Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CECO | |
Entity Registrant Name | CAREER EDUCATION CORP | |
Entity Central Index Key | 1,046,568 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 67,947,694 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | ||
CURRENT ASSETS: | ||||
Cash and cash equivalents, unrestricted | $ 63,266 | $ 93,832 | ||
Restricted cash | 13,438 | 22,938 | ||
Short-term investments | 120,026 | 122,858 | ||
Total cash and cash equivalents, restricted cash and short-term investments | 196,730 | 239,628 | ||
Student receivables, net of allowance for doubtful accounts of $12,666 and $12,398 as of June 30, 2015 and December 31, 2014, respectively | 25,872 | 24,564 | ||
Receivables, other, net | 4,472 | 18,925 | ||
Prepaid expenses | 17,513 | 14,679 | ||
Inventories | 2,668 | 3,305 | ||
Other current assets | 1,852 | 2,384 | ||
Assets held for sale | 66,541 | 76,846 | [1] | |
Assets of discontinued operations | 280 | 473 | ||
Total current assets | 315,928 | 380,804 | ||
NON-CURRENT ASSETS: | ||||
Property and equipment, net | 57,946 | 73,083 | ||
Goodwill | 87,356 | 87,356 | ||
Intangible assets, net | 7,900 | 9,819 | ||
Student receivables, net of allowance for doubtful accounts of $1,616 and $2,119 as of June 30, 2015 and December 31, 2014, respectively | 2,887 | 2,926 | ||
Other assets | 17,506 | 18,571 | ||
Assets of discontinued operations | 853 | 975 | ||
TOTAL ASSETS | [2] | 490,376 | 573,534 | |
CURRENT LIABILITIES: | ||||
Short-term borrowings | 10,000 | |||
Accounts payable | 17,636 | 21,968 | ||
Accrued expenses: | ||||
Payroll and related benefits | 31,754 | 29,545 | ||
Advertising and production costs | 12,735 | 13,162 | ||
Income taxes | 1,545 | 1,633 | ||
Other | 17,884 | 21,440 | ||
Deferred tuition revenue | 37,105 | 37,572 | ||
Liabilities held for sale | 44,999 | 50,357 | [1] | |
Liabilities of discontinued operations | 13,343 | 15,506 | ||
Total current liabilities | 177,001 | 201,183 | ||
NON-CURRENT LIABILITIES: | ||||
Deferred rent obligations | 39,883 | 48,381 | ||
Other liabilities | 20,040 | 19,178 | ||
Liabilities of discontinued operations | 14,984 | 22,859 | ||
Total non-current liabilities | $ 74,907 | $ 90,418 | ||
STOCKHOLDERS' EQUITY: | ||||
Preferred stock, $0.01 par value; 1,000,000 shares authorized; none issued or outstanding | ||||
Common stock, $0.01 par value; 300,000,000 shares authorized; 82,841,253 and 82,336,689 shares issued, 67,948,036 and 67,521,038 shares outstanding as of June 30, 2015 and December 31, 2014, respectively | $ 828 | $ 823 | ||
Additional paid-in capital | 608,935 | 606,531 | ||
Accumulated other comprehensive loss | (701) | (853) | ||
Retained deficit | (155,007) | (109,403) | ||
Cost of 14,893,217 and 14,815,651 shares in treasury as of June 30, 2015 and December 31, 2014, respectively | (215,587) | (215,165) | ||
Total stockholders' equity | 238,468 | 281,933 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 490,376 | $ 573,534 | ||
[1] | Only assets and liabilities related to our LCB institutions were reported as held for sale as of December 31, 2014. | |||
[2] | Total assets do not include intercompany receivable or payable activity between schools and corporate and investments in subsidiaries. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Student receivables, allowance for doubtful accounts, current | $ 12,666 | $ 12,398 |
Student receivables, allowance for doubtful accounts, non-current | $ 1,616 | $ 2,119 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 82,841,253 | 82,336,689 |
Common stock, shares outstanding | 67,948,036 | 67,521,038 |
Treasury, Shares in treasury | 14,893,217 | 14,815,651 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Loss and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
REVENUE: | |||||
Tuition and registration fees | $ 173,963 | $ 185,136 | $ 355,364 | $ 382,045 | |
Other | 817 | 1,036 | 1,718 | 2,281 | |
Total revenue | 174,780 | 186,172 | 357,082 | 384,326 | |
OPERATING EXPENSES: | |||||
Educational services and facilities | 53,949 | 59,001 | 108,900 | 120,639 | |
General and administrative | 121,365 | 129,051 | 260,513 | 277,497 | |
Depreciation and amortization | 7,113 | 9,368 | 13,898 | 19,313 | |
Asset impairment | 1,685 | 3 | 7,704 | 77 | |
Total operating expenses | 184,112 | 197,423 | 391,015 | 417,526 | |
Operating loss | (9,332) | (11,251) | (33,933) | (33,200) | |
OTHER (EXPENSE) INCOME: | |||||
Interest income | 222 | 285 | 382 | 391 | |
Interest expense | (170) | (108) | (332) | (189) | |
Loss on sale of business | (917) | (917) | |||
Miscellaneous expense | (21) | (590) | (408) | (108) | |
Total other (expense) income | (886) | (413) | (1,275) | 94 | |
PRETAX LOSS | (10,218) | (11,664) | (35,208) | (33,106) | |
(Benefit from) provision for income taxes | (747) | 1,854 | (958) | 2,074 | |
LOSS FROM CONTINUING OPERATIONS | (9,471) | (13,518) | (34,250) | (35,180) | |
LOSS FROM DISCONTINUED OPERATIONS, net of tax | [1] | (11,252) | (33,046) | (11,354) | (69,527) |
NET LOSS | (20,723) | (46,564) | (45,604) | (104,707) | |
OTHER COMPREHENSIVE LOSS, net of tax: | |||||
Unrealized (losses) gains on investments | (43) | (107) | 152 | (135) | |
COMPREHENSIVE LOSS | $ (20,766) | $ (46,671) | $ (45,452) | $ (104,842) | |
NET LOSS PER SHARE - BASIC and DILUTED: | |||||
Loss from continuing operations | $ (0.14) | $ (0.20) | $ (0.51) | $ (0.52) | |
Loss from discontinued operations | (0.17) | (0.49) | (0.16) | (1.04) | |
Net loss per share | $ (0.31) | $ (0.69) | $ (0.67) | $ (1.56) | |
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||||
Basic and Diluted | 67,893 | 67,157 | 67,714 | 67,076 | |
[1] | Includes the results of operations for our LCB campuses that are held for sale, which met the criteria to be considered discontinued operations under ASC Topic 360, in addition to our Transitional Group campuses that completed their teach-out prior to 2015. |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (45,604) | $ (104,707) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Asset impairment | 17,391 | 7,521 |
Depreciation and amortization expense | 13,899 | 29,825 |
Bad debt expense | 9,138 | 12,409 |
Compensation expense related to share-based awards | 1,470 | 2,361 |
Loss on sale of businesses, net | 917 | 311 |
Loss on disposition of property and equipment | 3 | 32 |
Changes in operating assets and liabilities | (23,809) | (29,037) |
Net cash used in operating activities | (26,595) | (81,285) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of available-for-sale investments | (33,707) | (121,590) |
Sales of available-for-sale investments | 36,051 | 28,726 |
Purchases of property and equipment | (4,994) | (7,031) |
Payments of cash upon sale of businesses | (2,018) | (250) |
Other | (11) | |
Net cash used in investing activities | (4,668) | (100,156) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Issuance of common stock | 939 | 392 |
Payment on borrowings | (10,000) | |
Change in restricted cash | 9,500 | 636 |
Net cash provided by financing activities | 439 | 1,028 |
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS: | 258 | 78 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (30,566) | (180,335) |
DISCONTINUED OPERATIONS CASH ACTIVITY INCLUDED ABOVE: | ||
Add: Cash balance of discontinued operations, beginning of the period | 475 | |
CASH AND CASH EQUIVALENTS, beginning of the period | 93,832 | 318,468 |
CASH AND CASH EQUIVALENTS, end of the period | $ 63,266 | $ 138,608 |
Description of the Company
Description of the Company | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Company | 1. DESCRIPTION OF THE COMPANY Career Education’s academic institutions offer a high-quality education to a diverse student population in a variety of disciplines through online, on-ground and hybrid learning programs. Our two universities – American InterContinental University (“AIU”) and Colorado Technical University (“CTU”) – provide degree programs through the master’s or doctoral level as well as associate and bachelor’s levels. Both universities predominantly serve students online with career-focused degree programs that meet the educational demands of today’s busy adults. AIU and CTU continue to show innovation in higher education, advancing new personalized learning technologies like their intellipath™ adaptive learning platform that allow students to more efficiently move toward earning a degree by receiving course credit for knowledge they can already demonstrate. Career Education is committed to providing high-quality education that closes the gap between learners who seek to advance their careers and employers needing a qualified workforce. A detailed listing of individual campus locations and web links to Career Education’s colleges, institutions and universities can be found at www.careered.com As used in this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” “the Company” and “CEC” refer to Career Education Corporation and our wholly-owned subsidiaries. The terms “college,” “institution,” and “university” refer to an individual, branded, proprietary educational institution, owned by us and includes its campus locations. The term “campus” refers to an individual main or branch campus operated by one of our colleges, institutions or universities. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 2. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring accruals, considered necessary for a fair presentation have been included. Operating results for the quarter ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The unaudited condensed consolidated financial statements presented herein include the accounts of CEC and our wholly-owned subsidiaries (collectively, “CEC”). All intercompany transactions and balances have been eliminated. On May 1, 2015, the Board of Directors of the Company approved the teach out of the Company’s remaining 15 Sanford-Brown campuses and the pursuit of divestiture options for the Company’s three additional Career Colleges campuses: Briarcliffe College, Brooks Institute and Missouri College. These campuses are reported within our Transitional Group segment as of June 30, 2015 in accordance with ASC Topic 280 – Segment Reporting As of June 30, 2015, we organized our business across three reporting segments: CTU, AIU (comprises University Group); and Transitional Group. Campuses included in our Transitional Group segment are those (i) currently being taught out and therefore no longer enrolling new students, (ii) campuses that completed their teach-out subsequent to January 1, 2015 or (iii) that have either been sold or are held for sale and which decisions were made subsequent to January 1, 2015. Those campuses in teach-out employ a gradual teach-out process, enabling them to continue to operate while current students complete their course of study. As a result of the change within our Transitional Group segment, all prior periods were recast to reflect our segments on a comparable basis and our results of operations for these campuses are recorded within continuing operations as part of the Transitional Group segment for all periods presented. Effective January 1, 2015, ASC Topic 360 – Property, Plant and Equipment, During the second quarter of 2015, the Company completed the sale of its Brooks Institute and signed a definitive agreement to sell its Missouri College campus with an expected closing date during the third quarter of 2015. As a result, the assets and liabilities of Missouri College are classified as held for sale within continuing operations as of June 30, 2015. The historical results of operations for Brooks Institute continue to be reported within continuing operations and the loss on sale for this campus is reported within other (expense) income on our consolidated statements of loss and comprehensive loss. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 3. RECENT ACCOUNTING PRONOUNCEMENTS In June 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-10, Technical Corrections and Improvements. In April 2015, the FASB issued ASU No. 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. In January 2015, the FASB issued ASU No. 2015-01, Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In June 2014, the FASB issued ASU No. 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. |
Dispositions
Dispositions | 6 Months Ended |
Jun. 30, 2015 | |
Text Block [Abstract] | |
Dispositions | 4. DISPOSITIONS On June 16, 2015, we completed the sale of our Brooks Institute campuses, located in Ventura, California, to Gphomestay, a global leader in providing international education opportunities for students. This sale reflects our strategy to focus our resources and attention on our universities – Colorado Technical University and American InterContinental University, where we see continued opportunities to improve growth and continue to provide quality higher education to the adult student markets. The sale does not meet the definition of a strategic shift under ASC Topic 360 and is therefore reported within continuing operations in accordance with FASB ASC Topic 205 – Presentation of Financial Statements. We received no consideration for the sale of Brooks Institute and recorded a loss on sale of $0.9 million for the quarter ended June 30, 2015. The terms of the agreement provided that we make certain working capital payments to the buyer, accordingly these amounts were included in the loss calculation. The loss on sale is included within other (expense) income on our unaudited condensed consolidated statements of loss and comprehensive loss. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 5. DISCONTINUED OPERATIONS As of June 30, 2015, the results of operations for campuses that have ceased operations prior to 2015 and our LCB campuses that are held for sale, are presented within discontinued operations. Prior to January 1, 2015, our Transitional Group campuses met the criteria for discontinued operations upon completion of their teach-out. Commencing January 1, 2015, in accordance with new guidance under ASC Topic 360, only campuses that meet the criteria of a strategic shift upon disposal will be classified within discontinued operations, among other criteria. During the second quarter of 2015, we did not have any campuses that met the criteria to be considered as a discontinued operation under the new guidance. Prior periods have not been recast for this change in guidance. Results of Discontinued Operations The summary of unaudited results of operations for our discontinued operations for the quarters and years to date ended June 30, 2015 and 2014 were as follows (dollars in thousands): For the Quarter Ended (1) For the Year to Date Ended (1) 2015 2014 2015 2014 Revenue $ 42,019 $ 44,195 $ 86,763 $ 89,420 Operating expenses: Educational services and facilities 19,531 29,519 39,404 62,166 General and administrative 24,014 35,083 49,074 78,991 Depreciation and amortization 74 5,025 1 10,511 Asset impairment (2) 9,687 7,451 9,687 7,444 Total operating expenses 53,306 77,078 98,166 159,112 Loss before income tax $ (11,252 ) $ (33,046 ) $ (11,354 ) $ (69,527 ) Income tax expense (3) — — — — Loss from discontinued operations, net of tax $ (11,252 ) $ (33,046 ) $ (11,354 ) $ (69,527 ) Net loss per diluted share $ (0.17 ) $ (0.49 ) $ (0.16 ) $ (1.04 ) Capital expenditures $ 80 $ 419 $ 319 $ 604 (1) Includes the results of operations for our LCB campuses that are held for sale, which met the criteria to be considered discontinued operations under ASC Topic 360, in addition to our Transitional Group campuses that completed their teach-out prior to 2015. (2) Asset impairment charges for the current year quarter relate to impairment recorded for our LCB campuses which are held for sale as a result of our fair value analysis. (3) Due to the valuation allowance against our net deferred taxes, there is no income tax benefit reported for the quarters and years to date ended June 30, 2015 and 2014. Assets and Liabilities of Discontinued Operations Assets and liabilities of discontinued operations on our condensed consolidated balance sheets for campuses that have ceased operations or were sold as of June 30, 2015 and December 31, 2014 include the following (dollars in thousands): June 30, December 31, Assets: Current assets: Receivables, net $ 280 $ 473 Total current assets 280 473 Non-current assets: Other assets, net 853 975 Total assets of discontinued operations (1) $ 1,133 $ 1,448 Liabilities: Current liabilities: Accounts payable and accrued expenses $ 170 $ 579 Remaining lease obligations 13,173 14,927 Total current liabilities 13,343 15,506 Non-current liabilities: Remaining lease obligations 14,820 22,689 Other 164 170 Total liabilities of discontinued operations (1) $ 28,327 $ 38,365 (1) Excludes assets and liabilities for our LCB campuses which are presented within assets and liabilities held for sale on our condensed consolidated balance sheets as of June 30, 2015 and December 31, 2014. See Note 6 “Assets Held for Sale” for further details. Remaining Lease Obligations A number of the campuses that ceased operations prior to January 1, 2015 or vacated real estate properties for our LCB campuses held for sale, have remaining lease obligations that expire over time with the latest expiration in 2020. A liability is recorded representing the fair value of the remaining lease obligation at the time the space is no longer being utilized. Changes in our future remaining lease obligations, which are reflected within current and non-current liabilities of discontinued operations and within liabilities held for sale on our unaudited condensed consolidated balance sheets, for the quarters and years to date ended June 30, 2015 and 2014 were as follows (dollars in thousands): Balance, Charges (1) Net Cash Other (2) Balance, For the quarter ended June 30, 2015 $ 33,441 $ (215 ) $ (4,214 ) $ 576 $ 29,588 For the quarter ended June 30, 2014 $ 50,745 $ 6,100 $ (6,026 ) $ 1,778 $ 52,597 For the year to date ended June 30, 2015 $ 39,869 $ (701 ) $ (10,156 ) $ 576 $ 29,588 For the year to date ended June 30, 2014 $ 46,755 $ 13,419 $ (12,790 ) $ 5,213 $ 52,597 (1) Includes charges for newly vacated spaces and subsequent adjustments for accretion, revised estimates and variances between estimated and actual charges, net of any reversals for terminated lease obligations. (2) Includes existing prepaid rent and deferred rent liability balances for newly vacated spaces that are netted with the losses incurred in the period recorded. |
Assets Held for Sale
Assets Held for Sale | 6 Months Ended |
Jun. 30, 2015 | |
Text Block [Abstract] | |
Assets Held for Sale | 6. ASSETS HELD FOR SALE During the second quarter of 2015, we made the decision to sell our Missouri College campus. Accordingly, the assets and liabilities for this institution are included within assets and liabilities held for sale on our unaudited condensed consolidated balance sheet as of June 30, 2015. As this campus does not meet the criteria for discontinued operations under ASC Topic 360, the results of operations for Missouri College are reported within continuing operations for all periods presented. Additionally, the Company continues to believe the sale of our Le Cordon Bleu Culinary Arts institutions, which decision was announced in the fourth quarter of 2014, will occur within the current reporting year or we will have an executed agreement pending regulatory approval. The assets and liabilities for the LCB institutions are included within assets and liabilities held for sale on our condensed consolidated balance sheets as of June 30, 2015 and December 31, 2014. The sale of the LCB institutions met the criteria to be treated as discontinued operations under ASC Topic 360. Accordingly, the results of operations are reported within discontinued operations in the unaudited condensed consolidated statements of loss and comprehensive loss. As we anticipate the sale of these assets to be completed within one year of the decision to sell, we have recorded the assets and liabilities related to these institutions within current assets and liabilities held for sale as of June 30, 2015. Results of Operations The summary of unaudited results of operations for our assets held for sale for the quarters and years to date ended June 30, 2015 and 2014 were as follows (dollars in thousands): Reported within loss from continuing operations for our Missouri College campus For the Quarter Ended For the Year to Date Ended 2015 2014 2015 2014 Revenue $ 1,876 $ 1,864 $ 3,735 $ 3,811 Operating Expenses: Educational services and facilities 1,099 1,060 2,134 2,193 General and administrative 1,905 1,741 3,587 3,403 Depreciation and amortization 79 170 158 343 Asset impairment 518 — 518 — Total operating expenses 3,601 2,971 6,397 5,939 Operating loss $ (1,725 ) $ (1,107 ) $ (2,662 ) $ (2,128 ) Reported within loss from discontinued operations for our LCB campuses For the Quarter Ended For the Year to Date Ended 2015 2014 2015 2014 Revenue $ 42,048 $ 42,566 $ 86,760 $ 84,813 Operating Expenses: Educational services and facilities 19,115 19,965 39,058 39,305 General and administrative 23,806 30,663 48,331 67,348 Depreciation and amortization — 4,310 1 8,578 Asset impairment 9,687 7,400 9,687 7,400 Total operating expenses 52,608 62,338 97,077 122,631 Operating loss $ (10,560 ) $ (19,772 ) $ (10,317 ) $ (37,818 ) During the second quarter of 2015, we revalued our LCB campuses held for sale in accordance with ASC Topic 360 – Property, Plant and Equipment Assets and Liabilities of Assets Held for Sale Assets and liabilities of assets held for sale on our condensed consolidated balance sheets as of June 30, 2015 and December 31, 2014 include the following (dollars in thousands): June 30, December 31, (1) Assets: Receivables, net $ 8,111 $ 8,303 Property and equipment, net 42,808 42,521 Other intangible assets 18,400 18,400 Other assets 6,903 7,622 Valuation allowance (2) (9,681 ) — Total assets held for sale $ 66,541 $ 76,846 Liabilities: Accounts payable and accrued expenses $ 10,619 $ 12,410 Deferred revenue 15,018 17,001 Remaining lease obligations 1,595 2,253 Other liabilities 17,767 18,693 Total liabilities held for sale $ 44,999 $ 50,357 (1) Only assets and liabilities related to our LCB institutions were reported as held for sale as of December 31, 2014. (2) During the second quarter of 2015, a valuation allowance was recorded against our LCB assets held for sale as a result of $9.7 million of impairment charges recorded. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Investments | 7. INVESTMENTS Investments from our continuing operations consist of the following as of June 30, 2015 and December 31, 2014 (dollars in thousands): June 30, 2015 Gross Unrealized Cost Gain (Loss) Fair Value Short-term investments (available for sale): Municipal bonds $ 5,158 $ 1 $ (47 ) $ 5,112 Non-governmental debt securities 92,152 12 (162 ) 92,002 Treasury and federal agencies 22,913 14 (15 ) 22,912 Total short-term investments 120,223 27 (224 ) 120,026 Long-term investments (available for sale): Municipal bond 7,850 — (476 ) 7,374 Total investments (available for sale) $ 128,073 $ 27 $ (700 ) $ 127,400 December 31, 2014 Gross Unrealized Cost Gain (Loss) Fair Value Short-term investments (available for sale): Municipal bonds $ 6,880 $ 1 $ (56 ) $ 6,825 Non-governmental debt securities 98,400 1 (271 ) 98,130 Treasury and federal agencies 17,928 6 (31 ) 17,903 Total short-term investments 123,208 8 (358 ) 122,858 Long-term investments (available for sale): Municipal bond 7,850 — (476 ) 7,374 Total investments (available for sale) $ 131,058 $ 8 $ (834 ) $ 130,232 Our long-term investment in a municipal bond is comprised of debt obligations issued by states, cities, counties and other governmental entities, which earn federally tax-exempt interest. Our investment in an auction rate security (“ARS”) has a stated term to maturity of greater than one year, and as such, we classify our investment in ARS as non-current on our condensed consolidated balance sheets within other assets. Auctions can “fail” when the number of sellers of the security exceeds the buyers for that particular auction period. In the event that an auction fails, the interest rate resets at a rate based on a formula determined by the individual security. The ARS for which auctions have failed continues to accrue interest and is auctioned on a set interval until the auction succeeds, the issuer calls the security, or it matures. As of June 30, 2015, we have determined this investment is at risk for impairment due to the nature of the liquidity of the market over the past several years. Cumulative unrealized losses as of June 30, 2015 amount to $0.5 million and are reflected within accumulated other comprehensive loss as a component of stockholders’ equity. We believe this impairment is temporary, as we do not intend to sell the investment and it is unlikely we will be required to sell the investment before recovery of its amortized cost basis. Our non-governmental debt securities primarily consist of corporate bonds and commercial paper. Our treasury and federal agencies primarily consist of U.S. Treasury bills and federal home loan debt securities. We do not intend to sell our investments in these securities and it is not likely that we will be required to sell these investments before recovery of the amortized cost basis. Fair Value Measurements FASB ASC Topic 820 – Fair Value Measurements As of June 30, 2015, we held investments that are required to be measured at fair value on a recurring basis. These investments (available-for-sale) consist of non-governmental debt securities, treasury and federal agencies and municipal bonds that are publicly traded and our investment in an ARS. Available for sale securities included in Level 2 are estimated based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Our investment in an ARS is categorized as Level 3 and fair value is estimated utilizing a discounted cash flow analysis as of June 30, 2015 which considers, among other items, the collateralization underlying the security investment, the credit worthiness of the counterparty, the time of expected future cash flows, and the expectation of the next time the security is expected to have a successful auction. The auction event for our ARS investment has failed for multiple years. The security was also compared, when possible, to other observable market data with similar characteristics. Investments measured at fair value on a recurring basis subject to the disclosure requirements of FASB ASC Topic 820 – Fair Value Measurements As of June 30, 2015 Level 1 Level 2 Level 3 Total Municipal bonds $ — $ 5,112 $ 7,374 $ 12,486 Non-governmental debt securities — 92,002 — 92,002 Treasury and federal agencies — 22,912 — 22,912 Totals $ — $ 120,026 $ 7,374 $ 127,400 As of December 31, 2014 Level 1 Level 2 Level 3 Total Municipal bonds $ — $ 6,825 $ 7,374 $ 14,199 Non-governmental debt securities — 98,130 — 98,130 Treasury and federal agencies — 17,903 — 17,903 Totals $ — $ 122,858 $ 7,374 $ 130,232 The following table presents a rollforward of our assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as defined in FASB ASC Topic 820 for the year to date ended June 30, 2015 (dollars in thousands): Balance at December 31, 2014 $ 7,374 Unrealized gain (loss) — Balance at June 30, 2015 $ 7,374 Equity Method Investment Our investment in an equity affiliate, which is recorded within other noncurrent assets on our condensed consolidated balance sheet, represents an international investment in a private company. As of June 30, 2015, our investment in an equity affiliate equated to a 30.7%, or $4.2 million, non-controlling interest in CCKF, a Dublin-based educational technology company providing intelligent adaptive systems to power the delivery of individualized and personalized learning. During the quarter ended June 30, 2015, we recorded less than $0.1 million of loss related to our proportionate investment in CCKF within miscellaneous expense on our unaudited condensed consolidated statements of loss and comprehensive loss. In the prior year quarter, this investment was recorded as a cost method investment. Credit Agreement During the fourth quarter of 2014, the Company; its wholly-owned subsidiary, CEC Educational Services, LLC (“CEC-ES”); and the subsidiary guarantors thereunder entered into a First Amendment (the “First Amendment”) to its Amended and Restated Credit Agreement dated as of December 30, 2013 (as amended, the “Credit Agreement”) with BMO Harris Bank N.A. (“BMO Harris”), in its capacities as the initial lender and letter of credit issuer thereunder and the administrative agent for the lenders which from time to time may be parties to the Credit Agreement, to among other things, increase the revolving credit facility to $120.0 million. The revolving credit facility under the Credit Agreement is scheduled to mature on June 30, 2016. The loans and letter of credit obligations under the Credit Agreement are required to be secured by 100% cash collateral. As of June 30, 2015, there were no outstanding borrowings under the revolving credit facility. |
Student Receivables
