Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'BRIDGEPOINT EDUCATION INC | ' |
Entity Central Index Key | '0001305323 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 54,576,091 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $431,762 | $255,965 |
Investments | 35,221 | 136,967 |
Accounts receivable, net | 51,123 | 67,927 |
Deferred income taxes | 11,033 | 10,936 |
Prepaid expenses and other current assets | 16,057 | 19,810 |
Total current assets | 545,196 | 491,605 |
Property and equipment, net | 94,570 | 95,966 |
Investments | 86,279 | 121,738 |
Student loans receivable, net | 11,936 | 15,143 |
Goodwill and intangibles, net | 11,974 | 10,739 |
Deferred income taxes | 13,284 | 13,266 |
Other long-term assets | 1,951 | 2,330 |
Total assets | 765,190 | 750,787 |
Current liabilities: | ' | ' |
Accounts payable | 9,322 | 4,588 |
Accrued liabilities | 43,567 | 44,640 |
Deferred revenue and student deposits | 126,447 | 175,057 |
Total current liabilities | 179,336 | 224,285 |
Rent liability | 26,294 | 25,173 |
Other long-term liabilities | 8,745 | 9,759 |
Total liabilities | 214,375 | 259,217 |
Commitments and contingencies (see Note 12) | ' | ' |
Preferred stock, $0.01 par value: | ' | ' |
20,000 shares authorized; zero shares issued and outstanding at both September 30, 2013, and December 31, 2012 | 0 | 0 |
Common stock, $0.01 par value: | ' | ' |
300,000 shares authorized; 61,759 issued and 54,452 outstanding at September 30, 2013; 61,406 issued and 54,099 outstanding at December 31, 2012 | 618 | 614 |
Additional paid-in capital | 163,674 | 151,709 |
Retained earnings | 522,068 | 474,598 |
Accumulated other comprehensive income | 28 | 222 |
Treasury stock, 7,307 shares at cost at both September 30, 2013, and December 31, 2012 | -135,573 | -135,573 |
Total stockholders' equity | 550,815 | 491,570 |
Total liabilities and stockholders' equity | $765,190 | $750,787 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets Parenthetical (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Stockholders' equity: | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
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 | 61,759,000 | 61,406,000 |
Common stock, shares outstanding | 54,452,000 | 54,099,000 |
Treasury stock, shares at cost | 7,307,000 | 7,307,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Revenue | $185,612 | $252,076 | $605,170 | $758,815 | ||
Costs and expenses: | ' | ' | ' | ' | ||
Instructional costs and services | 92,204 | 90,986 | [1] | 299,895 | 260,489 | [1] |
Admissions advisory and marketing | 64,507 | 96,734 | 179,632 | 273,970 | ||
General and administrative | 16,050 | 17,247 | 53,344 | 57,836 | ||
Total costs and expenses | 172,761 | 204,967 | 532,871 | 592,295 | ||
Operating income | 12,851 | 47,109 | 72,299 | 166,520 | ||
Other income, net | 787 | 955 | 2,636 | 2,492 | ||
Income before income taxes | 13,638 | 48,064 | 74,935 | 169,012 | ||
Income tax expense | 3,503 | 18,244 | 27,465 | 63,963 | ||
Net income | $10,135 | $29,820 | $47,470 | $105,049 | ||
Earnings per share: | ' | ' | ' | ' | ||
Basic | $0.19 | $0.56 | $0.88 | $2 | ||
Diluted | $0.18 | $0.53 | $0.85 | $1.87 | ||
Weighted average number of common shares outstanding used in computing earnings per share: | ' | ' | ' | ' | ||
Basic | 54,336 | 53,184 | 54,201 | 52,576 | ||
Diluted | 56,431 | 55,756 | 55,795 | 56,089 | ||
[1] | The amounts in the bas reportedb column for instructional costs and services above reflect reclassified amounts for each respective period. For additional information, see also Note 3, bReclassification.b |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income | $10,135 | $29,820 | $47,470 | $105,049 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Unrealized gains (losses) on investments | 10 | 308 | -194 | 945 |
Comprehensive income | $10,145 | $30,128 | $47,276 | $105,994 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock |
In Thousands, unless otherwise specified | ||||||
Balance at Dec. 31, 2012 | $491,570 | $614 | $151,709 | $474,598 | $222 | ($135,573) |
Balance, shares at Dec. 31, 2012 | ' | 61,406 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 10,704 | ' | 10,704 | ' | ' | ' |
Exercise of stock options, shares | ' | 169 | ' | ' | ' | ' |
Exercise of stock options | 1,250 | 2 | 1,248 | ' | ' | ' |
Excess tax benefit of option exercises and restricted stock, net of tax shortfall | 483 | ' | 483 | ' | ' | ' |
Stock issued under employee stock purchase plan, shares | ' | 62 | ' | ' | ' | ' |
Stock issued under employee stock purchase plan | 604 | 1 | 603 | ' | ' | ' |
Stock issued under restricted stock plan, shares | ' | 115 | ' | ' | ' | ' |
Stock issued under restricted stock plan | -1,080 | 1 | -1,081 | ' | ' | ' |
Exercise of warrants, shares | ' | 7 | ' | ' | ' | ' |
Exercise of warrants | 8 | 0 | 8 | ' | ' | ' |
Net income | 47,470 | ' | ' | 47,470 | ' | ' |
Unrealized losses on investments, net of tax | -194 | ' | ' | ' | -194 | ' |
Balance at Sep. 30, 2013 | $550,815 | $618 | $163,674 | $522,068 | $28 | ($135,573) |
Balance, shares at Sep. 30, 2013 | ' | 61,759 | ' | ' | ' | ' |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities | ' | ' |
Net income | $47,470 | $105,049 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Provision for bad debts | 53,649 | 52,418 |
Depreciation and amortization | 15,861 | 12,761 |
Amortization of premium/discount | 3,596 | 5,384 |
Stock-based compensation | 10,704 | 9,915 |
Excess tax benefit of option exercises | -863 | -8,446 |
Loss on impairment of student loans receivable | 790 | 0 |
Net realized gain on sale of securities | -62 | 0 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -36,056 | -90,188 |
Prepaid expenses and other current assets | 3,395 | -3,982 |
Student loans receivable | 218 | -5,730 |
Other long-term assets | 379 | 1,971 |
Accounts payable and accrued liabilities | 3,699 | 19,363 |
Deferred revenue and student deposits | -48,610 | -13,191 |
Other liabilities | 107 | 8,264 |
Net cash provided by operating activities | 54,277 | 93,588 |
Cash flows from investing activities | ' | ' |
Capital expenditures | -11,737 | -20,803 |
Purchases of investments | -26,724 | -173,512 |
Restricted cash | 0 | 25 |
Capitalized curriculum development costs | -3,518 | -4,130 |
Sales and maturities of investments | 161,854 | 151,511 |
Net cash provided by (used in) investing activities | 119,875 | -46,909 |
Cash flows from financing activities | ' | ' |
Proceeds from exercise of stock options | 1,250 | 2,240 |
Tax withholdings related to net issuance of stock options | 0 | -10,418 |
Excess tax benefit of option exercises | 863 | 8,446 |
Proceeds from the issuance of stock under employee stock purchase plan | 604 | 707 |
Proceeds from the exercise of warrants | 8 | 2 |
Issuance of restricted stock | -1,080 | 0 |
Net cash provided by financing activities | 1,645 | 977 |
Net increase in cash and cash equivalents | 175,797 | 47,656 |
Cash and cash equivalents at beginning of period | 255,965 | 133,921 |
Cash and cash equivalents at end of period | 431,762 | 181,577 |
Supplemental disclosure of non-cash transactions: | ' | ' |
Purchase of equipment included in accounts payable and accrued liabilities | $955 | $2,076 |
Nature_of_Business
Nature of Business | 9 Months Ended |
Sep. 30, 2013 | |
Nature of Business [Abstract] | ' |
Nature of Business | ' |
Nature of Business | |
Bridgepoint Education, Inc. (together with its subsidiaries, the “Company”), was incorporated in 1999 and is a provider of postsecondary education services. Its wholly-owned subsidiaries, Ashford University and University of the Rockies, are academic institutions that offer associate's, bachelor's, master's and doctoral programs online, as well as at their traditional campuses located in Iowa and Colorado, respectively. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | ||||||||||||||||||||||||||||||||
Principles of Consolidation | ||||||||||||||||||||||||||||||||
The condensed consolidated financial statements include the accounts of Bridgepoint Education, Inc. and its wholly-owned subsidiaries. Intercompany transactions have been eliminated in consolidation. | ||||||||||||||||||||||||||||||||
Unaudited Interim Financial Information | ||||||||||||||||||||||||||||||||
The condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012, which was filed with the Securities and Exchange Commission (“SEC”) on March 12, 2013, and amended on May 17, 2013. In the opinion of management, these financial statements include all adjustments (consisting of normal recurring adjustments) considered necessary to present a fair statement of the Company's condensed consolidated financial position, results of operations and cash flows as of and for the periods presented. | ||||||||||||||||||||||||||||||||
Operating results for any interim period are not necessarily indicative of the results that may be expected for the full year. The year-end condensed consolidated balance sheet data were derived from audited financial statements, but do not include all disclosures required by GAAP for complete annual financial statements. | ||||||||||||||||||||||||||||||||
Use of Estimates | ||||||||||||||||||||||||||||||||
The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements. Actual results could differ from those estimates. | ||||||||||||||||||||||||||||||||
Revision of Previously Issued Financial Statements | ||||||||||||||||||||||||||||||||
During the first quarter of 2013, the Company identified a $7.2 million out of period adjustment for bad debt expense related to the aging of the Company's accounts receivable, which should have been recognized during the year ended December 31, 2012. The Company evaluated the cumulative impact of this item on prior periods and determined to revise its previously issued financial statements to reflect the impact of this correction. Prior periods have been revised in connection with the filing of the Company's Form 10-Q's in 2013. | ||||||||||||||||||||||||||||||||
After the revisions described above, the Company's condensed consolidated financial statements are properly stated. The table below presents the impact of this revision on the Company's consolidated balance sheet data as of December 31, 2012, the consolidated statement of income data and consolidated cash flow data for the year ended December 31, 2012, as well as the impact on the quarterly periods during the year ended December 31, 2012. There was no impact to the cash flows from operating activities in any of the periods presented due to the revision. The following table is presented in thousands, except per share data: | ||||||||||||||||||||||||||||||||
As Reported | As Revised | As Reported | As Revised | As Reported | As Revised | As Reported | As Revised | |||||||||||||||||||||||||
31-Mar-12 | 30-Jun-12 | 30-Sep-12 | 31-Dec-12 | |||||||||||||||||||||||||||||
Consolidated balance sheet data: | ||||||||||||||||||||||||||||||||
Accounts receivable, net | $ | 92,853 | $ | 91,129 | $ | 99,617 | $ | 91,139 | $ | 111,010 | $ | 99,919 | $ | 75,177 | $ | 67,927 | ||||||||||||||||
Deferred income taxes | N/A | N/A | N/A | N/A | N/A | N/A | $ | 8,228 | $ | 10,936 | ||||||||||||||||||||||
Total current assets | $ | 442,893 | $ | 441,169 | $ | 468,242 | $ | 459,764 | $ | 463,606 | $ | 452,515 | $ | 496,147 | $ | 491,605 | ||||||||||||||||
Total assets | $ | 684,171 | $ | 682,447 | $ | 731,597 | $ | 723,119 | $ | 747,190 | $ | 736,099 | $ | 755,329 | $ | 750,787 | ||||||||||||||||
Accrued liabilities | $ | 67,409 | $ | 66,755 | $ | 57,858 | $ | 54,650 | $ | 56,609 | $ | 52,313 | N/A | N/A | ||||||||||||||||||
Total current liabilities | $ | 261,229 | $ | 260,575 | $ | 251,220 | $ | 248,012 | $ | 236,121 | $ | 231,925 | N/A | N/A | ||||||||||||||||||
Total liabilities | $ | 289,950 | $ | 289,296 | $ | 282,541 | $ | 279,333 | $ | 269,761 | $ | 265,565 | N/A | N/A | ||||||||||||||||||
Retained earnings | $ | 384,218 | $ | 383,148 | $ | 431,676 | $ | 426,406 | $ | 463,121 | $ | 456,226 | $ | 479,140 | $ | 474,598 | ||||||||||||||||
Total stockholders’ equity | $ | 394,221 | $ | 393,151 | $ | 449,056 | $ | 443,786 | $ | 477,429 | $ | 470,534 | $ | 496,112 | $ | 491,570 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 684,171 | $ | 682,447 | $ | 731,597 | $ | 723,119 | $ | 747,190 | $ | 736,099 | $ | 755,329 | $ | 750,787 | ||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
31-Mar-12 | 30-Jun-12 | 30-Sep-12 | 31-Dec-12 | |||||||||||||||||||||||||||||
Consolidated statement of income data: | ||||||||||||||||||||||||||||||||
Instructional costs and services (1) | $ | 82,500 | $ | 84,224 | $ | 78,525 | $ | 85,279 | $ | 88,373 | $ | 90,986 | $ | 105,875 | $ | 102,034 | ||||||||||||||||
Total costs and expenses | $ | 198,084 | $ | 199,808 | $ | 180,766 | $ | 187,520 | $ | 202,354 | $ | 204,967 | $ | 184,253 | $ | 180,412 | ||||||||||||||||
Operating income | $ | 52,353 | $ | 50,629 | $ | 75,536 | $ | 68,782 | $ | 49,722 | $ | 47,109 | $ | 25,103 | $ | 28,944 | ||||||||||||||||
Income before income taxes | $ | 53,036 | $ | 51,312 | $ | 76,390 | $ | 69,636 | $ | 50,677 | $ | 48,064 | $ | 25,980 | $ | 29,822 | ||||||||||||||||
Income tax expense | $ | 19,995 | $ | 19,341 | $ | 28,932 | $ | 26,378 | $ | 19,232 | $ | 18,244 | $ | 9,962 | $ | 11,450 | ||||||||||||||||
Net income | $ | 33,041 | $ | 31,971 | $ | 47,458 | $ | 43,258 | $ | 31,445 | $ | 29,820 | $ | 16,019 | $ | 18,372 | ||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.64 | $ | 0.61 | $ | 0.9 | $ | 0.82 | $ | 0.59 | $ | 0.56 | $ | 0.3 | $ | 0.34 | ||||||||||||||||
Diluted | $ | 0.59 | $ | 0.57 | $ | 0.84 | $ | 0.77 | $ | 0.56 | $ | 0.53 | $ | 0.29 | $ | 0.33 | ||||||||||||||||
Year to Date Period Ended | ||||||||||||||||||||||||||||||||
31-Mar-12 | 30-Jun-12 | 30-Sep-12 | 31-Dec-12 | |||||||||||||||||||||||||||||
Consolidated statement of income data: | ||||||||||||||||||||||||||||||||
Instructional costs and services (1) | $ | 82,500 | $ | 84,224 | $ | 161,025 | $ | 169,503 | $ | 249,398 | $ | 260,489 | $ | 355,273 | $ | 362,523 | ||||||||||||||||
Total costs and expenses | $ | 198,084 | $ | 199,808 | $ | 378,850 | $ | 387,328 | $ | 581,204 | $ | 592,295 | $ | 765,457 | $ | 772,707 | ||||||||||||||||
Operating income | $ | 52,353 | $ | 50,629 | $ | 127,889 | $ | 119,411 | $ | 177,611 | $ | 166,520 | $ | 202,714 | $ | 195,464 | ||||||||||||||||
Income before income taxes | $ | 53,036 | $ | 51,312 | $ | 129,426 | $ | 120,948 | $ | 180,103 | $ | 169,012 | $ | 206,084 | $ | 198,834 | ||||||||||||||||
Income tax expense | $ | 19,995 | $ | 19,341 | $ | 48,927 | $ | 45,719 | $ | 68,159 | $ | 63,963 | $ | 78,121 | $ | 75,413 | ||||||||||||||||
Net income | $ | 33,041 | $ | 31,971 | $ | 80,499 | $ | 75,229 | $ | 111,944 | $ | 105,049 | $ | 127,963 | $ | 123,421 | ||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.64 | $ | 0.61 | $ | 1.54 | $ | 1.44 | $ | 2.13 | $ | 2 | $ | 2.42 | $ | 2.33 | ||||||||||||||||
Diluted | $ | 0.59 | $ | 0.57 | $ | 1.43 | $ | 1.34 | $ | 2 | $ | 1.87 | $ | 2.29 | $ | 2.21 | ||||||||||||||||
