Strategic Education (STRA) 10-Q 3 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 13, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	STRAYER EDUCATION INC
Entity Central Index Key	1,013,934
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		11,300,671

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 165,867	$ 155,933
Tuition receivable, net	24,997	23,122
Other current assets	10,558	11,293
Total current assets	201,422	190,348
Property and equipment, net	73,686	73,763
Deferred income taxes	23,803	24,452
Goodwill	20,744	20,744
Other assets	12,155	11,971
Total assets	331,810	321,278
Current liabilities:
Accounts payable and accrued expenses	45,806	46,177
Income taxes payable	2,541	1,038
Contract liabilities	23,931	21,851
Total current liabilities	72,278	69,066
Other long-term liabilities	41,240	43,015
Total liabilities	113,518	112,081
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.01; 20,000,000 shares authorized; 11,167,425 and 11,300,671 shares issued and outstanding at December 31, 2017 and March 31, 2018, respectively	113	112
Additional paid-in capital	49,766	47,079
Retained earnings	168,413	162,006
Total stockholders' equity	218,292	209,197
Total liabilities and stockholders' equity	$ 331,810	$ 321,278

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Balance Sheets [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	11,300,671	11,167,425
Common stock, shares outstanding	11,300,671	11,167,425

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statements of Income [Abstract]
Revenues	$ 116,469	$ 114,912
Costs and expenses:
Instruction and educational support	63,776	61,416
Marketing	20,124	18,718
Admissions advisory	4,676	4,716
General and administration	11,218	11,619
Merger costs	5,347
Total costs and expenses	105,141	96,469
Income from operations	11,328	18,443
Investment income	448	181
Interest expense	159	159
Income before income taxes	11,617	18,465
Provision for income taxes	2,150	7,887
Net income	$ 9,467	$ 10,578
Earnings per share:
Basic	$ 0.88	$ 1
Diluted	$ 0.84	$ 0.95
Weighted average shares outstanding:
Basic	10,745	10,630
Diluted	11,311	11,121

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Total
Beginning balance at Dec. 31, 2016	$ 111	$ 35,453	$ 152,810	$ 188,374
Beginning balance, shares at Dec. 31, 2016	11,093,489
Restricted stock grants, net of forfeitures	$ 1	(1)
Restricted stock grants, net of forfeitures, shares	66,395
Stock-based compensation		2,427		2,427
Common stock dividends			(2,853)	(2,853)
Net income			10,578	10,578
Ending balance at Mar. 31, 2017	$ 112	37,879	160,535	198,526
Ending balance, shares at Mar. 31, 2017	11,159,884
Impact of adoption of new accounting standards | Accounting Standards Update 2014-09			(171)	(171)
Beginning balance at Dec. 31, 2017	$ 112	47,079	162,006	209,197
Beginning balance, shares at Dec. 31, 2017	11,167,425
Restricted stock grants, net of forfeitures	$ 1	(1)
Restricted stock grants, net of forfeitures, shares	133,246
Stock-based compensation		2,688		2,688
Common stock dividends			(2,889)	(2,889)
Net income			9,467	9,467
Ending balance at Mar. 31, 2018	$ 113	$ 49,766	$ 168,413	$ 218,292
Ending balance, shares at Mar. 31, 2018	11,300,671

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income	$ 9,467	$ 10,578
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of gain on sale of assets		(71)
Amortization of deferred rent	(417)	(477)
Amortization of deferred financing costs	66	66
Depreciation and amortization	5,035	4,370
Deferred income taxes	(1,842)	762
Stock-based compensation	2,688	2,427
Changes in assets and liabilities:
Tuition receivable, net	(2,249)	19
Other current assets	931	616
Other assets	115	397
Accounts payable and accrued expenses	(867)	(2,836)
Income taxes payable and income taxes receivable	3,995	7,089
Contract liabilities	1,192	2,441
Other long-term liabilities	(1,065)	(846)
Net cash provided by operating activities	17,049	24,535
Cash flows from investing activities:
Purchases of property and equipment	(4,233)	(3,841)
Net cash used in investing activities	(4,233)	(3,841)
Cash flows from financing activities:
Common dividends paid	(2,889)	(2,853)
Net cash used in financing activities	(2,889)	(2,853)
Net increase in cash and cash equivalents	9,927	17,841
Cash, cash equivalents, and restricted cash - beginning of period	156,448	129,758
Cash, cash equivalents, and restricted cash - end of period	166,375	147,599
Noncash transactions:
Purchases of property and equipment included in accounts payable	$ 2,385	$ 571

Nature of Operations

Nature of Operations	3 Months Ended
	Mar. 31, 2018
Nature of Operations [Abstract]
Nature of Operations	1. Nature of Operations Strayer Education, Inc. (the “Company”), a Maryland corporation, conducts its operations through its wholly-owned subsidiaries, Strayer University (the “University”) and New York Code and Design Academy (“NYCDA”). The University is an accredited institution of higher education that provides undergraduate and graduate degrees in various fields of study online and through physical campuses, predominantly located in the eastern United States. NYCDA is a New York City-based provider of web and application software development courses. NYCDA courses are delivered primarily on-ground to students seeking to further their career in software application development. The Company has only one reportable segment