Student Receivables | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Student Receivables | 8. STUDENT RECEIVABLES Student receivables represent funds owed to us in exchange for the educational services provided to a student. Student receivables are reflected net of an allowance for doubtful accounts and net of deferred tuition revenue. Student receivables, net are reflected on our condensed consolidated balance sheets as components of both current and non-current assets. We do not accrue interest on past due student receivables; interest is recorded only upon collection. Generally, a student receivable balance is written off once it reaches greater than 90 days past due. Although we analyze past due receivables, it is not practical to provide an aging of our non-current student receivable balances as a result of the methodology utilized in determining our earned student receivable balances. Student receivables are recognized on our condensed consolidated balance sheets as they are deemed earned over the course of a student’s program and/or term, and therefore cash collections are not applied against specifically dated transactions. Our standard student receivable allowance estimation methodology considers a number of factors that, based on our collection experience, we believe have an impact on our repayment risk and ability to collect student receivables. Changes in the trends in any of these factors may impact our estimate of the allowance for doubtful accounts. These factors include, but are not limited to: internal repayment history, repayment practices of previous extended payment programs and information provided by a third-party institution who previously offered similar extended payment programs, changes in the current economic, legislative or regulatory environments and credit worthiness of our students. These factors are monitored and assessed on a regular basis. Overall, our allowance estimation process for student receivables is validated by trending analysis and comparing estimated and actual performance. Student Receivables Under Extended Payment Plans and Recourse Loan Agreements To assist students in completing their educational programs, we had previously provided extended payment plans to certain students and also had loan agreements with Sallie Mae and Stillwater National Bank and Trust Company (“Stillwater”) which required us to repurchase loans originated by them to our students after a certain period of time. We discontinued providing extended payment plans to students during the first quarter of 2011 and the recourse loan agreements with Sallie Mae and Stillwater ended in March 2008 and April 2007, respectively. As of June 30, 2015 and December 31, 2014, the amount of non-current student receivables under these programs, net of allowance for doubtful accounts and net of deferred tuition revenue, was $2.9 million for each period. Student Receivables Valuation Allowance Changes in our current and non-current receivables allowance for the quarters and years to date ended June 30, 2015 and 2014 were as follows (dollars in thousands): Balance, Charges to (1) Amounts Balance, (2) For the quarter ended June 30, 2015 $ 14,140 $ 4,396 $ (4,177 ) $ 14,359 For the quarter ended June 30, 2014 $ 16,987 $ 5,664 $ (6,069 ) $ 16,582 For the year to date ended June 30, 2015 $ 14,517 $ 8,418 $ (8,576 ) $ 14,359 For the year to date ended June 30, 2014 $ 17,570 $ 10,720 $ (11,708 ) $ 16,582 (1) Charges to expense include an offset for recoveries of amounts previously written off of $1.2 million and $1.5 million for the quarters ended June 30, 2015 and 2014, respectively, and $2.3 million and $3.1 million for the years to date ended June 30, 2015 and 2014, respectively. (2) Includes amounts for allowances related to receivables reported within our assets held for sale within continuing operations. Fair Value Measurements The carrying amount reported in our condensed consolidated balance sheets for the current portion of student receivables approximates fair value because of the nature of these financial instruments as they generally have short maturity periods. It is not practicable to estimate the fair value of the non-current portion of student receivables, since observable market data is not readily available, and no reasonable estimation methodology exists. |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | 9. RESTRUCTURING CHARGES During the past several years and through the current year quarter, we have carried out reductions in force related to the continued reorganization of our corporate and campus functions to better align with current total enrollments and made decisions to teach out a number of campuses, meaning gradually close the campuses through an orderly process. As part of the process to wind down these teach-out campuses, the Company also announced that it will align its corporate overhead to support a more streamlined and focused operating entity. Most notably, we have recorded charges within our Transitional Group segment and our corporate functions as we continue to align our overall management structure. Each of our teach-out campuses offer current students the reasonable opportunity to complete their course of study. The majority of these teach-out campuses are expected to cease operations by 2017 with the remainder expected to cease operations in 2018. The following table details the changes in our accrual for severance and related costs associated with all restructuring events for our continuing operations during the quarters and years to date ended June 30, 2015 and 2014 (dollars in thousands): Balance, Severance & (1) (2) Payments Non-cash (3) Balance, For the quarter ended June 30, 2015 $ 2,456 $ 12,636 $ (2,238 ) $ (302 ) $ 12,552 For the quarter ended June 30, 2014 $ 2,657 $ — $ (308 ) $ 17 $ 2,366 For the year to date ended June 30, 2015 $ 2,701 $ 13,380 $ (3,009 ) $ (520 ) $ 12,552 For the year to date ended June 30, 2014 $ 3,243 $ — $ (694 ) $ (183 ) $ 2,366 (1) Includes charges related to COBRA and outplacement services which are assumed to be completed by the third month following an employee’s departure. (2) Severance payments will result in future cash expenditures through 2018. (3) Includes cancellations due to employee departures prior to agreed upon end dates, employee transfers to open positions within the organization and subsequent adjustments to severance and related costs. Severance and related expenses for the quarters and years to date ended June 30, 2015 and 2014 by reporting segment is as follows (dollars in thousands): For the Quarter Ended For the Year to Date Ended 2015 2014 2015 2014 CTU $ 275 $ — $ 288 $ — AIU 339 — 339 — Total University Group 614 — 627 — Corporate and Other 4,318 — 4,318 — Transitional Group 7,704 — 8,435 — Total $ 12,636 $ — $ 13,380 $ — The current portion of the accrual for severance and related charges was $8.7 million and $1.4 million as of June 30, 2015 and June 30, 2014, respectively, which is recorded within current accrued expenses – payroll and related benefits; the long-term portion of $3.9 million and $1.0 million, respectively, is recorded within other non-current liabilities. In addition, as of June 30, 2015, we have accrued approximately $0.9 million related to retention bonuses that have been offered to certain employees. These amounts will be recorded ratably over the period the employees are retained; $0.6 million was recorded during the quarter ended June 30, 2015. In addition to the severance charges detailed above, a number of the teach-out campuses will have remaining lease obligations following the eventual campus closure, with the longest lease term being through 2023. The total estimated charge for all restructuring events reported within continuing operations related to the remaining lease obligation for these leases, once the campus completes the close process, and adjusted for possible lease buyouts and sublease assumptions is approximately $32 million – $37 million, of which approximately $2.2 million was recorded during the current year quarter and year to date. The amount related to each campus will be recorded at each campus closure date based on current estimates and assumptions related to the amount and timing of sublease income. |
Asset Impairments
Asset Impairments | 6 Months Ended |
Jun. 30, 2015 | |
Impairment or Disposal of Tangible Assets Disclosure [Abstract] | |
Asset Impairments | 10. ASSET IMPAIRMENTS During the second quarter of 2015, we identified indicators of asset impairments as a result of indications of interest during the sales process for our Missouri College and Briarcliffe College campuses. As a result, property and equipment was affected by asset impairment charges of approximately $1.2 million and $0.4 million for the quarter ended June 30, 2015 for Briarcliffe College and Missouri College, respectively, and intangible assets were affected by $0.1 million of asset impairment charges for Missouri College. The fair value for these assets was determined based upon a purchase agreement and letter of intent, respectively, for these campuses. Because the determination of the estimated fair value of these assets is based on direct quotes from active participants, these fair value measurements are categorized as Level 1 per ASC Topic 820. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 11. CONTINGENCIES An accrual for estimated legal fees and settlements of $1.9 million and $2.3 million at June 30, 2015 and December 31, 2014, respectively, is presented within other current liabilities on our condensed consolidated balance sheets. We record a liability when we believe that it is both probable that a loss will be incurred and the amount of loss can be reasonably estimated. We evaluate, at least quarterly, developments in our legal matters that could affect the amount of liability that was previously accrued, and make adjustments as appropriate. Significant judgment is required to determine both probability and the estimated amount. We may be unable to estimate a possible loss or range of possible loss due to various reasons, including, among others: (1) if the damages sought are indeterminate; (2) if the proceedings are in early stages; (3) if there is uncertainty as to the outcome of pending appeals, motions, or settlements; (4) if there are significant factual issues to be determined or resolved; and (5) if there are novel or unsettled legal theories presented. In such instances, there is considerable uncertainty regarding the ultimate resolution of such matters, including a possible eventual loss, if any. Litigation We are, or were, a party to the following legal proceedings that we consider to be outside the scope of ordinary routine litigation incidental to our business. Due to the inherent uncertainties of litigation, we cannot predict the ultimate outcome of these matters. An unfavorable outcome of any one or more of these matters could have a material adverse impact on our business, results of operations, cash flows and financial position. Student Litigation Enea, et al. v. Career Education Corporation, California Culinary Academy, Inc., SLM Corporation, and Sallie Mae, Inc. Defendants filed a motion to dismiss and to strike class action allegations on October 31, 2013. A hearing on the motions was conducted on March 14, 2014. Thereafter, the Court issued two separate orders granting the motion to strike the class allegations and the motion to dismiss without leave to amend. Plaintiffs filed a motion seeking leave to file a third amended complaint and/or for reconsideration of the Court’s orders. On May 9, 2014, the Court denied plaintiffs’ motion to reconsider its order striking the class allegations and granted plaintiffs leave to file a third amended complaint as to some, but not all, of plaintiffs’ claims. On May 15, 2014, plaintiffs appealed the Court’s ruling with respect to the motion to strike the class allegations. The Court has stayed the case pending a ruling on the appeal. Because of the many questions of fact and law that may arise in the future, the outcome of this legal proceeding is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of potential loss, if any, for this action because, among other things, our potential liability depends on whether a class is certified and, if so, the composition and size of any such class, as well as on an assessment of the appropriate measure of damages if we were to be found liable. Accordingly, we have not recognized any liability associated with this action. Surrett, et al. v. Western Culinary Institute, Ltd. and Career Education Corporation. Plaintiffs filed a fifth amended complaint on December 7, 2010, which included individual and class allegations by Nathan Surrett. Class notice was sent on April 22, 2011, and the opt-out period expired on June 20, 2011. The class consisted of approximately 2,600 members. They are seeking tuition refunds, interest and certain fees paid in connection with their enrollment at WCI. On May 23, 2012, WCI filed a motion to compel arbitration of claims by 1,062 individual class members who signed enrollment agreements containing express class action waivers. The Court issued an Order denying the motion on July 27, 2012. On August 6, 2012, WCI filed an appeal from the Court’s Order and on August 30, 2012, the Court of Appeals issued an Order granting WCI’s motion to compel the trial court to cease exercising jurisdiction in the case. The oral argument on the appeal was heard on May 9, 2014 and we are awaiting the Court’s decision. All proceedings with the trial court have been stayed pending the outcome of the appeal. Because of the many questions of fact and law that have already arisen and that may arise in the future, the outcome of this legal proceeding is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of potential loss, if any, for this action because of the inherent difficulty in assessing the appropriate measure of damages and the number of class members who might be entitled to recover damages, if we were to be found liable. Accordingly, we have not recognized any liability associated with this action. False Claims Act United States of America, ex rel. Melissa Simms Powell, et al. v. American InterContinental University, Inc., a Georgia Corporation, Career Education Corp., a Delaware Corporation and John Doe Nos. 1-100. Kellogg Brown & Root Servs., Inc. v. U.S. ex rel. Carter Because of the many questions of fact and law that may arise on appeal, the outcome of this legal proceeding is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of potential loss, if any, for this action because the complaint does not seek a specified amount of damages and it is unclear how damages would be calculated, if we were to be found