,223 1,040,375 Less accumulated depreciation and amortization (231,939 ) (184,847 ) Property and equipment, net $ 922,284 $ 855,528 Depreciation and amortization expense associated with property and equipment, including assets under capital lease, totaled $53,607, $44,829, and $34,821 for the years ended December 31, 2017, 2016, and 2015, respectively. |
Notes Payable and Other Noncurr
Notes Payable and Other Noncurrent Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Notes Payable and Other Noncurrent Liabilities | 6. Notes Payable and Other Noncurrent Liabilities In 2012, we entered into a new credit agreement, which increased our term loan to $100,000 with a maturity date of December 2019. Additionally, this facility, as amended in January 2016, provided a revolving line of credit in the amount of $150,000 through December 2017 to be utilized for working capital, capital expenditures, share repurchases and other general corporate purposes. The amendment to this facility increased the revolving line of credit from $50,000 to $150,000. Indebtedness under the credit facility is secured by our assets and is guaranteed by certain of our subsidiaries. The Agreement contains standard covenants that, among other things, restrict the University’s ability to incur additional debt or make certain investments, require the University to maintain compliance with certain applicable regulatory standards, and require the University to achieve certain financial ratios and maintain certain financial condition. As of December 31, 2017, the University is in compliance with its debt covenants. No amounts were drawn on the revolver as of December 31, 2017 and it expired. As of December 31, 2017 2016 Notes Payable Note payable, monthly payment of $556; interest at 30 day LIBOR plus 1.75% (3.11% at December 31, 2017) through December 31, 2019 $ 66,477 $ 73,001 Revolving line of credit; interest at 30 day LIBOR plus 1.75% (2.3% at December 31, 2016) — 25,000 Annuities; quarterly payments of $34; extending through 2019; interest at 10% 139 251 66,616 98,252 Less: Current portion 6,691 31,636 $ 59,925 $ 66,616 Payments due under the notes payable obligations are as follows as of December 31, 2017: 2018 $ 6,691 2019 59,925 $ 66,616 Long-term deferred rent included in other noncurrent liabilities as of December 31, 2017 and 2016 was $460 and $729, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Leases The University leases certain land, buildings and equipment under non-cancelable 2018 $ 1,072 2019 422 2020 412 2021 425 2022 35 Thereafter — Total minimum payments $ 2,366 Total rent expense and related taxes and operating expenses under operating leases for the years ended December 31, 2017, 2016 and 2015 was $1,545, $6,694, and $7,759, respectively. Legal Matters From time to time, the University is party to various lawsuits, claims, and other legal proceedings that arise in the ordinary course of business, some of which are covered by insurance. When the University is aware of a claim or potential claim, it assesses the likelihood of any loss or exposure. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, the University records a liability for the loss. If the loss is not probable or the amount of the loss cannot be reasonably estimated, the University discloses the nature of the specific claim if the likelihood of a potential loss is reasonably possible and the amount involved is material. With respect to the majority of pending litigation matters, the University’s ultimate legal and financial responsibility, if any, cannot be estimated with certainty and, in most cases, any potential losses related to those matters are not considered probable. Upon resolution of any pending legal matters, the University may incur charges in excess of presently established reserves. Management does not believe that any such charges would, individually or in the aggregate, have a material adverse effect on the University’s financial condition, results of operations or cash flows. Tax Reserves, Non-Income From time to time the University has exposure to various non-income |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 8. Derivative Instruments On February 27, 2013, the University entered into an interest rate corridor to manage its 30 Day LIBOR interest exposure related to its variable rate debt. This instrument did not contain financing elements. The contractual terms of the University’s derivative instrument have not been structured such that net payments made by one party in the earlier periods are to be subsequently returned by the counterparty in later periods of the derivative’s term. The University’s derivative instrument has not been amended or modified since inception. The fair value of the interest rate corridor instrument as of December 31, 2017 and 2016 was $509 and $490, respectively, which is included in other assets. The fair value of the derivative instrument was determined using a hypothetical derivative transaction and Level 2 of the hierarchy of valuation inputs. This derivative instrument was originally designated as a cash flow hedge of variable rate debt obligations. The adjustments of $17, $245, and $602 for the years ended December 31, 2017, 2016 and 2015, respectively, for the effective portion of the gain/loss on the derivative is included as a component of other comprehensive income, net of taxes. The interest rate corridor instrument reduces variable interest rate risk starting March 1, 2013 through December 20, 2019 with a notional amount of $66,667 as of December 31, 2017. The corridor instrument’s terms permit the University to hedge its interest rate risk at several thresholds; the University pays variable interest monthly based on the 30-day 30-day 30-day 30-day As of December 31, 2017 no derivative ineffectiveness was identified. Any ineffectiveness in the University’s derivative instrument designated as a hedge would be reported in interest expense in the income statement. At December 31, 2017, the University does not expect to reclassify any gains or losses on derivative instruments from accumulated other comprehensive income (loss) into earnings during the next 12 months. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 9. Earnings Per Share Basic earnings per common 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 common share reflects the assumed conversion of all potentially dilutive securities, consisting of stock options and restricted stock awards, for which the estimated fair value exceeds the exercise price, less shares which could have been purchased with the related proceeds, unless anti-dilutive. For employee equity awards, repurchased shares are also included for any unearned compensation adjusted for tax. The table below reflects the calculation of the weighted average number of common shares outstanding, on an as if converted basis, used in computing basic and diluted earnings per common share. Year Ended December 31, 2017 2016 2015 Denominator: Basic weighted average shares outstanding 47,140 46,083 45,975 Effect of dilutive stock options and restricted stock 1,095 1,038 1,306 Diluted weighted average shares outstanding 48,235 47,121 47,281 Diluted weighted average shares outstanding excludes the incremental effect of unvested restricted stock and shares that would be issued upon the assumed exercise of stock options in accordance with the treasury stock method. For each of the years ended December 31, 2017, 2016 and 2015, approximately 2, 344 and 385, respectively, of the University’s stock options and restricted stock awards outstanding were excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive. These options and restricted stock awards could be dilutive in the future. |
Equity Transactions
Equity Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Equity Transactions | 10. Equity Transactions Preferred Stock As of December 31, 2017 and 2016, the University had 10,000 shares of authorized but unissued and undesignated preferred stock. The University’s charter provides that the board of directors has authority to issue preferred stock, with voting powers, designations, preferences, and special rights, qualifications, limitation, or restrictions as permitted by law as determined by the board of directors, without stockholder approval. The board of directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of the common stock. Treasury Stock The Board of Directors has authorized the University to repurchase up to $175,000 in aggregate of common stock, from time to time, depending on market conditions and other considerations. The expiration date on the repurchase authorization has been extended to December 31, 2018. Repurchases occur at the University’s discretion. Repurchases may be made in the open market or in privately negotiated transactions, pursuant to the applicable Securities and Exchange Commission rules. The amount and timing of future share repurchases, if any, will be made as market and business conditions warrant. Since its approval of the share repurchase plan, the University has purchased 3,509 shares of common stock at an aggregate cost of $77,292, which are recorded at cost in the accompanying December 31, 2017 consolidated balance sheet and statement of stockholders’ equity. During the year ended December 31, 2017 the University repurchased 17 shares of common stock at an aggregate costs of $1,510. At December 31, 2017, there remained $97,708 available under its current share repurchase authorization. Shares repurchase in lieu of taxes are not included in the repurchase plan totals as they were approved in conjunction with the restricted share awards. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The University has deferred tax assets and liabilities that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets are subject to periodic recoverability assessments. Realization of the deferred tax assets, net of deferred tax liabilities is principally dependent upon achievement of projected future taxable income. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more-likely-than-not On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was signed into law. For businesses, the Act reduces the corporate federal tax rate from a maximum of 35% to a flat 21% rate. The rate reduction took effect on January 1, 2018. The University has concluded that the Act will cause the University’s deferred tax assets and liabilities to be revalued. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted though income tax expense. The University’s net deferred tax liability was revalued as of December 22, 2017. The University recorded a $10.7 million income tax benefit related to the revaluation of its net deferred tax liabilities. Excluding this income tax benefit in 2017, our effective tax rate would have been 32.1%. Due to the enactment date and complexities of the new tax law, the regulations may have not been fully interpreted by the federal and state taxing authorities, thus there may be additional impacts to the tax provision that may not have been included herein. The components of income tax expense (benefit) are as follows: Year Ended December 31, 2017 2016 2015 Current: Federal $ 76,966 $ 64,006 $ 63,481 State 8,589 4,831 5,222 85,555 68,837 68,703 Deferred: Federal (6,189 ) 7,961 4,473 State 843 891 557 (5,346 ) 8,852 5,030 Tax expense recorded as an increase of paid-in — 9,921 3,863 $ 80,209 $ 87,610 $ 77,596 A reconciliation of income tax computed at the U.S. statutory rate to the effective income tax rate is as follows: Year Ended December 31, 2017 2016 2015 Statutory U.S. federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 3.2 3.2 3.3 State tax credits, net of federal effect (0.7 ) (1.5 ) (1.2 ) Excess tax benefits (5.8 ) 0.0 0.0 Deferred tax revaluation (Federal Rate change) (3.7 ) 0.0 0.0 Nondeductible expenses 0.0 0.2 0.1 Other 0.3 0.2 (0.1 ) Effective income tax rate 28.3 % 37.1 % 37.1 % Significant components of the University’s deferred income tax assets and liabilities, included in Deferred income taxes, non-current As of December 31, 2017 2016 Deferred tax assets: Allowance for doubtful accounts $ 1,685 $ 2,362 Share-based compensation 4,201 7,681 Deferred tuition revenue 1,294 1,539 Deferred scholarship 618 1,198 Deferred rent 54 122 Intangibles 590 1,048 State taxes 985 1,228 Other 1,422 2,731 Deferred tax assets 10,849 17,909 Deferred tax liability: Property and equipment (28,028 ) (40,358 ) Other (1,183 ) (1,259 ) Deferred tax liability (29,211 ) (41,617 ) Net deferred tax liability $ (18,362 ) $ (23,708 ) The net deferred tax liability on the accompanying consolidated balance sheet is comprised of the following: As of December 31, 2017 2016 Deferred income taxes, current $ 5,214 $ 7,814 Deferred income taxes, non-current (23,576 ) (31,522 ) Net deferred tax liability $ (18,362 ) $ (23,708 ) The University recognizes the impact of a tax position in its financial statements if that position is more-likely-than-not The University is subject to taxation in the United States, in states with an income tax and in several local jurisdictions. The University is currently under audit by various state taxing authorities. The University does not anticipate any material adjustments as a result of these audits. As of December 31, 2017, the earliest tax year still subject to examination for federal and state purposes is 2014 and 2013, respectively. |
Regulatory
Regulatory | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Regulatory | 12. Regulatory The University 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 Department of Education, subject the University to significant regulatory scrutiny on the basis of numerous standards that schools must satisfy in order to participate in the various federal student financial assistance programs under Title IV of the Higher Education Act. To participate in the Title IV programs, an institution must be authorized to offer its programs of instruction by the relevant agency of the state in which it is located, accredited by an accrediting agency recognized by the Department of Education and certified as eligible by the Department of Education. The Department of Education will certify an institution to participate in the Title IV programs only after the institution has demonstrated compliance with the Higher Education Act and the Department of Education’s extensive regulations regarding institutional eligibility. An institution must also demonstrate its compliance to the Department of Education on an ongoing basis. The University’s accreditation has been reaffirmed by the Higher Learning Commission (“HLC”) after a comprehensive review of the institution’s academic offerings, governance and administration, mission, finances and resources during 2016. The accreditation was reaffirmed by the HLC’s Institutional Actions council at its meeting on February 28, 2017 with no requirements for any monitoring or interim reports. The comprehensive review occurs every 10 years, along with a mid-term Because the University operates in a highly regulated industry, it, like other industry participants, may be subject from time to time to investigations, claims of non-compliance, 90/10 Disclosure The University derives a substantial portion of its revenues from student financial aid received by its students under the Title IV programs administered by the Department of Education pursuant to the Higher Education Act. To continue to participate in the student financial aid programs the University must comply with the regulations promulgated under the Higher Education Act. The regulations restrict the proportion of cash receipts for tuition and fees from eligible programs to not more than 90 percent from Title IV programs (the “90/10 revenue test”). If an institution fails to satisfy the test for one year, its participation status becomes provisional for two consecutive fiscal years. If the test is not satisfied for two consecutive years, eligibility to participate in Title IV programs is lost for at least two fiscal years. Using the Department of Education’s cash-basis, regulatory formula under the 90/10 Rule as currently in effect, for its 2017, 2016, and 2015 fiscal years, the University derived 71.5%, 72.3%, and 74.8%, respectively, for its 90/10 revenue from Title IV program funds. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Plans | 13. Share-Based Compensation Plans Incentive Plans Prior to June 2017, the University made grants of restricted stock and stock options under its 2008 Equity Incentive Plan (the “2008 Plan”). In January 2017, the Board of Directors of the University approved, and at the University’s 2017 annual meeting of stockholders held on June 14, 2017, the University’s stockholders adopted a 2017 Equity Incentive Plan (the “2017 Plan”) under which a maximum of 3 million shares may be granted. All future grants of equity incentives will be made from the 2017 Plan. Restricted Stock During fiscal year 2017, 2016, and 2015, the University granted 188, 264, and 315 shares of common stock under the 2008 Plan, respectively, with a service vesting condition to certain of its executives, officers, faculty and employees. The restricted shares have voting rights and vest evenly at 20% over each of the next five years. Upon vesting, shares will be held in lieu of taxes equivalent to the statutory tax withholding required to be paid when the restricted stock vests. During the years ended December 31, 2017, 2016 and 2015, the University withheld 151, 114, and 94 shares of common stock in lieu of taxes at a cost of $9,790, $4,695, and $4,283, on the restricted stock vesting dates, respectively. In June 2017, following the annual stockholders meeting, the University granted 4 shares of common stock under the 2017 Plan to the non-employee non-employee A summary of the activity related to restricted stock granted under the University’s Incentive Plan is as follows: Total Weighted Outstanding as of December 31, 2014 1,033 $ 28.75 Granted 324 $ 45.66 Vested (274 ) $ 27.18 Forfeited, canceled or expired (27 ) $ 30.27 Outstanding as of December 31, 2015 1,056 $ 34.30 Granted 275 $ 44.46 Vested (329 ) $ 30.56 Forfeited, canceled or expired (9 ) $ 37.94 Outstanding as of December 31, 2016 993 $ 38.32 Granted 192 $ 70.44 Vested (375 ) $ 32.46 Forfeited, canceled or expired (34 ) $ 44.51 Outstanding as of December 31, 2017 776 $ 49.16 As of December 31, 2017, there was approximately $27,221 of total unrecognized share-based compensation cost related to unvested restricted stock awards. These costs are expected to be recognized over a weighted average period of 2.0 years. Stock Options No options were granted in 2017, 2016 and 2015. Prior to 2012, the University granted time vested options to purchase shares of common stock with an exercise price equal to the fair market value on the date of grant to employees. These time vested options vest ratably over a period of five years and expire ten years from the date of grant. A summary of the activity related to stock options granted under the University’s Incentive Plan is as follows: Summary of Stock Options Outstanding Total Weighted Weighted Aggregate (1) Outstanding as of December 31, 2014 2,452 $ 14.83 Granted — $ — Exercised (218 ) $ 15.97 Forfeited, canceled or expired (14 ) $ 16.08 Outstanding as of December 31, 2015 2,220 $ 14.71 Granted — $ — Exercised (946 ) $ 13.97 Forfeited, canceled or expired (2 ) $ 19.23 Outstanding as of December 31, 2016 1,272 $ 15.26 Granted — $ — Exercised (576 ) $ 12.79 Forfeited, canceled or expired (2 ) $ 16.35 Outstanding as of December 31, 2017 694 $ 17.31 2.71 $ 50,114 Exercisable as of December 31, 2017 694 $ 17.31 2.71 $ 50,114 (1) Aggregate intrinsic value represents the value of the University’s closing stock price on December 29, 2017 ($89.53) in excess of the exercise price multiplied by the number of options outstanding or exercisable. Share-based Compensation Share-based Compensation Expense Assumptions – Restricted Stock Awards The University measures and recognizes compensation expense for share-based payment awards made to employees and directors. The fair value of the University’s restricted stock awards is based on the market price of its common stock on the date of grant. Stock-based compensation expense related to restricted stock grants is expensed over the vesting period using the straight-line method for University employees and the University’s board of directors. Starting January 1, 2017 with the adoption of the share-based compensation accounting standard, the University made an accounting policy election to account for forfeitures as they occur, prior to 2017 these forfeitures were estimated and reported net of the expense. The restricted shares have voting rights. The table below outlines share-based compensation expense for the fiscal years ended December 31, 2017, 2016 and 2015 related to restricted stock and stock options granted: 2017 2016 2015 Instructional costs and services $ 7,874 $ 7,398 $ 6,779 Admissions advisory and related 198 232 192 Marketing and promotional 169 125 130 General and administrative 4,447 4,521 4,156 Share-based compensation expense included in operating expenses 12,688 12,276 11,257 Tax effect of share-based compensation (5,075 ) (4,910 ) (4,503 ) Share-based compensation expense, net of tax $ 7,613 $ 7,366 $ 6,754 401(k) Plan The University has established a 401(k) Defined Contribution Benefit Plan (the “Plan”). The Plan provides eligible employees, upon date of hire, with an opportunity to make tax-deferred |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 14. Related Party Transactions Related party transactions include transactions between the University and certain of its affiliates. The following transactions were in the normal course of operations and were measured at the exchange amount, which is the amount of consideration established and agreed to by the parties. As of and for the years ended December 31, 2017, 2016, and 2015, related party transactions consisted of the following: Affiliates GCU Community Fund (“GCUCF”) — |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | 15. Quarterly Results of Operations (Unaudited) The following table summarizes the unaudited quarterly results of operations for 2017 and 2016 and should be read in conjunction with other information included in the accompanying consolidated financial statements. 