Merger with Capella Education C

Merger with Capella Education Company	3 Months Ended
	Mar. 31, 2018
Merger with Capella Education Company [Abstract]
Merger with Capella Education Company	2. Merger with Capella Education Company On October 29, 2017, the Company entered into a merger agreement with Capella Education Company (“Capella”). Capella provides post-secondary education and job-skills programs primarily through its subsidiary Capella University. The merger was approved by the Company’s stockholders and by Capella’s shareholders on January 19, 2018. Upon consummation of the merger, Capella will become a wholly-owned subsidiary of the Company and will continue to offer its education programs through Capella University. Pursuant to the merger, the Company will issue 0.875 shares of the Company’s Common Stock for each issued and outstanding share of Capella Common Stock. Outstanding equity awards held by current Capella employees and certain non-employee directors of Capella will be assumed by the Company and converted into comparable Company awards at the exchange ratio. Outstanding equity awards held by Capella non-employee directors who will not serve as directors of the Company after completion of the merger and by former Capella employees will be settled upon completion of the merger in exchange for cash payments as specified in the merger agreement. Following the merger, stockholders of the Company and Capella are expected to own approximately 52% and 48%, respectively, of the outstanding combined company shares on a fully diluted basis, based on the number of shares currently expected to be outstanding immediately prior to the effective time of the merger. Also in connection with the completion of the merger, and as approved by the Company’s shareholders on January 19, 2018, the Company will change its name to Strategic Education, Inc. and increase the number of shares of authorized Common Stock to 32,000,000. The merger is anticipated to close in the third quarter of 2018, subject to the satisfaction of customary closing conditions, including the receipt of approvals by the Department of Education, state educational regulators, and relevant accreditation bodies. During the three months ended March 31, 2018, the Company incurred $5.3 million of merger costs. These costs were primarily attributable to legal, accounting, and integration support services incurred by the Company in connection with the proposed merger, and are included in merger costs in the accompanying unaudited condensed consolidated statement of income for the three months ended March 31, 2018.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
Significant Accounting Policies [Abstract]
Significant Accounting Policies	3. Significant Accounting Policies Financial Statement Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in the consolidated financial statements. All information as of December 31, 2017 and March 31, 2017 and 2018, and for the three months ended March 31, 2017 and 2018 is unaudited but, in the opinion of management, contains all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the condensed consolidated financial position, results of operations, and cash flows of the Company. Certain amounts in the prior period financial statements have been reclassified to conform to the current period’s presentation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted. In addition, the Company had no items of other comprehensive income in the periods presented and accordingly comprehensive income is equal to net income. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the full fiscal year. New accounting standard for revenue recognition In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) which supersedes the prior revenue recognition requirements in Topic 605, Revenue Recognition , and most industry-specific guidance. During 2016 and 2017, the FASB issued additional ASUs amending certain aspects of ASU 2014-09. On January 1, 2018, the Company adopted the new accounting standard and all the related amendments (“ASC 606”) using the modified retrospective method. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company expects the impact of the adoption of the new standard to be immaterial to the Company’s net income on an ongoing basis. Refer to Note 4 for further discussion. Restricted Cash A significant portion of the Company’s revenues are funded by various federal and state government programs. The Company generally does not receive funds from these programs prior to the start of the corresponding academic term. The Company may be required to return certain funds for students who withdraw from the University during the academic term. The Company had approximately $15,000 and $8,000 as of December 31, 2017 and March 31, 2018, respectively, of these unpaid obligations, which are recorded as restricted cash and included in other current assets in the unaudited condensed consolidated balance sheets. As part of commencing operations in Pennsylvania in 2003, the Company is required to maintain a “minimum protective endowment” of at least $0.5 million in an interest-bearing account as long as the Company operates its campuses in the state. The Company holds these funds in an interest-bearing account which is included in other assets. The following table illustrates the reconciliation of cash, cash equivalents, and restricted cash shown in the unaudited condensed consolidated statements of cash flows as of March 31, 2017 and 2018 (in thousands): For the three months ended March 31, 2017 2018 Cash and cash equivalents $ 147,099 $ 165,867 Restricted cash included in other current assets — 8 Restricted cash included in other long-term assets 500 500 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 147,599 $ 166,375 Tuition Receivable and Allowance for Doubtful Accounts The Company records tuition receivable and contract liabilities for its students upon the start of the academic term or program. Therefore, at the end of the quarter (and academic term), tuition receivable generally represents amounts due from students for educational services already provided and contract liabilities generally represents advance payments from students for academic services to be provided in the future. Tuition receivables are not collateralized; however, credit risk is minimized as a result of the diverse nature of the University’s student base. An allowance for doubtful accounts is established primarily based upon historical collection rates by age of receivable, net of estimated recoveries. These collection rates incorporate historical performance based on a student’s current enrollment status and likelihood of future enrollment. The Company periodically assesses its methodologies for estimating bad debts in consideration of actual experience. The Company’s tuition receivable and allowance for doubtful accounts were as follows as of December 31, 2017 and March 31, 2018 (in thousands): December 31, 2017 March 31, 2018 Tuition receivable $ 35,809 $ 38,772 Allowance for doubtful accounts (12,687) (13,775) Tuition receivable, net $ 23,122 $ 24,997 Approximately $2.9 million and $3.3 million of tuition receivable are included in other assets as of December 31, 2017 and March 31, 2018, respectively, because these amounts are expected to be collected after 12 months. The following table illustrates changes in the Company’s allowance for doubtful accounts for the three months ended March 31, 2017 and 2018 (in thousands): For the three months ended March 31, 2017 2018 Allowance for doubtful accounts, beginning of period $ 10,201 $ 12,687 Additions charged to expense 4,382 6,391 Write-offs, net of recoveries (3,763) (5,303) Allowance for doubtful accounts, end of period $ 10,820 $ 13,775 Fair Value The Fair Value Measurement Topic, ASC 820-10 (“ASC 820-10”), establishes a framework for measuring fair value, establishes a fair value hierarchy based upon the observability of inputs used to measure fair value, and expands disclosures about fair value measurements. Assets and liabilities are classified in their entirety within the fair value hierarchy based on the lowest level input that is significant to the fair value measurement. Under ASC 820-10, fair value of an investment is the price that would be received to sell an asset or to transfer a liability to an entity in an orderly transaction between market participants at the measurement date. The hierarchy gives the highest priority to assets and liabilities with readily available quoted prices in an active market and lowest priority to unobservable inputs which require a higher degree of judgment when measuring fair value, as follows: · Level 1 assets or liabilities use quoted prices in active markets for identical assets or liabilities as of the measurement date; · Level 2 assets or liabilities use observable inputs, other than quoted market prices, that are either directly or indirectly observable in the marketplace for identical or similar assets and liabilities; and · Level 3 assets or liabilities use unobservable inputs that are supported by little or no market activity. The Company’s assets and liabilities that are subject to fair value measurement are categorized in one of the three levels above. Fair values are based on the inputs available at the measurement dates, and may rely on certain assumptions that may affect the valuation of fair value for certain assets or liabilities. Goodwill and Indefinite-Lived Intangible Assets Goodwill represents the excess of the purchase price of an acquired business over the amount assigned to the assets acquired and liabilities assumed. Indefinite-lived intangible assets, which include trade names, are recorded at fair market value on their acquisition date. An indefinite life was assigned to the trade names because they have the continued ability to generate cash flows indefinitely. Goodwill and the indefinite-lived intangible assets are assessed at least annually for impairment during the fourth quarter, or more frequently if events occur or circumstances change between annual tests that would more likely than not reduce the fair value of the respective reporting unit below its carrying amount. No events or circumstances occurred in the three months ended March 31, 2018 to indicate an impairment to goodwill or the indefinite-lived intangible assets. Authorized Stock The Company has authorized 20,000,000 shares of common stock, par value $.01, of which 11,167,425 and 11,300,671 shares were issued and outstanding as of December 31, 2017 and March 31, 2018, respectively. The Company also has authorized 8,000,000 shares of preferred stock, none of which is issued or outstanding. Before any preferred stock may be issued in the future, the Board of Directors would need to establish the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends, qualifications, and the terms or conditions of the redemption of the preferred stock. In March 2018, the Company’s Board of Directors declared a regular, quarterly cash dividend of $0.25 per share of common stock. The dividend was paid on March 19, 2018. Stock-Based Compensation As required by the Stock Compensation Topic, ASC 718, the Company measures and recognizes compensation expense for all share-based payment awards made to employees and directors, including employee stock options, restricted stock, restricted stock units, and employee stock purchases related to the Company’s Employee Stock Purchase Plan, based on estimated fair values. Stock-based compensation expense recognized in the unaudited condensed consolidated statements of income for each of the three months ended March 31, 2017 and 2018 is based on awards ultimately expected to vest and, therefore, has been adjusted for estimated forfeitures. The Company estimates forfeitures at the time of grant and revises the estimate, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The forfeiture rate used is based on historical experience. The Company also assesses the likelihood that performance criteria associated with performance-based awards will be met. If it is determined that it is more likely than not that performance criteria will not be achieved, the Company revises its estimate of the number of shares it believes will ultimately vest. See note 7 for additional information. Net Income Per Share Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the periods. Diluted earnings per share reflects the potential dilution that could occur assuming conversion or exercise of all dilutive unexercised stock options, restricted stock, and restricted stock units. The dilutive effect of stock awards was determined using the treasury stock method. Under the treasury stock method, all of the following are assumed to be used to repurchase shares of the Company’s common stock: (1) the proceeds received from the exercise of stock options, and (2) the amount of compensation cost associated with the stock awards for future service not yet recognized by the Company. Stock options are not included in the computation of diluted earnings per share when the stock option exercise price of an individual grant exceeds the average market price for the period. During the three months ended March 31, 2017 and 2018, the Company had no issued and outstanding stock options that were excluded from the calculation. Set forth below is a reconciliation of shares used to calculate basic and diluted earnings per share for the three months ended March 31, 2017 and 2018 (in thousands): For the three months ended March 31, 2017 2018 Weighted average shares outstanding used to compute basic earnings per share 10,630 10,745 Incremental shares issuable upon the assumed exercise of stock options 35 45 Unvested restricted stock and restricted stock units 456 521 Shares used to compute diluted earnings per share 11,121 11,311 Income Taxes The Company provides for deferred income taxes based on temporary differences between financial statement and income tax bases of assets and liabilities using enacted tax rates in effect in the year in which the differences are expected to reverse. The Income Taxes Topic, ASC 740, requires the company to determine whether uncertain tax positions should be recognized within the Company’s financial statements. The Company recognizes interest and penalties, if any, related to uncertain tax positions in income tax expense. Uncertain tax positions are recognized when a tax position, based solely on its technical merits, is determined more likely than not to be sustained upon examination. Upon determination, uncertain tax positions are measured to determine the amount of benefit that is greater than 50% likely to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. A tax position is derecognized if it no longer meets the more likely than not threshold of being sustained. The tax years since 2014 remain open for Federal tax examination and the tax years since 2013 remain open to examination by state and local taxing jurisdictions in which the Company is subject. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the period reported. The most significant management estimates include allowances for doubtful accounts, useful lives of property and equipment, fair value of future contractual operating lease obligations, potential sublease income and vacancy periods, accrued expenses, forfeiture rates and the likelihood of achieving performance criteria for stock-based awards, value of free courses earned by students that will be redeemed in the future, valuation of goodwill, intangible assets, fair value of contingent consideration, and the provision for income taxes. Actual results could differ from those estimates. Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). The new guidance requires the recognition of right-of-use assets and lease liabilities on the balance sheet for most leases. Under current guidance, operating leases are off-balance sheet. ASU 2016-02 also requires more extensive quantitative and qualitative disclosures about leasing arrangements. ASU 2016-02 applies to fiscal periods beginning after December 15, 2018, using the modified retrospective method, with early adoption permitted. The Company anticipates that the impact of ASU 2016-02 on its consolidated balance sheet will be material as the Company will record significant asset and corresponding liability balances in connection with its leased properties. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses , which applies to ASC Topic 326, Measurement of Credit Losses on Financial Instruments . The new guidance revises the accounting requirements related to the measurement of credit losses and will require organizations to measure all expected credit losses for financial assets based on historical experience, current conditions, and reasonable and supportable forecasts about collectibility. Assets must be presented in the financial statements at the net amount expected to be collected. The guidance will be effective for the Company's annual and interim reporting periods beginning January 1, 2020, with early adoption permitted. The Company is evaluating the impact this standard will have on its financial condition, results of operations, and disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the Statement of Cash Flows by providing guidance on eight specific cash flow issues. The Company adopted the standard retrospectively on January 1, 2018 with no effect on its unaudited condensed consolidated statements of cash flows for the three months ended March 31, 2018 and 2017. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash (Topic 230) (“ASU 2016-18”). Under ASU 2016-18, an entity should include in its cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents. On January 1, 2018, the Company adopted ASU 2016-18 with no material impact on its unaudited condensed consolidated statements of cash flows. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment , which simplifies the subsequent measurement of goodwill only in the event that an impairment is recognized. The amendments in this update should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019, though early adoption is permitted. The Company adopted this guidance effective as of January 1, 2018 with no material impact on its unaudited condensed consolidated financial statements. Other ASUs issued by the FASB but not yet effective are not expected to have a material effect on the Company’s consolidated financial statements.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2018
Revenue Recognition [Abstract]
Revenue Recognition	4. Revenue Recognition On January 1, 2018, the Company adopted ASC 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606. The comparative information has not been restated and continues to be reported under the accounting standards in effect in those reporting periods. The Company recorded an adjustment to reduce opening retained earnings by $0.2 million, net of tax, due to the impact of adopting ASC 606, primarily related to the allocation of tuition revenue across various performance obligations involved in certain student contract arrangements. In accordance with ASC 606, the disclosure of the impact of adoption on the Company’s unaudited condensed consolidated income statement and balance sheet as of and for the three months ended March 31, 2018 was as follows (in thousands): For the Period Ended March 31, 2018 As Reported Balances without Adoption of ASC 606 Effect of Change Higher/(Lower) Income Statement Revenues $ 116,469 $ 116,338 $ 131 Instruction and educational support expense 63,776 63,584 192 Provision for income taxes 2,150 2,167 (17) Net income 9,467 9,511 (44) As of March 31, 2018 As Reported Balances without Adoption of ASC 606 Effect of Change Higher/(Lower) Balance Sheet Tuition receivable – net $ 24,997 $ 23,769 $ 1,228 Other current assets 10,558 12,084 (1,526) Income taxes payable 2,541 2,624 (83) Retained earnings 168,413 168,628 (215) Revenue Recognition The Company’s educational programs typically are offered on a quarterly basis and such periods coincide with the Company’s quarterly financial reporting periods. Revenues are recognized when control of the promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to receive in exchange for those goods and services. The Company applies the five-step revenue model under ASC 606 to determine when revenue is earned and recognized. Arrangements with students may have multiple performance obligations. For such arrangements, the Company allocates net tuition revenue to each performance obligation based on its relative standalone selling price. The Company generally determines standalone selling prices based on the prices charged to customers and observable market prices. The standalone selling price of material rights to receive free classes in the future is estimated based on class tuition price and likelihood of redemption based on historical student attendance and completion behavior. During the quarter ended March 31, 2018, the Company derived approximately $112.0 million, or 96% of its revenues from tuition revenue net of discounts, grants, and scholarships, which will continue to be recognized in the quarter of instruction. The Company also recognized approximately $3.1 million of revenues from academic fees, $0.9 million for textbook-related sales, and $0.5 million from other revenue streams. At the start of each academic term or program, a liability (contract liability) is recorded for academic services to be provided and a tuition receivable is recorded for the portion of the tuition not paid in advance. Any cash received prior to the start of an academic term or program is recorded as a contract liability. Some students may be eligible for scholarship awards, the estimated value of which will be realized in the future and is deducted from revenue when earned, based on historical student attendance and completion behavior. Contract liabilities are recorded as a current or long-term liability in the unaudited condensed consolidated balance sheets based on when the benefit is expected to be realized. Textbook-related income is recognized upon sale of the course material. Revenues also include certain academic fees recognized within the quarter of instruction, and certificate revenue and licensing revenue which are recognized as the services are provided. Contract Liabilities – Graduation Fund In 2013, the University introduced the Graduation Fund, which allows new undergraduate students to earn tuition credits that are redeemable in the final year of a student’s course of study if he or she successfully remains in the program. New students registering in credit-bearing courses in any undergraduate program receive one free course for every three courses that are successfully completed. Students must meet all of the University’s admission requirements, and must be enrolled in a bachelor’s degree program. The Company’s employees and their dependents are not eligible for the program. Students who have more than one consecutive term of non-attendance lose any Graduation Fund credits earned to date, but may earn and accumulate new credits if the student is reinstated or readmitted by the University in the future. Revenue from students participating in the Graduation Fund is recorded in accordance with ASC 606. The Company defers the value of the related performance obligation associated with the credits estimated to be redeemed in the future based on the underlying revenue transactions that result in progress by the student toward earning the benefit. The Company’s estimate of the benefits that will be redeemed in the future is based on its historical experience of student persistence toward completion of a course of study within this program and similar programs. Each quarter, the Company assesses its methodologies and assumptions underlying these estimates and, to date, any adjustments to the estimates have not been material. The amount estimated to be redeemed in the next 12 months is $21.3 million and is included as a current contract liability in the unaudited condensed consolidated balance sheets. The remainder is expected to be redeemed within two to four years. The table below presents activity in the contract liability related to the Graduation Fund for the three months ended March 31, 2017 and 2018 (in thousands): March 31, March 31, 2017 2018 Balance at beginning of period $ 29,499 $ 37,400 Revenue deferred 5,702 5,885 Benefit redeemed (3,563) (4,967) Balance at end of period $ 31,638 $ 38,318 Unbilled receivables – Student tuition Academic materials may be shipped to certain new undergraduate students in advance of the term of enrollment. Under ASC 606, the materials represent a performance obligation to which the Company allocates revenue based on the fair value of the materials relative to the total fair value of all the performance obligations in the arrangement with the student. When control of the materials passes to the student in advance of the term of enrollment, an unbilled receivable and related revenue is recorded. Following adoption of ASC 606 on January 1, 2018, the balance of unbilled receivables related to such materials was $1.2 million as of March 31, 2018, and is included in tuition receivable.

