Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 25, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Entity Registrant Name | 'GRAND CANYON EDUCATION, INC. | ' |
Entity Central Index Key | '0001434588 | ' |
Current Fiscal Year End Date | '--12-14 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 46,697,959 |
Consolidated_Income_Statements
Consolidated Income Statements (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net revenue | $158,594 | $141,463 | $326,026 | $283,493 |
Costs and expenses: | ' | ' | ' | ' |
Instructional costs and services | 67,847 | 61,747 | 138,525 | 121,744 |
Admissions advisory and related, including $806 and $867 for the three months ended June 30, 2014 and 2013, respectively, and $1,611 and $1,621 for the six months ended June 30, 2014 and 2013, respectively, to related parties | 26,208 | 23,346 | 52,469 | 46,339 |
Advertising | 15,751 | 14,520 | 32,463 | 30,449 |
Marketing and promotional | 1,907 | 1,383 | 3,698 | 2,818 |
General and administrative | 8,994 | 8,978 | 17,548 | 17,029 |
Total costs and expenses | 120,707 | 109,974 | 244,703 | 218,379 |
Operating income | 37,887 | 31,489 | 81,323 | 65,114 |
Interest expense | -356 | -439 | -879 | -1,107 |
Interest and other income | 197 | 62 | 334 | 2,257 |
Income before income taxes | 37,728 | 31,112 | 80,778 | 66,264 |
Income tax expense | 14,659 | 12,048 | 31,421 | 26,255 |
Net income | $23,069 | $19,064 | $49,357 | $40,009 |
Earnings per share: | ' | ' | ' | ' |
Basic income per share | $0.51 | $0.43 | $1.09 | $0.90 |
Diluted income per share | $0.49 | $0.42 | $1.05 | $0.88 |
Basic weighted average shares outstanding | 45,598 | 44,681 | 45,403 | 44,463 |
Diluted weighted average shares outstanding | 46,990 | 45,929 | 46,917 | 45,690 |
Consolidated_Income_Statements1
Consolidated Income Statements (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Admissions advisory and related expenses to related parties | $806 | $867 | $1,611 | $1,621 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $23,069 | $19,064 | $49,357 | $40,009 |
Other comprehensive income, net of tax: | ' | ' | ' | ' |
Unrealized losses on available-for-sale securities, net of taxes of $8 and $0 for the three months ended June 30, 2014 and 2013, respectively, and $18 and $0 for the six months ended June 30, 2014 and 2013, respectively | -12 | -3 | -28 | -11 |
Unrealized (losses) gains on hedging derivatives, net of taxes of $95 and $335 for the three months ended June 30, 2014 and 2013, respectively, and $113 and $366 for the six months ended June 30, 2014 and 2013, respectively | -148 | 483 | -174 | 523 |
Comprehensive income | $22,909 | $19,544 | $49,155 | $40,521 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Unrealized losses on available-for-sale securities, taxes | $8 | $0 | $18 | $0 |
Unrealized (losses) gains on hedging derivatives, taxes | $95 | $335 | $113 | $366 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $20,214 | $55,824 |
Restricted cash and cash equivalents | 53,233 | 64,368 |
Investments | 156,492 | 108,420 |
Accounts receivable, net | 8,515 | 7,217 |
Income taxes receivable | ' | 3,599 |
Deferred income taxes | 5,472 | 5,159 |
Other current assets | 17,208 | 19,116 |
Total current assets | 261,134 | 263,703 |
Property and equipment, net | 416,242 | 339,596 |
Prepaid royalties | 3,799 | 4,641 |
Goodwill | 2,941 | 2,941 |
Other assets | 4,428 | 5,219 |
Total assets | 688,544 | 616,100 |
Current liabilities | ' | ' |
Accounts payable | 33,290 | 24,231 |
Accrued compensation and benefits | 21,059 | 20,093 |
Accrued liabilities | 15,604 | 14,554 |
Income taxes payable | 6,163 | 7 |
Student deposits | 54,867 | 66,772 |
Deferred revenue | 41,686 | 32,816 |
Due to related parties | 500 | 454 |
Current portion of capital lease obligations | 90 | 89 |
Current portion of notes payable | 6,611 | 6,607 |
Total current liabilities | 179,870 | 165,623 |
Capital lease obligations, less current portion | 452 | 497 |
Other noncurrent liabilities | 6,146 | 6,811 |
Deferred income taxes, noncurrent | 11,596 | 11,832 |
Notes payable, less current portion | 83,187 | 86,493 |
Total liabilities | 281,251 | 271,256 |
Commitments and contingencies | ' | ' |
Stockholders' equity | ' | ' |
Preferred stock, $0.01 par value, 10,000 shares authorized; 0 shares issued and outstanding at June 30, 2014 and December 31, 2013 | ' | ' |
Common stock, $0.01 par value, 100,000 shares authorized; 49,666 and 48,890 shares issued and 46,691 and 46,045 shares outstanding at June 30, 2014 and December 31, 2013, respectively | 497 | 489 |
Treasury stock, at cost, 2,975 and 2,845 shares of common stock at June 30, 2014 and December 31, 2013, respectively | -53,770 | -48,432 |
Additional paid-in capital | 151,528 | 132,904 |
Accumulated other comprehensive income | 156 | 358 |
Retained earnings | 308,882 | 259,525 |
Total stockholders' equity | 407,293 | 344,844 |
Total liabilities and stockholders' equity | $688,544 | $616,100 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 46,691,000 | 46,045,000 |
Common Stock [Member] | ' | ' |
Shares issued | 49,666,000 | 48,890,000 |
Treasury Stock [Member] | ' | ' |
Shares issued | 2,975,000 | 2,845,000 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] |
In Thousands | ||||||
Beginning Balance at Dec. 31, 2013 | $344,844 | $489 | ($48,432) | $132,904 | $358 | $259,525 |
Beginning Balance, Shares at Dec. 31, 2013 | ' | 48,890 | 2,845 | ' | ' | ' |
Comprehensive income | 49,155 | ' | ' | ' | -202 | 49,357 |
Common stock purchased for treasury | -1,676 | ' | -1,676 | ' | ' | ' |
Common stock purchased for treasury, Shares | 38 | ' | 38 | ' | ' | ' |
Restricted shares forfeited | 0 | ' | ' | ' | ' | ' |
Restricted shares forfeited, Shares | ' | ' | 15 | ' | ' | ' |
Exercise of stock options | 6,634 | 5 | ' | 6,629 | ' | ' |
Exercise of stock options, Shares | ' | 470 | ' | ' | ' | ' |
Excess tax benefits | 7,201 | ' | ' | 7,201 | ' | ' |
Share-based compensation | 1,135 | 3 | -3,662 | 4,794 | ' | ' |
Share-based compensation, Shares | ' | 306 | 77 | ' | ' | ' |
Ending Balance at Jun. 30, 2014 | $407,293 | $497 | ($53,770) | $151,528 | $156 | $308,882 |
Ending Balance, Shares at Jun. 30, 2014 | ' | 49,666 | 2,975 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows provided by operating activities: | ' | ' |
Net income | $49,357 | $40,009 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Share-based compensation | 4,837 | 4,905 |
Excess tax benefits from share-based compensation | -7,085 | -3,465 |
Provision for bad debts | 7,061 | 9,485 |
Depreciation and amortization | 14,000 | 12,141 |
Prepaid royalty impairment | 966 | ' |
Gain on proceeds received from note receivable | ' | -2,187 |
Deferred income taxes | -862 | 1,050 |
Other including fixed asset impairments | 2,090 | ' |
Changes in assets and liabilities: | ' | ' |
Restricted cash and cash equivalents | 11,135 | 4,508 |
Accounts receivable | -8,359 | -10,179 |
Prepaid expenses and other | 2,062 | -4,123 |
Due to/from related parties | 46 | -66 |
Accounts payable | -1,151 | 119 |
Accrued liabilities and employee related liabilities | 2,087 | 2,180 |
Income taxes receivable/payable | 16,956 | -7,842 |
Deferred rent | -665 | -446 |
Deferred revenue | 8,870 | 2,971 |
Student deposits | -11,905 | -5,024 |
Net cash provided by operating activities | 89,440 | 44,036 |
Cash flows used in investing activities: | ' | ' |
Capital expenditures | -82,013 | -38,008 |
Purchase of land and building related to off-site development | ' | -6,936 |
Purchases of investments | -87,217 | -55,219 |
Proceeds from sale or maturity of investments | 39,145 | 6,780 |
Restricted funds held for derivative collateral | ' | 140 |
Proceeds received from note receivable | ' | 29,187 |
Net cash used in investing activities | -130,085 | -64,056 |
Cash flows provided by financing activities: | ' | ' |
Principal payments on notes payable and capital lease obligations | -3,346 | -3,336 |
Repurchase of common shares including shares withheld in lieu of income taxes | -5,338 | -8,491 |
Excess tax benefits from share-based compensation | 7,085 | 3,465 |
Net proceeds from exercise of stock options | 6,634 | 14,072 |
Net cash provided by financing activities | 5,035 | 5,710 |
Net decrease in cash and cash equivalents | -35,610 | -14,310 |
Cash and cash equivalents, beginning of period | 55,824 | 105,111 |
Cash and cash equivalents, end of period | 20,214 | 90,801 |
Supplemental disclosure of cash flow information | ' | ' |
Cash paid for interest | 916 | 1,059 |
Cash paid for income taxes | 14,885 | 33,096 |