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Net revenue $ 248,206 $ 218,301 $ 236,209 $ 271,418 Costs and expenses: Instructional costs and services 102,574 95,030 104,303 108,933 Admissions advisory and related 31,972 31,085 31,426 34,061 Advertising 24,631 24,776 25,523 23,678 Marketing and promotional 2,460 2,264 2,350 2,555 General and administrative 9,941 10,058 12,915 10,845 Total costs and expenses 171,578 163,213 176,517 180,072 Operating income 76,628 55,088 59,692 91,346 Interest expense (580 ) (495 ) (567 ) (527 ) Interest income and other 2 739 1,445 757 Income before income taxes 76,050 55,332 60,570 91,576 Income tax expense 20,138 15,485 21,266 23,320 Net income $ 55,912 $ 39,847 $ 39,304 $ 68,256 Earnings per share: Basic income per share (1) $ 1.20 $ 0.85 $ 0.83 $ 1.44 Diluted income per share (1) $ 1.16 $ 0.83 $ 0.81 $ 1.41 Basic weighted average shares outstanding 46,748 47,151 47,316 47,342 Diluted weighted average shares outstanding 48,070 48,192 48,292 48,382 (1) The sum of quarterly income per share may not equal annual income per share due to rounding. 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Net revenue $ 226,958 $ 191,279 $ 210,444 $ 244,663 Costs and expenses: Instructional costs and services 94,654 84,599 91,748 102,100 Admissions advisory and related 29,544 28,866 28,814 32,062 Advertising 21,107 22,149 23,896 21,000 Marketing and promotional 2,242 2,108 2,127 2,383 General and administrative 10,720 8,809 13,430 10,260 Lease termination costs — — 3,363 160 Total costs and expenses 158,267 146,531 163,378 167,965 Operating income 68,691 44,748 47,066 76,698 Interest expense (329 ) (158 ) (344 ) (497 ) Interest income and other 2,048 293 (2,291 ) 199 Income before income taxes 70,410 44,883 44,431 76,400 Income tax expense 26,745 17,257 15,187 28,421 Net income $ 43,665 $ 27,626 $ 29,244 $ 47,979 Earnings per share: Basic income per share (1) $ 0.96 $ 0.60 $ 0.63 $ 1.03 Diluted income per share (1) $ 0.93 $ 0.59 $ 0.62 $ 1.01 Basic weighted average shares outstanding 45,622 46,004 46,231 46,470 Diluted weighted average shares outstanding 46,860 46,990 47,175 47,452 (1) The sum of quarterly income per share may not equal annual income per share due to rounding. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Grand Canyon Education, Inc. and its wholly owned subsidiaries. Intercompany transactions have been eliminated in consolidation |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The University invests a portion of its cash in excess of current operating requirements in short term certificates of deposit and money market instruments. The University considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents A significant portion of the University’s revenue is received from students who participate in government financial aid assistance programs. Restricted cash and cash equivalents primarily represent amounts received from the federal and state governments under various student aid grant and loan programs, such as Title IV. The University receives these funds subsequent to the completion of the authorization and disbursement process and holds them for the benefit of the student. The U.S. Department of Education (“Department of Education”) requires Title IV funds collected in advance of student billings to be restricted until the course begins. The University records all of these amounts as a current asset in restricted cash and cash equivalents. The majority of these funds remain as restricted for an average of 60 to 90 days from the date of receipt. |
Investments | Investments The University considers its investments in municipal bond, mutual funds, municipal securities and certificates of deposit as available-for-sale Available-for-sale |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost less accumulated depreciation. Depreciation is computed using the straight-line method. Normal repairs and maintenance are expensed as incurred. Expenditures that materially extend the useful life of an asset are capitalized. Construction in progress represents items not yet placed in service and are not depreciated. Internally developed software represents qualifying salary and consulting costs for time spent on developing internal use software and is included in construction in progress until its completion. The University capitalizes interest using its interest rates on the specific borrowings used to finance the improvements, which approximated 2.8% in 2017, 2.2% in 2016, and 1.9% in 2015. Interest cost capitalized and incurred in the years ended December 31, 2017, 2016, and 2015 are as follows: Year Ended December 31, 2017 2016 2015 Interest incurred $ 2,656 $ 2,538 $ 1,962 Interest capitalized 487 1,210 714 Interest expense $ 2,169 $ 1,328 $ 1,248 Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Furniture and fixtures, computer equipment, and vehicles generally have estimated useful lives of ten, four, and five years, respectively. Leasehold improvements are depreciated over the shorter of their lease term or their useful life. Land improvements and buildings are depreciated over lives ranging from 10 to 40 years. |
Leases | Leases The University enters into various lease agreements in conducting its business. At the inception of each lease, the University evaluates the lease agreement to determine whether the lease is an operating or capital lease. In addition, many of the lease agreements contain renewal options and tenant improvement allowances. When such items are included in a lease agreement, the University records a deferred liability on the balance sheet and records the rent expense evenly over the term of the lease. Leasehold improvements are included as investing activities and are included as additions to property, plant and equipment. For leases with renewal options, the University records rent expense and amortizes the leasehold improvement on a straight-line basis over the initial non-cancelable Lease termination costs In July 2016, the University notified a current landlord of its intent to vacate leased space by the end of the fourth quarter of 2016. As part of that notification, the University was required to pay a termination fee to its landlord of $3,363 which was recorded as an expense in the third quarter of 2016. As of December 31, 2016, the University had vacated the space, and expensed an additional $160 in the fourth quarter of 2016 related to the remaining amounts due under the lease net of remaining deferred rent. |
Other Assets | Other Assets The University developed our online delivery platform with an affiliated entity and put this platform into full production in 2011. The University has prepaid perpetual license fees and source code rights for the software developed, and has prepaid maintenance and service fees. Included in current other assets is the amount that will be amortized in the next twelve month cycle for maintenance and service fees and included in property and equipment is the amount that will be amortized over fifteen years for the perpetual licenses. |
Long-Lived Assets | Long-Lived Assets The University evaluates the recoverability of its long-lived assets for impairment, other than goodwill, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future net cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. |
Prepaid Royalties | Prepaid Royalties In connection with the February 2004 acquisition of the assets of Grand Canyon University from a non-profit |
Goodwill | Goodwill Goodwill represents the excess of the cost over the fair market value of net assets acquired, including identified intangible assets. Goodwill is tested annually or more frequently if circumstances indicate potential impairment. The Financial Accounting Standards Board (“FASB”) has issued guidance that permits an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step |
Share-Based Compensation | Share-Based Compensation The University measures and recognizes compensation expense for share-based payment awards made to employees and directors. The fair value of the University’s restricted stock awards is based on the market price of its common stock on the date of grant. Stock-based compensation expense related to restricted stock grants is expensed over the vesting period using the straight-line method for University employees and the University’s board of directors. Starting January 1, 2017 with the adoption of the share-based compensation accounting standard, the University made an accounting policy election to account for forfeitures as they occur, prior to 2017 these forfeitures were estimated and reported net of the expense. See Note 2, Accounting Pronouncements Adopted in 2017. |
