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LOPE Grand Canyon Education

Document and Entity Information

Document and Entity Information - shares3 Months Ended
Mar. 31, 2021May 03, 2021
Document And Entity Information [Abstract]
Document Type10-Q
Document Quarterly Reporttrue
Document Transition Reportfalse
Document Period End DateMar. 31,
2021
Entity File Number001-34211
Entity Registrant NameGRAND CANYON EDUCATION, INC.
Entity Incorporation, State or Country CodeDE
Entity Tax Identification Number20-3356009
Entity Address, Address Line One2600 W. Camelback Road
Entity Address, City or TownPhoenix
Entity Address, State or ProvinceAZ
Entity Address, Postal Zip Code85017
City Area Code602
Local Phone Number247-4400
Title of 12(b) SecurityCommon Stock
Trading SymbolLOPE
Security Exchange NameNASDAQ
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryLarge Accelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding46,344,811
Current Fiscal Year End Date--12-31
Document Fiscal Year Focus2021
Document Fiscal Period FocusQ1
Entity Central Index Key0001434588
Amendment Flagfalse

Consolidated Income Statements

Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Consolidated Income Statements
Service revenue $ 236,934 $ 221,655
Costs and expenses:
Technology and academic services32,051 26,277
Counseling services and support61,239 60,219
Marketing and communication47,731 42,693
General and administrative9,582 9,565
Amortization of intangible assets2,105 2,105
Total costs and expenses152,708 140,859
Operating income84,226 80,796
Interest income on Secured Note14,549 14,710
Interest expense(799)(1,546)
Investment interest and other121 216
Income before income taxes98,097 94,176
Income tax expense19,985 22,791
Net income $ 78,112 $ 71,385
Earnings per share:
Basic income per share $ 1.70 $ 1.50
Diluted income per share $ 1.69 $ 1.49
Basic weighted average shares outstanding46,084 47,455
Diluted weighted average shares outstanding46,300 47,764

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Current assets
Cash and cash equivalents $ 225,829 $ 245,769
Investments36,443 10,840
Accounts receivable, net91,790 62,189
Interest receivable on Secured Note5,011 5,011
Income tax receivable763 1,294
Other current assets14,484 8,639
Total current assets374,320 333,742
Property and equipment, net131,929 128,657
Right-of-use assets59,434 61,020
Secured Note receivable, net964,912 964,912
Amortizable intangible assets, net191,533 193,638
Goodwill160,766 160,766
Other assets2,133 1,844
Total assets1,885,027 1,844,579
Current liabilities
Accounts payable17,224 16,583
Accrued compensation and benefits37,307 34,248
Accrued liabilities29,495 21,945
Income taxes payable21,180 5,405
Deferred revenue6,936
Current portion of lease liability7,525 7,393
Current portion of notes payable33,144 33,144
Total current liabilities152,811 118,718
Deferred income taxes, noncurrent22,029 20,288
Other long-term liability107 3
Lease liability, less current portion55,058 56,611
Notes payable, less current portion66,344 74,630
Total liabilities296,349 270,250
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.01 par value, 10,000 shares authorized; 0 shares issued and outstanding at March 31, 2021 and December 31, 2020
Common stock, $0.01 par value, 100,000 shares authorized; 53,633 and 53,277 shares issued and 46,382 and 46,649 shares outstanding at March 31, 2021 and December 31, 2020, respectively536 533
Treasury stock, at cost, 7,251 and 6,628 shares of common stock at March 31, 2021 and December 31, 2020, respectively(365,721)(303,379)
Additional paid-in capital281,163 282,467
Accumulated other comprehensive loss(120)
Retained earnings1,672,820 1,594,708
Total stockholders' equity1,588,678 1,574,329
Total liabilities and stockholders' equity $ 1,885,027 $ 1,844,579

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in ThousandsMar. 31, 2021Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares authorized10,000 10,000
Preferred stock, shares issued0 0
Preferred stock, shares outstanding0 0
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized100,000 100,000
Common stock, shares issued53,633 53,277
Common stock, shares outstanding46,382 46,649
Treasury stock, shares7,251 6,628

Consolidated Statements of Othe

Consolidated Statements of Other Comprehensive Income - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Consolidated Statements of Other Comprehensive Income
Net income $ 78,112 $ 71,385
Other comprehensive income, net of tax:
Unrealized losses on available-for-sale securities, net of taxes of $35 for the three months ended March 31, 2021(120)
Comprehensive income $ 77,992 $ 71,385

Consolidated Statements of Ot_2

Consolidated Statements of Other Comprehensive Income (Parenthetical) $ in Thousands3 Months Ended
Mar. 31, 2021USD ($)
Consolidated Statements of Other Comprehensive Income
Unrealized gains (losses) on available for sale securities, taxes $ (35)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in ThousandsCommon StockTreasury StockAdditional Paid-in CapitalAccumulated Other Comprehensive LossRetained EarningsCumulative Effect of Adoption AdjustmentRetained EarningsCumulative Effect of Adoption AdjustmentTotal
Beginning Balance (ASU 2016-13) at Dec. 31, 2019 $ (3,832) $ (3,832)
Beginning Balance at Dec. 31, 2019 $ 531 $ (169,365) $ 270,923 $ 1,341,344 $ 1,443,433
Beginning Balance, shares at Dec. 31, 201953,054 4,949
Comprehensive income71,385 71,385
Common stock purchased for treasury $ (60,737)(60,737)
Common stock acquired, shares787
Restricted shares forfeited, shares10
Share-based compensation $ 1 $ (4,969)2,655 (2,313)
Share-based compensation, shares164 62
Exercise of stock options72 72
Exercise of stock options, shares3
Ending Balance (ASU 2016-13) at Mar. 31, 2020 $ (3,832)
Ending Balance at Mar. 31, 2020 $ 532 $ (235,071)273,650 1,408,897 1,448,008
Ending Balance, shares at Mar. 31, 202053,221 5,808
Beginning Balance at Dec. 31, 2020 $ 533 $ (303,379)282,467 1,594,708 1,574,329
Beginning Balance, shares at Dec. 31, 202053,277 6,628
Comprehensive income $ (120)78,112 77,992
Common stock purchased for treasury $ (56,348)(7,000)(63,348)
Common stock acquired, shares567
Share-based compensation $ 1 $ (5,994)3,018 (2,975)
Share-based compensation, shares180 56
Exercise of stock options $ 2 2,678 2,680
Exercise of stock options, shares176
Ending Balance at Mar. 31, 2021 $ 536 $ (365,721) $ 281,163 $ (120) $ 1,672,820 $ 1,588,678
Ending Balance, shares at Mar. 31, 202153,633 7,251

Consolidated Statements of St_2

Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Thousands3 Months Ended
Mar. 31, 2020USD ($)
Statement of Stockholders' Equity
Cumulative effect from the adoption of accounting pronouncements, tax $ 1,168

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Cash flows provided by operating activities:
Net income $ 78,112 $ 71,385
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation3,019 2,656
Depreciation and amortization5,426 4,989
Amortization of intangible assets2,105 2,105
Deferred income taxes1,776 1,688
Other, including fixed asset impairments65 289
Changes in assets and liabilities:
Accounts receivable and interest receivable from university partners(29,601)(28,451)
Other assets(6,166)(6,742)
Right-of-use assets and lease liabilities165 544
Accounts payable971 3,957
Accrued liabilities10,714 5,972
Income taxes receivable/payable16,305 19,174
Deferred revenue6,936 8,153
Net cash provided by operating activities89,827 85,719
Cash flows used in investing activities:
Capital expenditures(8,911)(6,085)
Additions of amortizable content(90)(56)
Purchases of investments(31,337)
Proceeds from sale or maturity of investments5,519 4,263
Net cash used in investing activities(34,819)(1,878)
Cash flows (used in) provided by financing activities:
Principal payments on notes payable(8,286)(8,286)
Repurchase of common shares including shares withheld in lieu of income taxes(69,342)(65,706)
Net proceeds from exercise of stock options2,680 72
Net cash used in financing activities(74,948)(73,920)
Net increase (decrease) in cash and cash equivalents and restricted cash(19,940)9,921
Cash and cash equivalents and restricted cash, beginning of period245,769 122,572
Cash and cash equivalents and restricted cash, end of period225,829 132,493
Supplemental disclosure of cash flow information
Cash paid for interest895 1,546
Cash paid for income taxes230 250
Supplemental disclosure of non-cash investing and financing activities
Purchases of property and equipment included in accounts payable876 899
ROU Asset and Liability recognition $ 1,586 $ 6,775

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2019Dec. 31, 2020
Stockholders equity $ 1,588,678 $ 1,448,008 $ 1,443,433 $ 1,574,329
Allowance for credit losses5,000 5,000 5,000 $ 5,000
Income tax expense $ 19,985 22,791
Income taxes1,168
Cumulative Effect of Adoption Adjustment | ASU 2016-13
Stockholders equity(3,832)(3,832)
Allowance for credit losses5,000 5,000
Income tax expense $ 1,168 $ 1,168

Nature of Business

Nature of Business3 Months Ended
Mar. 31, 2021
Nature of Business
Nature of Business1. Nature of Business Grand Canyon Education, Inc. (together with its subsidiaries, the “Company” or “GCE”) is a publicly traded education services company dedicated to serving colleges and universities. GCE has developed significant technological solutions, infrastructure and operational processes to provide services to these institutions on a large scale. GCE’s most significant university partner is Grand Canyon University (“GCU”), an Arizona non-profit corporation, a comprehensive regionally accredited university that offers graduate and undergraduate degree programs, emphases and certificates across off-campus classroom and laboratory sites. In January 2019, GCE began providing education services to numerous university partners across the United States, through our wholly owned subsidiary, Orbis Education, which we acquired, by merger on January 22, 2019 for $361,184 , net of cash acquired (the “Acquisition”). In the healthcare field, GCE, together with Orbis Education, works in partnership with a growing number of top universities and healthcare networks across the country, offering healthcare-related academic programs at off-campus classroom and laboratory sites located near healthcare providers and developing high-quality, career-ready graduates who enter the workforce ready to meet the demands of the healthcare industry. As of March 31, 2021, GCE provides education services to 26 university partners across the United States.