Cash received for income tax refunds | 2 | 4 |
Supplemental disclosure of non-cash investing and financing activities | ' | ' |
Purchases of property and equipment included in accounts payable | 10,210 | 2,033 |
Tax benefit of Spirit warrant intangible | 130 | 134 |
Shortfall tax expense from share-based compensation | $14 | $205 |
Nature_of_Business
Nature of Business | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Nature of Business | ' |
1. Nature of Business | |
Grand Canyon Education, Inc. (together with its subsidiaries, the “University”) is a regionally accredited provider of postsecondary education services focused on offering graduate and undergraduate degree programs in its core disciplines of education, healthcare, business, and liberal arts. The University offers courses online, on ground at its approximately 179 acre traditional ground campus in Phoenix, Arizona and onsite at facilities it leases and at facilities owned by third party employers. The University is accredited by The Higher Learning Commission of the North Central Association of Colleges and Schools. The University’s wholly-owned subsidiaries are primarily used to facilitate expansion of the University campus. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
2. Summary of Significant Accounting Policies | |
Principles of Consolidation | |
The consolidated financial statements include the accounts of the University and its wholly-owned subsidiaries. Intercompany transactions have been eliminated in consolidation. | |
Unaudited Interim Financial Information | |
The accompanying unaudited interim consolidated financial statements of the University have been prepared in accordance with U.S. generally accepted accounting principles, consistent in all material respects with those applied in its financial statements included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2013. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. Such interim financial information is unaudited but reflects all adjustments that in the opinion of management are necessary for the fair presentation of the interim periods presented. Interim results are not necessarily indicative of results for a full year. These consolidated financial statements should be read in conjunction with the University’s audited financial statements and footnotes included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2013 from which the December 31, 2013 balance sheet information was derived. | |
Restricted Cash and Cash Equivalents | |
A significant portion of the University’s revenue is received from students who participate in government financial aid and assistance programs. Restricted cash and cash equivalents primarily represent amounts received from the federal and state governments under various student aid grant and loan programs, such as Title IV. The University receives these funds subsequent to the completion of the authorization and disbursement process and holds them for the benefit of the student. The U.S. Department of Education (“Department of Education”) requires Title IV funds collected in advance of student billings to be segregated in a separate cash or cash equivalent account until the course begins. The University records all of these amounts as a current asset in restricted cash and cash equivalents until the cash is no longer restricted, at which time such amounts are reclassified as cash and cash equivalents. The majority of these funds remain as restricted cash and cash equivalents for an average of 60 to 90 days from the date of receipt. | |
Investments | |
The University considers its investments in municipal securities as available-for-sale securities. Available-for-sale securities are carried at fair value, determined using Level 2 of the hierarchy of valuation inputs, with the use of inputs other than quoted prices that are observable for the assets, with unrealized gains and losses, net of tax, reported as a separate component of other comprehensive income. Unrealized losses considered to be other-than-temporary are recognized currently in earnings. Amortization of premiums, accretion of discounts, interest and dividend income and realized gains and losses are included in interest and other income. | |
Note Receivable | |
The University purchased a note receivable from a financial institution at fair market value in the fourth quarter of 2012 for $27,000. The note bore interest at 11%, which represented the 6% rate of the loan plus the 5% default rate. The principal and most of the interest due on the note was paid in March 2013 resulting in the full return on investment of the note receivable and an additional gain in interest income and other income of $2,187 on the loan. However, the borrower has disputed certain amounts remaining due under the note agreement, including default interest in the amount of $432, a late payment penalty in the amount of $1,392, and a statutory trustee’s fee in the amount of $139. The funds disputed by the borrower, plus interest thereon, were deposited into an escrow account with the clerk of the Maricopa County Superior Court pending resolution of the disputed issues. In the third quarter of 2013, the court ruled in favor of the University with respect to the late penalty and default interest accrued thereon. Accordingly, the University recorded an other asset and interest and other income of $1,459 for the three months ended September 30, 2013. The court ordered the late penalty funds and interest thereon to be released to the University on October 28, 2013 unless prior to said date, borrower filed with the court a formal notice of appeal and simultaneously deposited an additional $344 into escrow with the clerk of the court representing continued interest accruing on the late penalty pending an appeal. On October 28, 2013 borrower deposited with the clerk of the court the required cash bond in the amount of $344 and filed its formal notice of appeal. The briefing phase of the appeal has been completed and the matter will be scheduled for oral argument at a date and time to be determined by the appellate court. The remaining default interest and statutory trustee’s fee components of the original disputed amount, plus interest accruing thereon at 11%, continue a resolution process through the court, have been treated as a gain contingency and will not be recorded as a receivable or income until the court makes its ruling. | |
Derivatives and Hedging | |
Derivative financial instruments are recorded on the balance sheet as assets or liabilities and re-measured at fair value at each reporting date. For derivatives designated as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. | |
Derivative financial instruments enable the University to manage its exposure to interest rate risk. The University does not engage in any derivative instrument trading activity. Credit risk associated with the University’s derivatives is limited to the risk that a derivative counterparty will not perform in accordance with the terms of the contract. Exposure to counterparty credit risk is considered low because these agreements have been entered into with institutions with strong credit ratings, and they are expected to perform fully under the terms of the agreements. | |
On February 27, 2013 the University entered into an interest rate corridor to manage its 30 Day LIBOR interest exposure related to its variable rate debt. The fair value of the interest rate corridor instrument as of June 30, 2014 was $1,523, which is included in other assets. The fair value of the derivative instrument was determined using a hypothetical derivative transaction and Level 2 of the hierarchy of valuation inputs. This derivative instrument was originally designated as a cash flow hedge of variable rate debt obligations. The adjustment of $174 for the six months ended June 30, 2014 for the effective portion of the loss on the derivatives is included as a component of other comprehensive income, net of taxes. | |
The interest rate corridor instrument reduces variable interest rate risk starting March 1, 2013 through December 20, 2019 with a notional amount of $90,000 as of June 30, 2014. The corridor instrument’s terms permits the University to hedge its interest rate risk at several thresholds; the University pays variable interest monthly based on the 30 Day LIBOR rates until that index reaches 1.5%. If 30 Day LIBOR is equal to 1.5% through 3.0%, the University pays 1.5%. If 30 Day LIBOR exceeds 3.0%, the University pays actual 30 Day LIBOR less 1.5%. | |