Derivatives and Hedging | Derivatives and Hedging Derivative financial instruments are recorded on the balance sheet as assets or liabilities and re-measured Derivative financial instruments enable the University to manage its exposure to interest rate risk. The University does not engage in any derivative instrument trading activity. Credit risk associated with the University’s derivatives is limited to the risk that a derivative counterparty will not perform in accordance with the terms of the contract. Exposure to counterparty credit risk is considered low because these agreements have been entered into with institutions with Aa or higher credit ratings, and they are expected to perform fully under the terms of the agreements. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying value of cash and cash equivalents, accounts receivable, note receivable, accounts payable, accrued compensation and benefits and accrued liabilities approximate their fair value based on the liquidity or the short-term maturities of these instruments. The carrying value of notes payable approximate fair value based on its variable rate index. The carrying value of notes payable approximate fair value based upon market interest rates available to the University for debt of similar risk and maturities. Derivative financial instruments are carried at fair value, determined using Level 2 of the hierarchy of valuation inputs as defined in the FASB Accounting Standards Codification (“Codification”), with the use of inputs other than quoted prices that are observable for the asset or liability. See Note 8, Derivative Instruments. The fair value of investments, primarily municipal securities, were determined using Level 2 of the hierarchy of valuation inputs, with the use of inputs other than quoted prices that are observable for the assets. The unit of account used for valuation is the individual underlying security. The municipal securities are comprised of city and county bonds related to schools, water and sewer, utilities, transportation, healthcare and housing. |
Income Taxes | Income Taxes The University accounts for income taxes payable or refundable for the current year and deferred tax assets and liabilities for future tax consequences of events that have been recognized in the University’s consolidated financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the temporary differences are expected to be realized. The University applies a more-likely-than-not The University has deferred tax assets, which are subject to periodic recoverability assessments. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. Realization of the deferred tax assets is principally dependent upon achievement of projected future taxable income. |
Commitments and Contingencies | Commitments and Contingencies The University accrues for a contingent obligation when it is probable that a liability has been incurred and the amount is reasonably estimable. When the University becomes aware of a claim or potential claim, the likelihood of any loss exposure is assessed. If it is probable that a loss will result and the amount of the loss is estimable, the University records a liability for the estimated loss. If the loss is not probable or the amount of the potential loss is not estimable, the University will disclose the claim if the likelihood of a potential loss is reasonably possible and the amount of the potential loss could be material. Estimates that are particularly sensitive to future changes include tax, legal, and other regulatory matters, which are subject to change as events evolve, and as additional information becomes available during the administrative and litigation process. The University expenses legal fees as incurred. |
Revenue Recognition | Revenue Recognition Net revenues consist primarily of tuition and fees derived from courses taught by the University online, at its over 275 acre campus in Phoenix, Arizona, and at facilities it leases or those of employers, as well as from related educational resources that the University provides to its students, such as access to online materials. Tuition revenue and most fees from related educational resources are recognized pro-rata pro-rata |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The University records an allowance for doubtful accounts for estimated losses resulting from the inability, failure or refusal of its students to make required payments, which includes the recovery of financial aid funds advanced to a student for amounts in excess of the student’s cost of tuition and related fees. The University determines the adequacy of its allowance for doubtful accounts based on an analysis of its historical bad debt experience, current economic trends, and the aging of the accounts receivable and student status. The University applies reserves to its receivables based upon an estimate of the risk presented by the age of the receivables and student status. The University writes off accounts receivable balances of active students at the earlier of the time the balances were deemed uncollectible, or one year after the revenue is generated. The University accelerates the write off of inactive student accounts such that the accounts are written off by day 150. The University reflects accounts receivable with an offsetting allowance as long as management believes there is a reasonable possibility of collection. Bad debt expense is recorded as an instructional costs and services expense in the consolidated income statement. |
Instructional Costs and Services | Instructional Costs and Services Instructional costs and services consist primarily of costs related to the administration and delivery of the University’s educational programs. This expense category includes salaries, benefits and share-based compensation for full-time and adjunct faculty and administrative personnel, information technology costs, bad debt expense, curriculum and new program development costs (which are expensed as incurred) and costs associated with other support groups that provide services directly to the students. This category also includes an allocation of depreciation, amortization, rent, and occupancy costs attributable to the provision of educational services, primarily at the University’s Phoenix, Arizona campus. |
Admissions Advisory and Related | Admissions Advisory and Related Admissions advisory and related expenses include salaries and benefits for admissions advisory personnel, and revenue share expense as well as an allocation of depreciation, amortization, rent and occupancy costs attributable to the admissions advisory personnel. |
Advertising | Advertising Advertising expenses include brand advertising, marketing leads and other branding activities. Advertising costs are expensed as incurred. |
Marketing and Promotional | Marketing and Promotional Marketing and promotional expenses include salaries, benefits and share-based compensation for marketing personnel, and other promotional expenses. This category also includes an allocation of depreciation, amortization, rent, and occupancy costs attributable to marketing and promotional activities. Marketing and promotional costs are expensed as incurred. |
General and Administrative | General and Administrative General and administrative expenses include salaries, and benefits and share-based compensation of employees engaged in corporate management, finance, human resources, compliance, and other corporate functions. General and administrative expenses also include an allocation of depreciation, amortization, rent, and occupancy costs attributable to the departments providing general and administrative functions. |
Insurance/Self-Insurance | Insurance/Self-Insurance The University uses a combination of insurance and self-insurance for a number of risks, including claims related to employee health care, workers’ compensation, general liability, and business interruption. Liabilities associated with these risks are estimated based on, among other things, historical claims experience, severity factors, and other actuarial assumptions. The University’s loss exposure related to self-insurance is limited by stop loss coverage on a per occurrence and aggregate basis. The University regularly analyzes its reserves for incurred but not reported claims, and for reported but not paid claims related to self-funded insurance programs. While the University believes reserves are adequate, significant judgment is involved in assessing these reserves such as assessing historical paid claims, average lags between the claims’ incurred date, reported dates and paid dates, and the frequency and severity of claims. There may be differences between actual settlement amounts and recorded reserves and any resulting adjustments are included in expense once a probable amount is known. |
Concentration of Credit Risk | Concentration of Credit Risk The University believes the credit risk related to cash equivalents and investments is limited due to its adherence to an investment policy that required investments to have a minimum BBB rating, depending on the type of security, by one major rating agency at the time of purchase. All of the University’s cash equivalents and investments as of December 31, 2017 and 2016 consist of investments rated BBB or higher by at least one rating agency. Additionally, the University utilizes more than one financial institution to conduct initial and ongoing credit analysis on its investment portfolio to monitor and lower the potential impact of market risk associated with its cash equivalents and investment portfolio. A majority of the University’s revenues are derived from tuition financed under the Title IV programs of the Higher Education Act of 1965, as amended (the “Higher Education Act”). The financial aid and assistance programs are subject to political and budgetary considerations and are subject to extensive and complex regulations. The University’s administration of these programs is periodically reviewed by various regulatory agencies. Any regulatory violation could be the basis for the initiation of potentially adverse actions including a suspension, limitation, or termination proceeding, which could have a material adverse effect on the University. Students obtain access to federal student financial aid through a Department of Education prescribed application and eligibility certification process. Student financial aid funds are generally made available to students at prescribed intervals throughout their predetermined expected length of study. Students typically apply the funds received from the federal financial aid programs first to pay their tuition and fees. Any remaining funds are distributed directly to the student. |