Summary of Significant Accounti

Summary of Significant Accounting Policies3 Months Ended
Mar. 31, 2021
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies2. Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany transactions have been eliminated in consolidation. Unaudited Interim Financial Information The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles and pursuant to the rules and regulations of the United States Securities and Exchange Commission and the instructions to Form 10-Q and Article 10, consistent in all material respects with those applied in its financial statements included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2020. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. Such interim financial information is unaudited but reflects all adjustments that in the opinion of management are necessary for the fair presentation of the interim periods presented. Interim results are not necessarily indicative of results for a full year. These consolidated financial statements should be read in conjunction with the Company’s audited financial statements and footnotes included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2020 from which the December 31, 2020 balance sheet information was derived. Investments At March 31, 2021 and December 31, 2020, the Company considers its investments in corporate bonds, commercial paper, municipal securities, asset backed securities, municipal bonds, and collateralized mortgage obligations either as trading securities or available-for-sale securities based on the Company’s intent for the respective security. Trading securities are carried at fair value determined using Level 1 and Level 2 of the hierarchy of valuation inputs, with the use of quoted market prices and inputs other than quoted prices that are observable for the assets. Available-for-sale securities are carried at fair value, 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, with unrealized gains and losses, net of tax, reported as a separate component of other comprehensive income. Unrealized losses considered to be other-than-temporary are recognized currently in earnings. Amortization of premiums, accretion of discounts, interest and dividend income and realized gains and losses are included in interest and other income. Arrangements with GCU On July 1, 2018, the Company consummated an Asset Purchase Agreement (the “Asset Purchase Agreement”) with GCU. In conjunction with the Asset Purchase Agreement, we received a secured note from GCU as consideration for the transferred assets (the “Transferred Assets”) in the initial principal amount of of the term. As of March 31, 2021, the Company had loaned to GCU, net of repayments. In Except for identified liabilities assumed by GCU, GCE retained responsibility for all liabilities of the business arising from pre-closing operations. Internally Developed Software The Company capitalizes certain costs related to internal-use software, primarily consisting of direct labor associated with creating the software. Software development projects generally include three stages: the preliminary project stage (all costs are expensed as incurred), the application development stage (certain costs are capitalized and certain costs are expensed as incurred) and the post-implementation or operation stage (all costs are expensed as incurred). Costs capitalized in the application development stage include costs of design, coding, integration, and testing of the software developed. Capitalization of costs requires judgment in determining when a project has reached the application development stage and the period over which we expect to benefit from the use of that software. Once the software is placed in service, these costs are amortized straight-line over the estimated useful life of the software, which is generally three years . These assets are a component of our property and equipment, net in our consolidated balance sheets. Capitalized Content Development The Company capitalizes certain costs to fulfill a contract related to the development and digital creation of content on a course-by-course basis for each university partner, many times in conjunction with faculty and subject matter experts. The Company is responsible for the conversion of instructional materials to an on-line format, including outlines, quizzes, lectures, and articles in accordance with the educational guidelines provided to us by our university partners, prior to the respective course commencing. We also capitalize the creation of learning objects which are digital assets such as online demonstrations, simulations, and case studies used to obtain learning objectives. Costs that are capitalized include payroll and payroll-related costs for employees who are directly associated and spend time producing content and payments to faculty and subject matter experts involved in the process. The Company starts capitalizing content costs when it begins to develop or to convert a particular course, resources have been assigned and a timeline has been set. The content asset is placed in service when all work is complete and the curriculum could be used for instruction. Capitalized content development assets are included in other assets in our consolidated balance sheets. The Company has concluded that the most appropriate method to amortize the deferred content assets is on a straight-line basis over the estimated life of the course, which is generally four years which corresponds with course’s review and major revision cycle. As of March 31, 2021 and December 31, 2020, $1,166 and $1,198, respectively, net of amortization, of deferred content assets are included in other assets, long-term in the Company’s consolidated balance sheets and amortization is included in technical and academic services where the costs originated. Leases The Company determines if an arrangement is a lease at inception and evaluates the lease agreement to determine whether the lease is a finance or operating lease. Right-of-use (“ROU”) assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement to determine the present value of lease payments over the lease term. At lease inception, the Company determines the lease term by assuming no exercises of renewal options, due to the Company’s constantly changing geographical needs for its university partners. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and are recognized as lease expense on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, and the non-lease components are accounted for separately and not included in our ROU assets and lease liabilities. Leases primarily consist of off-campus classroom and laboratory site locations and office space. Business Combinations The purchase price of an acquisition is allocated to the assets acquired, including tangible and intangible assets, and liabilities assumed, based on their respective fair values at the acquisition date. The excess of the fair value of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. Transaction costs associated with business combinations are expensed as incurred and are recorded in the loss on transaction in the consolidated financial statements. The determination of the fair value and useful lives of the intangible assets acquired involves certain judgments and estimates. These judgements can include, but are not limited to, the cash flows that an asset is expected to generate in the future and the appropriate weighted average cost of capital. The net assets and result of operations of an acquired entity are included in the Company’s consolidated financial statements from the acquisition date. Goodwill and Amortizable Intangible Assets Goodwill represents the excess of the purchase price of an acquired business over the amount assigned to the tangible and intangible assets acquired and liabilities assumed. Goodwill is assessed at least annually for impairment during the fourth quarter, or more frequently if circumstances indicate potential impairment. Goodwill is allocated to our reporting unit at the education services segment, which is the same as the entity as a whole (entity level reporting unit). The Company has concluded there is one operating segment and one reporting unit for goodwill impairment consideration. 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 quantitative goodwill impairment test. The Company reviews goodwill at least annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Finite-lived intangible assets that are acquired in a business combination are recorded at fair value on their acquisition dates and are amortized on a straight-line basis over the estimated useful life of the intangible asset. Finite-lived intangible assets consist of university partner relationships and trade names. The Company reviews its finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. There were no indicators that the carrying amount of the finite-lived intangible assets were impaired. 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 intangible assets are not recoverable, a potential impairment loss is recognized to the extent the carrying amounts of the assets exceeds the fair value of the assets. Acquisition On January 22, 2019, GCE acquired Orbis Education for $361,184 (inclusive of closing date adjustments and net of cash acquired). The Acquisition was accounted for in accordance with the acquisition method of accounting. Under this method the cost of the target is allocated to the identifiable assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The estimated fair values of current assets and liabilities were based upon their historical costs on the date of acquisition due to their short-term nature. The majority of property and equipment were also estimated based upon historical costs as they approximated fair value. Identified intangible assets of . The fair value of university partner relationships was determined using the multiple-period excess earnings method. The fair value of the assets acquired, less the liabilities assumed, exceeded the purchase price by Share-Based Compensation The Company measures and recognizes compensation expense for share-based payment awards made to employees and directors. The fair value of the Company’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 Company employees and the Company’s board of directors. The Company recognizes forfeitures as they occur. Fair Value of Financial Instruments The carrying value of cash and cash equivalents, accounts receivable, accounts payable, accrued compensation and benefits and accrued liabilities expenses approximate their fair value based on the liquidity or the short-term maturities of these instruments. As of March 31, 2021 and December 31, 2020 the fair value of the Company’s Secured Note was $1,045,591 and $1,049,458, respectively. As of March 31, 2021 and December 31, 2020 the carrying value of Secured Note receivable for both periods was $964,912 . The carrying value of notes payable approximates fair value as it is based on variable rate index. The fair value of investments was determined using Level 1 and 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 basis for fair value measurements for each level is described below, with Level 1 having the highest priority. ​ -Level 1 – inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. ​ -Level 2 – inputs are quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in non-active markets; and model-derived valuations whose inputs are observable or whose significant valuation drivers are observable. ​ Investments are comprised of corporate bonds, commercial paper, municipal securities, asset backed securities, municipal bonds, and collateralized mortgage obligations. Revenue Recognition The Company generates all of its revenue through services agreements with its university partners (“Services Agreements”), pursuant to which the Company provides integrated technology and academic services, marketing and communication services, and back office services to its university partners in return for a percentage of tuition and fee revenue. The Company’s Services Agreements have initial terms ranging from 7-15 years , subject to renewal options, although certain agreements may give the university partners the right to terminate early if certain conditions are met. The Company’s Services Agreements have a single performance obligation, as the promises to provide the identified services are not distinct within the context of these agreements. The single performance obligation is delivered as our partners receive and consume benefits, which occurs ratably over a series of distinct service periods (daily or semester). Service revenue is recognized over time using the output method of measuring progress towards complete satisfaction of the single performance obligation. The output method provides a faithful depiction of the performance toward complete satisfaction of the performance obligation and can be tied to the time elapsed which is consumed evenly over the service period and is a direct measurement of the value provided to our partners. The service fees received from our partners over the term of the agreement are variable in nature in that they are dependent upon the number of students attending the university partner’s program and revenues generated from those students during the service period. Due to the variable nature of the consideration over the life of the service arrangement, the Company considered forming an expectation of the variable consideration to be received over the service life of this one performance obligation. However, since the performance obligation represents a series of distinct services, the Company recognizes the variable consideration that becomes known and billable because these fees relate to the distinct service period in which the fees are earned. The Company meets the criteria in the standard and exercises the practical expedient to not disclose the aggregate amount of the transaction price allocated to the single performance obligation that is unsatisfied as of the end of the reporting period. The Company does not disclose the value of unsatisfied performance obligations because the directly allocable variable consideration is allocated entirely to a wholly unsatisfied promise to transfer a service that forms part of a single performance obligation. The service fees are calculated and settled per the terms of the Services Agreements and result in a settlement duration of less than one year for all partners. There are no refunds or return rights under the Services Agreements. The Company’s receivables represent unconditional rights to consideration from our Services Agreements with our university partners. Accounts receivable, net is stated at amortized cost, net of any allowance for credit losses and contains billed and unbilled revenue. The Company evaluates the need for an allowance for credit losses using relevant available information about expected credit losses, including information about historical credit losses, past events, current conditions, and other factors which may affect the collectability of receivables. There have been allowance for credit losses established as of March 31, 2021 given historical collection experience. The Company will continue to review and revise its allowance methodology based on its collection experience with its partners. ​ For our partners with unbilled revenue, revenue recognition occurs in advance of billings. Billings for some university partners do not occur until after the service period has commenced and final enrollment information is available. Our unbilled revenue of $10,132 and $294 as of March 31, 2021 and December 31, 2020, respectively, are included in accounts receivable in our consolidated balance sheets. Deferred revenue represents the excess of amounts received as compared to amounts recognized in revenue on our consolidated statements of income as of the end of the reporting period, and such amounts are reflected as a current liability on our consolidated balance sheets. We generally receive payments for our services billed within 30 days of invoice. These payments are recorded as deferred revenue until the services are delivered and revenue is recognized. ​ ​ ​ Allowance for Credit Losses The Company records its accounts receivable and Secured Note receivable at the net amount expected to be collected. Our accounts receivable are derived through education services provided to university partners. Our Secured Note receivable was derived through the sale of university related assets to our most significant university partner, GCU. The Company maintains an allowance for credit losses resulting from our university partners not making payments. The Company determines the adequacy of the allowance by periodically evaluating each university partners balance, considering their financial condition and credit history, and considering current and forecasted economic conditions. Since our transition to an education services company on July 1, 2018, and continued growth to Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments using a modified retrospective approach. This model requires consideration of a broader range of reasonable and supportable information and requires the Company to estimate expected credit losses including a measure of the expected risk of credit loss even if that risk is remote over the lifetime of the asset. Upon adoption, the Company recorded a reserve of on its long-term Secured Note receivable. The cumulative effect for the Company upon adoption of this new standard was . Bad debt expense is recorded as a technology and academic services expense in the consolidated income statements. The Company will continue to actively monitor the impact of the COVID-19 pandemic on expected credit losses. Technology and Academic Services Technology and academic services consist primarily of costs related to ongoing maintenance of educational infrastructure, including online course delivery and management, student records, assessment, customer relations management and other internal administrative systems. This also includes costs to provide support for content development, faculty training, development and other faculty support, technology support, rent and occupancy costs for university partners’ off-campus locations, and assistance with state compliance. This expense category includes salaries, benefits and share-based compensation, information technology costs, amortization of content development costs and other costs associated with these support services. This category also includes an allocation of depreciation, amortization, and occupancy costs attributable to the provision of certain services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations. Counseling Services and Support Counseling services and support consist primarily of costs including team-based counseling and other support to prospective and current students as well as financial aid processing. This expense category includes salaries, benefits and share-based compensation, and other costs such as dues, fees and subscriptions and travel costs. This category also includes an allocation of depreciation, amortization, lease expense, and occupancy costs attributable to the provision of certain services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations. Marketing and Communication Marketing and communication includes lead acquisition, digital communication strategies, brand identity advertising, media planning and strategy, video, data science and analysis, marketing to potential students and other promotional and communication services. This expense category includes salaries, benefits and share-based compensation for marketing and communication personnel, brand advertising, marketing leads and other promotional and communication expenses. This category also includes an allocation of depreciation, amortization, lease expense, and occupancy costs attributable to the provision of certain services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations. Advertising costs are expensed as incurred. General and Administrative General and administrative expenses include salaries, benefits and share-based compensation of employees engaged in corporate management, finance, human resources, compliance, and other corporate functions. This category also includes an allocation of depreciation, amortization, lease expense, and occupancy costs attributable to the provision of these services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations. Commitments and Contingencies The Company accrues for contingent obligations when it is probable that a liability has been incurred and the amount is reasonably estimable. When the Company 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 Company records a liability for the estimated loss. If the loss is not probable or the amount of the potential loss is not estimable, the Company 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 Company expenses legal fees as incurred. Concentration of Credit Risk The Company believes the credit risk related to cash equivalents and investments is limited due to its adherence to an investment policy that requires 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 Company’s cash equivalents and investments as of March 31, 2021 and December 31, 2020 consist of investments rated BBB or higher by at least one rating agency. Additionally, the Company 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. The Company is also subject to credit risk for its accounts receivable balance and its Secured Note. The Company has not experienced any losses on receivables since July 1, 2018, the date the Company transitioned to an educational service provider. To manage accounts receivable risk, the Company maintains an allowance for doubtful accounts, if needed. The Company monitors the credit risk exposure of the counterparty of the Secured Note to determine whether an adjustment to allowance for credit loss is necessary. A significant deterioration in the financial viability of our counterparty and corresponding decline in the fair value of the collateralized assets could impact the collectability risk of the Secured Note. Our dependence on our most significant university partner, which is also the counterparty to the Secured Note, with Use of Estimates The preparation of consolidated 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. Segment Information The Company operates as a single education services company using a core infrastructure that serves the curriculum and educational delivery needs of its university partners. The Company’s Chief Executive Officer manages the Company’s operations as a whole and no expense or operating income information is generated or evaluated on any component level. Accounting Pronouncements Adopted in 2021 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This ASU is intended to simplify various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods, with early adoption permitted. Accordingly, the standard was adopted by the Company as of January 1, 2021. Most amendments within this ASU are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The adoption of this guidance did not have a material impact on the Company’s financial condition, results of operations or statements of cash flows. Recent Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effect of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company plans to elect the optional expedient for its credit facility by prospectively adjusting the effective interest rate if the cessation of the London Interbank Offered Rate (LIBOR) occurs. The Company does not believe the adoption of the reference rate reform will have a material impact on the Company’s financial condition, results of operations or statements of cash flows. The Company 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