Restructuring and Related Charg

Restructuring and Related Charges	3 Months Ended
	Mar. 31, 2018
Restructuring and Related Charges [Abstract]
Restructuring and Related Charges	5. Restructuring and Related Charges In October 2013, the Company implemented a restructuring to better align the Company’s resources with student enrollments at the time. This restructuring included the closing of 20 physical locations and reductions in the number of campus-based and corporate employees. A liability for lease obligations, some of which continue through 2022, was recorded and is measured at fair value using a discounted cash flow approach encompassing significant unobservable inputs (Level 3). The estimation of future cash flows includes non-cancelable contractual lease costs over the remaining terms of the leases discounted at the Company’s marginal borrowing rate of 4.5%, partially offset by estimated future sublease rental income discounted at credit-adjusted rates. The Company’s estimates, which involve significant judgment, also consider the amount and timing of sublease rental income based on subleases that have been executed and subleases expected to be executed based on current commercial real estate market data and conditions, and other qualitative factors specific to the facilities. The estimates are subject to adjustment as market conditions change or as new information becomes available, including the execution of additional sublease agreements. The following details the changes in the Company’s restructuring liability for lease and related costs during the three months ended March 31, 2017 and 2018 (in thousands): 2017 2018 Balance at beginning of period (1) $ 11,985 $ 8,781 Adjustments (2) 57 41 Payments (1,061) (724) Balance at end of period (1) $ 10,981 $ 8,098 (1) The current portion of restructuring liabilities was $3.1 million and $3.0 million as of December 31, 2017 and March 31, 2018, respectively, which are included in accounts payable and accrued expenses. The long-term portion is included in other long-term liabilities. (2) Adjustments include accretion of interest on lease costs, partially offset by changes in the timing and expected income from sublease agreements .

Fair Value Measurement

Fair Value Measurement	3 Months Ended
	Mar. 31, 2018
Fair Value Measurement [Abstract]
Fair Value Measurement	6. Fair Value Measurement Assets and liabilities measured at fair value on a recurring basis consist of the following as of March 31, 2018 (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable March 31, Assets/Liabilities Inputs Inputs 2018 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ 101 $ 101 $ — $ — Liabilities: Deferred payments $ 4,556 $ — $ — $ 4,556 Assets and liabilities measured at fair value on a recurring basis consist of the following as of December 31, 2017 (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable December 31, Assets/Liabilities Inputs Inputs 2017 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ 113 $ 113 $ — $ — Liabilities: Deferred payments $ 4,514 $ — $ — $ 4,514 The Company measures the above items on a recurring basis at fair value as follows: · Money market funds – Classified in Level 1 is excess cash the Company holds in both taxable and tax-exempt money market funds and are included in cash and cash equivalents in the accompanying unaudited condensed consolidated balance sheets. The Company records any net unrealized gains and losses for changes in fair value as a component of accumulated other comprehensive income in stockholders' equity. The Company's cash and cash equivalents held at December 31, 2017 and March 31, 2018, approximate fair value and are not disclosed in the above tables because of the short-term nature of the financial instruments. · Deferred payments – The Company acquired certain assets and entered into deferred payment arrangements with the sellers in transactions that occurred in 2011 and 2016. The deferred payments are classified within Level 3 as there is no liquid market for similarly priced instruments and are valued using models that encompass significant unobservable inputs to estimate the operating results of the acquired assets. The assumptions used to prepare the discounted cash flows include estimates for interest rates, enrollment growth, retention rates, obtaining regulatory approvals for expansion into new markets, and pricing strategies. These assumptions are subject to change as the underlying data sources evolve and the programs mature. The short-term portion of deferred payments was $0.4 million as of March 31, 2018 and is included in accounts payable and accrued expense. The Company did not change its valuation techniques associated with recurring fair value measurements from prior periods and did not transfer assets or liabilities between levels of the fair value hierarchy during the three months ended March 31, 2017 or 2018. Changes in the fair value of the Company’s Level 3 liabilities during the three months ended March 31, 2018 are as follows (in thousands): March 31, 2018 Balance as of the beginning of period $ 4,514 Amounts paid (656) Other adjustments to fair value 698 Balance at end of period $ 4,556