Segment Information | Segment Information The University operates as a single educational delivery operation using a core infrastructure that serves the curriculum and educational delivery needs of both its ground and online students regardless of geography. The University’s Chief Executive Officer manages the University’s operations as a whole and no expense or operating income information is generated or evaluated on any component level. |
Accounting Pronouncements Adopted in 2017 | Accounting Pronouncements Adopted in 2017 In March 2016, the FASB issued “Compensation – Stock Compensation: Improvement to Employee Share-Based Payment Accounting,” to simplify certain aspects of the accounting for share-based payment transactions to employees. The new standard requires excess tax benefits and tax deficiencies to be recorded in the consolidated statements of income as a component of the provision for income taxes when stock awards vest or options are exercised. In addition, it eliminates the requirement to reclassify cash flows related to excess tax benefits from operating activities to financing activities on the consolidated statements of cash flows. The standard also provides an accounting policy election to account for forfeitures as they occur, allows us to withhold more of an employee’s vesting shares for tax withholding purposes without triggering liability accounting, and clarifies that all cash payments made to tax authorities on an employee’s behalf for withheld shares should be presented as a financing activity on our consolidated cash flows statement. The University adopted the new guidance in the first quarter of 2017 which required us to reflect any adjustments as of January 1, 2017. Upon adoption, excess tax benefits or deficiencies from share-based awards or options are now reflected in the consolidated statement of income as a component of the provision for income taxes, whereas previously they were recognized in equity. The University elected to account for forfeitures as they occur, rather than estimate expected forfeitures. The net cumulative effect of this change increased additional paid-in The University adopted the provisions of the standard impacting the cash flow presentation retrospectively, and accordingly, to conform to the current period presentation, we reclassified $9,928 and $3,636 of excess tax benefits which had been included as a financing activity to an operating activity for the years ended December 31, 2016 and 2015, respectively, in our consolidated statement of cash flows. The presentation requirement for cash flows related to employee taxes paid for withheld shares had no impact on our consolidated statement of cash flows since such cash flows have historically been presented as a financing activity. Adoption of the provision of the new standard related to income taxes was adopted prospectively and resulted in a reduction to our provision for income taxes of $16,511 for the year ended December 31, 2017, due to the recognition of excess tax benefits from restricted stock awards that vested or stock options that were exercised in 2017. Our restricted stock awards vest in March each year so the excess tax benefits and deficiencies is greatest in the first quarter each year. The inclusion of excess tax benefits and deficiencies as a component of our income tax expense will increase volatility within our provision for income taxes as the amount of excess tax benefits or deficiencies from share-based compensation awards are dependent on our stock price at the date the restricted awards vest, our stock price on the date an option is exercised, and the quantity of options exercised. In August 2016, the FASB issued a new standard that clarifies how certain cash receipts and cash payments are presented and classified in the consolidated statement of cash flows. The University elected to early adopt this guidance in the first quarter of 2017 on a retrospective basis. There was no reclassification impact of the adoption on our consolidated statement of cash flows for the years ended December 31, 2017, 2016 and 2015, as our historical statements have been presented in accordance with this new guidance. In November 2016, the FASB issued a new standard that requires restricted cash and cash equivalents to be included with the amount of cash and cash equivalents that are reconciled on the consolidated statement of cash flows. The University elected to early adopt this guidance in the first quarter of 2017 on a retrospective basis, and accordingly, to conform to the current period presentation, we reclassified our restricted cash and cash equivalents to be included in the total of cash and cash equivalents presented at the bottom of our consolidated statement of cash flows for both the beginning and ending periods for our years ended December 31, 2017, 2016 and 2015. As a result, the amount of the change in our net cash provided by operating activities no longer includes the impact of the change in restricted cash and cash equivalents for either period. The following table summarizes the effects related to the adoption of both accounting standards (share-based compensation and restricted cash and cash equivalents) for the years ended December 31, 2016 and 2015: Consolidated Statement of Cash Flows Data: December 31, 2016 December 31, 2015 As As As As Net cash provided by operating activities $ 218,286 $ 237,761 $ 173,900 $ 185,080 Net cash provided by (used in) financing activities $ 20,655 $ 10,727 $ (15,221 ) $ (18,857 ) Net increase (decrease) in cash and cash equivalents and restricted cash $ 22,940 $ 32,487 $ (42,202 ) $ (34,658 ) Cash and cash equivalents and restricted cash, beginning of period $ 23,036 $ 98,420 $ 65,238 $ 133,078 Cash and cash equivalents and restricted cash, end of period $ 45,976 $ 130,907 $ 23,036 $ 98,420 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued “ Revenue from Contracts with Customers one-year pro-rata In January 2016, the FASB issued “ Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued “ Leases right-of-use In June 2016, the FASB issued “ Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments The University has determined that no other recent accounting pronouncements apply to its operations or could otherwise have a material impact on its consolidated financial statements. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Interest Cost Capitalized and Incurred | Interest cost capitalized and incurred in the years ended December 31, 2017, 2016, and 2015 are as follows: Year Ended December 31, 2017 2016 2015 Interest incurred $ 2,656 $ 2,538 $ 1,962 Interest capitalized 487 1,210 714 Interest expense $ 2,169 $ 1,328 $ 1,248 |
Schedule Related to Adoption of Accounting Standards (Share-Based Compensation and Restricted Cash and Cash Equivalents) | The following table summarizes the effects related to the adoption of both accounting standards (share-based compensation and restricted cash and cash equivalents) for the years ended December 31, 2016 and 2015: Consolidated Statement of Cash Flows Data: December 31, 2016 December 31, 2015 As As As As Net cash provided by operating activities $ 218,286 $ 237,761 $ 173,900 $ 185,080 Net cash provided by (used in) financing activities $ 20,655 $ 10,727 $ (15,221 ) $ (18,857 ) Net increase (decrease) in cash and cash equivalents and restricted cash $ 22,940 $ 32,487 $ (42,202 ) $ (34,658 ) Cash and cash equivalents and restricted cash, beginning of period $ 23,036 $ 98,420 $ 65,238 $ 133,078 Cash and cash equivalents and restricted cash, end of period $ 45,976 $ 130,907 $ 23,036 $ 98,420 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments | The following is a summary of investments as of December 31, 2017 and 2016. The University considers all investments as available for sale. As of December 31, 2017 Adjusted Gross Gross Estimated Municipal securities $ 84,768 $ — $ (409 ) $ 84,359 Certificates of Deposit $ 4,915 $ — $ (3 ) $ 4,912 Total investments $ 89,683 $ — $ (412 ) $ 89,271 As of December 31, 2016 Adjusted Gross Gross Estimated Municipal securities $ 62,769 $ 12 $ (185 ) $ 62,596 |
Valuation and Qualifying Acco27
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | Balance at Charged to Deductions (1) Balance at Allowance for doubtful accounts receivable: Year ended December 31, 2017 $ 5,918 18,478 (18,489 ) $ 5,907 Year ended December 31, 2016 $ 5,137 18,639 (17,858 ) $ 5,918 Year ended December 31, 2015 $ 6,472 16,620 (17,955 ) $ 5,137 (1) Deductions represent accounts written off, net of recoveries. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consist of the following: As of December 31, 2017 2016 Land $ 160,126 $ 127,769 Land improvements 25,630 23,158 Buildings 595,384 559,791 Building and leasehold improvements 117,460 105,168 Equipment under capital leases 5,937 5,943 Computer equipment 116,477 108,551 Furniture, fixtures and equipment 63,470 59,300 Internally developed software 36,173 30,407 Other 1,176 1,176 Construction in progress 32,390 19,112 1,154,223 1,040,375 Less accumulated depreciation and amortization (231,939 ) (184,847 ) Property and equipment, net $ 922,284 $ 855,528 |
Notes Payable and Other Noncu29
Notes Payable and Other Noncurrent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Notes Payable | as of December 31, 2017 and it expired. As of December 31, 2017 2016 Notes Payable Note payable, monthly payment of $556; interest at 30 day LIBOR plus 1.75% (3.11% at December 31, 2017) through December 31, 2019 $ 66,477 $ 73,001 Revolving line of credit; interest at 30 day LIBOR plus 1.75% (2.3% at December 31, 2016) — 25,000 Annuities; quarterly payments of $34; extending through 2019; interest at 10% 139 251 66,616 98,252 Less: Current portion 6,691 31,636 $ 59,925 $ 66,616 |