Consolidated statement of cash flow data: | ||||||||||||||||||||||||||||||||
Net income | $ | 33,041 | $ | 31,971 | $ | 80,499 | $ | 75,229 | $ | 111,944 | $ | 105,049 | $ | 127,963 | $ | 123,421 | ||||||||||||||||
Provision for bad debts | $ | 14,945 | $ | 16,669 | $ | 24,923 | $ | 33,401 | $ | 41,327 | $ | 52,418 | $ | 66,446 | $ | 73,696 | ||||||||||||||||
Deferred income taxes | N/A | N/A | N/A | N/A | N/A | N/A | $ | (7,264 | ) | $ | (9,972 | ) | ||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 27,505 | $ | 26,851 | $ | 21,700 | $ | 18,492 | $ | 23,559 | $ | 19,363 | N/A | N/A | ||||||||||||||||||
(1) The amounts in the “as reported” column for instructional costs and services above reflect reclassified amounts for each respective period. For additional information, see also Note 3, “Reclassification.” | ||||||||||||||||||||||||||||||||
Accounts Receivable and Allowance for Doubtful Accounts | ||||||||||||||||||||||||||||||||
Accounts receivable consists of student accounts receivable, which represent amounts due for tuition, technology fees and other fees from currently enrolled and former students. Students generally fund their education through grants and/or loans under various Title IV programs, tuition assistance from military and corporate employers or personal funds. | ||||||||||||||||||||||||||||||||
Accounts receivable are stated at the amount management expects to collect from outstanding balances. For accounts receivable, an allowance for doubtful accounts is estimated by management based on (i) an assessment of individual accounts receivable over a specific aging and amount (and all other balances on a pooled basis based on historical collection experience), (ii) consideration of the nature of the receivable accounts and (iii) potential changes in the business or economic environment. The provision for bad debts is recorded within the instructional costs and services line in the condensed consolidated statements of income. | ||||||||||||||||||||||||||||||||
Student Loans Receivable and Loan Loss Reserves | ||||||||||||||||||||||||||||||||
Student loans receivable consist of loans to qualified students and have a repayment period of 10 years from the date of graduation or withdrawal from the Company's institutions. The interest rate charged on student loans is a fixed rate of either 4.5% or 0.0% depending upon the repayment plan selected. If the student selects the rate of 0.0%, the student must pay $50 per month on the loan while enrolled in school and during the six months of grace period (after graduation or withdrawal) before the repayment period begins. On the 0.0% student loans, the Company imputes interest using the rate that would be used in a market transaction with similar terms. Interest income on student loans is recognized using the effective interest method and is recorded within other income in the condensed consolidated statements of income. Revenue recognized related to student loans was immaterial during each of the three and nine months ended September 30, 2013 and September 30, 2012, respectively. | ||||||||||||||||||||||||||||||||
Student loans receivable are stated at the amount management expects to collect from outstanding balances. For tuition related student loan receivables, the Company estimates an allowance for doubtful accounts, similar to that of accounts receivable, based on (i) an assessment of individual loans receivable over a specific aging and amount (and all other balances on a pooled basis based on historical collection experience), (ii) consideration of the nature of the receivable accounts, (iii) potential changes in the business or economic environment and (iv) related FICO scores and other industry metrics. The related provision for bad debts is recorded within the instructional costs and services line in the condensed consolidated statements of income. | ||||||||||||||||||||||||||||||||
For non-tuition related student loans, the Company utilizes an impairment methodology. Under this methodology, management determines whether a loan would be impaired if it is probable that the Company will be unable to collect all amounts due in accordance with the contractual terms of the individual loan agreement. This assessment is based on an analysis of several factors including aging history and delinquency trending, the risk characteristics and loan performance of the specific loans, as well as current economic conditions and industry trends. Based on these factors, the Company considers loans to be impaired when they reach a delinquency status that requires specialized collection efforts. The Company records a loss reserve for the full book value of the impaired loans. For the three and nine months ended September 30, 2013, there was $0.5 million and $0.8 million, respectively, recorded for loan loss reserves. The loan loss reserve is maintained at a level deemed adequate by management based on a periodic analysis of the individual loans and is recorded within the instructional costs and services line in the condensed consolidated statements of income. | ||||||||||||||||||||||||||||||||
Recently Adopted Accounting Pronouncements | ||||||||||||||||||||||||||||||||
In July 2012, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2012-02, which amends Accounting Standards Codification Topic 350, Testing Indefinite-Lived Intangible Assets for Impairment. The amended standard reduces the cost and complexity of testing indefinite-lived intangible assets, other than goodwill, for impairment by allowing companies to perform a qualitative assessment to determine whether further impairment testing is necessary, similar in approach to the goodwill impairment test. The guidance provided in ASU 2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company adopted ASU 2012-02, effective January 1, 2013, and such adoption did not have a material effect on our condensed consolidated financial statements. | ||||||||||||||||||||||||||||||||
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, or AOCI, which amends Accounting Standards Codification Topic 220, Comprehensive Income. Under ASU 2013-02, an entity is required to provide information about the amounts reclassified out of AOCI by component in a single note or on the face of the financial statements. The guidance provided in ASU 2013-02 is effective for interim and annual reporting periods beginning after December 15, 2012. The Company adopted ASU 2013-02, effective January 1, 2013, and such adoption did not have a material effect on our condensed consolidated financial statements. |
Reclassification
Reclassification | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Reclassification [Abstract] | ' | |||||||||||||||
Reclassification | ' | |||||||||||||||
Reclassification | ||||||||||||||||
Effective in the fourth quarter of 2012, the Company made changes in the presentation of its operating expenses. The Company determined that these changes would better reflect industry practices and would provide more meaningful information as well as increased transparency to its operations. The Company believes its expenses as reclassified better represent the operational changes and the business initiatives that have been implemented. The Company has reclassified prior periods to conform to the new presentation. There was no change to the total amount of operating expenses as a result of the reclassification. | ||||||||||||||||
The following table depicts the Company's operating expenses as previously reported, as well as currently reclassified, on its condensed consolidated statements of income for each of the three month periods noted below (in thousands): | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||
2012 | 2012 | 2012 | 2012 | |||||||||||||
Instructional costs and services (as reported) | $ | 68,475 | $ | 65,395 | $ | 75,699 | $ | 105,875 | ||||||||
Impact of reclassification | 14,025 | 13,130 | 12,674 | — | ||||||||||||
Instructional costs and services (as reclassified) | 82,500 | 78,525 | 88,373 | 105,875 | ||||||||||||
Impact of bad debt revision | 1,724 | 6,754 | 2,613 | (3,841 | ) | |||||||||||
Instructional costs and services (as reclassified and revised) | 84,224 | 85,279 | 90,986 | 102,034 | ||||||||||||
Admissions advisory and marketing (as reported) | 80,063 | 78,608 | 90,291 | 65,239 | ||||||||||||
Impact of reclassification | 9,979 | 8,586 | 6,443 | — | ||||||||||||
Admissions advisory and marketing (as reclassified) | 90,042 | 87,194 | 96,734 | 65,239 | ||||||||||||
General and administrative (as reported) | 49,546 | 36,763 | 36,364 | 13,139 | ||||||||||||
Impact of reclassification | (24,004 | ) | (21,716 | ) | (19,117 | ) | — | |||||||||
General and administrative (as reclassified) | 25,542 | 15,047 | 17,247 | 13,139 | ||||||||||||
Total costs and expenses (as reclassified and revised) | $ | 199,808 | $ | 187,520 | $ | 204,967 | $ | 180,412 | ||||||||
For additional information, see also Note 2, “Summary of Significant Accounting Policies - Revision of Previously Issued Financial Statements.” |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Share | ' | |||||||||||||||
Earnings Per Share | ||||||||||||||||
Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is calculated by dividing net income by the sum of (i) the weighted average number of common shares outstanding for the period and (ii) potentially dilutive securities outstanding during the period, if the effect is dilutive. | ||||||||||||||||
Potentially dilutive common shares for each of the three and nine months ended September 30, 2013 and September 30, 2012, consisted of incremental shares of common stock issuable upon the exercise of options and upon the settlement of restricted stock units. | ||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 10,135 | $ | 29,820 | $ | 47,470 | $ | 105,049 | ||||||||
Denominator: | ||||||||||||||||
Weighted average number of common shares outstanding | 54,336 | 53,184 | 54,201 | 52,576 | ||||||||||||
Effect of dilutive options and restricted stock units | 1,996 | 2,349 | 1,497 | 3,261 | ||||||||||||
Effect of dilutive warrants | 99 | 223 | 97 | 252 | ||||||||||||
Diluted weighted average number of common shares outstanding | 56,431 | 55,756 | 55,795 | 56,089 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic earnings per share | $ | 0.19 | $ | 0.56 | $ | 0.88 | $ | 2 | ||||||||
Diluted earnings per share | $ | 0.18 | $ | 0.53 | $ | 0.85 | $ | 1.87 | ||||||||
For the periods indicated below, the computation of dilutive common shares outstanding excludes certain options and restricted stock units to purchase shares of common stock because their effect was anti-dilutive. | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Options | 2,564 | 3,405 | 3,493 | 1,364 | ||||||||||||
Restricted stock units | — | — | 1 | — | ||||||||||||
Significant_Balance_Sheet_Acco
Significant Balance Sheet Accounts | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Significant Balance Sheet Accounts [Abstract] | ' | |||||||||||||||
Significant Balance Sheet Accounts | ' | |||||||||||||||
Significant Balance Sheet Accounts | ||||||||||||||||
Receivables, Net | ||||||||||||||||
Receivables, net, consist of the following (in thousands): | ||||||||||||||||
As of | As of | |||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Accounts receivable | $ | 102,782 | $ | 114,635 | ||||||||||||
Less allowance for doubtful accounts | (51,659 | ) | (46,708 | ) | ||||||||||||
Accounts receivable, net | $ | 51,123 | $ | 67,927 | ||||||||||||
Student loans receivable (non-tuition related) | $ | 7,954 | $ | 9,279 | ||||||||||||
Student loans receivable (tuition related) | 5,642 | 8,171 | ||||||||||||||
Student loans receivable | 13,596 | 17,450 | ||||||||||||||
Less allowance for doubtful accounts | (1,660 | ) | (2,307 | ) | ||||||||||||
Student loans receivable, net | $ | 11,936 | $ | 15,143 | ||||||||||||
As of September 30, 2013 and December 31, 2012, there was $1.7 million and $0.6 million, respectively, of current net student loans receivable included within net accounts receivable. Student loans receivable is presented net of any related discount, and the balances approximated fair value at each balance sheet date. The Company estimated the fair value of the student loans receivable by discounting the future cash flows using current rates for similar arrangements. The assumptions used in this estimate are considered unobservable inputs and are therefore categorized as Level 3 measurements under accounting guidance. | ||||||||||||||||
The following table presents the changes in the allowance for doubtful accounts for the periods indicated (in thousands): | ||||||||||||||||
Beginning | Charged to | Deductions(1) | Ending | |||||||||||||
Balance | Expense | Balance | ||||||||||||||
Allowance for doubtful accounts receivable: | ||||||||||||||||
For the nine months ended September 30, 2013 | $ | (46,708 | ) | $ | 54,036 | $ | 49,085 | $ | (51,659 | ) | ||||||
For the nine months ended September 30, 2012 | (35,627 | ) | 52,424 | 45,113 | (42,938 | ) | ||||||||||
Allowance for student loans receivable (tuition related): | ||||||||||||||||
For the nine months ended September 30, 2013 | $ | (2,307 | ) | $ | (387 | ) | $ | 260 | $ | (1,660 | ) | |||||
For the nine months ended September 30, 2012 | (2,338 | ) | (6 | ) | — | (2,332 | ) | |||||||||
-1 | Deductions represent accounts written off, net of recoveries. | |||||||||||||||
For the non-tuition related student loans receivable, the Company monitors the credit quality using credit scores, aging history and delinquency trending. The loan reserve methodology is reviewed on a quarterly basis. Delinquency is the main factor of determining if a loan is impaired. If a loan were determined to be impaired, interest would no longer accrue. For the three and nine months ended September 30, 2013, there was $0.5 million and $0.8 million, respectively, of loans that were impaired, and as of September 30, 2013, an immaterial amount of loans had been placed on non-accrual status. | ||||||||||||||||
Prepaid Expenses and Other Current Assets | ||||||||||||||||
Prepaid expenses and other current assets consist of the following (in thousands): | ||||||||||||||||
As of | As of | |||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Prepaid expenses | $ | 10,254 | $ | 9,367 | ||||||||||||
Prepaid licenses | 3,061 | 5,864 | ||||||||||||||
Prepaid insurance | 1,184 | 1,134 | ||||||||||||||
Interest receivable | 647 | 2,221 | ||||||||||||||
Other current assets | 911 | 1,224 | ||||||||||||||
Total prepaid expenses and other current assets | $ | 16,057 | $ | 19,810 | ||||||||||||
Property and Equipment, Net | ||||||||||||||||
Property and equipment, net, consist of the following (in thousands): | ||||||||||||||||
As of | As of | |||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Land | $ | 7,091 | $ | 7,091 | ||||||||||||
Buildings and building improvements | 28,520 | 25,430 | ||||||||||||||
Furniture, office equipment and software | 94,145 | 85,709 | ||||||||||||||
Leasehold improvements | 24,410 | 23,756 | ||||||||||||||