liable. Moreover, the case presents novel legal issues. Accordingly, we have not recognized any liability associated with this action. United States of America, ex rel. Brent M. Nelson v. Career Education Corporation, Sanford-Brown, Ltd., and Ultrasound Technical Services, Inc. Because of the many questions of fact and law that may arise on appeal, the outcome of this legal proceeding is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of potential loss, if any, for this action because the complaint does not seek a specified amount of damages and it is unclear how damages would be calculated, if we were to be found liable. Accordingly, we have not recognized any liability associated with this action. United States of America, ex rel. Ann Marie Rega v. Career Education Corporation, et al. Because the matter is in its early stages and because of the many questions of fact and law that may arise, the outcome of this legal proceeding is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of potential loss, if any, for this action because the complaint does not seek a specified amount of damages and it is unclear how damages would be calculated, if we were to be found liable. Moreover, the case presents novel legal issues. Accordingly, we have not recognized any liability associated with this action. Employment Litigation Wilson, et al. v. Career Education Corporation The case now is on remand to the district court for further proceedings on the sole question of whether CEC’s termination of the ARSC Plan violated the implied covenant of good faith and fair dealing. The parties have completed fact discovery as to the issue of liability. On March 24, 2015, we filed a motion for summary judgment. The motion is fully briefed and the parties are awaiting a ruling from the Court. Because of the many questions of fact and law that may arise, the outcome of this legal proceeding is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of potential loss, if any, for this action. Accordingly, we have not recognized any liability associated with this action. Other Litigation In addition to the legal proceedings and other matters described above, we are also subject to a variety of other claims, lawsuits and investigations that arise from time to time out of the conduct of our business, including, but not limited to, claims involving prospective students, students or graduates, alleged violations of the Telephone Consumer Protection Act, both individually and on behalf of a putative class, and routine employment matters. While we currently believe that such claims, individually or in aggregate, will not have a material adverse impact on our financial position, cash flows or results of operations, these other matters are subject to inherent uncertainties, and management’s view of these matters may change in the future. Were an unfavorable final outcome to occur in any one or more of these matters, there exists the possibility of a material adverse impact on our business, reputation, financial position, cash flows, and the results of operations for the period in which the effect becomes probable and reasonably estimable. State Investigations The Attorney General of Connecticut is serving as the point of contact for inquiries received from the attorneys general of the following: Arkansas, Arizona, Connecticut, Idaho, Iowa, Kentucky, Missouri, Nebraska, North Carolina, Oregon, Pennsylvania, Washington (January 24, 2014); Illinois (December 9, 2011); Tennessee (February 7, 2014); Hawaii (May 28, 2014 ); New Mexico (May 2014); Maryland (March 16, 2015); and the District of Columbia (June 3, 2015) (these 18 attorneys general are collectively referred to as the “Multi-State AGs”). In addition, the Company has received inquiries from the attorneys general of Florida (November 5, 2010), Massachusetts (September 27, 2012), Colorado (August 27, 2013) and Minnesota (September 18, 2014). The inquiries are civil investigative demands or subpoenas which relate to the investigation by the attorneys general of whether the Company and its schools have complied with certain state consumer protection laws, and generally focus on the Company’s practices relating to the recruitment of students, graduate placement statistics, graduate certification and licensing results and student lending activities, among other matters. Depending on the state, the documents and information sought by the attorneys general in connection with their investigations cover time periods as early as 2006 to the present. The Company intends to cooperate with the states involved with a view towards resolving these inquiries as promptly as possible. In this regard, over the past several months the Company has participated in several meetings with representatives of the Multi-State AGs about the Company’s business and to engage in a dialogue towards a resolution of these inquiries. We cannot predict the scope, duration or outcome of these attorney general investigations. At the conclusion of any of these matters, the Company or certain of its schools may be subject to claims of failure to comply with state laws or regulations and may be required to pay significant financial penalties and/or curtail or modify their operations. Other state attorneys general may also initiate inquiries into the Company or its schools. If any of the foregoing occurs, our business, reputation, financial position, cash flows and results of operations could be materially adversely affected. Based on information available to us at present, we cannot reasonably estimate a range of potential monetary or non-monetary impact these investigations might have on the Company because it is uncertain what remedies, if any, these regulators might ultimately seek in connection with these investigations. In addition to the aforementioned inquiries, from time to time, we receive informal requests from state Attorneys General and other government agencies relating to specific complaints they have received from students or former students which seek information about the student, our programs, and other matters relating to our activities in the relevant state. These requests can be broad and time consuming to respond to, and there is a risk that they could expand and/or lead to a formal inquiry or investigation into our practices in a particular state. Regulatory Matters ED Inquiry and HCM1 Status In December 2011, the U.S. Department of Education (“ED”) advised the Company that it is conducting an inquiry concerning possible violations of ED misrepresentation regulations related to placement rates reported by certain of the Company’s institutions to accrediting bodies, students and potential students. This inquiry stems from the Company’s self-reporting to ED of its internal investigation into student placement determination practices at the Company’s previous Health Education segment campuses and review of placement determination practices at all of the Company’s other domestic campuses in 2011. The Company has been cooperating with ED in connection with this inquiry. If ED determines that the Company or any of its institutions violated ED misrepresentation regulations with regard to the publication or reporting of placement rates or other disclosures to students or prospective students or finds any other basis in the materials we are providing, ED may revoke, limit, suspend, delay or deny the institution’s or all of the Company’s institutions Title IV eligibility, or impose fines. In addition, a majority of the Company’s institutions are currently in the process of seeking recertification from ED to participate in Title IV Programs. We cannot predict whether, or to what extent, ED’s inquiry might impact this recertification process. In December 2011, ED also moved all of the Company’s institutions from the “advance” method of payment of Title IV Program funds to cash monitoring status (referred to as Heightened Cash Monitoring 1, or HCM1, status). Although the Company’s prior practices substantially conformed to the requirements of this more restrictive method of drawing down students’ Title IV Program funds, if ED finds violations of the HEA or related regulations, ED may impose monetary or program level sanctions, impose some period of delay in the Company’s receipt of Title IV funds or transfer the Company’s schools to the “reimbursement” or Heightened Cash Monitoring 2 (“HCM2”) methods of payment of Title IV Program funds. While on HCM2 status, an institution must disburse its own funds to students, document the students’ eligibility for Title IV Program funds and comply with certain waiting period requirements before receiving such funds from ED, which results in a significant delay in receiving those funds. The process of re-establishing a regular schedule of cash receipts for the Title IV Program funds if ED places our schools on “reimbursement” or HCM2 payment status could take several months, and would require us to fund ongoing operations substantially out of existing cash balances. If our existing cash balances are insufficient to sustain us through this transition period, we would need to pursue other sources of liquidity, which may not be available or may be costly. OIG Audit Our schools and universities are also subject to periodic audits by various regulatory bodies, including the U.S. Department of Education’s Office of Inspector General (“OIG”). The OIG audit services division commenced a compliance audit of CTU in June 2010, covering the period July 5, 2009 to May 16, 2010, to determine whether CTU had policies and procedures to ensure that CTU administered Title IV Program and other federal program funds in accordance with applicable federal law and regulation. On January 13, 2012, the OIG issued a draft report identifying three findings, including one regarding the documentation of attendance of students enrolled in online programs and one regarding the calculation of returns of Title IV Program funds arising from student withdrawals without official notice to the institution. CTU submitted a written response to the OIG, contesting these findings, on March 2, 2012. CTU disagreed with the OIG’s proposed determination of what constitutes appropriate documentation or verification of online academic activity during the time period covered by the audit. CTU’s response asserted that this finding was based on the retroactive application of standards adopted as part of the program integrity regulations that first went into effect on July 1, 2011. The OIG final report, along with CTU’s response to the draft report, was forwarded to ED’s Office of Federal Student Aid on September 21, 2012. On October 24, 2012, CTU provided a further response challenging the findings of the report directly to ED’s Office of Federal Student Aid. As a result of ED’s review of these materials, on January 31, 2013, CTU received a request from ED that it perform two file reviews to determine potential liability on two discrete issues associated with one of the above findings. The first file review relates to any potential aid awarded to students who engaged in virtual classroom attendance activities prior to the official start date of a course and for which no further attendance was registered during the official class term. The second file review relates to students that were awarded and paid Pell funds for enrollment in two concurrent courses, while only registering attendance in one of the two courses. The Company completed these file reviews and provided supporting documentation to ED on April 10, 2013. As of June 30, 2015, the Company has a $0.8 million reserve recorded related to this matter. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. INCOME TAXES The determination of the annual effective tax is based upon a number of significant estimates and judgments, including the estimated annual pretax income in each tax jurisdiction in which we operate and the ongoing development of tax planning strategies during the year. In addition, our provision for income taxes can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, as well as other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions. The following is a summary of our (benefit from) provision for income taxes and effective tax rate from continuing operations: For the Quarter Ended For the Year to Date 2015 2014 2015 2014 Pretax loss $ (10,218 ) $ (11,664 ) $ (35,208 ) $ (33,106 ) (Benefit from) provision for income taxes $ (747 ) $ 1,854 $ (958 ) $ 2,074 Effective rate -7.3 % 15.9 % -2.7 % 6.3 % As of December 31, 2014, we reported a total deferred tax valuation allowance of $150.4 million within our consolidated balance sheet. After considering both positive and negative evidence related to the likelihood of realization of the deferred tax assets, we have determined that it is necessary to continue to record this valuation allowance against our net deferred tax assets as of June 30, 2015. The effective tax benefit for the quarter and year to date ended June 30, 2015 approximates $0.7 million and $1.0 million, respectively. The cumulative effect of federal and state valuation losses reduced the effective tax rate benefit by 37.1% for the current year to date. The current quarter tax rate was also impacted by nominal uncertain tax position activity and the recording of discrete items for state and local income tax and federal audit interest refunds, the net effect of which resulted in a -7.3% effective tax rate. We estimate that it is reasonably possible that the gross liability for unrecognized tax benefits for a variety of uncertain tax positions will decrease by up to $1.8 million in the next twelve months as a result of the completion of various state tax audits currently in process and the expiration of the statute of limitations in several jurisdictions. The income tax rate for the quarter ended June 30, 2015 does not take into account the possible reduction of the liability for unrecognized tax benefits. The impact of a reduction to the liability will be treated as a discrete item in the period the reduction occurs. We recognize interest and penalties related to unrecognized tax benefits in tax expense. As of June 30, 2015, we had accrued $2.5 million as an estimate for reasonably possible interest and accrued penalties. Our tax returns are routinely examined by federal, state, local and foreign tax authorities and these audits are at various stages of completion at any given time. The Internal Revenue Service completed its examination of our U.S. income tax returns through our tax year ended December 31, 2012. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | 13. SHARE-BASED COMPENSATION Overview of Share-Based Compensation Plans The Career Education Corporation 2008 Incentive Compensation Plan (the “2008 Plan”) authorizes awards of stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock, performance units, annual incentive awards, and substitute awards, which generally may be settled in cash or shares of our common stock. Any shares of our common stock that are subject to awards of stock options or stock appreciation rights payable in shares will be counted as 1.0 share for each share issued for purposes of the aggregate share limit and any shares of our common stock that are subject to any other form of award payable in shares will be counted as 1.67 shares for each share issued for purposes of the aggregate share limit. As of June 30, 2015, there were approximately 6.5 million shares of common stock available for future share-based awards under the 2008 Plan, which is net of 2.8 million shares issuable upon exercise of outstanding options. This amount does not reflect 0.7 million and 0.1 million shares underlying restricted stock units and deferred stock units, respectively, as of June 30, 2015, which will be settled in shares of our common stock if the vesting conditions are met and thus reduce the common stock available for future share-based awards under the 2008 Plan by the amount vested, multiplied by the applicable factor under the plan. The vesting of all types of equity awards (stock options, stock appreciation rights, restricted stock awards, restricted stock units and deferred stock units) is subject to possible acceleration in certain circumstances. Generally, if a plan participant terminates employment for any reason other than by death or disability during the vesting period, the right to unvested equity awards is forfeited. As of June 30, 2015, we estimate that compensation expense of approximately $5.0 million will be recognized over the next four years for all unvested share-based awards that have been granted to participants, including stock options, shares of restricted stock and restricted stock units and deferred stock units to be settled in shares of stock but excluding restricted stock units to be settled in cash. Stock Options. Stock option activity during the year to date ended June 30, 2015 under all of our plans was as follows (options in thousands): Options Weighted Average Outstanding as of December 31, 2014 3,782 $ 12.88 Granted 541 5.22 Exercised (232 ) 2.72 Forfeited (966 ) 4.24 Cancelled (336 ) 19.18 Outstanding as of June 30, 2015 2,789 $ 14.47 Exercisable as of June 30, 2015 1,922 $ 18.69 Restricted Stock and Restricted Stock Units to be Settled in Stock. The following table summarizes information with respect to all outstanding restricted stock and restricted stock units to be settled in shares of stock under our plans during the year to date ended June 30, 2015 (shares and units in thousands): Restricted Stock to be Settled in Shares of Stock Shares Weighted Grant-Date Units Weighted Grant-Date Total Outstanding as of December 31, 2014 43 $ 21.63 556 $ 7.35 599 Granted — — 570 5.81 570 Vested (39 ) 21.80 (183 ) 8.37 (222 ) Forfeited (3 ) 21.80 (224 ) 6.23 (227 ) Outstanding as of June 30, 2015 1 $ 7.21 719 $ 6.23 720 Deferred Stock Units to be Settled in Stock. The following table summarizes information with respect to all deferred stock units during the year to date ended June 30, 2015 (units in thousands): Deferred Weighted Grant-Date Outstanding as of December 31, 2014 117 $ 4.39 Granted 3 5.73 Vested (1) (15 ) 4.39 Forfeited — — Outstanding as of June 30, 2015 105 $ 4.43 (1) The total vested awards exclude 0.3 thousand of vested but, unreleased awards. These awards are included in total outstanding awards until they are released under the terms of the agreement. Restricted Stock Units to be Settled in Cash. The following table summarizes information with respect to all cash-settled restricted stock units during the year to date ended June 30, 2015 (units in thousands): Restricted Outstanding as of December 31, 2014 1,842 Granted 440 Vested (444 ) Forfeited (386 ) Outstanding as of June 30, 2015 1,452 Upon vesting, based on the conditions set forth in the award agreements, these units will be settled in cash. We valued these units in accordance with the guidance set forth by FASB ASC Topic 718 – Compensation-Stock Compensation Stock-Based Compensation Expense For the Quarter Ended For the Year to Date Ended Award Type 2015 (1) 2014 2015 2014 Stock Options $ 124 $ 331 $ 394 $ 792 Restricted stock or units settled in stock 239 678 1,527 1,548 Restricted stock units settled in cash 256 221 544 2,345 Stock appreciation rights settled in cash — (78 ) — 54 Total stock-based compensation expense $ 619 $ 1,152 $ 2,465 $ 4,739 (1) Stock-based compensation expense for the year to date of 2015 does not reflect $1.5 million of forfeitures related to our former Chief Executive Officer’s departure which was applied against the separation agreement payment of $2.5 million. Performance Unit Awards. |
Weighted Average Common Shares
Weighted Average Common Shares | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Weighted Average Common Shares | 14. WEIGHTED AVERAGE COMMON SHARES Basic net (loss) income per share is calculated by dividing net (loss) income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net (loss) income by the weighted average number of shares assuming dilution. Dilutive common shares outstanding is computed using the Treasury Stock Method and reflects the additional shares that would be outstanding if dilutive stock options were exercised and restricted stock and restricted stock units were settled for common shares during the period. Due to the fact that we reported a loss from continuing operations for the quarters and years to date ended June 30, 2015 and 2014, potential common stock equivalents are excluded from the diluted common shares outstanding calculation. Per FASB ASC Topic 260 – Earnings Per Share |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | 15. SEGMENT REPORTING Our segments are determined in accordance with FASB ASC Topic 280 – Segment Reporting University Group: Colorado Technical University (CTU) American InterContinental University (AIU) Transitional Group Summary financial information by reporting segment is as follows (dollars in thousands): For the Quarter Ended June 30, Revenue Operating (Loss) Income 2015 % of 2014 % of 2015 2014 CTU $ 86,174 49.3 % $ 85,041 45.7 % $ 24,263 $ 20,957 AIU 52,024 29.8 % 49,685 26.7 % 5,174 (1,331 ) Total University Group 138,198 79.1 % 134,726 72.4 % 29,437 19,626 Corporate and Other 39 0.0 % 38 0.0 % (7,036 ) (5,513 ) Transitional Group 36,543 20.9 % 51,408 27.6 % (31,733 ) (25,364 ) Total $ 174,780 100.0 % $ 186,172 100.0 % $ (9,332 ) $ (11,251 ) For the Year to Date Ended June 30, Revenue Operating (Loss) Income 2015 % of 2014 % of 2015 2014 CTU $ 171,301 48.0 % $ 171,961 44.7 % $ 38,879 $ 35,438 AIU 105,090 29.4 % 102,258 26.6 % 2,287 (4,914 ) Total University Group 276,391 77.4 % 274,219 71.4 % 41,166 30,524 Corporate and Other 78 0.0 % 138 0.0 % (12,896 ) (16,649 ) Transitional Group 80,613 22.6 % 109,969 28.6 % (62,203 ) (47,075 ) Total $ 357,082 100.0 % $ 384,326 100.0 % $ (33,933 ) $ (33,200 ) Total Assets as of (1) June 30, December 31, CTU $ 74,449 $ 73,458 AIU 53,071 51,755 Total University Group 127,520 125,213 Corporate and Other 274,059 332,672 Transitional Group 21,123 37,355 Subtotal 422,702 495,240 Assets held for sale 66,541 76,846 Discontinued Operations 1,133 1,448 Total $ 490,376 $ 573,534 (1) Total assets do not include intercompany receivable or payable activity between schools and corporate and investments in subsidiaries. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | 16. SUBSEQUENT EVENT On July 31, 2015, we announced the appointment of Todd Nelson to the position of President and Chief Executive Officer. Mr. Nelson is expected to join the Company on August 12, 2015 and will also be appointed to the Board of Directors for Career Education. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Discontinued Operations | Effective January 1, 2015, ASC Topic 360 – Property, Plant and Equipment, During the second quarter of 2015, the Company completed the sale of its Brooks Institute and signed a definitive agreement to sell its Missouri College campus with an expected closing date during the third quarter of 2015. As a result, the assets and liabilities of Missouri College are classified as held for sale within continuing operations as of June 30, 2015. The historical results of operations for Brooks Institute continue to be reported within continuing operations and the loss on sale for this campus is reported within other (expense) income on our consolidated statements of loss and comprehensive loss. |
Fair Value Measurements | Fair Value Measurements FASB ASC Topic 820 – Fair Value Measurements |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary Results of Operations for Discontinued Operations | The summary of unaudited results of operations for our discontinued operations for the quarters and years to date ended June 30, 2015 and 2014 were as follows (dollars in thousands): For the Quarter Ended (1) For the Year to Date Ended (1) 2015 2014 2015 2014 Revenue $ 42,019 $ 44,195 $ 86,763 $ 89,420 Operating expenses: Educational services and facilities 19,531 29,519 39,404 62,166 General and administrative 24,014 35,083 49,074 78,991 Depreciation and amortization 74 5,025 1 10,511 Asset impairment (2) 9,687 7,451 9,687 7,444 Total operating expenses 53,306 77,078 98,166 159,112 Loss before income tax $ (11,252 ) $ (33,046 ) $ (11,354 ) $ (69,527 ) Income tax expense (3) — — — — Loss from discontinued operations, net of tax $ (11,252 ) $ (33,046 ) $ (11,354 ) $ (69,527 ) Net loss per diluted share $ (0.17 ) $ (0.49 ) $ (0.16 ) $ (1.04 ) Capital expenditures $ 80 $ 419 $ 319 $ 604 (1) Includes the results of operations for our LCB campuses that are held for sale, which met the criteria to be considered discontinued operations under ASC Topic 360, in addition to our Transitional Group campuses that completed their teach-out prior to 2015. (2) Asset impairment charges for the current year quarter relate to impairment recorded for our LCB campuses which are held for sale as a result of our fair value analysis. (3) Due to the valuation allowance against our net deferred taxes, there is no income tax benefit reported for the quarters and years to date ended June 30, 2015 and 2014. |
Assets and Liabilities of Discontinued Operations on Consolidated Balance Sheets | Assets and liabilities of discontinued operations on our condensed consolidated balance sheets for campuses that have ceased operations or were sold as of June 30, 2015 and December 31, 2014 include the following (dollars in thousands): June 30, December 31, Assets: Current assets: Receivables, net $ 280 $ 473 Total current assets 280 473 Non-current assets: Other assets, net 853 975 Total assets of discontinued operations (1) $ 1,133 $ 1,448 Liabilities: Current liabilities: Accounts payable and accrued expenses $ 170 $ 579 Remaining lease obligations 13,173 14,927 Total current liabilities 13,343 15,506 Non-current liabilities: Remaining lease obligations 14,820 22,689 Other 164 170 Total liabilities of discontinued operations (1) $ 28,327 $ 38,365 (1) Excludes assets and liabilities for our LCB campuses which are presented within assets and liabilities held for sale on our condensed consolidated balance sheets as of June 30, 2015 and December 31, 2014. See Note 6 “Assets Held for Sale” for further details. |
Changes in Future Remaining Lease Obligations Discontinued Operations | Changes in our future remaining lease obligations, which are reflected within current and non-current liabilities of discontinued operations and within liabilities held for sale on our unaudited condensed consolidated balance sheets, for the quarters and years to date ended June 30, 2015 and 2014 were as follows (dollars in thousands): Balance, Charges (1) Net Cash Other (2) Balance, For the quarter ended June 30, 2015 $ 33,441 $ (215 ) $ (4,214 ) $ 576 $ 29,588 For the quarter ended June 30, 2014 $ 50,745 $ 6,100 $ (6,026 ) $ 1,778 $ 52,597 For the year to date ended June 30, 2015 $ 39,869 $ (701 ) $ (10,156 ) $ 576 $ 29,588 For the year to date ended June 30, 2014 $ 46,755 $ 13,419 $ (12,790 ) $ 5,213 $ 52,597 (1) Includes charges for newly vacated spaces and subsequent adjustments for accretion, revised estimates and variances between estimated and actual charges, net of any reversals for terminated lease obligations. (2) Includes existing prepaid rent and deferred rent liability balances for newly vacated spaces that are netted with the losses incurred in the period recorded. |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Summary of Assets and Liabilities of Assets Held for Sale on Balance Sheets | Assets and liabilities of assets held for sale on our condensed consolidated balance sheets as of June 30, 2015 and December 31, 2014 include the following (dollars in thousands): June 30, December 31, (1) Assets: Receivables, net $ 8,111 $ 8,303 Property and equipment, net 42,808 42,521 Other intangible assets 18,400 18,400 Other assets 6,903 7,622 Valuation allowance (2) (9,681 ) — Total assets held for sale $ 66,541 $ 76,846 Liabilities: Accounts payable and accrued expenses $ 10,619 $ 12,410 Deferred revenue 15,018 17,001 Remaining lease obligations 1,595 2,253 Other liabilities 17,767 18,693 Total liabilities held for sale $ 44,999 $ 50,357 (1) Only assets and liabilities related to our LCB institutions were reported as held for sale as of December 31, 2014. (2) During the second quarter of 2015, a valuation allowance was recorded against our LCB assets held for sale as a result of $9.7 million of impairment charges recorded. |
Continuing Operation [Member] | |
Summary of Unaudited Results of Operations for Assets Held for Sale | The summary of unaudited results of operations for our assets held for sale for the quarters and years to date ended June 30, 2015 and 2014 were as follows (dollars in thousands): Reported within loss from continuing operations for our Missouri College campus For the Quarter Ended For the Year to Date Ended 2015 2014 2015 2014 Revenue $ 1,876 $ 1,864 $ 3,735 $ 3,811 Operating Expenses: Educational services and facilities 1,099 1,060 2,134 2,193 General and administrative 1,905 1,741 3,587 3,403 Depreciation and amortization 79 170 158 343 Asset impairment 518 — 518 — Total operating expenses 3,601 2,971 6,397 5,939 Operating loss $ (1,725 ) $ (1,107 ) $ (2,662 ) $ (2,128 ) |
Discontinued Operations [Member] | |