Payments Due under Notes Payable | Payments due under the notes payable obligations are as follows as of December 31, 2017: 2018 $ 6,691 2019 59,925 $ 66,616 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments under Operating Leases | Future minimum lease payments under operating leases due each year are as follows at December 31, 2017: 2018 $ 1,072 2019 422 2020 412 2021 425 2022 35 Thereafter — Total minimum payments $ 2,366 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Summary of Weighted Average Number of Common Shares Outstanding | The table below reflects the calculation of the weighted average number of common shares outstanding, on an as if converted basis, used in computing basic and diluted earnings per common share. Year Ended December 31, 2017 2016 2015 Denominator: Basic weighted average shares outstanding 47,140 46,083 45,975 Effect of dilutive stock options and restricted stock 1,095 1,038 1,306 Diluted weighted average shares outstanding 48,235 47,121 47,281 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) are as follows: Year Ended December 31, 2017 2016 2015 Current: Federal $ 76,966 $ 64,006 $ 63,481 State 8,589 4,831 5,222 85,555 68,837 68,703 Deferred: Federal (6,189 ) 7,961 4,473 State 843 891 557 (5,346 ) 8,852 5,030 Tax expense recorded as an increase of paid-in — 9,921 3,863 $ 80,209 $ 87,610 $ 77,596 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of income tax computed at the U.S. statutory rate to the effective income tax rate is as follows: Year Ended December 31, 2017 2016 2015 Statutory U.S. federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 3.2 3.2 3.3 State tax credits, net of federal effect (0.7 ) (1.5 ) (1.2 ) Excess tax benefits (5.8 ) 0.0 0.0 Deferred tax revaluation (Federal Rate change) (3.7 ) 0.0 0.0 Nondeductible expenses 0.0 0.2 0.1 Other 0.3 0.2 (0.1 ) Effective income tax rate 28.3 % 37.1 % 37.1 % |
Significant Components of Deferred Income Tax Assets and Liabilities | Significant components of the University’s deferred income tax assets and liabilities, included in Deferred income taxes, non-current As of December 31, 2017 2016 Deferred tax assets: Allowance for doubtful accounts $ 1,685 $ 2,362 Share-based compensation 4,201 7,681 Deferred tuition revenue 1,294 1,539 Deferred scholarship 618 1,198 Deferred rent 54 122 Intangibles 590 1,048 State taxes 985 1,228 Other 1,422 2,731 Deferred tax assets 10,849 17,909 Deferred tax liability: Property and equipment (28,028 ) (40,358 ) Other (1,183 ) (1,259 ) Deferred tax liability (29,211 ) (41,617 ) Net deferred tax liability $ (18,362 ) $ (23,708 ) The net deferred tax liability on the accompanying consolidated balance sheet is comprised of the following: As of December 31, 2017 2016 Deferred income taxes, current $ 5,214 $ 7,814 Deferred income taxes, non-current (23,576 ) (31,522 ) Net deferred tax liability $ (18,362 ) $ (23,708 ) |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Activity Related to Restricted Stock Granted under Incentive Plan | A summary of the activity related to restricted stock granted under the University’s Incentive Plan is as follows: Total Weighted Outstanding as of December 31, 2014 1,033 $ 28.75 Granted 324 $ 45.66 Vested (274 ) $ 27.18 Forfeited, canceled or expired (27 ) $ 30.27 Outstanding as of December 31, 2015 1,056 $ 34.30 Granted 275 $ 44.46 Vested (329 ) $ 30.56 Forfeited, canceled or expired (9 ) $ 37.94 Outstanding as of December 31, 2016 993 $ 38.32 Granted 192 $ 70.44 Vested (375 ) $ 32.46 Forfeited, canceled or expired (34 ) $ 44.51 Outstanding as of December 31, 2017 776 $ 49.16 |
Summary of Activity Related to Stock Options Granted under University's Incentive Plan | A summary of the activity related to stock options granted under the University’s Incentive Plan is as follows: Summary of Stock Options Outstanding Total Weighted Weighted Aggregate (1) Outstanding as of December 31, 2014 2,452 $ 14.83 Granted — $ — Exercised (218 ) $ 15.97 Forfeited, canceled or expired (14 ) $ 16.08 Outstanding as of December 31, 2015 2,220 $ 14.71 Granted — $ — Exercised (946 ) $ 13.97 Forfeited, canceled or expired (2 ) $ 19.23 Outstanding as of December 31, 2016 1,272 $ 15.26 Granted — $ — Exercised (576 ) $ 12.79 Forfeited, canceled or expired (2 ) $ 16.35 Outstanding as of December 31, 2017 694 $ 17.31 2.71 $ 50,114 Exercisable as of December 31, 2017 694 $ 17.31 2.71 $ 50,114 (1) Aggregate intrinsic value represents the value of the University’s closing stock price on December 29, 2017 ($89.53) in excess of the exercise price multiplied by the number of options outstanding or exercisable. |
Share-Based Compensation Expense | The table below outlines share-based compensation expense for the fiscal years ended December 31, 2017, 2016 and 2015 related to restricted stock and stock options granted: 2017 2016 2015 Instructional costs and services $ 7,874 $ 7,398 $ 6,779 Admissions advisory and related 198 232 192 Marketing and promotional 169 125 130 General and administrative 4,447 4,521 4,156 Share-based compensation expense included in operating expenses 12,688 12,276 11,257 Tax effect of share-based compensation (5,075 ) (4,910 ) (4,503 ) Share-based compensation expense, net of tax $ 7,613 $ 7,366 $ 6,754 |
Quarterly Results of Operatio34
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarizes the Unaudited Quarterly Results of Operations | The following table summarizes the unaudited quarterly results of operations for 2017 and 2016 and should be read in conjunction with other information included in the accompanying consolidated financial statements. 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Net revenue $ 248,206 $ 218,301 $ 236,209 $ 271,418 Costs and expenses: Instructional costs and services 102,574 95,030 104,303 108,933 Admissions advisory and related 31,972 31,085 31,426 34,061 Advertising 24,631 24,776 25,523 23,678 Marketing and promotional 2,460 2,264 2,350 2,555 General and administrative 9,941 10,058 12,915 10,845 Total costs and expenses 171,578 163,213 176,517 180,072 Operating income 76,628 55,088 59,692 91,346 Interest expense (580 ) (495 ) (567 ) (527 ) Interest income and other 2 739 1,445 757 Income before income taxes 76,050 55,332 60,570 91,576 Income tax expense 20,138 15,485 21,266 23,320 Net income $ 55,912 $ 39,847 $ 39,304 $ 68,256 Earnings per share: Basic income per share (1) $ 1.20 $ 0.85 $ 0.83 $ 1.44 Diluted income per share (1) $ 1.16 $ 0.83 $ 0.81 $ 1.41 Basic weighted average shares outstanding 46,748 47,151 47,316 47,342 Diluted weighted average shares outstanding 48,070 48,192 48,292 48,382 (1) The sum of quarterly income per share may not equal annual income per share due to rounding. 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Net revenue $ 226,958 $ 191,279 $ 210,444 $ 244,663 Costs and expenses: Instructional costs and services 94,654 84,599 91,748 102,100 Admissions advisory and related 29,544 28,866 28,814 32,062 Advertising 21,107 22,149 23,896 21,000 Marketing and promotional 2,242 2,108 2,127 2,383 General and administrative 10,720 8,809 13,430 10,260 Lease termination costs — — 3,363 160 Total costs and expenses 158,267 146,531 163,378 167,965 Operating income 68,691 44,748 47,066 76,698 Interest expense (329 ) (158 ) (344 ) (497 ) Interest income and other 2,048 293 (2,291 ) 199 Income before income taxes 70,410 44,883 44,431 76,400 Income tax expense 26,745 17,257 15,187 28,421 Net income $ 43,665 $ 27,626 $ 29,244 $ 47,979 Earnings per share: Basic income per share (1) $ 0.96 $ 0.60 $ 0.63 $ 1.03 Diluted income per share (1) $ 0.93 $ 0.59 $ 0.62 $ 1.01 Basic weighted average shares outstanding 45,622 46,004 46,231 46,470 Diluted weighted average shares outstanding 46,860 46,990 47,175 47,452 (1) The sum of quarterly income per share may not equal annual income per share due to rounding. |
Nature of Business - Additional
Nature of Business - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017DegreesColleges | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of area of the company's campus in Phoenix, Arizona | 275 acre campus |
Number of colleges in Phoenix, Arizona | Colleges | 9 |
Number of degree programs and certificates | Degrees | 225 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Apr. 30, 2008 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Average days from the date of receipt in which funds remain as restricted cash and cash equivalents | 60 to 90 days | ||||||
Capitalized interest rate on borrowings to finance improvements | 2.80% | 2.20% | 1.90% | ||||
Property and equipment, useful life | 15 years | ||||||
Amortization of other current assets | Next twelve month | ||||||
Agreement to pay former owner royalty amount | $ 22,500 | ||||||
Settlement of future royalty payment obligation | $ 5,920 | ||||||
Royalty amortization period | 20 years | ||||||
Reserve for uncertain tax positions including interest and penalties | $ 1,981 | $ 2,008 | $ 1,981 | ||||
Description of area of the company's campus in Phoenix, Arizona | 275 acre campus | ||||||
Reduction in revenue due to scholarships offered to students | $ 196,334 | 179,230 | $ 163,893 | ||||
Period for write off of inactive student accounts | 150 days | ||||||
Lease termination costs | $ 160 | $ 3,363 | 3,523 | ||||
Excess tax benefits from financing activities | $ 9,928 | $ 3,636 | |||||
Reduction in provision for income taxes | $ 16,511 | ||||||
Furniture, Fixtures and Equipment [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property and equipment, useful life | 10 years | ||||||
Computer Equipment [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property and equipment, useful life | 4 years | ||||||
Vehicles [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property and equipment, useful life | 5 years | ||||||
Retained Earnings [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Cumulative effect from the adoption of accounting pronouncements, net of taxes | $ (59) | $ (59) | |||||
Additional Paid-in Capital [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Cumulative effect from the adoption of accounting pronouncements, net of taxes | $ 59 | $ 59 | |||||
Minimum [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of days from the date of receipt in which funds remain as restricted cash and cash equivalents | 60 days | ||||||
Minimum [Member] | Land Improvements and Buildings [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property and equipment, useful life | 10 years | ||||||
Maximum [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of days from the date of receipt in which funds remain as restricted cash and cash equivalents | 90 days | ||||||
Maximum [Member] | Land Improvements and Buildings [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property and equipment, useful life | 40 years |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Interest Cost Capitalized and Incurred (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||||||||||
Interest incurred | $ 2,656 | $ 2,538 | $ 1,962 | ||||||||