Vehicles | 147 | 147 | ||||||||||||||
Total property and equipment | 154,313 | 142,133 | ||||||||||||||
Less accumulated depreciation and amortization | (59,743 | ) | (46,167 | ) | ||||||||||||
Total property and equipment, net | $ | 94,570 | $ | 95,966 | ||||||||||||
Goodwill and Intangibles, Net | ||||||||||||||||
Goodwill and intangibles, net, consist of the following (in thousands): | ||||||||||||||||
As of | As of | |||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Goodwill and indefinite-lived intangibles | $ | 3,424 | $ | 3,424 | ||||||||||||
Definite-lived intangible assets | $ | 13,496 | $ | 9,978 | ||||||||||||
Less accumulated amortization | (4,946 | ) | (2,663 | ) | ||||||||||||
Definite-lived intangible assets, net | 8,550 | 7,315 | ||||||||||||||
Total goodwill and intangibles, net | $ | 11,974 | $ | 10,739 | ||||||||||||
For the three months ended September 30, 2013 and September 30, 2012, amortization expense was $0.9 million and $0.4 million, respectively. For the nine months ended September 30, 2013 and September 30, 2012, amortization expense was $2.3 million and $1.0 million, respectively. The Company estimates that the remaining amortization expense for those intangibles which have been placed into service as of September 30, 2013, will be approximately $0.9 million, $3.3 million, $2.2 million and $0.5 million over the remaining fiscal years ending December 31, 2013, December 31, 2014, December 31, 2015 and December 31, 2016, respectively. | ||||||||||||||||
Accrued Liabilities | ||||||||||||||||
Accrued liabilities consist of the following (in thousands): | ||||||||||||||||
As of | As of | |||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Accrued salaries and wages | $ | 13,227 | $ | 11,585 | ||||||||||||
Accrued bonus | 1,883 | 1,603 | ||||||||||||||
Accrued vacation | 9,559 | 8,993 | ||||||||||||||
Accrued expenses | 17,514 | 15,924 | ||||||||||||||
Accrued income taxes payable | 1,384 | 6,535 | ||||||||||||||
Total accrued liabilities | $ | 43,567 | $ | 44,640 | ||||||||||||
There was a reduction in force during the second quarter of 2013 to help better align personnel resources with the impact of previously announced institutional initiatives regarding enrollments. We recognized $5.9 million of severance costs for wages and benefits during the second quarter for this reduction in force. The total severance amount was charged as $4.8 million to instructional costs and services, $0.3 million to admissions advisory and marketing expenses, and $0.8 million to general and administrative expenses. These costs were fully paid during the third quarter of 2013 from existing cash on hand. There were no additional severance costs or other related contract termination costs since that time. | ||||||||||||||||
Deferred Revenue and Student Deposits | ||||||||||||||||
Deferred revenue and student deposits consist of the following (in thousands): | ||||||||||||||||
As of | As of | |||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Deferred revenue | $ | 32,763 | $ | 44,967 | ||||||||||||
Student deposits | 93,684 | 130,090 | ||||||||||||||
Total deferred revenue and student deposits | $ | 126,447 | $ | 175,057 | ||||||||||||
Investments
Investments | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Investments | ' | |||||||||||||||
Investments | ||||||||||||||||
The following tables summarize the fair value information of short and long-term investments as of September 30, 2013, and December 31, 2012, respectively (in thousands): | ||||||||||||||||
As of September 30, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Demand notes | $ | — | $ | 652 | $ | — | $ | 652 | ||||||||
Corporate notes and bonds | — | 21,359 | — | 21,359 | ||||||||||||
Total | $ | — | $ | 22,011 | $ | — | $ | 22,011 | ||||||||
As of December 31, 2012 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Demand notes | $ | — | $ | 415 | $ | — | $ | 415 | ||||||||
Corporate notes and bonds | — | 148,801 | — | 148,801 | ||||||||||||
Total | $ | — | $ | 149,216 | $ | — | $ | 149,216 | ||||||||
The above tables do not include amounts related to investments classified as other investments, such as certificates of deposit, which are carried at amortized cost. The amortized cost of such investments approximated fair value at each balance sheet date. The assumptions used in these fair value estimates are considered as other observable inputs and are therefore categorized as Level 2 measurements under the accounting guidance. The balances of such other investments were $99.5 million at September 30, 2013, and $109.5 million as of December 31, 2012. The balances of total combined short-term and long-term investments was $121.5 million and $258.7 million, as of September 30, 2013, and December 31, 2012, respectively. | ||||||||||||||||
The Company records the changes in unrealized gains and losses on its investments arising during the period in other comprehensive income. For the three months ended September 30, 2013 and 2012, the Company recorded net unrealized gains of $10,000 and $308,000, respectively, in other comprehensive income which were net of tax expense of $9,000 and $187,000, respectively. For the nine months ended September 30, 2013 and 2012, the Company recorded a net unrealized loss of $194,000, and a net unrealized gain of $945,000, respectively, in other comprehensive income which were net of tax benefit of $115,000 and tax expense of $565,000, respectively. |
Credit_Facilities
Credit Facilities | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Credit Facilities | ' |
Credit Facilities | |
On April 13, 2012, the Company entered into a $50 million revolving line of credit (“Facility”) pursuant to an Amended and Restated Revolving Credit Agreement (“Revolving Credit Agreement”) with the lenders signatory thereto and Comerica, as administrative agent for the lenders. The Revolving Credit Agreement amended, restated and superseded any prior loan documents. At the Company's option, the Company may increase the size of the Facility up to $100 million, in certain minimum increments, subject to the terms and conditions of the Revolving Credit Agreement. Additionally, the Company may request swing-line advances under the Facility up to $3 million in the aggregate. | |
Under the Revolving Credit Agreement and the documents executed in connection therewith (collectively, the “Facility Loan Documents”), the lenders have agreed to make loans to the Company and issue letters of credit on the Company's behalf, subject to specific terms and conditions. The Facility has a term of three years and matures on April 13, 2015. Interest and fees accruing under the Facility are payable quarterly in arrears and principal is payable at maturity. The Company may terminate the Facility upon five days notice, without premium or penalty, other than customary breakage fees. | |
For any advance under the Facility, interest will accrue at either the “Base Rate” or the “Eurodollar-based Rate,” at the Company's option. The Base Rate means, for any day, 0.5% plus the greatest of: (1) the prime rate for such day, (2) the Federal Funds Effective Rate in effect on such day, plus 1.0%, and (3) the daily adjusting LIBOR rate, plus 1.0%. The Eurodollar-based Rate means, for any day, 1.5% plus the quotient of (1) the LIBOR Rate, divided by (2) a percentage equal to 100% minus the maximum rate on such date at which Comerica is required to maintain reserves on “Eurocurrency Liabilities” as defined in Regulation D of the Board of Governors of the Federal Reserve System. For any advance under the swing line, interest will accrue at either the Base Rate or, if made available to the Company by the swing line lender, at the lender's option, a different rate quoted by such lender. For any letter of credit issued on the Company's behalf under the Facility, the Company is required to pay a fee of 1.50% of the undrawn amount of such letter of credit plus a letter of credit facing fee. The Company is also required to pay a facility fee of 0.25% of the aggregate commitment then in effect under the Facility, whether used or unused. | |
The Facility Loan Documents contain other customary affirmative, negative and financial maintenance covenants, representations and warranties, events of default, and remedies upon an event of default, including the acceleration of debt and the right to foreclose on the collateral securing the Facility. The Company was in compliance with all financial covenants in the Facility Loan Documents as of September 30, 2013. | |
As security for the performance of the Company's obligations under the Facility Loan Documents, the Company granted the lenders a first priority security interest in substantially all of the Company's assets, including its real property. | |
As of September 30, 2013, and up to the date of filing, the Company had no borrowings outstanding under the Facility. As of September 30, 2013, the Company used the availability under the line of credit to issue letters of credit aggregating $5.8 million. | |
Surety Bond Facility | |
As part of its normal business operations, the Company is required to provide surety bonds in certain states in which the Company does business. In May 2009, the Company entered into a surety bond facility with an insurance company to provide such bonds when applicable. As of September 30, 2013, the total available surety bond facility was $12.0 million and the Company had issued surety bonds totaling $7.0 million. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
The Company recorded $3.3 million and $3.4 million of stock-based compensation expense for the three months ended September 30, 2013 and 2012, respectively, and $10.7 million and $9.9 million of stock-based compensation expense for the nine months ended September 30, 2013 and 2012, respectively. The related income tax benefit was $1.2 million and $1.3 million for the three months ended September 30, 2013 and 2012, respectively, and $4.0 million and $3.7 million for the nine months ended September 30, 2013 and 2012, respectively. | |
There were 13,060 restricted stock units (“RSUs”) granted during the three months ended September 30, 2013 at a grant date fair value of $16.52. During the three and nine months ended September 30, 2013, approximately 0.2 million RSUs vested and were released. | |
The Company did not grant any options to purchase shares of common stock during the three months ended September 30, 2013. During the three months ended September 30, 2013, options to purchase 0.2 million shares of common stock were exercised. | |
As of September 30, 2013, there was unrecognized compensation cost of $15.5 million related to unvested options and RSUs. |
Warrants
Warrants | 9 Months Ended |
Sep. 30, 2013 | |
Warrants and Rights Note Disclosure [Abstract] | ' |
Warrants | ' |
Warrants | |
The Company has issued warrants to purchase common stock to various employees, consultants, licensors and lenders with exercise prices ranging from $1.125 to $9.00. Each warrant represents the right to purchase one share of common stock. As of September 30, 2013, warrants to purchase 0.1 million shares of common stock remain outstanding. The Company has not issued any warrants since 2005. During the three months ended September 30, 2013, there were approximately 7,000 warrants to purchase shares of common stock exercised. All outstanding warrants are currently exercisable and expire on December 1, 2013. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The Company's current estimated annual effective income tax rate that has been applied to normal, recurring operations for the nine months ended September 30, 2013, was 38.9%. The Company's actual effective income tax rate was 36.7% for the nine months ended September 30, 2013. The actual effective rate for the nine months ended September 30, 2013 differed from the Company's estimated annual effective tax rate due to the impact of discrete items on the Company's income before the provision for income taxes, primarily the recognition of $1.9 million of gross unrecognized tax benefits and the reversal of accrued interest related to the lapse of the statute of limitations, offset by increases to other gross unrecognized tax benefits and related accrued interest. | |
At September 30, 2013, and December 31, 2012, the Company had $8.1 million and $9.3 million of gross unrecognized tax benefits, respectively, of which $5.3 million and $6.6 million, respectively, would impact the effective income tax rate if recognized. | |
The Company is subject to U.S. federal income tax and multiple state tax jurisdictions. The 2002 through 2012 tax years remain open to examination by major taxing jurisdictions to which the Company is subject. | |
The Company's continuing practice is to recognize interest and penalties related to uncertain tax positions in income tax expense. Accrued interest and penalties related to uncertain tax positions as of September 30, 2013 and as of December 31, 2012, was $1.8 million and $1.7 million, respectively. | |
The California Franchise Tax Board commenced an audit of the Company's 2008 and 2009 California income tax returns in October 2011. The Company does not expect any significant adjustments resulting from this audit. | |
It is reasonably possible that the amount of the unrecognized tax benefit will change during the next 12 months, however the Company does not expect the potential change to have a material effect on the results of operations or financial position in the next year. |
Regulatory
Regulatory | 9 Months Ended |
Sep. 30, 2013 | |
Regulatory [Abstract] | ' |
Regulatory | ' |
Regulatory | |
The Company is subject to extensive regulation by federal and state governmental agencies and accrediting bodies. In particular, the Higher Education Act of 1965, as amended (“Higher Education Act”), and the regulations promulgated thereunder by the U.S. Department of Education (“Department”) subject the Company to significant regulatory scrutiny on the basis of numerous standards that institutions of higher education must satisfy in order to participate in the various federal student financial assistance programs under Title IV of the Higher Education Act. | |
Ashford University and University of the Rockies are both currently regionally accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools (“HLC”). | |