Summary of Unaudited Results of Operations for Assets Held for Sale | Reported within loss from discontinued operations for our LCB campuses For the Quarter Ended For the Year to Date Ended 2015 2014 2015 2014 Revenue $ 42,048 $ 42,566 $ 86,760 $ 84,813 Operating Expenses: Educational services and facilities 19,115 19,965 39,058 39,305 General and administrative 23,806 30,663 48,331 67,348 Depreciation and amortization — 4,310 1 8,578 Asset impairment 9,687 7,400 9,687 7,400 Total operating expenses 52,608 62,338 97,077 122,631 Operating loss $ (10,560 ) $ (19,772 ) $ (10,317 ) $ (37,818 ) |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Investments from Continuing Operations | Investments from our continuing operations consist of the following as of June 30, 2015 and December 31, 2014 (dollars in thousands): June 30, 2015 Gross Unrealized Cost Gain (Loss) Fair Value Short-term investments (available for sale): Municipal bonds $ 5,158 $ 1 $ (47 ) $ 5,112 Non-governmental debt securities 92,152 12 (162 ) 92,002 Treasury and federal agencies 22,913 14 (15 ) 22,912 Total short-term investments 120,223 27 (224 ) 120,026 Long-term investments (available for sale): Municipal bond 7,850 — (476 ) 7,374 Total investments (available for sale) $ 128,073 $ 27 $ (700 ) $ 127,400 December 31, 2014 Gross Unrealized Cost Gain (Loss) Fair Value Short-term investments (available for sale): Municipal bonds $ 6,880 $ 1 $ (56 ) $ 6,825 Non-governmental debt securities 98,400 1 (271 ) 98,130 Treasury and federal agencies 17,928 6 (31 ) 17,903 Total short-term investments 123,208 8 (358 ) 122,858 Long-term investments (available for sale): Municipal bond 7,850 — (476 ) 7,374 Total investments (available for sale) $ 131,058 $ 8 $ (834 ) $ 130,232 |
Investments Measured at Fair Value on Recurring Basis | Investments measured at fair value on a recurring basis subject to the disclosure requirements of FASB ASC Topic 820 – Fair Value Measurements As of June 30, 2015 Level 1 Level 2 Level 3 Total Municipal bonds $ — $ 5,112 $ 7,374 $ 12,486 Non-governmental debt securities — 92,002 — 92,002 Treasury and federal agencies — 22,912 — 22,912 Totals $ — $ 120,026 $ 7,374 $ 127,400 As of December 31, 2014 Level 1 Level 2 Level 3 Total Municipal bonds $ — $ 6,825 $ 7,374 $ 14,199 Non-governmental debt securities — 98,130 — 98,130 Treasury and federal agencies — 17,903 — 17,903 Totals $ — $ 122,858 $ 7,374 $ 130,232 |
Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | The following table presents a rollforward of our assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as defined in FASB ASC Topic 820 for the year to date ended June 30, 2015 (dollars in thousands): Balance at December 31, 2014 $ 7,374 Unrealized gain (loss) — Balance at June 30, 2015 $ 7,374 |
Student Receivables (Tables)
Student Receivables (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Changes in Current and Non-Current Receivables Allowance | Changes in our current and non-current receivables allowance for the quarters and years to date ended June 30, 2015 and 2014 were as follows (dollars in thousands): Balance, Charges to (1) Amounts Balance, (2) For the quarter ended June 30, 2015 $ 14,140 $ 4,396 $ (4,177 ) $ 14,359 For the quarter ended June 30, 2014 $ 16,987 $ 5,664 $ (6,069 ) $ 16,582 For the year to date ended June 30, 2015 $ 14,517 $ 8,418 $ (8,576 ) $ 14,359 For the year to date ended June 30, 2014 $ 17,570 $ 10,720 $ (11,708 ) $ 16,582 (1) Charges to expense include an offset for recoveries of amounts previously written off of $1.2 million and $1.5 million for the quarters ended June 30, 2015 and 2014, respectively, and $2.3 million and $3.1 million for the years to date ended June 30, 2015 and 2014, respectively. (2) Includes amounts for allowances related to receivables reported within our assets held for sale within continuing operations. |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Accrual for Severance and Related Costs | The following table details the changes in our accrual for severance and related costs associated with all restructuring events for our continuing operations during the quarters and years to date ended June 30, 2015 and 2014 (dollars in thousands): Balance, Severance & (1) (2) Payments Non-cash (3) Balance, For the quarter ended June 30, 2015 $ 2,456 $ 12,636 $ (2,238 ) $ (302 ) $ 12,552 For the quarter ended June 30, 2014 $ 2,657 $ — $ (308 ) $ 17 $ 2,366 For the year to date ended June 30, 2015 $ 2,701 $ 13,380 $ (3,009 ) $ (520 ) $ 12,552 For the year to date ended June 30, 2014 $ 3,243 $ — $ (694 ) $ (183 ) $ 2,366 (1) Includes charges related to COBRA and outplacement services which are assumed to be completed by the third month following an employee’s departure. (2) Severance payments will result in future cash expenditures through 2018. (3) Includes cancellations due to employee departures prior to agreed upon end dates, employee transfers to open positions within the organization and subsequent adjustments to severance and related costs. |
Restructuring Charges by Segment | Severance and related expenses for the quarters and years to date ended June 30, 2015 and 2014 by reporting segment is as follows (dollars in thousands): For the Quarter Ended For the Year to Date Ended 2015 2014 2015 2014 CTU $ 275 $ — $ 288 $ — AIU 339 — 339 — Total University Group 614 — 627 — Corporate and Other 4,318 — 4,318 — Transitional Group 7,704 — 8,435 — Total $ 12,636 $ — $ 13,380 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of (Benefit from) Provision for Income Taxes and Effective Tax Rate from Continuing Operations | The following is a summary of our (benefit from) provision for income taxes and effective tax rate from continuing operations: For the Quarter Ended For the Year to Date 2015 2014 2015 2014 Pretax loss $ (10,218 ) $ (11,664 ) $ (35,208 ) $ (33,106 ) (Benefit from) provision for income taxes $ (747 ) $ 1,854 $ (958 ) $ 2,074 Effective rate -7.3 % 15.9 % -2.7 % 6.3 % |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Schedule of Deferred Stock Units to be Settled in Shares | The following table summarizes information with respect to all deferred stock units during the year to date ended June 30, 2015 (units in thousands): Deferred Weighted Grant-Date Outstanding as of December 31, 2014 117 $ 4.39 Granted 3 5.73 Vested (1) (15 ) 4.39 Forfeited — — Outstanding as of June 30, 2015 105 $ 4.43 (1) The total vested awards exclude 0.3 thousand of vested but, unreleased awards. These awards are included in total outstanding awards until they are released under the terms of the agreement. |
Schedule of Restricted Stock Units to be Settled in Cash | The following table summarizes information with respect to all cash-settled restricted stock units during the year to date ended June 30, 2015 (units in thousands): Restricted Outstanding as of December 31, 2014 1,842 Granted 440 Vested (444 ) Forfeited (386 ) Outstanding as of June 30, 2015 1,452 |
Summary of Total Stock Based Compensation Expense | Stock-Based Compensation Expense For the Quarter Ended For the Year to Date Ended Award Type 2015 (1) 2014 2015 2014 Stock Options $ 124 $ 331 $ 394 $ 792 Restricted stock or units settled in stock 239 678 1,527 1,548 Restricted stock units settled in cash 256 221 544 2,345 Stock appreciation rights settled in cash — (78 ) — 54 Total stock-based compensation expense $ 619 $ 1,152 $ 2,465 $ 4,739 (1) Stock-based compensation expense for the year to date of 2015 does not reflect $1.5 million of forfeitures related to our former Chief Executive Officer’s departure which was applied against the separation agreement payment of $2.5 million. |
Restricted Stock Shares [Member] | |
Schedule of Information with Respect to all Outstanding Restricted Stock | The following table summarizes information with respect to all outstanding restricted stock and restricted stock units to be settled in shares of stock under our plans during the year to date ended June 30, 2015 (shares and units in thousands): Restricted Stock to be Settled in Shares of Stock Shares Weighted Grant-Date Units Weighted Grant-Date Total Outstanding as of December 31, 2014 43 $ 21.63 556 $ 7.35 599 Granted — — 570 5.81 570 Vested (39 ) 21.80 (183 ) 8.37 (222 ) Forfeited (3 ) 21.80 (224 ) 6.23 (227 ) Outstanding as of June 30, 2015 1 $ 7.21 719 $ 6.23 720 |
Employee Stock Option [Member] | |
Summary of Stock Option Activity | Stock option activity during the year to date ended June 30, 2015 under all of our plans was as follows (options in thousands): Options Weighted Average Outstanding as of December 31, 2014 3,782 $ 12.88 Granted 541 5.22 Exercised (232 ) 2.72 Forfeited (966 ) 4.24 Cancelled (336 ) 19.18 Outstanding as of June 30, 2015 2,789 $ 14.47 Exercisable as of June 30, 2015 1,922 $ 18.69 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Summary Financial Information by Reporting Segment | Summary financial information by reporting segment is as follows (dollars in thousands): For the Quarter Ended June 30, Revenue Operating (Loss) Income 2015 % of 2014 % of 2015 2014 CTU $ 86,174 49.3 % $ 85,041 45.7 % $ 24,263 $ 20,957 AIU 52,024 29.8 % 49,685 26.7 % 5,174 (1,331 ) Total University Group 138,198 79.1 % 134,726 72.4 % 29,437 19,626 Corporate and Other 39 0.0 % 38 0.0 % (7,036 ) (5,513 ) Transitional Group 36,543 20.9 % 51,408 27.6 % (31,733 ) (25,364 ) Total $ 174,780 100.0 % $ 186,172 100.0 % $ (9,332 ) $ (11,251 ) For the Year to Date Ended June 30, Revenue Operating (Loss) Income 2015 % of 2014 % of 2015 2014 CTU $ 171,301 48.0 % $ 171,961 44.7 % $ 38,879 $ 35,438 AIU 105,090 29.4 % 102,258 26.6 % 2,287 (4,914 ) Total University Group 276,391 77.4 % 274,219 71.4 % 41,166 30,524 Corporate and Other 78 0.0 % 138 0.0 % (12,896 ) (16,649 ) Transitional Group 80,613 22.6 % 109,969 28.6 % (62,203 ) (47,075 ) Total $ 357,082 100.0 % $ 384,326 100.0 % $ (33,933 ) $ (33,200 ) Total Assets as of (1) June 30, December 31, CTU $ 74,449 $ 73,458 AIU 53,071 51,755 Total University Group 127,520 125,213 Corporate and Other 274,059 332,672 Transitional Group 21,123 37,355 Subtotal 422,702 495,240 Assets held for sale 66,541 76,846 Discontinued Operations 1,133 1,448 Total $ 490,376 $ 573,534 (1) Total assets do not include intercompany receivable or payable activity between schools and corporate and investments in subsidiaries. |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | 6 Months Ended | |
Jun. 30, 2015SegmentCampus | May. 01, 2015Campus | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Number of reporting segments | Segment | 3 | |
Number of campuses completed teach out activities | 2 | |
Career Colleges Segment [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Number of campuses | 3 | |
Sanford Brown Campuses [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Number of campuses | 15 |
Dispositions - Additional Infor
Dispositions - Additional Information (Detail) - Jun. 30, 2015 - USD ($) | Total | Total |
Discontinued Operations and Disposal Groups [Abstract] | ||
Total consideration to sale agreement | $ 0 | |
Loss on sale of business | $ (917,000) | $ (917,000) |
Discontinued Operations - Summa
Discontinued Operations - Summary Results of Operations for Discontinued Operations (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Discontinued Operations and Disposal Groups [Abstract] | |||||
Revenue | [1] | $ 42,019,000 | $ 44,195,000 | $ 86,763,000 | $ 89,420,000 |
Operating expenses: | |||||
Educational services and facilities | [1] | 19,531,000 | 29,519,000 | 39,404,000 | 62,166,000 |
General and administrative | [1] | 24,014,000 | 35,083,000 | 49,074,000 | 78,991,000 |
Depreciation and amortization | [1] | 74,000 | 5,025,000 | 1,000 | 10,511,000 |
Asset impairment | [1],[2] | 9,687,000 | 7,451,000 | 9,687,000 | 7,444,000 |
Total operating expenses | [1] | 53,306,000 | 77,078,000 | 98,166,000 | 159,112,000 |
Loss before income tax | [1] | (11,252,000) | (33,046,000) | (11,354,000) | (69,527,000) |
Income tax expense | [1],[3] | 0 | 0 | 0 | 0 |
Loss from discontinued operations, net of tax | [1] | $ (11,252,000) | $ (33,046,000) | $ (11,354,000) | $ (69,527,000) |
Net loss per diluted share | [1] | $ (0.17) | $ (0.49) | $ (0.16) | $ (1.04) |
Capital expenditures | [1] | $ 80,000 | $ 419,000 | $ 319,000 | $ 604,000 |
[1] | Includes the results of operations for our LCB campuses that are held for sale, which met the criteria to be considered discontinued operations under ASC Topic 360, in addition to our Transitional Group campuses that completed their teach-out prior to 2015. | ||||
[2] | Asset impairment charges for the current year quarter relate to impairment recorded for our LCB campuses which are held for sale as a result of our fair value analysis. | ||||
[3] | Due to the valuation allowance against our net deferred taxes, there is no income tax benefit reported for the quarters and years to date ended June 30, 2015 and 2014. |
Discontinued Operations - Sum34
Discontinued Operations - Summary Results of Operations for Discontinued Operations (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Discontinued Operations and Disposal Groups [Abstract] | |||||
Benefit from income taxes | [1],[2] | $ 0 | $ 0 | $ 0 | $ 0 |
[1] | Due to the valuation allowance against our net deferred taxes, there is no income tax benefit reported for the quarters and years to date ended June 30, 2015 and 2014. | ||||
[2] | Includes the results of operations for our LCB campuses that are held for sale, which met the criteria to be considered discontinued operations under ASC Topic 360, in addition to our Transitional Group campuses that completed their teach-out prior to 2015. |
Discontinued Operations - Asset
Discontinued Operations - Assets and Liabilities of Discontinued Operations on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | |||
Receivables, net | $ 280 | $ 473 | |
Total current assets | 280 | 473 | |
Other assets, net | 853 | 975 | |
Total assets of discontinued operations | [1] | 1,133 | 1,448 |
Accounts payable and accrued expenses | 170 | 579 | |
Remaining lease obligations | 13,173 | 14,927 | |
Total current liabilities | 13,343 | 15,506 | |
Remaining lease obligations | 14,820 | 22,689 | |
Other | 164 | 170 | |
Total liabilities of discontinued operations | [1] | $ 28,327 | $ 38,365 |
[1] | Excludes assets and liabilities for our LCB campuses which are presented within assets and liabilities held for sale on our condensed consolidated balance sheets as of June 30, 2015 and December 31, 2014. See Note 6 "Assets Held for Sale" for further details. |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Lease expiration year | 2,020 |
Discontinued Operations - Chang