As of June 30, 2014 no derivative ineffectiveness was identified. Any ineffectiveness in the University’s derivative instrument designated as a hedge is reported in interest expense in the income statement. For the six months ended June 30, 2014, $5 of credit risk was recorded in interest expense for the interest rate corridor. At June 30, 2014, the University does not expect to reclassify gains or losses on derivative instruments from accumulated other comprehensive income (loss) into earnings during the next 12 months. | |
Fair Value of Financial Instruments | |
As of June 30, 2014, the carrying value of cash and cash equivalents, investments, accounts receivable, account payable and accrued compensation and benefits and accrued liabilities expenses approximate their fair value based on the liquidity or the short-term maturities of these instruments. The carrying value of notes payable approximates fair value as it is based on variable rate index. The carrying value of capital lease obligations approximate fair value based upon market interest rates available to the University for debt of similar risk and maturities. Derivative financial instruments are carried at fair value, determined using Level 2 of the hierarchy of valuation inputs, with the use of inputs other than quoted prices that are observable for the asset. | |
The fair value of investments, primarily municipal securities, including municipal bond portfolios, was determined using Level 2 of the hierarchy of valuation inputs, with the use of inputs other than quoted prices that are observable for the assets. The municipal securities are comprised of city and county bonds related to schools, water and sewer, utilities, transportation, healthcare and housing. Because these securities are held by the University as investments, assessment of non-performance risk is not applicable as such considerations are only applicable in evaluating the fair value measurements for liabilities. | |
Revenue Recognition | |
Net revenues consist primarily of tuition and fees derived from courses taught by the University online, on ground at its traditional campus in Phoenix, Arizona, and onsite at facilities it leases and at facilities owned by third party employers, as well as from related educational resources that the University provides to its students, such as access to online materials. Tuition revenue and most fees from related educational resources are recognized pro-rata over the applicable period of instruction, net of scholarships provided by the University. For the six months ended June 30, 2014 and 2013, the University’s revenue was reduced by approximately $63,632 and $49,559, respectively, as a result of scholarships that the University offered to students. The University maintains an institutional tuition refund policy, which provides for all or a portion of tuition to be refunded if a student withdraws during stated refund periods. Certain states in which students reside impose separate, mandatory refund policies, which override the University’s policy to the extent in conflict. If a student withdraws at a time when only a portion, or none, of the tuition is refundable, then in accordance with its revenue recognition policy, the University continues to recognize the tuition that was not refunded pro-rata over the applicable period of instruction. Since the University recognizes revenue pro-rata over the term of the course and because, under its institutional refund policy, the amount subject to refund is never greater than the amount of the revenue that has been deferred, under the University’s accounting policies revenue is not recognized with respect to amounts that could potentially be refunded. Sales tax collected from students is excluded from net revenues. Collected but unremitted sales tax is included as an accrued liability in the consolidated balance sheets. The University also charges online students an upfront learning management fee, which is deferred and recognized over the average expected term of a student. Costs that are direct and incremental to new online students are also deferred and recognized ratably over the average expected term of a student. Deferred revenue and student deposits in any period represent the excess of tuition, fees, and other student payments received as compared to amounts recognized as revenue on the income statement and are reflected as current liabilities in the accompanying consolidated balance sheet. The University’s educational programs have starting and ending dates that differ from its fiscal quarters. Therefore, at the end of each fiscal quarter, a portion of revenue from these programs is not yet earned. Other revenues may be recognized as sales occur or services are performed. | |
Allowance for Doubtful Accounts | |
All students are required to select both a primary and secondary payment option with respect to amounts due to the University for tuition, fees and other expenses. The most common payment option for the University’s students is financial aid. In instances where a student selects financial aid as the primary payment option, he or she often selects personal cash as the secondary option. If a student who has selected financial aid as his or her primary payment option withdraws prior to the end of a course but after the date that the University’s institutional refund period has expired, the student will have incurred the obligation to pay the full cost of the course. If the withdrawal occurs before the date at which the student has earned 100% of his or her financial aid, the University will have a return to Title IV requirement and the student will owe the University all amounts incurred that are in excess of the amount of financial aid that the student earned and that the University is entitled to retain. In this case, the University must collect the receivable using the student’s second payment option. In instances in which the students chose to receive living expense funds as part of their financial aid disbursements, the University is required to return the unearned portion of these funds as well and then collect these amounts from the students. | |
The University records an allowance for doubtful accounts for estimated losses resulting from the inability, failure or refusal of its students to make required payments, which includes the recovery of financial aid funds advanced to a student for amounts in excess of the student’s cost of tuition and related fees. The University determines the adequacy of its allowance for doubtful accounts based on an analysis of its historical bad debt experience, current economic trends, the aging of the accounts receivable and student status. The University applies reserves to its receivables based upon an estimate of the risk presented by the age of the receivables and student status. The University writes off accounts receivable balances at the earlier of the time the balances were deemed uncollectible, or one year after the revenue is generated. However, if a student becomes inactive, the University writes off the account 150 days after becoming delinquent. The University reflects accounts receivable with an offsetting allowance as long as management believes there is a reasonable possibility of collection. Bad debt expense is recorded as an instructional costs and services expense in the consolidated income statement. | |
Long-Lived Assets (other than goodwill) | |
The University evaluates the recoverability of our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future net cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. | |
Instructional Costs and Services | |
Instructional costs and services consist primarily of costs related to the administration and delivery of the University’s educational programs. This expense category includes salaries, benefits and share-based compensation for full-time and adjunct faculty and administrative personnel, information technology costs, bad debt expense, curriculum and new program development costs (which are expensed as incurred) and costs associated with other support groups that provide services directly to the students. This category also includes an allocation of depreciation, amortization, rent, and occupancy costs attributable to the provision of educational services, primarily at the University’s Phoenix, Arizona campus. | |
Admissions Advisory and Related | |
Admissions advisory and related expenses include salaries and benefits for admissions advisory personnel and, revenue share expense as well as an allocation of depreciation, amortization, rent and occupancy costs attributable to the admissions advisory personnel. | |