WASC Grant of Initial Accreditation of Ashford University. On July 10, 2013, the WASC Senior College and University Commission (“WASC”) granted Initial Accreditation to Ashford University for five years, until July 15, 2018. This WASC action permits Ashford University to designate WASC as its accreditor of record for purposes of eligibility to participate in the Title IV programs, subject to (i) the Department's prior approval, (ii) the university's voluntary withdrawal from HLC, (iii) receipt of acknowledgment by HLC, and (iv) release of HLC's relevant records to WASC. WASC found that the university has responded to its previously expressed concerns, judged that Ashford University is in substantial compliance with WASC standards and established a process for monitoring progress in implementing recommendations in several areas related to growth, infrastructure, student retention and student outcomes. As part of the monitoring process, the university will host WASC in a Special Visit in spring 2015. The university intends to transition from HLC to WASC, name WASC as its accreditor of record for Title IV purposes, and designate its San Diego, California facilities as its main campus and its Clinton, Iowa campus as an additional location, subject to approval by the Department. Ashford University formally submitted its request for such approvals to the Department on July 17, 2013. On November 4, 2013, the Department notified Ashford University that the Department will approve the university’s change in accreditor, recognizing WASC as Ashford University’s accreditor, along with the renewal of certification for continued participation in the Title IV, HEA programs. The Department anticipates completing its review and approval of the university’s application for change in accreditor, and issuing a new Program Participation Agreement, within the next few weeks. | |
Application for Licensure by California BPPE. To be eligible to participate in Title IV programs, an institution must be legally authorized to offer its educational programs by the states in which it is physically located. Effective July 1, 2011, the Department established new requirements to determine if an institution is considered to be legally authorized by a state. See “Regulation - State Authorization” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, which was filed with the SEC on March 12, 2013, and amended on May 17, 2013. In connection with its transition to WASC accreditation, Ashford University plans to designate its San Diego, California facilities as its main campus for Title IV purposes, subject to approval by the Department. WASC-accredited institutions operating in California are not required to obtain additional approval from the State of California, Department of Consumer Affairs, Bureau for Private Postsecondary Education, or BPPE, in order to operate in the state. Under the Department’s state authorization rule, an institution must be approved or licensed on a basis other than accreditation in instances in which it is not established by name as an educational institution by a state through a charter, statute, constitutional provision, or other action issued by an appropriate state agency or entity. On May 21, 2013, the Department published a notice stating that it would provide an extension of the effective date of the state authorization rule until July 1, 2014 to qualifying institutions that obtain from a state an explanation of how the extension of time would permit the state to comply with the regulations. The California Department of Consumer Affairs has issued a letter explaining the need for an extension. As it is uncertain how the Department will interpret the state authorization rule or the applicability of the extension of time, the university submitted an Application for Approval to Operate an Accredited Institution to BPPE on September 10, 2013. Once licensed by BPPE, the university will no longer be exempt from certain laws and regulations applicable to private, post-secondary educational institutions. These laws and regulations entail certain California reporting requirements, including but not limited to, employment data, certain changes of ownership and control, faculty and programs, and student refund policies, as well as the triggering of other state and federal student employment data reporting and disclosure requirements. | |
HLC Accreditation of Ashford University. On July 18, 2013, Ashford University provided a monitoring report to HLC stating that it had been granted Initial Accreditation by WASC for five years and that the university intends to name WASC as its accreditor of record, subject to approval by the Department. However, if the Department does not recognize the change of accreditor or the designation of San Diego, California as its main campus and Clinton, Iowa as an additional location, or if the Department has not yet recognized the change of accreditor or campus designations, the university would be required to host HLC in a focused evaluation on or before December 15, 2013 to examine retention, graduation and the university's progress in resolving the identified issues. Unless the university withdraws from HLC prior to such date, the HLC Board of Trustees will consider information provided in the July 2013 monitoring report and the December 2013 focused evaluation at its meeting in February 2014 and take action as appropriate. Such action could include placing the institution on notice or probation, a show-cause order or withdrawal of accreditation. Loss of accreditation would denigrate the value of our institutions' educational programs and would cause them to lose their eligibility to participate in Title IV programs, which would have a material adverse effect on enrollments, revenues, financial condition, cash flows and results of operations. | |
On September 4, 2013, Ashford University received a letter from HLC, stating that on August 30, 2013, HLC's Board of Trustees removed the university from Notice because the HLC Board determined that the university had resolved the concerns that led to the institution being placed on Notice. The HLC Board maintained the requirement that the university host HLC in a focused evaluation on or before December 15, 2013 to examine retention, graduation and the university's progress in resolving the issues identified in the Notice action. This requirement will remain in effect until the university resigns its status. | |
Request for information from Ashford University by Iowa College Student Aid Commission. On September 22, 2012, the Iowa College Student Aid Commission requested that Ashford University provide the commission with certain information and documentation related to, among other matters, the denial of Ashford University's application for WASC accreditation, the university's compliance with HLC criteria and policies, a teach-out plan in the event that Ashford University is unsuccessful in obtaining WASC accreditation and is sanctioned by HLC, and information relating to admissions employees, receipt of financial aid, availability of books, credit balance authorizations, and academic and financial support and advisement services to students. The commission requested that Ashford University provide the requested information by November 12, 2012 and make an in-person presentation during the commission's meeting on November 16, 2012. The university made the presentation and continues to work with the commission to ensure they receive timely accreditation-related updates. | |
Negotiated Rulemaking. The Department held negotiated rulemaking public hearings in May and June 2013 and has indicated that this activity is part of a series of rulemaking efforts to achieve a long-term agenda in higher education focused on access, affordability, academic quality and completion. Recent hearings have focused on topics including, but not limited to, cash management of Title IV program funds, state authorization for programs offering distance or correspondence education, gainful employment, credit and clock hour conversions, changes made to the Clery Act by the Violence Against Women Act of 2013 (P.L. 113-4), and the definition of “adverse credit” for PLUS borrowers. | |
In June 2013, the Department announced its intention to establish a negotiated rulemaking committee to prepare proposed regulations that would establish standards for programs that prepare students for gainful employment in a recognized occupation, referred to below as the Notice. The Notice sought nominees for the two sessions, the first of which occurred on September 9-11, 2013 and the second of which was scheduled for October 21-23, 2013, but has been delayed because of the partial, temporary government shutdown. In advance of the first negotiated rulemaking session, the Department issued draft regulatory language for discussion purposes. The draft differs from the gainful employment regulations previously promulgated by the Department, which were vacated by the U.S. Court of Appeals for the District of Columbia Circuit, in several significant ways, including: (i) tightening the debt-to-earnings ratios that programs must meet in order to be considered passing and establishing a new “zone” alternative for programs with debt-to-earnings ratios that are neither passing nor failing, (ii) decreasing the number of years for which a program may fail to meet the debt-to-earnings ratios before losing Title IV eligibility from three out of four years to two out of three years, and (iii) eliminating the loan repayment rate metric. The repayment rate metric is the component of the current gainful employment rule which was held to be arbitrary and capricious by the court, resulting in invalidation of the entire rule. This rulemaking process is expected to produce new regulations, which, if published in final form after November 1, 2013 and on or before November 1, 2014, would take effect in July 2015. | |
The Notice stated that the Department plans to establish committees to address the other rulemaking issues in the coming months. Department representatives have advised institutions that committees could be established in February or March 2014. Compliance with additional regulations, and/or regulatory scrutiny that results in the Company's institutions being allegedly out of compliance with these regulations, could result in direct and indirect costs of compliance, fines, liabilities, sanctions or lawsuits, which could have a material adverse effect on enrollments, revenues, financial condition, cash flows and results of operations. | |
Cohort Default Rate. For each federal fiscal year, the Department calculates a rate of student defaults over a two-year measuring period for each educational institution which is known as a “cohort default rate.” An institution may lose its eligibility to participate in the Direct Loan and Pell programs if, for each of the three most recent federal fiscal years for which information is available, 25% or more of its students who became subject to a repayment obligation in that federal fiscal year defaulted on such obligation by the end of the following federal fiscal year. In addition, an institution may lose its eligibility to participate in the Direct Loan program if its cohort default rate exceeds 40% in the most recent federal fiscal year for which default rates have been calculated by the Department. Ashford University's two-year cohort default rates for the 2011, 2010 and 2009 federal fiscal years, were 10.1%, 10.2%, and 15.3%, respectively. The two-year cohort default rates for the University of the Rockies for the 2011, 2010 and 2009 federal fiscal years, were 4.9%, 4.0% and 3.3%, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
From time to time, the Company is a party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. When the Company becomes aware of a claim or potential claim, it assesses the likelihood of any loss or exposure. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, the Company records a liability for the loss. If the loss is not probable or the amount of the loss cannot be reasonably estimated, the Company discloses the nature of the specific claim if the likelihood of a potential loss is reasonably possible and the amount involved is material. Below is a list of material legal proceedings to which the Company or its subsidiaries is a party. | |
Compliance Audit by the Department's Office of the Inspector General (“OIG”) | |
In January 2011, Ashford University received a final audit report from the OIG regarding the compliance audit commenced in May 2008 and covering the period July 1, 2006 through June 30, 2007. The audit covered Ashford University's administration of Title IV program funds, including compliance with regulations governing institutional and student eligibility, awards and disbursements of Title IV program funds, verification of awards and returns of unearned funds during that period, and its compensation of financial aid and recruiting personnel during the period May 10, 2005 through June 30, 2009. | |
The final audit report contained audit findings, in each case for the period July 1, 2006 through June 30, 2007, which are applicable to award year 2006-2007. Each finding was accompanied by one or more recommendations to the Department's Office of Federal Student Aid (“FSA”). Ashford University provided FSA a detailed response to OIG’s final audit report in February 2011. For further details regarding the audit report, please refer the section titled “Regulation - Department Regulation of Title IV Programs - Compliance reviews, audits and reports,” in Part I, Item 1 of the Company's Annual Report on Form 10-K for the year ended December 31, 2012, which was filed with the SEC on March 12, 2013, and amended on May 17, 2013. If the FSA were to determine to assess a monetary liability or commence other administrative action, Ashford University would have an opportunity to contest the assessment or proposed action through administrative proceedings, with the right to seek review of any final administrative action in the federal courts. | |
Iowa Attorney General Civil Investigation of Ashford University | |
In February 2011, Ashford University received from the Attorney General of the State of Iowa (“Iowa Attorney General”) a Civil Investigative Demand and Notice of Intent to Proceed (“CID”) relating to the Iowa Attorney General's investigation of whether certain of the university's business practices comply with Iowa consumer laws. Pursuant to the CID, the Iowa Attorney General has requested documents and detailed information for the time period January 1, 2008 to present. On June 24, 2013 and October 25, 2013, representatives from the Company and Ashford University met with the Iowa Attorney General to discuss the status of the investigation and a potential resolution involving injunctive relief and a monetary payment. Ashford University is cooperating with the investigation and cannot predict the eventual scope, duration or outcome of the investigation at this time or whether a potential resolution can be reached. As a result, the Company cannot reasonably estimate a range of loss for this action and accordingly has not accrued any liability associated with this action. However, if we are able to resolve this matter, we believe any such resolution would result in material payments and certain non-monetary remedies. | |
New York Attorney General Investigation of Bridgepoint Education, Inc. | |