Discontinued Operations - Changes in Future Remaining Lease Obligations Discontinued Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Discontinued Operations and Disposal Groups [Abstract] | |||||
Balance, Beginning of Period | $ 33,441 | $ 50,745 | $ 39,869 | $ 46,755 | |
Charges Incurred | [1] | (215) | 6,100 | (701) | 13,419 |
Net Cash Payments | (4,214) | (6,026) | (10,156) | (12,790) | |
Other | [2] | 576 | 1,778 | 576 | 5,213 |
Balance, End of Period | $ 29,588 | $ 52,597 | $ 29,588 | $ 52,597 | |
[1] | Includes charges for newly vacated spaces and subsequent adjustments for accretion, revised estimates and variances between estimated and actual charges, net of any reversals for terminated lease obligations. | ||||
[2] | Includes existing prepaid rent and deferred rent liability balances for newly vacated spaces that are netted with the losses incurred in the period recorded. |
Assets Held for Sale - Summary
Assets Held for Sale - Summary of Unaudited Results of Operations for Assets Held for Sale (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Assets Held For Sale [Line Items] | |||||
Revenue | $ 174,780 | $ 186,172 | $ 357,082 | $ 384,326 | |
Operating Expenses: | |||||
Educational services and facilities | 53,949 | 59,001 | 108,900 | 120,639 | |
General and administrative | 121,365 | 129,051 | 260,513 | 277,497 | |
Depreciation and amortization | 7,113 | 9,368 | 13,898 | 19,313 | |
Asset impairment | 1,685 | 3 | 7,704 | 77 | |
Operating loss | (9,332) | (11,251) | (33,933) | (33,200) | |
Operating expenses: | |||||
Revenue | [1] | 42,019 | 44,195 | 86,763 | 89,420 |
Operating Expenses: | |||||
Educational services and facilities | [1] | 19,531 | 29,519 | 39,404 | 62,166 |
General and administrative | [1] | 24,014 | 35,083 | 49,074 | 78,991 |
Depreciation and amortization | [1] | 74 | 5,025 | 1 | 10,511 |
Asset impairment | [1],[2] | 9,687 | 7,451 | 9,687 | 7,444 |
Total operating expenses | [1] | 53,306 | 77,078 | 98,166 | 159,112 |
Continuing Operation [Member] | Missouri College [Member] | |||||
Assets Held For Sale [Line Items] | |||||
Revenue | 1,876 | 1,864 | 3,735 | 3,811 | |
Operating Expenses: | |||||
Educational services and facilities | 1,099 | 1,060 | 2,134 | 2,193 | |
General and administrative | 1,905 | 1,741 | 3,587 | 3,403 | |
Depreciation and amortization | 79 | 170 | 158 | 343 | |
Asset impairment | 518 | 518 | |||
Total operating expenses | 3,601 | 2,971 | 6,397 | 5,939 | |
Operating loss | (1,725) | (1,107) | (2,662) | (2,128) | |
Discontinued Operations [Member] | LCB Institutions [Member] | |||||
Operating expenses: | |||||
Revenue | 42,048 | 42,566 | 86,760 | 84,813 | |
Operating Expenses: | |||||
Educational services and facilities | 19,115 | 19,965 | 39,058 | 39,305 | |
General and administrative | 23,806 | 30,663 | 48,331 | 67,348 | |
Depreciation and amortization | 4,310 | 1 | 8,578 | ||
Asset impairment | 9,687 | 7,400 | 9,687 | 7,400 | |
Total operating expenses | 52,608 | 62,338 | 97,077 | 122,631 | |
Operating loss | $ (10,560) | $ (19,772) | $ (10,317) | $ (37,818) | |
[1] | Includes the results of operations for our LCB campuses that are held for sale, which met the criteria to be considered discontinued operations under ASC Topic 360, in addition to our Transitional Group campuses that completed their teach-out prior to 2015. | ||||
[2] | Asset impairment charges for the current year quarter relate to impairment recorded for our LCB campuses which are held for sale as a result of our fair value analysis. |
Assets Held for Sale - Addition
Assets Held for Sale - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Assets Held For Sale [Line Items] | |||||
Asset impairment charges | [1],[2] | $ 9,687 | $ 7,451 | $ 9,687 | $ 7,444 |
Discontinued Operations [Member] | LCB Institutions [Member] | |||||
Assets Held For Sale [Line Items] | |||||
Asset impairment charges | $ 9,687 | $ 7,400 | $ 9,687 | $ 7,400 | |
[1] | Asset impairment charges for the current year quarter relate to impairment recorded for our LCB campuses which are held for sale as a result of our fair value analysis. | ||||
[2] | Includes the results of operations for our LCB campuses that are held for sale, which met the criteria to be considered discontinued operations under ASC Topic 360, in addition to our Transitional Group campuses that completed their teach-out prior to 2015. |
Assets Held for Sale - Summar40
Assets Held for Sale - Summary of Assets and Liabilities of Assets Held for Sale on Balance Sheets (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | [1] | |
Assets: | ||||
Receivables, net | $ 8,111 | $ 8,303 | ||
Property and equipment, net | 42,808 | 42,521 | ||
Other intangible assets | 18,400 | 18,400 | ||
Other assets | 6,903 | 7,622 | ||
Valuation allowance | [2] | (9,681) | ||
Total assets held for sale | 66,541 | 76,846 | ||
Liabilities: | ||||
Accounts payable and accrued expenses | 10,619 | 12,410 | ||
Deferred revenue | 15,018 | 17,001 | ||
Remaining lease obligations | 1,595 | 2,253 | ||
Other liabilities | 17,767 | 18,693 | ||
Total liabilities held for sale | $ 44,999 | $ 50,357 | ||
[1] | Only assets and liabilities related to our LCB institutions were reported as held for sale as of December 31, 2014. | |||
[2] | During the second quarter of 2015, a valuation allowance was recorded against our LCB assets held for sale as a result of $9.7 million of impairment charges recorded. |
Assets Held for Sale - Summar41
Assets Held for Sale - Summary of Assets and Liabilities of Assets Held for Sale on Balance Sheets (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Summary Of Assets And Liabilities Held For Sale [Line Items] | |||||
Asset impairment charges | [1],[2] | $ 9,687 | $ 7,451 | $ 9,687 | $ 7,444 |
LCB Institutions [Member] | Discontinued Operations [Member] | |||||
Summary Of Assets And Liabilities Held For Sale [Line Items] | |||||
Asset impairment charges | $ 9,687 | $ 7,400 | $ 9,687 | $ 7,400 | |
[1] | Asset impairment charges for the current year quarter relate to impairment recorded for our LCB campuses which are held for sale as a result of our fair value analysis. | ||||
[2] | Includes the results of operations for our LCB campuses that are held for sale, which met the criteria to be considered discontinued operations under ASC Topic 360, in addition to our Transitional Group campuses that completed their teach-out prior to 2015. |
Investments - Investments from
Investments - Investments from Continuing Operations (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | $ 128,073 | $ 131,058 |
Total investments (available for sale), Gross Unrealized Gain | 27 | 8 |
Total investments (available for sale), Gross Unrealized (Loss) | (700) | (834) |
Total investments (available for sale), Fair value | 127,400 | 130,232 |
Municipal Bond [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Fair value | 12,486 | 14,199 |
Non-governmental Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Fair value | 92,002 | 98,130 |
Treasury and Federal Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Fair value | 22,912 | 17,903 |
Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | 120,223 | 123,208 |
Total investments (available for sale), Gross Unrealized Gain | 27 | 8 |
Total investments (available for sale), Gross Unrealized (Loss) | (224) | (358) |
Total investments (available for sale), Fair value | 120,026 | 122,858 |
Short-term Investments [Member] | Municipal Bond [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | 5,158 | 6,880 |
Total investments (available for sale), Gross Unrealized Gain | 1 | 1 |
Total investments (available for sale), Gross Unrealized (Loss) | (47) | (56) |
Total investments (available for sale), Fair value | 5,112 | 6,825 |
Short-term Investments [Member] | Non-governmental Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | 92,152 | 98,400 |
Total investments (available for sale), Gross Unrealized Gain | 12 | 1 |
Total investments (available for sale), Gross Unrealized (Loss) | (162) | (271) |
Total investments (available for sale), Fair value | 92,002 | 98,130 |
Short-term Investments [Member] | Treasury and Federal Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | 22,913 | 17,928 |
Total investments (available for sale), Gross Unrealized Gain | 14 | 6 |
Total investments (available for sale), Gross Unrealized (Loss) | (15) | (31) |
Total investments (available for sale), Fair value | 22,912 | 17,903 |
Long Term Investments [Member] | Municipal Bond [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | 7,850 | 7,850 |
Total investments (available for sale), Gross Unrealized (Loss) | (476) | (476) |
Total investments (available for sale), Fair value | $ 7,374 | $ 7,374 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Financial Instruments [Line Items] | |||||
Unrealized (losses) gains on investments | $ (43,000) | $ (107,000) | $ 152,000 | $ (135,000) | |
Revolving credit facility | $ 120,000,000 | ||||
Revolving credit facility maturity date | Jun. 30, 2016 | ||||
Outstanding borrowings under the Credit Agreement | 0 | $ 0 | |||
Cash collateral percentage | 100.00% | ||||
CCKF [Member] | |||||
Financial Instruments [Line Items] | |||||
Non controlling interest | $ 4,200,000 | $ 4,200,000 | |||
Percentage of investment in equity affiliate | 30.70% | 30.70% | |||
Maximum [Member] | CCKF [Member] | |||||
Financial Instruments [Line Items] | |||||
Loss from investment in affiliate | $ 100,000 | ||||
Municipal Bond [Member] | |||||
Financial Instruments [Line Items] | |||||
Period debt obligations mature, years, maximum | 1 year | ||||
Unrealized (losses) gains on investments | $ 500,000 |
Investments - Investments Measu
Investments - Investments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | $ 127,400 | $ 130,232 |
Municipal Bond [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 12,486 | 14,199 |
Non-governmental Debt Securities [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 92,002 | 98,130 |
Treasury and Federal Agencies [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 22,912 | 17,903 |
Level 2 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 120,026 | 122,858 |
Level 2 [Member] | Municipal Bond [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 5,112 | 6,825 |
Level 2 [Member] | Non-governmental Debt Securities [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 92,002 | 98,130 |
Level 2 [Member] | Treasury and Federal Agencies [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 22,912 | 17,903 |
Level 3 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 7,374 | 7,374 |
Level 3 [Member] | Municipal Bond [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | $ 7,374 | $ 7,374 |
Investments - Assets Measured a
Investments - Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level3) (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |
Beginning balance | $ 7,374 |
Unrealized gain (loss) | 0 |
Ending balance | $ 7,374 |
Student Receivables - Additiona
Student Receivables - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Student receivables, net of allowance for doubtful accounts and net of deferred tuition revenue | $ 2.9 | $ 2.9 |
Minimum [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Student receivables write-off period, days past due | 90 days |
Student Receivables - Changes i
Student Receivables - Changes in Current and Non-Current Receivables Allowance (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Receivables [Abstract] | |||||
Balance, Beginning of Period | $ 14,140 | $ 16,987 | $ 14,517 | $ 17,570 | |
Charges to Expense | [1] | 4,396 | 5,664 | 8,418 | 10,720 |
Amounts Written-off | (4,177) | (6,069) | (8,576) | (11,708) | |
Balance, End of Period | [2] | $ 14,359 | $ 16,582 | $ 14,359 | $ 16,582 |
[1] | Charges to expense include an offset for recoveries of amounts previously written off of $1.2 million and $1.5 million for the quarters ended June 30, 2015 and 2014, respectively, and $2.3 million and $3.1 million for the years to date ended June 30, 2015 and 2014, respectively. | ||||
[2] | Includes amounts for allowances related to receivables reported within our assets held for sale within continuing operations. |
Student Receivables - Changes48
Student Receivables - Changes in Current and Non-Current Receivables Allowance (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Receivables [Abstract] | ||||
Recoveries of amounts previously written off | $ 1.2 | $ 1.5 | $ 2.3 | $ 3.1 |
Restructuring Charges - Accrual
Restructuring Charges - Accrual for Severance and Related Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Restructuring and Related Activities [Abstract] | |||||
Beginning of Period | $ 2,456 | $ 2,657 | $ 2,701 | $ 3,243 | |
Severance & Related Charges | [1],[2] | 12,636 | 13,380 | ||
Payments | (2,238) | (308) | (3,009) | (694) | |
Non-cash Adjustments | [3] | (302) | 17 | (520) | (183) |
End of Period | $ 12,552 | $ 2,366 | $ 12,552 | $ 2,366 | |
[1] | Includes charges related to COBRA and outplacement services which are assumed to be completed by the third month following an employee's departure. | ||||
[2] | Severance payments will result in future cash expenditures through 2018. | ||||
[3] | Includes cancellations due to employee departures prior to agreed upon end dates, employee transfers to open positions within the organization and subsequent adjustments to severance and related costs. |
Restructuring Charges - Restruc
Restructuring Charges - Restructuring Charges by Segment (Detail) - Jun. 30, 2015 - USD ($) $ in Thousands | Total | Total | |
Restructuring and Related Cost [Abstract] | |||
Severance and related expenses | [1],[2] | $ 12,636 | $ 13,380 |
CTU [Member] | |||
Restructuring and Related Cost [Abstract] | |||
Severance and related expenses | 275 | 288 | |
AIU [Member] | |||
Restructuring and Related Cost [Abstract] | |||
Severance and related expenses | 339 | 339 | |
University Group [Member] | |||
Restructuring and Related Cost [Abstract] | |||
Severance and related expenses | 614 | 627 | |
Corporate and Other [Member] | |||
Restructuring and Related Cost [Abstract] | |||
Severance and related expenses | 4,318 | 4,318 | |
Transitional Group [Member] | |||
Restructuring and Related Cost [Abstract] | |||
Severance and related expenses | $ 7,704 | $ 8,435 | |
[1] | Includes charges related to COBRA and outplacement services which are assumed to be completed by the third month following an employee's departure. | ||
[2] | Severance payments will result in future cash expenditures through 2018. |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Accrual for severance and related charges | $ 8.7 | $ 8.7 | $ 1.4 |
Long term amount | 3.9 | 3.9 | $ 1 |