Interest capitalized | 487 | 1,210 | 714 | ||||||||
Interest expense | $ 527 | $ 567 | $ 495 | $ 580 | $ 497 | $ 344 | $ 158 | $ 329 | $ 2,169 | $ 1,328 | $ 1,248 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Schedule Related to Adoption of Accounting Standards (Share-Based Compensation and Restricted Cash and Cash Equivalents) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | $ 304,898 | $ 237,761 | $ 185,080 |
Net cash provided by (used in) financing activities | (35,733) | 10,727 | (18,857) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 117,101 | 32,487 | (34,658) |
Cash and cash equivalents and restricted cash, beginning of period | 130,907 | 98,420 | 133,078 |
Cash and cash equivalents and restricted cash, end of period | 248,008 | 130,907 | 98,420 |
As Reported [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 218,286 | 173,900 | |
Net cash provided by (used in) financing activities | 20,655 | (15,221) | |
Net increase (decrease) in cash and cash equivalents and restricted cash | 22,940 | (42,202) | |
Cash and cash equivalents and restricted cash, beginning of period | $ 45,976 | 23,036 | 65,238 |
Cash and cash equivalents and restricted cash, end of period | $ 45,976 | $ 23,036 |
Investments - Summary of Invest
Investments - Summary of Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | $ 89,683 | |
Gross Unrealized (Losses) | (412) | |
Estimated Fair Value | 89,271 | |
Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 4,915 | |
Gross Unrealized (Losses) | (3) | |
Estimated Fair Value | 4,912 | |
Municipal Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 84,768 | $ 62,769 |
Gross Unrealized Gains | 12 | |
Gross Unrealized (Losses) | (409) | (185) |
Estimated Fair Value | $ 84,359 | $ 62,596 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized net (losses) gains on available-for-sale securities | $ 255 | $ 430 |
Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity period of investments | One year or less |
Valuation and Qualifying Acco41
Valuation and Qualifying Accounts - Schedule of Valuation and Qualifying Accounts (Detail) - Allowance for Doubtful Accounts Receivable [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 5,918 | $ 5,137 | $ 6,472 |
Charged to Expense | 18,478 | 18,639 | 16,620 |
Deductions | (18,489) | (17,858) | (17,955) |
Balance at End of Year | $ 5,907 | $ 5,918 | $ 5,137 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 1,154,223 | $ 1,040,375 |
Less accumulated depreciation and amortization | (231,939) | (184,847) |
Property and equipment, net | 922,284 | 855,528 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 160,126 | 127,769 |
Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 25,630 | 23,158 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 595,384 | 559,791 |
Buildings and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 117,460 | 105,168 |
Equipment under Capital Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 5,937 | 5,943 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 116,477 | 108,551 |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 63,470 | 59,300 |
Internally Developed Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 36,173 | 30,407 |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 1,176 | 1,176 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 32,390 | $ 19,112 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense including assets under capital lease | $ 53,607 | $ 44,829 | $ 34,821 |
Notes Payable and Other Noncu44
Notes Payable and Other Noncurrent Liabilities - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2012 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |||
Increase in Term Loan | $ 100,000,000 | ||
Revolving line of credit facility, expiration date | Dec. 31, 2017 | Dec. 31, 2019 | |
Amount withdrawn from line of credit | $ 0 | ||
Amount of revolving line of credit | 150,000,000 | $ 50,000,000 | |
Long-term deferred rent | $ 460,000 | $ 729,000 |
Notes Payable and Other Noncu45
Notes Payable and Other Noncurrent Liabilities - Notes Payable (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | ||
Revolving line of credit | $ 0 | |
Notes Payable, Non-current | 59,925,000 | $ 66,616,000 |
Less: Current portion | 6,691,000 | 31,636,000 |
Notes payable | 66,616,000 | 98,252,000 |
Revolving Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving line of credit | 25,000,000 | |
Notes Payable through December 2019 [Member] | ||
Line of Credit Facility [Line Items] | ||
Notes payable | 66,477,000 | 73,001,000 |
Annuities Extending through 2019 [Member] | ||
Line of Credit Facility [Line Items] | ||
Notes payable | $ 139,000 | $ 251,000 |
Notes Payable and Other Noncu46
Notes Payable and Other Noncurrent Liabilities - Notes Payable (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Notes Payable through December 2019 [Member] | ||
Line of Credit Facility [Line Items] | ||
Monthly payment of notes payable | $ 556 | |
Number of days of bank operating rate to calculate interest on notes payable | 30 days | |
Interest rate of notes payable | 3.11% | |
Notes Payable through December 2019 [Member] | LIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate of notes payable | 1.75% | |
Annuities Extending through 2019 [Member] | ||
Line of Credit Facility [Line Items] | ||
Quarterly payment of notes payable | $ 34 | |
Interest rate of notes payable | 10.00% | 10.00% |
Revolving Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Number of days of bank operating rate to calculate interest on notes payable | 30 days | |
Interest rate of notes payable | 2.30% | |
Revolving Line of Credit [Member] | LIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate of notes payable | 1.75% |
Notes Payable and Other Noncu47
Notes Payable and Other Noncurrent Liabilities - Payments Due under Notes Payable (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
2,018 | $ 6,691 | |
2,019 | 59,925 | |
Notes Payable, Total | $ 66,616 | $ 98,252 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Lease Payments under Operating Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 1,072 |
2,019 | 422 |
2,020 | 412 |
2,021 | 425 |
2,022 | 35 |
Thereafter | 0 |
Total minimum payments | $ 2,366 |
Commitments and Contingencies49
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Total rent expense and related taxes and operating expenses, under operating leases | $ 1,545,000 | $ 6,694,000 | $ 7,759,000 |
Tax reserves, non-income tax related | $ 0 | $ 0 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | |||
Period of LIBOR interest rate | 30 days | ||
Effective portion of gain/loss on derivatives included as a component of other comprehensive income, net of taxes | $ 11,000 | $ (151,000) | $ (372,000) |
Other Assets [Member] | |||
Derivative [Line Items] | |||
Fair values of interest rate corridor instrument | 509,000 | 490,000 | |
Interest Rate Corridor [Member] | |||
Derivative [Line Items] | |||
Notional amount of derivative instrument | $ 66,667 | ||
Description of interest rate risk hedge at several thresholds | The University pays variable interest monthly based on the 30-day LIBOR rates until that index reaches 1.5%. If 30-dayLIBOR is equal to 1.5% through 3.0%, the University pays 1.5%. If 30-day LIBOR exceeds 3.0%, the University pays actual 30-day LIBOR less 1.5%. | ||
Interest Rate Corridor [Member] | LIBOR [Member] | |||
Derivative [Line Items] | |||
Maximum percentage of variable interest rates based on LIBOR | 1.50% | ||
Percentage of amount paid by University | 1.50% | ||
Percentage deducted from LIBOR for actual payment | 1.50% | ||
Interest Rate Corridor [Member] | LIBOR [Member] | Minimum [Member] | |||
Derivative [Line Items] | |||
Percentage of LIBOR | 1.50% | ||
Interest Rate Corridor [Member] | LIBOR [Member] | Maximum [Member] | |||
Derivative [Line Items] | |||
Percentage of LIBOR | 3.00% | ||
Cash Flow Hedging [Member] | |||
Derivative [Line Items] | |||
Effective portion of gain/loss on derivatives included as a component of other comprehensive income, net of taxes | $ 17,000 | $ 245,000 | $ 602,000 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Weighted Average Number of Common Shares Outstanding (Detail) - shares shares in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Denominator: | |||||||||||
Basic weighted average shares outstanding | 47,342 | 47,316 | 47,151 | 46,748 | 46,470 | 46,231 | 46,004 | 45,622 | 47,140 | 46,083 | 45,975 |
Effect of dilutive stock options and restricted stock | 1,095 | 1,038 | 1,306 | ||||||||
Diluted weighted average shares outstanding | 48,382 | 48,292 | 48,192 | 48,070 | 47,452 | 47,175 | 46,990 | 46,860 | 48,235 | 47,121 | 47,281 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Option And Restricted Stock Awards [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
University's stock options and restricted stock awards outstanding were excluded from the calculation of diluted earnings | 2 | 344 | 385 |
Equity Transactions - Additiona
Equity Transactions - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stockholders Equity [Line Items] | |||
Preferred stock authorized but unissued and undesignated | 10,000,000 | 10,000,000 | |
Expiration date on repurchase authorizations | Dec. 31, 2018 | ||
Aggregate cost shares of common stock | $ 1,510,000 | $ 15,367,000 | $ 11,279,000 |
Common stock acquired, shares | 17,000 | ||
Maximum [Member] | |||
Stockholders Equity [Line Items] | |||
Authorization amount for repurchase of common stock | $ 175,000,000 | ||
Common Stock [Member] | |||
Stockholders Equity [Line Items] | |||
Cumulative common stock acquired, shares | 3,509,000 | ||
Since Initial Approval of Share Repurchase Plan in 2011 [Member] | |||
Stockholders Equity [Line Items] | |||
Aggregate cost shares of common stock | $ 77,292,000 | ||
Remaining authorized repurchase amount | $ 97,708,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax [Line Items] | ||||
Valuation allowance | $ 0 | $ 0 | ||
Corporate federal tax rate | 35.00% | 35.00% | 35.00% | |
Income tax benefit related to revaluation of net deferred tax liabilities | $ 10,700,000 | |||
Effective tax rate | 28.30% | 37.10% | 37.10% | |
Tax Cuts and Jobs Act [Member] | ||||
Income Tax [Line Items] | ||||
Effective tax rate | 32.10% | |||
Scenario Forecast [Member] | ||||
Income Tax [Line Items] | ||||
Corporate federal tax rate | 21.00% |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||||||||||
Federal | $ 76,966 | $ 64,006 | $ 63,481 | ||||||||