In May 2011, the Company received from the Attorney General of the State of New York (“NY Attorney General”) a Subpoena relating to the NY Attorney General's investigation of whether the Company and its academic institutions have complied with certain New York state consumer protection, securities and finance laws. Pursuant to the Subpoena, the NY Attorney General has requested from the Company and its academic institutions documents and detailed information for the time period March 17, 2005 to present. The Company is cooperating with the investigation and cannot predict the eventual scope, duration or outcome of the investigation at this time. | |
North Carolina Attorney General Investigation of Ashford University | |
In September 2011, Ashford University received from the Attorney General of the State of North Carolina (“NC Attorney General”) an Investigative Demand relating to the NC Attorney General's investigation of whether the university's business practices complied with North Carolina consumer protection laws. Pursuant to the Investigative Demand, the NC Attorney General has requested from Ashford University documents and detailed information for the time period January 1, 2008 to present. Ashford University is cooperating with the investigation and cannot predict the eventual scope, duration or outcome of the investigation at this time. | |
California Attorney General Investigation of For-Profit Educational Institutions | |
In January 2013, the Company received from the Attorney General of the State of California (“CA Attorney General”) an Investigative Subpoena relating to the CA Attorney General's investigation of for-profit educational institutions. Pursuant to the Investigative Subpoena, the CA Attorney General has requested documents and detailed information for the time period March 1, 2009 to present. On July 24, 2013, the CA Attorney General filed a petition to enforce certain categories of the Subpoena related to recorded calls and electronic marketing data. On September 25, 2013, we reached an agreement with the CA Attorney General to produce certain categories of the documents requested in the petition and stipulated to continue the hearing on the petition to enforce from October 3, 2013 to January 9, 2014. The Company cannot predict the eventual scope, duration or outcome of the investigation at this time. As a result, the Company cannot reasonably estimate a range of loss for this action and accordingly has not accrued any liability associated with this action. | |
Stevens v. Bridgepoint Education, Inc. | |
In February 2011, the Company received a copy of a complaint filed as a class action lawsuit naming the Company, Ashford University, LLC, and certain employees as defendants. The complaint was filed in the Superior Court of the State of California in San Diego and was captioned Stevens v. Bridgepoint Education, Inc. In April 2011, the Company received a copy of a complaint filed as a class action lawsuit naming the Company and Ashford University, LLC, as defendants. The complaint was filed in the Superior Court of the State of California in San Diego, and was captioned Moore v. Ashford University, LLC. In May 2011, the Company received a copy of a complaint filed as a class action lawsuit naming the Company as a defendant. The complaint was filed in the Superior Court of the State of California in San Diego on May 6, 2011, and was captioned Sanchez v. Bridgepoint Education, Inc. All three of these complaints generally alleged that the plaintiffs and similarly situated employees were improperly denied certain wage and hour protections under California law. | |
In October 2011, the above named cases were consolidated because they involved common questions of fact and law, with Stevens v. Bridgepoint Education, Inc. designated as the lead case. In April 2012, the Company entered into a settlement agreement with the plaintiffs of the above named cases to settle the claims on a class-wide basis. Under the terms of the settlement agreement, the Company agreed to pay an amount to settle the plaintiffs' claims, plus any related payroll taxes. The Company accrued a $10.8 million expense in connection with the settlement agreement during the three months ended March 31, 2012. On August 24, 2012, the Court granted final approval of the class action settlement and entered a final judgment in accordance with the terms of the settlement agreement. This settlement was paid out prior to December 31, 2012. | |
Securities Class Action | |
On July 13, 2012, a securities class action complaint was filed in the U.S. District Court for the Southern District of California by Donald K. Franke naming the Company, Andrew Clark, Daniel Devine and Jane McAuliffe as defendants for allegedly making false and materially misleading statements regarding the Company's business and financial results, specifically the concealment of accreditation problems at Ashford University. The complaint asserts a putative class period stemming from May 3, 2011 to July 6, 2012. A substantially similar complaint was also filed in the same court by Luke Sacharczyk on July 17, 2012 making similar allegations against the Company, Andrew Clark and Daniel Devine. The Sacharczyk complaint asserts a putative class period stemming from May 3, 2011 to July 12, 2012. Finally, on July 26, 2012, another purported securities class action complaint was filed in the same court by David Stein against the same defendants based upon the same general set of allegations and class period. The complaints allege violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and seek unspecified monetary relief, interest, and attorneys’ fees. | |
On October 22, 2012, the Sacharczyk and Stein actions were consolidated with the Franke action and the Court appointed the City of Atlanta General Employees Pension Fund and the Teamsters Local 677 Health Services & Insurance Plan as lead plaintiffs. A consolidated complaint was filed on December 21, 2012 and the Company filed a motion to dismiss on February 19, 2013. On September 13, 2013, the Court granted the motion to dismiss with leave to amend for alleged misrepresentations relating to Ashford University’s quality of education, the WASC accreditation process, and the Company’s financial forecasts. The Court denied the motion to dismiss for alleged misrepresentations concerning Ashford University’s persistence rates. The plaintiff did not file an amended complaint by the October 31, 2013 deadline and therefore the case will now proceed to discovery. | |
The Company believes the lawsuit is without merit and intends to vigorously defend against it. However, 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 the information available to the Company at present, it cannot reasonably estimate a range of loss for this action and accordingly has not accrued any liability associated with this action. | |
Shareholder Derivative Action | |
On July 24, 2012, a shareholder derivative complaint was filed in California Superior Court by Alonzo Martinez. In the complaint, the plaintiff asserts a derivative claim on the Company's behalf against certain of its current and former officers and directors. The complaint is entitled Martinez v. Clark, et al., and generally alleges that the individual defendants breached their fiduciary duties of candor, good faith and loyalty, wasted corporate assets and were unjustly enriched. The complaint seeks unspecified monetary relief and disgorgement on behalf of the Company, as well as other equitable relief and attorneys' fees. On September 28, 2012, a substantially similar shareholder derivative complaint was filed in California Superior Court by David Adolph-Laroche. In the complaint, the plaintiff asserts a derivative claim on the Company's behalf against certain of its current and former officers and directors. The complaint is entitled Adolph-Laroche v. Clark, et al., and generally alleges that the individual defendants breached their fiduciary duties of candor, good faith and loyalty, wasted corporate assets and were unjustly enriched. | |
On October 11, 2012, the Adolph-Laroche action was consolidated with the Clark action and the case is now entitled In re Bridgepoint, Inc. Shareholder Derivative Action. A consolidated complaint was filed on December 18, 2012 and the defendants filed a motion to stay the case while the underlying securities class action is pending. The motion was granted by the Court on April 11, 2013. A status conference was held on October 10, 2013, during which the Court ordered the stay continued but permitted the plaintiff to receive copies of any discovery responses served in the underlying securities class action. | |
Guzman v. Bridgepoint Education, Inc. | |
In January 2011, Betty Guzman filed a class action lawsuit against the Company, Ashford University and University of the Rockies in the U.S. District Court for the Southern District of California. The complaint is entitled Guzman v. Bridgepoint Education, Inc., et al., and alleges that the defendants engaged in misrepresentation and other unlawful behavior in their efforts to recruit and retain students. The complaint asserts a putative class period of March 1, 2005 through the present. In March 2011, the defendants filed a motion to dismiss the complaint, which was granted by the Court with leave to amend in October 2011. | |
In January 2012, the plaintiff filed a first amended complaint asserting similar claims and the same class period, and the defendants filed another motion to dismiss. In May 2012, the Court granted the University of the Rockies' motion to dismiss and granted in part and denied in part the motion to dismiss filed by the Company and Ashford University. The Court also granted the plaintiff leave to file a second amended complaint. In August 2012, the plaintiff filed a second amended complaint asserting similar claims and the same class period. The second amended complaint seeks unspecified monetary relief, disgorgement of all profits, various other equitable relief, and attorneys' fees. The defendants filed a motion to strike portions of the second amended complaint, which was granted in part and denied in part. On March 14, 2013, the Company filed a motion to deny class certification for students enrolled on or after May 2007 when Ashford University adopted a binding arbitration policy. On August 23, 2013, the Court denied the motion finding that although “some” absent class members in this case may have signed an enforceable arbitration agreement, this does not demonstrate an overbroad or unascertainable class that forecloses certification at this stage of the proceedings. On September 23, 2013, the Court entered an order bifurcating discovery and permitting only class certification discovery to take place until the plaintiff’s motion for class certification, which is due to be filed on or before April 30, 2014, is decided. | |
The Company believes the lawsuit is without merit and intends to vigorously defend against it. However, 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 the information available to the Company at present, it cannot reasonably estimate a range of loss for this action and accordingly has not accrued any liability associated with this action. | |
Qui Tam Complaints | |
In December 2012, the Company received notice that the U.S. Department of Justice had declined to intervene in a qui tam complaint filed in the U.S. District Court for the Southern District of California by Ryan Ferguson and Mark T. Pacheco under the Federal False Claims Act on March 10, 2011 and unsealed on December 26, 2012. The case is entitled United States of America, ex rel., Ryan Ferguson and Mark T. Pacheco v. Bridgepoint Education, Inc., Ashford University and University of the Rockies. The qui tam complaint alleges, among other things, that since March 10, 2005, the Company caused its institutions, Ashford University and University of the Rockies, to violate the Federal False Claims Act by falsely certifying to the U.S. Department of Education that the institutions were in compliance with various regulations governing the Title IV programs, including those that require compliance with federal rules regarding the payment of incentive compensation to enrollment personnel, student disclosures, and misrepresentation in connection with the institutions' participation in the Title IV programs. The complaint seeks significant damages, penalties and other relief. On April 30, 2013, the relators petitioned the Court for voluntary dismissal of the complaint without prejudice. The U.S. Department of Justice filed a notice stipulating to the dismissal and the Court granted the dismissal on June 12, 2013. | |
In January 2013, the Company received notice that the U.S. Department of Justice had declined to intervene in a qui tam complaint filed in the U.S. District Court for the Southern District of California by James Carter and Roger Lengyel under the Federal False Claims Act on July 2, 2010 and unsealed on January 2, 2013. The case is entitled United States of America, ex rel., James Carter and Roger Lengyel v. Bridgepoint Education, Inc., Ashford University. The qui tam complaint alleges, among other things, that since March 2005, the Company and Ashford University have violated the Federal False Claims Act by falsely certifying to the U.S. Department of Education that Ashford University was in compliance with federal rules regarding the payment of incentive compensation to enrollment personnel in connection with the institution's participation in Title IV programs. Pursuant to a stipulation between the parties, the relators filed an amended complaint on May 10, 2013. The amended complaint is substantially similar to the original complaint and seeks significant damages, penalties and other relief. The Company intends to vigorously defend against the allegations set forth in the amended complaint and filed a motion to dismiss on June 24, 2013, which is currently pending. | |
Employee Class Actions | |
On October 24, 2012, a class action complaint was filed in California Superior Court by former employee Marla Montano naming the Company and Ashford University as defendants. The case is entitled Marla Montano v. Bridgepoint Education and Ashford University. The complaint asserts a putative class consisting of former employees who were terminated in January 2012 and July 2012 as a result of a mass layoff, relocation or termination and alleges that the defendants failed to comply with the notice and payment provisions of the California WARN Act. A substantially similar complaint, entitled Dilts v. Bridgepoint Education and Ashford University, was also filed in the same court on the same day by Austin Dilts making similar allegations and asserting the same putative class. The complaints seek back pay, the cost of benefits, penalties and interest on behalf of the putative class members, as well as other equitable relief and attorneys' fees. | |