Investments3 Months Ended
Mar. 31, 2021
Investments
Investments3. Investments At March 31, 2021 and December 31, 2020, the Company had investments of $8,015 and $10,840 , respectively, classified as trading. The trading investments are held in municipal and corporate securities as of March 31, 2021 and December 31, 2020 and are due in one year or less as of March 31, 2021. The cash flows of municipal securities are backed by the issuing municipality’s credit-worthiness. At March 31, 2021, the Company had available-for-sale investments of $28,428, comprised of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, 2021 ​ ​ ​ Gross Gross Estimated ​ ​ Adjusted ​ Unrealized ​ Unrealized ​ Fair ​ ​ Cost ​ Gains ​ (Losses) ​ Value Corporate bonds ​ $ 19,228 ​ $ 9 ​ $ (158) ​ $ 19,079 Commercial paper ​ ​ 5,991 ​ ​ — ​ ​ (3) ​ ​ 5,988 Municipal securities ​ ​ 1,433 ​ ​ ​ ​ ​ (1) ​ ​ 1,432 Asset backed securities ​ ​ 1,931 ​ ​ ​ ​ ​ (2) ​ ​ 1,929 Total investments ​ $ 28,583 ​ $ 9 ​ $ (164) ​ $ 28,428 ​ For the three months ended March 31, 2021, the net unrealized gains or (losses) were $120 , net of taxes. Available-for-sale debt securities are carried at fair value on the consolidated balance sheets. The Company estimates the lifetime expected credit losses for all available-for sale debt securities in an unrealized loss position. If our assessment indicates that an expected credit loss exists, we determine the portion of the unrealized loss attributable to credit deterioration and record a reserve for the expected credit loss in the allowance for credit losses in technology and academic services in our consolidated income statements. As of March 31, 2021, there were no credit losses for our available-for-sale debt securities. ​ ​ ​ ​ ​ Available-for-sale securities maturing as of December 31: ​ ​ ​ 2021 (Remainder of year) ​ ​ 9,153 2022 ​ ​ 2,302 2023 ​ ​ 4,041 2024 ​ ​ 3,338 2025 ​ ​ 1,019 Thereafter ​ ​ 8,575 Total ​ ​ 28,428 ​

Net Income Per Common Share

Net Income Per Common Share3 Months Ended
Mar. 31, 2021
Net Income Per Common Share
Net Income Per Common Share4. Net Income Per Common 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ ​ March 31, ​ ​ 2021 2020 Denominator: Basic weighted average shares outstanding 46,084 47,455 Effect of dilutive stock options and restricted stock 216 309 Diluted weighted average shares outstanding 46,300 47,764 ​ 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 the three month periods ended March 31, 2021 and 2020, approximately 1 and 284, respectively, of the Company’s restricted stock awards outstanding were excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive. These restricted stock awards could be dilutive in the future.

Allowance for Credit Losses

Allowance for Credit Losses3 Months Ended
Mar. 31, 2021
Allowance for Credit Losses
Allowance for Credit Losses5. Allowance for Credit Losses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at ​ ​ Balance at ​ ​ Beginning of ​ Charged to ​ Deductions/ ​ End of ​ ​ Period (1) ​ Expense ​ Transfers (2) ​ Period Allowance for credit losses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, 2021 ​ $ 5,000 — — ​ $ 5,000 Three months ended March 31, 2020 ​ $ 5,000 — — ​ $ 5,000 ​ ​ ​ (1) Amount represents the cumulative effect of the adoption of ASU No. 2016-13 on the Secured Note. (2) Deductions represent accounts written off, net of recoveries.