Stock Options, Restricted Stock

Stock Options, Restricted Stock and Restricted Stock Units	3 Months Ended
	Mar. 31, 2018
Stock Options, Restricted Stock and Restricted Stock Units [Abstract]
Stock Options, Restricted Stock and Restricted Stock Units	7. Stock Options, Restricted Stock and Restricted Stock Units The Company administers the Strayer Education, Inc. 2015 Equity Compensation Plan (the “2015 Plan”), which provides for the granting of restricted stock, restricted stock units, stock options intended to qualify as incentive stock options, options that do not qualify as incentive stock options, and other forms of equity compensation and performance-based awards to employees, officers, and directors of the Company, or to a consultant or advisor to the Company, at the discretion of the Board of Directors. Vesting provisions are at the discretion of the Board of Directors. Options may be granted at option prices based at or above the fair market value of the shares at the date of grant. The maximum term of the awards granted under the 2015 Plan is ten years. The number of shares of common stock reserved for issuance under the 2015 Plan is 500,000 authorized but unissued shares, plus the number of shares available for grant under the Company’s previously existing equity compensation plans at the time of stockholder approval of the 2015 Plan, plus the number of shares which may in the future become available under any previously existing equity compensation plan due to forfeitures of outstanding awards. In February 2018, the Company’s Board of Directors approved grants of 144,577 shares of restricted stock to certain individuals. These shares, which vest over a four-year period, were granted pursuant to the 2015 Plan. The Company’s stock price closed at $90.99 on the date of these grants. Dividends paid on unvested restricted stock are reimbursed to the Company if the recipient forfeits his or her shares as a result of termination of employment prior to vesting in the award, other than as a result of the recipient’s death, disability, or certain qualifying terminations in connection with a change in control of the Company, unless waived by the Company. Restricted Stock and Restricted Stock Units The table below sets forth the restricted stock and restricted stock units activity for the three months ended March 31, 2018: Number of shares or units Weighted- average Grant price Balance, December 31, 2017 716,128 $ 99.65 Grants 144,577 90.99 Vested shares (140,852) 58.99 Forfeitures (11,331) 57.37 Balance, March 31, 2018 708,522 $ 107.51 Stock Options The table below sets forth the stock option activity and other stock option information as of and for the three months ended March 31, 2018: Weighted- average Weighted- remaining Aggregate Number of average contractual intrinsic value(1) shares exercise price life (years) (in thousands) Balance, December 31, 2017 100,000 $ 51.95 3.1 $ 3,763 Grants — — Exercises — — Forfeitures/Expirations — — Balance, March 31, 2018 100,000 $ 51.95 2.8 $ 4,910 Exercisable, March 31, 2018 100,000 $ 51.95 2.8 $ 4,910 (1) The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the respective trading day and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holder had all options been exercised on the respective trading day. The amount of intrinsic value will change based on the fair market value of the Company’s common stock. Valuation and Expense Information under Stock Compensation Topic ASC 718 At March 31, 2018, total stock-based compensation cost which has not yet been recognized was $24.7 million for unvested restricted stock, restricted stock units, and stock option awards. This cost is expected to be recognized over the next 33 months on a weighted-average basis. Awards of approximately 599,000 shares of restricted stock and restricted stock units are subject to performance conditions. The accrual for stock-based compensation for performance awards is based on the Company’s estimates that such performance criteria are probable of being achieved over the respective vesting periods. Such a determination involves judgment surrounding the Company’s ability to maintain regulatory compliance. If the performance targets are not reached during the respective vesting period, or it is determined it is more likely than not that the performance criteria will not be achieved, related compensation expense is adjusted. The following table sets forth the amount of stock-based compensation expense recorded in each of the expense line items for the three months ended March 31, 2017 and 2018 (in thousands): For the three months ended March 31, 2017 2018 Instruction and educational support $ 170 $ 620 Marketing — — Admissions advisory — — General and administration 2,257 2,068 Stock-based compensation expense included in operating expense 2,427 2,688 Tax benefit 958 752 Stock-based compensation expense, net of tax $ 1,469 $ 1,936 During the three months ended March 31, 2017, the Company recognized a tax shortfall related to share-based payment arrangements of approximately $0.4 million as an adjustment to the provision for income taxes. During the three months ended March 31, 2018, the Company recognized a tax windfall related to share-based payment arrangements of approximately $1.2 million, which was recorded as an adjustment to the provision for income taxes. No stock options were exercised during the three months ended March 31, 2017 or 2018.

Other Long-Term Liabilities

Other Long-Term Liabilities	3 Months Ended
	Mar. 31, 2018
Other Long-Term Liabilities [Abstract]
Other Long-Term Liabilities	8. Other Long-Term Liabilities Other long-term liabilities consist of the following (in thousands): December 31, 2017 March 31, 2018 Contract liabilities, net of current portion $ 21,033 $ 20,315 Deferred rent and other facility costs 7,113 6,957 Deferred payments related to acquisitions 6,385 6,020 Loss on facilities not in use 5,652 5,091 Lease incentives 2,832 2,857 Other long-term liabilities $ 43,015 $ 41,240 Contract Liabilities As discussed in Note 4, in connection with its student tuition contracts, the Company has an obligation to provide free classes in the future should certain eligibility conditions be maintained (the Graduation Fund). In addition, the Company also has licensed certain of its non-credit bearing course content to a third party for which the Company received an upfront cash payment. Long-term contract liabilities represent the amount of revenue under these arrangements that the Company expects will be realized after one year. Deferred Rent and Other Facility Costs and Loss on Facilities Not in Use The Company records a liability for lease costs of campuses and non-campus facilities that are not currently in use (see Note 5). For facilities still in use, the Company records rent expense on a straight-line basis over the initial term of a lease. The difference between the rent payment and the straight-line rent expense is recorded as a liability. Deferred Payments Related to Acquisitions In connection with previous acquisitions, the Company acquired certain assets and entered into deferred payment arrangements with the sellers. The deferred payment arrangements are valued at approximately $3.6 million and $3.2 million as of December 31, 2017 and March 31, 2018, respectively. In addition, one of the sellers contributed $2.8 million to the Company representing the seller’s continuing interest in the assets acquired. Lease Incentives In conjunction with the opening of new campuses or renovating existing ones, the Company, in some instances, was reimbursed by the lessors for improvements made to the leased properties. In accordance with ASC 840-20, the underlying assets were capitalized as leasehold improvements and a liability was established for the reimbursements. The leasehold improvements and the liability are amortized on a straight-line basis over the corresponding lease terms, which generally range from five to ten years.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
Income Taxes [Abstract]
Income Taxes	9. Income Taxes The Tax Cuts and Jobs Act (the “2017 Act”) was signed into law on December 22, 2017. The 2017 Act includes a broad range of tax reform legislation affecting businesses, including lowering corporate tax rates, among other provisions. Under accounting principles generally accepted in the United States of America, changes in tax rates and tax law are accounted for in the period of enactment. The Company recognized the income tax effects of the 2017 Act in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of ASC Topic 740, Income Taxes. The 2017 Act reduced the federal corporate tax rate from 35% to 21% for tax years beginning after December 31, 2017. ASC 740 requires deferred tax assets and liabilities to be valued using enacted tax rates in effect in the year in which the differences are expected to reverse. Thus, the Company revalued its federal deferred taxes based upon the new 21% tax rate as of December 31, 2017. The 2017 Act also allows for immediate full expensing for property placed in service after September 27, 2017 and before January 1, 2023. The Company has made the election to accelerate these deductions for the year ended December 31, 2017 tax returns. At this time, it is uncertain which states will follow federal rules regarding accelerated depreciation and, as such, the Company has not been able to make a reasonable estimate on the impact of deferred taxes related to state depreciation and continues to account for this based on the provisions of the tax laws that were in effect prior to enactment. In addition, the 2017 Act places limitations on the deductibility of certain executive compensation awards in the future, although the Company’s existing awards remain eligible for deductibility pursuant to the 2017 Act. The Company is still analyzing the 2017 Act and refining its calculations, which could potentially impact the measurement of the Company’s tax balances. The Company had no unrecognized tax benefits as of March 31, 2017 or 2018. Interest and penalties, including those related to uncertain tax positions, are included in the provision for income taxes in the unaudited condensed consolidated statements of income. The Company incurred no expense related to interest and penalties during the three months ended March 31, 2017 and 2018, respectively. The Company paid $0.2 million and $0.1 million in income taxes during the three months ended March 31, 2017 and 2018, respectively.

Litigation

Litigation	3 Months Ended
	Mar. 31, 2018
Litigation [Abstract]
Litigation	10. Litigation From time to time, the Company is involved in litigation and other legal proceedings arising out of the ordinary course of its business. There are no pending material legal proceedings to which the Company is subject or to which the Company’s property is subject.