Advertising | |
Advertising expenses include brand advertising, marketing leads and other branding activities. Advertising costs are expensed as incurred. | |
Marketing and Promotional | |
Marketing and promotional expenses include salaries, benefits and share-based compensation for marketing personnel, and other promotional expenses. This category also includes an allocation of depreciation, amortization, rent, and occupancy costs attributable to marketing and promotional activities. Marketing and promotional costs are expensed as incurred. | |
General and Administrative | |
General and administrative expenses include salaries, benefits and share-based compensation of employees engaged in corporate management, finance, human resources, compliance, and other corporate functions. General and administrative expenses also include an allocation of depreciation, amortization, rent, and occupancy costs attributable to the departments providing general and administrative functions. | |
Commitments and Contingencies | |
The University accrues for contingent obligations when it is probable that a liability has been incurred and the amount is reasonably estimable. When the University becomes aware of a claim or potential claim, the likelihood of any loss exposure is assessed. If it is probable that a loss will result and the amount of the loss is estimable, the University records a liability for the estimated loss. If the loss is not probable or the amount of the potential loss is not estimable, the University will disclose the claim if the likelihood of a potential loss is reasonably possible and the amount of the potential loss could be material. Estimates that are particularly sensitive to future changes include tax, legal, and other regulatory matters, which are subject to change as events evolve, and as additional information becomes available during the administrative and litigation process. The University expenses legal fees as incurred. | |
Use of Estimates | |
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | |
Segment Information | |
The University operates as a single educational delivery operation using a core infrastructure that serves the curriculum and educational delivery needs of both its ground and online students regardless of geography. The University’s Chief Executive Officer manages the University’s operations as a whole and no expense or operating income information is generated or evaluated on any component level. | |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued, “Revenue from Contracts with Customers.” The standard is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is not permitted. Accordingly, the standard is effective for us on January 1, 2017. The University is currently evaluating the impact that the standard will have on our financial condition, results of operations and disclosures. | |
The University has determined no other recent accounting pronouncements apply to its operations or would otherwise have a material impact on its financial statements. |
Investments
Investments | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||
Investments | ' | ||||||||||||||||
3. Investments | |||||||||||||||||
The following is a summary of amounts included in investments as of June 30, 2014 and December 31, 2013. The University considered all investments as available for sale. | |||||||||||||||||
As of June 30, 2014 | |||||||||||||||||
Adjusted | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | (Losses) | Value | |||||||||||||||
Municipal securities | $ | 156,512 | $ | 12 | $ | (32 | ) | $ | 156,492 | ||||||||
As of December 31, 2013 | |||||||||||||||||
Adjusted | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | (Losses) | Value | |||||||||||||||
Municipal securities | $ | 108,393 | $ | 35 | $ | (8 | ) | $ | 108,420 | ||||||||
The cash flows of municipal securities are backed by the issuing municipality’s credit worthiness. All municipal securities are due in one year or less as of June 30, 2014. For the six months ended June 30, 2014, the net unrealized loss on available-for-sale securities was $28, net of taxes. |
Net_Income_Per_Common_Share
Net Income Per Common Share | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Net Income Per Common Share | ' | ||||||||||||||||
4. Net Income Per Common Share | |||||||||||||||||
Basic net income per common share is calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the assumed conversion of all potentially dilutive securities, consisting of stock options and restricted stock awards, for which the estimated fair value exceeds the exercise price, less shares which could have been purchased with the related proceeds, unless anti-dilutive. For employee equity awards, repurchased shares are also included for any unearned compensation adjusted for tax. | |||||||||||||||||
The table below reflects the calculation of the weighted average number of common shares outstanding, on an as if converted basis, used in computing basic and diluted earnings per common share. | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Denominator: | |||||||||||||||||
Basic weighted average shares outstanding | 45,598 | 44,681 | 45,403 | 44,463 | |||||||||||||
Effect of dilutive stock options and restricted stock | 1,392 | 1,248 | 1,514 | 1,227 | |||||||||||||
Diluted weighted average shares outstanding | 46,990 | 45,929 | 46,917 | 45,690 | |||||||||||||
Diluted weighted average shares outstanding exclude the incremental effect of shares that would be issued upon the assumed exercise of stock options. For the six months ended June 30, 2014 and 2013, approximately 117 and 264, respectively, of the University’s stock options and restricted stock awards outstanding were excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive. These options could be dilutive in the future. |
Allowance_for_Doubtful_Account
Allowance for Doubtful Accounts | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||
Allowance for Doubtful Accounts | ' | ||||||||||||||||
5. Allowance for Doubtful Accounts | |||||||||||||||||
Balance at | Charged to | Deductions(1) | Balance at | ||||||||||||||
Beginning of | Expense | End of | |||||||||||||||
Period | Period | ||||||||||||||||
Six months ended June 30, 2014 | $ | 9,678 | 7,061 | (8,970 | ) | $ | 7,769 | ||||||||||
Six months ended June 30, 2013 | $ | 8,657 | 9,485 | (9,050 | ) | $ | 9,092 | ||||||||||
-1 | Deductions represent accounts written off, net of recoveries. |
Property_and_Equipment_Net
Property and Equipment, Net | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Property and Equipment, Net | ' | ||||||||
6. Property and Equipment, net | |||||||||
Property and equipment, net consist of the following: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Land | $ | 37,599 | $ | 21,820 | |||||
Land improvements | 5,176 | 5,176 | |||||||
Buildings | 232,382 | 222,402 | |||||||
Equipment under capital leases | 5,310 | 5,310 | |||||||
Leasehold improvements | 35,274 | 32,243 | |||||||
Computer equipment | 69,431 | 64,773 | |||||||
Furniture, fixtures and equipment | 34,207 | 32,583 | |||||||
Internally developed software | 18,143 | 15,606 | |||||||
Other | 1,099 | 1,099 | |||||||
Construction in progress | 75,825 | 23,467 | |||||||
514,446 | 424,479 | ||||||||
Less accumulated depreciation and amortization | (98,204 | ) | (84,883 | ) | |||||
Property and equipment, net | $ | 416,242 | $ | 339,596 | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
7. Commitments and Contingencies | |||||
Leases | |||||
The University leases certain land, buildings and equipment under non-cancelable operating leases expiring at various dates through 2022. Future minimum lease payments under operating leases due each year are as follows at June 30, 2014: | |||||
2014 (remaining six months) | $ | 3,718 | |||
2015 | 6,893 | ||||
2016 | 5,826 | ||||
2017 | 4,985 | ||||
2018 | 4,504 | ||||
Thereafter | 8,316 | ||||
Total minimum payments | $ | 34,242 | |||
Total rent expense and related taxes and operating expenses under operating leases for the six months ended June 30, 2014 and 2013 were $3,910 and $3,464, respectively. | |||||
Legal Matters | |||||