Property and Equipment

Property and Equipment3 Months Ended
Mar. 31, 2021
Property and Equipment
Property and Equipment6. Property and Equipment Property and equipment consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, December 31, ​ ​ 2021 ​ 2020 Land ​ $ 5,579 ​ $ 5,579 Land improvements ​ 2,242 ​ 2,242 Buildings ​ 51,399 ​ 51,399 Buildings and leasehold improvements ​ 16,670 ​ 14,352 Computer equipment ​ 102,891 ​ 100,575 Furniture, fixtures and equipment ​ 15,912 ​ 15,439 Internally developed software ​ 47,222 ​ 46,981 Construction in progress ​ 8,267 ​ 5,043 ​ ​ 250,182 ​ 241,610 Less accumulated depreciation and amortization ​ (118,253) ​ (112,953) Property and equipment, net ​ $ 131,929 ​ $ 128,657 ​

Amortizable Intangible Assets

Amortizable Intangible Assets3 Months Ended
Mar. 31, 2021
Amortizable Intangible Assets
Amortizable Intangible Assets7. Amortizable Intangible Assets Amortizable intangible assets consist of the following as of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2021 ​ Estimated ​ Gross ​ ​ ​ ​ Net ​ Average Useful ​ Carrying ​ Accumulated ​ Carrying ​ Life (in years) ​ Amount ​ Amortization ​ Amount University partner relationships 25 $ 210,000 ​ (18,467) $ 191,533 Trade names 1 ​ ​ 280 ​ ​ (280) ​ — Total amortizable intangible assets, net ​ ​ $ 210,280 ​ ​ (18,747) ​ $ 191,533 ​ Amortization expense for university partner relationships and trade names for the years ending December 31: ​ ​ ​ Remainder of 2021 $ 6,314 2022 8,419 2023 ​ 8,419 2024 ​ 8,419 2025 ​ 8,419 Thereafter 151,543 ​ $ 191,533 ​

Leases

Leases3 Months Ended
Mar. 31, 2021
Leases
Leases8. Leases The Company has operating leases for classroom site locations, office space, office equipment, and optical fiber communication lines. These leases have terms that range from 10 months to 10 years . At lease inception, we determine the lease term by assuming no exercises of renewal options, due to the Company’s constantly changing geographical needs for its university partners. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and we recognize lease expense for these leases on a straight-line basis over the lease term. The Company had operating lease costs of $2,435 and $1,441 for the three-month periods ended March 31, 2021 and 2020, respectively. As of March 31, 2021, the Company had no non-cancelable operating lease commitments that had not yet commenced. The Company’s weighted-average remaining lease term relating to its operating leases is 8.36 years, with a weighted-average discount rate of 3.21 %. As of March 31, 2021, the Company had no financing leases. Future payment obligations with respect to the Company’s operating leases, which were existing at March 31, 2021, by year and in the aggregate, are as follows: ​ ​ ​ ​ ​ Year Ending December 31, Amount Remainder of 2021 ​ $ 7,092 2022 ​ ​ 8,992 2023 ​ ​ 8,469 2024 ​ ​ 7,967 2025 ​ ​ 7,645 Thereafter ​ ​ 31,106 Total lease payments ​ $ 71,271 Less interest ​ ​ 8,688 Present value of lease liabilities ​ $ 62,583 ​

Notes Payable and Other Noncurr

Notes Payable and Other Noncurrent Liabilities3 Months Ended
Mar. 31, 2021
Notes Payable and Other Noncurrent Liabilities
Notes Payable and Other Noncurrent Liabilities​ 9. Notes Payable and Other Noncurrent Liabilities We entered into an amended and restated credit agreement dated January 22, 2019 and two related amendments dated January 31, 2019 and dated February 1, 2019, respectively, that together provide a credit facility of $325,000 comprised of a term loan facility of $243,750 and a revolving credit facility of $81,250, both with a five-year maturity date. The Company concluded that the amended and restated credit agreement is considered a loan modification. Accordingly, the Company allocated the costs paid to the bank consortium based on the borrowing dollars and recorded an asset of maturity date. The Company entered into a further amendment for the credit facility on October 31, 2019. This amendment increased the revolving commitment by . The Company concluded that this amendment is considered a loan modification. The amended and restated credit agreement contains standard covenants that, among other things, restrict the Company’s ability to incur additional debt or make certain investments, and require the Company to achieve certain financial ratios and maintain certain financial conditions. The Company’s obligations under the credit facility are secured by its assets, including all rights, benefits and payments under the Secured Note and the Master Services Agreement. As of March 31, 2021, the Company is in compliance with its debt covenants. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, ​ As of December 31, ​ 2021 2020 Notes Payable ​ ​ Note payable, quarterly payment of $8,368 starting December 31, 2019; interest at 30-Day LIBOR plus 2.00% (2.12% at March 31, 2021) through January 22, 2024 ​ $ 99,488 ​ $ 107,774 Revolving line of credit; interest at 30-Day LIBOR plus 2.0% (2.12% at March 31, 2021) ​ ​ — ​ ​ — ​ ​ 99,488 ​ 107,774 Less: Current portion ​ 33,144 ​ 33,144 ​ ​ $ 66,344 ​ $ 74,630 ​ Payments due under the notes payable obligations are as follows as of December 31: ​ ​ ​ ​ Remainder of 2021 $ 24,858 2022 ​ ​ 33,144 2023 ​ ​ 33,145 2024 ​ ​ 8,341 2025 ​ ​ — Total ​ $ 99,488 ​

Commitments and Contingencies

Commitments and Contingencies3 Months Ended
Mar. 31, 2021
Commitments and Contingencies
Commitments and Contingencies10. Commitments and Contingencies Legal Matters From time to time, the Company is a party to various lawsuits, claims, and other legal proceedings that arise in the ordinary course of business, some of which are covered by insurance. When the Company 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 Company records a liability for the loss. If the loss is not probable or the amount of the loss cannot be reasonably estimated, the Company discloses the nature of the specific claim if the likelihood of a potential loss is reasonably possible and the amount involved could be material. With respect to the majority of pending litigation matters, the Company’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 Company 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 Company’s financial condition, results of operations or cash flows. Tax Reserves, Non-Income Tax Related From time to time the Company has exposure to various non-income tax related matters that arise in the ordinary course of business. The Company reserve is not material for tax matters where its ultimate exposure is considered probable and the potential loss can be reasonably estimated.

Share-Based Compensation

Share-Based Compensation3 Months Ended
Mar. 31, 2021
Share-Based Compensation
Share-Based Compensation11. Share-Based Compensation Incentive Plan The Company makes equity incentive grants pursuant to our 2017 Equity Incentive Plan (the “2017 Plan”) under which a maximum of 3,000 shares may be granted. As of March 31, 2021, 1,418 shares were available for grants under the 2017 Plan. Restricted Stock During the three months ended March 31, 2021, the Company granted 180 shares of common stock with a service vesting condition to certain of its executives, officers and employees. The restricted shares have voting rights and vest in five with the first installment on the restricted stock vesting dates. ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average ​ ​ Total ​ Grant Date ​ ​ Shares ​ Fair Value per Share Outstanding as of December 31, 2020 419 ​ $ 83.43 Granted 180 ​ $ 85.97 Vested (141) ​ $ 74.41 Forfeited, canceled or expired — ​ $ — Outstanding as of March 31, 2021 458 ​ $ 87.20 ​ Stock Options During the three months ended March 31, 2021, no options were granted. A summary of the activity since December 31, 2020 related to stock options granted under the Company’s Incentive Plan is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Summary of Stock Options Outstanding ​ ​ Weighted Weighted ​ ​ ​ ​ ​ ​ Average ​ Average ​ ​ ​ ​ ​ ​ ​ Exercise ​ Remaining ​ Aggregate ​ ​ Total ​ Price per ​ Contractual ​ Intrinsic ​ ​ Shares ​ Share ​ Term (Years) ​ Value ($) Outstanding as of December 31, 2020 176 ​ $ 15.34 ​ ​ ​ ​ ​ Granted — ​ $ — ​ Exercised (176) ​ $ 15.34 ​ Forfeited, canceled or expired — ​ $ — ​ Outstanding as of March 31, 2021 — ​ $ — — ​ $ — Exercisable as of March 31, 2021 — ​ $ — — ​ $ — ​ Share-based Compensation Expense The table below outlines share-based compensation expense for the three months ended March 31, 2021 and 2020 related to restricted stock granted: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 Technology and academic services ​ ​ $ 606 ​ $ 518 Counseling services and support ​ ​ 1,488 ​ 1,330 Marketing and communication ​ ​ 30 ​ 25 General and administrative ​ ​ 895 ​ 783 Share-based compensation expense included in operating expenses ​ ​ 3,019 ​ 2,656 Tax effect of share-based compensation ​ ​ (755) ​ (664) Share-based compensation expense, net of tax ​ ​ $ 2,264 ​ $ 1,992 ​

Treasury Stock

Treasury Stock3 Months Ended
Mar. 31, 2021
Treasury Stock.
Treasury Stock​ 12. Treasury Stock In January 2021, the Board of Directors increased the authorization under its existing stock repurchase program by $100,000 reflecting an aggregate authorization for share repurchases since the initiation of our program of $500,000. The expiration date on the repurchase authorization is December 31, 2021. Repurchases occur at the Company’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. ​ On March 10, 2021, the Company entered into an accelerated share repurchase (“ASR”) agreement with Morgan Stanley & Co. LLC (“Morgan Stanley”) to repurchase up to $35,000 of its outstanding shares of common stock as part of the Company’s share repurchase program. Under the ASR agreement, the Company received initial delivery of approximately , on March 9, 2021. The total number of shares that the Company will repurchase under the ASR program will be based on the volume-weighted average price of the common stock during the term of the ASR agreement, less a discount, and subject to potential adjustments pursuant to the terms and conditions of the ASR agreement. The final settlement of the share repurchases under the ASR agreement was completed on May 4, 2021 with additional delivery of shares of common stock. The ASR agreement resulted in a total of . During the three months ended March 31, 2021 the Company repurchased 567 shares of common stock, which includes shares received under the ASR on March 10, 2021, at an aggregate cost of $56,348 . At March 31, 2021, there remained available under its current share repurchase authorization. Shares repurchased in lieu of taxes are not included in the repurchase plan totals as they were approved in conjunction with the restricted share awards. ​ ​