Regulation

Regulation	3 Months Ended
	Mar. 31, 2018
Regulation [Abstract]
Regulation	11. Regulation The Company, the University, and NYCDA are subject to significant state regulatory oversight, as well as federal regulatory oversight, in the case of the Company and the University. Gainful Employment Under the Higher Education Act, a proprietary institution offering programs of study other than a baccalaureate degree in liberal arts (for which there is a limited statutory exception) must prepare students for gainful employment in a recognized occupation. On October 31, 2014, the U.S. Department of Education (the “Department”) published final regulations related to gainful employment. The regulations went into effect on July 1, 2015, with the exception of new disclosure requirements that were originally scheduled to go into effect January 1, 2017, but which have now been delayed, to some extent, until July 1, 2018. Additionally, the Department announced, on June 16, 2017, its intention to conduct negotiated rulemaking proceedings to revise the gainful employment regulations. Those proceedings began in December 2017 and concluded in March 2018. The negotiating committee did not reach a consensus, and as a result the Department may propose its own regulatory language with no obligation to use the language negotiated or agreed-upon during the committee meetings. If final regulations are published by November 1, 2018, they could become effective as early as July 1, 2019. The current gainful employment regulations include two debt-to-earnings measures, consisting of an annual income rate and a discretionary income rate. The annual income rate measures student debt in relation to earnings, and the discretionary income rate measures student debt in relation to discretionary income. A program passes if the program’s graduates: · have an annual income rate that does not exceed 8%; or · have a discretionary income rate that does not exceed 20%. In addition, a program that does not pass either of the debt-to-earnings metrics, and that has an annual income rate between 8% and 12%, or a discretionary income rate between 20% and 30%, is considered to be in a warning zone. A program fails if the program’s graduates have an annual income rate of 12% or greater and a discretionary income rate of 30% or greater. A program would become Title IV-ineligible for three years if it fails both metrics for two out of three consecutive years, or fails to pass at least one metric for four consecutive award years. The regulations provide a means by which an institution may challenge the Department’s calculation of any of the debt metrics prior to loss of Title IV eligibility. On January 8, 2017, the University received its final 2015 debt-to-earnings measures and none of its programs failed the debt-to-earnings metrics. Two active programs, the Associate in Arts in Accounting and Associate in Arts in Business Administration, are “in the zone,” which means each program remains fully eligible unless (1) either program has a combination of zone and failing designations for four consecutive years, in which case it would become Title IV-ineligible in the fifth year; or (2) either program fails the metrics for two out of three consecutive years, in which case the program could become ineligible for the following award year. If an institution is notified by the Secretary of Education that a program could become ineligible, based on its final rates, for the next award year: · The institution must provide a warning with respect to the program to students and prospective students indicating, among other things, that students may not be able to use Title IV funds to attend or continue in the program; and · The institution must not enroll, register or enter into a financial commitment with a prospective student until a specified time after providing the warning to the prospective student. The current regulations also require institutions annually to report student- and program-level data to the Department, and comply with additional disclosure requirements. Final regulations adopted by the Department, which generally became effective on July 1, 2011, require an institution to use a template designed by the Department to disclose to prospective students, with respect to each gainful employment program, occupations that the program prepares students to enter, total cost of the program, on-time graduation rate, job placement rate, if applicable, and the median loan debt of program completers for the most recently completed award year. On January 19, 2018, the Department announced the release of the 2018 template and gave institutions until April 6, 2018 to update their disclosures for each gainful employment program. The University is in compliance with that requirement. On June 30, 2017, the Department delayed, until July 1, 2018, the requirements that an institution include the disclosure template, or a link thereto, in its gainful employment program promotional materials and directly distribute the disclosure templates to prospective students. In addition, the gainful employment regulations require institutions to certify, among other things, that each eligible gainful employment program is programmatically accredited if required by a federal governmental entity or a state governmental entity of a state in which it is located or is otherwise required to obtain state approval. Institutions also must certify that each eligible program satisfies the applicable educational prerequisites for professional licensure or certification requirements in each state in which it is located or is otherwise required to obtain state approval, so that a student who completes the program and seeks employment in that state qualifies to take any licensure or certification exam that is needed for the student to practice or find employment in an occupation that the program prepares students to enter. The University has timely made the required certification. Under the gainful employment regulations, an institution may establish a new program’s Title IV eligibility by updating the list of the institution’s programs maintained by the Department. However, an institution may not update its list of eligible programs to include a failing or zone program that the institution voluntarily discontinued or that became ineligible, or a gainful employment program that is substantially similar to such a program, until three years after the loss of eligibility or discontinuance. The requirements associated with the gainful employment regulations may substantially increase the Company’s administrative burdens and could affect the University’s program offerings, student enrollment, persistence, and retention. Further, although the regulations provide opportunities for an institution to correct any potential deficiencies in a program prior to the loss of Title IV eligibility, the continuing eligibility of the University’s academic programs will be affected by factors beyond management’s control such as changes in the University’s graduates’ income levels, changes in student borrowing levels, increases in interest rates, changes in the percentage of former students who are current in the repayment of their student loans, and various other factors. Even if the University were able to correct any deficiency in the gainful employment metrics in a timely manner, the disclosure requirements associated with a program’s failure to meet at least one metric may adversely affect student enrollments in that program and may adversely affect the reputation of the University. Borrower Defenses to Repayment Pursuant to the Higher Education Act and following negotiated rulemaking, on November 1, 2016, the Department published final regulations that, inter alia, would have specified the acts or omissions of an institution that a borrower may assert as a defense to repayment of a loan made under the Direct Loan Program. Although the regulations were scheduled to become effective on July 1, 2017, on June 16, 2017, the Department delayed indefinitely the effective date of selected provisions of the regulations and announced its intention to conduct negotiated rulemaking proceedings to revise the regulations. On October 24, 2017, the Department published an interim final rule to delay until July 1, 2018 the effective date of the selected provisions. Then, on February 14, 2018, the Department published a final rule to delay until July 1, 2019 the effective date of the selected provisions. With respect to the negotiated rulemaking proceedings to revise the regulations, those proceedings began in November 2017 and concluded in February 2018. The negotiating committee did not reach a consensus, and as a result the Department may propose its own regulatory language with no obligation to use language negotiated or agreed-upon during the committee meetings. If final regulations are published by November 1, 2018, they could become effective as early as July 1, 2019. State Education Licensure – Licensure of Online Programs The increasing popularity and use of the internet and other technology for the delivery of education has led, and may continue to lead, to the adoption of new laws and regulatory practices in the United States or foreign countries or to the interpretation of existing laws and regulations to apply to such services. These new laws and interpretations may relate to issues such as the requirement that online education institutions be licensed as a school in one or more jurisdictions even where they have no physical location. New laws, regulations, or interpretations related to doing business over the internet could increase Strayer University’s cost of doing business, affect its ability to increase enrollments and revenues, or otherwise have a material adverse effect on our business. In April 2013, the Department of Education (the “Department”) announced that it would address state authorization of distance education through negotiated rulemaking. While four negotiated rulemaking sessions were conducted from February through May 2014, no consensus was reached. In June 2016, despite the lack of consensus at the negotiated rulemaking sessions, but as permitted by federal law, the Department of Education issued a Notice of Proposed Rulemaking for public comment on the issue of state authorization for online programs. On December 19, 2016, the Department issued final regulations, which are scheduled to become effective on July 1, 2018. On January 30, 2017, the new Administration indicated in a notice published in the Federal Register that it intended to take action in relation to this regulation, and, in April 2018, the Department sent to the Office of Management and Budget a draft proposed rule that would delay the effective date of the regulations. The final regulations, among other things, require an institution offering Title IV-eligible distance education or correspondence courses to be authorized by each state in which the institution enrolls students, if such authorization is required by the state. Institutions can obtain such authorization directly from the state or through a state authorization reciprocity agreement. A state authorization reciprocity agreement is defined as an agreement between two or more states that authorizes an institution located and legally authorized in a state covered by the agreement to provide post-secondary education through distance education or correspondence courses to students in other states covered by the agreement and does not prohibit a participating state from enforcing its own laws with respect to higher education. On December 2, 2016, the University became a participant in the State Authorization Reciprocity Agreement (“SARA”). As a participant in SARA, the University may offer online courses and other forms of distance education to students in any participating SARA state in which it does not have a physical location or a physical presence as defined by the state without having to seek any new state institutional approval beyond its home state (Washington, D.C.). The regulations also require institutions to document the state process for resolving complaints from students enrolled in programs offered through distance education or correspondence courses for each state in which such students reside. In addition, the regulations require an institution to provide public and individualized disclosures to enrolled and prospective students regarding its programs offered solely through distance education or correspondence courses. The public disclosures would include state authorization for the program or course, the process for submitting complaints to relevant states, any adverse actions by a state or accrediting agency related to the distance education program or correspondence course within the past five years, refund policies specific to the state, and applicable licensure or certification requirements for a career that the program prepares a student to enter. An institution must disclose directly to all prospective students if a distance education or correspondence course does not meet the licensure or certification requirements for a state. An institution must disclose to each current and prospective student when an adverse action is taken against a distance education or correspondence program and any determination that a program ceases to meet licensure or certification requirements. If an institution does not obtain or maintain state authorization for distance education or correspondence courses in any particular state that has authorization requirements, the institution may lose its ability to award Title IV funds for students in those programs who are residing in that state. The Clery Act The University must comply with the campus safety and security reporting requirements as well as other requirements in the Jeanne Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act (the “Clery Act”) including changes made to the Clery Act by the Violence Against Women Reauthorization Act of 2013. On October 20, 2014, the Department promulgated regulations, effective July 1, 2015, implementing amendments to the Clery Act. In addition, the Department has interpreted Title IX to categorize sexual violence as a form of prohibited sex discrimination and to require institutions to follow certain disciplinary procedures with respect to such offenses. On September 22, 2017, the Department withdrew the statements of policy and guidance reflected in two guidance documents issued under the Obama administration and issued interim guidance about campus sexual misconduct. In the interim guidance, the Department announced that it intends to conduct negotiated rulemaking proceedings to revise its regulations related to institutions’ Title IX responsibilities. Failure by the University to comply with the Clery Act or Title IX requirements or regulations thereunder could result in action by the Department fining the University or limiting or suspending its participation in Title IV programs, could lead to litigation, and could harm the University’s reputation. The Company believes that the University is in compliance with these requirements. Compliance Reviews The University is subject to announced and unannounced compliance reviews and audits by various external agencies, including the Department, its Office of Inspector General, state licensing agencies, guaranty agencies, and accrediting agencies. In 2014, the Department conducted four campus-based program reviews of University locations in three states and the District of Columbia. The reviews covered federal financial aid years 2012-2013 and 2013-2014, and two of the reviews also covered compliance with the Clery Act, the Drug-Free Schools and Communities Act, and regulations related thereto. For three of the program reviews, the University received correspondence from the Department in 2015 closing the program reviews with no further action required by the University. For the other program review, in 2016, the University received a Final Program Review Determination Letter identifying a payment of less than $500 due to the Department based on an underpayment on a return to Title IV calculation, and otherwise closing the review. The University remitted payment, and received a letter from the Department indicating that no further action was required and that the matter was closed. Program Participation Agreement Each institution participating in Title IV programs must enter into a Program Participation Agreement with the Department. Under the agreement, the institution agrees to follow the Department’s rules and regulations governing Title IV programs. On October 13, 2017, the Department informed the University that it was approved to participate in Title IV programs with full certification through June 30, 2021. NYCDA NYCDA currently provides on-ground courses in New York, Pennsylvania, Utah, and the District of Columbia, but is not accredited, does not participate in state or federal student financial aid programs, and is not subject to the regulatory requirements applicable to accredited schools and schools that participate in financial aid programs such as those described above. Programs such as those offered by NYCDA are regulated by each individual state.