From time to time, the University is a party to various lawsuits, claims, and other legal proceedings that arise in the ordinary course of business, some of which are covered by insurance. When the University is aware of a claim or potential claim, it assesses the likelihood of any loss or exposure. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, the University records a liability for the loss. If the loss is not probable or the amount of the loss cannot be reasonably estimated, the University discloses the nature of the specific claim if the likelihood of a potential loss is reasonably possible and the amount involved could be material. With respect to the majority of pending litigation matters, the University’s ultimate legal and financial responsibility, if any, cannot be estimated with certainty and, in most cases, any potential losses related to those matters are not considered probable. | |||||
Upon resolution of any pending legal matters, the University may incur charges in excess of presently established reserves. Management does not believe that any such charges would, individually or in the aggregate, have a material adverse effect on the University’s financial condition, results of operations or cash flows. | |||||
Tax Reserves, Non-Income Tax Related | |||||
From time to time the University has exposure to various non-income tax related matters that arise in the ordinary course of business. At June 30, 2014 and December 31, 2013, the University reserved approximately $712 and $729, respectively, for tax matters where its ultimate exposure is considered probable and the potential loss can be reasonably estimated. | |||||
Income Taxes | |||||
During the second quarter ended June 30, 2014, the Internal Revenue Service (“IRS”) commenced an examination of the University’s 2011 income tax return. |
ShareBased_Compensation
Share-Based Compensation | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||
8. Share-Based Compensation | |||||||||||||||||
Incentive Plan | |||||||||||||||||
Restricted Stock | |||||||||||||||||
During the six months ended June 30, 2014, the University granted 298 shares of common stock with a service vesting condition to certain of its executives, officers, faculty and employees. The restricted shares have voting rights and vest in five annual installments of 20% starting on March 1, 2015 and each of the four anniversaries of the vesting date following the date of grant. Upon vesting, shares will be held in lieu of taxes equivalent to the minimum statutory tax withholding required to be paid when the restricted stock vests. During the six months ended June 30, 2014, the University withheld 77 shares of common stock in lieu of taxes at a cost of $3,662 on the restricted stock vesting dates. In May 2014, the University granted 8 shares of common stock to certain of the non-employee members of the University’s board of directors. The restricted shares granted to these directors have voting rights and vest on the earlier of (a) the one year anniversary of the date of grant or (b) immediately prior to the following year’s annual meeting of stockholders, subject to acceleration in the event of a change in control. | |||||||||||||||||
A summary of the activity related to restricted stock granted under the University’s Incentive Plan since December 31, 2013 is as follows: | |||||||||||||||||
Total | Weighted Average | ||||||||||||||||
Shares | Grant Date | ||||||||||||||||
Fair Value per Share | |||||||||||||||||
Outstanding as of December 31, 2013 | 983 | $ | 21.34 | ||||||||||||||
Granted | 306 | $ | 46.18 | ||||||||||||||
Vested | (219 | ) | $ | 21.2 | |||||||||||||
Forfeited, canceled or expired | (15 | ) | $ | 28.37 | |||||||||||||
Outstanding as of June 30, 2014 | 1,055 | $ | 28.48 | ||||||||||||||
Stock Options | |||||||||||||||||
During the six months ended June 30, 2014, no options were granted. A summary of the activity related to stock options granted under the University’s Incentive Plan since December 31, 2013 is as follows: | |||||||||||||||||
Summary of Stock Options Outstanding | |||||||||||||||||
Total | Weighted | Weighted | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value ($)(1) | |||||||||||||||
Price per | Contractual | ||||||||||||||||
Share | Term (Years) | ||||||||||||||||
Outstanding as of December 31, 2013 | 3,023 | $ | 14.8 | ||||||||||||||
Granted | — | $ | — | ||||||||||||||
Exercised | (470 | ) | $ | 14.12 | |||||||||||||
Forfeited, canceled or expired | (13 | ) | $ | 17.25 | |||||||||||||
Outstanding as of June 30, 2014 | 2,540 | $ | 14.91 | 5.39 | $ | 78,903 | |||||||||||
Exercisable as of June 30, 2014 | 1,940 | $ | 14.23 | 5.05 | $ | 61,563 | |||||||||||
Available for issuance as of June 30, 2014 | 2,108 | ||||||||||||||||
-1 | Aggregate intrinsic value represents the value of the University’s closing stock price on June 30, 2014 ($45.97) in excess of the exercise price multiplied by the number of shares underlying options outstanding or exercisable, as applicable. | ||||||||||||||||
Share-based Compensation Expense | |||||||||||||||||
The table below outlines share-based compensation expense for the six months ended June 30, 2014 and 2013 related to restricted stock and stock options granted: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Instructional costs and services | $ | 2,874 | $ | 2,546 | |||||||||||||
Admissions advisory and related expenses | 80 | 64 | |||||||||||||||
Marketing and promotional | 131 | 109 | |||||||||||||||
General and administrative | 1,752 | 2,186 | |||||||||||||||
Share-based compensation expense included in operating expenses | 4,837 | 4,905 | |||||||||||||||
Tax effect of share-based compensation | (1,935 | ) | (1,962 | ) | |||||||||||||
Share-based compensation expense, net of tax | $ | 2,902 | $ | 2,943 | |||||||||||||
Regulatory
Regulatory | 6 Months Ended |
Jun. 30, 2014 | |
Text Block [Abstract] | ' |
Regulatory | ' |
9. Regulatory | |
The University is subject to extensive regulation by federal and state governmental agencies and accrediting bodies. In particular, the Higher Education Act of 1965, as amended (the “Higher Education Act”), and the regulations promulgated thereunder by the Department of Education, subject the University to significant regulatory scrutiny on the basis of numerous standards that schools must satisfy in order to participate in the various federal student financial assistance programs under Title IV of the Higher Education Act. | |
To participate in the Title IV programs, an institution must be authorized to offer its programs of instruction by the relevant agency of the state in which it is located, accredited by an accrediting agency recognized by the Department of Education and certified as eligible by the Department of Education. The Department of Education will certify an institution to participate in the Title IV programs only after the institution has demonstrated compliance with the Higher Education Act and the Department of Education’s extensive regulations regarding institutional eligibility. An institution must also demonstrate its compliance to the Department of Education on an ongoing basis. As of June 30, 2014, management believes the University is in compliance with the applicable regulations in all material respects. | |
Because the University operates in a highly regulated industry, it, like other industry participants, may be subject from time to time to investigations, claims of non-compliance, or lawsuits by governmental agencies or third parties, which allege statutory violations, regulatory infractions, or common law causes of action. While there can be no assurance that regulatory agencies or third parties will not undertake investigations or make claims against the University, or that such claims, if made, will not have a material adverse effect on the University’s business, results of operations or financial condition, management believes the University is in compliance with applicable regulations in all material respects. | |
As part of its oversight of the educational institutions participating in the Title IV programs under the Higher Education Act of 1965, as amended, the Department of Education periodically conducts program reviews at selected schools that receive Title IV funds for the purpose of evaluating the school’s compliance with the Title IV requirements, identifying any liabilities to the Department of Education for errors in compliance, and improving future institutional capabilities. On April 13, 2014, the University received official notification from the Department of Education of the Department of Education’s intent to conduct a program review at Grand Canyon University. The program review included the University’s administration of the Title IV programs in which it participates, its administration of the Clery Act and related regulations, and its compliance with the requirements of the Drug-Free Schools and Communities Act for the 2012-2013 and 2013-2014 award years. | |