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)3 Months Ended
Mar. 31, 2021
Summary of Significant Accounting Policies
Principles of ConsolidationPrinciples of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany transactions have been eliminated in consolidation.
Use of EstimatesUse of Estimates The preparation of consolidated 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.
Unaudited Interim Financial InformationUnaudited Interim Financial Information The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles and pursuant to the rules and regulations of the United States Securities and Exchange Commission and the instructions to Form 10-Q and Article 10, consistent in all material respects with those applied in its financial statements included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2020. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. Such interim financial information is unaudited but reflects all adjustments that in the opinion of management are necessary for the fair presentation of the interim periods presented. Interim results are not necessarily indicative of results for a full year. These consolidated financial statements should be read in conjunction with the Company’s audited financial statements and footnotes included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2020 from which the December 31, 2020 balance sheet information was derived.
InvestmentsInvestments At March 31, 2021 and December 31, 2020, the Company considers its investments in corporate bonds, commercial paper, municipal securities, asset backed securities, municipal bonds, and collateralized mortgage obligations either as trading securities or available-for-sale securities based on the Company’s intent for the respective security. Trading securities are carried at fair value determined using Level 1 and Level 2 of the hierarchy of valuation inputs, with the use of quoted market prices and inputs other than quoted prices that are observable for the assets. Available-for-sale securities are carried at fair value, 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, with unrealized gains and losses, net of tax, reported as a separate component of other comprehensive income. Unrealized losses considered to be other-than-temporary are recognized currently in earnings. Amortization of premiums, accretion of discounts, interest and dividend income and realized gains and losses are included in interest and other income.
Arrangements with GCUArrangements with GCU On July 1, 2018, the Company consummated an Asset Purchase Agreement (the “Asset Purchase Agreement”) with GCU. In conjunction with the Asset Purchase Agreement, we received a secured note from GCU as consideration for the transferred assets (the “Transferred Assets”) in the initial principal amount of of the term. As of March 31, 2021, the Company had loaned to GCU, net of repayments. In Except for identified liabilities assumed by GCU, GCE retained responsibility for all liabilities of the business arising from pre-closing operations.
Internally Developed SoftwareInternally Developed Software The Company capitalizes certain costs related to internal-use software, primarily consisting of direct labor associated with creating the software. Software development projects generally include three stages: the preliminary project stage (all costs are expensed as incurred), the application development stage (certain costs are capitalized and certain costs are expensed as incurred) and the post-implementation or operation stage (all costs are expensed as incurred). Costs capitalized in the application development stage include costs of design, coding, integration, and testing of the software developed. Capitalization of costs requires judgment in determining when a project has reached the application development stage and the period over which we expect to benefit from the use of that software. Once the software is placed in service, these costs are amortized straight-line over the estimated useful life of the software, which is generally three years . These assets are a component of our property and equipment, net in our consolidated balance sheets.
Capitalized Content DevelopmentCapitalized Content Development The Company capitalizes certain costs to fulfill a contract related to the development and digital creation of content on a course-by-course basis for each university partner, many times in conjunction with faculty and subject matter experts. The Company is responsible for the conversion of instructional materials to an on-line format, including outlines, quizzes, lectures, and articles in accordance with the educational guidelines provided to us by our university partners, prior to the respective course commencing. We also capitalize the creation of learning objects which are digital assets such as online demonstrations, simulations, and case studies used to obtain learning objectives. Costs that are capitalized include payroll and payroll-related costs for employees who are directly associated and spend time producing content and payments to faculty and subject matter experts involved in the process. The Company starts capitalizing content costs when it begins to develop or to convert a particular course, resources have been assigned and a timeline has been set. The content asset is placed in service when all work is complete and the curriculum could be used for instruction. Capitalized content development assets are included in other assets in our consolidated balance sheets. The Company has concluded that the most appropriate method to amortize the deferred content assets is on a straight-line basis over the estimated life of the course, which is generally four years which corresponds with course’s review and major revision cycle. As of March 31, 2021 and December 31, 2020, $1,166 and $1,198, respectively, net of amortization, of deferred content assets are included in other assets, long-term in the Company’s consolidated balance sheets and amortization is included in technical and academic services where the costs originated.
LeasesLeases The Company determines if an arrangement is a lease at inception and evaluates the lease agreement to determine whether the lease is a finance or operating lease. Right-of-use (“ROU”) assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement to determine the present value of lease payments over the lease term. At lease inception, the Company determines the lease term by assuming no exercises of renewal options, due to the Company’s constantly changing geographical needs for its university partners. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and are recognized as lease expense on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, and the non-lease components are accounted for separately and not included in our ROU assets and lease liabilities. Leases primarily consist of off-campus classroom and laboratory site locations and office space.
Business CombinationsBusiness Combinations The purchase price of an acquisition is allocated to the assets acquired, including tangible and intangible assets, and liabilities assumed, based on their respective fair values at the acquisition date. The excess of the fair value of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. Transaction costs associated with business combinations are expensed as incurred and are recorded in the loss on transaction in the consolidated financial statements. The determination of the fair value and useful lives of the intangible assets acquired involves certain judgments and estimates. These judgements can include, but are not limited to, the cash flows that an asset is expected to generate in the future and the appropriate weighted average cost of capital. The net assets and result of operations of an acquired entity are included in the Company’s consolidated financial statements from the acquisition date. Acquisition On January 22, 2019, GCE acquired Orbis Education for $361,184 (inclusive of closing date adjustments and net of cash acquired). The Acquisition was accounted for in accordance with the acquisition method of accounting. Under this method the cost of the target is allocated to the identifiable assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The estimated fair values of current assets and liabilities were based upon their historical costs on the date of acquisition due to their short-term nature. The majority of property and equipment were also estimated based upon historical costs as they approximated fair value. Identified intangible assets of . The fair value of university partner relationships was determined using the multiple-period excess earnings method. The fair value of the assets acquired, less the liabilities assumed, exceeded the purchase price by
Goodwill and Amortizable Intangible AssetsGoodwill and Amortizable Intangible Assets Goodwill represents the excess of the purchase price of an acquired business over the amount assigned to the tangible and intangible assets acquired and liabilities assumed. Goodwill is assessed at least annually for impairment during the fourth quarter, or more frequently if circumstances indicate potential impairment. Goodwill is allocated to our reporting unit at the education services segment, which is the same as the entity as a whole (entity level reporting unit). The Company has concluded there is one operating segment and one reporting unit for goodwill impairment consideration. 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 quantitative goodwill impairment test. The Company reviews goodwill at least annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Finite-lived intangible assets that are acquired in a business combination are recorded at fair value on their acquisition dates and are amortized on a straight-line basis over the estimated useful life of the intangible asset. Finite-lived intangible assets consist of university partner relationships and trade names. The Company reviews its finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. There were no indicators that the carrying amount of the finite-lived intangible assets were impaired. 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 intangible assets are not recoverable, a potential impairment loss is recognized to the extent the carrying amounts of the assets exceeds the fair value of the assets.
Share-Based CompensationShare-Based Compensation The Company measures and recognizes compensation expense for share-based payment awards made to employees and directors. The fair value of the Company’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 Company employees and the Company’s board of directors. The Company recognizes forfeitures as they occur.
Fair Value of Financial InstrumentsFair Value of Financial Instruments The carrying value of cash and cash equivalents, accounts receivable, accounts payable, accrued compensation and benefits and accrued liabilities expenses approximate their fair value based on the liquidity or the short-term maturities of these instruments. As of March 31, 2021 and December 31, 2020 the fair value of the Company’s Secured Note was $1,045,591 and $1,049,458, respectively. As of March 31, 2021 and December 31, 2020 the carrying value of Secured Note receivable for both periods was $964,912 . The carrying value of notes payable approximates fair value as it is based on variable rate index. The fair value of investments was determined using Level 1 and 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 basis for fair value measurements for each level is described below, with Level 1 having the highest priority. ​ -Level 1 – inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. ​ -Level 2 – inputs are quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in non-active markets; and model-derived valuations whose inputs are observable or whose significant valuation drivers are observable. ​ Investments are comprised of corporate bonds, commercial paper, municipal securities, asset backed securities, municipal bonds, and collateralized mortgage obligations.
Commitments and ContingenciesCommitments and Contingencies The Company accrues for contingent obligations when it is probable that a liability has been incurred and the amount is reasonably estimable. When the Company 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 Company records a liability for the estimated loss. If the loss is not probable or the amount of the potential loss is not estimable, the Company 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 Company expenses legal fees as incurred.
Revenue RecognitionRevenue Recognition The Company generates all of its revenue through services agreements with its university partners (“Services Agreements”), pursuant to which the Company provides integrated technology and academic services, marketing and communication services, and back office services to its university partners in return for a percentage of tuition and fee revenue. The Company’s Services Agreements have initial terms ranging from 7-15 years , subject to renewal options, although certain agreements may give the university partners the right to terminate early if certain conditions are met. The Company’s Services Agreements have a single performance obligation, as the promises to provide the identified services are not distinct within the context of these agreements. The single performance obligation is delivered as our partners receive and consume benefits, which occurs ratably over a series of distinct service periods (daily or semester). Service revenue is recognized over time using the output method of measuring progress towards complete satisfaction of the single performance obligation. The output method provides a faithful depiction of the performance toward complete satisfaction of the performance obligation and can be tied to the time elapsed which is consumed evenly over the service period and is a direct measurement of the value provided to our partners. The service fees received from our partners over the term of the agreement are variable in nature in that they are dependent upon the number of students attending the university partner’s program and revenues generated from those students during the service period. Due to the variable nature of the consideration over the life of the service arrangement, the Company considered forming an expectation of the variable consideration to be received over the service life of this one performance obligation. However, since the performance obligation represents a series of distinct services, the Company recognizes the variable consideration that becomes known and billable because these fees relate to the distinct service period in which the fees are earned. The Company meets the criteria in the standard and exercises the practical expedient to not disclose the aggregate amount of the transaction price allocated to the single performance obligation that is unsatisfied as of the end of the reporting period. The Company does not disclose the value of unsatisfied performance obligations because the directly allocable variable consideration is allocated entirely to a wholly unsatisfied promise to transfer a service that forms part of a single performance obligation. The service fees are calculated and settled per the terms of the Services Agreements and result in a settlement duration of less than one year for all partners. There are no refunds or return rights under the Services Agreements. The Company’s receivables represent unconditional rights to consideration from our Services Agreements with our university partners. Accounts receivable, net is stated at amortized cost, net of any allowance for credit losses and contains billed and unbilled revenue. The Company evaluates the need for an allowance for credit losses using relevant available information about expected credit losses, including information about historical credit losses, past events, current conditions, and other factors which may affect the collectability of receivables. There have been allowance for credit losses established as of March 31, 2021 given historical collection experience. The Company will continue to review and revise its allowance methodology based on its collection experience with its partners. ​ For our partners with unbilled revenue, revenue recognition occurs in advance of billings. Billings for some university partners do not occur until after the service period has commenced and final enrollment information is available. Our unbilled revenue of $10,132 and $294 as of March 31, 2021 and December 31, 2020, respectively, are included in accounts receivable in our consolidated balance sheets. Deferred revenue represents the excess of amounts received as compared to amounts recognized in revenue on our consolidated statements of income as of the end of the reporting period, and such amounts are reflected as a current liability on our consolidated balance sheets. We generally receive payments for our services billed within 30 days of invoice. These payments are recorded as deferred revenue until the services are delivered and revenue is recognized.
Allowance for Credit LossesAllowance for Credit Losses The Company records its accounts receivable and Secured Note receivable at the net amount expected to be collected. Our accounts receivable are derived through education services provided to university partners. Our Secured Note receivable was derived through the sale of university related assets to our most significant university partner, GCU. The Company maintains an allowance for credit losses resulting from our university partners not making payments. The Company determines the adequacy of the allowance by periodically evaluating each university partners balance, considering their financial condition and credit history, and considering current and forecasted economic conditions. Since our transition to an education services company on July 1, 2018, and continued growth to Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments using a modified retrospective approach. This model requires consideration of a broader range of reasonable and supportable information and requires the Company to estimate expected credit losses including a measure of the expected risk of credit loss even if that risk is remote over the lifetime of the asset. Upon adoption, the Company recorded a reserve of on its long-term Secured Note receivable. The cumulative effect for the Company upon adoption of this new standard was . Bad debt expense is recorded as a technology and academic services expense in the consolidated income statements. The Company will continue to actively monitor the impact of the COVID-19 pandemic on expected credit losses.
Technology and Academic ServicesTechnology and Academic Services Technology and academic services consist primarily of costs related to ongoing maintenance of educational infrastructure, including online course delivery and management, student records, assessment, customer relations management and other internal administrative systems. This also includes costs to provide support for content development, faculty training, development and other faculty support, technology support, rent and occupancy costs for university partners’ off-campus locations, and assistance with state compliance. This expense category includes salaries, benefits and share-based compensation, information technology costs, amortization of content development costs and other costs associated with these support services. This category also includes an allocation of depreciation, amortization, and occupancy costs attributable to the provision of certain services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations.
Counseling Services and SupportCounseling Services and Support Counseling services and support consist primarily of costs including team-based counseling and other support to prospective and current students as well as financial aid processing. This expense category includes salaries, benefits and share-based compensation, and other costs such as dues, fees and subscriptions and travel costs. This category also includes an allocation of depreciation, amortization, lease expense, and occupancy costs attributable to the provision of certain services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations.
Marketing and CommunicationMarketing and Communication Marketing and communication includes lead acquisition, digital communication strategies, brand identity advertising, media planning and strategy, video, data science and analysis, marketing to potential students and other promotional and communication services. This expense category includes salaries, benefits and share-based compensation for marketing and communication personnel, brand advertising, marketing leads and other promotional and communication expenses. This category also includes an allocation of depreciation, amortization, lease expense, and occupancy costs attributable to the provision of certain services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations. Advertising costs are expensed as incurred.
General and AdministrativeGeneral and Administrative General and administrative expenses include salaries, benefits and share-based compensation of employees engaged in corporate management, finance, human resources, compliance, and other corporate functions. This category also includes an allocation of depreciation, amortization, lease expense, and occupancy costs attributable to the provision of these services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations.
Concentration of Credit RiskConcentration of Credit Risk The Company believes the credit risk related to cash equivalents and investments is limited due to its adherence to an investment policy that requires 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 Company’s cash equivalents and investments as of March 31, 2021 and December 31, 2020 consist of investments rated BBB or higher by at least one rating agency. Additionally, the Company 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. The Company is also subject to credit risk for its accounts receivable balance and its Secured Note. The Company has not experienced any losses on receivables since July 1, 2018, the date the Company transitioned to an educational service provider. To manage accounts receivable risk, the Company maintains an allowance for doubtful accounts, if needed. The Company monitors the credit risk exposure of the counterparty of the Secured Note to determine whether an adjustment to allowance for credit loss is necessary. A significant deterioration in the financial viability of our counterparty and corresponding decline in the fair value of the collateralized assets could impact the collectability risk of the Secured Note. Our dependence on our most significant university partner, which is also the counterparty to the Secured Note, with
Segment InformationSegment Information The Company operates as a single education services company using a core infrastructure that serves the curriculum and educational delivery needs of its university partners. The Company’s Chief Executive Officer manages the Company’s operations as a whole and no expense or operating income information is generated or evaluated on any component level.
Accounting Pronouncements Adopted in 2020 and Recent Accounting PronouncementsAccounting Pronouncements Adopted in 2021 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This ASU is intended to simplify various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods, with early adoption permitted. Accordingly, the standard was adopted by the Company as of January 1, 2021. Most amendments within this ASU are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The adoption of this guidance did not have a material impact on the Company’s financial condition, results of operations or statements of cash flows. Recent Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effect of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company plans to elect the optional expedient for its credit facility by prospectively adjusting the effective interest rate if the cessation of the London Interbank Offered Rate (LIBOR) occurs. The Company does not believe the adoption of the reference rate reform will have a material impact on the Company’s financial condition, results of operations or statements of cash flows. The Company 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 (Tables)