Significant Accounting Polici18

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Significant Accounting Policies [Abstract]
Financial Statement Presentation	Financial Statement Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in the consolidated financial statements. All information as of December 31, 2017 and March 31, 2017 and 2018, and for the three months ended March 31, 2017 and 2018 is unaudited but, in the opinion of management, contains all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the condensed consolidated financial position, results of operations, and cash flows of the Company. Certain amounts in the prior period financial statements have been reclassified to conform to the current period’s presentation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted. In addition, the Company had no items of other comprehensive income in the periods presented and accordingly comprehensive income is equal to net income. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the full fiscal year.
New accounting standard for revenue recognition	New accounting standard for revenue recognition In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) which supersedes the prior revenue recognition requirements in Topic 605, Revenue Recognition , and most industry-specific guidance. During 2016 and 2017, the FASB issued additional ASUs amending certain aspects of ASU 2014-09. On January 1, 2018, the Company adopted the new accounting standard and all the related amendments (“ASC 606”) using the modified retrospective method. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company expects the impact of the adoption of the new standard to be immaterial to the Company’s net income on an ongoing basis. Refer to Note 4 for further discussion.
Restricted Cash	Restricted Cash A significant portion of the Company’s revenues are funded by various federal and state government programs. The Company generally does not receive funds from these programs prior to the start of the corresponding academic term. The Company may be required to return certain funds for students who withdraw from the University during the academic term. The Company had approximately $15,000 and $8,000 as of December 31, 2017 and March 31, 2018, respectively, of these unpaid obligations, which are recorded as restricted cash and included in other current assets in the unaudited condensed consolidated balance sheets. As part of commencing operations in Pennsylvania in 2003, the Company is required to maintain a “minimum protective endowment” of at least $0.5 million in an interest-bearing account as long as the Company operates its campuses in the state. The Company holds these funds in an interest-bearing account which is included in other assets. The following table illustrates the reconciliation of cash, cash equivalents, and restricted cash shown in the unaudited condensed consolidated statements of cash flows as of March 31, 2017 and 2018 (in thousands): For the three months ended March 31, 2017 2018 Cash and cash equivalents $ 147,099 $ 165,867 Restricted cash included in other current assets — 8 Restricted cash included in other long-term assets 500 500 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 147,599 $ 166,375
Tuition Receivable and Allowance for Doubtful Accounts	Tuition Receivable and Allowance for Doubtful Accounts The Company records tuition receivable and contract liabilities for its students upon the start of the academic term or program. Therefore, at the end of the quarter (and academic term), tuition receivable generally represents amounts due from students for educational services already provided and contract liabilities generally represents advance payments from students for academic services to be provided in the future. Tuition receivables are not collateralized; however, credit risk is minimized as a result of the diverse nature of the University’s student base. An allowance for doubtful accounts is established primarily based upon historical collection rates by age of receivable, net of estimated recoveries. These collection rates incorporate historical performance based on a student’s current enrollment status and likelihood of future enrollment. The Company periodically assesses its methodologies for estimating bad debts in consideration of actual experience. The Company’s tuition receivable and allowance for doubtful accounts were as follows as of December 31, 2017 and March 31, 2018 (in thousands): December 31, 2017 March 31, 2018 Tuition receivable $ 35,809 $ 38,772 Allowance for doubtful accounts (12,687) (13,775) Tuition receivable, net $ 23,122 $ 24,997 Approximately $2.9 million and $3.3 million of tuition receivable are included in other assets as of December 31, 2017 and March 31, 2018, respectively, because these amounts are expected to be collected after 12 months. The following table illustrates changes in the Company’s allowance for doubtful accounts for the three months ended March 31, 2017 and 2018 (in thousands): For the three months ended March 31, 2017 2018 Allowance for doubtful accounts, beginning of period $ 10,201 $ 12,687 Additions charged to expense 4,382 6,391 Write-offs, net of recoveries (3,763) (5,303) Allowance for doubtful accounts, end of period $ 10,820 $ 13,775
Fair Value	Fair Value The Fair Value Measurement Topic, ASC 820-10 (“ASC 820-10”), establishes a framework for measuring fair value, establishes a fair value hierarchy based upon the observability of inputs used to measure fair value, and expands disclosures about fair value measurements. Assets and liabilities are classified in their entirety within the fair value hierarchy based on the lowest level input that is significant to the fair value measurement. Under ASC 820-10, fair value of an investment is the price that would be received to sell an asset or to transfer a liability to an entity in an orderly transaction between market participants at the measurement date. The hierarchy gives the highest priority to assets and liabilities with readily available quoted prices in an active market and lowest priority to unobservable inputs which require a higher degree of judgment when measuring fair value, as follows: · Level 1 assets or liabilities use quoted prices in active markets for identical assets or liabilities as of the measurement date; · Level 2 assets or liabilities use observable inputs, other than quoted market prices, that are either directly or indirectly observable in the marketplace for identical or similar assets and liabilities; and · Level 3 assets or liabilities use unobservable inputs that are supported by little or no market activity. The Company’s assets and liabilities that are subject to fair value measurement are categorized in one of the three levels above. Fair values are based on the inputs available at the measurement dates, and may rely on certain assumptions that may affect the valuation of fair value for certain assets or liabilities.
Goodwill and Indefinite-Lived Intangible Assets	Goodwill and Indefinite-Lived Intangible Assets Goodwill represents the excess of the purchase price of an acquired business over the amount assigned to the assets acquired and liabilities assumed. Indefinite-lived intangible assets, which include trade names, are recorded at fair market value on their acquisition date. An indefinite life was assigned to the trade names because they have the continued ability to generate cash flows indefinitely. Goodwill and the indefinite-lived intangible assets are assessed at least annually for impairment during the fourth quarter, or more frequently if events occur or circumstances change between annual tests that would more likely than not reduce the fair value of the respective reporting unit below its carrying amount. No events or circumstances occurred in the three months ended March 31, 2018 to indicate an impairment to goodwill or the indefinite-lived intangible assets.
Authorized Stock	Authorized Stock The Company has authorized 20,000,000 shares of common stock, par value $.01, of which 11,167,425 and 11,300,671 shares were issued and outstanding as of December 31, 2017 and March 31, 2018, respectively. The Company also has authorized 8,000,000 shares of preferred stock, none of which is issued or outstanding. Before any preferred stock may be issued in the future, the Board of Directors would need to establish the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends, qualifications, and the terms or conditions of the redemption of the preferred stock. In March 2018, the Company’s Board of Directors declared a regular, quarterly cash dividend of $0.25 per share of common stock. The dividend was paid on March 19, 2018.
Stock-Based Compensation	Stock-Based Compensation As required by the Stock Compensation Topic, ASC 718, the Company measures and recognizes compensation expense for all share-based payment awards made to employees and directors, including employee stock options, restricted stock, restricted stock units, and employee stock purchases related to the Company’s Employee Stock Purchase Plan, based on estimated fair values. Stock-based compensation expense recognized in the unaudited condensed consolidated statements of income for each of the three months ended March 31, 2017 and 2018 is based on awards ultimately expected to vest and, therefore, has been adjusted for estimated forfeitures. The Company estimates forfeitures at the time of grant and revises the estimate, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The forfeiture rate used is based on historical experience. The Company also assesses the likelihood that performance criteria associated with performance-based awards will be met. If it is determined that it is more likely than not that performance criteria will not be achieved, the Company revises its estimate of the number of shares it believes will ultimately vest. See note 7 for additional information.
Net Income Per Share	Net Income Per Share Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the periods. Diluted earnings per share reflects the potential dilution that could occur assuming conversion or exercise of all dilutive unexercised stock options, restricted stock, and restricted stock units. The dilutive effect of stock awards was determined using the treasury stock method. Under the treasury stock method, all of the following are assumed to be used to repurchase shares of the Company’s common stock: (1) the proceeds received from the exercise of stock options, and (2) the amount of compensation cost associated with the stock awards for future service not yet recognized by the Company. Stock options are not included in the computation of diluted earnings per share when the stock option exercise price of an individual grant exceeds the average market price for the period. During the three months ended March 31, 2017 and 2018, the Company had no issued and outstanding stock options that were excluded from the calculation. Set forth below is a reconciliation of shares used to calculate basic and diluted earnings per share for the three months ended March 31, 2017 and 2018 (in thousands): For the three months ended March 31, 2017 2018 Weighted average shares outstanding used to compute basic earnings per share 10,630 10,745 Incremental shares issuable upon the assumed exercise of stock options 35 45 Unvested restricted stock and restricted stock units 456 521 Shares used to compute diluted earnings per share 11,121 11,311
Income Taxes	Income Taxes The Company provides for deferred income taxes based on temporary differences between financial statement and income tax bases of assets and liabilities using enacted tax rates in effect in the year in which the differences are expected to reverse. The Income Taxes Topic, ASC 740, requires the company to determine whether uncertain tax positions should be recognized within the Company’s financial statements. The Company recognizes interest and penalties, if any, related to uncertain tax positions in income tax expense. Uncertain tax positions are recognized when a tax position, based solely on its technical merits, is determined more likely than not to be sustained upon examination. Upon determination, uncertain tax positions are measured to determine the amount of benefit that is greater than 50% likely to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. A tax position is derecognized if it no longer meets the more likely than not threshold of being sustained. The tax years since 2014 remain open for Federal tax examination and the tax years since 2013 remain open to examination by state and local taxing jurisdictions in which the Company is subject.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the period reported. The most significant management estimates include allowances for doubtful accounts, useful lives of property and equipment, fair value of future contractual operating lease obligations, potential sublease income and vacancy periods, accrued expenses, forfeiture rates and the likelihood of achieving performance criteria for stock-based awards, value of free courses earned by students that will be redeemed in the future, valuation of goodwill, intangible assets, fair value of contingent consideration, and the provision for income taxes. Actual results could differ from those estimates.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). The new guidance requires the recognition of right-of-use assets and lease liabilities on the balance sheet for most leases. Under current guidance, operating leases are off-balance sheet. ASU 2016-02 also requires more extensive quantitative and qualitative disclosures about leasing arrangements. ASU 2016-02 applies to fiscal periods beginning after December 15, 2018, using the modified retrospective method, with early adoption permitted. The Company anticipates that the impact of ASU 2016-02 on its consolidated balance sheet will be material as the Company will record significant asset and corresponding liability balances in connection with its leased properties. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses , which applies to ASC Topic 326, Measurement of Credit Losses on Financial Instruments . The new guidance revises the accounting requirements related to the measurement of credit losses and will require organizations to measure all expected credit losses for financial assets based on historical experience, current conditions, and reasonable and supportable forecasts about collectibility. Assets must be presented in the financial statements at the net amount expected to be collected. The guidance will be effective for the Company's annual and interim reporting periods beginning January 1, 2020, with early adoption permitted. The Company is evaluating the impact this standard will have on its financial condition, results of operations, and disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the Statement of Cash Flows by providing guidance on eight specific cash flow issues. The Company adopted the standard retrospectively on January 1, 2018 with no effect on its unaudited condensed consolidated statements of cash flows for the three months ended March 31, 2018 and 2017. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash (Topic 230) (“ASU 2016-18”). Under ASU 2016-18, an entity should include in its cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents. On January 1, 2018, the Company adopted ASU 2016-18 with no material impact on its unaudited condensed consolidated statements of cash flows. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment , which simplifies the subsequent measurement of goodwill only in the event that an impairment is recognized. The amendments in this update should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019, though early adoption is permitted. The Company adopted this guidance effective as of January 1, 2018 with no material impact on its unaudited condensed consolidated financial statements. Other ASUs issued by the FASB but not yet effective are not expected to have a material effect on the Company’s consolidated financial statements.