On June 13, 2014, following completion of the program review, the University received from the Department of Education an expedited final program review determination letter. The final program review determination letter set forth three findings, each of which involved individual student-specific information gathering and/or reporting errors and all of which the University promptly corrected to the Department of Education’s satisfaction. Accordingly, the final program review determination letter concluded that the University had taken all corrective actions necessary to resolve the findings and that the program review has been closed with no further action required. |
Treasury_Stock
Treasury Stock | 6 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | ' |
Treasury Stock | ' |
10. Treasury Stock | |
The Board of Directors has authorized the University to repurchase up to $75,000 in aggregate of common stock, from time to time, depending on market conditions and other considerations. The current expiration date on the repurchase authorization is September 30, 2014. Repurchases occur at the University’s discretion. Repurchases may be made in the open market or in privately negotiated transactions, pursuant to the applicable Securities and Exchange Commission rules. The amount and timing of future share repurchases, if any, will be made as market and business conditions warrant. Since its approval of the share repurchase plan, the University has purchased 2,787 shares of common stock at an aggregate cost of $49,135. This includes 38 shares of common stock at an aggregate cost of $1,676 during the six months ended June 30, 2014, which are recorded at cost in the accompanying June 30, 2014 consolidated balance sheet and statement of stockholders’ equity. At June 30, 2014, there remained $25,865 available under its share repurchase authorization. Shares repurchased in lieu of taxes are not included in the repurchase plan totals as they were approved in conjunction with the restricted share awards. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
The consolidated financial statements include the accounts of the University and its wholly-owned subsidiaries. Intercompany transactions have been eliminated in consolidation. | |
Unaudited Interim Financial Information | ' |
Unaudited Interim Financial Information | |
The accompanying unaudited interim consolidated financial statements of the University have been prepared in accordance with U.S. generally accepted accounting principles, consistent in all material respects with those applied in its financial statements included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2013. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. Such interim financial information is unaudited but reflects all adjustments that in the opinion of management are necessary for the fair presentation of the interim periods presented. Interim results are not necessarily indicative of results for a full year. These consolidated financial statements should be read in conjunction with the University’s audited financial statements and footnotes included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2013 from which the December 31, 2013 balance sheet information was derived. | |
Restricted Cash and Cash Equivalents | ' |
Restricted Cash and Cash Equivalents | |
A significant portion of the University’s revenue is received from students who participate in government financial aid and assistance programs. Restricted cash and cash equivalents primarily represent amounts received from the federal and state governments under various student aid grant and loan programs, such as Title IV. The University receives these funds subsequent to the completion of the authorization and disbursement process and holds them for the benefit of the student. The U.S. Department of Education (“Department of Education”) requires Title IV funds collected in advance of student billings to be segregated in a separate cash or cash equivalent account until the course begins. The University records all of these amounts as a current asset in restricted cash and cash equivalents until the cash is no longer restricted, at which time such amounts are reclassified as cash and cash equivalents. The majority of these funds remain as restricted cash and cash equivalents for an average of 60 to 90 days from the date of receipt. | |
Investments | ' |
Investments | |
The University considers its investments in municipal securities as available-for-sale securities. Available-for-sale securities are carried at fair value, determined using Level 2 of the hierarchy of valuation inputs, with the use of inputs other than quoted prices that are observable for the assets, with unrealized gains and losses, net of tax, reported as a separate component of other comprehensive income. Unrealized losses considered to be other-than-temporary are recognized currently in earnings. Amortization of premiums, accretion of discounts, interest and dividend income and realized gains and losses are included in interest and other income. | |
Note Receivable | ' |
Note Receivable | |
The University purchased a note receivable from a financial institution at fair market value in the fourth quarter of 2012 for $27,000. The note bore interest at 11%, which represented the 6% rate of the loan plus the 5% default rate. The principal and most of the interest due on the note was paid in March 2013 resulting in the full return on investment of the note receivable and an additional gain in interest income and other income of $2,187 on the loan. However, the borrower has disputed certain amounts remaining due under the note agreement, including default interest in the amount of $432, a late payment penalty in the amount of $1,392, and a statutory trustee’s fee in the amount of $139. The funds disputed by the borrower, plus interest thereon, were deposited into an escrow account with the clerk of the Maricopa County Superior Court pending resolution of the disputed issues. In the third quarter of 2013, the court ruled in favor of the University with respect to the late penalty and default interest accrued thereon. Accordingly, the University recorded an other asset and interest and other income of $1,459 for the three months ended September 30, 2013. The court ordered the late penalty funds and interest thereon to be released to the University on October 28, 2013 unless prior to said date, borrower filed with the court a formal notice of appeal and simultaneously deposited an additional $344 into escrow with the clerk of the court representing continued interest accruing on the late penalty pending an appeal. On October 28, 2013 borrower deposited with the clerk of the court the required cash bond in the amount of $344 and filed its formal notice of appeal. The briefing phase of the appeal has been completed and the matter will be scheduled for oral argument at a date and time to be determined by the appellate court. The remaining default interest and statutory trustee’s fee components of the original disputed amount, plus interest accruing thereon at 11%, continue a resolution process through the court, have been treated as a gain contingency and will not be recorded as a receivable or income until the court makes its ruling. | |
Derivatives and Hedging | ' |
Derivatives and Hedging | |
Derivative financial instruments are recorded on the balance sheet as assets or liabilities and re-measured at fair value at each reporting date. For derivatives designated as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. | |
Derivative financial instruments enable the University to manage its exposure to interest rate risk. The University does not engage in any derivative instrument trading activity. Credit risk associated with the University’s derivatives is limited to the risk that a derivative counterparty will not perform in accordance with the terms of the contract. Exposure to counterparty credit risk is considered low because these agreements have been entered into with institutions with strong credit ratings, and they are expected to perform fully under the terms of the agreements. | |