Investments (Tables)3 Months Ended
Mar. 31, 2021
Investments
Schedule of reconciliation of available-for-sale investments from cost basis to fair value​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, 2021 ​ ​ ​ Gross Gross Estimated ​ ​ Adjusted ​ Unrealized ​ Unrealized ​ Fair ​ ​ Cost ​ Gains ​ (Losses) ​ Value Corporate bonds ​ $ 19,228 ​ $ 9 ​ $ (158) ​ $ 19,079 Commercial paper ​ ​ 5,991 ​ ​ — ​ ​ (3) ​ ​ 5,988 Municipal securities ​ ​ 1,433 ​ ​ ​ ​ ​ (1) ​ ​ 1,432 Asset backed securities ​ ​ 1,931 ​ ​ ​ ​ ​ (2) ​ ​ 1,929 Total investments ​ $ 28,583 ​ $ 9 ​ $ (164) ​ $ 28,428
Schedule of available-for-sale securities maturities​ ​ ​ ​ ​ Available-for-sale securities maturing as of December 31: ​ ​ ​ 2021 (Remainder of year) ​ ​ 9,153 2022 ​ ​ 2,302 2023 ​ ​ 4,041 2024 ​ ​ 3,338 2025 ​ ​ 1,019 Thereafter ​ ​ 8,575 Total ​ ​ 28,428

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)3 Months Ended
Mar. 31, 2021
Net Income Per Common Share
Schedule of weighted average number of common shares outstanding​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ ​ March 31, ​ ​ 2021 2020 Denominator: Basic weighted average shares outstanding 46,084 47,455 Effect of dilutive stock options and restricted stock 216 309 Diluted weighted average shares outstanding 46,300 47,764

Allowance for Credit Losses (Ta

Allowance for Credit Losses (Tables)3 Months Ended
Mar. 31, 2021
Allowance for Credit Losses
Schedule of allowance for credit losses​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at ​ ​ Balance at ​ ​ Beginning of ​ Charged to ​ Deductions/ ​ End of ​ ​ Period (1) ​ Expense ​ Transfers (2) ​ Period Allowance for credit losses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, 2021 ​ $ 5,000 — — ​ $ 5,000 Three months ended March 31, 2020 ​ $ 5,000 — — ​ $ 5,000 ​ ​ ​ (1) Amount represents the cumulative effect of the adoption of ASU No. 2016-13 on the Secured Note. (2) Deductions represent accounts written off, net of recoveries.