Significant Accounting Polici19

Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2018
Significant Accounting Policies [Abstract]
Schedule of cash, cash equivalents, and restricted cash	The following table illustrates the reconciliation of cash, cash equivalents, and restricted cash shown in the unaudited condensed consolidated statements of cash flows as of March 31, 2017 and 2018 (in thousands): For the three months ended March 31, 2017 2018 Cash and cash equivalents $ 147,099 $ 165,867 Restricted cash included in other current assets — 8 Restricted cash included in other long-term assets 500 500 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 147,599 $ 166,375
Schedule of tuition receivable and allowance for doubtful accounts	December 31, 2017 March 31, 2018 Tuition receivable $ 35,809 $ 38,772 Allowance for doubtful accounts (12,687) (13,775) Tuition receivable, net $ 23,122 $ 24,997
Schedule of allowance for doubtful accounts	For the three months ended March 31, 2017 2018 Allowance for doubtful accounts, beginning of period $ 10,201 $ 12,687 Additions charged to expense 4,382 6,391 Write-offs, net of recoveries (3,763) (5,303) Allowance for doubtful accounts, end of period $ 10,820 $ 13,775
Schedule of reconciliation of shares used to calculate basic and diluted earnings per share	For the three months ended March 31, 2017 2018 Weighted average shares outstanding used to compute basic earnings per share 10,630 10,745 Incremental shares issuable upon the assumed exercise of stock options 35 45 Unvested restricted stock and restricted stock units 456 521 Shares used to compute diluted earnings per share 11,121 11,311

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2018
Schedule of graduation fund liability	The table below presents activity in the contract liability related to the Graduation Fund for the three months ended March 31, 2017 and 2018 (in thousands): March 31, March 31, 2017 2018 Balance at beginning of period $ 29,499 $ 37,400 Revenue deferred 5,702 5,885 Benefit redeemed (3,563) (4,967) Balance at end of period $ 31,638 $ 38,318
Accounting Standards Update 2014-09
Summary of impact of ASU adoption	For the Period Ended March 31, 2018 As Reported Balances without Adoption of ASC 606 Effect of Change Higher/(Lower) Income Statement Revenues $ 116,469 $ 116,338 $ 131 Instruction and educational support expense 63,776 63,584 192 Provision for income taxes 2,150 2,167 (17) Net income 9,467 9,511 (44) As of March 31, 2018 As Reported Balances without Adoption of ASC 606 Effect of Change Higher/(Lower) Balance Sheet Tuition receivable – net $ 24,997 $ 23,769 $ 1,228 Other current assets 10,558 12,084 (1,526) Income taxes payable 2,541 2,624 (83) Retained earnings 168,413 168,628 (215)

Restructuring and Related Cha21

Restructuring and Related Charges (Tables)	3 Months Ended
	Mar. 31, 2018
Restructuring and Related Charges [Abstract]
Schedule of restructuring liability by type of cost	The following details the changes in the Company’s restructuring liability for lease and related costs during the three months ended March 31, 2017 and 2018 (in thousands): 2017 2018 Balance at beginning of period (1) $ 11,985 $ 8,781 Adjustments (2) 57 41 Payments (1,061) (724) Balance at end of period (1) $ 10,981 $ 8,098 (1) The current portion of restructuring liabilities was $3.1 million and $3.0 million as of December 31, 2017 and March 31, 2018, respectively, which are included in accounts payable and accrued expenses. The long-term portion is included in other long-term liabilities. (2) Adjustments include accretion of interest on lease costs, partially offset by changes in the timing and expected income from sublease agreements .

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	3 Months Ended
	Mar. 31, 2018
Fair Value Measurement [Abstract]
Schedule of assets and liabilities measured at fair value on a recurring basis	Assets and liabilities measured at fair value on a recurring basis consist of the following as of March 31, 2018 (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable March 31, Assets/Liabilities Inputs Inputs 2018 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ 101 $ 101 $ — $ — Liabilities: Deferred payments $ 4,556 $ — $ — $ 4,556 Assets and liabilities measured at fair value on a recurring basis consist of the following as of December 31, 2017 (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable December 31, Assets/Liabilities Inputs Inputs 2017 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ 113 $ 113 $ — $ — Liabilities: Deferred payments $ 4,514 $ — $ — $ 4,514
Schedule of changes in fair value of level 3 liability	March 31, 2018 Balance as of the beginning of period $ 4,514 Amounts paid (656) Other adjustments to fair value 698 Balance at end of period $ 4,556

Stock Options, Restricted Sto23

Stock Options, Restricted Stock and Restricted Stock Units (Tables)	3 Months Ended
	Mar. 31, 2018
Stock Options, Restricted Stock and Restricted Stock Units [Abstract]
Schedule of restricted stock and restricted stock units activity	Number of shares or units Weighted- average Grant price Balance, December 31, 2017 716,128 $ 99.65 Grants 144,577 90.99 Vested shares (140,852) 58.99 Forfeitures (11,331) 57.37 Balance, March 31, 2018 708,522 $ 107.51
Schedule of stock option activity and other stock option information	Weighted- average Weighted- remaining Aggregate Number of average contractual intrinsic value(1) shares exercise price life (years) (in thousands) Balance, December 31, 2017 100,000 $ 51.95 3.1 $ 3,763 Grants — — Exercises — — Forfeitures/Expirations — — Balance, March 31, 2018 100,000 $ 51.95 2.8 $ 4,910 Exercisable, March 31, 2018 100,000 $ 51.95 2.8 $ 4,910 (1) The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the respective trading day and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holder had all options been exercised on the respective trading day. The amount of intrinsic value will change based on the fair market value of the Company’s common stock.
Schedule of stock-based compensation expense	For the three months ended March 31, 2017 2018 Instruction and educational support $ 170 $ 620 Marketing — — Admissions advisory — — General and administration 2,257 2,068 Stock-based compensation expense included in operating expense 2,427 2,688 Tax benefit 958 752 Stock-based compensation expense, net of tax $ 1,469 $ 1,936

Other Long-Term Liabilities (Ta

Other Long-Term Liabilities (Tables)	3 Months Ended
	Mar. 31, 2018
Other Long-Term Liabilities [Abstract]
Schedule of other long-term liabilities	December 31, 2017 March 31, 2018 Contract liabilities, net of current portion $ 21,033 $ 20,315 Deferred rent and other facility costs 7,113 6,957 Deferred payments related to acquisitions 6,385 6,020 Loss on facilities not in use 5,652 5,091 Lease incentives 2,832 2,857 Other long-term liabilities $ 43,015 $ 41,240

Nature of Operations (Details)

Nature of Operations (Details)	3 Months Ended
	Mar. 31, 2018segment
Nature of Operations [Abstract]
Number of reporting segments	1

Merger with Capella Education26

Merger with Capella Education Company (Details) $ in Thousands	Oct. 29, 2017	Mar. 31, 2018USD ($)shares	Jan. 19, 2018shares	Dec. 31, 2017shares
Common stock, shares authorized		20,000,000		20,000,000
Merger costs | $		$ 5,347
Merger Agreement
Conversion ratio	0.875
Voting equity interests (as a percentage)		52.00%
Common stock, shares authorized			32,000,000
Capella | Merger Agreement
Voting equity interests (as a percentage)		48.00%

Significant Accounting Polici27

Significant Accounting Policies (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Significant Accounting Policies [Abstract]
Items within other comprehensive income	$ 0
Percentage of tuition revenue in total revenue	96.00%

Significant Accounting Polici28

Significant Accounting Policies - Restricted Cash (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Restricted cash
Cash and cash equivalents	$ 165,867,000	$ 155,933,000	$ 147,099,000
Total cash, cash equivalents, and restricted cash shown in statement of cash flows	166,375,000	156,448,000	147,599,000	$ 129,758,000
Other long-term assets
Restricted cash
Restricted cash	500,000		$ 500,000
Other current assets
Restricted cash
Restricted cash	$ 8,000	$ 15,000

Significant Accounting Polici29

Significant Accounting Policies - Tuition Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Schedule of tuition receivable and allowance for doubtful accounts
Tuition receivable	$ 38,772	$ 35,809
Allowance for doubtful accounts	(13,775)	(12,687)	$ (10,820)	$ (10,201)
Tuition receivable, net	24,997	23,122
Other assets
Schedule of tuition receivable and allowance for doubtful accounts
Tuition receivable, noncurrent	$ 3,300	$ 2,900

Significant Accounting Polici30

Significant Accounting Policies - Doubtful Accounts (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Schedule of allowance for doubtful accounts
Beginning allowance for doubtful accounts	$ 12,687	$ 10,201
Additions charged to expense	6,391	4,382
Write-offs, net of recoveries	(5,303)	(3,763)
Ending allowance for doubtful accounts	$ 13,775	$ 10,820