On February 27, 2013 the University entered into an interest rate corridor to manage its 30 Day LIBOR interest exposure related to its variable rate debt. The fair value of the interest rate corridor instrument as of June 30, 2014 was $1,523, which is included in other assets. The fair value of the derivative instrument was determined using a hypothetical derivative transaction and Level 2 of the hierarchy of valuation inputs. This derivative instrument was originally designated as a cash flow hedge of variable rate debt obligations. The adjustment of $174 for the six months ended June 30, 2014 for the effective portion of the loss on the derivatives is included as a component of other comprehensive income, net of taxes. | |
The interest rate corridor instrument reduces variable interest rate risk starting March 1, 2013 through December 20, 2019 with a notional amount of $90,000 as of June 30, 2014. The corridor instrument’s terms permits the University to hedge its interest rate risk at several thresholds; the University pays variable interest monthly based on the 30 Day LIBOR rates until that index reaches 1.5%. If 30 Day LIBOR is equal to 1.5% through 3.0%, the University pays 1.5%. If 30 Day LIBOR exceeds 3.0%, the University pays actual 30 Day LIBOR less 1.5%. | |
As of June 30, 2014 no derivative ineffectiveness was identified. Any ineffectiveness in the University’s derivative instrument designated as a hedge is reported in interest expense in the income statement. For the six months ended June 30, 2014, $5 of credit risk was recorded in interest expense for the interest rate corridor. At June 30, 2014, the University does not expect to reclassify gains or losses on derivative instruments from accumulated other comprehensive income (loss) into earnings during the next 12 months. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
As of June 30, 2014, the carrying value of cash and cash equivalents, investments, accounts receivable, account payable and accrued compensation and benefits and accrued liabilities expenses approximate their fair value based on the liquidity or the short-term maturities of these instruments. The carrying value of notes payable approximates fair value as it is based on variable rate index. The carrying value of capital lease obligations approximate fair value based upon market interest rates available to the University for debt of similar risk and maturities. Derivative financial instruments are carried at fair value, determined using Level 2 of the hierarchy of valuation inputs, with the use of inputs other than quoted prices that are observable for the asset. | |
The fair value of investments, primarily municipal securities, including municipal bond portfolios, was determined using Level 2 of the hierarchy of valuation inputs, with the use of inputs other than quoted prices that are observable for the assets. The municipal securities are comprised of city and county bonds related to schools, water and sewer, utilities, transportation, healthcare and housing. Because these securities are held by the University as investments, assessment of non-performance risk is not applicable as such considerations are only applicable in evaluating the fair value measurements for liabilities. | |
Revenue Recognition | ' |
Revenue Recognition | |
Net revenues consist primarily of tuition and fees derived from courses taught by the University online, on ground at its traditional campus in Phoenix, Arizona, and onsite at facilities it leases and at facilities owned by third party employers, as well as from related educational resources that the University provides to its students, such as access to online materials. Tuition revenue and most fees from related educational resources are recognized pro-rata over the applicable period of instruction, net of scholarships provided by the University. For the six months ended June 30, 2014 and 2013, the University’s revenue was reduced by approximately $63,632 and $49,559, respectively, as a result of scholarships that the University offered to students. The University maintains an institutional tuition refund policy, which provides for all or a portion of tuition to be refunded if a student withdraws during stated refund periods. Certain states in which students reside impose separate, mandatory refund policies, which override the University’s policy to the extent in conflict. If a student withdraws at a time when only a portion, or none, of the tuition is refundable, then in accordance with its revenue recognition policy, the University continues to recognize the tuition that was not refunded pro-rata over the applicable period of instruction. Since the University recognizes revenue pro-rata over the term of the course and because, under its institutional refund policy, the amount subject to refund is never greater than the amount of the revenue that has been deferred, under the University’s accounting policies revenue is not recognized with respect to amounts that could potentially be refunded. Sales tax collected from students is excluded from net revenues. Collected but unremitted sales tax is included as an accrued liability in the consolidated balance sheets. The University also charges online students an upfront learning management fee, which is deferred and recognized over the average expected term of a student. Costs that are direct and incremental to new online students are also deferred and recognized ratably over the average expected term of a student. Deferred revenue and student deposits in any period represent the excess of tuition, fees, and other student payments received as compared to amounts recognized as revenue on the income statement and are reflected as current liabilities in the accompanying consolidated balance sheet. The University’s educational programs have starting and ending dates that differ from its fiscal quarters. Therefore, at the end of each fiscal quarter, a portion of revenue from these programs is not yet earned. Other revenues may be recognized as sales occur or services are performed. | |
Allowance for Doubtful Accounts | ' |
Allowance for Doubtful Accounts | |
All students are required to select both a primary and secondary payment option with respect to amounts due to the University for tuition, fees and other expenses. The most common payment option for the University’s students is financial aid. In instances where a student selects financial aid as the primary payment option, he or she often selects personal cash as the secondary option. If a student who has selected financial aid as his or her primary payment option withdraws prior to the end of a course but after the date that the University’s institutional refund period has expired, the student will have incurred the obligation to pay the full cost of the course. If the withdrawal occurs before the date at which the student has earned 100% of his or her financial aid, the University will have a return to Title IV requirement and the student will owe the University all amounts incurred that are in excess of the amount of financial aid that the student earned and that the University is entitled to retain. In this case, the University must collect the receivable using the student’s second payment option. In instances in which the students chose to receive living expense funds as part of their financial aid disbursements, the University is required to return the unearned portion of these funds as well and then collect these amounts from the students. | |
The University records an allowance for doubtful accounts for estimated losses resulting from the inability, failure or refusal of its students to make required payments, which includes the recovery of financial aid funds advanced to a student for amounts in excess of the student’s cost of tuition and related fees. The University determines the adequacy of its allowance for doubtful accounts based on an analysis of its historical bad debt experience, current economic trends, the aging of the accounts receivable and student status. The University applies reserves to its receivables based upon an estimate of the risk presented by the age of the receivables and student status. The University writes off accounts receivable balances at the earlier of the time the balances were deemed uncollectible, or one year after the revenue is generated. However, if a student becomes inactive, the University writes off the account 150 days after becoming delinquent. The University reflects accounts receivable with an offsetting allowance as long as management believes there is a reasonable possibility of collection. Bad debt expense is recorded as an instructional costs and services expense in the consolidated income statement. | |
Long-Lived Assets (Other than Goodwill) | ' |
Long-Lived Assets (other than goodwill) | |