Property and Equipment (Tables)

Property and Equipment (Tables)3 Months Ended
Mar. 31, 2021
Property and Equipment
Schedule of property and equipment​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, December 31, ​ ​ 2021 ​ 2020 Land ​ $ 5,579 ​ $ 5,579 Land improvements ​ 2,242 ​ 2,242 Buildings ​ 51,399 ​ 51,399 Buildings and leasehold improvements ​ 16,670 ​ 14,352 Computer equipment ​ 102,891 ​ 100,575 Furniture, fixtures and equipment ​ 15,912 ​ 15,439 Internally developed software ​ 47,222 ​ 46,981 Construction in progress ​ 8,267 ​ 5,043 ​ ​ 250,182 ​ 241,610 Less accumulated depreciation and amortization ​ (118,253) ​ (112,953) Property and equipment, net ​ $ 131,929 ​ $ 128,657

Amortizable Intangible Assets (

Amortizable Intangible Assets (Tables)3 Months Ended
Mar. 31, 2021
Amortizable Intangible Assets
Summary of amortizable intangible assets​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2021 ​ Estimated ​ Gross ​ ​ ​ ​ Net ​ Average Useful ​ Carrying ​ Accumulated ​ Carrying ​ Life (in years) ​ Amount ​ Amortization ​ Amount University partner relationships 25 $ 210,000 ​ (18,467) $ 191,533 Trade names 1 ​ ​ 280 ​ ​ (280) ​ — Total amortizable intangible assets, net ​ ​ $ 210,280 ​ ​ (18,747) ​ $ 191,533
Schedule of amortization expense for university partner relationships and trade namesAmortization expense for university partner relationships and trade names for the years ending December 31: ​ ​ ​ Remainder of 2021 $ 6,314 2022 8,419 2023 ​ 8,419 2024 ​ 8,419 2025 ​ 8,419 Thereafter 151,543 ​ $ 191,533

Leases (Tables)

Leases (Tables)3 Months Ended
Mar. 31, 2021
Leases
Schedule of future payment obligations with respect to operating leases​ ​ ​ ​ ​ Year Ending December 31, Amount Remainder of 2021 ​ $ 7,092 2022 ​ ​ 8,992 2023 ​ ​ 8,469 2024 ​ ​ 7,967 2025 ​ ​ 7,645 Thereafter ​ ​ 31,106 Total lease payments ​ $ 71,271 Less interest ​ ​ 8,688 Present value of lease liabilities ​ $ 62,583

Notes Payable and Other Noncu_2

Notes Payable and Other Noncurrent Liabilities (Tables)3 Months Ended
Mar. 31, 2021
Notes Payable and Other Noncurrent Liabilities
Schedule of notes payable​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, ​ As of December 31, ​ 2021 2020 Notes Payable ​ ​ Note payable, quarterly payment of $8,368 starting December 31, 2019; interest at 30-Day LIBOR plus 2.00% (2.12% at March 31, 2021) through January 22, 2024 ​ $ 99,488 ​ $ 107,774 Revolving line of credit; interest at 30-Day LIBOR plus 2.0% (2.12% at March 31, 2021) ​ ​ — ​ ​ — ​ ​ 99,488 ​ 107,774 Less: Current portion ​ 33,144 ​ 33,144 ​ ​ $ 66,344 ​ $ 74,630
Schedule of payments due under notes payable obligationsPayments due under the notes payable obligations are as follows as of December 31: ​ ​ ​ ​ Remainder of 2021 $ 24,858 2022 ​ ​ 33,144 2023 ​ ​ 33,145 2024 ​ ​ 8,341 2025 ​ ​ — Total ​ $ 99,488

Share-Based Compensation Plans

Share-Based Compensation Plans (Tables)3 Months Ended
Mar. 31, 2021
Share-Based Compensation
Schedule of activity related to restricted stock granted under company's incentive plan​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average ​ ​ Total ​ Grant Date ​ ​ Shares ​ Fair Value per Share Outstanding as of December 31, 2020 419 ​ $ 83.43 Granted 180 ​ $ 85.97 Vested (141) ​ $ 74.41 Forfeited, canceled or expired — ​ $ — Outstanding as of March 31, 2021 458 ​ $ 87.20
Schedule of activity related to stock options granted under company's incentive plan​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Summary of Stock Options Outstanding ​ ​ Weighted Weighted ​ ​ ​ ​ ​ ​ Average ​ Average ​ ​ ​ ​ ​ ​ ​ Exercise ​ Remaining ​ Aggregate ​ ​ Total ​ Price per ​ Contractual ​ Intrinsic ​ ​ Shares ​ Share ​ Term (Years) ​ Value ($) Outstanding as of December 31, 2020 176 ​ $ 15.34 ​ ​ ​ ​ ​ Granted — ​ $ — ​ Exercised (176) ​ $ 15.34 ​ Forfeited, canceled or expired — ​ $ — ​ Outstanding as of March 31, 2021 — ​ $ — — ​ $ — Exercisable as of March 31, 2021 — ​ $ — — ​ $ — ​
Schedule of share-based compensation expenseThe table below outlines share-based compensation expense for the three months ended March 31, 2021 and 2020 related to restricted stock granted: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 Technology and academic services ​ ​ $ 606 ​ $ 518 Counseling services and support ​ ​ 1,488 ​ 1,330 Marketing and communication ​ ​ 30 ​ 25 General and administrative ​ ​ 895 ​ 783 Share-based compensation expense included in operating expenses ​ ​ 3,019 ​ 2,656 Tax effect of share-based compensation ​ ​ (755) ​ (664) Share-based compensation expense, net of tax ​ ​ $ 2,264 ​ $ 1,992

Nature of Business (Details)

Nature of Business (Details) $ in ThousandsJan. 22, 2019USD ($)Mar. 31, 2021item
Nature Of Operations
Number of university partners26
Orbis Education
Nature Of Operations
Purchase price | $ $ 361,184
Grand Canyon University
Nature Of Operations
Number of colleges operated9
Number of off-campus classroom and laboratory sites2

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Details) $ in ThousandsJul. 01, 2018USD ($)Mar. 31, 2021USD ($)segmentitemMar. 31, 2020USD ($)Sep. 30, 2020USD ($)Dec. 31, 2019USD ($)Dec. 31, 2020USD ($)
Summary Of Significant Accounting Policies
Other assets $ 2,133 $ 1,844
Number of operating segments | segment1
Number of reporting units | segment1
Unbilled revenue $ 10,132 294
Amounts written off0
Allowance for doubtful accounts0
Lease liabilities62,583
Secured Note receivable, carrying value964,912 964,912
Secured Note receivable, fair value $ 1,045,591 1,049,458
Number of university partners | item26
Allowance for credit losses $ 5,000 $ 5,000 $ 5,000 5,000
Stockholders equity1,588,678 1,448,008 1,443,433 1,574,329
Income tax expense $ 19,985 $ 22,791
Revenue Benchmark | Customer Concentration Risk
Summary Of Significant Accounting Policies
Concentration risk percentage87.40%87.90%
Computer Software
Summary Of Significant Accounting Policies
Estimated average useful life3 years
Capitalized Content Development
Summary Of Significant Accounting Policies
Estimated average useful life4 years
Other assets $ 1,166 $ 1,198
Minimum
Summary Of Significant Accounting Policies
Initial contract terms of service agreements7 years
Maximum
Summary Of Significant Accounting Policies
Initial contract terms of service agreements15 years
Grand Canyon University
Summary Of Significant Accounting Policies
Purchase price of assets $ 870,097
Interest rate on Secured Note6.00%
Term of additional lending to GCU for approved capital expenditures3 years
Funding provided to GCU, net of repayments $ 99,815
Master Services Agreement | Grand Canyon University
Summary Of Significant Accounting Policies
Percentage of tuition and fee revenue used for closing of purchase agreement60.00%
Cumulative Effect of Adoption Adjustment | ASU 2016-13
Summary Of Significant Accounting Policies
Allowance for credit losses $ 5,000 5,000
Stockholders equity(3,832)(3,832)
Income tax expense $ 1,168 $ 1,168

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Acquisition (Details) - USD ($) $ in ThousandsJan. 22, 2019Mar. 31, 2021Dec. 31, 2020
Acquisition
Goodwill $ 160,766 $ 160,766
Orbis Education
Acquisition
Purchase price $ 361,184
Intangible assets210,280
Goodwill157,825
Orbis Education | University partner relationships
Acquisition
Intangible assets $ 210,000

Investments (Details)

Investments (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Dec. 31, 2020
Investments
Investments - Trading $ 8,015 $ 10,840
Available-for-sale investments
Adjusted Cost28,583
Gross Unrealized Gains9
Gross Unrealized (Losses)(164)
Estimated Fair Value28,428
Unrealized gains on available-for-sale securities, net of tax(120)
Corporate bonds
Available-for-sale investments
Adjusted Cost19,228
Gross Unrealized Gains9
Gross Unrealized (Losses)(158)
Estimated Fair Value19,079
Commercial paper
Available-for-sale investments
Adjusted Cost5,991
Gross Unrealized (Losses)(3)
Estimated Fair Value5,988
Municipal securities
Available-for-sale investments
Adjusted Cost1,433
Gross Unrealized (Losses)(1)
Estimated Fair Value1,432
Asset-backed securities
Available-for-sale investments
Adjusted Cost1,931
Gross Unrealized (Losses)(2)
Estimated Fair Value $ 1,929

Investments - Maturities of Ava

Investments - Maturities of Available-for-sale Investments (Details) $ in ThousandsMar. 31, 2021USD ($)
Investments
2021 (Remainder of year) $ 9,153
20222,302
20234,041
20243,338
20251,019
Thereafter8,575
Total $ 28,428

Net Income Per Common Share - S

Net Income Per Common Share - Summary of Weighted Average Number of Common Shares Outstanding (Details) - shares shares in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Denominator:
Basic weighted average shares outstanding46,084 47,455
Effect of dilutive stock options and restricted stock216 309
Diluted weighted average shares outstanding46,300 47,764

Net Income Per Common Share - A

Net Income Per Common Share - Additional Information (Details) - shares shares in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Restricted Stock
Antidilutive securities excluded from computation of earnings per share
Stock awards outstanding excluded from the calculation of diluted earnings1 284

Allowance for Credit Losses (De

Allowance for Credit Losses (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020Mar. 31, 2020
Allowance for credit losses
Balance at Beginning of Period $ 5,000 $ 5,000 $ 5,000
Balance at End of Period $ 5,000 5,000 5,000
Cumulative Effect of Adoption Adjustment | ASU 2016-13
Allowance for credit losses
Balance at Beginning of Period $ 5,000 5,000
Balance at End of Period $ 5,000