Significant Accounting Polici31

Significant Accounting Policies - EPS (Details) - $ / shares	Mar. 19, 2018	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Schedule of reconciliation of shares used to calculate basic and diluted earnings per share
Weighted average shares outstanding used to compute basic earnings per share		10,745,000	10,630,000
Incremental shares issuable upon the assumed exercise of stock options		45,000	35,000
Unvested restricted stock		521,000	456,000
Shares used to compute diluted earnings per share		11,311,000	11,121,000
Common stock, shares authorized		20,000,000		20,000,000
Common stock, par value		$ 0.01		$ 0.01
Common stock, shares issued		11,300,671		11,167,425
Common stock, shares outstanding		11,300,671		11,167,425
Preferred stock, shares authorized		8,000,000		8,000,000
Preferred stock, shares issued		0		0
Preferred stock, shares outstanding		0		0
Dividends declared, per share		$ 0.25
Dividends paid, per share	$ 0.25
Antidilutive stock options		0	0

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	$ 116,469
Instruction and educational support	63,776	$ 61,416
Provision for income taxes	2,150	7,887
Net income	9,467	$ 10,578
Tuition receivable - net	24,997		$ 23,122
Other current assets	10,558		11,293
Income taxes payable	2,541		1,038
Accounts payable and accrued expenses	45,806		46,177
Retained earnings	$ 168,413		162,006
Percentage of tuition revenue in total revenue	96.00%
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact of adoption of new accounting standards			$ (171)
Accounting Standards Update 2014-09 | Balances without Adoption of ASC 606
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	$ 116,338
Instruction and educational support	63,584
Provision for income taxes	2,167
Net income	9,511
Tuition receivable - net	23,769
Other current assets	12,084
Income taxes payable	2,624
Retained earnings	168,628
Accounting Standards Update 2014-09 | Effect of Change Higher/Lower
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	131
Instruction and educational support	192
Provision for income taxes	(17)
Net income	(44)
Tuition receivable - net	1,228
Other current assets	(1,526)
Income taxes payable	(83)
Retained earnings	(215)
Tuition
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	112,000
Academic fees
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	3,100
Textbook-related sales
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	900
Other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	$ 500

Revenue Recognition - Graduatio

Revenue Recognition - Graduation Fund (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)item	Mar. 31, 2017USD ($)
Consecutive terms of non attendance in which Graduation Fund credits will be lost | item	1
Number of free courses | item	1
Number of successfully completed courses | item	3
Expected collection period of tuition receivable, current	12 months
Graduation fund estimated to be redeemed	$ 21,300
Unbilled receivables	1,200
Balance at beginning of year	37,400	$ 29,499
Revenue deferred	5,885	5,702
Benefit Redeemed	(4,967)	(3,563)
Balance at end of year	$ 38,318	$ 31,638
Minimum
Expected redemption period of Graduation Fund, non-current	2 years
Maximum
Expected redemption period of Graduation Fund, non-current	4 years

Restructuring and Related Cha34

Restructuring and Related Charges (Details) - item	1 Months Ended	3 Months Ended
	Oct. 31, 2013	Mar. 31, 2018
Restructuring and Related Charges [Abstract]
Campus location closed	20
Lease marginal borrowing rate		4.50%

Restructuring and Related Cha35

Restructuring and Related Charges - Liability for lease and related costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Schedule of restructuring liability
Beginning balance	$ 8,781	$ 11,985
Adjustments	41	57
Payments	(724)	(1,061)
Ending balance	8,098	$ 10,981
Accounts payable and accrued expenses
Schedule of restructuring liability
Restructuring liabilities	$ 3,000		$ 3,100

Fair Value Measurement (Details

Fair Value Measurement (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Money Market Funds [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets at fair value on a recurring basis	$ 101	$ 113
Deferred payments [Member]
Liabilities:
Total liabilities at fair value on a recurring basis	4,556	4,514
Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] | Money Market Funds [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets at fair value on a recurring basis	101	113
Significant Unobservable Inputs (Level 3) [Member] | Deferred payments [Member]
Liabilities:
Total liabilities at fair value on a recurring basis	$ 4,556	$ 4,514

Fair Value Measurement - Level

Fair Value Measurement - Level 3 Liability (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Accounts payable and accrued expenses
Fair Value, Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation [Line Items]
Short-term portion of deferred payments	$ 400
Deferred payments [Member]
Schedule of changes in fair value of level 3 liability
Balance at beginning of year	4,514
Amounts paid	(656)
Other adjustments to fair value	698
Balance at end of year	$ 4,556

Stock Options, Restricted Sto38

Stock Options, Restricted Stock and Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended
	Feb. 28, 2017	Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional shares authorized for grants		500,000
Maximum term of the awards granted under the Plan		10 years
Stock-based compensation cost which has not yet been recognized		$ 24.7
Stock-based compensation cost recognized period, in months		33 months
Restricted stock awarded subject to performance condition		599,000
Restricted stock and restricted stock units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants, Number of shares or units	144,577	144,577
Vesting period	4 years
Share Price	$ 90.99

Stock Options, Restricted Sto39

Stock Options, Restricted Stock and Restricted Stock Units - RSU (Details) - Restricted stock and restricted stock units [Member] - $ / shares	1 Months Ended	3 Months Ended
	Feb. 28, 2017	Mar. 31, 2018
Schedule of restricted stock and restricted stock units activity
Beginning Balance, Number of shares or units		716,128
Grants, Number of shares or units	144,577	144,577
Vested shares, Number of shares or units		(140,852)
Forfeitures, Number of shares or units		(11,331)
Ending Balance, Number of shares or units		708,522
Beginning Balance, Weighted-average grant price		$ 99.65
Grants, Weighted-average grant price		90.99
Vested shares, Weighted-average grant price		58.99
Forfeitures, Weighted-average grant price		57.37
Ending Balance, Weighted-average grant price		$ 107.51

Stock Options, Restricted Sto40

Stock Options, Restricted Stock and Restricted Stock Units - Options (Details) - Stock options [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Schedule of stock option activity and other stock option information
Beginning Balance, Number of shares	100,000
Grants, Number of shares
Exercises, Number of shares		0
Forfeitures/Expirations, Number of shares
Ending Balance, Number of shares	100,000		100,000
Exercisable, Number of shares	100,000
Beginning Balance, Weighted-average exercise price	$ 51.95
Grants, Weighted-average exercise price
Exercises, Weighted-average exercise price
Forfeitures/Expirations, Weighted-average exercise price
Ending Balance, Weighted-average exercise price	51.95		$ 51.95
Exercisable, Weighted-average exercise price	$ 51.95
Weighted-average remaining contractual life (years)	2 years 9 months 18 days		3 years 1 month 6 days
Exercisable, Weighted-average remaining contractual life (years)	2 years 9 months 18 days
Beginning Balance, Aggregate intrinsic value	$ 3,763
Ending Balance, Aggregate intrinsic value	4,910		$ 3,763
Exercisable, Aggregate intrinsic value	$ 4,910

Stock Options, Restricted Sto41

Stock Options, Restricted Stock and Restricted Stock Units - Stock-based compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Schedule of stock-based compensation expense
Stock-based compensation expense included in operating expense	$ 2,688	$ 2,427
Tax benefit	752	958
Stock-based compensation expense, net of income tax	1,936	1,469
Instruction and educational support [Member]
Schedule of stock-based compensation expense
Stock-based compensation expense included in operating expense	620	170
General and administration [Member]
Schedule of stock-based compensation expense
Stock-based compensation expense included in operating expense	$ 2,068	$ 2,257

Stock Options, Restricted Sto42

Stock Options, Restricted Stock and Restricted Stock Units - Tax shortfall (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Schedule of information regarding share-based payment arrangements
Tax shortfall associated with stock-based compensation arrangements		$ (0.4)
Tax (shortfall) windfall related to share-based payment arrangements	$ 1.2

Other Long-Term Liabilities (De

Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Other Long-Term Liabilities [Abstract]
Contract liabilities, net of current portion	$ 20,315	$ 21,033
Deferred rent and other facility costs	6,957	7,113
Deferred payments related to acquisitions	6,020	6,385
Loss on facilities not in use	5,091	5,652
Lease incentives	2,857	2,832
Total other long-term liabilities	$ 41,240	$ 43,015

Other Long-Term Liabilities - D

Other Long-Term Liabilities - Deferred (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Funds received from investor	$ 2.8
Deferred payment arrangements value	$ 3.2	$ 3.6
Minimum
Leasehold improvements and long-term liability amortization period	5 years
Maximum
Leasehold improvements and long-term liability amortization period	10 years

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Income Taxes [Abstract]
Statutory federal rate	21.00%		35.00%
Unrecognized tax benefits	$ 0	$ 0
Amount of interest and penalties	0	0
Cash payments for income taxes	$ 100,000	$ 200,000

Regulation (Details)

Regulation (Details)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2018USD ($)stateitem	Jun. 30, 2014item	Dec. 31, 2014stateitem
Minimum
Regulation [Line Items]
Average of median annual earning percentage	8.00%
Average of median discretionary percentage	20.00%
Maximum
Regulation [Line Items]
Average of median annual earning percentage	12.00%
Average of median discretionary percentage	30.00%
Strayer University
Regulation [Line Items]
Number of debt-to-earnings measures	2
Failed programs	0
Number of ineligible years	3 years
Number of current associate degree programs in the Zone	2
Number of consecutive years program has to fail both metrics to become ineligible	2 years
Number of consecutive years program has to fail one metric to become ineligible	4 years
Number of metric that can't failed for consecutive years	1
Number of guidance documents	2
Number of years an adverse action must be disclosed	5 years
Number of sessions		4
Number of conducted compliance reviews			2
Number of reviews in which no further action was required			3
Number of on-site reviews conducted			4
Number of states in which compliance reviews were conducted | state			3
Strayer University | Minimum
Regulation [Line Items]
Number of states needed for state authorization reciprocity agreement | state	2
Strayer University | Maximum
Regulation [Line Items]
Amount due to department of education | $	$ 500