Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 19, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CECO | ||
Entity Registrant Name | CAREER EDUCATION CORP | ||
Entity Central Index Key | 1,046,568 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 68,098,641 | ||
Entity Public Float | $ 217,000,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents, unrestricted | $ 66,919 | $ 93,832 |
Restricted cash | 49,821 | 22,938 |
Short-term investments | 114,901 | 122,858 |
Total cash and cash equivalents, restricted cash and short-term investments | 231,641 | 239,628 |
Student receivables, net of allowance for doubtful accounts of $18,013 and $14,842 as of December 31, 2015 and 2014, respectively | 31,618 | 31,401 |
Receivables, other, net | 5,194 | 19,401 |
Prepaid expenses | 14,380 | 17,453 |
Inventories | 3,353 | 5,022 |
Other current assets | 2,523 | 4,729 |
Assets of discontinued operations | 254 | 473 |
Total current assets | 288,963 | 318,107 |
NON-CURRENT ASSETS: | ||
Property and equipment, net | 58,249 | 115,604 |
Goodwill | 87,356 | 87,356 |
Intangible assets, net | 9,300 | 28,219 |
Student receivables, net of allowance for doubtful accounts of $2,216 and $4,255 as of December 31, 2015 and 2014, respectively | 3,958 | 3,916 |
Deferred income tax assets, net | 137,716 | |
Other assets | 16,562 | 19,357 |
Assets of discontinued operations | 8,811 | 975 |
TOTAL ASSETS | 610,915 | 573,534 |
CURRENT LIABILITIES: | ||
Short-term borrowings | 38,000 | 10,000 |
Accounts payable | 25,906 | 23,808 |
Accrued expenses: | ||
Payroll and related benefits | 38,789 | 30,481 |
Advertising and marketing costs | 11,788 | 15,379 |
Income taxes | 1,061 | 1,633 |
Other | 24,082 | 28,857 |
Deferred tuition revenue | 40,112 | 54,573 |
Liabilities of discontinued operations | 13,067 | 15,506 |
Total current liabilities | 192,805 | 180,237 |
NON-CURRENT LIABILITIES: | ||
Deferred rent obligations | 45,927 | 67,433 |
Other liabilities | 25,197 | 21,072 |
Liabilities of discontinued operations | 9,376 | 22,859 |
Total non-current liabilities | $ 80,500 | $ 111,364 |
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; 82,996,585 and 82,336,689 shares issued, 68,098,654 and 67,521,038 shares outstanding as of December 31, 2015 and 2014, respectively | $ 830 | $ 823 |
Additional paid-in capital | 610,784 | 606,531 |
Accumulated other comprehensive loss | (880) | (853) |
Accumulated deficit | (57,518) | (109,403) |
Cost of 14,897,931 and 14,815,651 shares in treasury as of December 31, 2015 and 2014, respectively | (215,606) | (215,165) |
Total stockholders' equity | 337,610 | 281,933 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 610,915 | $ 573,534 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Student receivables, allowance for doubtful accounts, current | $ 18,013 | $ 14,842 |
Student receivables, allowance for doubtful accounts, non-current | $ 2,216 | $ 4,255 |
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 | 82,996,585 | 82,336,689 |
Common stock, shares outstanding | 68,098,654 | 67,521,038 |
Treasury, Shares in treasury | 14,897,931 | 14,815,651 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
REVENUE: | ||||||
Tuition and registration fees | $ 842,062 | $ 905,482 | $ 1,004,091 | |||
Other | 5,211 | 8,482 | 13,139 | |||
Total revenue | 847,273 | 913,964 | 1,017,230 | |||
OPERATING EXPENSES: | ||||||
Educational services and facilities | 289,777 | 323,259 | 361,067 | |||
General and administrative | 564,211 | 640,454 | 734,338 | |||
Depreciation and amortization | 24,938 | 53,382 | 62,237 | |||
Asset impairment | 60,515 | 36,141 | 21,647 | |||
Total operating expenses | 939,441 | 1,053,236 | 1,179,289 | |||
Operating loss | (92,168) | (139,272) | (162,059) | |||
OTHER INCOME (EXPENSE): | ||||||
Interest income | 794 | 851 | 1,361 | |||
Interest expense | (835) | (491) | (1,354) | |||
Loss on sale of business | (1,793) | (6,905) | ||||
Miscellaneous (expense) income | (436) | 86 | 134 | |||
Total other (expense) income | (2,270) | 446 | (6,764) | |||
PRETAX LOSS | (94,438) | (138,826) | (168,823) | |||
(Benefit from) provision for income taxes | (147,454) | 3,736 | 456 | |||
INCOME (LOSS) FROM CONTINUING OPERATIONS | 53,016 | (142,562) | (169,279) | |||
(LOSS) INCOME FROM DISCONTINUED OPERATIONS, net of tax | (1,131) | (35,601) | 5,016 | [1] | ||
NET INCOME (LOSS) | 51,885 | (178,163) | (164,263) | |||
OTHER COMPREHENSIVE INCOME (LOSS), net of tax: | ||||||
Foreign currency translation adjustments | 4,295 | |||||
Unrealized losses on investments | (27) | (350) | (13) | |||
Total other comprehensive (loss) income | (27) | (350) | 4,282 | |||
COMPREHENSIVE INCOME (LOSS) | $ 51,858 | $ (178,513) | $ (159,981) | |||
NET INCOME (LOSS) PER SHARE - BASIC: | ||||||
Income (loss) from continuing operations | $ 0.78 | $ (2.12) | $ (2.54) | |||
(Loss) income from discontinued operations | (0.02) | (0.53) | 0.08 | |||
Net income (loss) per share | 0.76 | [2] | (2.65) | (2.46) | ||
NET INCOME (LOSS) PER SHARE - DILUTED: | ||||||
Income (loss) from continuing operations | 0.78 | (2.12) | (2.54) | |||
(Loss) income from discontinued operations | (0.02) | (0.53) | 0.08 | [1] | ||
Net income (loss) per share | $ 0.76 | [2] | $ (2.65) | $ (2.46) | ||
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||||||
Basic | 67,860 | 67,173 | [3] | 66,738 | [3] | |
Diluted | 68,328 | 67,173 | [3] | 66,738 | [3] | |
[1] | The income tax expense associated with the gain on sale of our International Segment approximates $87.9 million. | |||||
[2] | Basic and diluted earnings per share are calculated independently for each of the quarters presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree with the annual earnings per share amount for the corresponding year. | |||||
[3] | Due to the fact that we reported a loss from continuing operations for the years ended December 31, 2014 and 2013, potential common stock equivalents were excluded from the diluted common shares outstanding calculation. Per FASB ASC Topic 260 – Earnings per Share, an entity that reports discontinued operations shall use income or loss from continuing operations as the benchmark for calculating diluted common shares outstanding, and as such, we have zero common stock equivalents since these shares would have an anti-dilutive effect on our net loss per share for the years ended December 31, 2014 and 2013. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings (Accumulated Deficit) [Member] |
BALANCE at Dec. 31, 2012 | $ 611,790 | $ 816 | $ (213,988) | $ 596,826 | $ (4,785) | $ 232,921 |
BALANCE, shares at Dec. 31, 2012 | (14,547,000) | |||||
BALANCE, shares at Dec. 31, 2012 | 81,617,000 | |||||
Net income (loss) | (164,263) | (164,263) | ||||
Foreign currency translation gain | 4,295 | 4,295 | ||||
Unrealized loss on investments | (13) | (13) | ||||
COMPREHENSIVE INCOME (LOSS) | (159,981) | |||||
Share-based compensation expense: | ||||||
Stock option plan | 2,308 | 2,308 | ||||
Restricted stock award plan | 4,339 | 4,339 | ||||
Employee stock purchase plan | 52 | 52 | ||||
Common stock issued under: | ||||||
Stock option plan | $ 4 | 4 | ||||
Stock option plan, shares | 1,275 | 1,000 | ||||
Restricted stock award plan | $ (506) | $ (1) | $ (506) | 1 | ||
Restricted stock award plan, shares | (131,000) | (172,000) | ||||
Employee stock purchase plan | $ 994 | $ 4 | 990 | |||
Employee stock purchase plan, shares | 400,000 | 403,000 | ||||
Tax effect of options exercised and stock settlements | $ (3,616) | (3,616) | ||||
BALANCE at Dec. 31, 2013 | 455,384 | $ 819 | $ (214,494) | 600,904 | (503) | 68,658 |
BALANCE, shares at Dec. 31, 2013 | (14,719,000) | |||||
BALANCE, shares at Dec. 31, 2013 | 81,890,000 | |||||
Net income (loss) | (178,163) | (178,163) | ||||
Unrealized loss on investments | (350) | (350) | ||||
COMPREHENSIVE INCOME (LOSS) | (178,513) | |||||
Share-based compensation expense: | ||||||
Stock option plan | 1,372 | 1,372 | ||||
Restricted stock award plan | 2,865 | 2,865 | ||||
Employee stock purchase plan | 40 | 40 | ||||
Common stock issued under: | ||||||
Stock option plan | $ 612 | $ 2 | 610 | |||
Stock option plan, shares | 225,000 | 225,000 | 0 | |||
Restricted stock award plan | $ (671) | $ 1 | $ (671) | (1) | ||
Restricted stock award plan, shares | 95,000 | (97,000) | ||||
Employee stock purchase plan | $ 742 | $ 1 | 741 | |||
Employee stock purchase plan, shares | 100,000 | 127,000 | ||||
BALANCE at Dec. 31, 2014 | $ 281,933 | $ 823 | $ (215,165) | 606,531 | (853) | (109,403) |
BALANCE, shares at Dec. 31, 2014 | (14,815,651) | (14,816,000) | ||||
BALANCE, shares at Dec. 31, 2014 | 82,336,689 | 82,337,000 | ||||
Common stock issued under: | ||||||
Cumulative adjustment for change from cost method investment to equity method investment | $ 102 | 102 | ||||
Net income (loss) | 51,885 | 51,885 | ||||
Unrealized loss on investments | (27) | (27) | ||||
COMPREHENSIVE INCOME (LOSS) | 51,858 | |||||
Stock option plan | 442 | 442 | ||||
Restricted stock award plan | 2,385 | 2,385 | ||||
Employee stock purchase plan | 30 | 30 | ||||
Stock option plan | $ 828 | $ 3 | 825 | |||
Stock option plan, shares | 303,035 | 303,000 | ||||
Restricted stock award plan | $ (439) | $ 2 | $ (441) | |||
Restricted stock award plan, shares | 214,000 | (82,000) | ||||
Employee stock purchase plan | $ 573 | $ 2 | 571 | |||
Employee stock purchase plan, shares | 100,000 | 143,000 | ||||
BALANCE at Dec. 31, 2015 | $ 337,610 | $ 830 | $ (215,606) | $ 610,784 | $ (880) | $ (57,518) |
BALANCE, shares at Dec. 31, 2015 | (14,897,931) | (14,898,000) | ||||
BALANCE, shares at Dec. 31, 2015 | 82,996,585 | 82,997,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 51,885 | $ (178,163) | $ (164,263) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Asset impairment | 60,515 | 36,209 | 22,691 |
Depreciation and amortization expense | 24,938 | 55,455 | 73,150 |
Bad debt expense | 21,980 | 14,841 | 28,892 |
Compensation expense related to share-based awards | 2,857 | 4,277 | 6,699 |
Loss (gain) on sale of businesses, net | 1,793 | 311 | (123,204) |
Loss on disposition of property and equipment | 663 | 32 | 118 |
Deferred income taxes | (145,807) | 14,250 | 58,087 |
Changes in operating assets and liabilities: | |||
Student receivables, gross | (1,517) | 13,281 | 56,072 |
Allowance for doubtful accounts | (20,960) | (23,812) | (39,766) |
Other receivables, net | 14,311 | 7,854 | (29,526) |
Inventories, prepaid expenses, and other current assets | 6,160 | (1,877) | 40,257 |
Deposits and other non-current assets | 2,711 | (1,166) | 12,244 |
Accounts payable | 2,539 | (830) | (8,463) |
Accrued expenses and deferred rent obligations | (31,104) | (52,972) | (4,885) |
Deferred tuition revenue | (12,650) | (6,314) | (13,907) |
Net cash used in operating activities | (21,686) | (118,624) | (85,804) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of available-for-sale investments | (93,360) | (157,425) | (40,842) |
Sales of available-for-sale investments | 100,173 | 64,920 | 73,070 |
Purchases of property and equipment | (11,695) | (13,156) | (19,636) |
Proceeds on the sale of assets | 2,272 | 156,816 | |
Payments of cash upon sale of businesses, net of cash divested | (4,013) | (387) | (2,525) |
Purchase of equity method investment | (1,368) | (1,575) | |
Other | (17) | ||
Net cash (used in) provided by investing activities | (7,991) | (107,623) | 166,866 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Issuance of common stock | 1,401 | 1,354 | 998 |
Tax benefit associated with stock option exercises | 1 | ||
Borrowings from credit facility | 38,000 | 10,000 | |
Payments on borrowings | (10,000) | (80,000) | |
Change in restricted cash | (26,883) | (10,374) | 85,314 |
Payments of capital lease obligations | (210) | ||
Net cash provided by financing activities | 2,518 | 980 | 6,103 |
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS: | 246 | 156 | (8,844) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (26,913) | (225,111) | 78,321 |
DISCONTINUED OPERATIONS CASH ACTIVITY INCLUDED ABOVE: | |||
Add: Cash balance of discontinued operations, beginning of the year | 475 | 128,202 | |
Less: Cash balance of discontinued operations, end of the year | 475 | ||
CASH AND CASH EQUIVALENTS, beginning of the year | 93,832 | 318,468 | 112,420 |
CASH AND CASH EQUIVALENTS, end of the year | 66,919 | 93,832 | 318,468 |
Supplemental Cash Flow Information: | |||
Interest paid | 33 | 54 | 517 |
Income taxes paid | $ 580 | $ 17,528 | $ 5,106 |
Description of the Company
Description of the Company | 12 Months Ended |
Dec. 31, 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 quality education to a diverse student population in a variety of disciplines through online, campus-based 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 are designed to 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 intelli path Additionally, CEC is in the process of teaching out campuses within our Transitional Group and Culinary Arts segments. Students enrolled at these campuses are afforded the reasonable opportunity to complete their program of study prior to the final teach-out date. A 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 Annual Report on Form 10-K, 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, for-profit 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Principles of Consolidation and Basis of Presentation These consolidated financial statements include the accounts of CEC and our wholly-owned subsidiaries (collectively “CEC”). All inter-company transactions and balances have been eliminated. The results of operations of all acquired businesses have been consolidated for all periods subsequent to the date of acquisition. We organize our business across four reporting segments: CTU, AIU (comprises University Group); Culinary Arts and Transitional Group (comprises Career Schools Group). Campuses included in our Transitional Group and Culinary Arts segments are currently being taught out and no longer enroll new students. These campuses employ a gradual teach-out process, enabling them to continue to operate while current students have a reasonable opportunity to complete their course of study. b. Reclassifications During 2015, we announced the teach-out of all remaining 15 Sanford-Brown campuses, two Briarcliffe College campuses, Harrington College of Design and 17 Culinary Arts (“LCB”) campuses. The Sanford-Brown, Briarcliffe College and Harrington College campuses are now included in the Transitional Group segment and the LCB campuses are reported within the Culinary Arts segment, as part of our continuing operations. The LCB campuses were previously recorded as held for sale within discontinued operations and during December 2015 the decision was made to teach-out the LCB campuses, which required these campuses to be re-classified to continuing operations in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 360. During 2015, we also completed the teach-out of five Transitional Group campuses and the sale of two Transitional Group campuses (Brooks Institute and Missouri College). These campuses continue to be reported as part of the Transitional Group within continuing operations, as a result of a change in accounting guidance effective January 1, 2015 with respect to ASC Topic 360, which limits discontinued operations reporting. All prior period results have been recast to reflect our reporting segments on a comparable basis. See Note 18 “Segment Reporting” for further information regarding our segments. c. Management’s Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the U.S. (“GAAP”) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reported period. Significant estimates, among others, include the allowance for doubtful accounts, the assumptions surrounding sublease income utilized in determining the fair value of remaining lease obligations, assumptions utilized in calculating income tax related matters including our deferred tax balances and any respective valuation allowance, fair values used in asset impairment evaluations including goodwill, intangible assets and long-lived assets and the assumptions used in determining the fair value of accruals for severance and related costs. Although these estimates are based upon management’s best knowledge of current events and actions that we may undertake in the future, actual results could differ from these estimates. d. Concentration of Credit Risk A substantial portion of credit extended to students is repaid through the students’ participation in various federal financial aid programs authorized by Title IV of the Higher Education Act of 1965, as amended (“Higher Education Act”), which we refer to as “Title IV Programs.” For the years ended December 31, 2015, 2014 and 2013, approximately 77%, 78% and 78%, respectively, of our institutions’ cash receipts from tuition payments came from Title IV Program funding. Transfers of funds received from Title IV Programs are made in accordance with the U.S. Department of Education’s (“ED”) requirements. Changes in ED funding of Title IV Programs could have a material impact on our ability to attract students and the realizability of our student receivables. See Item 1A, “Risk Factors,” of this Annual Report on Form 10-K for further discussion of the risks associated with Title IV Programs. e. Allowance for Doubtful Accounts We extend unsecured credit to a portion of the students who are enrolled at our institutions for tuition and certain other educational costs. Based upon past experience and judgment, we establish an allowance for doubtful accounts with respect to student receivables which we estimate will ultimately not be collectible. As such, our results from operations only reflect the amount of revenue that is estimated to be reasonably collectible. Our standard allowance estimation methodology considers a number of factors that, based on our collections experience, we believe have an impact on our credit risk and the realizability of our student receivables. Among these factors are a student’s status (in-school or out-of-school), anticipated funding source (third party, internal short-term and extended payment plans), whether or not an out-of-school student has completed his or her program of study, and our overall collections history. We monitor our collections and write-off experience to assess whether or not adjustments to our allowance percentage estimates are necessary. Changes in trends in any of the factors that we believe impact the realizability of our student receivables, as noted above, or modifications to our credit standards, collection practices, and other related policies may impact our estimate of our allowance for doubtful accounts and our results from operations. Additionally, we monitor certain internal and external factors, including changes in our academic programs, as well as changes in the current economic, legislative and regulatory environments. f. Fair Value of Financial Instruments The carrying amounts for cash, cash equivalents, restricted cash, short-term investments, short-term borrowings and the current portion of accounts receivables and accounts payable reported in our consolidated balance sheets approximate fair value because of the nature of these financial instruments, as they generally have short maturity periods. The fair value measure of accounting for financial instruments establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Our investment in auction rate securities (“ARS”) is presented within other non-current assets on the consolidated balance sheets. As of December 31, 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. 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 student receivables with repayment periods greater than one year are presented within non-current assets on the consolidated balance sheets. It is not practicable to estimate the fair value of these financial instruments, since observable market data is not readily available, and no reasonable estimation methodology exists. g. Revenue Recognition Our revenue, which is derived primarily from academic programs taught to students who attend our institutions, is generally segregated into two categories: (1) tuition and registration fees and (2) other. Tuition and registration fees represent costs to our students for educational services provided by our institutions. For certain institutions, we bill students a one-time registration fee at the beginning of their program and recognize the registration fee revenue on a straight-line basis over that program period, which includes any applicable externship period. Our institutions charge tuition at varying amounts, depending on the institution, the type of program and specific curriculum. A majority of our institutions bill students a single charge that covers tuition and required program materials, such as textbooks and supplies, which we treat as a single accounting unit. Generally, we bill student tuition fees, including those treated as a single accounting unit, at the beginning of each academic period, and recognize the tuition fees as revenue on a straight-line basis over either the academic term or program period, which includes any applicable externship period. The tuition fees earnings method is determined by the type of program a student is enrolled in. Typically, institutions that offer our culinary arts and our health programs earn tuition fees over the entire program while the remainder of our institutions earns tuition fees over each academic term. The portion of tuition and registration fee payments received from students but not yet earned is recorded as deferred tuition revenue and reported as a current liability on our consolidated balance sheets, as we expect to earn these revenues within the next year. Deferred tuition revenue is stated net of outstanding student receivables on a student-by-student basis as of the end of the reporting period. If a student withdraws from one of our institutions prior to the completion of the academic term or program period, we refund the portion of tuition and registration fees already paid that, pursuant to our refund policy and applicable federal and state law and accrediting agency standards, we are not entitled to retain. Generally, the amount to be refunded to a student is calculated based upon the period of time the student has attended classes and the amount of tuition and registration fees paid by the student as of their withdrawal date. These refunds typically reduce deferred tuition revenue and cash on our consolidated balance sheets as we generally do not recognize tuition revenue in our consolidated statements of income (loss) and comprehensive income (loss) until the related refund provisions have lapsed. Management reassesses collectability when a student withdraws from the institution and has unpaid tuition charges. Such unpaid charges do not meet the threshold of reasonably collectible and are recognized as revenue on a cash basis. This cash basis accounting which was adopted beginning in the fourth quarter of fiscal year 2014 did not have a material effect on the consolidated financial statements. Our institutions’ academic year is generally at least 30 weeks in length but varies both by institution and program of study and is divided by academic terms or payment periods. Academic terms or payment periods are determined by regulatory requirements mandated by the federal government and/or appropriate accrediting body, which also vary by institution and program. Academic terms are determined by start dates, which also vary by institution and program. Our students finance costs through a variety of funding sources, including, among others, federal loan and grant programs, institution payment plans, private loans and grants, private and institutional scholarships and cash payments. Other revenue, which consists primarily of bookstore sales for institutions not using single-charge billing and contract-training revenue, is billed and recognized as goods are delivered or services are performed. h. Cash and Cash Equivalents Cash equivalents include short-term investments with a term to maturity of less than 90 days at the date of purchase. The cash in the Company’s banks is not fully insured by the Federal Deposit Insurance Corporation. Loans which are disbursed under our current credit agreement are secured by 100% cash collateral. The Company has funds which are restricted in use under our credit agreement and additional restricted funds which provide collateral for letters of credit. See Note 12 “Credit Agreement” for further details of our current credit agreement. Restricted cash balances as of December 31, 2015 and 2014 total $49.8 million and $22.9 million, respectively. Restricted cash balances were comprised of $11.8 million and $12.9 million of certificates of deposit to provide securitization of our letters of credit as of December 31, 2015 and 2014, respectively. Additionally, $38.0 million and $10.0 million of restricted cash to provide securitization of borrowings under our credit agreement was included in restricted cash balances as of December 31, 2015 and 2014, respectively. Students at our institutions may receive grants, loans and work-study opportunities to fund their education under Title IV Programs. In certain instances, students may request that we retain a portion of their Title IV funds provided to them in excess of tuition billings. Students may authorize us to apply these funds to historical balances or future charges and/or distribute them directly to the student in certain cases. As of December 31, 2015, we held $12.3 million of these funds on behalf of students within our cash, cash equivalents, restricted cash and short term investments on our consolidated balance sheet. i. Student Receivables Student receivables represent funds owed to us in exchange for the educational services that we provided to a student. Student receivables are reported net of an allowance for doubtful accounts and net of deferred tuition revenue, as determined on a student-by-student basis as of the end of the reporting period. Student receivables which are due to be paid in less than one year are recorded as current assets within our consolidated balance sheets. Student receivables which are due to be paid at dates ranging from one to five years from the balance sheet date are reported as non-current assets within our consolidated balance sheets. 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 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. j. Discontinued Operations Discontinued operations are accounted for in accordance with FASB ASC Section 360-10-35 Property, Plant, and Equipment Effective January 1, 2015, ASC Topic 360 limits discontinued operations reporting to disposals of components of an entity that represent a strategic shift upon disposal that have or will have a major effect on an entity’s operations and financial results. We did not have any disposals during the current year which met the revised definition of discontinued operations and accordingly all disposals during 2015 continue to be reported within continuing operations for all periods presented. k. Investments Our investments, which primarily consist of non-governmental debt securities, treasury and federal agencies, and municipal bonds are classified as “available-for-sale” and recorded at fair value. Any unrealized holding gains or temporary unrealized holding losses, net of income tax effects, are reported as a component of accumulated other comprehensive loss within stockholders’ equity. Realized gains and losses are computed on the basis of specific identification and are included in miscellaneous income (expense) in our consolidated statements of income (loss) and comprehensive income (loss). Our investment in a municipal auction rate security has a stated term to maturity of greater than one year. As such, we classify this investment as non-current on our consolidated balance sheets within other assets. We use the equity method to account for our investment in equity securities if our investment gives us the ability to exercise significant influence over operating and financial policies of the investee. We include our proportionate share of earnings and/or losses of our equity method investee in other (expense) income within our consolidated statements of income (loss) and comprehensive income (loss). The carrying value of our equity investment is reported within other non-current assets on our consolidated balance sheets. l. Inventories Inventories, consisting principally of program materials, textbooks, food and supplies, are stated at the lower of cost, determined on a first-in, first-out basis, or market. The cost of inventory is reflected as a component of educational services and facilities expense as the items are used or sold. m. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation and amortization are recognized using the straight-line method over the estimated useful lives of the related assets for financial reporting purposes and an accelerated method for income tax reporting purposes. Leasehold improvements are amortized on a straight-line basis over the shorter of the life of the lease or the useful life. Maintenance, repairs, minor renewals and betterments are expensed as incurred, and major improvements, which extend the useful life of the asset, are capitalized. n. Goodwill and Intangible Assets Goodwill represents the excess of cost over fair market value of identifiable net assets acquired through business purchases. In accordance with FASB ASC Topic 350 – Intangibles-Goodwill and Other In performing our annual review of goodwill balances for impairment, we estimate the fair value of each of our reporting units based on projected future operating results and cash flows, market assumptions and/or comparative market multiple methods. Determining fair value requires significant estimates and assumptions based on an evaluation of a number of factors, such as marketplace participants, relative market share, new student interest, student retention, future expansion or contraction expectations, amount and timing of future cash flows and the discount rate applied to the cash flows. Projected future operating results and cash flows used for valuation purposes do reflect improvements relative to recent historical periods with respect to, among other things, modest revenue growth and operating margins. Although we believe our projected future operating results and cash flows and related estimates regarding fair values are based on reasonable assumptions, historically projected operating results and cash flows have not always been achieved. The failure of one of our reporting units to achieve projected operating results and cash flows in the near term or long term may reduce the estimated fair value of the reporting unit below its carrying value and result in the recognition of a goodwill impairment charge. Significant management judgment is necessary to evaluate the impact of operating and macroeconomic changes and to estimate future cash flows. Assumptions used in our impairment evaluations, such as forecasted growth rates and our cost of capital, are based on the best available market information and are consistent with our internal forecasts and operating plans. In addition to cash flow estimates, our valuations are sensitive to the rate used to discount cash flows and future growth assumptions. These assumptions could be adversely impacted by certain of the risks discussed in Item 1A, “Risk Factors,” in this Annual Report on Form 10-K. Intangible assets include both indefinite and definite-lived assets. Indefinite-lived assets include our CTU trade name and accreditation rights, which are recorded at fair market value upon acquisition and subsequently reviewed on an annual basis for impairment. Accreditation rights represent the ability of our institutions to participate in Title IV Programs. Our definite-lived intangible assets include courseware and our LCB trade name. Courseware represents the value of acquired curriculum, including lesson plans and syllabi, used to deliver educational services. Acquired courseware balances are amortized on a straight-line basis over their useful lives, which are estimated by management based upon, among other things, the expected future utilization period and the nature of the related academic programs. Trade names which have been determined to have a definite life are amortized over their expected useful life and for our LCB trade name through its latest teach-out date. Other definite-lived intangible assets represent ownership related to renewable internet domain names and are amortized on a straight-line basis over the applicable renewal periods. See Note 10 “Goodwill and Other Intangible Assets” for further discussion. o. Impairment of Long-Lived Assets We review property and equipment, definite-lived intangible assets, and other long-lived assets for impairment on an annual basis or whenever adverse events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. If such adverse events or changes in circumstances occur, we will recognize an impairment loss if the undiscounted future cash flows expected to be generated by the assets are less than the carrying value of the related assets. The impairment loss would reduce the carrying value of the assets to their estimated fair value. See Note 8 “Property and Equipment” for further discussion. p. Contingencies During the ordinary course of business, we are subject to various claims and contingencies. In accordance with FASB ASC Topic 450 – Contingencies q. Income Taxes We are subject to the income tax laws of the U.S. and various state, local and foreign jurisdictions. These tax laws are complex and subject to interpretation. As a result, significant judgments and interpretations are required in determining our income tax (benefits) provisions and evaluating our uncertain tax positions. We account for income taxes in accordance with FASB ASC Topic 740 – Income Taxes In assessing the need for a valuation allowance and/or release of a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. Topic 740 provides that important factors in determining whether a deferred tax asset will be realized are whether there has been sufficient taxable income in recent years and whether sufficient taxable income is expected in future years in order to utilize the deferred tax asset. In evaluating the realizability of deferred income tax assets, we consider, among other things, historical levels of taxable income along with possible sources of future taxable income, which include: the expected timing of the reversals of existing temporary reporting differences, the existence of taxable income in prior carryback year(s), the expected impact of tax planning strategies that may be implemented to prevent the potential loss of future income tax benefits, expected future taxable income and earnings history exclusive of the loss that created the future deductible amount, coupled with evidence indicating the loss is not a continuing condition. Changes in, among other things, income tax legislation, statutory income tax rates, or future taxable income levels could materially impact our valuation of income tax assets and liabilities and could cause our income tax provision to vary significantly among financial reporting periods. If, based on the weight of available evidence, it is more likely than not the deferred tax assets will not be realized, we record a valuation allowance, or release all or a portion of the valuation allowance if it is more likely than not the deferred tax assets are expected to be realized. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence may be objectively verified. A high degree of judgment is required to determine if, and the extent to which, valuation allowances should be recorded against deferred tax assets. Topic 740 further clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in an income tax return. Topic 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. r. Deferred Rent Obligations Certain of the real estate operating lease agreements to which we are party contain rent escalation clauses or lease incentives, such as rent abatements or tenant improvement allowances. Rent escalation clauses and lease incentives are taken into account in determining total rent expense to be recognized during the term of the lease, which begins on the date that we take control of the leased space. Renewal options are considered when evaluating the overall term of the lease. In accordance with FASB ASC Topic 840 – Leases We record tenant improvement allowances as a deferred rent obligation on our consolidated balance sheets and as a cash inflow from operating activities on our consolidated statements of cash flows. We record capital expenditures funded by tenant improvement allowances received as a leasehold improvement on our consolidated balance sheets and as an investing activity within our consolidated statements of cash flows. s. Share-Based Compensation FASB ASC Topic 718 – Compensation-Stock Compensation See Note 15 “Share-Based Compensation” for further discussion of our share-based compensation plans, the nature of share-based awards issued under the plans and our accounting for share-based awards. t. Educational Services and Facilities Expense Educational services and facilities expense includes costs directly attributable to the educational activities of our institutions, including: (1) salaries and benefits of faculty, academic administrators, and student support personnel, (2) costs of educational supplies and facilities, including rents on institution leases, certain costs of establishing and maintaining computer laboratories, costs of student housing, and owned and leased facility costs, and (3) costs of other goods and services provided by our institutions, including costs of textbooks, laptop computers, restaurant services and contract training. Costs of such other goods and services for continuing operations, included in educational services and facilities expense on our consolidated statements of income (loss) and comprehensive income (loss), were approximately $20.0 million, $26.0 million and $37.2 million for the years ended December 31, 2015, 2014 and 2013, respectively. u. Advertising Costs Advertising costs are expensed as incurred. Advertising costs for continuing operations, which are included in general and administrative expenses on our consolidated statements of income (loss) and comprehensive income (loss), were $220.5 million, $253.0 million and $269.0 million, for the years ended December 31, 2015, 2014 and 2013, respectively. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 3. RECENT ACCOUNTING PRONOUNCEMENTS In September 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-16, Business Combination (Topic 805): Simplifying the Accounting for Measurement-Period-Adjustments. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. In June 2015, the FASB issued 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). During 2015, we have evaluated and adopted the guidance of the following ASU issued by the FASB in 2015; adopting this ASU did not materially impact the presentation of our financial condition, results of operations and disclosures: In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. During 2015, we have evaluated and adopted the guidance of the following ASU issued by the FASB in 2014; adopting this ASU did materially impact the presentation of our financial condition, results of operations and disclosures: 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 | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Dispositions | 4. DISPOSITIONS During 2015, we completed the sale of our Brooks Institute and Missouri College campuses. The Brooks Institute, located in Ventura, California, was sold to Gphomestay, a global leader in providing international education opportunities for students, and Missouri College, located in Brentwood, Missouri, was sold to Weston Education Group, a postsecondary education school providing a variety of certificate and degree programs to students for thirty-four years. These sales reflect our strategy to focus our resources and attention on our universities – CTU and AIU, where we see continued opportunities to improve growth and continue to provide quality higher education to the adult student market. The sales do not meet the definition of a strategic shift under ASC Topic 360 and are 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 Missouri College and recorded a loss on sale of $0.9 million each for the year ended December 31, 2015. The terms of the agreements provided that we make certain working capital payments to the buyers; accordingly these amounts were included in the loss calculations. The loss on sale is included within other (expense) income on our consolidated statements of income (loss) and comprehensive income (loss) for the year ended December 31, 2015. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | 5. DISCONTINUED OPERATIONS As of December 31, 2015, the results of operations for campuses that have ceased operations prior to 2015 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 as defined under FASB ASC Topic 205 – Presentation of Financial Statements Additionally, during December 2015 the decision was made to teach-out the LCB campuses which were previously held for sale within discontinued operations. As a result of this decision, the results of operations for these campuses have been recast to be reflected as part of continuing operations for all periods presented. Results of Discontinued Operations Combined summary results of operations for our discontinued operations for the years ended December 31, 2015, 2014 and 2013 were as follows (dollars in thousands): For the Year Ended December 31, 2015 2014 2013 (1) Revenue $ (20 ) $ 4,708 $ 177,791 Operating expenses: Educational services and facilities $ 1,211 $ 25,152 $ 139,479 General and administrative 910 13,282 83,096 Depreciation and amortization - 2,073 10,913 Asset impairment - 68 1,044 Total operating expenses $ 2,121 $ 40,575 $ 234,532 Pretax (loss) income $ (2,128 ) $ (35,601 ) $ 73,493 Income tax (benefit) provision (997 ) - 68,477 (Loss) income from discontinued operations, net of tax $ (1,131 ) $ (35,601 ) $ 5,016 Net (loss) income per diluted share $ (0.02 ) $ (0.53 ) $ 0.08 Capital expenditures $ - $ - $ 6,128 (1) The income tax expense associated with the gain on sale of our International Segment approximates $87.9 million. Assets and Liabilities of Discontinued Operations Assets and liabilities of discontinued operations on our consolidated balance sheets as of December 31, 2015 and 2014 include the following (dollars in thousands): As of December 31, 2015 2014 Assets: Current assets: Receivables, net $ 254 $ 473 Total current assets 254 473 Non-current assets: Other assets, net 720 975 Deferred income tax assets, net 8,091 - Total assets of discontinued operations $ 9,065 $ 1,448 Liabilities: Current liabilities: Accounts payable and accrued expenses $ 528 $ 579 Remaining lease obligations 12,539 14,927 Total current liabilities 13,067 15,506 Non-current liabilities: Remaining lease obligations 9,212 22,689 Other 164 170 Total liabilities of discontinued operations $ 22,443 $ 38,365 Remaining Lease Obligations of Discontinued Operations A number of the campuses that ceased operations prior to January 1, 2015 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 on our consolidated balance sheets, for the years ended December 31, 2015, 2014 and 2013 were as follows (dollars in thousands): Balance, Beginning of Period Charges Incurred (1) Net Cash Payments (2) Other (3) Balance, End of Period For the twelve months ended December 31, 2015 $ 37,616 $ (342 ) $ (15,523 ) $ - $ 21,751 For the twelve months ended December 31, 2014 $ 44,084 $ 13,676 $ (24,854 ) $ 4,710 $ 37,616 For the twelve months ended December 31, 2013 $ 46,298 $ 11,181 $ (13,700 ) $ 305 $ 44,084 (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) See Note 9 “Leases” for the future minimum lease payments under operating leases for discontinued operations as of December 31, 2015. (3) Includes existing prepaid rent and deferred rent liability balances for newly vacated spaces that are netted with the losses incurred in the period recorded. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Investments | 6. INVESTMENTS Investments of our continuing operations consist of the following as of December 31, 2015 and 2014 (dollars in thousands): December 31, 2015 Gross Unrealized Cost Gain (Loss) Fair Value Short-term investments (available for sale): Municipal bonds $ 1,500 $ - $ (11 ) $ 1,489 Non-governmental debt securities 76,999 - (242 ) 76,757 Treasury and federal agencies 36,779 3 (127 ) 36,655 Total short-term investments 115,278 3 (380 ) 114,901 Long-term investments (available for sale): Municipal bond 7,850 - (476 ) 7,374 Total investments (available for sale) $ 123,128 $ 3 $ (856 ) $ 122,275 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 In the table above, unrealized holding losses as of December 31, 2015 relate to short-term investments that have been in a continuous unrealized loss position for less than one year. The table also includes an unrealized holding loss, greater than one year, which relates to our long-term investment in a municipal bond, which is an auction rate security (“ARS”). Our ARS is comprised of debt obligations issued by states, cities, counties and other governmental entities, which earn federally tax-exempt interest. Our 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 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 December 31, 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 December 31, 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. A schedule of available-for-sale investments segregated by their original stated terms to maturity as of December 31, 2015 and 2014 are as follows (dollars in thousands): Less than one year One to five years Five to ten years Greater than ten years Total Original stated term to maturity of available-for-sale- investments as of December 31, 2015 $ 71,000 $ 43,552 $ - $ 7,723 $ 122,275 Original stated term to maturity of available-for-sale- investments as of December 31, 2014 $ 77,177 $ 44,182 $ 211 $ 8,662 $ 130,232 Realized gains or losses resulting from sales of investments during the years ended December 31, 2015, 2014 and 2013 were not significant. Fair Value Measurements FASB ASC Topic 820 – Fair Value Measurements As of December 31, 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 December 31, 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 December 31, 2015 Level 1 Level 2 Level 3 Total Municipal bonds $ - $ 1,489 $ 7,374 $ 8,863 Non-governmental debt securities - 76,757 - 76,757 Treasury and federal agencies - 36,655 - 36,655 Totals $ - $ 114,901 $ 7,374 $ 122,275 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 ended December 31, 2015 (dollars in thousands): Balance at December 31, 2014 $ 7,374 Unrealized loss - Balance at December 31, 2015 $ 7,374 See Note 8 “Property and Equipment” and Note 10 “Goodwill and Other Intangible Assets” for further information regarding non-recurring fair value measurements. Equity Method Investment Our investment in an equity affiliate, which is recorded within other noncurrent assets on our consolidated balance sheet, represents an international investment in a private company. As of December 31, 2015, our investment in an equity affiliate equated to a 30.7%, or $3.9 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. For the years ended December 31, 2015 and 2014, we recorded approximately $0.3 million of loss and less than $0.1 million of income, respectively, related to our proportionate investment in CCKF within miscellaneous (expense) income on our consolidated statements of income (loss) and comprehensive income (loss). |
Student Receivables
Student Receivables | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Student Receivables | 7. 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 as determined on a student-by-student basis at the end of the reporting period. Student receivables, net are reflected on our 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 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 December 31, 2015 and 2014, the amount of non-current student receivables under these programs, net of allowance for doubtful accounts and net of deferred tuition revenue, was $4.0 million and $3.9 million, respectively. Student Receivables Valuation Allowance Changes in our current and non-current receivables allowance for the years ended December 31, 2015, 2014 and 2013 were as follows (dollars in thousands): Balance, Beginning of Period Charges to Expense (1) Amounts Written-off Balance, End of Period For the year ended December 31, 2015 $ 19,097 $ 22,212 $ (21,080 ) $ 20,229 For the year ended December 31, 2014 $ 27,504 $ 14,864 $ (23,271 ) $ 19,097 For the year ended December 31, 2013 $ 37,938 $ 25,939 $ (36,373 ) $ 27,504 (1) Charges to expense include an offset for recoveries of amounts previously written off of $6.7 million, $8.5 million and $7.2 million for the years ended December 31, 2015, 2014 and 2013, respectively. Fair Value Measurements The carrying amount reported in our 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. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 8. PROPERTY AND EQUIPMENT The cost basis and estimated useful lives of property and equipment for continuing operations as of December 31, 2015 and 2014 are as follows (dollars in thousands): December 31, 2015 2014 Life Leasehold improvements $ 264,282 $ 331,867 Shorter of Life of Lease or Useful Life Computer hardware and software 124,899 126,694 3 years Furniture, fixtures and equipment 88,776 107,645 5-10 years Culinary equipment and library materials 17,822 20,404 10 years Building and improvements 8,657 10,966 15-35 years Vehicles 533 791 5 years Construction in progress 2,196 418 507,165 598,785 Less-accumulated depreciation (448,916 ) (483,181 ) Total property and equipment, net $ 58,249 $ 115,604 Depreciation expense for continuing operations for the years ended December 31, 2015, 2014 and 2013 was $24.8 million, $52.6 million and $61.1 million, respectively. Depreciation expense for discontinued operations, included in (loss) income from discontinued operations, was zero for the year ended December 31, 2015 and $2.0 million and $10.7 million for the years ended December 31, 2014 and 2013, respectively. Property and equipment was affected by asset impairment charges of approximately $41.7 million for the year ended December 31, 2015 and $25.0 million for the year ended December 31, 2014, primarily as a result of the reduction in carrying values for campuses that are being taught out, decisions made to exit certain leased facilities, and for certain long-lived assets which were expected to generate negative cash flows through the respective lease end dates and as such the carrying values were not recoverable. The fair value for these assets was determined based upon management’s assumptions regarding an estimated percentage of replacement value for similar assets and estimated salvage values. Because the determination of the estimated fair value of these assets requires significant estimation and assumptions, these fair value measurements are categorized as Level 3 per ASC Topic 820. For assets with remaining fair value existing at our teach-out campuses, depreciation expense will be recorded over the shorter of the remaining useful life or the teach-out date for the campus. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Leases | 9. LEASES We lease most of our administrative and educational facilities and certain equipment under non-cancelable operating leases expiring at various dates through 2023. Lease terms generally range from five to ten years with one to two renewal options for extended terms. In most cases, we are required to make additional payments under facility operating leases for taxes, insurance and other operating expenses incurred during the operating lease period. Certain of our leases contain rent escalation clauses or lease incentives, including rent abatements and tenant improvement allowances. Rent escalation clauses and lease incentives are taken into account in determining total rent expense to be recognized during the term of the lease, which begins on the date we take control of the leased space. Renewal options are considered when determining the overall lease term. In accordance with FASB ASC Topic 840— Leases Rent expense, exclusive of related taxes, insurance, and maintenance costs, for continuing operations totaled approximately $64.3 million, $68.6 million and $75.2 million for the years ended December 31, 2015, 2014 and 2013, respectively, and is reflected in educational services and facilities expense in our consolidated statements of income (loss) and comprehensive income (loss). Rent expense for discontinued operations, which is included in (loss) income from discontinued operations, was approximately $14.4 million and $34.2 million for the years ended December 31, 2014 and 2013, respectively. Rent expense for discontinued operations recorded during the year ended December 31, 2015 was a negative $2.4 million. This gain resulted from a change in estimate for remaining lease obligations recorded upon cease use date for certain real estate facilities related to expected terms of leases and estimated income from sublease arrangements. Remaining Lease Obligations of Continuing Operations We have recorded lease exit costs associated with the exit of real estate space for certain campuses related to our continuing operations. These costs are recorded within educational services and facilities expense on our consolidated statements of income (loss) and comprehensive income (loss). The current portion of the liability for these charges is reflected within other accrued expenses under current liabilities and the long-term portion of these charges are included in other liabilities under the non-current liabilities section of our consolidated balance sheets. Changes in our future minimum lease obligations for exited space related to our continuing operations for the years ended December 31, 2015, 2014 and 2013 were as follows (dollars in thousands): Balance, Beginning of Period Charges Incurred (1) Net Cash Payments Other (2) Balance, End of Period For the year ended December 31, 2015 $ 7,094 $ 20,552 $ (18,817 ) $ 4,063 $ 12,892 For the year ended December 31, 2014 $ 7,259 $ 4,496 $ (5,475 ) $ 814 $ 7,094 For the year ended December 31, 2013 $ 9,241 $ 2,579 $ (7,825 ) $ 3,264 $ 7,259 (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 offset the losses incurred in the period recorded. As of December 31, 2015, future minimum lease payments under operating leases for continuing and discontinued operations are as follows (dollars in thousands): Operating Leases Continuing Discontinued Operations Operations Total 2016 $ 54,867 $ 14,974 $ 69,841 2017 47,743 13,536 61,279 2018 45,482 6,734 52,216 2019 35,883 1,438 37,321 2020 25,588 620 26,208 2021 and thereafter 19,404 - 19,404 Total $ 228,967 $ 37,302 $ 266,269 Of the remaining $229.0 million of lease payments for continuing operations, $74.3 million relates to our Transitional Group leases and $84.7 million relates to Culinary Arts leases. See Note 5 “Discontinued Operations” and Note 11 “Restructuring Charges” for further discussion. As of December 31, 2015, future minimum sublease rental income under operating leases, which will decrease our future minimum lease payments presented above, for continuing and discontinued operations is as follows (dollars in thousands): Operating Subleases Continuing Discontinued Operations Operations Total 2016 $ 3,220 $ 5,560 $ 8,780 2017 2,820 5,507 8,327 2018 2,412 1,481 3,893 2019 1,616 674 2,290 2020 322 691 1,013 2021 and thereafter 55 — 55 Total $ 10,445 $ 13,913 $ 24,358 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 10. GOODWILL AND OTHER INTANGIBLE ASSETS There were no changes in the carrying amount of goodwill for continuing operations as of December 31, 2015 and 2014. The carrying value of goodwill for CTU and AIU were $45.9 million and $41.4 million, respectively, for the years ended December 31, 2015 and 2014. We performed our annual impairment testing of goodwill as of October 1, 2015 and determined that none of our reporting units were at risk of failing the first step of the goodwill impairment test as of October 1, 2015. In calculating the fair value for CTU and AIU, we performed extensive valuation analyses, utilizing both income and market approaches, in our goodwill assessment process. The following describes the valuation methodologies used to derive the fair value of our reporting units: · Income Approach : To determine the estimated fair value of each reporting unit, we discount the expected cash flows which are developed by management. We estimate our future cash flows after considering current economic conditions and trends, estimated future operating results, our views of growth rates and anticipated future economic and regulatory conditions. The discount rate used represents the estimated weighted average cost of capital, which reflects the overall level of inherent risk involved in our future expected cash flows and the rate of return an outside investor would expect to earn. To estimate cash flows beyond the final year of our models, we use a terminal value approach and incorporate the present value of the resulting terminal value into our estimate of fair value. · Market-Based Approach : To corroborate the results of the income approach described above, we estimate the fair value of our reporting units using several market-based approaches, including the guideline company method, which focuses on comparing our risk profile and growth prospects to select reasonably similar publicly traded companies. The determination of estimated fair value of each reporting unit requires significant estimates and assumptions, and as such, these fair value measurements are categorized as Level 3 per ASC Topic 820. These estimates and assumptions primarily include, but are not limited to, the discount rate, terminal growth rates, operating cash flow projections and capital expenditure forecasts. Due to the inherent uncertainty involved in deriving those estimates, actual results could differ from those estimates. We evaluate the merits of each significant assumption used, both individually and in the aggregate, to determine the fair value of each reporting unit for reasonableness. As of December 31, 2015 and 2014, the cost basis, accumulated amortization and net book value of intangible assets for continuing operations are as follows (dollars in thousands): December 31, 2015 December 31, 2014 Net Net Accumulated Book Accumulated Book Cost Amortization Value Cost Amortization Value Amortizable intangible assets: Courseware $ 7,782 $ (7,782 ) $ - $ 9,671 $ (9,671 ) $ - LCB trade name, net of impairment (1) 1,400 - 1,400 - - - Missouri College trade name, net of impairment - - - 438 (219 ) 219 Amortizable intangible assets, net $ 9,182 $ (7,782 ) $ 1,400 $ 10,109 $ (9,890 ) $ 219 Non-amortizable intangible assets: Accreditation, licensing, and Title IV Program participation rights $ 1,000 $ 1,000 Trade names (1) 6,900 27,000 Non-amortizable intangible assets 7,900 28,000 Intangible assets, net $ 9,300 $ 28,219 ___________________ (1) The current year amount relates to our CTU trade name. The prior year amount relates to our CTU trade name as well as our LCB and Sanford-Brown trade names which were impaired during the current year and, for our LCB trade name, the remaining fair value of which was reclassified as definite-lived. Amortizable intangible assets are fully amortized on a straight-line basis over their estimated useful lives as of December 31, 2015. Our definite-lived trade name of $1.4 million has a remaining useful life of 21 months. Amortization expense from continuing operations was $0.1 million, $0.8 million and $1.1 million, for the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015, net intangible assets include certain accreditation, licensing, and Title IV Program participation rights and trade names that are considered to have indefinite useful lives and, in accordance with FASB ASC Topic 350 —Intangibles—Goodwill and Other During December 2015, the decision was made to teach out the Culinary Arts campuses. Prior to the teach-out announcement, these campuses had been reported as an asset held for sale within discontinued operations in accordance with ASC Topic 360. Upon the decision to teach-out these campuses, the results of operations and financial position for these campuses were reclassified to continuing operations to be held and used through their teach-out date. In accordance with ASC Topic 360, the fair value of the assets and liabilities for these campuses was determined at their reclassification date. As a result of the fair value calculation, we recorded an impairment charge of $17.0 million for the LCB trade name, resulting in a remaining fair value of $1.4 million. The remaining trade name fair value will be amortized over the teach-out period for these campuses, or approximately 21 months. During the first half of 2015, we identified indicators of asset impairment related to our Missouri College and Sanford Brown trade names as a result of the decisions made to sell or teach-out these campuses and as such recorded impairments of $1.8 million related to these trade names. Additionally, we performed our annual impairment testing of indefinite-lived intangible asset balances as of October 1, 2015 and concluded that no indicators existed that would suggest that it is more likely than not that the remaining assets would be impaired. Due to the inherent uncertainty involved in deriving those estimates, actual results could differ from those estimates. We evaluate the merits of each significant assumption used, both individually and in the aggregate, to test the fair value for reasonableness. Although we believe our projected future operating results and cash flows and related estimates regarding fair value are based on reasonable assumptions, historically projected operating results and cash flows have not always been achieved. We continue to monitor the operating results and revenue projections related to our CTU trade name and accreditation rights on a quarterly basis for signs of possible further declines in estimated fair value. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges | 11. RESTRUCTURING CHARGES During the past several years, 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 or sell 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 and Culinary Arts segments 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 of these restructuring events for our continuing operations during the years ended December 31, 2015, 2014 and 2013 (dollars in thousands): Balance, Beginning Period Severance and related charges (1) Payments Non-cash adjustments (2) Balance, End of Period For the year ended December 31, 2015 $ 2,712 $ 24,085 $ (7,518 ) $ (294 ) $ 18,985 For the year ended December 31, 2014 $ 3,256 $ 3,979 $ (3,120 ) $ (1,403 ) $ 2,712 For the year ended December 31, 2013 $ 6,045 $ 5,556 $ (7,412 ) $ (933 ) $ 3,256 (1) Includes payments related to COBRA and outplacement services which are assumed to be completed by the third month following an employee’s departure. (2) 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 years ended December 31, 2015, 2014 and 2013 by reporting segment is as follows (dollars in thousands): For the Year Ended December 31, 2015 2014 2013 CTU $ 405 $ 544 $ - AIU 673 103 213 Total University Group 1,078 647 213 Corporate and Other 4,631 1,087 2,088 Subtotal 5,709 1,734 2,301 Culinary Arts 8,229 455 472 Transitional Group 10,147 1,790 2,783 Total $ 24,085 $ 3,979 $ 5,556 The current portion of the accrual for severance and related charges was $11.5 million and $1.7 million, respectively, as of December 31, 2015 and 2014, which is recorded within current accrued expenses – payroll and related benefits; the long-term portion of $7.5 million and $1.0 million is recorded within other non-current liabilities on our consolidated balance sheets as of December 31, 2015 and 2014, respectively. In addition, as of December 31, 2015, we have an accrual of approximately $1.8 million related to retention bonuses that have been offered to certain employees. These amounts are recorded ratably over the period the employees are retained. 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 remaining estimated charge as of December 31, 2015, 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 $50 million - $60 million. 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. This is in addition to approximately $20.6 million of charges related to remaining obligations which were recorded during 2015. |
Credit Agreement
Credit Agreement | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Credit Agreement | 12. CREDIT AGREEMENT On December 11, 2015, the Company; its wholly-owned subsidiary, CEC Educational Services, LLC; and the subsidiary guarantors thereunder entered into a Fourth 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., 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, decrease the revolving credit facility to $95.0 million and require pre-approval by the lenders for each credit extension (other than letter of credit extensions) occurring after December 31, 2015. The revolving credit facility under the Credit Agreement is scheduled to mature on December 31, 2018. The Credit Agreement requires that fees and interest are payable monthly and quarterly in arrears, respectively, and principal is payable at maturity. Any borrowings bear interest at fluctuating interest rates based on either the base rate or the London Interbank Offered Rate (LIBOR), plus the applicable rate based on the type of loan. We may prepay amounts outstanding, or terminate or reduce the commitments, under the Credit Agreement upon three or five business days’ prior notice, respectively, in each case without premium or penalty. The Credit Agreement contains customary affirmative, negative and financial maintenance covenants, including a requirement to maintain a balance of cash, cash equivalents and permitted investments in our domestic accounts of at least $110.0 million at all times, subject to adjustment for cash maintained in collateral accounts to secure letter of credit obligations. The loans and letter of credit obligations under the Credit Agreement are secured by 100% cash collateral. The agreement also contains customary representations and warranties, events of default, and rights and remedies upon the occurrence of any event of default, including rights to accelerate the loans, terminate the commitments and rights to realize upon the collateral securing the obligations under the Credit Agreement. We have $38.0 million outstanding as of December 31, 2015 pursuant to the revolving credit facility under the Credit Agreement. The full amount borrowed as of December 31, 2015 is classified as short-term borrowings on our consolidated balance sheet. Selected details of our credit agreements as of and for the years ended December 31, 2015 and 2014 were as follows (dollars in thousands): As of December 31, 2015 2014 Credit Agreement: Credit facility remaining availability $ 46,554 $ 98,437 Credit facility borrowings $ 38,000 $ 10,000 Outstanding letters of credit (1)(2) $ 10,446 $ 11,563 Availability of additional letters of credit (3) $ 49,554 $ 8,437 Weighted average daily revolving credit borrowings for the year ended $ 3 $ 9 Weighted average annual interest rate 1.92 % 1.67 % Commitment fee rate 0.25 % 0.25 % Letter of credit fee rate 0.75 % 0.75 % (1) Represents letters of credit which are fully collateralized with $10.4 million and $11.6 million of restricted cash as of December 31, 2015 and 2014, respectively. (2) As of December 31, 2015 and 2014, outstanding letters of credit not related to the Credit Agreement totaled $1.4 million and $1.3 million, respectively, which amount is fully collateralized with restricted cash, which is in addition to the $10.4 million and $11.6 million, respectively, referenced in the preceding note. (3) The letters of credit sublimit of $60.0 million under the Credit Agreement is part of, not in addition to, the $95.0 million aggregate commitments. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Contingencies Disclosure [Abstract] | |
Contingencies | 13. CONTINGENCIES An accrual for estimated legal fees and settlements of $2.7 million and $4.4 million at December 31, 2015 and December 31, 2014, respectively, is presented within other current liabilities on our 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. Plaintiffs filed this putative class action in the Superior Court State of California, County of San Francisco, on or about June 27, 2013. Plaintiffs allege that California Culinary Academy (“CCA”) materially misrepresented the placement rates of its graduates, falsely stated that admission to the culinary school was competitive and that the school had an excellent reputation among restaurants and other food service providers, represented that the culinary schools were well-regarded institutions producing skilled graduates who employers eagerly hired, and lied by telling students that the school provided graduates with career placement services for life. The class purports to consist of persons who executed Parent Plus loans or co-signed loans for students who attended CCA at any time between January 1, 2003 and December 31, 2008. Plaintiffs seek restitution, damages, civil penalties and attorneys’ fees. 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. On February 4, 2016, the appellate court affirmed the trial court’s order striking the class allegations. 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 . On March 5, 2008, a complaint was filed in Portland, Oregon in the Circuit Court of the State of Oregon in and for Multnomah County naming Western Culinary Institute, Ltd. (“WCI”) and the Company as defendants. Plaintiffs filed the complaint individually and as a putative class action and alleged two claims for equitable relief: violation of Oregon’s Unlawful Trade Practices Act (“UTPA”) and unjust enrichment. Plaintiffs filed an amended complaint on April 10, 2008, which added two claims for money damages: fraud and breach of contract. Plaintiffs allege WCI made a variety of misrepresentations to them, relating generally to WCI’s placement statistics, students’ employment prospects upon graduation from WCI, the value and quality of an education at WCI, and the amount of tuition students could expect to pay as compared to salaries they could expect to earn after graduation. WCI subsequently moved to dismiss certain of plaintiffs’ claims under Oregon’s UTPA; that motion was granted on September 12, 2008. On February 5, 2010, the Court entered a formal Order granting class certification on part of plaintiff’s UTPA and fraud claims purportedly based on omissions, denying certification of the rest of those claims and denying certification of the breach of contract and unjust enrichment claims. The class consists of students who enrolled at WCI between March 5, 2006 and March 1, 2010, excluding those who dropped out or were dismissed from the school for academic reasons. 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 on January 21, 2016, the appellate court reversed the trial court and held that the claims by the 1,062 individual class members referenced above should be compelled to arbitration. 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. On July 28, 2009, we were served with a complaint filed in the U.S. District Court for the Northern District of Georgia, Atlanta Division. The complaint was originally filed under seal on July 14, 2008 by four former employees of the Dunwoody campus of our American InterContinental University on behalf of themselves and the federal government. On July 27, 2009, the Court ordered the complaint unsealed and we were notified that the U.S. Department of Justice declined to intervene in the action. When the federal government declines to intervene in a False Claims Act action, as it has done in this case, the private plaintiffs (or “relators”) may elect to pursue the litigation on behalf of the federal government and, if they are successful, receive a portion of the federal government’s recovery. The action alleges violations of the False Claims Act and promissory fraud, including allegedly providing false certifications to the federal government regarding compliance with certain provisions of the Higher Education Act and accreditation standards. Relators claim that defendants’ conduct caused the government to pay federal funds to defendants and to make payments to third-party lenders, which the government would not have made if not for defendants’ alleged violation of the law. Relators seek treble damages plus civil penalties and attorneys’ fees. On July 12, 2012, the Court granted our motion to dismiss for a lack of jurisdiction, the claims related to incentive compensation and proof of graduation. Thus, the only claim that remained pending against defendants was based on relators’ contention that defendants misled the school’s accreditor, Southern Association of Colleges and Schools, during the accreditation process. On December 16, 2013, we filed a motion for summary judgment on a variety of substantive grounds. On September 29, 2014, the Court granted our motion for summary judgment and entered judgment in our favor. On October 2, 2014, relators filed a notice of appeal. The appeal was stayed pending the United States Supreme Court’s decision in , No. 12-1497. The Supreme Court issued its decision and relators moved to lift the stay and remand the case to the district court. The case has been remanded to the district court. The district court is currently considering additional arguments regarding whether it has jurisdiction over relators’ remaining claims. Because of the many questions of fact and law that may arise on remand to the district court, 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. On April 18, 2013, defendants were served with an amended complaint filed in the U.S. District Court for the Eastern District of Wisconsin. The original complaint was filed under seal on July 30, 2012 by a former employee of Sanford-Brown College Milwaukee on behalf of himself and the federal government. On February 27, 2013, the Court ordered the complaint unsealed and we were notified that the U.S. Department of Justice declined to intervene in the action. After the federal government declined to intervene in this case, the relator elected to pursue the litigation on behalf of the federal government. If he is successful he would receive a portion of the federal government’s recovery. An amended complaint was filed by the relator on April 12, 2013 and alleges violations of the False Claims Act, including allegedly providing false certifications to the federal government regarding compliance with certain provisions of the Higher Education Act and accreditation standards. Relator claims that defendants’ conduct caused the government to pay federal funds to defendants, and to make payments to third-party lenders, which the government would not have made if not for defendants’ alleged violation of the law. Relator seeks treble damages plus civil penalties and attorneys’ fees. On June 11, 2013, defendants filed a motion to dismiss the case on a variety of grounds. The Court ruled on that motion, dismissing CEC from the case and dismissing several of the relator’s factual claims. On November 27, 2013, Sanford Brown, LTD., and Ultrasound Technical Services, Inc., the remaining Company defendants, filed a motion to dismiss the case for lack of subject matter jurisdiction due to prior public disclosures of the relator’s alleged claims. On March 17, 2014, the Court granted this motion in part, limiting the timeframe and geographical scope of the relator’s claims. On June 13, 2014, the Court granted the remaining Company defendants’ motion for summary judgment and entered judgment in their favor. On July 9, 2014, relator filed a notice of appeal. On June 8, 2015, the appellate court affirmed the district court. On July 2, 2015, relator filed a petition for rehearing, which was denied on August 4, 2015. On December 2, 2015, relator filed his petition for certiorari to the United States Supreme Court. Defendants filed their opposition to the petition on February 3, 2016. 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. On May 16, 2014, Relator Ann Marie Rega, a former employee of Sanford-Brown Iselin, filed an action in the U.S. District Court for the District of New Jersey against the Company and almost all of the Company’s individual schools on behalf of herself and the federal government. She alleges claims under the False Claims Act, including allegedly providing false certifications to the federal government regarding compliance with certain provisions of the Higher Education Act and accreditation standards. Relator claims that defendants’ conduct caused the government to pay federal funds to defendants, and to make payments to third-party lenders, which the government would not have made if not for defendants’ alleged violation of the law. Relator seeks treble damages plus civil penalties and attorneys’ fees. Relator failed to comply with the statutory requirement that all False Claims Act cases be filed under seal. On June 16, 2014, defendants filed a motion to dismiss the complaint with prejudice as to relator for failure to file her complaint under seal in accordance with the requirements of the False Claims Act. The motion is fully briefed and the parties are awaiting a ruling from the Court. 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. On August 11, 2011, Riley Wilson, a former admissions representative based in Minnesota, filed a complaint in the U.S. District Court for the Northern District of Illinois. The two-count complaint asserts claims of breach of contract and unjust enrichment arising from our decision to terminate our Admissions Representative Supplemental Compensation (“ARSC”) Plan. In addition to his individual claims, Wilson also seeks to represent a nationwide class of similarly situated admissions representatives who also were affected by termination of the plan. On October 6, 2011, we filed a motion to dismiss the complaint. On April 13, 2012, the Court granted our motion to dismiss in its entirety and dismissed plaintiff’s complaint for failure to state a claim. The Court dismissed this action with prejudice on May 14, 2012. On June 11, 2012, plaintiff filed a notice of appeal with the U.S. Court of Appeals for the Seventh Circuit appealing the final judgment of the trial court. Briefing was completed on October 30, 2012, and oral argument was held on December 3, 2012. On August 30, 2013, the Seventh Circuit affirmed the district court’s ruling on plaintiff’s unjust enrichment claim but reversed and remanded for further proceedings on plaintiff’s breach of contract claim. On September 13, 2013, we filed a petition for rehearing to seek review of the panel’s decision on the breach of contract claim and for certification of question to the Illinois Supreme Court, but the petition was denied. 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 which the court granted on December 18, 2015. Plaintiff filed his notice of appeal on January 16, 2016. 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. Federal Trade Commission Inquiry On August 20, 2015, the Company received a request for information pursuant to a Civil Investigative Demand from the U.S. Federal Trade Commission (“FTC”). The request was made pursuant to a November 2013 resolution by the FTC directing an investigation to determine whether unnamed persons, partnerships, corporations, or others have engaged or are engaging in deceptive or unfair acts or practices in or affecting commerce in the advertising, marketing or sale of secondary or postsecondary educational products or services, or educational accreditation products or services. The information request requires the Company to provide documents and information regarding a broad spectrum of the business and practices of its subsidiaries and institutions for the time period of January 1, 2010 to the present. The Company is cooperating with the FTC with a view towards resolving these inquiries as promptly as possible. Because the FTC inquiry is in the early stages and because of the many questions of fact and law that may arise, we cannot predict the outcome of the inquiry. Based on information available to us at present, we cannot reasonably estimate a range of potential monetary or non-monetary impact this inquiry might have on the Company because it is uncertain what remedies, if any, the FTC might ultimately seek in connection with this inquiry. 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, all 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 Higher Education Act 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 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 December 31, 2015, the Company has a $0.8 million reserve recorded related to this matter. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. INCOME TAXES The components of pretax loss from continuing operations for the years ended December 31, 2015, 2014 and 2013 are as follows (dollars in thousands): For the Year Ended December 31, 2015 2014 2013 U.S $ (94,438 ) $ (138,826 ) $ (169,345 ) Foreign - - 522 Total $ (94,438 ) $ (138,826 ) $ (168,823 ) The (benefit from) provision for income taxes from continuing operations for the years ended December 31, 2015, 2014 and 2013 consists of the following (dollars in thousands): For the Year Ended December 31, 2015 2014 2013 Current benefit Federal $ (364 ) $ (10,168 ) $ (22,904 ) State and local (2,279 ) (346 ) (4,140 ) Total current benefit (2,643 ) (10,514 ) (27,044 ) Deferred (benefit) provision Federal (126,465 ) 13,445 27,716 State and local (18,346 ) 805 (216 ) Total deferred (benefit) provision (144,811 ) 14,250 27,500 Total (benefit from) provision for income taxes $ (147,454 ) $ 3,736 $ 456 A reconciliation of the statutory U.S. federal income tax rate to our effective income tax rate for continuing operations for the years ended December 31, 2015, 2014 and 2013 is as follows: For the Year Ended December 31, 2015 2014 2013 Statutory U.S. federal income tax rate (35.0 ) % (35.0 ) % (35.0 ) % State and local income taxes (2.7 ) (2.6 ) (4.0 ) Nondeductible goodwill - 0.6 1.8 Valuation allowance 0.6 37.0 44.8 Valuation allowance release (116.3 ) - - Federal audit settlement - 2.4 - Tax credits (0.2 ) - (3.2 ) Other (2.5 ) 0.3 (4.1 ) Effective income tax rate (156.1 ) % 2.7 % 0.3 % The effective tax rate for the year ended December 31, 2015 benefitted by 116.3% due to a valuation allowance release of $109.8 million. The effective tax rates for the years ended December 31, 2014 and 2013 were negatively impacted by 37.0% and 44.8%, respectively, due to valuation allowances of $51.6 million and $77.0 million, respectively. The 2014 effective tax rate was negatively impacted by the settlement of a federal income tax audit covering the years ended December 31, 2008 through December 31, 2012, the impact of which was 2.4%. The 2013 effective tax rate benefited from the settlement of various state income tax audits and reversal of one of our foreign operations as a disregarded entity which increased the effective tax rate by 6.8% A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits as of December 31, 2015, 2014 and 2013 is as follows (dollars in thousands): 2015 2014 2013 Gross unrecognized tax benefits, beginning of the year $ 9,318 $ 13,900 $ 24,479 Additions for tax positions of prior years 19 129 3,582 Reductions for tax positions of prior years (20 ) - - Additions for tax positions related to the current year 864 931 813 Reductions due to settlements - (4,064 ) (13,707 ) Reductions due to lapse of applicable statute of limitations (2,444 ) (1,578 ) (1,267 ) Subtotal 7,737 9,318 13,900 Interest and penalties 1,986 2,820 3,107 Total gross unrecognized tax benefits, end of the year $ 9,723 $ 12,138 $ 17,007 The total amount of net unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate in future periods was $6.4 million and $8.0 million for the years ended December 31, 2015 and 2014, respectively. As of December 31, 2015, our short and long-term reserves, recorded within current accrued income taxes and other non-current liabilities, respectively, related to FASB’s interpretation No. 48 of ASC Topic 740-10, Accounting for Uncertainty in Income Taxes CEC and its subsidiaries file income tax returns in the U.S. and in various state and local jurisdictions. CEC and its subsidiaries are routinely examined by tax authorities in these jurisdictions. As of December 31, 2015, CEC had been examined by the Internal Revenue Service through our tax year ending December 31, 2012 and an examination of the tax years ending December 31, 2013 and December 31, 2014 is in progress. In addition, a number of state and local examinations are currently ongoing. It is possible that these examinations may be resolved within twelve months. Due to the potential for resolution of federal and state examinations, and the expiration of various statutes of limitations, it is reasonably possible that CEC’s gross unrecognized tax benefits balance may change within the next twelve months by a range of zero to $ 1.0 million. Deferred income tax assets and liabilities result primarily from temporary differences in the recognition of various expenses for tax and financial statement purposes, and from the recognition of the tax benefits of net operating loss carry forwards. Components of deferred income tax assets and liabilities for continuing operations as of December 31, 2015 and 2014 are as follows (dollars in thousands): December 31, 2015 2014 Deferred income tax assets: Accrued occupancy $ 4,191 $ 2,024 Deferred rent obligations 9,281 13,757 Foreign tax credits 32,998 32,998 Valuation allowance foreign tax credits (32,998 ) (6,264 ) Compensation and employee benefits 12,751 14,405 Tax net operating loss carry forwards 61,982 34,067 Valuation allowance (8,196 ) (34,067 ) Allowance for doubtful accounts 3,967 3,610 Covenant not-to-compete 11 58 Accrued settlements and legal 938 1,631 Deferred compensation 520 1,777 Accrued restructuring and severance 6,014 1,072 Equity method for investments 256 19 General business tax credits 699 450 Illinois edge credits 6,351 6,351 Valuation allowance edge credits (6,351 ) (6,351 ) Depreciation and amortization 47,453 32,846 Other 712 1,059 Valuation allowance deferred tax assets - (96,061 ) Total deferred income tax assets 140,579 3,381 Deferred income tax liabilities: Other 2,863 3,381 Total deferred income tax liabilities 2,863 3,381 Net deferred income tax assets $ 137,716 $ - The Company is electing to early adopt Accounting Standards Update (ASU) 2015-17, Balance Sheet Classification of Deferred Taxes As of December 31, 2015, we have federal net operating loss carry forwards of approximately $134.8 million, available to offset future taxable income, which do not begin expiring until 2034 and 2035. During 2015, we utilized a federal net operating loss carryback from 2014 of approximately $97.5 million to recover taxes paid from the prior year of approximately $14.0 million. Additionally, we have $33.0 million of foreign tax credits which expire between 2022 and 2023, and we continue to maintain a full valuation allowance against the foreign tax credits deferred tax balance. Additionally, we have state net operating loss (“NOL”) carry forwards of approximately $319.7 million, which expire between 2016 and 2035. Of this amount, approximately $166.0 million relates to separate state NOL carryforwards. We also have Illinois edge credits of $9.8 million available to offset future Illinois state income tax, which expire between 2016 and 2019. Valuation allowances have been established against the full amounts of the separate state NOL and Illinois edge credit deferred tax balances. In assessing the continued need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. Topic 740 provides that important factors in determining whether a deferred tax asset will be realized are whether there has been a strong earnings history exclusive of the loss that created the future deductible amount coupled with evidence indicating that the loss is an aberration rather than a continuing condition and whether sufficient taxable income is expected in future years in order to utilize the deferred tax asset. In evaluating the realizability of deferred income tax assets, we consider, among other things, historical levels of taxable income along with possible sources of future taxable income, which include: the expected timing of the reversals of existing temporary reporting differences, the existence of taxable income in prior carryback years, the expected impact of tax planning strategies that may be implemented to prevent the potential loss of future income tax benefits and expected future taxable income. Changes in, among other things, income tax legislation, statutory income tax rates, or future taxable income levels could materially impact our valuation of income tax assets and liabilities and could cause our income tax provision to vary significantly among financial reporting periods. If, based on the weight of available evidence, it is more likely than not the deferred tax assets will not be realized, we record a valuation allowance, or release all or a portion of the valuation allowance if it is more likely than not the deferred tax assets are expected to be realized. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence may be objectively verified. A high degree of judgment is required to determine if, and the extent to which, valuation allowances should be recorded against deferred tax assets. Based on the Company’s evaluation through September 30, 2015, the Company continued to maintain a valuation allowance against the full amount of its net deferred tax assets due to uncertainty of their realization and dependence on future taxable income. A significant piece of objective negative evidence evaluated at that time was the significant losses incurred in recent years, as well as a three-year cumulative pre-tax loss position for the consolidated entity as projected through the period ended December 31, 2015. During the fourth quarter of 2015, the Company re-evaluated the need for the valuation allowance against its net deferred tax assets as of December 31, 2015 and determined it was more likely than not that a significant portion of the deferred tax assets would be realized. Accordingly, the Company released $109.8 million of the valuation allowance in the fourth quarter of 2015, the full amount of which was recorded within income from continuing operations on our statement of income (loss) and comprehensive income (loss). The Company determined that the decision made in December 2015 to teach-out the LCB campuses was a triggering event related to the analysis of the valuation allowance recorded against the deferred tax asset balances. The LCB teach-out announcement during the fourth quarter of 2015, coupled with the previous teach-out announcements, clearly identified which businesses would remain as an ongoing operation. Ongoing operations is defined by the Company as those businesses that the Company will remain operating for the long-term. While the teach-out of a campus requires the Company to continue to operate the campus, the operations for those campuses have a finite end date with predictable close-out operations. Although the decision made in May 2015 to teach-out the remaining Career Colleges indicated that these campuses would not remain within ongoing operations, the Company did not believe this announcement on its own to be a trigger as a final decision for LCB had not been made earlier in the year. As the LCB campuses contributed a significant portion of operating losses in prior years, coupled with future impacts related to regulatory changes that could negatively impact the LCB campuses, the Company felt that a trigger would not result until an event occurred signaling the exit of the LCB campuses. The decision to teach-out these campuses was announced in December 2015. Once the Career College and LCB teach-outs are completed, the remaining businesses will only include the University Group, which exhibit a strong earnings history. As a result of the decisions taken during 2015 to exit the Career Schools, in particular the decision to teach-out the LCB campuses made in the fourth quarter of 2015, actions taken related to these announcements and revised projections of taxable income for future periods, the Company revisited its conclusion regarding the valuation allowance recorded against its deferred tax assets and considered both negative and positive evidence to determine the appropriate accounting for its deferred taxes. Although the Company remains in a cumulative loss position for the trailing three years ended December 31, 2015, there was sufficient positive evidence leading to the partial reversal of the valuation allowance which primarily consisted of the following: 1) historical positive earnings for the University Group exclusive of the losses for the Transitional Group and LCB, which businesses are being exited (See Note 18 “Segment Reporting” for specific segment details), 2) favorable projections of taxable income, particularly in periods subsequent to the completion of the Transitional Group and LCB teach-outs, which will be sufficient to absorb the reversal of existing deductible temporary differences (including NOL’s), and 3) the Company analyzed the net revenue remaining from the University Group and the cost savings which will occur by eliminating the Transitional Group and LCB campuses. The Company concluded that the net operating loss carryforward would be utilized in 2018, 2019 and 2020. As of December 31, 2015, we continue to maintain a partial valuation allowance against our deferred tax assets of $47.5 million, which relates to the foreign tax credits, separate state NOLs and Illinois edge credits discussed above. The Company concluded it was not more likely than not for the deferred tax assets related to foreign tax credits to be realized and maintained the valuation allowance with respect to these assets. The separate state NOLs can generally only be used by the originating entity and relate to entities announced for teach-out. Since the future operating income (loss) of these entities is restricted to the teach-out period, the more likely than not threshold was not reached with respect to this portion of the deferred tax assets. The Illinois edge credits expire between 2016 and 2019. Given the limited life of these credits and the need to first exhaust an available NOL carryforward, the valuation allowance pertaining to this item was also not released. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are increased or decreased, and additional weight may be given to subjective evidence such as our projections for growth. We will continue to evaluate our valuation allowance in future years for any change in circumstances that causes a change in judgment about the realizability of the deferred tax asset. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 15. 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 December 31, 2015, there were approximately 6.6 million shares of common stock available for future share-based awards under the 2008 Plan, which is net of 2.7 million shares issuable upon exercise of outstanding options. This amount does not reflect 0.6 million and 0.1 million shares underlying restricted stock units and deferred stock units, respectively, as of December 31, 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 December 31, 2015, we estimate that compensation expense of approximately $3.0 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. The exercise price of stock options and stock appreciation rights granted under each of the plans is equal to the fair market value of our common stock on the date of grant. Employee stock options generally become exercisable 25% per year over a four-year service period beginning on the date of grant and expire ten years from the date of grant. Non-employee directors’ stock options expire ten years from the date of grant and generally become exercisable as follows: 100% after the first anniversary of the grant date or one-fourth on the grant date and one-fourth for each of the first through third anniversary of the grant date. Grants of stock options are generally only subject to the service conditions discussed previously. Stock option activity during the years ended December 31, 2015, 2014 and 2013 under all of our plans was as follows: Options Weighted Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic (in thousands) Outstanding as of December 31, 2012 2,591,887 $ 25.96 Granted 1,934,005 2.58 Exercised (1,275 ) 3.08 $ 3 Forfeited (261,366 ) 5.19 Cancelled (362,816 ) 31.60 Outstanding as of December 31, 2013 3,900,435 $ 15.15 Granted 746,318 6.89 Exercised (225,000 ) 2.72 $ 721 Forfeited (299,577 ) 4.94 Cancelled (340,212 ) 39.49 Outstanding as of December 31, 2014 3,781,964 $ 12.88 Granted 848,705 4.83 Exercised (303,035 ) 2.73 $ 620 Forfeited (1,278,150 ) 4.60 Cancelled (391,761 ) 20.87 Outstanding as of December 31, 2015 2,657,723 $ 14.27 4.9 years $ 254 Exercisable as of December 31, 2015 1,819,466 $ 18.71 3.1 years $ 154 The following table summarizes information with respect to all outstanding and exercisable stock options under all of our plans as of December 31, 2015: Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Number Exercisable Weighted Average Exercise Price $ 2.65 $ 2.82 285,416 $ 2.74 7.13 176,708 $ 2.76 $ 3.93 $ 4.15 467,364 $ 4.06 9.56 - $ - $ 5.00 $ 6.51 269,474 $ 6.04 7.87 101,701 $ 6.43 $ 7.33 $ 7.33 151,230 $ 7.33 6.37 62,874 $ 7.33 $ 8.63 $ 8.63 291,563 $ 8.63 1.64 285,507 $ 8.63 $ 13.32 $ 21.80 335,112 $ 17.66 2.59 335,112 $ 17.66 $ 22.04 $ 22.13 276,000 $ 22.08 3.52 276,000 $ 22.08 $ 26.15 $ 30.67 305,564 $ 29.50 3.27 305,564 $ 29.50 $ 30.80 $ 33.96 258,000 $ 32.30 0.83 258,000 $ 32.30 $ 34.86 $ 34.86 18,000 $ 34.86 0.12 18,000 $ 34.86 2,657,723 $ 14.27 4.94 1,819,466 $ 18.71 Restricted Stock and Restricted Stock Units to be Settled in Stock. Restricted stock and restricted stock units to be settled in shares of stock generally become fully vested as follows: 25% per year over a four-year service period or one-third for each of the first through third anniversary of the grant date. Certain awards granted in 2015 to our former Interim Chief Executive Officer vest after one-year and are “performance-based” awards which are subject to performance conditions that, even if the requisite service period is met, may reduce the number of shares or units of restricted stock that vest at the end of the requisite service period or result in all shares or units being forfeited. Also, certain awards granted in the second quarter of 2015 for retention purposes are subject to accelerated vesting and cash settlement in the event of an involuntary not-for-cause termination of employment by the Company. 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 years ended December 31, 2015, 2014 and 2013: Restricted Stock to be Settled in Shares of Stock Shares Weighted Average Grant-Date Fair Value Per Share Units Weighted Average Grant-Date Fair Value Per Unit Total Outstanding as of December 31, 2012 854,291 $ 24.74 1,143,933 $ 8.27 1,998,224 Granted — — 43,313 2.72 43,313 Vested (208,461 ) 23.10 (306,605 ) 8.60 (515,066 ) Forfeited (424,268 ) 27.01 (342,020 ) 7.22 (766,288 ) Outstanding as of December 31, 2013 221,562 $ 22.19 538,621 $ 8.30 760,183 Granted — — 318,940 6.57 318,940 Vested (136,133 ) 22.94 (135,645 ) 8.61 (271,778 ) Forfeited (42,677 ) 20.87 (165,776 ) 7.90 (208,453 ) Outstanding as of December 31, 2014 42,752 $ 21.63 556,140 $ 7.35 598,892 Granted — — 645,332 5.62 645,332 Vested (39,969 ) 21.62 (197,609 ) 7.94 (237,578 ) Forfeited (2,783 ) 21.80 (409,558 ) 6.33 (412,341 ) Outstanding as of December 31, 2015 - $ — 594,305 $ 5.98 594,305 Deferred Stock Units to be Settled in Stock. During 2014 and for the first time since inception of any of our plans, we granted deferred stock units to our non-employee directors. The deferred stock units are to be settled in shares of stock and generally vest one-third per year over a three-year service period beginning on the date of grant. Settlement of the deferred stock units and delivery of the underlying shares of stock to the plan participants does not occur until he or she ceases to provide services to the Company in the capacity of a director, employee or consultant. The following table summarizes information with respect to all deferred stock units during the years ended December 31, 2015 and 2014: Deferred Stock Units to be Settled in Shares Weighted Average Grant-Date Fair Value Per Unit Outstanding as of December 31, 2013 — $ — Granted 116,952 4.39 Vested — — Forfeited — — Outstanding as of December 31, 2014 116,952 $ 4.39 Granted 2,928 5.73 Vested (1) (19,492 ) 4.39 Forfeited (9,746 ) 4.39 Outstanding as of December 31, 2015 90,642 $ 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. Restricted stock units to be settled in cash generally become fully vested 25% per year over a four-year service period beginning on the date of grant. Certain awards granted to our newly hired Chief Executive Officer outside of the 2008 Plan vest 50% per year over a two-year service period. Cash-settled restricted stock units are recorded as liabilities as the expense is recognized and the fair value for these awards is determined at each period end date with changes in fair value recorded in our statement of income (loss) and comprehensive income (loss) in the current period. Cash-settled restricted stock units are settled with a cash payment for each unit vested equal to the closing price on the vesting date. Cash-settled restricted stock units are not included in common shares reserved for issuance or available for issuance under the 2008 Plan. The following table summarizes information with respect to all cash-settled restricted stock units for the years ended December 31, 2015, 2014 and 2013: Restricted Stock Units to be Settled in Cash Outstanding as of December 31, 2012 — Granted 2,938,283 Vested — Forfeited (649,368 ) Outstanding as of December 31, 2013 2,288,915 Granted 981,136 Vested (755,656 ) Forfeited (671,940 ) Outstanding as of December 31, 2014 1,842,455 Granted 1,036,720 Vested (444,499 ) Forfeited (696,060 ) Outstanding as of December 31, 2015 1,738,616 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. Total stock-based compensation expense for the years ended December 31, 2015, 2014 and 2013 for all types of awards was as follows (dollars in thousands): December 31, Award Type 2015 (1) 2014 2013 Stock Options $ 761 $ 1,372 $ 2,308 Restricted stock or units settled in stock 2,532 2,865 4,339 Restricted stock units settled in cash 1,447 4,514 3,452 Stock appreciation rights settled in cash — 295 149 Total stock-based compensation expense $ 4,740 $ 9,046 $ 10,248 (1) Stock-based compensation expense for 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. Performance unit awards granted during 2013, 2014 and 2015 are long-term incentive, cash-based awards. Payment of these awards is based upon a calculation of Total Shareholder Return (“TSR”) of CEC as compared to TSR across a specified peer group of our competitors over a three-year performance period ending primarily on December 31, 2015, 2016 and 2017, respectively. These awards are recorded as liabilities as the expense is recognized and fair value for these awards is revalued at each period end date with changes in fair value recorded in our statement of income (loss) and comprehensive income (loss) in the current period. We recorded $2.1 million, $3.5 million and $1.1 million for expense related to these awards for the years ended December 31, 2015, 2014 and 2013, respectively. Share-Based Awards Assumptions In accordance with FASB ASC Topic 718, the fair value of each stock option award is estimated on the date of grant using the Black-Scholes-Merton option pricing model. We recognize the value of share-based compensation as expense in our consolidated statements of income (loss) and comprehensive income (loss) during the vesting periods of the underlying share-based awards using the straight-line method. FASB ASC Topic 718 requires companies to estimate forfeitures of share-based awards at the time of grant and revise such estimates in subsequent periods if actual forfeitures differ from original projections. The fair value of each stock option award granted during the years ended December 31, 2015, 2014 and 2013 was estimated on the date of grant using the Black-Scholes-Merton option pricing model. Our determination of the fair value of each stock option is affected by our stock price on the date of grant, as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, our expected stock price volatility over the expected life of the awards and actual and projected stock option exercise behavior. The weighted average fair value per share of stock option awards granted during the years ended December 31, 2015, 2014 and 2013, and assumptions used to value stock options are as follows: For the Year Ended December 31, 2015 2014 2013 Dividend yield — — — Risk-free interest rate 1.6 % 1.4 % 1.1 % Weighted average volatility 73.2 % 73.0 % 64.6 % Expected life (in years) 5.1 4.3 5.6 Weighted average grant date fair value per share of options granted $ 2.86 $ 3.89 $ 1.47 Volatility is calculated based on the actual historical daily prices of our common stock over the expected term of the stock option award. During the year ended December 31, 2015, we utilized a range of expected volatility assumptions for purposes of estimating the fair value of stock options awarded during the period. Such volatility assumptions ranged from 65.3% to 76.4%. The expected life of each stock option award is estimated based primarily on our actual historical director and employee exercise behavior. The fair value of each share of restricted stock and restricted stock units to be settled in stock is equal to the fair market value of our common stock as of the date of grant, which is the closing price per share of our common stock on NASDAQ. |
Weighted Average Common Shares
Weighted Average Common Shares | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Weighted Average Common Shares | 16. WEIGHTED AVERAGE COMMON SHARES Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income (loss) 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. The weighted average number of common shares used to compute basic and diluted net income (loss) per share for the years ended December 31, 2015, 2014 and 2013 were as follows: For the Year Ended December 31, 2015 2014 (1) 2013 (1) Basic common shares outstanding 67,860 67,173 66,738 Common stock equivalents 468 - - Diluted common shares outstanding 68,328 67,173 66,738 _________________ (1) Earnings per Share For the year ended December 31, 2015, certain unexercised stock option awards are excluded from our computations of diluted earnings per share, as these shares were out-of-the-money and their effect would have been anti-dilutive. The anti-dilutive options that were excluded from our computations of diluted earnings per share were 2.4 million shares for the year ended December 31, 2015. In addition to the common stock issued upon the exercise of employee stock options, the granting of restricted stock and the vesting of restricted stock units to be settled in stock, we issued approximately 0.1 million, 0.1 million and 0.4 million shares for the years ended December 31, 2015, 2014 and 2013, respectively, upon the purchase of common stock pursuant to our employee stock purchase plan. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 17. EMPLOYEE BENEFIT PLANS Retirement Savings and Profit Sharing Plan We maintain a defined contribution 401(k) retirement savings plan which is available to all employees who work greater than 1,000 hours in a fiscal year. Under the plan, an eligible employee may elect to defer receipt of a portion of their annual pay, including salary and bonus. During 2015, 2014 and 2013, we contributed this amount to the plan on the employee’s behalf and also made a matching contribution equal to 50% of the first 2% and 25% of the next 4% of the percentage of annual pay that the employee elected to defer. A participant is 100% vested at all times in the amounts the employee defers from annual pay. Effective May 6, 2015, any participant who was actively employed becomes 100% vested in our matching contributions and immediate vested going forward. Prior to this change, employees became 100% vested in the company match after two years of credited service. During the years ended December 31, 2015, 2014 and 2013, we recorded expense for continuing and discontinued operations under this plan of approximately $3.6 million, $3.8 million, and $4.6 million, respectively, net of any forfeited employer matching contributions. Employee Stock Purchase Plan We maintain an employee stock purchase plan that allows substantially all full-time and part-time employees to acquire shares of our common stock through payroll deductions over three-month offering periods. The per share purchase price is equal to 95% of the fair market value of a share of our common stock on the last day of the offering period, and purchases are limited to 10% of an employee’s salary, up to a maximum of $25,000 per calendar year. We are authorized to issue up to 4.0 million shares of common stock under the employee stock purchase plan, and, as of December 31, 2015, 3.2 million shares of common stock have been issued under the plan. Share-based compensation expense recorded during the years ended December 31, 2015, 2014 and 2013, in connection with the compensatory elements of our employee stock purchase plan, was not significant. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | 18. SEGMENT REPORTING Our segments are determined in accordance with FASB ASC Topic 280— Segment Reporting During 2015, we announced the teach-out of all remaining 15 Sanford-Brown campuses, two Briarcliffe College campuses, Harrington College of Design campus and 17 Culinary Arts (“LCB”) campuses. The Sanford-Brown, Briarcliffe and Harrington College campuses are now included in the Transitional Group segment and the LCB campuses are reported within the Culinary Arts segment, as part of our continuing operations. The LCB campuses were previously recorded as held for sale within discontinued operations and during December 2015 the decision made to teach-out the LCB campuses, which required these campuses to be reclassified to continuing operations in accordance with ASC Topic 360. During 2015, we also completed the teach-out of five Transitional Group campuses and the sale of two Transitional Group campuses (Brooks Institute and Missouri College). These campuses continue to be reported as part of the Transitional Group within continuing operations, as a result of a change in accounting guidance effective January 1, 2015 with respect to ASC Topic 360, which limits discontinued operations reporting. All prior period results have been recast to reflect our reporting segments on a comparable basis. Our four reporting segments are described below. University Group: ¨ Colorado Technical University (CTU) places a strong focus on providing industry-relevant degree programs to meet the needs of our students for employment and of employers for a well-educated workforce and offers academic programs in the career-oriented disciplines of business studies, information systems and technologies, criminal justice, computer science and engineering, and health sciences. Students pursue their degrees through fully-online programs through CTU Online, local campuses and blended formats, which combine campus-based and online education. As of December 31, 2015, students enrolled at CTU represented approximately 49% of our total enrollments. Approximately 92% of CTU’s enrollments are fully online. ¨ American InterContinental University (AIU) focuses on helping busy professionals get the degree they need to move forward in their career as efficiently as possible and offers academic programs in the career-oriented disciplines of business studies, information technologies, criminal justice and design technologies. Students pursue their degrees through fully-online programs through AIU Online, local campuses and blended formats, which combine campus-based and online education. As of December 31, 2015, students enrolled at AIU represented approximately 25% of our total enrollments. Approximately 92% of AIU’s enrollments are fully online. Career Schools Group: Campuses included in our Career School segments include those which are currently being taught out or those which have completed their teach-out activities or have been sold subsequent to January 1, 2015. As a result of a change in accounting guidance, campuses which have closed or have been sold subsequent to January 1, 2015 no longer meet the criteria for discontinued operations and remain reported within continuing operations on our consolidated financial statements. Campuses in teach-out employ a gradual teach-out process, enabling them to continue to operate while current students have a reasonable opportunity to complete their course of study; they no longer enroll new students. ¨ Culinary Arts includes our Le Cordon Bleu institutions in North America (“LCB”) which offer hands-on educational programs in the career-oriented disciplines of culinary arts and patisserie and baking in the commercial-grade kitchens of Le Cordon Bleu. LCB also provides online programs in culinary arts and hotel and restaurant management. These campuses are all expected to complete their teach-out activities during 2017. As of December 31, 2015, students enrolled at LCB represented approximately 18% of our total enrollments. Our LCB campuses were previously recorded as an asset held for sale within discontinued operations as of December 31, 2014. As a result of the decision made during December 2015 to teach-out our LCB campuses, they will now be reported as part of continuing operations within the Culinary Arts segment. ¨ Transitional Group includes our non-LCB campuses which are in teach-out or those which have been closed or sold subsequent to January 1, 2015. Our Transitional Group offers academic programs primarily in the career-oriented discipline of health education complemented by certain programs in business studies and information technology, as well as fashion design, film and video production, graphic design, interior design and visual communications. The campuses within the Transitional Group that have not yet ceased operations as of December 31, 2015 will complete their teach-outs on varying dates through 2018. As of December 31, 2015, students enrolled at the Transitional Group campuses represented approximately 8% of our total enrollments. We evaluate segment performance based on operating results. Adjustments to reconcile segment results to consolidated results are included under the caption “Corporate and Other,” which primarily includes unallocated corporate activity and eliminations. Summary financial information by reporting segment is as follows (dollars in thousands): Revenue Operating (Loss) Income Depreciation and Amortization Capital Expenditures Total Assets For the Year Ended December 31, 2015 (1) CTU $ 348,215 $ 87,496 $ 2,281 $ 1,084 $ 76,577 AIU 201,649 5,520 1,636 2,406 53,087 Total University Group 549,864 93,016 3,917 3,490 129,664 Corporate and Other 157 (27,267 ) 11,173 4,873 372,405 Subtotal 550,021 65,749 15,090 8,363 502,069 Culinary Arts (2) 170,190 (57,577 ) 1 2,352 71,197 Transitional Group (3) 127,062 (100,340 ) 9,847 980 28,584 Discontinued Operations 9,065 Total $ 847,273 $ (92,168 ) $ 24,938 $ 11,695 $ 610,915 For the Year Ended December 31, 2014 (1) CTU $ 336,573 $ 69,492 $ 2,627 $ 628 $ 73,458 AIU 198,896 (9,412 ) 2,329 916 51,755 Total University Group 535,469 60,080 4,956 1,544 125,213 Corporate and Other (4) 230 (21,169 ) 17,455 4,545 332,672 Subtotal 535,699 38,911 22,411 6,089 457,885 Culinary Arts (5) 172,606 (66,556 ) 17,363 2,292 76,846 Transitional Group (6) 205,659 (111,627 ) 13,608 4,775 37,355 Discontinued Operations - 1,448 Total $ 913,964 $ (139,272 ) $ 53,382 $ 13,156 $ 573,534 For the Year Ended December 31, 2013 (1) CTU $ 346,086 $ 65,078 $ 2,828 $ 158 AIU 231,606 (5,556 ) 3,069 122 Total University Group 577,692 59,522 5,897 280 Corporate and Other — (33,600 ) 22,574 6,272 Subtotal 577,692 25,922 28,471 6,552 Culinary Arts (7) 177,549 (81,218 ) 17,082 705 Transitional Group (8) 261,989 (106,763 ) 16,684 6,251 Discontinued Operations 6,128 Total $ 1,017,230 $ (162,059 ) $ 62,237 $ 19,636 (1) The statement of income (loss) and comprehensive income (loss) balances including revenue, operating (loss) income and depreciation and amortization are presented above on a continuing operations basis. Total assets and capital expenditures are presented on a consolidated basis including continuing and discontinued operations. For the year ended December 31, 2015, segment results included: (2) Culinary Arts: $35.1 million related to long-lived asset impairment and a $17.0 million trade name impairment charge. (3) Transitional Group: $6.1 million related to long-lived asset impairment and a $1.8 million trade name impairment charge. For the year ended December 31, 2014, segment results included: (4) Corporate and Other: $8.6 million of income related to an insurance recovery. (5) Culinary Arts: $10.3 million related to long-lived asset impairment and a $8.9 million trade name impairment charge. (6) Transitional Group: $ a $2.2 million trade For the year ended December 31, 2013, segment results included: (7) Culinary Arts ( 8 ) Transitional Group: $7.7 million of trade name and asset impairment charges and $10.5 million related to the settlement of legal matters. |