The Company and Ashford University intend to vigorously defend against these actions. On January 25, 2013, the Company filed motions to compel binding arbitration with the Court, which were granted on May 20, 2013. The parties are in the process of selecting an arbitrator. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On October 31, 2013, the Company entered into a license agreement (the “Forbes Agreement”) with Forbes Education Holdings LLC (“Forbes”), a subsidiary of Forbes Media LLC, pursuant to which the Company has licensed certain trademarks and print and online content from Forbes, as well as certain intellectual property and other benefits. The Forbes Agreement has an initial term ending on December 31, 2025, with an option to renew for subsequent 12 year terms at the Company's election, subject to certain conditions. Under the agreement, the Company made a one-time payment of $15.0 million and is required to pay royalties based on a percentage of annual revenues attributable to Ashford University’s business-related programs. The Company's royalty payment obligation is subject to a $2.5 million annual minimum and a provision that no annual royalty payment shall be lower than that paid in the preceding year, subject to certain exceptions. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
The condensed consolidated financial statements include the accounts of Bridgepoint Education, Inc. and its wholly-owned subsidiaries. Intercompany transactions have been eliminated in consolidation. | |
Unaudited Interim Financial Information | ' |
Unaudited Interim Financial Information | |
The condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012, which was filed with the Securities and Exchange Commission (“SEC”) on March 12, 2013, and amended on May 17, 2013. In the opinion of management, these financial statements include all adjustments (consisting of normal recurring adjustments) considered necessary to present a fair statement of the Company's condensed consolidated financial position, results of operations and cash flows as of and for the periods presented. | |
Operating results for any interim period are not necessarily indicative of the results that may be expected for the full year. The year-end condensed consolidated balance sheet data were derived from audited financial statements, but do not include all disclosures required by GAAP for complete annual financial statements. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements. Actual results could differ from those estimates. | |
Receivables | ' |
Accounts Receivable and Allowance for Doubtful Accounts | |
Accounts receivable consists of student accounts receivable, which represent amounts due for tuition, technology fees and other fees from currently enrolled and former students. Students generally fund their education through grants and/or loans under various Title IV programs, tuition assistance from military and corporate employers or personal funds. | |
Accounts receivable are stated at the amount management expects to collect from outstanding balances. For accounts receivable, an allowance for doubtful accounts is estimated by management based on (i) an assessment of individual accounts receivable over a specific aging and amount (and all other balances on a pooled basis based on historical collection experience), (ii) consideration of the nature of the receivable accounts and (iii) potential changes in the business or economic environment. The provision for bad debts is recorded within the instructional costs and services line in the condensed consolidated statements of income. | |
Student Loans Receivable and Loan Loss Reserves | |
Student loans receivable consist of loans to qualified students and have a repayment period of 10 years from the date of graduation or withdrawal from the Company's institutions. The interest rate charged on student loans is a fixed rate of either 4.5% or 0.0% depending upon the repayment plan selected. If the student selects the rate of 0.0%, the student must pay $50 per month on the loan while enrolled in school and during the six months of grace period (after graduation or withdrawal) before the repayment period begins. On the 0.0% student loans, the Company imputes interest using the rate that would be used in a market transaction with similar terms. Interest income on student loans is recognized using the effective interest method and is recorded within other income in the condensed consolidated statements of income. Revenue recognized related to student loans was immaterial during each of the three and nine months ended September 30, 2013 and September 30, 2012, respectively. | |
Student loans receivable are stated at the amount management expects to collect from outstanding balances. For tuition related student loan receivables, the Company estimates an allowance for doubtful accounts, similar to that of accounts receivable, based on (i) an assessment of individual loans receivable over a specific aging and amount (and all other balances on a pooled basis based on historical collection experience), (ii) consideration of the nature of the receivable accounts, (iii) potential changes in the business or economic environment and (iv) related FICO scores and other industry metrics. The related provision for bad debts is recorded within the instructional costs and services line in the condensed consolidated statements of income. | |
For non-tuition related student loans, the Company utilizes an impairment methodology. Under this methodology, management determines whether a loan would be impaired if it is probable that the Company will be unable to collect all amounts due in accordance with the contractual terms of the individual loan agreement. This assessment is based on an analysis of several factors including aging history and delinquency trending, the risk characteristics and loan performance of the specific loans, as well as current economic conditions and industry trends. Based on these factors, the Company considers loans to be impaired when they reach a delinquency status that requires specialized collection efforts. The Company records a loss reserve for the full book value of the impaired loans. For the three and nine months ended September 30, 2013, there was $0.5 million and $0.8 million, respectively, recorded for loan loss reserves. The loan loss reserve is maintained at a level deemed adequate by management based on a periodic analysis of the individual loans and is recorded within the instructional costs and services line in the condensed consolidated statements of income. | |
Recently Adopted Accounting Pronouncements | ' |
Recently Adopted Accounting Pronouncements | |
In July 2012, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2012-02, which amends Accounting Standards Codification Topic 350, Testing Indefinite-Lived Intangible Assets for Impairment. The amended standard reduces the cost and complexity of testing indefinite-lived intangible assets, other than goodwill, for impairment by allowing companies to perform a qualitative assessment to determine whether further impairment testing is necessary, similar in approach to the goodwill impairment test. The guidance provided in ASU 2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company adopted ASU 2012-02, effective January 1, 2013, and such adoption did not have a material effect on our condensed consolidated financial statements. | |
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, or AOCI, which amends Accounting Standards Codification Topic 220, Comprehensive Income. Under ASU 2013-02, an entity is required to provide information about the amounts reclassified out of AOCI by component in a single note or on the face of the financial statements. The guidance provided in ASU 2013-02 is effective for interim and annual reporting periods beginning after December 15, 2012. The Company adopted ASU 2013-02, effective January 1, 2013, and such adoption did not have a material effect on our condensed consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||||||||||||||||||
Schedule of Quantifying Prior Year Misstatements Corrected in Current Year Financial Statements [Table Text Block] | ' | |||||||||||||||||||||||||||||||
The table below presents the impact of this revision on the Company's consolidated balance sheet data as of December 31, 2012, the consolidated statement of income data and consolidated cash flow data for the year ended December 31, 2012, as well as the impact on the quarterly periods during the year ended December 31, 2012. There was no impact to the cash flows from operating activities in any of the periods presented due to the revision. The following table is presented in thousands, except per share data: | ||||||||||||||||||||||||||||||||
As Reported | As Revised | As Reported | As Revised | As Reported | As Revised | As Reported | As Revised | |||||||||||||||||||||||||
31-Mar-12 | 30-Jun-12 | 30-Sep-12 | 31-Dec-12 | |||||||||||||||||||||||||||||
Consolidated balance sheet data: | ||||||||||||||||||||||||||||||||
Accounts receivable, net | $ | 92,853 | $ | 91,129 | $ | 99,617 | $ | 91,139 | $ | 111,010 | $ | 99,919 | $ | 75,177 | $ | 67,927 | ||||||||||||||||
Deferred income taxes | N/A | N/A | N/A | N/A | N/A | N/A | $ | 8,228 | $ | 10,936 | ||||||||||||||||||||||
Total current assets | $ | 442,893 | $ | 441,169 | $ | 468,242 | $ | 459,764 | $ | 463,606 | $ | 452,515 | $ | 496,147 | $ | 491,605 | ||||||||||||||||
Total assets | $ | 684,171 | $ | 682,447 | $ | 731,597 | $ | 723,119 | $ | 747,190 | $ | 736,099 | $ | 755,329 | $ | 750,787 | ||||||||||||||||
Accrued liabilities | $ | 67,409 | $ | 66,755 | $ | 57,858 | $ | 54,650 | $ | 56,609 | $ | 52,313 | N/A | N/A | ||||||||||||||||||
Total current liabilities | $ | 261,229 | $ | 260,575 | $ | 251,220 | $ | 248,012 | $ | 236,121 | $ | 231,925 | N/A | N/A | ||||||||||||||||||
Total liabilities | $ | 289,950 | $ | 289,296 | $ | 282,541 | $ | 279,333 | $ | 269,761 | $ | 265,565 | N/A | N/A | ||||||||||||||||||
Retained earnings | $ | 384,218 | $ | 383,148 | $ | 431,676 | $ | 426,406 | $ | 463,121 | $ | 456,226 | $ | 479,140 | $ | 474,598 | ||||||||||||||||
Total stockholders’ equity | $ | 394,221 | $ | 393,151 | $ | 449,056 | $ | 443,786 | $ | 477,429 | $ | 470,534 | $ | 496,112 | $ | 491,570 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 684,171 | $ | 682,447 | $ | 731,597 | $ | 723,119 | $ | 747,190 | $ | 736,099 | $ | 755,329 | $ | 750,787 | ||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
31-Mar-12 | 30-Jun-12 | 30-Sep-12 | 31-Dec-12 | |||||||||||||||||||||||||||||
Consolidated statement of income data: | ||||||||||||||||||||||||||||||||
Instructional costs and services (1) | $ | 82,500 | $ | 84,224 | $ | 78,525 | $ | 85,279 | $ | 88,373 | $ | 90,986 | $ | 105,875 | $ | 102,034 | ||||||||||||||||
Total costs and expenses | $ | 198,084 | $ | 199,808 | $ | 180,766 | $ | 187,520 | $ | 202,354 | $ | 204,967 | $ | 184,253 | $ | 180,412 | ||||||||||||||||
Operating income | $ | 52,353 | $ | 50,629 | $ | 75,536 | $ | 68,782 | $ | 49,722 | $ | 47,109 | $ | 25,103 | $ | 28,944 | ||||||||||||||||
Income before income taxes | $ | 53,036 | $ | 51,312 | $ | 76,390 | $ | 69,636 | $ | 50,677 | $ | 48,064 | $ | 25,980 | $ | 29,822 | ||||||||||||||||
Income tax expense | $ | 19,995 | $ | 19,341 | $ | 28,932 | $ | 26,378 | $ | 19,232 | $ | 18,244 | $ | 9,962 | $ | 11,450 | ||||||||||||||||
Net income | $ | 33,041 | $ | 31,971 | $ | 47,458 | $ | 43,258 | $ | 31,445 | $ | 29,820 | $ | 16,019 | $ | 18,372 | ||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.64 | $ | 0.61 | $ | 0.9 | $ | 0.82 | $ | 0.59 | $ | 0.56 | $ | 0.3 | $ | 0.34 | ||||||||||||||||
Diluted | $ | 0.59 | $ | 0.57 | $ | 0.84 | $ | 0.77 | $ | 0.56 | $ | 0.53 | $ | 0.29 | $ | 0.33 | ||||||||||||||||
Year to Date Period Ended | ||||||||||||||||||||||||||||||||
31-Mar-12 | 30-Jun-12 | 30-Sep-12 | 31-Dec-12 | |||||||||||||||||||||||||||||
Consolidated statement of income data: | ||||||||||||||||||||||||||||||||
Instructional costs and services (1) | $ | 82,500 | $ | 84,224 | $ | 161,025 | $ | 169,503 | $ | 249,398 | $ | 260,489 | $ | 355,273 | $ | 362,523 | ||||||||||||||||
Total costs and expenses | $ | 198,084 | $ | 199,808 | $ | 378,850 | $ | 387,328 | $ | 581,204 | $ | 592,295 | $ | 765,457 | $ | 772,707 | ||||||||||||||||
Operating income | $ | 52,353 | $ | 50,629 | $ | 127,889 | $ | 119,411 | $ | 177,611 | $ | 166,520 | $ | 202,714 | $ | 195,464 | ||||||||||||||||
Income before income taxes | $ | 53,036 | $ | 51,312 | $ | 129,426 | $ | 120,948 | $ | 180,103 | $ | 169,012 | $ | 206,084 | $ | 198,834 | ||||||||||||||||
Income tax expense | $ | 19,995 | $ | 19,341 | $ | 48,927 | $ | 45,719 | $ | 68,159 | $ | 63,963 | $ | 78,121 | $ | 75,413 | ||||||||||||||||
Net income | $ | 33,041 | $ | 31,971 | $ | 80,499 | $ | 75,229 | $ | 111,944 | $ | 105,049 | $ | 127,963 | $ | 123,421 | ||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.64 | $ | 0.61 | $ | 1.54 | $ | 1.44 | $ | 2.13 | $ | 2 | $ | 2.42 | $ | 2.33 | ||||||||||||||||
Diluted | $ | 0.59 | $ | 0.57 | $ | 1.43 | $ | 1.34 | $ | 2 | $ | 1.87 | $ | 2.29 | $ | 2.21 | ||||||||||||||||
Consolidated statement of cash flow data: | ||||||||||||||||||||||||||||||||
Net income | $ | 33,041 | $ | 31,971 | $ | 80,499 | $ | 75,229 | $ | 111,944 | $ | 105,049 | $ | 127,963 | $ | 123,421 | ||||||||||||||||
Provision for bad debts | $ | 14,945 | $ | 16,669 | $ | 24,923 | $ | 33,401 | $ | 41,327 | $ | 52,418 | $ | 66,446 | $ | 73,696 | ||||||||||||||||
Deferred income taxes | N/A | N/A | N/A | N/A | N/A | N/A | $ | (7,264 | ) | $ | (9,972 | ) | ||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 27,505 | $ | 26,851 | $ | 21,700 | $ | 18,492 | $ | 23,559 | $ | 19,363 | N/A | N/A | ||||||||||||||||||
(1) The amounts in the “as reported” column for instructional costs and services above reflect reclassified amounts for each respective period. For additional information, see also Note 3, “Reclassification.” |
Reclassification_Tables
Reclassification (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Reclassification [Abstract] | ' | |||||||||||||||
Reclassification | ' | |||||||||||||||
The following table depicts the Company's operating expenses as previously reported, as well as currently reclassified, on its condensed consolidated statements of income for each of the three month periods noted below (in thousands): | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||
2012 | 2012 | 2012 | 2012 | |||||||||||||
Instructional costs and services (as reported) | $ | 68,475 | $ | 65,395 | $ | 75,699 | $ | 105,875 | ||||||||
Impact of reclassification | 14,025 | 13,130 | 12,674 | — | ||||||||||||
Instructional costs and services (as reclassified) | 82,500 | 78,525 | 88,373 | 105,875 | ||||||||||||
Impact of bad debt revision | 1,724 | 6,754 | 2,613 | (3,841 | ) | |||||||||||
Instructional costs and services (as reclassified and revised) | 84,224 | 85,279 | 90,986 | 102,034 | ||||||||||||
Admissions advisory and marketing (as reported) | 80,063 | 78,608 | 90,291 | 65,239 | ||||||||||||
Impact of reclassification | 9,979 | 8,586 | 6,443 | — | ||||||||||||
Admissions advisory and marketing (as reclassified) | 90,042 | 87,194 | 96,734 | 65,239 | ||||||||||||
General and administrative (as reported) | 49,546 | 36,763 | 36,364 | 13,139 | ||||||||||||
Impact of reclassification | (24,004 | ) | (21,716 | ) | (19,117 | ) | — | |||||||||