Accrued retention bonuses | 0.9 | 0.9 | |
Amount recorded ratably over the period retained | 0.6 | ||
Current lease obligations | 2.2 | $ 2.2 | |
Lease expiration teach out campuses | 2,023 | ||
Minimum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Gross remaining lease obligations | 32 | $ 32 | |
Maximum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Gross remaining lease obligations | $ 37 | $ 37 |
Asset Impairments - Additional
Asset Impairments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Impairment Charges [Line Items] | ||||
Asset impairment charges | $ 1,685 | $ 3 | $ 7,704 | $ 77 |
Missouri College [Member] | ||||
Impairment Charges [Line Items] | ||||
Impairment of intangible assets | 100 | |||
Property and Equipment [Member] | Briarcliffe College [Member] | ||||
Impairment Charges [Line Items] | ||||
Asset impairment charges | 1,200 | |||
Property and Equipment [Member] | Missouri College [Member] | ||||
Impairment Charges [Line Items] | ||||
Asset impairment charges | $ 400 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) | Apr. 22, 2011Student | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | May. 23, 2012Members | Jan. 13, 2012Findings | Jul. 14, 2008Employees | Apr. 10, 2008Claim | Mar. 05, 2008Claim |
Loss Contingencies [Line Items] | ||||||||
Accrual for legal fees and settlements | $ | $ 1,900,000 | $ 2,300,000 | ||||||
Number of OIG Findings | 3 | |||||||
Number of documentation of attendance of students enrolled in CTU's | 1 | |||||||
Number of calculation of returns of Title IV Program funds | 1 | |||||||
Surrett [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of alleged claims for equitable relief | Claim | 2 | |||||||
Number of claims added for money damages | Claim | 2 | |||||||
Number of students in class | Student | 2,600 | |||||||
Opt-out period expiration date | Jun. 20, 2011 | |||||||
Number of individuals WCI file motion to compel arbitration | Members | 1,062 | |||||||
False Claims Act [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of former employees who filed complaint | Employees | 4 | |||||||
OIG Audit [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Potential liability related to audit | $ | $ 800,000 |
Income Taxes - Summary of (Bene
Income Taxes - Summary of (Benefit from) Provision for Income Taxes and Effective Tax Rate from Continuing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Pretax loss | $ (10,218) | $ (11,664) | $ (35,208) | $ (33,106) |
(Benefit from) provision for income taxes | $ (747) | $ 1,854 | $ (958) | $ 2,074 |
Effective rate | (7.30%) | 15.90% | (2.70%) | 6.30% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||
Total deferred tax valuation allowance | $ 150,400 | ||||
(Benefit from) provision for income taxes | $ (747) | $ 1,854 | $ (958) | $ 2,074 | |
Effective tax rate | (7.30%) | 15.90% | (2.70%) | 6.30% | |
Cumulative effect of federal and state valuation losses | 37.10% | ||||
Decrease in unrecognized tax positions | $ 1,800 | $ 1,800 | |||
Possible interest and accrued penalties | $ 2,500 | $ 2,500 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issuable upon exercise of outstanding options | 2,789,000 | 2,789,000 | 3,782,000 |
Number of shares to reduce shares available to grant by upon vesting of restricted stock units | 720,000 | 720,000 | 599,000 |
Number of shares to reduce shares available to grant by upon vesting of deferred stock units | 105,000 | 105,000 | 117,000 |
Estimated pretax compensation expense | $ 5 | $ 5 | |
Expiration period in years | 4 years | ||
Stock awards settled in stock exercisable in percentage | 33.33% | ||
Service period in years | 4 years | ||
Long-term incentive, cash-based awards | 3 years | ||
Restricted stock awards settled in cash exercisable in percentage | 25.00% | ||
Stock compensation and recognized liability | 0.3 | $ 0.5 | |
Performance unit award expenses | $ 0.1 | $ 0.3 | |
Share-based Compensation Award, Tranche One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards settled in stock exercisable in percentage | 25.00% | ||
Share-based Compensation Award, Tranche Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards settled in stock exercisable in percentage | 33.33% | ||
2008 Incentive Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock subject to awards of stock options or stock appreciation rights payable in shares | 1 | ||
Common stock subject to any other form of award | 1.67 | ||
Common stock available for future share-based awards | 6,500,000 | 6,500,000 | |
Shares issuable upon exercise of outstanding options | 2,800,000 | 2,800,000 | |
Non-Employee Directors' Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period in years | 10 years | ||
Employee stock options exercisable in percentage | 100.00% | ||
Long-term incentive, cash-based awards | 4 years | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period in years | 10 years | ||
Stock awards settled in stock exercisable in percentage | 25.00% | ||
Service period in years | 4 years | ||
Restricted Stock Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares to reduce shares available to grant by upon vesting of restricted stock units | 1,000 | 1,000 | 43,000 |
Restricted Stock Shares [Member] | Share-based Compensation Award, Tranche One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Service period in years | 4 years | ||
Restricted Stock Shares [Member] | Share-based Compensation Award, Tranche Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Service period in years | 3 years | ||
Deferred Stock Units to be Settled in Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Service period in years | 3 years | ||
Restricted Stock Units RSU [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares to reduce shares available to grant by upon vesting of restricted stock units | 719,000 | 719,000 | 556,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Option Activity (Detail) - Jun. 30, 2015 - $ / shares shares in Thousands | Total |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Beginning balance of Outstanding, Options | 3,782 |
Granted, Options | 541 |
Exercised, Options | (232) |
Forfeited, Options | (966) |
Cancelled, Options | (336) |
Ending balance of Outstanding, Options | 2,789 |
Exercisable, Options | 1,922 |
Beginning balance of Outstanding, Weighted Average Exercise Price | $ 12.88 |
Granted, Weighted Average Exercise Price | 5.22 |
Exercised, Weighted Average Exercise Price | 2.72 |
Forfeited, Weighted Average Exercise Price | 4.24 |
Cancelled, Weighted Average Exercise Price | 19.18 |
Ending balance of Outstanding, Weighted Average Exercise Price | 14.47 |
Exercisable, Weighted Average Exercise Price | $ 18.69 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Information with Respect to all Outstanding Restricted Stock (Detail) - 6 months ended Jun. 30, 2015 - $ / shares shares in Thousands | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance of Outstanding Shares | 599 |
Granted, Shares | 570 |
Vested, Shares | (222) |
Forfeited, Shares | (227) |
Ending balance of Outstanding Shares | 720 |
Restricted Stock Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance of Outstanding Shares | 43 |
Vested, Shares | (39) |
Forfeited, Shares | (3) |
Ending balance of Outstanding Shares | 1 |
Beginning balance of Outstanding, Weighted Average Grant-Date Fair Value Per Share | $ 21.63 |
Vested, Weighted Average Grant-Date Fair Value Per Share | 21.80 |
Forfeited, Weighted Average Grant-Date Fair Value Per Share | 21.80 |
Ending balance of Outstanding, Weighted Average Grant-Date Fair Value Per Share | $ 7.21 |
Restricted Stock Units RSU [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance of Outstanding Shares | 556 |
Granted, Shares | 570 |
Vested, Shares | (183) |
Forfeited, Shares | (224) |
Ending balance of Outstanding Shares | 719 |
Beginning balance of Outstanding, Weighted Average Grant-Date Fair Value Per Share | $ 7.35 |
Granted, Weighted Average Grant-Date Fair Value Per Share | 5.81 |
Vested, Weighted Average Grant-Date Fair Value Per Share | 8.37 |
Forfeited, Weighted Average Grant-Date Fair Value Per Share | 6.23 |
Ending balance of Outstanding, Weighted Average Grant-Date Fair Value Per Share | $ 6.23 |
Share-Based Compensation - Sc59
Share-Based Compensation - Schedule of Deferred Stock Units to be Settled in Shares (Detail) - 6 months ended Jun. 30, 2015 - $ / shares shares in Thousands | Total | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Beginning balance of Outstanding Shares | 117 | |
Granted, Shares | 3 | |
Vested, Shares | [1] | (15) |
Forfeited, Shares | 0 | |
Ending balance of Outstanding Shares | 105 | |
Beginning balance of Weighted Average Grant-Date Fair Value Per Unit | $ 4.39 | |
Granted, Weighted Average Grant-Date Fair Value Per Unit | 5.73 | |
Vested, Weighted Average Grant-Date Fair Value Per Unit | [1] | 4.39 |
Forfeited, Weighted Average Grant-Date Fair Value Per Unit | 0 | |
Ending balance of Weighted Average Grant-Date Fair Value Per Unit | $ 4.43 | |
[1] | The total vested awards exclude 0.3 thousand of vested but, unreleased awards. These awards are included in total outstanding awards until they are released under the terms of the agreement. |
Share-Based Compensation - Sc60
Share-Based Compensation - Schedule of Deferred Stock Units to be Settled in Shares (Parenthetical) (Detail) | 6 Months Ended |
Jun. 30, 2015shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Vested but unreleased awards | 300 |
Share-Based Compensation - Sc61
Share-Based Compensation - Schedule of Restricted Stock Units to be Settled in Cash (Detail) shares in Thousands | 6 Months Ended |
Jun. 30, 2015shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Beginning balance of Outstanding, Stock Units to be Settled in Cash | 1,842 |
Stock Units to be Settled in Cash, Granted | 440 |
Stock Units to be Settled in Cash, Vested | (444) |
Stock Units to be Settled in Cash, Forfeited | (386) |
Ending balance of Outstanding, Stock Units to be Settled in Cash | 1,452 |
Share-Based Compensation - Su62
Share-Based Compensation - Summary of Total Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | [1] | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Total stock based compensation expense | $ 619 | $ 1,152 | $ 2,465 | $ 4,739 | |
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Total stock based compensation expense | 124 | 331 | 394 | 792 | |
Restricted Stock or Units Settled in Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Total stock based compensation expense | 239 | 678 | 1,527 | 1,548 | |
Restricted Stock Units to be Settled in Cash [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Total stock based compensation expense | $ 256 | 221 | $ 544 | 2,345 | |
Stock Appreciation Rights Settled in Cash [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Total stock based compensation expense | $ (78) | $ 54 | |||
[1] | Stock-based compensation expense for the year to date of 2015 does not reflect $1.5 million of forfeitures related to our former Chief Executive Officer's departure which was applied against the separation agreement payment of $2.5 million. |
Share-Based Compensation - Su63
Share-Based Compensation - Summary of Total Stock Based Compensation Expense (Parenthetical) (Detail) - Former Chief Executive Officer [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Forfeitures related stock-based compensation expense | $ 1.5 |
Separation agreement payment | $ 2.5 |
Weighted Average Common Shares
Weighted Average Common Shares - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive awards excluded from computations of diluted earnings per share | 0 | 0 | 0 | 0 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | Jun. 30, 2015 |
CTU [Member] | |
Segment Reporting Information [Line Items] | |
Students enrolled expressed as percentage of enrollment | 54.00% |
AIU [Member] | |
Segment Reporting Information [Line Items] | |
Students enrolled expressed as percentage of enrollment | 28.00% |
Fully Online [Member] | CTU [Member] | |
Segment Reporting Information [Line Items] | |
Percentage of enrollment | 91.00% |
Fully Online [Member] | AIU [Member] | Minimum [Member] | |
Segment Reporting Information [Line Items] | |
Percentage of enrollment | 90.00% |
Segment Reporting - Summary Fin
Segment Reporting - Summary Financial Information by Reporting Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 174,780 | $ 186,172 | $ 357,082 | $ 384,326 | ||
Percentage of total revenue | 100.00% | 100.00% | 100.00% | 100.00% | ||
Operating (Loss) Income | $ (9,332) | $ (11,251) | $ (33,933) | $ (33,200) | ||
Total Assets | [1] | 490,376 | 490,376 | $ 573,534 | ||
CTU [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 86,174 | $ 85,041 | $ 171,301 | $ 171,961 | ||
Percentage of total revenue | 49.30% | 45.70% | 48.00% | 44.70% | ||
Operating (Loss) Income | $ 24,263 | $ 20,957 | $ 38,879 | $ 35,438 | ||
Total Assets | [1] | 74,449 | 74,449 | 73,458 | ||
AIU [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 52,024 | $ 49,685 | $ 105,090 | $ 102,258 | ||
Percentage of total revenue | 29.80% | 26.70% | 29.40% | 26.60% | ||
Operating (Loss) Income | $ 5,174 | $ (1,331) | $ 2,287 | $ (4,914) | ||
Total Assets | [1] | 53,071 | 53,071 | 51,755 | ||
University Group [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 138,198 | $ 134,726 | $ 276,391 | $ 274,219 | ||
Percentage of total revenue | 79.10% | 72.40% | 77.40% | 71.40% | ||
Operating (Loss) Income | $ 29,437 | $ 19,626 | $ 41,166 | $ 30,524 | ||
Total Assets | [1] | 127,520 | 127,520 | 125,213 | ||
Transitional Group [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 36,543 | $ 51,408 | $ 80,613 | $ 109,969 | ||
Percentage of total revenue | 20.90% | 27.60% | 22.60% | 28.60% | ||
Operating (Loss) Income | $ (31,733) | $ (25,364) | $ (62,203) | $ (47,075) | ||
Total Assets | [1] | 21,123 | 21,123 | 37,355 | ||
Corporate and Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 39 | $ 38 | $ 78 | $ 138 | ||
Percentage of total revenue | 0.00% | 0.00% | 0.00% | 0.00% | ||
Operating (Loss) Income | $ (7,036) | $ (5,513) | $ (12,896) | $ (16,649) | ||
Total Assets | [1] | 274,059 | 274,059 | 332,672 | ||
Subtotal [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Assets | [1] | 422,702 | 422,702 | 495,240 | ||
Assets Held for Sale [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Assets | [1] | 66,541 | 66,541 | 76,846 | ||
Discontinued Operations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Assets | [1] | $ 1,133 | $ 1,133 | $ 1,448 | ||
[1] | Total assets do not include intercompany receivable or payable activity between schools and corporate and investments in subsidiaries. |