Quarterly Financial Summary (Un
Quarterly Financial Summary (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Summary (Unaudited) | 19. QUARTERLY FINANCIAL SUMMARY (UNAUDITED) Summary financial information by quarter is as follows (dollars in thousands, except per share data): Quarter Total 2015 First (2) Second (3) Third (4) Fourth (5) Year Revenue $ 227,014 $ 216,828 $ 203,484 $ 199,947 $ 847,273 Operating loss (24,358 ) (19,892 ) (43,989 ) (3,929 ) $ (92,168 ) Net (loss) income (24,881 ) (20,723 ) (45,235 ) 142,724 $ 51,885 Net (loss) income per share (1) Basic $ (0.37 ) $ (0.31 ) $ (0.67 ) $ 2.10 $ 0.76 Diluted $ (0.37 ) $ (0.31 ) $ (0.67 ) $ 2.08 $ 0.76 Quarter Total 2014 First Second (6) Third (7) Fourth (8) Year Revenue $ 240,401 $ 228,738 $ 227,324 $ 217,501 $ 913,964 Operating loss (39,995 ) (31,023 ) (44,334 ) (23,920 ) $ (139,272 ) Net loss (58,143 ) (46,564 ) (47,968 ) (25,488 ) $ (178,163 ) Net loss per share (1) Basic and Diluted $ (0.87 ) $ (0.69 ) $ (0.71 ) $ (0.38 ) $ (2.65 ) (1) Basic and diluted earnings per share are calculated independently for each of the quarters presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree with the annual earnings per share amount for the corresponding year. For the year ended December 31, 2015, quarterly results included: (2) First quarter of 2015 net loss included $6.0 million of impairment charges related to the Transitional Group. (3) Second quarter of 2015 net loss included $9.7 million of impairment charges related to Culinary Arts and $1.7 million of impairment charges related to the Transitional Group. (4) Third quarter of 2015 net losses included $33.4 million of impairment charges related to Culinary Arts. (5) Fourth quarter of 2015 net income included $9.7 million of impairment charges, of which $9.0 million was related to Culinary Arts. Furthermore, fourth quarter of 2015 net income included a $109.8 million benefit related to the partial release of our valuation allowance recorded against our deferred tax assets. For the year ended December 31, 2014, quarterly results included: (6) Second quarter of 2014 net loss included $7.4 million of trade name impairment charges related to Culinary Arts. (7) Third quarter of 2014 net loss included $3.0 million of trade name impairments, $11.5 million of asset impairment charges and $8.6 million of income related to an insurance recovery. (8) Fourth quarter of 2014 net loss included $14.2 million of trade name and asset impairment charges, of which $10.3 million was related to Culinary Arts. Additionally, the fourth quarter of 2014 included a decrease of $12.3 million of revenue, a decrease of $9.9 million of bad debt expense for a cumulative adjustment related to revenue recognition for withdrawn students. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule II Valuation and Qualifying Accounts (Dollars in thousands) Description Balance, Beginning of Period Additions/Charges to Expense Deductions/ Other Balance, End of Period Valuation allowance for deferred tax assets (1) For the year ended December 31, 2015 $ 150,384 $ (109,805 ) $ 6,966 $ 47,545 For the year ended December 31, 2014 $ 82,876 $ 71,826 $ (4,318 ) $ 150,384 For the year ended December 31, 2013 $ 6,057 $ 80,536 $ (3,717 ) $ 82,876 Valuation allowance for accounts receivable: For the year ended December 31, 2015 $ 19,097 $ 22,212 $ (21,080 ) $ 20,229 For the year ended December 31, 2014 $ 27,504 $ 14,864 $ (23,271 ) $ 19,097 For the year ended December 31, 2013 $ 37,938 $ 25,939 $ (36,373 ) $ 27,504 (1) Amounts include both continuing and discontinued operations gross deferred tax balances. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation & Basis of Presentation | a. Principles of Consolidation and Basis of Presentation These consolidated financial statements include the accounts of CEC and our wholly-owned subsidiaries (collectively “CEC”). All inter-company transactions and balances have been eliminated. The results of operations of all acquired businesses have been consolidated for all periods subsequent to the date of acquisition. We organize our business across four reporting segments: CTU, AIU (comprises University Group); Culinary Arts and Transitional Group (comprises Career Schools Group). Campuses included in our Transitional Group and Culinary Arts segments are currently being taught out and no longer enroll new students. These campuses employ a gradual teach-out process, enabling them to continue to operate while current students have a reasonable opportunity to complete their course of study. |
Reclassifications | b. Reclassifications During 2015, we announced the teach-out of all remaining 15 Sanford-Brown campuses, two Briarcliffe College campuses, Harrington College of Design and 17 Culinary Arts (“LCB”) campuses. The Sanford-Brown, Briarcliffe College and Harrington College campuses are now included in the Transitional Group segment and the LCB campuses are reported within the Culinary Arts segment, as part of our continuing operations. The LCB campuses were previously recorded as held for sale within discontinued operations and during December 2015 the decision was made to teach-out the LCB campuses, which required these campuses to be re-classified to continuing operations in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 360. During 2015, we also completed the teach-out of five Transitional Group campuses and the sale of two Transitional Group campuses (Brooks Institute and Missouri College). These campuses continue to be reported as part of the Transitional Group within continuing operations, as a result of a change in accounting guidance effective January 1, 2015 with respect to ASC Topic 360, which limits discontinued operations reporting. All prior period results have been recast to reflect our reporting segments on a comparable basis. See Note 18 “Segment Reporting” for further information regarding our segments. |
Management's Use of Estimates | c. Management’s Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the U.S. (“GAAP”) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reported period. Significant estimates, among others, include the allowance for doubtful accounts, the assumptions surrounding sublease income utilized in determining the fair value of remaining lease obligations, assumptions utilized in calculating income tax related matters including our deferred tax balances and any respective valuation allowance, fair values used in asset impairment evaluations including goodwill, intangible assets and long-lived assets and the assumptions used in determining the fair value of accruals for severance and related costs. Although these estimates are based upon management’s best knowledge of current events and actions that we may undertake in the future, actual results could differ from these estimates. |
Concentration of Credit Risk | d. Concentration of Credit Risk A substantial portion of credit extended to students is repaid through the students’ participation in various federal financial aid programs authorized by Title IV of the Higher Education Act of 1965, as amended (“Higher Education Act”), which we refer to as “Title IV Programs.” For the years ended December 31, 2015, 2014 and 2013, approximately 77%, 78% and 78%, respectively, of our institutions’ cash receipts from tuition payments came from Title IV Program funding. Transfers of funds received from Title IV Programs are made in accordance with the U.S. Department of Education’s (“ED”) requirements. Changes in ED funding of Title IV Programs could have a material impact on our ability to attract students and the realizability of our student receivables. See Item 1A, “Risk Factors,” of this Annual Report on Form 10-K for further discussion of the risks associated with Title IV Programs. |
Allowance for Doubtful Accounts | e. Allowance for Doubtful Accounts We extend unsecured credit to a portion of the students who are enrolled at our institutions for tuition and certain other educational costs. Based upon past experience and judgment, we establish an allowance for doubtful accounts with respect to student receivables which we estimate will ultimately not be collectible. As such, our results from operations only reflect the amount of revenue that is estimated to be reasonably collectible. Our standard allowance estimation methodology considers a number of factors that, based on our collections experience, we believe have an impact on our credit risk and the realizability of our student receivables. Among these factors are a student’s status (in-school or out-of-school), anticipated funding source (third party, internal short-term and extended payment plans), whether or not an out-of-school student has completed his or her program of study, and our overall collections history. We monitor our collections and write-off experience to assess whether or not adjustments to our allowance percentage estimates are necessary. Changes in trends in any of the factors that we believe impact the realizability of our student receivables, as noted above, or modifications to our credit standards, collection practices, and other related policies may impact our estimate of our allowance for doubtful accounts and our results from operations. Additionally, we monitor certain internal and external factors, including changes in our academic programs, as well as changes in the current economic, legislative and regulatory environments. |
Fair Value of Financial Instruments | f. Fair Value of Financial Instruments The carrying amounts for cash, cash equivalents, restricted cash, short-term investments, short-term borrowings and the current portion of accounts receivables and accounts payable reported in our consolidated balance sheets approximate fair value because of the nature of these financial instruments, as they generally have short maturity periods. The fair value measure of accounting for financial instruments establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Our investment in auction rate securities (“ARS”) is presented within other non-current assets on the consolidated balance sheets. As of December 31, 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. 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 student receivables with repayment periods greater than one year are presented within non-current assets on the consolidated balance sheets. It is not practicable to estimate the fair value of these financial instruments, since observable market data is not readily available, and no reasonable estimation methodology exists. |
Revenue Recognition | g. Revenue Recognition Our revenue, which is derived primarily from academic programs taught to students who attend our institutions, is generally segregated into two categories: (1) tuition and registration fees and (2) other. Tuition and registration fees represent costs to our students for educational services provided by our institutions. For certain institutions, we bill students a one-time registration fee at the beginning of their program and recognize the registration fee revenue on a straight-line basis over that program period, which includes any applicable externship period. Our institutions charge tuition at varying amounts, depending on the institution, the type of program and specific curriculum. A majority of our institutions bill students a single charge that covers tuition and required program materials, such as textbooks and supplies, which we treat as a single accounting unit. Generally, we bill student tuition fees, including those treated as a single accounting unit, at the beginning of each academic period, and recognize the tuition fees as revenue on a straight-line basis over either the academic term or program period, which includes any applicable externship period. The tuition fees earnings method is determined by the type of program a student is enrolled in. Typically, institutions that offer our culinary arts and our health programs earn tuition fees over the entire program while the remainder of our institutions earns tuition fees over each academic term. The portion of tuition and registration fee payments received from students but not yet earned is recorded as deferred tuition revenue and reported as a current liability on our consolidated balance sheets, as we expect to earn these revenues within the next year. Deferred tuition revenue is stated net of outstanding student receivables on a student-by-student basis as of the end of the reporting period. If a student withdraws from one of our institutions prior to the completion of the academic term or program period, we refund the portion of tuition and registration fees already paid that, pursuant to our refund policy and applicable federal and state law and accrediting agency standards, we are not entitled to retain. Generally, the amount to be refunded to a student is calculated based upon the period of time the student has attended classes and the amount of tuition and registration fees paid by the student as of their withdrawal date. These refunds typically reduce deferred tuition revenue and cash on our consolidated balance sheets as we generally do not recognize tuition revenue in our consolidated statements of income (loss) and comprehensive income (loss) until the related refund provisions have lapsed. Management reassesses collectability when a student withdraws from the institution and has unpaid tuition charges. Such unpaid charges do not meet the threshold of reasonably collectible and are recognized as revenue on a cash basis. This cash basis accounting which was adopted beginning in the fourth quarter of fiscal year 2014 did not have a material effect on the consolidated financial statements. Our institutions’ academic year is generally at least 30 weeks in length but varies both by institution and program of study and is divided by academic terms or payment periods. Academic terms or payment periods are determined by regulatory requirements mandated by the federal government and/or appropriate accrediting body, which also vary by institution and program. Academic terms are determined by start dates, which also vary by institution and program. Our students finance costs through a variety of funding sources, including, among others, federal loan and grant programs, institution payment plans, private loans and grants, private and institutional scholarships and cash payments. Other revenue, which consists primarily of bookstore sales for institutions not using single-charge billing and contract-training revenue, is billed and recognized as goods are delivered or services are performed. |
Cash and Cash Equivalents | h. Cash and Cash Equivalents Cash equivalents include short-term investments with a term to maturity of less than 90 days at the date of purchase. The cash in the Company’s banks is not fully insured by the Federal Deposit Insurance Corporation. Loans which are disbursed under our current credit agreement are secured by 100% cash collateral. The Company has funds which are restricted in use under our credit agreement and additional restricted funds which provide collateral for letters of credit. See Note 12 “Credit Agreement” for further details of our current credit agreement. Restricted cash balances as of December 31, 2015 and 2014 total $49.8 million and $22.9 million, respectively. Restricted cash balances were comprised of $11.8 million and $12.9 million of certificates of deposit to provide securitization of our letters of credit as of December 31, 2015 and 2014, respectively. Additionally, $38.0 million and $10.0 million of restricted cash to provide securitization of borrowings under our credit agreement was included in restricted cash balances as of December 31, 2015 and 2014, respectively. Students at our institutions may receive grants, loans and work-study opportunities to fund their education under Title IV Programs. In certain instances, students may request that we retain a portion of their Title IV funds provided to them in excess of tuition billings. Students may authorize us to apply these funds to historical balances or future charges and/or distribute them directly to the student in certain cases. As of December 31, 2015, we held $12.3 million of these funds on behalf of students within our cash, cash equivalents, restricted cash and short term investments on our consolidated balance sheet. |
Student Receivables | i. Student Receivables Student receivables represent funds owed to us in exchange for the educational services that we provided to a student. Student receivables are reported net of an allowance for doubtful accounts and net of deferred tuition revenue, as determined on a student-by-student basis as of the end of the reporting period. Student receivables which are due to be paid in less than one year are recorded as current assets within our consolidated balance sheets. Student receivables which are due to be paid at dates ranging from one to five years from the balance sheet date are reported as non-current assets within our consolidated balance sheets. 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 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. |
Discontinued Operations | j. Discontinued Operations Discontinued operations are accounted for in accordance with FASB ASC Section 360-10-35 Property, Plant, and Equipment Effective January 1, 2015, ASC Topic 360 limits discontinued operations reporting to disposals of components of an entity that represent a strategic shift upon disposal that have or will have a major effect on an entity’s operations and financial results. We did not have any disposals during the current year which met the revised definition of discontinued operations and accordingly all disposals during 2015 continue to be reported within continuing operations for all periods presented. |
Investments | k. Investments Our investments, which primarily consist of non-governmental debt securities, treasury and federal agencies, and municipal bonds are classified as “available-for-sale” and recorded at fair value. Any unrealized holding gains or temporary unrealized holding losses, net of income tax effects, are reported as a component of accumulated other comprehensive loss within stockholders’ equity. Realized gains and losses are computed on the basis of specific identification and are included in miscellaneous income (expense) in our consolidated statements of income (loss) and comprehensive income (loss). Our investment in a municipal auction rate security has a stated term to maturity of greater than one year. As such, we classify this investment as non-current on our consolidated balance sheets within other assets. We use the equity method to account for our investment in equity securities if our investment gives us the ability to exercise significant influence over operating and financial policies of the investee. We include our proportionate share of earnings and/or losses of our equity method investee in other (expense) income within our consolidated statements of income (loss) and comprehensive income (loss). The carrying value of our equity investment is reported within other non-current assets on our consolidated balance sheets. |
Inventories | l. Inventories Inventories, consisting principally of program materials, textbooks, food and supplies, are stated at the lower of cost, determined on a first-in, first-out basis, or market. The cost of inventory is reflected as a component of educational services and facilities expense as the items are used or sold. |
Property and Equipment | m. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation and amortization are recognized using the straight-line method over the estimated useful lives of the related assets for financial reporting purposes and an accelerated method for income tax reporting purposes. Leasehold improvements are amortized on a straight-line basis over the shorter of the life of the lease or the useful life. Maintenance, repairs, minor renewals and betterments are expensed as incurred, and major improvements, which extend the useful life of the asset, are capitalized. |
Goodwill and Intangible Assets | n. Goodwill and Intangible Assets Goodwill represents the excess of cost over fair market value of identifiable net assets acquired through business purchases. In accordance with FASB ASC Topic 350 – Intangibles-Goodwill and Other In performing our annual review of goodwill balances for impairment, we estimate the fair value of each of our reporting units based on projected future operating results and cash flows, market assumptions and/or comparative market multiple methods. Determining fair value requires significant estimates and assumptions based on an evaluation of a number of factors, such as marketplace participants, relative market share, new student interest, student retention, future expansion or contraction expectations, amount and timing of future cash flows and the discount rate applied to the cash flows. Projected future operating results and cash flows used for valuation purposes do reflect improvements relative to recent historical periods with respect to, among other things, modest revenue growth and operating margins. Although we believe our projected future operating results and cash flows and related estimates regarding fair values are based on reasonable assumptions, historically projected operating results and cash flows have not always been achieved. The failure of one of our reporting units to achieve projected operating results and cash flows in the near term or long term may reduce the estimated fair value of the reporting unit below its carrying value and result in the recognition of a goodwill impairment charge. Significant management judgment is necessary to evaluate the impact of operating and macroeconomic changes and to estimate future cash flows. Assumptions used in our impairment evaluations, such as forecasted growth rates and our cost of capital, are based on the best available market information and are consistent with our internal forecasts and operating plans. In addition to cash flow estimates, our valuations are sensitive to the rate used to discount cash flows and future growth assumptions. These assumptions could be adversely impacted by certain of the risks discussed in Item 1A, “Risk Factors,” in this Annual Report on Form 10-K. Intangible assets include both indefinite and definite-lived assets. Indefinite-lived assets include our CTU trade name and accreditation rights, which are recorded at fair market value upon acquisition and subsequently reviewed on an annual basis for impairment. Accreditation rights represent the ability of our institutions to participate in Title IV Programs. Our definite-lived intangible assets include courseware and our LCB trade name. Courseware represents the value of acquired curriculum, including lesson plans and syllabi, used to deliver educational services. Acquired courseware balances are amortized on a straight-line basis over their useful lives, which are estimated by management based upon, among other things, the expected future utilization period and the nature of the related academic programs. Trade names which have been determined to have a definite life are amortized over their expected useful life and for our LCB trade name through its latest teach-out date. Other definite-lived intangible assets represent ownership related to renewable internet domain names and are amortized on a straight-line basis over the applicable renewal periods. See Note 10 “Goodwill and Other Intangible Assets” for further discussion. |
Impairment of Long-Lived Assets | o. Impairment of Long-Lived Assets We review property and equipment, definite-lived intangible assets, and other long-lived assets for impairment on an annual basis or whenever adverse events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. If such adverse events or changes in circumstances occur, we will recognize an impairment loss if the undiscounted future cash flows expected to be generated by the assets are less than the carrying value of the related assets. The impairment loss would reduce the carrying value of the assets to their estimated fair value. See Note 8 “Property and Equipment” for further discussion. |
Contingencies | p. Contingencies During the ordinary course of business, we are subject to various claims and contingencies. In accordance with FASB ASC Topic 450 – Contingencies |
Income Taxes | q. Income Taxes We are subject to the income tax laws of the U.S. and various state, local and foreign jurisdictions. These tax laws are complex and subject to interpretation. As a result, significant judgments and interpretations are required in determining our income tax (benefits) provisions and evaluating our uncertain tax positions. We account for income taxes in accordance with FASB ASC Topic 740 – Income Taxes In assessing the need for a valuation allowance and/or release of a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. Topic 740 provides that important factors in determining whether a deferred tax asset will be realized are whether there has been sufficient taxable income in recent years and whether sufficient taxable income is expected in future years in order to utilize the deferred tax asset. In evaluating the realizability of deferred income tax assets, we consider, among other things, historical levels of taxable income along with possible sources of future taxable income, which include: the expected timing of the reversals of existing temporary reporting differences, the existence of taxable income in prior carryback year(s), the expected impact of tax planning strategies that may be implemented to prevent the potential loss of future income tax benefits, expected future taxable income and earnings history exclusive of the loss that created the future deductible amount, coupled with evidence indicating the loss is not a continuing condition. Changes in, among other things, income tax legislation, statutory income tax rates, or future taxable income levels could materially impact our valuation of income tax assets and liabilities and could cause our income tax provision to vary significantly among financial reporting periods. If, based on the weight of available evidence, it is more likely than not the deferred tax assets will not be realized, we record a valuation allowance, or release all or a portion of the valuation allowance if it is more likely than not the deferred tax assets are expected to be realized. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence may be objectively verified. A high degree of judgment is required to determine if, and the extent to which, valuation allowances should be recorded against deferred tax assets. Topic 740 further clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in an income tax return. Topic 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. |
Deferred Rent Obligations | r. Deferred Rent Obligations Certain of the real estate operating lease agreements to which we are party contain rent escalation clauses or lease incentives, such as rent abatements or tenant improvement allowances. Rent escalation clauses and lease incentives are taken into account in determining total rent expense to be recognized during the term of the lease, which begins on the date that we take control of the leased space. Renewal options are considered when evaluating the overall term of the lease. In accordance with FASB ASC Topic 840 – Leases We record tenant improvement allowances as a deferred rent obligation on our consolidated balance sheets and as a cash inflow from operating activities on our consolidated statements of cash flows. We record capital expenditures funded by tenant improvement allowances received as a leasehold improvement on our consolidated balance sheets and as an investing activity within our consolidated statements of cash flows. |
Share-Based Compensation | s. Share-Based Compensation FASB ASC Topic 718 – Compensation-Stock Compensation See Note 15 “Share-Based Compensation” for further discussion of our share-based compensation plans, the nature of share-based awards issued under the plans and our accounting for share-based awards. |