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Property and Equipment
Property and equipment $ 250,182 $ 241,610
Less accumulated depreciation and amortization(118,253)(112,953)
Property and equipment, net131,929 128,657
Land
Property and Equipment
Property and equipment5,579 5,579
Land Improvements
Property and Equipment
Property and equipment2,242 2,242
Buildings
Property and Equipment
Property and equipment51,399 51,399
Buildings and Leasehold Improvements
Property and Equipment
Property and equipment16,670 14,352
Computer Equipment
Property and Equipment
Property and equipment102,891 100,575
Furniture, Fixtures and Equipment
Property and Equipment
Property and equipment15,912 15,439
Internally Developed Software
Property and Equipment
Property and equipment47,222 46,981
Construction in Progress
Property and Equipment
Property and equipment $ 8,267 $ 5,043

Amortizable Intangible Assets -

Amortizable Intangible Assets - Net Intangible Assets (Details) $ in Thousands3 Months Ended
Mar. 31, 2021USD ($)
Intangible Assets
Gross Carrying Amount $ 210,280
Accumulated Amortization(18,747)
Net Carrying Amount $ 191,533
University partner relationships
Intangible Assets
Estimated average useful life25 years
Gross Carrying Amount $ 210,000
Accumulated Amortization(18,467)
Net Carrying Amount $ 191,533
Trade names
Intangible Assets
Estimated average useful life1 year
Gross Carrying Amount $ 280
Accumulated Amortization $ (280)

Amortizable Intangible Assets_2

Amortizable Intangible Assets - Amortization Expense for Developed Curricula and Student Relationships (Details) $ in ThousandsMar. 31, 2021USD ($)
Amortization expense
Net Carrying Amount $ 191,533
University partner relationships and trade names
Amortization expense
Remainder of 20216,314
20228,419
20238,419
20248,419
20258,419
Therefore151,543
Net Carrying Amount $ 191,533

Leases (Details)

Leases (Details)3 Months Ended
Mar. 31, 2021USD ($)leaseMar. 31, 2020USD ($)
Leases
Lessee, Operating Lease, Existence of Option to Extend [true false]false
Operating lease costs $ 2,435,000 $ 1,441,000
Non-cancelable operating lease commitments not yet commenced $ 0
Weighted-average remaining lease term8 years 4 months 9 days
Weighted-average discount rate of operating leases3.21%
Number of financing leases | lease0
Minimum
Leases
Term of operating leases10 months
Maximum
Leases
Term of operating leases10 years

Leases - Future Payment Obligat

Leases - Future Payment Obligations (Details) $ in ThousandsMar. 31, 2021USD ($)
Leases
Remainder of 2021 $ 7,092
20228,992
20238,469
20247,967
20257,645
Thereafter31,106
Total lease payments71,271
Less interest8,688
Present value of lease liabilities $ 62,583

Notes Payable and Other Noncu_3

Notes Payable and Other Noncurrent Liabilities (Details) - USD ($) $ in ThousandsOct. 31, 2019Jan. 22, 2019
Amended and restated credit agreement
Notes Payable and Other Noncurrent Liabilities
Amount of credit facilities $ 325,000
Term of credit facility5 years
Amended and restated credit agreement | Term loan facility
Notes Payable and Other Noncurrent Liabilities
Amount of credit facilities $ 243,750
Loan modification costs1,639
Amended and restated credit agreement | Revolving credit facility
Notes Payable and Other Noncurrent Liabilities
Amount of credit facilities81,250
Loan modification costs $ 596
Amendment - October 31, 2019 | Term loan facility
Notes Payable and Other Noncurrent Liabilities
Amount of credit facilities $ 150,625
Increase (decrease) in facility(68,750)
Amendment - October 31, 2019 | Revolving credit facility
Notes Payable and Other Noncurrent Liabilities
Amount of credit facilities150,000
Increase (decrease) in facility $ 68,750

Notes Payable and Other Noncu_4

Notes Payable and Other Noncurrent Liabilities - Current and Noncurrent Portions of Notes Payable (Details) - USD ($) $ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2021Dec. 31, 2020
Notes Payable and Other Noncurrent Liabilities
Less: Current portion $ 33,144 $ 33,144
Notes payable, less current portion66,344 74,630
Amended and restated credit agreement
Notes Payable and Other Noncurrent Liabilities
Notes payable including current portion99,488 107,774
Less: Current portion33,144 33,144
Notes payable, less current portion66,344 74,630
Amended and restated credit agreement | Term loan facility
Notes Payable and Other Noncurrent Liabilities
Quarterly payment of notes payable8,368
Notes payable including current portion $ 99,488 $ 107,774
Amended and restated credit agreement | Term loan facility | 30-Day LIBOR
Notes Payable and Other Noncurrent Liabilities
Margin on variable interest rate2.00%2.00%
Interest rate of notes payable2.12%
Amended and restated credit agreement | Revolving credit facility | 30-Day LIBOR
Notes Payable and Other Noncurrent Liabilities
Margin on variable interest rate2.00%
Interest rate of notes payable2.12%

Notes Payable and Other Noncu_5

Notes Payable and Other Noncurrent Liabilities - Payments Due Under Notes Payable Obligations (Details) - Amended and restated credit agreement $ in ThousandsMar. 31, 2021USD ($)
Payments due under notes payable obligations:
Remainder of 2021 $ 24,858
202233,144
202333,145
20248,341
Total $ 99,488

Share-Based Compensation Plan_2

Share-Based Compensation Plans - Additional Information (Details) shares in Thousands, $ in Thousands3 Months Ended
Mar. 31, 2021USD ($)itemshares
2017 Plan
Share-based Compensation Plans
Shares available for grant1,418
Maximum | 2017 Plan
Share-based Compensation Plans
Shares available for grant3,000
Restricted Stock
Share-based Compensation Plans
Shares granted180
Shares withheld for taxes56
Common stock in lieu of taxes | $ $ 5,994
Restricted Stock | 2008 Plan
Share-based Compensation Plans
Shares granted180
Vesting period5 years
Number of anniversaries of the vesting date following the date of grant | item4
Restricted Stock | Share-based Compensation Award, Tranche One | 2008 Plan
Share-based Compensation Plans
Vesting right percentage20.00%
Restricted Stock | Share-based Compensation Award, Tranche Two | 2008 Plan
Share-based Compensation Plans
Vesting right percentage20.00%
Restricted Stock | Share-based Compensation Award, Tranche Three | 2008 Plan
Share-based Compensation Plans
Vesting right percentage20.00%
Restricted Stock | Share-based Compensation Award Tranche Four | 2008 Plan
Share-based Compensation Plans
Vesting right percentage20.00%
Restricted Stock | Share-based Compensation Award Tranche Five | 2008 Plan
Share-based Compensation Plans
Vesting right percentage20.00%
Stock Options
Share-based Compensation Plans
Options granted0

Share-Based Compensation Plan_3

Share-Based Compensation Plans - Summary of Activity Related to Restricted Stock Granted under Company's Incentive Plan (Details) - Restricted Stock shares in Thousands3 Months Ended
Mar. 31, 2021$ / sharesshares
Total Shares
Total Shares, Outstanding, Beginning Balance | shares419
Total Shares, Granted | shares180
Total Shares, Vested | shares(141)
Total Shares, Outstanding, Ending Balance | shares458
Weighted Average Grant Date
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares $ 83.43
Weighted Average Grant Date Fair Value, Granted | $ / shares85.97
Weighted Average Grant Date Fair Value, Vested | $ / shares74.41
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares $ 87.20

Share-Based Compensation Plan_4

Share-Based Compensation Plans - Summary of Activity Related to Stock Options Granted under Company's Incentive Plan (Details) - Stock Options shares in Thousands3 Months Ended
Mar. 31, 2021$ / sharesshares
Total Shares
Total Shares outstanding, Beginning balance176
Total Shares, Granted0
Total Shares, Exercised(176)
Weighted Average Exercise Price Per Share
Weighted Average Exercise Price per Share Outstanding, Beginning balance | $ / shares $ 15.34
Weighted Average Exercise Price per Share, Exercised | $ / shares $ 15.34

Share-Based Compensation Plan_5

Share-Based Compensation Plans - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Share-based Compensation Expense
Share-based compensation expense $ 3,019 $ 2,656
Tax effect of share-based compensation(755)(664)
Share-based compensation expense, net of tax2,264 1,992
Technology and Academic Services
Share-based Compensation Expense
Share-based compensation expense606 518
Counseling Services and Support
Share-based Compensation Expense
Share-based compensation expense1,488 1,330
Marketing and Communication
Share-based Compensation Expense
Share-based compensation expense30 25
University related expenses
Share-based Compensation Expense
Share-based compensation expense $ 895 $ 783

Treasury Stock (Details)

Treasury Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in ThousandsMay 04, 2021Mar. 10, 2021Jan. 31, 2021May 04, 2021Mar. 31, 2021Mar. 31, 2020
Treasury Stock
Common stock acquired, cost $ 63,348 $ 60,737
Accelerated Share Repurchase March 10, 2021
Treasury Stock
Stock price on initial delivery $ 101.49
Number of repurchased shares delivered in initial delivery276
Initial share delivery as a percentage of the number of shares initially underlying the ASR agreement80.00%
Number of additional repurchased shares delivered at final settlement46
Aggregate number of shares delivered322
Final average cost per share $ 108.76
Accelerated Share Repurchase March 10, 2021 | Maximum
Treasury Stock
Targeted repurchase of common stock $ 35,000
Common stock repurchase authorization
Treasury Stock
Increase in stock repurchase plan authorized $ 100,000
Authorized amount for repurchase of common stock $ 500,000
Common stock acquired, shares567
Common stock acquired, cost $ 56,348
Remaining authorized repurchase amount $ 191,924