General and administrative (as reclassified) | 25,542 | 15,047 | 17,247 | 13,139 | ||||||||||||
Total costs and expenses (as reclassified and revised) | $ | 199,808 | $ | 187,520 | $ | 204,967 | $ | 180,412 | ||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Computation of Basic and Diluted Earnings Per Common Share | ' | |||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 10,135 | $ | 29,820 | $ | 47,470 | $ | 105,049 | ||||||||
Denominator: | ||||||||||||||||
Weighted average number of common shares outstanding | 54,336 | 53,184 | 54,201 | 52,576 | ||||||||||||
Effect of dilutive options and restricted stock units | 1,996 | 2,349 | 1,497 | 3,261 | ||||||||||||
Effect of dilutive warrants | 99 | 223 | 97 | 252 | ||||||||||||
Diluted weighted average number of common shares outstanding | 56,431 | 55,756 | 55,795 | 56,089 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic earnings per share | $ | 0.19 | $ | 0.56 | $ | 0.88 | $ | 2 | ||||||||
Diluted earnings per share | $ | 0.18 | $ | 0.53 | $ | 0.85 | $ | 1.87 | ||||||||
Antidilutive Securities | ' | |||||||||||||||
For the periods indicated below, the computation of dilutive common shares outstanding excludes certain options and restricted stock units to purchase shares of common stock because their effect was anti-dilutive. | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Options | 2,564 | 3,405 | 3,493 | 1,364 | ||||||||||||
Restricted stock units | — | — | 1 | — | ||||||||||||
Significant_Balance_Sheet_Acco1
Significant Balance Sheet Accounts (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Significant Balance Sheet Accounts [Abstract] | ' | |||||||||||||||
Accounts Receivable and Student Loans Receivable, Net | ' | |||||||||||||||
Receivables, net, consist of the following (in thousands): | ||||||||||||||||
As of | As of | |||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Accounts receivable | $ | 102,782 | $ | 114,635 | ||||||||||||
Less allowance for doubtful accounts | (51,659 | ) | (46,708 | ) | ||||||||||||
Accounts receivable, net | $ | 51,123 | $ | 67,927 | ||||||||||||
Student loans receivable (non-tuition related) | $ | 7,954 | $ | 9,279 | ||||||||||||
Student loans receivable (tuition related) | 5,642 | 8,171 | ||||||||||||||
Student loans receivable | 13,596 | 17,450 | ||||||||||||||
Less allowance for doubtful accounts | (1,660 | ) | (2,307 | ) | ||||||||||||
Student loans receivable, net | $ | 11,936 | $ | 15,143 | ||||||||||||
Changes in the Allowance for Doubtful Accounts | ' | |||||||||||||||
The following table presents the changes in the allowance for doubtful accounts for the periods indicated (in thousands): | ||||||||||||||||
Beginning | Charged to | Deductions(1) | Ending | |||||||||||||
Balance | Expense | Balance | ||||||||||||||
Allowance for doubtful accounts receivable: | ||||||||||||||||
For the nine months ended September 30, 2013 | $ | (46,708 | ) | $ | 54,036 | $ | 49,085 | $ | (51,659 | ) | ||||||
For the nine months ended September 30, 2012 | (35,627 | ) | 52,424 | 45,113 | (42,938 | ) | ||||||||||
Allowance for student loans receivable (tuition related): | ||||||||||||||||
For the nine months ended September 30, 2013 | $ | (2,307 | ) | $ | (387 | ) | $ | 260 | $ | (1,660 | ) | |||||
For the nine months ended September 30, 2012 | (2,338 | ) | (6 | ) | — | (2,332 | ) | |||||||||
-1 | Deductions represent accounts written off, net of recoveries. | |||||||||||||||
Prepaid Expenses and Other Current Assets | ' | |||||||||||||||
Prepaid expenses and other current assets consist of the following (in thousands): | ||||||||||||||||
As of | As of | |||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Prepaid expenses | $ | 10,254 | $ | 9,367 | ||||||||||||
Prepaid licenses | 3,061 | 5,864 | ||||||||||||||
Prepaid insurance | 1,184 | 1,134 | ||||||||||||||
Interest receivable | 647 | 2,221 | ||||||||||||||
Other current assets | 911 | 1,224 | ||||||||||||||
Total prepaid expenses and other current assets | $ | 16,057 | $ | 19,810 | ||||||||||||
Property, Plant and Equipment | ' | |||||||||||||||
Property and equipment, net, consist of the following (in thousands): | ||||||||||||||||
As of | As of | |||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Land | $ | 7,091 | $ | 7,091 | ||||||||||||
Buildings and building improvements | 28,520 | 25,430 | ||||||||||||||
Furniture, office equipment and software | 94,145 | 85,709 | ||||||||||||||
Leasehold improvements | 24,410 | 23,756 | ||||||||||||||
Vehicles | 147 | 147 | ||||||||||||||
Total property and equipment | 154,313 | 142,133 | ||||||||||||||
Less accumulated depreciation and amortization | (59,743 | ) | (46,167 | ) | ||||||||||||
Total property and equipment, net | $ | 94,570 | $ | 95,966 | ||||||||||||
Goodwill and Intangibles, Net | ' | |||||||||||||||
Goodwill and intangibles, net, consist of the following (in thousands): | ||||||||||||||||
As of | As of | |||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Goodwill and indefinite-lived intangibles | $ | 3,424 | $ | 3,424 | ||||||||||||
Definite-lived intangible assets | $ | 13,496 | $ | 9,978 | ||||||||||||
Less accumulated amortization | (4,946 | ) | (2,663 | ) | ||||||||||||
Definite-lived intangible assets, net | 8,550 | 7,315 | ||||||||||||||
Total goodwill and intangibles, net | $ | 11,974 | $ | 10,739 | ||||||||||||
Accrued Liabilities | ' | |||||||||||||||
Accrued liabilities consist of the following (in thousands): | ||||||||||||||||
As of | As of | |||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Accrued salaries and wages | $ | 13,227 | $ | 11,585 | ||||||||||||
Accrued bonus | 1,883 | 1,603 | ||||||||||||||
Accrued vacation | 9,559 | 8,993 | ||||||||||||||
Accrued expenses | 17,514 | 15,924 | ||||||||||||||
Accrued income taxes payable | 1,384 | 6,535 | ||||||||||||||
Total accrued liabilities | $ | 43,567 | $ | 44,640 | ||||||||||||
Deferred Revenue and Student Deposits | ' | |||||||||||||||
Deferred revenue and student deposits consist of the following (in thousands): | ||||||||||||||||
As of | As of | |||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Deferred revenue | $ | 32,763 | $ | 44,967 | ||||||||||||
Student deposits | 93,684 | 130,090 | ||||||||||||||
Total deferred revenue and student deposits | $ | 126,447 | $ | 175,057 | ||||||||||||
Investments_Tables
Investments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Information of Short and Long-term Investments | ' | |||||||||||||||
The following tables summarize the fair value information of short and long-term investments as of September 30, 2013, and December 31, 2012, respectively (in thousands): | ||||||||||||||||
As of September 30, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Demand notes | $ | — | $ | 652 | $ | — | $ | 652 | ||||||||
Corporate notes and bonds | — | 21,359 | — | 21,359 | ||||||||||||
Total | $ | — | $ | 22,011 | $ | — | $ | 22,011 | ||||||||
As of December 31, 2012 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Demand notes | $ | — | $ | 415 | $ | — | $ | 415 | ||||||||
Corporate notes and bonds | — | 148,801 | — | 148,801 | ||||||||||||
Total | $ | — | $ | 149,216 | $ | — | $ | 149,216 | ||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Accounting Changes) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||||||
Consolidated balance sheet data: | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Accounts receivable, net | ' | $67,927 | $99,919 | $91,139 | $91,129 | $91,139 | ' | $99,919 | $67,927 | |||||||
Deferred income taxes | ' | 10,936 | ' | ' | ' | ' | ' | ' | 10,936 | |||||||
Total current assets | 545,196 | 491,605 | 452,515 | 459,764 | 441,169 | 459,764 | 545,196 | 452,515 | 491,605 | |||||||
Total assets | 765,190 | 750,787 | 736,099 | 723,119 | 682,447 | 723,119 | 765,190 | 736,099 | 750,787 | |||||||
Accrued liabilities | 43,567 | 44,640 | 52,313 | 54,650 | 66,755 | 54,650 | 43,567 | 52,313 | 44,640 | |||||||
Liabilities, Current | 179,336 | 224,285 | 231,925 | 248,012 | 260,575 | 248,012 | 179,336 | 231,925 | 224,285 | |||||||
Liabilities | 214,375 | 259,217 | 265,565 | 279,333 | 289,296 | 279,333 | 214,375 | 265,565 | 259,217 | |||||||
Retained earnings | 522,068 | 474,598 | 456,226 | 426,406 | 383,148 | 426,406 | 522,068 | 456,226 | 474,598 | |||||||
Total stockholdersb equity | 550,815 | 491,570 | 470,534 | 443,786 | 393,151 | 443,786 | 550,815 | 470,534 | 491,570 | |||||||
Total liabilities and stockholdersb equity | 765,190 | 750,787 | 736,099 | 723,119 | 682,447 | 723,119 | 765,190 | 736,099 | 750,787 | |||||||
Consolidated statement of income data: | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Instructional costs and services | 92,204 | 102,034 | [1] | 90,986 | [1] | 85,279 | [1] | 84,224 | [1] | 169,503 | [1] | 299,895 | 260,489 | [1] | 362,523 | [1] |
Total costs and expenses | 172,761 | 180,412 | 204,967 | 187,520 | 199,808 | 387,328 | 532,871 | 592,295 | 772,707 | |||||||
Operating income | 12,851 | 28,944 | 47,109 | 68,782 | 50,629 | 119,411 | 72,299 | 166,520 | 195,464 | |||||||
Income before income taxes | ' | 29,822 | 48,064 | 69,636 | 51,312 | 120,948 | ' | 169,012 | 198,834 | |||||||
Income tax expense | 3,503 | 11,450 | 18,244 | 26,378 | 19,341 | 45,719 | 27,465 | 63,963 | 75,413 | |||||||
Net income | 10,135 | 18,372 | 29,820 | 43,258 | 31,971 | 75,229 | 47,470 | 105,049 | 123,421 | |||||||
Earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Basic | $0.19 | $0.34 | $0.56 | $0.82 | $0.61 | $1.44 | $0.88 | $2 | $2.33 | |||||||
Diluted | $0.18 | $0.33 | $0.53 | $0.77 | $0.57 | $1.34 | $0.85 | $1.87 | $2.21 | |||||||
Consolidated statement of cash flow data: | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Net income | 10,135 | 18,372 | 29,820 | 43,258 | 31,971 | 75,229 | 47,470 | 105,049 | 123,421 | |||||||
Provision for bad debts | ' | ' | 16,669 | ' | ' | 33,401 | 53,649 | 52,418 | 73,696 | |||||||
Deferred income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -9,972 | |||||||
Accounts payable and accrued liabilities | ' | ' | 26,851 | ' | ' | 18,492 | 3,699 | 19,363 | ' | |||||||
As Reported | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Consolidated balance sheet data: | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Accounts receivable, net | ' | 75,177 | 111,010 | 99,617 | 92,853 | 99,617 | ' | 111,010 | 75,177 | |||||||
Deferred income taxes | ' | 8,228 | ' | ' | ' | ' | ' | ' | 8,228 | |||||||
Total current assets | ' | 496,147 | 463,606 | 468,242 | 442,893 | 468,242 | ' | 463,606 | 496,147 | |||||||
Total assets | ' | 755,329 | 747,190 | 731,597 | 684,171 | 731,597 | ' | 747,190 | 755,329 | |||||||
Accrued liabilities | ' | ' | 56,609 | 57,858 | 67,409 | 57,858 | ' | 56,609 | ' | |||||||
Liabilities, Current | ' | ' | 236,121 | 251,220 | 261,229 | 251,220 | ' | 236,121 | ' | |||||||
Liabilities | ' | ' | 269,761 | 282,541 | 289,950 | 282,541 | ' | 269,761 | ' | |||||||
Retained earnings | ' | 479,140 | 463,121 | 431,676 | 384,218 | 431,676 | ' | 463,121 | 479,140 | |||||||
Total stockholdersb equity | ' | 496,112 | 477,429 | 449,056 | 394,221 | 449,056 | ' | 477,429 | 496,112 | |||||||
Total liabilities and stockholdersb equity | ' | 755,329 | 747,190 | 731,597 | 684,171 | 731,597 | ' | 747,190 | 755,329 | |||||||
Consolidated statement of income data: | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Instructional costs and services | ' | 105,875 | [1] | 88,373 | 78,525 | 82,500 | ' | ' | ' | 355,273 | [1] | |||||
Total costs and expenses | ' | 184,253 | 202,354 | 180,766 | 198,084 | 378,850 | ' | 581,204 | 765,457 | |||||||
Operating income | ' | 25,103 | 49,722 | 75,536 | 52,353 | 127,889 | ' | 177,611 | 202,714 | |||||||
Income before income taxes | ' | 25,980 | 50,677 | 76,390 | 53,036 | 129,426 | ' | 180,103 | 206,084 | |||||||
Income tax expense | ' | 9,962 | 19,232 | 28,932 | 19,995 | 48,927 | ' | 68,159 | 78,121 | |||||||
Net income | ' | 16,019 | 31,445 | 47,458 | 33,041 | 80,499 | ' | 111,944 | 127,963 | |||||||
Earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Basic | ' | $0.30 | $0.59 | $0.90 | $0.64 | $1.54 | ' | $2.13 | $2.42 | |||||||
Diluted | ' | $0.29 | $0.56 | $0.84 | $0.59 | $1.43 | ' | $2 | $2.29 | |||||||
Consolidated statement of cash flow data: | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Net income | ' | 16,019 | 31,445 | 47,458 | 33,041 | 80,499 | ' | 111,944 | 127,963 | |||||||
Provision for bad debts | ' | ' | 14,945 | ' | ' | 24,923 | ' | 41,327 | 66,446 | |||||||
Deferred income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -7,264 | |||||||
Accounts payable and accrued liabilities | ' | ' | 27,505 | ' | ' | 21,700 | ' | 23,559 | ' | |||||||
Restatement Adjustment | As Reported | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Consolidated statement of income data: | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Instructional costs and services | ' | ' | 88,373 | [1] | 78,525 | [1] | 82,500 | [1] | 161,025 | [1] | ' | 249,398 | [1] | ' | ||
Adjustment to Reflect Changes to Aging of Accounts Receivable | Restatement Adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Consolidated statement of cash flow data: | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Provision for bad debts | ' | ($3,841) | $2,613 | $6,754 | $1,724 | ' | ' | ' | $7,200 | |||||||
[1] | The amounts in the bas reportedb column for instructional costs and services above reflect reclassified amounts for each respective period. For additional information, see also Note 3, bReclassification.b |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Receivables) (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Student loans receivable, repayment term following graduation or withdrawal | ' | '10 years |
Student loans receivable, grace period following graduation or withdrawal | ' | '6 months |
Amounts recorded for loan loss reserves | $500,000 | $800,000 |
Repayment Plan One | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Student loans receivable, interest rate | ' | 4.50% |
Repayment Plan Two | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Student loans receivable, interest rate | ' | 0.00% |
Student loans receivable, monthly payment during school and grace period | ' | $50 |
Reclassification_Details
Reclassification (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||||||
Reclassification [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Instructional costs and services | $92,204 | $102,034 | [1] | $90,986 | [1] | $85,279 | [1] | $84,224 | [1] | $169,503 | [1] | $299,895 | $260,489 | [1] | $362,523 | [1] |
Provision for bad debts | ' | ' | 16,669 | ' | ' | 33,401 | 53,649 | 52,418 | 73,696 | |||||||
Admissions advisory and marketing | 64,507 | 65,239 | 96,734 | 87,194 | 90,042 | ' | 179,632 | 273,970 | ' | |||||||
General and administrative | 16,050 | 13,139 | 17,247 | 15,047 | 25,542 | ' | 53,344 | 57,836 | ' | |||||||
Total costs and expenses | 172,761 | 180,412 | 204,967 | 187,520 | 199,808 | 387,328 | 532,871 | 592,295 | 772,707 | |||||||