Educational Services and Facilities Expense | t. Educational Services and Facilities Expense Educational services and facilities expense includes costs directly attributable to the educational activities of our institutions, including: (1) salaries and benefits of faculty, academic administrators, and student support personnel, (2) costs of educational supplies and facilities, including rents on institution leases, certain costs of establishing and maintaining computer laboratories, costs of student housing, and owned and leased facility costs, and (3) costs of other goods and services provided by our institutions, including costs of textbooks, laptop computers, restaurant services and contract training. Costs of such other goods and services for continuing operations, included in educational services and facilities expense on our consolidated statements of income (loss) and comprehensive income (loss), were approximately $20.0 million, $26.0 million and $37.2 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Advertising Costs | u. Advertising Costs Advertising costs are expensed as incurred. Advertising costs for continuing operations, which are included in general and administrative expenses on our consolidated statements of income (loss) and comprehensive income (loss), were $220.5 million, $253.0 million and $269.0 million, for the years ended December 31, 2015, 2014 and 2013, respectively. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Combined Summary Results Of Operations For Discontinued Operations | Combined summary results of operations for our discontinued operations for the years ended December 31, 2015, 2014 and 2013 were as follows (dollars in thousands): For the Year Ended December 31, 2015 2014 2013 (1) Revenue $ (20 ) $ 4,708 $ 177,791 Operating expenses: Educational services and facilities $ 1,211 $ 25,152 $ 139,479 General and administrative 910 13,282 83,096 Depreciation and amortization - 2,073 10,913 Asset impairment - 68 1,044 Total operating expenses $ 2,121 $ 40,575 $ 234,532 Pretax (loss) income $ (2,128 ) $ (35,601 ) $ 73,493 Income tax (benefit) provision (997 ) - 68,477 (Loss) income from discontinued operations, net of tax $ (1,131 ) $ (35,601 ) $ 5,016 Net (loss) income per diluted share $ (0.02 ) $ (0.53 ) $ 0.08 Capital expenditures $ - $ - $ 6,128 (1) The income tax expense associated with the gain on sale of our International Segment approximates $87.9 million. |
Assets And Liabilities Of Discontinued Operations On Consolidated Balance Sheets | Assets and liabilities of discontinued operations on our consolidated balance sheets as of December 31, 2015 and 2014 include the following (dollars in thousands): As of December 31, 2015 2014 Assets: Current assets: Receivables, net $ 254 $ 473 Total current assets 254 473 Non-current assets: Other assets, net 720 975 Deferred income tax assets, net 8,091 - Total assets of discontinued operations $ 9,065 $ 1,448 Liabilities: Current liabilities: Accounts payable and accrued expenses $ 528 $ 579 Remaining lease obligations 12,539 14,927 Total current liabilities 13,067 15,506 Non-current liabilities: Remaining lease obligations 9,212 22,689 Other 164 170 Total liabilities of discontinued operations $ 22,443 $ 38,365 |
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 on our consolidated balance sheets, for the years ended December 31, 2015, 2014 and 2013 were as follows (dollars in thousands): Balance, Beginning of Period Charges Incurred (1) Net Cash Payments (2) Other (3) Balance, End of Period For the twelve months ended December 31, 2015 $ 37,616 $ (342 ) $ (15,523 ) $ - $ 21,751 For the twelve months ended December 31, 2014 $ 44,084 $ 13,676 $ (24,854 ) $ 4,710 $ 37,616 For the twelve months ended December 31, 2013 $ 46,298 $ 11,181 $ (13,700 ) $ 305 $ 44,084 (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) See Note 9 “Leases” for the future minimum lease payments under operating leases for discontinued operations as of December 31, 2015. (3) Includes existing prepaid rent and deferred rent liability balances for newly vacated spaces that are netted with the losses incurred in the period recorded. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Investments from Continuing Operations | Investments of our continuing operations consist of the following as of December 31, 2015 and 2014 (dollars in thousands): December 31, 2015 Gross Unrealized Cost Gain (Loss) Fair Value Short-term investments (available for sale): Municipal bonds $ 1,500 $ - $ (11 ) $ 1,489 Non-governmental debt securities 76,999 - (242 ) 76,757 Treasury and federal agencies 36,779 3 (127 ) 36,655 Total short-term investments 115,278 3 (380 ) 114,901 Long-term investments (available for sale): Municipal bond 7,850 - (476 ) 7,374 Total investments (available for sale) $ 123,128 $ 3 $ (856 ) $ 122,275 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 |
Schedule of Available-for-Sale Investments | A schedule of available-for-sale investments segregated by their original stated terms to maturity as of December 31, 2015 and 2014 are as follows (dollars in thousands): Less than one year One to five years Five to ten years Greater than ten years Total Original stated term to maturity of available-for-sale- investments as of December 31, 2015 $ 71,000 $ 43,552 $ - $ 7,723 $ 122,275 Original stated term to maturity of available-for-sale- investments as of December 31, 2014 $ 77,177 $ 44,182 $ 211 $ 8,662 $ 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 December 31, 2015 Level 1 Level 2 Level 3 Total Municipal bonds $ - $ 1,489 $ 7,374 $ 8,863 Non-governmental debt securities - 76,757 - 76,757 Treasury and federal agencies - 36,655 - 36,655 Totals $ - $ 114,901 $ 7,374 $ 122,275 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 ended December 31, 2015 (dollars in thousands): Balance at December 31, 2014 $ 7,374 Unrealized loss - Balance at December 31, 2015 $ 7,374 |
Student Receivables (Tables)
Student Receivables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Changes in Current and Non-Current Receivables Allowance | Changes in our current and non-current receivables allowance for the years ended December 31, 2015, 2014 and 2013 were as follows (dollars in thousands): Balance, Beginning of Period Charges to Expense (1) Amounts Written-off Balance, End of Period For the year ended December 31, 2015 $ 19,097 $ 22,212 $ (21,080 ) $ 20,229 For the year ended December 31, 2014 $ 27,504 $ 14,864 $ (23,271 ) $ 19,097 For the year ended December 31, 2013 $ 37,938 $ 25,939 $ (36,373 ) $ 27,504 (1) Charges to expense include an offset for recoveries of amounts previously written off of $6.7 million, $8.5 million and $7.2 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Schedule of Cost Basis and Estimated Useful Lives of Property and Equipment | The cost basis and estimated useful lives of property and equipment for continuing operations as of December 31, 2015 and 2014 are as follows (dollars in thousands): December 31, 2015 2014 Life Leasehold improvements $ 264,282 $ 331,867 Shorter of Life of Lease or Useful Life Computer hardware and software 124,899 126,694 3 years Furniture, fixtures and equipment 88,776 107,645 5-10 years Culinary equipment and library materials 17,822 20,404 10 years Building and improvements 8,657 10,966 15-35 years Vehicles 533 791 5 years Construction in progress 2,196 418 507,165 598,785 Less-accumulated depreciation (448,916 ) (483,181 ) Total property and equipment, net $ 58,249 $ 115,604 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Schedule of Changes in Future Minimum Lease Obligations | Changes in our future minimum lease obligations for exited space related to our continuing operations for the years ended December 31, 2015, 2014 and 2013 were as follows (dollars in thousands): Balance, Beginning of Period Charges Incurred (1) Net Cash Payments Other (2) Balance, End of Period For the year ended December 31, 2015 $ 7,094 $ 20,552 $ (18,817 ) $ 4,063 $ 12,892 For the year ended December 31, 2014 $ 7,259 $ 4,496 $ (5,475 ) $ 814 $ 7,094 For the year ended December 31, 2013 $ 9,241 $ 2,579 $ (7,825 ) $ 3,264 $ 7,259 (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 offset the losses incurred in the period recorded. |
Schedule of Future Minimum Lease Payments under Operating Leases for Continuing Operations and Discontinued Operations | As of December 31, 2015, future minimum lease payments under operating leases for continuing and discontinued operations are as follows (dollars in thousands): Operating Leases Continuing Discontinued Operations Operations Total 2016 $ 54,867 $ 14,974 $ 69,841 2017 47,743 13,536 61,279 2018 45,482 6,734 52,216 2019 35,883 1,438 37,321 2020 25,588 620 26,208 2021 and thereafter 19,404 - 19,404 Total $ 228,967 $ 37,302 $ 266,269 |
Schedule of Future Minimum Sublease Rental Income under Operating Leases for Continuing and Discontinued Operations | As of December 31, 2015, future minimum sublease rental income under operating leases, which will decrease our future minimum lease payments presented above, for continuing and discontinued operations is as follows (dollars in thousands): Operating Subleases Continuing Discontinued Operations Operations Total 2016 $ 3,220 $ 5,560 $ 8,780 2017 2,820 5,507 8,327 2018 2,412 1,481 3,893 2019 1,616 674 2,290 2020 322 691 1,013 2021 and thereafter 55 — 55 Total $ 10,445 $ 13,913 $ 24,358 |
Goodwill and Other Intangible33
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Cost Basis, Accumulated Amortization Net Book Value of Intangible Assets | As of December 31, 2015 and 2014, the cost basis, accumulated amortization and net book value of intangible assets for continuing operations are as follows (dollars in thousands): December 31, 2015 December 31, 2014 Net Net Accumulated Book Accumulated Book Cost Amortization Value Cost Amortization Value Amortizable intangible assets: Courseware $ 7,782 $ (7,782 ) $ - $ 9,671 $ (9,671 ) $ - LCB trade name, net of impairment (1) 1,400 - 1,400 - - - Missouri College trade name, net of impairment - - - 438 (219 ) 219 Amortizable intangible assets, net $ 9,182 $ (7,782 ) $ 1,400 $ 10,109 $ (9,890 ) $ 219 Non-amortizable intangible assets: Accreditation, licensing, and Title IV Program participation rights $ 1,000 $ 1,000 Trade names (1) 6,900 27,000 Non-amortizable intangible assets 7,900 28,000 Intangible assets, net $ 9,300 $ 28,219 ___________________ (1) The current year amount relates to our CTU trade name. The prior year amount relates to our CTU trade name as well as our LCB and Sanford-Brown trade names which were impaired during the current year and, for our LCB trade name, the remaining fair value of which was reclassified as definite-lived. |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 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 of these restructuring events for our continuing operations during the years ended December 31, 2015, 2014 and 2013 (dollars in thousands): Balance, Beginning Period Severance and related charges (1) Payments Non-cash adjustments (2) Balance, End of Period For the year ended December 31, 2015 $ 2,712 $ 24,085 $ (7,518 ) $ (294 ) $ 18,985 For the year ended December 31, 2014 $ 3,256 $ 3,979 $ (3,120 ) $ (1,403 ) $ 2,712 For the year ended December 31, 2013 $ 6,045 $ 5,556 $ (7,412 ) $ (933 ) $ 3,256 (1) Includes payments related to COBRA and outplacement services which are assumed to be completed by the third month following an employee’s departure. (2) 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 years ended December 31, 2015, 2014 and 2013 by reporting segment is as follows (dollars in thousands): For the Year Ended December 31, 2015 2014 2013 CTU $ 405 $ 544 $ - AIU 673 103 213 Total University Group 1,078 647 213 Corporate and Other 4,631 1,087 2,088 Subtotal 5,709 1,734 2,301 Culinary Arts 8,229 455 472 Transitional Group 10,147 1,790 2,783 Total $ 24,085 $ 3,979 $ 5,556 |
Credit Agreement (Tables)
Credit Agreement (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Credit Agreement | Selected details of our credit agreements as of and for the years ended December 31, 2015 and 2014 were as follows (dollars in thousands): As of December 31, 2015 2014 Credit Agreement: Credit facility remaining availability $ 46,554 $ 98,437 Credit facility borrowings $ 38,000 $ 10,000 Outstanding letters of credit (1)(2) $ 10,446 $ 11,563 Availability of additional letters of credit (3) $ 49,554 $ 8,437 Weighted average daily revolving credit borrowings for the year ended $ 3 $ 9 Weighted average annual interest rate 1.92 % 1.67 % Commitment fee rate 0.25 % 0.25 % Letter of credit fee rate 0.75 % 0.75 % (1) Represents letters of credit which are fully collateralized with $10.4 million and $11.6 million of restricted cash as of December 31, 2015 and 2014, respectively. (2) As of December 31, 2015 and 2014, outstanding letters of credit not related to the Credit Agreement totaled $1.4 million and $1.3 million, respectively, which amount is fully collateralized with restricted cash, which is in addition to the $10.4 million and $11.6 million, respectively, referenced in the preceding note. (3) The letters of credit sublimit of $60.0 million under the Credit Agreement is part of, not in addition to, the $95.0 million aggregate commitments. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of Pretax (Loss) Income from Continuing Operations | The components of pretax loss from continuing operations for the years ended December 31, 2015, 2014 and 2013 are as follows (dollars in thousands): For the Year Ended December 31, 2015 2014 2013 U.S $ (94,438 ) $ (138,826 ) $ (169,345 ) Foreign - - 522 Total $ (94,438 ) $ (138,826 ) $ (168,823 ) |
Schedule of (Benefits from) Provision for Income Taxes from Continuing Operations | The (benefit from) provision for income taxes from continuing operations for the years ended December 31, 2015, 2014 and 2013 consists of the following (dollars in thousands): For the Year Ended December 31, 2015 2014 2013 Current benefit Federal $ (364 ) $ (10,168 ) $ (22,904 ) State and local (2,279 ) (346 ) (4,140 ) Total current benefit (2,643 ) (10,514 ) (27,044 ) Deferred (benefit) provision Federal (126,465 ) 13,445 27,716 State and local (18,346 ) 805 (216 ) Total deferred (benefit) provision (144,811 ) 14,250 27,500 Total (benefit from) provision for income taxes $ (147,454 ) $ 3,736 $ 456 |
Schedule of Reconciliation of the Statutory U.S. Federal Income Tax Rate to Effective Income Tax Rate for Continuing Operations | A reconciliation of the statutory U.S. federal income tax rate to our effective income tax rate for continuing operations for the years ended December 31, 2015, 2014 and 2013 is as follows: For the Year Ended December 31, 2015 2014 2013 Statutory U.S. federal income tax rate (35.0 ) % (35.0 ) % (35.0 ) % State and local income taxes (2.7 ) (2.6 ) (4.0 ) Nondeductible goodwill - 0.6 1.8 Valuation allowance 0.6 37.0 44.8 Valuation allowance release (116.3 ) - - Federal audit settlement - 2.4 - Tax credits (0.2 ) - (3.2 ) Other (2.5 ) 0.3 (4.1 ) Effective income tax rate (156.1 ) % 2.7 % 0.3 % |
Schedule of Reconciliation of the Beginning and Ending Amount of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits as of December 31, 2015, 2014 and 2013 is as follows (dollars in thousands): 2015 2014 2013 Gross unrecognized tax benefits, beginning of the year $ 9,318 $ 13,900 $ 24,479 Additions for tax positions of prior years 19 129 3,582 Reductions for tax positions of prior years (20 ) - - Additions for tax positions related to the current year 864 931 813 Reductions due to settlements - (4,064 ) (13,707 ) Reductions due to lapse of applicable statute of limitations (2,444 ) (1,578 ) (1,267 ) Subtotal 7,737 9,318 13,900 Interest and penalties 1,986 2,820 3,107 Total gross unrecognized tax benefits, end of the year $ 9,723 $ 12,138 $ 17,007 |
Schedule of Components of Deferred Income Tax Assets and Liabilities for Continuing Operation | Components of deferred income tax assets and liabilities for continuing operations as of December 31, 2015 and 2014 are as follows (dollars in thousands): December 31, 2015 2014 Deferred income tax assets: Accrued occupancy $ 4,191 $ 2,024 Deferred rent obligations 9,281 13,757 Foreign tax credits 32,998 32,998 Valuation allowance foreign tax credits (32,998 ) (6,264 ) Compensation and employee benefits 12,751 14,405 Tax net operating loss carry forwards 61,982 34,067 Valuation allowance (8,196 ) (34,067 ) Allowance for doubtful accounts 3,967 3,610 Covenant not-to-compete 11 58 Accrued settlements and legal 938 1,631 Deferred compensation 520 1,777 Accrued restructuring and severance 6,014 1,072 Equity method for investments 256 19 General business tax credits 699 450 Illinois edge credits 6,351 6,351 Valuation allowance edge credits (6,351 ) (6,351 ) Depreciation and amortization 47,453 32,846 Other 712 1,059 Valuation allowance deferred tax assets - (96,061 ) Total deferred income tax assets 140,579 3,381 Deferred income tax liabilities: Other 2,863 3,381 Total deferred income tax liabilities 2,863 3,381 Net deferred income tax assets $ 137,716 $ - |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Information with Respect to Outstanding and Exercisable Stock Options | The following table summarizes information with respect to all outstanding and exercisable stock options under all of our plans as of December 31, 2015: Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Number Exercisable Weighted Average Exercise Price $ 2.65 $ 2.82 285,416 $ 2.74 7.13 176,708 $ 2.76 $ 3.93 $ 4.15 467,364 $ 4.06 9.56 - $ - $ 5.00 $ 6.51 269,474 $ 6.04 7.87 101,701 $ 6.43 $ 7.33 $ 7.33 151,230 $ 7.33 6.37 62,874 $ 7.33 $ 8.63 $ 8.63 291,563 $ 8.63 1.64 285,507 $ 8.63 $ 13.32 $ 21.80 335,112 $ 17.66 2.59 335,112 $ 17.66 $ 22.04 $ 22.13 276,000 $ 22.08 3.52 276,000 $ 22.08 $ 26.15 $ 30.67 305,564 $ 29.50 3.27 305,564 $ 29.50 $ 30.80 $ 33.96 258,000 $ 32.30 0.83 258,000 $ 32.30 $ 34.86 $ 34.86 18,000 $ 34.86 0.12 18,000 $ 34.86 2,657,723 $ 14.27 4.94 1,819,466 $ 18.71 |
Schedule of Deferred Stock Units to be Settled in Shares | The following table summarizes information with respect to all deferred stock units during the years ended December 31, 2015 and 2014: Deferred Stock Units to be Settled in Shares Weighted Average Grant-Date Fair Value Per Unit Outstanding as of December 31, 2013 — $ — Granted 116,952 4.39 Vested — — Forfeited — — Outstanding as of December 31, 2014 116,952 $ 4.39 Granted 2,928 5.73 Vested (1) (19,492 ) 4.39 Forfeited (9,746 ) 4.39 Outstanding as of December 31, 2015 90,642 $ 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 for the years ended December 31, 2015, 2014 and 2013: Restricted Stock Units to be Settled in Cash Outstanding as of December 31, 2012 — Granted 2,938,283 Vested — Forfeited (649,368 ) Outstanding as of December 31, 2013 2,288,915 Granted 981,136 Vested (755,656 ) Forfeited (671,940 ) Outstanding as of December 31, 2014 1,842,455 Granted 1,036,720 Vested (444,499 ) Forfeited (696,060 ) Outstanding as of December 31, 2015 1,738,616 |
Summary of Total Stock Based Compensation Expense | Stock-Based Compensation Expense. Total stock-based compensation expense for the years ended December 31, 2015, 2014 and 2013 for all types of awards was as follows (dollars in thousands): December 31, Award Type 2015 (1) 2014 2013 Stock Options $ 761 $ 1,372 $ 2,308 Restricted stock or units settled in stock 2,532 2,865 4,339 Restricted stock units settled in cash 1,447 4,514 3,452 Stock appreciation rights settled in cash — 295 149 Total stock-based compensation expense $ 4,740 $ 9,046 $ 10,248 (1) Stock-based compensation expense for 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. |
Schedule of Fair Value of Stock Option Award Granted Estimated on Date of Grant Using the Black-Scholes-Merton Option Pricing Model | The weighted average fair value per share of stock option awards granted during the years ended December 31, 2015, 2014 and 2013, and assumptions used to value stock options are as follows: For the Year Ended December 31, 2015 2014 2013 Dividend yield — — — Risk-free interest rate 1.6 % 1.4 % 1.1 % Weighted average volatility 73.2 % 73.0 % 64.6 % Expected life (in years) 5.1 4.3 5.6 Weighted average grant date fair value per share of options granted $ 2.86 $ 3.89 $ 1.47 |
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 years ended December 31, 2015, 2014 and 2013: Restricted Stock to be Settled in Shares of Stock Shares Weighted Average Grant-Date Fair Value Per Share Units Weighted Average Grant-Date Fair Value Per Unit Total Outstanding as of December 31, 2012 854,291 $ 24.74 1,143,933 $ 8.27 1,998,224 Granted — — 43,313 2.72 43,313 Vested (208,461 ) 23.10 (306,605 ) 8.60 (515,066 ) Forfeited (424,268 ) 27.01 (342,020 ) 7.22 (766,288 ) Outstanding as of December 31, 2013 221,562 $ 22.19 538,621 $ 8.30 760,183 Granted — — 318,940 6.57 318,940 Vested (136,133 ) 22.94 (135,645 ) 8.61 (271,778 ) Forfeited (42,677 ) 20.87 (165,776 ) 7.90 (208,453 ) Outstanding as of December 31, 2014 42,752 $ 21.63 556,140 $ 7.35 598,892 Granted — — 645,332 5.62 645,332 Vested (39,969 ) 21.62 (197,609 ) 7.94 (237,578 ) Forfeited (2,783 ) 21.80 (409,558 ) 6.33 (412,341 ) Outstanding as of December 31, 2015 - $ — 594,305 $ 5.98 594,305 |
Employee Stock Option [Member] | |
Summary of Stock Option Activity | Stock option activity during the years ended December 31, 2015, 2014 and 2013 under all of our plans was as follows: Options Weighted Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic (in thousands) Outstanding as of December 31, 2012 2,591,887 $ 25.96 Granted 1,934,005 2.58 Exercised (1,275 ) 3.08 $ 3 Forfeited (261,366 ) 5.19 Cancelled (362,816 ) 31.60 Outstanding as of December 31, 2013 3,900,435 $ 15.15 Granted 746,318 6.89 Exercised (225,000 ) 2.72 $ 721 Forfeited (299,577 ) 4.94 Cancelled (340,212 ) 39.49 Outstanding as of December 31, 2014 3,781,964 $ 12.88 Granted 848,705 4.83 Exercised (303,035 ) 2.73 $ 620 Forfeited (1,278,150 ) 4.60 Cancelled (391,761 ) 20.87 Outstanding as of December 31, 2015 2,657,723 $ 14.27 4.9 years $ 254 Exercisable as of December 31, 2015 1,819,466 $ 18.71 3.1 years $ 154 |
Weighted Average Common Shares
Weighted Average Common Shares (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Summary of Weighted Average Numbers of Common Shares Used to Compute Basic and Diluted Net Income (Loss) Per Share | The weighted average number of common shares used to compute basic and diluted net income (loss) per share for the years ended December 31, 2015, 2014 and 2013 were as follows: For the Year Ended December 31, 2015 2014 (1) 2013 (1) Basic common shares outstanding 67,860 67,173 66,738 Common stock equivalents 468 - - Diluted common shares outstanding 68,328 67,173 66,738 _________________ (1) Earnings per Share |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Summary Financial Information by Reporting Segment | Summary financial information by reporting segment is as follows (dollars in thousands): Revenue Operating (Loss) Income Depreciation and Amortization Capital Expenditures Total Assets For the Year Ended December 31, 2015 (1) CTU $ 348,215 $ 87,496 $ 2,281 $ 1,084 $ 76,577 AIU 201,649 5,520 1,636 2,406 53,087 Total University Group 549,864 93,016 3,917 3,490 129,664 Corporate and Other 157 (27,267 ) 11,173 4,873 372,405 Subtotal 550,021 65,749 15,090 8,363 502,069 Culinary Arts (2) 170,190 (57,577 ) 1 2,352 71,197 Transitional Group (3) 127,062 (100,340 ) 9,847 980 28,584 Discontinued Operations 9,065 Total $ 847,273 $ (92,168 ) $ 24,938 $ 11,695 $ 610,915 For the Year Ended December 31, 2014 (1) CTU $ 336,573 $ 69,492 $ 2,627 $ 628 $ 73,458 AIU 198,896 (9,412 ) 2,329 916 51,755 Total University Group 535,469 60,080 4,956 1,544 125,213 Corporate and Other (4) 230 (21,169 ) 17,455 4,545 332,672 Subtotal 535,699 38,911 22,411 6,089 457,885 Culinary Arts (5) 172,606 (66,556 ) 17,363 2,292 76,846 Transitional Group (6) 205,659 (111,627 ) 13,608 4,775 37,355 Discontinued Operations - 1,448 Total $ 913,964 $ (139,272 ) $ 53,382 $ 13,156 $ 573,534 For the Year Ended December 31, 2013 (1) CTU $ 346,086 $ 65,078 $ 2,828 $ 158 AIU 231,606 (5,556 ) 3,069 122 Total University Group 577,692 59,522 5,897 280 Corporate and Other — (33,600 ) 22,574 6,272 Subtotal 577,692 25,922 28,471 6,552 Culinary Arts (7) 177,549 (81,218 ) 17,082 705 Transitional Group (8) 261,989 (106,763 ) 16,684 6,251 Discontinued Operations 6,128 Total $ 1,017,230 $ (162,059 ) $ 62,237 $ 19,636 (1) The statement of income (loss) and comprehensive income (loss) balances including revenue, operating (loss) income and depreciation and amortization are presented above on a continuing operations basis. Total assets and capital expenditures are presented on a consolidated basis including continuing and discontinued operations. For the year ended December 31, 2015, segment results included: (2) Culinary Arts: $35.1 million related to long-lived asset impairment and a $17.0 million trade name impairment charge. (3) Transitional Group: $6.1 million related to long-lived asset impairment and a $1.8 million trade name impairment charge. For the year ended December 31, 2014, segment results included: (4) Corporate and Other: $8.6 million of income related to an insurance recovery. (5) Culinary Arts: $10.3 million related to long-lived asset impairment and a $8.9 million trade name impairment charge. (6) Transitional Group: $ a $2.2 million trade For the year ended December 31, 2013, segment results included: (7) Culinary Arts ( 8 ) Transitional Group: $7.7 million of trade name and asset impairment charges and $10.5 million related to the settlement of legal matters. |
Quarterly Financial Summary (40
Quarterly Financial Summary (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Summary | Summary financial information by quarter is as follows (dollars in thousands, except per share data): Quarter Total 2015 First (2) Second (3) Third (4) Fourth (5) Year Revenue $ 227,014 $ 216,828 $ 203,484 $ 199,947 $ 847,273 Operating loss (24,358 ) (19,892 ) (43,989 ) (3,929 ) $ (92,168 ) Net (loss) income (24,881 ) (20,723 ) (45,235 ) 142,724 $ 51,885 Net (loss) income per share (1) Basic $ (0.37 ) $ (0.31 ) $ (0.67 ) $ 2.10 $ 0.76 Diluted $ (0.37 ) $ (0.31 ) $ (0.67 ) $ 2.08 $ 0.76 Quarter Total 2014 First Second (6) Third (7) Fourth (8) Year Revenue $ 240,401 $ 228,738 $ 227,324 $ 217,501 $ 913,964 Operating loss (39,995 ) (31,023 ) (44,334 ) (23,920 ) $ (139,272 ) Net loss (58,143 ) (46,564 ) (47,968 ) (25,488 ) $ (178,163 ) Net loss per share (1) Basic and Diluted $ (0.87 ) $ (0.69 ) $ (0.71 ) $ (0.38 ) $ (2.65 ) (1) Basic and diluted earnings per share are calculated independently for each of the quarters presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree with the annual earnings per share amount for the corresponding year. For the year ended December 31, 2015, quarterly results included: (2) First quarter of 2015 net loss included $6.0 million of impairment charges related to the Transitional Group. (3) Second quarter of 2015 net loss included $9.7 million of impairment charges related to Culinary Arts and $1.7 million of impairment charges related to the Transitional Group. (4) Third quarter of 2015 net losses included $33.4 million of impairment charges related to Culinary Arts. (5) Fourth quarter of 2015 net income included $9.7 million of impairment charges, of which $9.0 million was related to Culinary Arts. Furthermore, fourth quarter of 2015 net income included a $109.8 million benefit related to the partial release of our valuation allowance recorded against our deferred tax assets. For the year ended December 31, 2014, quarterly results included: (6) Second quarter of 2014 net loss included $7.4 million of trade name impairment charges related to Culinary Arts. (7) Third quarter of 2014 net loss included $3.0 million of trade name impairments, $11.5 million of asset impairment charges and $8.6 million of income related to an insurance recovery. (8) Fourth quarter of 2014 net loss included $14.2 million of trade name and asset impairment charges, of which $10.3 million was related to Culinary Arts. Additionally, the fourth quarter of 2014 included a decrease of $12.3 million of revenue, a decrease of $9.9 million of bad debt expense for a cumulative adjustment related to revenue recognition for withdrawn students. |
Description of the Company - Ad
Description of the Company - Additional Information (Detail) | Dec. 31, 2015University |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of universities | 2 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)SegmentCmp | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Accounting Policies [Line Items] | |||
Number of reporting segments | Segment | 4 | ||
Loans disbursed under credit agreement secured by cash, percentage | 100.00% | ||
Restricted cash and cash equivalents | $ 49,821 | $ 22,938 | |
Certificates of deposit, at carrying value | 11,800 | 12,900 | |
Additional restricted cash for securitization | $ 38,000 | 10,000 | |
Number of days past due to write off student receivables | Greater than 90 days | ||
Costs of other goods and services included in educational services and facilities expense | $ 20,000 | 26,000 | $ 37,200 |
Advertising costs | 220,500 | $ 253,000 | $ 269,000 |
Title IV Programs [Member] | |||
Accounting Policies [Line Items] | |||
Student fund portion in cash, cash equivalents, restricted cash and short term investments | $ 12,300 | ||
Maximum [Member] | |||
Accounting Policies [Line Items] | |||
Maturity period of cash equivalents including short-term investments | 90 days | ||
Student Loans [Member] | Minimum [Member] | |||
Accounting Policies [Line Items] | |||
Student receivables period | 1 year | ||
Student Loans [Member] | Minimum [Member] | Non Current Assets [Member] | |||
Accounting Policies [Line Items] | |||
Student receivables period | 1 year | ||
Student Loans [Member] | Maximum [Member] | Current Assets [Member] | |||
Accounting Policies [Line Items] | |||
Student receivables period | 1 year | ||
Student Loans [Member] | Maximum [Member] | Non Current Assets [Member] | |||
Accounting Policies [Line Items] | |||
Student receivables period | 5 years | ||
Cash Receipts [Member] | |||
Accounting Policies [Line Items] | |||