State | 8,589 | 4,831 | 5,222 | ||||||||
Current Income Tax Expense (Benefit), Total | 85,555 | 68,837 | 68,703 | ||||||||
Deferred: | |||||||||||
Federal | (6,189) | 7,961 | 4,473 | ||||||||
State | 843 | 891 | 557 | ||||||||
Deferred Income Tax Expense (Benefit) | (5,346) | 8,852 | 5,030 | ||||||||
Tax expense recorded as an increase of paid-in capital | 9,921 | 3,863 | |||||||||
Income Tax Expense (Benefit), Total | $ 23,320 | $ 21,266 | $ 15,485 | $ 20,138 | $ 28,421 | $ 15,187 | $ 17,257 | $ 26,745 | $ 80,209 | $ 87,610 | $ 77,596 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal tax benefit | 3.20% | 3.20% | 3.30% |
State tax credits, net of federal effect | (0.70%) | (1.50%) | (1.20%) |
Excess tax benefits | (5.80%) | (0.00%) | (0.00%) |
Deferred tax revaluation (Federal Rate change) | (3.70%) | 0.00% | 0.00% |
Nondeductible expenses | 0.00% | 0.20% | 0.10% |
Other | 0.30% | 0.20% | (0.10%) |
Effective income tax rate | 28.30% | 37.10% | 37.10% |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 1,685 | $ 2,362 |
Share-based compensation | 4,201 | 7,681 |
Deferred tuition revenue | 1,294 | 1,539 |
Deferred scholarship | 618 | 1,198 |
Deferred rent | 54 | 122 |
Intangibles | 590 | 1,048 |
State taxes | 985 | 1,228 |
Other | 1,422 | 2,731 |
Deferred tax assets | 10,849 | 17,909 |
Deferred tax liability: | ||
Property and equipment | (28,028) | (40,358) |
Other | (1,183) | (1,259) |
Deferred tax liability | (29,211) | (41,617) |
Net deferred tax liability | $ (18,362) | $ (23,708) |
Income Taxes - Significant Co58
Income Taxes - Significant Components of Deferred Income Tax Assets and Liabilities Classified (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Deferred income taxes, current | $ 5,214 | $ 7,814 |
Deferred income taxes, non-current | (23,576) | (31,522) |
Net deferred tax liability | $ (18,362) | $ (23,708) |
Regulatory - Additional Informa
Regulatory - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Regulated Operations [Abstract] | |||
Comprehensive review period | 10 years | ||
Mid-term report period | 4 years | ||
Revenue from Title IV program funds | 71.50% | 72.30% | 74.80% |
Share-Based Compensation Plan60
Share-Based Compensation Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted | 0 | 0 | 0 | |
Minimum eligible age to participate in the plan | 21 years | |||
University made discretionary matching contributions | $ 2,837 | $ 1,920 | $ 1,769 | |
Maximum [Member] | 2017 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant | 3,000,000 | |||
Restricted Stock Grants [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 192,000 | 275,000 | 324,000 | |
Shares withheld for taxes | 151,000 | 114,000 | 94,000 | |
Common stock in lieu of taxes | $ 9,790 | $ 4,695 | $ 4,283 | |
Unrecognized share-based compensation cost | $ 27,221 | |||
Costs are expected to be recognized over a weighted average period | 2 years | |||
Restricted Stock Grants [Member] | 2008 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 188,000 | 264,000 | 315,000 | |
Vesting period | 5 years | |||
Restricted Stock Grants [Member] | Share-based Compensation Award, Tranche One [Member] | 2008 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting right percentage | 20.00% | |||
Restricted Stock Grants [Member] | Share-based Compensation Award, Tranche Two [Member] | 2008 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting right percentage | 20.00% | |||
Restricted Stock Grants [Member] | Share-based Compensation Award, Tranche Three [Member] | 2008 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting right percentage | 20.00% | |||
Restricted Stock Grants [Member] | Share-based Compensation Award Tranche Four [Member] | 2008 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting right percentage | 20.00% | |||
Restricted Stock Grants [Member] | Share-based Compensation Award Tranche Five [Member] | 2008 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting right percentage | 20.00% | |||
Restricted Stock Grants [Member] | Non-employee [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Restricted Stock Grants [Member] | Non-employee [Member] | 2008 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 11 | 9 | ||
Restricted Stock Grants [Member] | Non-employee [Member] | 2017 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 4,000 | |||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
Expiration period of options | 10 years | |||
Options granted | 0 | 0 | 0 |
Share-Based Compensation Plan61
Share-Based Compensation Plans - Summary of Activity Related to Restricted Stock Granted under Incentive Plan (Detail) - Restricted Stock Grants [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Shares, Outstanding, Beginning Balance | 993 | 1,056 | 1,033 |
Total Shares, Granted | 192 | 275 | 324 |
Total Shares, Vested | (375) | (329) | (274) |
Total Shares, Forfeited, canceled or expired | (34) | (9) | (27) |
Total Shares, Outstanding, Ending Balance | 776 | 993 | 1,056 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ 38.32 | $ 34.30 | $ 28.75 |
Weighted Average Grant Date Fair Value, Granted | 70.44 | 44.46 | 45.66 |
Weighted Average Grant Date Fair Value, Vested | 32.46 | 30.56 | 27.18 |
Weighted Average Grant Date Fair Value, Forfeited, cancelled or expired | 44.51 | 37.94 | 30.27 |
Weighted Average Grant Date Fair Value, Ending Balance | $ 49.16 | $ 38.32 | $ 34.30 |
Share-Based Compensation Plan62
Share-Based Compensation Plans - Summary of Activity Related to Stock Options Granted under University's Incentive Plan (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Shares outstanding, Beginning balance | 1,272,000 | 2,220,000 | 2,452,000 |
Total Shares, Granted | 0 | 0 | 0 |
Total Shares, Exercised | (576,000) | (946,000) | (218,000) |
Total Shares, Forfeited, canceled or expired | (2,000) | (2,000) | (14,000) |
Total Shares outstanding, Ending balance | 694,000 | 1,272,000 | 2,220,000 |
Total Shares, Exercisable | 694,000 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Shares, Granted | 0 | 0 | 0 |
Weighted Average Exercise Price per Share Outstanding, Beginning balance | $ 15.26 | $ 14.71 | $ 14.83 |
Weighted Average Exercise Price per Share, Granted | 0 | 0 | 0 |
Weighted Average Exercise Price per Share, Exercised | 12.79 | 13.97 | 15.97 |
Weighted Average Exercise Price per Share, Forfeited, canceled or expired | 16.35 | 19.23 | 16.08 |
Weighted Average Exercise Price per Share Outstanding, Ending balance | 17.31 | $ 15.26 | $ 14.71 |
Weighted Average Exercise Price per Share, Exercisable | $ 17.31 | ||
Weighted Average Remaining Contractual Term (Years), Outstanding | 2 years 8 months 16 days | ||
Weighted Average Remaining Contractual Term (Years), Exercisable | 2 years 8 months 16 days | ||
Aggregate Intrinsic Value, Outstanding | $ 50,114 | ||
Aggregate Intrinsic Value, Exercisable | $ 50,114 |
Share-Based Compensation Plan63
Share-Based Compensation Plans - Summary of Activity Related to Stock Options Granted under University's Incentive Plan (Parenthetical) (Detail) | Dec. 31, 2017$ / shares |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Value of closing stock price | $ 89.53 |
Share-Based Compensation Plan64
Share-Based Compensation Plans - Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 12,688 | $ 12,276 | $ 11,257 |
Tax effect of share-based compensation | (5,075) | (4,910) | (4,503) |
Share-based compensation expense, net of tax | 7,613 | 7,366 | 6,754 |
Instructional Costs and Services [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 7,874 | 7,398 | 6,779 |
Admissions Advisory and Related [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 198 | 232 | 192 |
Marketing and Promotional [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 169 | 125 | 130 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 4,447 | $ 4,521 | $ 4,156 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
GCUCF [Member] | |
Related Party Transaction [Line Items] | |
Contribution by University | $ 500 |
Quarterly Results of Operatio66
Quarterly Results of Operations (Unaudited) - Summarizes the Unaudited Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||||||||||
Net revenue | $ 271,418 | $ 236,209 | $ 218,301 | $ 248,206 | $ 244,663 | $ 210,444 | $ 191,279 | $ 226,958 | $ 974,134 | $ 873,344 | $ 778,200 |
Costs and expenses: | |||||||||||
Instructional costs and services | 108,933 | 104,303 | 95,030 | 102,574 | 102,100 | 91,748 | 84,599 | 94,654 | 410,840 | 373,101 | 329,651 |
Admissions advisory and related | 34,061 | 31,426 | 31,085 | 31,972 | 32,062 | 28,814 | 28,866 | 29,544 | 128,544 | 119,286 | 112,572 |
Advertising | 23,678 | 25,523 | 24,776 | 24,631 | 21,000 | 23,896 | 22,149 | 21,107 | 98,608 | 88,152 | 76,229 |
Marketing and promotional | 2,555 | 2,350 | 2,264 | 2,460 | 2,383 | 2,127 | 2,108 | 2,242 | 9,629 | 8,860 | 7,287 |
General and administrative | 10,845 | 12,915 | 10,058 | 9,941 | 10,260 | 13,430 | 8,809 | 10,720 | 43,759 | 43,219 | 42,100 |
Lease termination costs | 160 | 3,363 | 3,523 | ||||||||
Total costs and expenses | 180,072 | 176,517 | 163,213 | 171,578 | 167,965 | 163,378 | 146,531 | 158,267 | 691,380 | 636,141 | 567,839 |
Operating income | 91,346 | 59,692 | 55,088 | 76,628 | 76,698 | 47,066 | 44,748 | 68,691 | 282,754 | 237,203 | 210,361 |
Interest expense | (527) | (567) | (495) | (580) | (497) | (344) | (158) | (329) | (2,169) | (1,328) | (1,248) |
Interest income and other | 757 | 1,445 | 739 | 2 | 199 | (2,291) | 293 | 2,048 | 2,943 | 249 | (106) |
Income before income taxes | 91,576 | 60,570 | 55,332 | 76,050 | 76,400 | 44,431 | 44,883 | 70,410 | 283,528 | 236,124 | 209,007 |
Income tax expense | 23,320 | 21,266 | 15,485 | 20,138 | 28,421 | 15,187 | 17,257 | 26,745 | 80,209 | 87,610 | 77,596 |
Net income | $ 68,256 | $ 39,304 | $ 39,847 | $ 55,912 | $ 47,979 | $ 29,244 | $ 27,626 | $ 43,665 | $ 203,319 | $ 148,514 | $ 131,411 |
Earnings per share: | |||||||||||
Basic income per share | $ 1.44 | $ 0.83 | $ 0.85 | $ 1.20 | $ 1.03 | $ 0.63 | $ 0.60 | $ 0.96 | $ 4.31 | $ 3.22 | $ 2.86 |
Diluted income per share | $ 1.41 | $ 0.81 | $ 0.83 | $ 1.16 | $ 1.01 | $ 0.62 | $ 0.59 | $ 0.93 | $ 4.22 | $ 3.15 | $ 2.78 |
Basic weighted average shares outstanding | 47,342 | 47,316 | 47,151 | 46,748 | 46,470 | 46,231 | 46,004 | 45,622 | 47,140 | 46,083 | 45,975 |
Diluted weighted average shares outstanding | 48,382 | 48,292 | 48,192 | 48,070 | 47,452 | 47,175 | 46,990 | 46,860 | 48,235 | 47,121 | 47,281 |