As Originally Reported | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Reclassification [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Instructional costs and services | ' | 105,875 | 75,699 | 65,395 | 68,475 | ' | ' | ' | ' | |||||||
Admissions advisory and marketing | ' | 65,239 | 90,291 | 78,608 | 80,063 | ' | ' | ' | ' | |||||||
General and administrative | ' | 13,139 | 36,364 | 36,763 | 49,546 | ' | ' | ' | ' | |||||||
Original Restatement Adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Reclassification [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Instructional costs and services | ' | 0 | 12,674 | 13,130 | 14,025 | ' | ' | ' | ' | |||||||
Admissions advisory and marketing | ' | 0 | 6,443 | 8,586 | 9,979 | ' | ' | ' | ' | |||||||
General and administrative | ' | 0 | -19,117 | -21,716 | -24,004 | ' | ' | ' | ' | |||||||
As Reported | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Reclassification [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Instructional costs and services | ' | 105,875 | [1] | 88,373 | 78,525 | 82,500 | ' | ' | ' | 355,273 | [1] | |||||
Provision for bad debts | ' | ' | 14,945 | ' | ' | 24,923 | ' | 41,327 | 66,446 | |||||||
Total costs and expenses | ' | 184,253 | 202,354 | 180,766 | 198,084 | 378,850 | ' | 581,204 | 765,457 | |||||||
Adjustment to Reflect Changes to Aging of Accounts Receivable | Restatement Adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Reclassification [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Provision for bad debts | ' | ($3,841) | $2,613 | $6,754 | $1,724 | ' | ' | ' | $7,200 | |||||||
[1] | The amounts in the bas reportedb column for instructional costs and services above reflect reclassified amounts for each respective period. For additional information, see also Note 3, bReclassification.b |
Earnings_Per_Share_Basic_and_D
Earnings Per Share (Basic and Diluted Earnings Per Share) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $10,135 | $18,372 | $29,820 | $43,258 | $31,971 | $75,229 | $47,470 | $105,049 | $123,421 |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average number of common shares outstanding | 54,336 | ' | 53,184 | ' | ' | ' | 54,201 | 52,576 | ' |
Effect of dilutive options and restricted stock units | 1,996 | ' | 2,349 | ' | ' | ' | 1,497 | 3,261 | ' |
Effect of dilutive warrants | 99 | ' | 223 | ' | ' | ' | 97 | 252 | ' |
Diluted weighted average number of common shares outstanding | 56,431 | ' | 55,756 | ' | ' | ' | 55,795 | 56,089 | ' |
Earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings per share | $0.19 | $0.34 | $0.56 | $0.82 | $0.61 | $1.44 | $0.88 | $2 | $2.33 |
Diluted earnings per share | $0.18 | $0.33 | $0.53 | $0.77 | $0.57 | $1.34 | $0.85 | $1.87 | $2.21 |
Earnings_Per_Share_Antidilutiv
Earnings Per Share (Anti-dilutive Securities) (Details) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Options | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of dilutive common shares outstanding | 2,564 | 3,405 | 3,493 | 1,364 |
Restricted stock units | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of dilutive common shares outstanding | 0 | 0 | 1 | 0 |
Significant_Balance_Sheet_Acco2
Significant Balance Sheet Accounts (Receivables, Net) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Amounts recorded for loan loss reserves | $500,000 | $800,000 | ' |
Accounts Receivable, Net | ' | ' | ' |
Accounts receivable | 102,782,000 | 102,782,000 | 114,635,000 |
Less allowance for doubtful accounts | -51,659,000 | -51,659,000 | -46,708,000 |
Accounts receivable, net | 51,123,000 | 51,123,000 | 67,927,000 |
Student Loans Receivable, Net | ' | ' | ' |
Student loans receivable | 13,596,000 | 13,596,000 | 17,450,000 |
Less allowance for doubtful accounts | -1,660,000 | -1,660,000 | -2,307,000 |
Student loans receivable, net | 11,936,000 | 11,936,000 | 15,143,000 |
Current student loans receivable included within accounts receivable | 1,700,000 | 1,700,000 | 600,000 |
Student Loans Receivable (Non-tuition Related) | ' | ' | ' |
Student Loans Receivable, Net | ' | ' | ' |
Student loans receivable | 7,954,000 | 7,954,000 | 9,279,000 |
Student Loans Receivable (Tuition Related) | ' | ' | ' |
Student Loans Receivable, Net | ' | ' | ' |
Student loans receivable | $5,642,000 | $5,642,000 | $8,171,000 |
Significant_Balance_Sheet_Acco3
Significant Balance Sheet Accounts (Allowance for Doubtful Accounts) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||||
Allowance for Doubtful Accounts Receivable | Allowance for Doubtful Accounts Receivable | Allowance for Doubtful Student Loans Receivable (Tuition Related) | Allowance for Doubtful Student Loans Receivable (Tuition Related) | |||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ||||
Amounts recorded for loan loss reserves | $500,000 | $800,000 | ' | ' | ' | ' | ||||
Changes in allowance for doubtful accounts | ' | ' | ' | ' | ' | ' | ||||
Beginning Balance | ' | ' | -46,708,000 | -35,627,000 | -2,307,000 | -2,338,000 | ||||
Charged to Expense | ' | ' | 54,036,000 | 52,424,000 | -387,000 | -6,000 | ||||
Deductions | ' | ' | 49,085,000 | [1] | 45,113,000 | [1] | 260,000 | [1] | 0 | [1] |
Ending Balance | ' | ' | ($51,659,000) | ($42,938,000) | ($1,660,000) | ($2,332,000) | ||||
[1] | Deductions represent accounts written off, net of recoveries. |
Significant_Balance_Sheet_Acco4
Significant Balance Sheet Accounts (Prepaid Expenses and Other Current Assets) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Prepaid Expense and Other Assets, Current [Abstract] | ' | ' |
Prepaid expenses | $10,254 | $9,367 |
Prepaid licenses | 3,061 | 5,864 |
Prepaid insurance | 1,184 | 1,134 |
Interest receivable | 647 | 2,221 |
Other current assets | 911 | 1,224 |
Total prepaid expenses and other current assets | $16,057 | $19,810 |
Significant_Balance_Sheet_Acco5
Significant Balance Sheet Accounts (Property and Equipment, Net) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $154,313 | $142,133 |
Less accumulated depreciation and amortization | -59,743 | -46,167 |
Total property and equipment, net | 94,570 | 95,966 |
Land | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 7,091 | 7,091 |
Buildings and Building Improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 28,520 | 25,430 |
Furniture, Office Equipment and Software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 94,145 | 85,709 |
Leasehold Improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 24,410 | 23,756 |
Vehicles | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $147 | $147 |
Significant_Balance_Sheet_Acco6
Significant Balance Sheet Accounts (Goodwill and Intangibles, Net) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Goodwill and Intangibles, Net [Abstract] | ' | ' | ' | ' | ' |
Goodwill and indefinite-lived intangibles | $3,424,000 | ' | $3,424,000 | ' | $3,424,000 |
Definite-lived intangible assets | 13,496,000 | ' | 13,496,000 | ' | 9,978,000 |
Less accumulated amortization | -4,946,000 | ' | -4,946,000 | ' | -2,663,000 |
Definite-lived intangible assets, net | 8,550,000 | ' | 8,550,000 | ' | 7,315,000 |
Total goodwill and intangibles, net | 11,974,000 | ' | 11,974,000 | ' | 10,739,000 |
Amortization expense | 900,000 | 400,000 | 2,300,000 | 1,000,000 | ' |
Future amortization expense, 2013 | 900,000 | ' | 900,000 | ' | ' |
Future amortization expense, 2014 | 3,300,000 | ' | 3,300,000 | ' | ' |
Future amortization expense, 2015 | 2,200,000 | ' | 2,200,000 | ' | ' |
Future amortization expense, 2016 | $500,000 | ' | $500,000 | ' | ' |
Significant_Balance_Sheet_Acco7
Significant Balance Sheet Accounts (Accrued Liabilities) (Details) (USD $) | 3 Months Ended | |||||
Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Accrued salaries and wages | ' | $13,227,000 | $11,585,000 | ' | ' | ' |
Accrued bonus | ' | 1,883,000 | 1,603,000 | ' | ' | ' |
Accrued vacation | ' | 9,559,000 | 8,993,000 | ' | ' | ' |
Accrued expenses | ' | 17,514,000 | 15,924,000 | ' | ' | ' |
Accrued income taxes payable | ' | 1,384,000 | 6,535,000 | ' | ' | ' |
Total accrued liabilities | ' | 43,567,000 | 44,640,000 | 52,313,000 | 54,650,000 | 66,755,000 |
Severance costs | 5,900,000 | ' | ' | ' | ' | ' |
Instructional Costs and Services | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Severance costs | 4,800,000 | ' | ' | ' | ' | ' |
Admissions Advisory and Marketing | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Severance costs | 300,000 | ' | ' | ' | ' | ' |
General and Administrative | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Severance costs | $800,000 | ' | ' | ' | ' | ' |
Significant_Balance_Sheet_Acco8
Significant Balance Sheet Accounts (Deferred Revenue) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Revenue [Abstract] | ' | ' |
Deferred revenue | $32,763 | $44,967 |
Student deposits | 93,684 | 130,090 |
Total deferred revenue and student deposits | $126,447 | $175,057 |
Investments_Details
Investments (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Available-for-sale securities | $22,011,000 | ' | $22,011,000 | ' | $149,216,000 |
Other investments and securities, at cost | 99,500,000 | ' | 99,500,000 | ' | 109,500,000 |
Investments | 121,500,000 | ' | 121,500,000 | ' | 258,700,000 |
Unrealized gains (losses) on investments | 10,000 | 308,000 | -194,000 | 945,000 | ' |
Unrealized gains (losses) on investments, tax effect | 9,000 | 187,000 | -115,000 | 565,000 | ' |
Level 1 | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Available-for-sale securities | 0 | ' | 0 | ' | 0 |
Level 2 | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Available-for-sale securities | 22,011,000 | ' | 22,011,000 | ' | 149,216,000 |
Level 3 | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Available-for-sale securities | 0 | ' | 0 | ' | 0 |
Demand Notes | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Available-for-sale securities | 652,000 | ' | 652,000 | ' | 415,000 |
Demand Notes | Level 1 | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Available-for-sale securities | 0 | ' | 0 | ' | 0 |
Demand Notes | Level 2 | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Available-for-sale securities | 652,000 | ' | 652,000 | ' | 415,000 |
Demand Notes | Level 3 | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Available-for-sale securities | 0 | ' | 0 | ' | 0 |
Corporate Notes and Bonds | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Available-for-sale securities | 21,359,000 | ' | 21,359,000 | ' | 148,801,000 |
Corporate Notes and Bonds | Level 1 | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Available-for-sale securities | 0 | ' | 0 | ' | 0 |
Corporate Notes and Bonds | Level 2 | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Available-for-sale securities | 21,359,000 | ' | 21,359,000 | ' | 148,801,000 |
Corporate Notes and Bonds | Level 3 | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Available-for-sale securities | $0 | ' | $0 | ' | $0 |
Credit_Facilities_Details
Credit Facilities (Details) (USD $) | 0 Months Ended | 9 Months Ended | |
Apr. 13, 2012 | Sep. 30, 2013 | Nov. 05, 2013 | |
Line of Credit Facility [Line Items] | ' | ' | ' |
Revolving line of credit, amount outstanding | ' | 0 | ' |
Surety Bond Facility [Abstract] | ' | ' | ' |
Surety bond facility, available amount | ' | 12,000,000 | ' |
Surety bond facility, issued amount | ' | 7,000,000 | ' |
January 2010 Credit Facility | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Revolving line of credit, letters of credit outstanding | ' | 5,800,000 | ' |
April 2012 Credit Facility | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Revolving line of credit, current borrowing capacity | 50,000,000 | ' | ' |
Revolving line of credit, maximum borrowing capacity | 100,000,000 | ' | ' |
Revolving line of credit, maximum swing-line advances | 3,000,000 | ' | ' |
Revolving line of credit, term | '3 years | ' | ' |
Revolving line of credit, notice required for termination | ' | '5 days | ' |
Commitment fee, percentage on undrawn amount of letter of credit | 1.50% | ' | ' |
Revolving line of credit, facility fee, percentage | 0.25% | ' | ' |
Revolving line of credit, amount outstanding | ' | ' | $0 |
Base Rate | April 2012 Credit Facility | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Revolving line of credit, fixed portion of interest rate | 0.50% | ' | ' |
Eurodollar-based Rate | April 2012 Credit Facility | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Revolving line of credit, fixed portion of interest rate | 1.50% | ' | ' |
Federal Funds Effective Rate | Base Rate | April 2012 Credit Facility | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Revolving line of credit, variable portion of interest rate, addition to reference rate | 1.00% | ' | ' |
Daily Adjusting LIBOR | Base Rate | April 2012 Credit Facility | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Revolving line of credit, variable portion of interest rate, addition to reference rate | 1.00% | ' | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $3.30 | $3.40 | $10.70 | $9.90 |
Income tax benefit of stock-based compensation expense | 1.2 | 1.3 | 4 | 3.7 |
RSU's granted during the period | 13,060 | ' | ' | ' |
RSUs vested and were released during period | 200,000 | ' | 200,000 | ' |
Options | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock options exercised | 200,000 | ' | ' | ' |
Unrecognized compensation cost related to unvested options and RSUs | $15.50 | ' | $15.50 | ' |
Restricted stock units | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
RSUs granted during period, grant date fair value | $16.52 | ' | ' | ' |
Warrants_Details
Warrants (Details) (USD $) | 3 Months Ended |
Sep. 30, 2013 | |
Warrants and Rights Note Disclosure [Abstract] | ' |
Warrant exercise price, low | $1.13 |
Warrant exercise price, high | $9 |
Warrant purchase rights | 1 |
Warrants outstanding | 100,000 |
Warrants exercised | 7,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
Estimated annual effective tax rate | 38.90% | ' |
Effective income tax rate | 36.70% | ' |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $1,900,000 | ' |
Gross unrecognized tax benefits | 8,100,000 | 9,300,000 |
Gross unrecognized tax benefits that would impact effective tax rate if recognized | 5,300,000 | 6,600,000 |
Accrued interest and penalties related to uncertain tax positions | $1,800,000 | $1,700,000 |
Regulatory_Details
Regulatory (Details) | 12 Months Ended | ||
Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2009 | |
Ashford University | ' | ' | ' |
Regulatory [Line Items] | ' | ' | ' |
Cohort default rate | 10.10% | 10.20% | 15.30% |
University of the Rockies | ' | ' | ' |
Regulatory [Line Items] | ' | ' | ' |
Cohort default rate | 4.90% | 4.00% | 3.30% |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | ' |
Loss contingency, settlement agreement, consideration | $10.80 |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Oct. 31, 2013 |
Subsequent Event | ' | ' |
Subsequent Event [Line Items] | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '12 years | ' |
Finite-Lived License Agreements, Gross | ' | $15 |
Royalty Guarantees, Commitments, Amount | ' | $2.50 |