Percentage of cash receipts from Title IV Program funding | 77.00% | 78.00% | 78.00% |
Sanford-Brown campuses [Member] | |||
Accounting Policies [Line Items] | |||
Number of teach out campus | Cmp | 15 | ||
Briarcliffe college campuses | |||
Accounting Policies [Line Items] | |||
Number of teach out campus | Cmp | 2 | ||
Culinary Arts [Member] | |||
Accounting Policies [Line Items] | |||
Number of teach out campus | Cmp | 17 | ||
Transitional Group [Member] | |||
Accounting Policies [Line Items] | |||
Number of additional campuses | Cmp | 5 | ||
Transitional Group Segment [Member] | |||
Accounting Policies [Line Items] | |||
Number of teach out campuses sold | Cmp | 2 |
Dispositions - Additional Infor
Dispositions - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2013 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Loss on sale of business | $ (1,793,000) | $ (6,905,000) |
Brooks Institute [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Proceeds from divestiture of businesses | 0 | |
Loss on sale of business | (900,000) | |
Missouri College [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Proceeds from divestiture of businesses | 0 | |
Loss on sale of business | $ (900,000) |
Discontinued Operations - Summa
Discontinued Operations - Summary Results of Operations for Discontinued Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | [1] | |
Discontinued Operations And Disposal Groups [Abstract] | ||||
Revenue | $ (20) | $ 4,708 | $ 177,791 | |
Operating expenses: | ||||
Educational services and facilities | 1,211 | 25,152 | 139,479 | |
General and administrative | 910 | 13,282 | 83,096 | |
Depreciation and amortization | 0 | 2,073 | 10,913 | |
Asset impairment | 0 | 68 | 1,044 | |
Total operating expenses | 2,121 | 40,575 | 234,532 | |
Pretax (loss) income | (2,128) | (35,601) | 73,493 | |
Income tax (benefit) provision | (997) | 0 | 68,477 | |
(Loss) income from discontinued operations, net of tax | $ (1,131) | $ (35,601) | $ 5,016 | |
Net (loss) income per diluted share | $ (0.02) | $ (0.53) | $ 0.08 | |
Capital expenditures | $ 0 | $ 0 | $ 6,128 | |
[1] | The income tax expense associated with the gain on sale of our International Segment approximates $87.9 million. |
Discontinued Operations - Sum45
Discontinued Operations - Summary Results of Operations for Discontinued Operations (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Discontinued Operations And Disposal Groups [Abstract] | |
Income tax expense | $ 87.9 |
Discontinued Operations - Asset
Discontinued Operations - Assets and Liabilities of Discontinued Operations on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Disposal Group Including Discontinued Operation Balance Sheet Disclosures [Abstract] | ||
Receivables, net | $ 254 | $ 473 |
Total current assets | 254 | 473 |
Other assets, net | 720 | 975 |
Deferred income tax assets, net | 8,091 | |
Total assets of discontinued operations | 9,065 | 1,448 |
Accounts payable and accrued expenses | 528 | 579 |
Remaining lease obligations | 12,539 | 14,927 |
Total current liabilities | 13,067 | 15,506 |
Remaining lease obligations | 9,212 | 22,689 |
Other | 164 | 170 |
Total liabilities of discontinued operations | $ 22,443 | $ 38,365 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 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 | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Discontinued Operations And Disposal Groups [Abstract] | ||||
Balance, Beginning of Period | $ 37,616 | $ 44,084 | $ 46,298 | |
Charges Incurred | [1] | (342) | 13,676 | 11,181 |
Net Cash Payments | [2] | (15,523) | (24,854) | (13,700) |
Other | [3] | 4,710 | 305 | |
Balance, End of Period | $ 21,751 | $ 37,616 | $ 44,084 | |
[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] | See Note 9 “Leases” for the future minimum lease payments under operating leases for discontinued operations as of December 31, 2015. | |||
[3] | Includes existing prepaid rent and deferred rent liability balances for newly vacated spaces that are netted with the losses incurred in the period recorded. |
Investments - Summary of Invest
Investments - Summary of Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | $ 123,128 | $ 131,058 |
Total investments (available for sale), Gross Unrealized Gain | 3 | 8 |
Total investments (available for sale), Gross Unrealized (Loss) | (856) | (834) |
Total investments (available for sale), Fair value | 122,275 | 130,232 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Fair value | 8,863 | 14,199 |
Non-governmental Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Fair value | 76,757 | 98,130 |
Treasury and Federal Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Fair value | 36,655 | 17,903 |
Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | 115,278 | 123,208 |
Total investments (available for sale), Gross Unrealized Gain | 3 | 8 |
Total investments (available for sale), Gross Unrealized (Loss) | (380) | (358) |
Total investments (available for sale), Fair value | 114,901 | 122,858 |
Short-term Investments [Member] | Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | 1,500 | 6,880 |
Total investments (available for sale), Gross Unrealized Gain | 1 | |
Total investments (available for sale), Gross Unrealized (Loss) | (11) | (56) |
Total investments (available for sale), Fair value | 1,489 | 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 | 76,999 | 98,400 |
Total investments (available for sale), Gross Unrealized Gain | 1 | |
Total investments (available for sale), Gross Unrealized (Loss) | (242) | (271) |
Total investments (available for sale), Fair value | 76,757 | 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 | 36,779 | 17,928 |
Total investments (available for sale), Gross Unrealized Gain | 3 | 6 |
Total investments (available for sale), Gross Unrealized (Loss) | (127) | (31) |
Total investments (available for sale), Fair value | 36,655 | 17,903 |
Long Term Investments [Member] | Municipal Bonds [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 ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financial Instruments [Line Items] | |||
Period cash equivalents and short-term investments have been in continuous unrealized loss position, years, maximum | 1 year | ||
Period cash equivalents and long-term investments have been in continuous unrealized loss position, years, minimum | 1 year | ||
Unrealized gains (losses) on investments | $ 27 | $ 350 | $ 13 |
CCKF [Member] | |||
Financial Instruments [Line Items] | |||
Non controlling interest | $ 3,900 | ||
Percentage of investment in equity affiliate | 30.70% | ||
Income (loss) from investment in affiliate | $ (300) | ||
CCKF [Member] | Maximum [Member] | |||
Financial Instruments [Line Items] | |||
Income (loss) from investment in affiliate | $ 100 | ||
Municipal Bonds [Member] | |||
Financial Instruments [Line Items] | |||
Period debt obligations mature, years, maximum | 1 year | ||
Unrealized gains (losses) on investments | $ 500 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-Sale Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Amortized Cost And Fair Value Debt Securities [Abstract] | ||
Original stated term to maturity of available-for-sale- investments, Less than one year | $ 71,000 | $ 77,177 |
Original stated term to maturity of available-for-sale- investments, One to five years | 43,552 | 44,182 |
Original stated term to maturity of available-for-sale- investments, Five to ten years | 211 | |
Original stated term to maturity of available-for-sale- investments, Greater than ten years | 7,723 | 8,662 |
Original stated term to maturity of available-for-sale- investments, Total | $ 122,275 | $ 130,232 |
Investments - Investments Measu
Investments - Investments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | $ 122,275 | $ 130,232 |
Level 2 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 114,901 | 122,858 |
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 |
Municipal Bonds [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 8,863 | 14,199 |
Municipal Bonds [Member] | Level 2 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 1,489 | 6,825 |
Municipal Bonds [Member] | 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 |
Non-governmental Debt Securities [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 76,757 | 98,130 |
Non-governmental Debt Securities [Member] | Level 2 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 76,757 | 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 | 36,655 | 17,903 |
Treasury and Federal Agencies [Member] | Level 2 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | $ 36,655 | $ 17,903 |
Investments - Assets Measured a
Investments - Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level3) (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 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 | 12 Months Ended | |
Dec. 31, 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 | $ 4 | $ 3.9 |
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 | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Receivables [Abstract] | ||||
Balance, Beginning of Period | $ 19,097 | $ 27,504 | $ 37,938 | |
Charges to Expense | [1] | 22,212 | 14,864 | 25,939 |
Amounts Written-off | (21,080) | (23,271) | (36,373) | |
Balance, End of Period | $ 20,229 | $ 19,097 | $ 27,504 | |
[1] | Charges to expense include an offset for recoveries of amounts previously written off of $6.7 million, $8.5 million and $7.2 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Student Receivables - Changes56
Student Receivables - Changes in Current and Non-Current Receivables Allowance (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Receivables [Abstract] | |||
Recoveries of amounts previously written off | $ 6.7 | $ 8.5 | $ 7.2 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Cost Basis and Estimated Useful Lives of Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Leasehold improvements | $ 264,282 | $ 331,867 |
Computer hardware and software | 124,899 | 126,694 |
Furniture, fixtures and equipment | 88,776 | 107,645 |
Culinary equipment and library materials | 17,822 | 20,404 |
Building and improvements | 8,657 | 10,966 |
Vehicles | 533 | 791 |
Construction in progress | 2,196 | 418 |
Property plant and equipment, Total | 507,165 | 598,785 |
Less-accumulated depreciation | (448,916) | (483,181) |
Total property and equipment, net | $ 58,249 | $ 115,604 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life (in years) | Shorter of Life of Lease or Useful Life | |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life (in years) | 3 years | |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life (in years) | 5 years | |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life (in years) | 10 years | |
Culinary equipment and library materials [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life (in years) | 10 years | |
Building and Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life (in years) | 15 years | |
Building and Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life (in years) | 35 years | |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life (in years) | 5 years |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense for continuing operations | $ 24.8 | $ 52.6 | $ 61.1 |
Depreciation expense for discontinued operations | 0 | 2 | $ 10.7 |
Asset impairment charges | $ 41.7 | $ 25 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property Subject to or Available for Operating Lease [Line Items] | |||
Operating leases expiration date | 2,023 | ||
Gain on rent expense | $ 2,400 | ||
Operating leases obligation | 266,269 | ||
Continuing Operation [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Rent expense, exclusive of related taxes | 64,300 | $ 68,600 | $ 75,200 |
Operating leases obligation | 228,967 | ||
Discontinued Operations [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Rent expense, exclusive of related taxes | $ 14,400 | $ 34,200 | |
Operating leases obligation | 37,302 | ||
Transitional Group [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Operating leases obligation | 74,300 | ||
Culinary Arts [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Operating leases obligation | $ 84,700 | ||
Minimum [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Lease term range, years | 5 years | ||
Number of renewal options for extended terms | 1 year | ||
Maximum [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Lease term range, years | 10 years | ||
Number of renewal options for extended terms | 2 years |
Leases - Schedule of Changes in
Leases - Schedule of Changes in Future Minimum Lease Obligations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases [Abstract] | |||
Balance, Beginning of Period | $ 7,094 | $ 7,259 | $ 9,241 |
Charges Incurred | 20,552 | 4,496 | 2,579 |
Net Cash Payments | (18,817) | (5,475) | (7,825) |
Other | 4,063 | 814 | 3,264 |
Balance, End of Period | $ 12,892 | $ 7,094 | $ 7,259 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments under Capital Leases and Operating Leases for Continuing and Discontinued Operations (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Property Subject to or Available for Operating Lease [Line Items] | |
Operating Leases, 2016 | $ 69,841 |
Operating Leases, 2017 | 61,279 |
Operating Leases, 2018 | 52,216 |
Operating Leases, 2019 | 37,321 |
Operating Leases, 2020 | 26,208 |
Operating Leases, 2021 and thereafter | 19,404 |
Operating Leases, Total | 266,269 |
Operating Subleases, 2016 | 8,780 |
Operating Subleases, 2017 | 8,327 |
Operating Subleases, 2018 | 3,893 |
Operating Subleases, 2019 | 2,290 |
Operating Subleases, 2020 | 1,013 |
Operating Subleases, 2021 and thereafter | 55 |
Operating Subleases, Total | 24,358 |
Continuing Operation [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Operating Leases, 2016 | 54,867 |
Operating Leases, 2017 | 47,743 |
Operating Leases, 2018 | 45,482 |
Operating Leases, 2019 | 35,883 |
Operating Leases, 2020 | 25,588 |
Operating Leases, 2021 and thereafter | 19,404 |
Operating Leases, Total | 228,967 |
Operating Subleases, 2016 | 3,220 |
Operating Subleases, 2017 | 2,820 |
Operating Subleases, 2018 | 2,412 |
Operating Subleases, 2019 | 1,616 |
Operating Subleases, 2020 | 322 |
Operating Subleases, 2021 and thereafter | 55 |
Operating Subleases, Total | 10,445 |
Discontinued Operations [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Operating Leases, 2016 | 14,974 |
Operating Leases, 2017 | 13,536 |
Operating Leases, 2018 | 6,734 |
Operating Leases, 2019 | 1,438 |
Operating Leases, 2020 | 620 |
Operating Leases, Total | 37,302 |
Operating Subleases, 2016 | 5,560 |
Operating Subleases, 2017 | 5,507 |
Operating Subleases, 2018 | 1,481 |
Operating Subleases, 2019 | 674 |
Operating Subleases, 2020 | 691 |
Operating Subleases, Total | $ 13,913 |
Goodwill and Other Intangible62
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Impairment Charges [Line Items] | ||||
Changes in the carrying amount of goodwill | $ 0 | $ 0 | ||
Carrying value of goodwill | 87,356,000 | 87,356,000 | ||
Definite-lived trade name | 1,400,000 | |||
Amortization expense from continuing operations | $ 100,000 | 800,000 | $ 1,100,000 | |
LCB Trade Name[Member] | ||||
Impairment Charges [Line Items] | ||||
Estimated useful lives of intangible assets, in years | 21 months | |||
Definite-lived trade name | $ 1,400,000 | |||
Trade name impairment charge | $ 17,000,000 | |||
Sanford-Brown and Missouri College Trade Name [Member] | ||||
Impairment Charges [Line Items] | ||||
Trade name impairment charge | $ 1,800,000 | |||
Maximum [Member] | ||||
Impairment Charges [Line Items] | ||||
Estimated useful lives of intangible assets, in years | 21 months | |||
CTU [Member] | ||||
Impairment Charges [Line Items] | ||||
Carrying value of goodwill | $ 45,900,000 | 45,900,000 | ||
AIU [Member] | ||||
Impairment Charges [Line Items] | ||||
Carrying value of goodwill | $ 41,400,000 | $ 41,400,000 |
Goodwill and Other Intangible63
Goodwill and Other Intangible Assets - Schedule of Cost Basis, Accumulated Amortization Net Book Value of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible Assets Net Excluding Goodwill [Line Items] | |||
Cost | $ 9,182 | $ 10,109 | |
Accumulated Amortization | (7,782) | (9,890) | |
Net Book Value of Amortizable intangible assets, net | 1,400 | 219 | |
Non-amortizable intangible assets | 7,900 | 28,000 | |
Intangible assets, net | 9,300 | 28,219 | |
Accreditation, licensing, and Title IV Program participation rights [Member] | |||
Intangible Assets Net Excluding Goodwill [Line Items] | |||
Non-amortizable intangible assets | 1,000 | 1,000 | |
Trade names [Member] | |||
Intangible Assets Net Excluding Goodwill [Line Items] | |||
Non-amortizable intangible assets | 6,900 | 27,000 | |
Courseware [Member] | |||
Intangible Assets Net Excluding Goodwill [Line Items] | |||
Cost | 7,782 | 9,671 | |
Accumulated Amortization | (7,782) | (9,671) | |
LCB [Member] | |||
Intangible Assets Net Excluding Goodwill [Line Items] | |||
Cost | [1] | 1,400 | |
Net Book Value of Amortizable intangible assets, net | [1] | $ 1,400 | |
Missouri College [Member] | |||
Intangible Assets Net Excluding Goodwill [Line Items] | |||
Cost | 438 | ||
Accumulated Amortization | (219) | ||
Net Book Value of Amortizable intangible assets, net | $ 219 | ||
[1] | The current year amount relates to our CTU trade name. The prior year amount relates to our CTU trade name as well as our LCB and Sanford-Brown trade names which were impaired during the current year and, for our LCB trade name, the remaining fair value of which was reclassified as definite-lived. |
Restructuring Charges - Accrual
Restructuring Charges - Accrual for Severance and Related Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Restructuring And Related Activities [Abstract] | ||||
Beginning of Period | $ 2,712 | $ 3,256 | $ 6,045 | |
Severance and Related Charges | [1] | 24,085 | 3,979 | 5,556 |
Payments | (7,518) | (3,120) | (7,412) | |
Non-cash Adjustments | [2] | (294) | (1,403) | (933) |
End of Period | $ 18,985 | $ 2,712 | $ 3,256 | |
[1] | Includes payments related to COBRA and outplacement services which are assumed to be completed by the third month following an employee’s departure. | |||
[2] | 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) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Restructuring And Related Cost [Line Items] | ||||
Severance and related expenses | [1] | $ 24,085 | $ 3,979 | $ 5,556 |
University Group [Member] | ||||
Restructuring And Related Cost [Line Items] | ||||
Severance and related expenses | 1,078 | 647 | 213 | |
Corporate and Other [Member] | ||||
Restructuring And Related Cost [Line Items] | ||||
Severance and related expenses | 4,631 | 1,087 | 2,088 | |
Subtotal [Member] | ||||
Restructuring And Related Cost [Line Items] | ||||
Severance and related expenses | 5,709 | 1,734 | 2,301 | |
Culinary Arts [Member] | ||||
Restructuring And Related Cost [Line Items] | ||||
Severance and related expenses | 8,229 | 455 | 472 | |
Transitional Group [Member] | ||||
Restructuring And Related Cost [Line Items] | ||||
Severance and related expenses | 10,147 | 1,790 | 2,783 | |
CTU [Member] | ||||
Restructuring And Related Cost [Line Items] | ||||
Severance and related expenses | 405 | 544 | ||
AIU [Member] | ||||
Restructuring And Related Cost [Line Items] | ||||
Severance and related expenses | $ 673 | $ 103 | $ 213 | |
[1] | Includes payments related to COBRA and outplacement services which are assumed to be completed by the third month following an employee’s departure. |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost And Reserve [Line Items] | ||
Accrual for severance and related charges | $ 11.5 | $ 1.7 |
Long term amount | $ 7.5 | $ 1 |
Lease expiration teach out campuses | 2,023 | |
Accrued retention bonuses | $ 1.8 | |
Charges related to remaining obligations | 20.6 | |
Minimum [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Gross remaining lease obligations | 50 | |
Maximum [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Gross remaining lease obligations | $ 60 |
Credit Agreement - Additional I
Credit Agreement - Additional Information (Detail) - Credit Agreement [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 11, 2015 | Dec. 31, 2014 | |
Line Of Credit Facility [Line Items] | |||
Credit facility borrowings | $ 38,000,000 | $ 10,000,000 | |
Revolving Credit Facility [Member] | BMO Harris Bank N.A. (“BMO Harris”) [Member] | |||
Line Of Credit Facility [Line Items] | |||
Revolving credit facility | $ 95,000,000 | ||
Revolving credit facility maturity date | Dec. 31, 2018 | ||
Number of days for pre-payment notice | 3 days | ||
Number of days for termination notice | 5 days | ||
Minimum cash under covenant term | $ 110,000,000 | ||
Cash collateral percentage | 100.00% | ||
Credit facility borrowings | $ 38,000,000 |
Credit Agreement - Schedule of
Credit Agreement - Schedule of U.S. Credit Agreement (Detail) - Credit Agreement [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Credit Agreement: | |||
Credit facility remaining availability | $ 46,554 | $ 98,437 | |
Credit facility borrowings | 38,000 | 10,000 | |
Outstanding letters of credit | [1],[2] | 10,446 | 11,563 |
Availability of additional letters of credit | [3] | 49,554 | 8,437 |
Weighted average daily revolving credit borrowings for the year ended | $ 3 | $ 9 | |
Weighted average annual interest rate | 1.92% | 1.67% | |
Commitment fee rate | 0.25% | 0.25% | |
Letter of credit fee rate | 0.75% | 0.75% | |
[1] | As of December 31, 2015 and 2014, outstanding letters of credit not related to the Credit Agreement totaled $1.4 million and $1.3 million, respectively, which amount is fully collateralized with restricted cash, which is in addition to the $10.4 million and $11.6 million, respectively, referenced in the preceding note. | ||
[2] | Represents letters of credit which are fully collateralized with $10.4 million and $11.6 million of restricted cash as of December 31, 2015 and 2014, respectively. | ||
[3] | The letters of credit sublimit of $60.0 million under the Credit Agreement is part of, not in addition to, the $95.0 million aggregate commitments. |
Credit Agreement - Schedule o69
Credit Agreement - Schedule of U.S. Credit Agreement (Parenthetical) (Detail) - Credit Agreement [Member] - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | |
Line Of Credit Facility [Line Items] | |||
Outstanding letters of credit | [1],[2] | $ 10,446,000 | $ 11,563,000 |
Letter Of Credit | BMO Harris Bank N.A. (“BMO Harris”) [Member] | |||
Line Of Credit Facility [Line Items] | |||
Letter of credit collateralized of restricted cash | 10,400,000 | 11,600,000 | |
Outstanding letters of credit | 1,400,000 | 1,300,000 | |
Letters of credit sub limited | $ 60,000,000 | $ 95,000,000 | |
[1] | As of December 31, 2015 and 2014, outstanding letters of credit not related to the Credit Agreement totaled $1.4 million and $1.3 million, respectively, which amount is fully collateralized with restricted cash, which is in addition to the $10.4 million and $11.6 million, respectively, referenced in the preceding note. | ||
[2] | Represents letters of credit which are fully collateralized with $10.4 million and $11.6 million of restricted cash as of December 31, 2015 and 2014, respectively. |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) | Apr. 22, 2011Student | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | May. 23, 2012Member | Jan. 13, 2012Finding | Jul. 14, 2008Employee | Apr. 10, 2008Claim | Mar. 05, 2008Claim |
Loss Contingencies [Line Items] | ||||||||
Accrual for legal fees and settlements | $ | $ 2,700,000 | $ 4,400,000 | ||||||
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 | Member | 1,062 | |||||||
False Claims Act [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of former employees who filed complaint | Employee | 4 | |||||||
OIG Audit [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Potential liability related to audit | $ | $ 800,000 |
Income Taxes - Components of Pr
Income Taxes - Components of Pretax (Loss) Income from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
U.S | $ (94,438) | $ (138,826) | $ (169,345) |
Foreign | 522 | ||
PRETAX LOSS | $ (94,438) | $ (138,826) | $ (168,823) |
Income Taxes - Schedule of (Ben
Income Taxes - Schedule of (Benefits from) Provision for Income Taxes from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ (364) | $ (10,168) | $ (22,904) |
State and local | (2,279) | (346) | (4,140) |
Total current benefit | (2,643) | (10,514) | (27,044) |
Federal | (126,465) | 13,445 | 27,716 |
State and local | (18,346) | 805 | (216) |
Total deferred (benefit) provision | (144,811) | 14,250 | 27,500 |
Total (benefit from) provision for income taxes | $ (147,454) | $ 3,736 | $ 456 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Statutory U.S. Federal Income Tax Rate to Effective Income Tax Rate for Continuing Operations (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||
Statutory U.S. federal income tax rate | (35.00%) | (35.00%) | (35.00%) |
State and local income taxes | (2.70%) | (2.60%) | (4.00%) |
Nondeductible goodwill | 0.60% | 1.80% | |
Valuation allowance | 0.60% | 37.00% | 44.80% |
Valuation allowance release | (116.30%) | ||
Federal audit settlement | 2.40% | ||
Tax credits | (0.20%) | (3.20%) | |
Other | (2.50%) | 0.30% | (4.10%) |
Effective income tax rate | (156.10%) | 2.70% | 0.30% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax [Line Items] | ||||
Percentage of benefit due to valuation allowance release | 116.30% | |||
Valuation allowance release, amount | $ 109,800,000 | |||
Decrease in effective tax rate due to valuation allowance, percentage | 0.60% | 37.00% | 44.80% | |
Decrease in effective tax rate due to valuation allowance, amount | $ 51,600,000 | $ 77,000,000 | ||
Decrease in effective tax rate due to settlement of a federal income tax audit, percentage | 2.40% | |||
Increase in effective tax rate | 6.80% | |||
Unrecognized tax benefits that would impact effective tax rate | $ 6,400,000 | $ 6,400,000 | $ 8,000,000 | |
Short-term reserves | 600,000 | 600,000 | ||
Long-term reserves | 7,100,000 | 7,100,000 | ||
Interest and penalties | $ 1,986,000 | 2,820,000 | $ 3,107,000 | |
Significant change in unrecognized tax benefits, nature of event description | Due to the potential for resolution of federal and state examinations, and the expiration of various statutes of limitations | |||
Gross unrecognized tax benefits change range, minimum | 0 | $ 0 | ||
Gross unrecognized tax benefits change range, maximum | 1,000,000 | 1,000,000 | ||
Illinois edge credits available to offset future state income tax | 9,800,000 | |||
Valuation allowance released | 109,800,000 | |||
Net deferred income tax assets | 47,500,000 | 47,500,000 | ||
Domestic Country [Member] | ||||
Income Tax [Line Items] | ||||
Net operating loss carry forwards | 134,800,000 | 134,800,000 | ||
Operating loss carrybacks | 97,500,000 | 97,500,000 | ||
Tax refund due to carryback of losses | 14,000,000 | |||
Foreign Country [Member] | ||||
Income Tax [Line Items] | ||||
Foreign tax credits | 33,000,000 | 33,000,000 | ||
State and Local Jurisdiction [Member] | ||||
Income Tax [Line Items] | ||||
Net operating loss carry forwards | 319,700,000 | 319,700,000 | ||
Separate State [Member] | ||||
Income Tax [Line Items] | ||||
Net operating loss carry forwards | $ 166,000,000 | 166,000,000 | ||
Maximum [Member] | ||||
Income Tax [Line Items] | ||||
Unrecognized tax benefits, income tax penalties and interest benefit/expense recognized | $ 700,000 | $ 100,000 | $ 700,000 | |
Maximum [Member] | Illinois [Member] | ||||
Income Tax [Line Items] | ||||
Edge credits expiration year | 2,019 | |||
Maximum [Member] | Domestic Country [Member] | ||||
Income Tax [Line Items] | ||||
Net operating loss carry forwards, expiration year | 2,035 | |||
Maximum [Member] | Foreign Country [Member] | ||||
Income Tax [Line Items] | ||||
Foreign tax credits, expiration year | 2,023 | |||
Maximum [Member] | State and Local Jurisdiction [Member] | ||||
Income Tax [Line Items] | ||||
Net operating loss carry forwards, expiration year | 2,035 | |||
Minimum [Member] | Illinois [Member] | ||||
Income Tax [Line Items] | ||||
Edge credits expiration year | 2,016 | |||
Minimum [Member] | Domestic Country [Member] | ||||
Income Tax [Line Items] | ||||
Net operating loss carry forwards, expiration year | 2,034 | |||
Minimum [Member] | Foreign Country [Member] | ||||
Income Tax [Line Items] | ||||
Foreign tax credits, expiration year | 2,022 | |||
Minimum [Member] | State and Local Jurisdiction [Member] | ||||
Income Tax [Line Items] | ||||
Net operating loss carry forwards, expiration year | 2,016 |
Income Taxes - Schedule of Re75
Income Taxes - Schedule of Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Gross unrecognized tax benefits, beginning of the year | $ 9,318 | $ 13,900 | $ 24,479 |
Additions for tax positions of prior years | 19 | 129 | 3,582 |
Reductions for tax positions of prior years | (20) | ||
Additions for tax positions related to the current year | 864 | 931 | 813 |
Reductions due to settlements | (4,064) | (13,707) | |
Reductions due to lapse of applicable statute of limitations | (2,444) | (1,578) | (1,267) |
Subtotal | 7,737 | 9,318 | 13,900 |
Interest and penalties | 1,986 | 2,820 | 3,107 |
Total gross unrecognized tax benefits, end of the year | $ 9,723 | $ 12,138 | $ 17,007 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Deferred Income Tax Assets and Liabilities for Continuing Operations (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Accrued occupancy | $ 4,191 | $ 2,024 |
Deferred rent obligations | 9,281 | 13,757 |
Foreign tax credits | 32,998 | 32,998 |
Valuation allowance foreign tax credits | (32,998) | (6,264) |
Compensation and employee benefits | 12,751 | 14,405 |
Tax net operating loss carry forwards | 61,982 | 34,067 |
Valuation allowance | (8,196) | (34,067) |
Allowance for doubtful accounts | 3,967 | 3,610 |
Covenant not-to-compete | 11 | 58 |
Accrued settlements and legal | 938 | 1,631 |
Deferred compensation | 520 | 1,777 |
Accrued restructuring and severance | 6,014 | 1,072 |
Equity method for investments | 256 | 19 |
General business tax credits | 699 | 450 |
Illinois edge credits | 6,351 | 6,351 |
Valuation allowance edge credits | (6,351) | (6,351) |
Depreciation and amortization | 47,453 | 32,846 |
Other | 712 | 1,059 |
Valuation allowance deferred tax assets | (96,061) | |
Total deferred income tax assets | 140,579 | 3,381 |
Other | 2,863 | 3,381 |
Total deferred income tax liabilities | 2,863 | $ 3,381 |
Net deferred income tax assets | $ 137,716 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares issuable upon exercise of outstanding options | 2,657,723 | 3,781,964 | 3,900,435 | 2,591,887 |
Number of shares to reduce shares available to grant by upon vesting of restricted stock units | 594,305 | 598,892 | 760,183 | 1,998,224 |
Number of shares to reduce shares available to grant by upon vesting of deferred stock units | 100,000 | |||
Estimated pretax compensation expense | $ 3 | |||
Expiration period in years | 4 years | |||
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 | $ 1.4 | $ 4.8 | $ 3.6 | |
Performance unit award expenses | $ 2.1 | $ 3.5 | $ 1.1 | |
Volatility assumptions for estimating the fair value of stock options, minimum | 65.30% | |||
Volatility assumptions for estimating the fair value of stock options, maximum | 76.40% | |||
Chief Executive Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Service period in years | 2 years | |||
Restricted stock awards settled in cash exercisable in percentage | 50.00% | |||
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% | |||
Share-based Compensation Award, Tranche Three [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards settled in stock exercisable in percentage | 33.33% | |||
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 | |||
Service period in years | 4 years | |||
Employee Stock Option [Member] | 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% | |||
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 | 42,752 | 221,562 | 854,291 | |
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 | |||
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 | 6,600,000 | |||
Shares issuable upon exercise of outstanding options | 2,700,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Beginning balance of Outstanding, Options | 3,781,964 | 3,900,435 | 2,591,887 |
Granted, Options | 848,705 | 746,318 | 1,934,005 |
Exercised, Options | (303,035) | (225,000) | (1,275) |
Forfeited, Options | (1,278,150) | (299,577) | (261,366) |
Cancelled, Options | (391,761) | (340,212) | (362,816) |
Ending balance of Outstanding, Options | 2,657,723 | 3,781,964 | 3,900,435 |
Exercisable, Options | 1,819,466 | ||
Beginning balance of Outstanding, Weighted Average Exercise Price | $ 12.88 | $ 15.15 | $ 25.96 |
Granted, Weighted Average Exercise Price | 4.83 | 6.89 | 2.58 |
Exercised, Weighted Average Exercise Price | 2.73 | 2.72 | 3.08 |
Forfeited, Weighted Average Exercise Price | 4.60 | 4.94 | 5.19 |
Cancelled, Weighted Average Exercise Price | 20.87 | 39.49 | 31.60 |
Ending balance of Outstanding, Weighted Average Exercise Price | 14.27 | $ 12.88 | $ 15.15 |
Exercisable, Weighted Average Exercise Price | $ 18.71 | ||
Outstanding, Weighted Average Remaining Contractual Term | 4 years 11 months 9 days | ||
Exercisable, Weighted Average Remaining Contractual Term | 3 years 1 month 6 days | ||
Exercised, Aggregate Intrinsic Value | $ 620 | $ 721 | $ 3 |
Outstanding, Aggregate Intrinsic Value | 254 | ||
Exercisable, Aggregate Intrinsic Value | $ 154 |
Share Based Compensation - Sche
Share Based Compensation - Schedule of Information with Respect to Outstanding and Exercisable Stock Options (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Number of Options Outstanding | 2,657,723 | 3,781,964 | 3,900,435 | 2,591,887 |
Options Outstanding, Weighted Average Exercise Price | $ 14.27 | $ 12.88 | $ 15.15 | $ 25.96 |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 4 years 11 months 9 days | |||
Options Exercisable, Number Exercisable | 1,819,466 | |||
Options Exercisable, Weighted Average Exercise Price | $ 18.71 | |||
Range of Exercise Prices $2.65 - $2.82 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | 2.65 | |||
Range of Exercise Prices, Maximum | $ 2.82 | |||
Options Outstanding, Number of Options Outstanding | 285,416 | |||
Options Outstanding, Weighted Average Exercise Price | $ 2.74 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 7 years 1 month 17 days | |||
Options Exercisable, Number Exercisable | 176,708 | |||
Options Exercisable, Weighted Average Exercise Price | $ 2.76 | |||
Range of Exercise Prices $3.93 - $4.15 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | 3.93 | |||
Range of Exercise Prices, Maximum | $ 4.15 | |||
Options Outstanding, Number of Options Outstanding | 467,364 | |||
Options Outstanding, Weighted Average Exercise Price | $ 4.06 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 9 years 6 months 22 days | |||
Range of Exercise Prices $5.00 - $6.51 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | $ 5 | |||
Range of Exercise Prices, Maximum | $ 6.51 | |||
Options Outstanding, Number of Options Outstanding | 269,474 | |||
Options Outstanding, Weighted Average Exercise Price | $ 6.04 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 7 years 10 months 13 days | |||
Options Exercisable, Number Exercisable | 101,701 | |||
Options Exercisable, Weighted Average Exercise Price | $ 6.43 | |||
Range of Exercise Prices $7.33 - $7.33 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | 7.33 | |||
Range of Exercise Prices, Maximum | $ 7.33 | |||
Options Outstanding, Number of Options Outstanding | 151,230 | |||
Options Outstanding, Weighted Average Exercise Price | $ 7.33 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 6 years 4 months 13 days | |||
Options Exercisable, Number Exercisable | 62,874 | |||
Options Exercisable, Weighted Average Exercise Price | $ 7.33 | |||
Range of Exercise Prices $8.63 - $8.63 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | 8.63 | |||
Range of Exercise Prices, Maximum | $ 8.63 | |||
Options Outstanding, Number of Options Outstanding | 291,563 | |||
Options Outstanding, Weighted Average Exercise Price | $ 8.63 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 1 year 7 months 21 days | |||
Options Exercisable, Number Exercisable | 285,507 | |||
Options Exercisable, Weighted Average Exercise Price | $ 8.63 | |||
Range of Exercise Prices $13.32 - $21.80 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | 13.32 | |||
Range of Exercise Prices, Maximum | $ 21.80 | |||
Options Outstanding, Number of Options Outstanding | 335,112 | |||
Options Outstanding, Weighted Average Exercise Price | $ 17.66 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 2 years 7 months 2 days | |||
Options Exercisable, Number Exercisable | 335,112 | |||
Options Exercisable, Weighted Average Exercise Price | $ 17.66 | |||
Range of Exercise Prices $22.04 - $22.13 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | 22.04 | |||
Range of Exercise Prices, Maximum | $ 22.13 | |||
Options Outstanding, Number of Options Outstanding | 276,000 | |||
Options Outstanding, Weighted Average Exercise Price | $ 22.08 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 3 years 6 months 7 days | |||
Options Exercisable, Number Exercisable | 276,000 | |||
Options Exercisable, Weighted Average Exercise Price | $ 22.08 | |||
Range of Exercise Prices $26.15 - $30.67 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | 26.15 | |||
Range of Exercise Prices, Maximum | $ 30.67 | |||
Options Outstanding, Number of Options Outstanding | 305,564 | |||
Options Outstanding, Weighted Average Exercise Price | $ 29.50 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 3 years 3 months 7 days | |||
Options Exercisable, Number Exercisable | 305,564 | |||
Options Exercisable, Weighted Average Exercise Price | $ 29.50 | |||
Range of Exercise Prices $30.80 - $33.96 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | 30.80 | |||
Range of Exercise Prices, Maximum | $ 33.96 | |||
Options Outstanding, Number of Options Outstanding | 258,000 | |||
Options Outstanding, Weighted Average Exercise Price | $ 32.30 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 9 months 29 days | |||
Options Exercisable, Number Exercisable | 258,000 | |||
Options Exercisable, Weighted Average Exercise Price | $ 32.30 | |||
Range of Exercise Prices $34.86 - $34.86 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | 34.86 | |||
Range of Exercise Prices, Maximum | $ 34.86 | |||
Options Outstanding, Number of Options Outstanding | 18,000 | |||
Options Outstanding, Weighted Average Exercise Price | $ 34.86 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 1 month 13 days | |||
Options Exercisable, Number Exercisable | 18,000 | |||
Options Exercisable, Weighted Average Exercise Price | $ 34.86 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Information with Respect to all Outstanding Restricted Stock (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance of Outstanding Shares | 598,892 | 760,183 | 1,998,224 |
Granted, Shares | 645,332 | 318,940 | 43,313 |
Vested, Shares | (237,578) | (271,778) | (515,066) |
Forfeited, Shares | (412,341) | (208,453) | (766,288) |
Ending balance of Outstanding Shares | 594,305 | 598,892 | 760,183 |
Restricted Stock Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance of Outstanding Shares | 42,752 | 221,562 | 854,291 |
Vested, Shares | (39,969) | (136,133) | (208,461) |
Forfeited, Shares | (2,783) | (42,677) | (424,268) |
Ending balance of Outstanding Shares | 42,752 | 221,562 | |
Beginning balance of Outstanding, Weighted Average Grant-Date Fair Value Per Share | $ 21.63 | $ 22.19 | $ 24.74 |
Vested, Weighted Average Grant-Date Fair Value Per Share | 21.62 | 22.94 | 23.10 |
Forfeited, Weighted Average Grant-Date Fair Value Per Share | $ 21.80 | 20.87 | 27.01 |
Ending balance of Outstanding, Weighted Average Grant-Date Fair Value Per Share | $ 21.63 | $ 22.19 | |
Restricted Stock Units RSU [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance of Outstanding Shares | 556,140 | 538,621 | 1,143,933 |
Granted, Shares | 645,332 | 318,940 | 43,313 |
Vested, Shares | (197,609) | (135,645) | (306,605) |
Forfeited, Shares | (409,558) | (165,776) | (342,020) |
Ending balance of Outstanding Shares | 594,305 | 556,140 | 538,621 |
Beginning balance of Outstanding, Weighted Average Grant-Date Fair Value Per Share | $ 7.35 | $ 8.30 | $ 8.27 |
Granted, Weighted Average Grant-Date Fair Value Per Share | 5.62 | 6.57 | 2.72 |
Vested, Weighted Average Grant-Date Fair Value Per Share | 7.94 | 8.61 | 8.60 |
Forfeited, Weighted Average Grant-Date Fair Value Per Share | 6.33 | 7.90 | 7.22 |
Ending balance of Outstanding, Weighted Average Grant-Date Fair Value Per Share | $ 5.98 | $ 7.35 | $ 8.30 |
Share-Based Compensation - Sc81
Share-Based Compensation - Schedule of Deferred Stock Units to be Settled in Shares (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Beginning balance of Outstanding Shares | 116,952 | ||
Granted, Shares | 2,928 | 116,952 | |
Vested, Shares | [1] | (19,492) | |
Forfeited, Shares | (9,746) | ||
Ending balance of Outstanding Shares | 90,642 | 116,952 | |
Beginning balance of Weighted Average Grant-Date Fair Value Per Unit | $ 4.39 | ||
Granted, Weighted Average Grant-Date Fair Value Per Unit | 5.73 | $ 4.39 | |
Vested, Weighted Average Grant-Date Fair Value Per Unit | [1] | 4.39 | |
Forfeited, Weighted Average Grant-Date Fair Value Per Unit | 4.39 | ||
Ending balance of Weighted Average Grant-Date Fair Value Per Unit | $ 4.43 | $ 4.39 | |
[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 - Sc82
Share-Based Compensation - Schedule of Deferred Stock Units to be Settled in Shares (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2015shares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Vested but unreleased awards | 300 |
Share-Based Compensation - Sc83
Share-Based Compensation - Schedule of Restricted Stock Units to be Settled in Cash (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Beginning balance of Outstanding, Stock Units to be Settled in Cash | 1,842,455 | 2,288,915 | |
Stock Units to be Settled in Cash, Granted | 1,036,720 | 981,136 | 2,938,283 |
Stock Units to be Settled in Cash, Vested | (444,499) | (755,656) | |
Stock Units to be Settled in Cash, Forfeited | (696,060) | (671,940) | (649,368) |
Ending balance of Outstanding, Stock Units to be Settled in Cash | 1,738,616 | 1,842,455 | 2,288,915 |
Share-Based Compensation - Su84
Share-Based Compensation - Summary of Total Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation expense | $ 4,740 | $ 9,046 | $ 10,248 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation expense | 761 | 1,372 | 2,308 |
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 | 2,532 | 2,865 | 4,339 |
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 | $ 1,447 | 4,514 | 3,452 |
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 | $ 295 | $ 149 |
Share-Based Compensation - Su85
Share-Based Compensation - Summary of Total Stock Based Compensation Expense (Parenthetical) (Detail) - Former Chief Executive Officer [Member] $ in Millions | 12 Months Ended |
Dec. 31, 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 |
Share Based Compensation - Sc86
Share Based Compensation - Schedule of Fair Value of Stock Option Award Granted Estimated on Date of Grant Using the Black-Scholes-Merton Option Pricing Model (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Risk-free interest rate | 1.60% | 1.40% | 1.10% |
Weighted average volatility | 73.20% | 73.00% | 64.60% |
Expected life (in years) | 5 years 1 month 6 days | 4 years 3 months 18 days | 5 years 7 months 6 days |
Weighted average grant date fair value per share of options granted | $ 2.86 | $ 3.89 | $ 1.47 |
Weighted Average Common Share87
Weighted Average Common Shares - Summary of Weighted Average Numbers of Common Shares Used to Compute Basic and Diluted Net Income (Loss) Per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | [1] | Dec. 31, 2013 | [1] | |
Earnings Per Share [Abstract] | |||||
Basic | 67,860 | 67,173 | 66,738 | ||
Common stock equivalents | 468 | ||||
Diluted common shares outstanding | 68,328 | 67,173 | 66,738 | ||
[1] | Due to the fact that we reported a loss from continuing operations for the years ended December 31, 2014 and 2013, potential common stock equivalents were excluded from the diluted common shares outstanding calculation. Per FASB ASC Topic 260 – Earnings per Share, an entity that reports discontinued operations shall use income or loss from continuing operations as the benchmark for calculating diluted common shares outstanding, and as such, we have zero common stock equivalents since these shares would have an anti-dilutive effect on our net loss per share for the years ended December 31, 2014 and 2013. |
Weighted Average Common Share88
Weighted Average Common Shares - Summary of Weighted Average Numbers of Common Shares Used to Compute Basic and Diluted Net Income (Loss) Per Share (Parenthetical) (Detail) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive awards excluded from computations of diluted earnings per share | 0 | 0 |
Weighted Average Common Share89
Weighted Average Common Shares - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive awards excluded from computations of diluted earnings per share | 0 | 0 | |
Weighted average number of shares issued | 0.1 | 0.1 | 0.4 |
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive awards excluded from computations of diluted earnings per share | 2.4 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of amount vested to defined contribution retirement savings plan | 100.00% | ||
Expense for continuing and discontinued operations under employee benefit plan | $ 3,600,000 | $ 3,800,000 | $ 4,600,000 |
Percentage of fair market value of common stock | 95.00% | ||
Percentage of shares limited to an employee under employee stock purchase plan | 10.00% | ||
Maximum salary of employee allowed to purchase shares under employee stock purchase plan | $ 25,000 | ||
Common stock issued under employee stock purchase plan | 3,200,000 | ||
0-2% Contribution [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of amount contributed to defined contribution retirement savings plan | 50.00% | 50.00% | 50.00% |
2-4% Contribution [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of amount contributed to defined contribution retirement savings plan | 25.00% | 25.00% | 25.00% |
Minimum number of hours worked | 1000 hours | ||
Employee Stock Purchase Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Authorized to grant the common stock under the employee stock purchase plan | 4,000,000 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | Dec. 31, 2015 |
CTU [Member] | |
Segment Reporting Information [Line Items] | |
Students enrolled expressed as percentage of enrollment | 49.00% |
AIU [Member] | |
Segment Reporting Information [Line Items] | |
Students enrolled expressed as percentage of enrollment | 25.00% |
Culinary Arts [Member] | |
Segment Reporting Information [Line Items] | |
Students enrolled expressed as percentage of enrollment | 18.00% |
Transitional Group [Member] | |
Segment Reporting Information [Line Items] | |
Students enrolled expressed as percentage of enrollment | 8.00% |
Fully Online [Member] | CTU [Member] | |
Segment Reporting Information [Line Items] | |
Percentage of enrollment | 92.00% |
Fully Online [Member] | AIU [Member] | |
Segment Reporting Information [Line Items] | |
Percentage of enrollment | 92.00% |
Segment Reporting - Summary Fin
Segment Reporting - Summary Financial Information by Reporting Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | [2] | Jun. 30, 2015 | [3] | Mar. 31, 2015 | [4] | Dec. 31, 2014 | Sep. 30, 2014 | [6] | Jun. 30, 2014 | [7] | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenue | $ 199,947 | [1] | $ 203,484 | $ 216,828 | $ 227,014 | $ 217,501 | [5] | $ 227,324 | $ 228,738 | $ 240,401 | $ 847,273 | $ 913,964 | $ 1,017,230 | |||||
Operating (Loss) Income | (3,929) | [1] | $ (43,989) | $ (19,892) | $ (24,358) | (23,920) | [5] | $ (44,334) | $ (31,023) | $ (39,995) | (92,168) | (139,272) | (162,059) | |||||
Depreciation and amortization | 24,938 | 53,382 | 62,237 | |||||||||||||||
Capital Expenditures | 11,695 | 13,156 | 19,636 | |||||||||||||||
Total Assets | 610,915 | 573,534 | 610,915 | 573,534 | ||||||||||||||
University Group [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenue | 549,864 | 535,469 | 577,692 | |||||||||||||||
Operating (Loss) Income | 93,016 | 60,080 | 59,522 | |||||||||||||||
Depreciation and amortization | 3,917 | 4,956 | 5,897 | |||||||||||||||
Capital Expenditures | 3,490 | 1,544 | 280 | |||||||||||||||
Total Assets | 129,664 | 125,213 | 129,664 | 125,213 | ||||||||||||||
Corporate and Other [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenue | 157 | 230 | ||||||||||||||||
Operating (Loss) Income | (27,267) | (21,169) | (33,600) | |||||||||||||||
Depreciation and amortization | 11,173 | 17,455 | 22,574 | |||||||||||||||
Capital Expenditures | 4,873 | 4,545 | 6,272 | |||||||||||||||
Total Assets | 372,405 | 332,672 | 372,405 | 332,672 | ||||||||||||||
Subtotal [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenue | 550,021 | 535,699 | 577,692 | |||||||||||||||
Operating (Loss) Income | 65,749 | 38,911 | 25,922 | |||||||||||||||
Depreciation and amortization | 15,090 | 22,411 | 28,471 | |||||||||||||||
Capital Expenditures | 8,363 | 6,089 | 6,552 | |||||||||||||||
Total Assets | 502,069 | 457,885 | 502,069 | 457,885 | ||||||||||||||
Culinary Arts [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenue | 170,190 | 172,606 | 177,549 | |||||||||||||||
Operating (Loss) Income | (57,577) | (66,556) | (81,218) | |||||||||||||||
Depreciation and amortization | 1 | 17,363 | 17,082 | |||||||||||||||
Capital Expenditures | 2,352 | 2,292 | 705 | |||||||||||||||
Total Assets | 71,197 | 76,846 | 71,197 | 76,846 | ||||||||||||||
Transitional Group [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenue | 127,062 | 205,659 | 261,989 | |||||||||||||||
Operating (Loss) Income | (100,340) | (111,627) | (106,763) | |||||||||||||||
Depreciation and amortization | 9,847 | 13,608 | 16,684 | |||||||||||||||
Capital Expenditures | 980 | 4,775 | 6,251 | |||||||||||||||
Total Assets | 28,584 | 37,355 | 28,584 | 37,355 | ||||||||||||||
CTU [Member] | University Group [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenue | 348,215 | 336,573 | 346,086 | |||||||||||||||
Operating (Loss) Income | 87,496 | 69,492 | 65,078 | |||||||||||||||
Depreciation and amortization | 2,281 | 2,627 | 2,828 | |||||||||||||||
Capital Expenditures | 1,084 | 628 | 158 | |||||||||||||||
Total Assets | 76,577 | 73,458 | 76,577 | 73,458 | ||||||||||||||
AIU [Member] | University Group [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenue | 201,649 | 198,896 | 231,606 | |||||||||||||||
Operating (Loss) Income | 5,520 | (9,412) | (5,556) | |||||||||||||||
Depreciation and amortization | 1,636 | 2,329 | 3,069 | |||||||||||||||
Capital Expenditures | 2,406 | 916 | 122 | |||||||||||||||
Total Assets | 53,087 | 51,755 | 53,087 | 51,755 | ||||||||||||||
Discontinued Operations [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Capital Expenditures | $ 6,128 | |||||||||||||||||
Total Assets | $ 9,065 | $ 1,448 | $ 9,065 | $ 1,448 | ||||||||||||||
[1] | Fourth quarter of 2015 net income included $9.7 million of impairment charges, of which $9.0 million was related to Culinary Arts. Furthermore, fourth quarter of 2015 net income included a $109.8 million benefit related to the partial release of our valuation allowance recorded against our deferred tax assets. | |||||||||||||||||
[2] | Third quarter of 2015 net losses included $33.4 million of impairment charges related to Culinary Arts. | |||||||||||||||||
[3] | Second quarter of 2015 net loss included $9.7 million of impairment charges related to Culinary Arts and $1.7 million of impairment charges related to the Transitional Group. | |||||||||||||||||
[4] | First quarter of 2015 net loss included $6.0 million of impairment charges related to the Transitional Group. | |||||||||||||||||
[5] | Fourth quarter of 2014 net loss included $14.2 million of trade name and asset impairment charges, of which $10.3 million was related to Culinary Arts. Additionally, the fourth quarter of 2014 included a decrease of $12.3 million of revenue, a decrease of $9.9 million of bad debt expense for a cumulative adjustment related to revenue recognition for withdrawn students. | |||||||||||||||||
[6] | Third quarter of 2014 net loss included $3.0 million of trade name impairments, $11.5 million of asset impairment charges and $8.6 million of income related to an insurance recovery. | |||||||||||||||||
[7] | Second quarter of 2014 net loss included $7.4 million of trade name impairment charges related to Culinary Arts. |
Segment Reporting - Summary F93
Segment Reporting - Summary Financial Information by Reporting Segment (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | ||||||||
Asset impairment charge | $ 9,700 | $ 11,500 | $ 60,515 | $ 36,141 | $ 21,647 | |||
Income from insurance recovery | $ 8,600 | |||||||
Culinary Arts [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Asset impairment charge | $ 9,000 | $ 33,400 | $ 9,700 | 35,100 | 10,300 | |||
Trade name and asset impairment charges | 17,000 | 8,900 | 13,000 | |||||
Settlement of a legal matter | 15,500 | |||||||
Corporate and Other [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Income from insurance recovery | 8,600 | |||||||
Transitional Group [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Asset impairment charge | $ 1,700 | $ 6,000 | 6,100 | 14,500 | ||||
Trade name and asset impairment charges | $ 1,800 | $ 2,200 | 7,700 | |||||
Settlement of a legal matter | $ 10,500 |
Quarterly Financial Summary (94
Quarterly Financial Summary (Unaudited) - Schedule of Quarterly Financial Summary (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2015 | [1] | Sep. 30, 2015 | [2] | Jun. 30, 2015 | [3] | Mar. 31, 2015 | [4] | Dec. 31, 2014 | [5] | Sep. 30, 2014 | [6] | Jun. 30, 2014 | [7] | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Revenue | $ 199,947 | $ 203,484 | $ 216,828 | $ 227,014 | $ 217,501 | $ 227,324 | $ 228,738 | $ 240,401 | $ 847,273 | $ 913,964 | $ 1,017,230 | |||||||||
Operating loss | (3,929) | (43,989) | (19,892) | (24,358) | (23,920) | (44,334) | (31,023) | (39,995) | (92,168) | (139,272) | (162,059) | |||||||||
Net (loss) income | $ 142,724 | $ (45,235) | $ (20,723) | $ (24,881) | $ (25,488) | $ (47,968) | $ (46,564) | $ (58,143) | $ 51,885 | $ (178,163) | $ (164,263) | |||||||||
Net (loss) income per share Basic | $ 2.10 | [8] | $ (0.67) | [8] | $ (0.31) | [8] | $ (0.37) | [8] | $ 0.76 | [8] | $ (2.65) | $ (2.46) | ||||||||
Net (loss) income per share Diluted | $ 2.08 | [8] | $ (0.67) | [8] | $ (0.31) | [8] | $ (0.37) | [8] | $ 0.76 | [8] | (2.65) | $ (2.46) | ||||||||
Net loss per share Basic and Diluted | [8] | $ (0.38) | $ (0.71) | $ (0.69) | $ (0.87) | $ (2.65) | ||||||||||||||
[1] | Fourth quarter of 2015 net income included $9.7 million of impairment charges, of which $9.0 million was related to Culinary Arts. Furthermore, fourth quarter of 2015 net income included a $109.8 million benefit related to the partial release of our valuation allowance recorded against our deferred tax assets. | |||||||||||||||||||
[2] | Third quarter of 2015 net losses included $33.4 million of impairment charges related to Culinary Arts. | |||||||||||||||||||
[3] | Second quarter of 2015 net loss included $9.7 million of impairment charges related to Culinary Arts and $1.7 million of impairment charges related to the Transitional Group. | |||||||||||||||||||
[4] | First quarter of 2015 net loss included $6.0 million of impairment charges related to the Transitional Group. | |||||||||||||||||||
[5] | Fourth quarter of 2014 net loss included $14.2 million of trade name and asset impairment charges, of which $10.3 million was related to Culinary Arts. Additionally, the fourth quarter of 2014 included a decrease of $12.3 million of revenue, a decrease of $9.9 million of bad debt expense for a cumulative adjustment related to revenue recognition for withdrawn students. | |||||||||||||||||||
[6] | Third quarter of 2014 net loss included $3.0 million of trade name impairments, $11.5 million of asset impairment charges and $8.6 million of income related to an insurance recovery. | |||||||||||||||||||
[7] | Second quarter of 2014 net loss included $7.4 million of trade name impairment charges related to Culinary Arts. | |||||||||||||||||||
[8] | Basic and diluted earnings per share are calculated independently for each of the quarters presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree with the annual earnings per share amount for the corresponding year. |
Quarterly Financial Summary (95
Quarterly Financial Summary (Unaudited) - Schedule of Quarterly Financial Summary (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | |
Schedule Of Quarterly Financial Summary [Line Items] | ||||||||||
Asset impairment charges | $ 9,700 | $ 11,500 | $ 60,515 | $ 36,141 | $ 21,647 | |||||
Valuation allowances against deferred tax assets | 109,800 | 109,800 | ||||||||
Trade name impairment charges | $ 14,200 | 3,000 | 14,200 | |||||||
Income from insurance recovery | $ 8,600 | |||||||||
Decrease in revenue | 12,300 | |||||||||
Expense for bad debts | 9,900 | |||||||||
Transitional Group [Member] | ||||||||||
Schedule Of Quarterly Financial Summary [Line Items] | ||||||||||
Asset impairment charges | $ 1,700 | $ 6,000 | 6,100 | 14,500 | ||||||
Culinary Arts [Member] | ||||||||||
Schedule Of Quarterly Financial Summary [Line Items] | ||||||||||
Asset impairment charges | $ 9,000 | $ 33,400 | $ 9,700 | $ 35,100 | 10,300 | |||||
Trade name impairment charges | $ 10,300 | $ 10,300 | $ 7,400 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Valuation Allowance for Deferred Tax Assets [Member] | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Valuation allowance, Beginning balance | [1] | $ 150,384 | $ 82,876 | $ 6,057 |
Valuation allowance, Additions/Charges to Expense | [1] | (109,805) | 71,826 | 80,536 |
Valuation allowance, Deductions/ Other | [1] | 6,966 | (4,318) | (3,717) |
Valuation allowance, Ending balance | [1] | 47,545 | 150,384 | 82,876 |
Valuation Allowance for Accounts Receivable [Member] | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Valuation allowance, Beginning balance | 19,097 | 27,504 | 37,938 | |
Valuation allowance, Additions/Charges to Expense | 22,212 | 14,864 | 25,939 | |
Valuation allowance, Deductions/ Other | (21,080) | (23,271) | (36,373) | |
Valuation allowance, Ending balance | $ 20,229 | $ 19,097 | $ 27,504 | |
[1] | Amounts include both continuing and discontinued operations gross deferred tax balances. |