The University evaluates the recoverability of our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future net cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. | |
Instructional Costs and Services | ' |
Instructional Costs and Services | |
Instructional costs and services consist primarily of costs related to the administration and delivery of the University’s educational programs. This expense category includes salaries, benefits and share-based compensation for full-time and adjunct faculty and administrative personnel, information technology costs, bad debt expense, curriculum and new program development costs (which are expensed as incurred) and costs associated with other support groups that provide services directly to the students. This category also includes an allocation of depreciation, amortization, rent, and occupancy costs attributable to the provision of educational services, primarily at the University’s Phoenix, Arizona campus. | |
Admissions Advisory and Related | ' |
Admissions Advisory and Related | |
Admissions advisory and related expenses include salaries and benefits for admissions advisory personnel and, revenue share expense as well as an allocation of depreciation, amortization, rent and occupancy costs attributable to the admissions advisory personnel. | |
Advertising | ' |
Advertising | |
Advertising expenses include brand advertising, marketing leads and other branding activities. Advertising costs are expensed as incurred. | |
Marketing and Promotional | ' |
Marketing and Promotional | |
Marketing and promotional expenses include salaries, benefits and share-based compensation for marketing personnel, and other promotional expenses. This category also includes an allocation of depreciation, amortization, rent, and occupancy costs attributable to marketing and promotional activities. Marketing and promotional costs are expensed as incurred. | |
General and Administrative | ' |
General and Administrative | |
General and administrative expenses include salaries, benefits and share-based compensation of employees engaged in corporate management, finance, human resources, compliance, and other corporate functions. General and administrative expenses also include an allocation of depreciation, amortization, rent, and occupancy costs attributable to the departments providing general and administrative functions. | |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
The University accrues for contingent obligations when it is probable that a liability has been incurred and the amount is reasonably estimable. When the University becomes aware of a claim or potential claim, the likelihood of any loss exposure is assessed. If it is probable that a loss will result and the amount of the loss is estimable, the University records a liability for the estimated loss. If the loss is not probable or the amount of the potential loss is not estimable, the University will disclose the claim if the likelihood of a potential loss is reasonably possible and the amount of the potential loss could be material. Estimates that are particularly sensitive to future changes include tax, legal, and other regulatory matters, which are subject to change as events evolve, and as additional information becomes available during the administrative and litigation process. The University expenses legal fees as incurred. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | |
Segment Information | ' |
Segment Information | |
The University operates as a single educational delivery operation using a core infrastructure that serves the curriculum and educational delivery needs of both its ground and online students regardless of geography. The University’s Chief Executive Officer manages the University’s operations as a whole and no expense or operating income information is generated or evaluated on any component level. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued, “Revenue from Contracts with Customers.” The standard is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is not permitted. Accordingly, the standard is effective for us on January 1, 2017. The University is currently evaluating the impact that the standard will have on our financial condition, results of operations and disclosures. | |
The University has determined no other recent accounting pronouncements apply to its operations or would otherwise have a material impact on its financial statements. |
Investments_Tables
Investments (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||
Summary of Amounts Included in Investments | ' | ||||||||||||||||
The following is a summary of amounts included in investments as of June 30, 2014 and December 31, 2013. The University considered all investments as available for sale. | |||||||||||||||||
As of June 30, 2014 | |||||||||||||||||
Adjusted | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | (Losses) | Value | |||||||||||||||
Municipal securities | $ | 156,512 | $ | 12 | $ | (32 | ) | $ | 156,492 | ||||||||
As of December 31, 2013 | |||||||||||||||||
Adjusted | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | (Losses) | Value | |||||||||||||||
Municipal securities | $ | 108,393 | $ | 35 | $ | (8 | ) | $ | 108,420 | ||||||||
Net_Income_Per_Common_Share_Ta
Net Income Per Common Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Summary of Weighted Average Number of Common Shares Outstanding | ' | ||||||||||||||||
The table below reflects the calculation of the weighted average number of common shares outstanding, on an as if converted basis, used in computing basic and diluted earnings per common share. | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Denominator: | |||||||||||||||||
Basic weighted average shares outstanding | 45,598 | 44,681 | 45,403 | 44,463 | |||||||||||||
Effect of dilutive stock options and restricted stock | 1,392 | 1,248 | 1,514 | 1,227 | |||||||||||||
Diluted weighted average shares outstanding | 46,990 | 45,929 | 46,917 | 45,690 | |||||||||||||
Allowance_for_Doubtful_Account1
Allowance for Doubtful Accounts (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||
Schedule of Allowance for Doubtful Accounts | ' | ||||||||||||||||
Balance at | Charged to | Deductions(1) | Balance at | ||||||||||||||
Beginning of | Expense | End of | |||||||||||||||
Period | Period | ||||||||||||||||
Six months ended June 30, 2014 | $ | 9,678 | 7,061 | (8,970 | ) | $ | 7,769 | ||||||||||
Six months ended June 30, 2013 | $ | 8,657 | 9,485 | (9,050 | ) | $ | 9,092 | ||||||||||
-1 | Deductions represent accounts written off, net of recoveries. |
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Summary of Property and Equipment, Net | ' | ||||||||
Property and equipment, net consist of the following: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Land | $ | 37,599 | $ | 21,820 | |||||
Land improvements | 5,176 | 5,176 | |||||||
Buildings | 232,382 | 222,402 | |||||||
Equipment under capital leases | 5,310 | 5,310 | |||||||
Leasehold improvements | 35,274 | 32,243 | |||||||
Computer equipment | 69,431 | 64,773 | |||||||
Furniture, fixtures and equipment | 34,207 | 32,583 | |||||||
Internally developed software | 18,143 | 15,606 | |||||||
Other | 1,099 | 1,099 | |||||||
Construction in progress | 75,825 | 23,467 | |||||||
514,446 | 424,479 | ||||||||
Less accumulated depreciation and amortization | (98,204 | ) | (84,883 | ) | |||||
Property and equipment, net | $ | 416,242 | $ | 339,596 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Future Minimum Lease Payments under Operating Leases | ' | ||||
Future minimum lease payments under operating leases due each year are as follows at June 30, 2014: | |||||
2014 (remaining six months) | $ | 3,718 | |||
2015 | 6,893 | ||||
2016 | 5,826 | ||||
2017 | 4,985 | ||||
2018 | 4,504 | ||||
Thereafter | 8,316 | ||||
Total minimum payments | $ | 34,242 | |||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Summary of Activity Related to Restricted Stock Granted under Incentive Plan | ' | ||||||||||||||||
A summary of the activity related to restricted stock granted under the University’s Incentive Plan since December 31, 2013 is as follows: | |||||||||||||||||
Total | Weighted Average | ||||||||||||||||
Shares | Grant Date | ||||||||||||||||
Fair Value per Share | |||||||||||||||||
Outstanding as of December 31, 2013 | 983 | $ | 21.34 | ||||||||||||||
Granted | 306 | $ | 46.18 | ||||||||||||||
Vested | (219 | ) | $ | 21.2 | |||||||||||||
Forfeited, canceled or expired | (15 | ) | $ | 28.37 | |||||||||||||
Outstanding as of June 30, 2014 | 1,055 | $ | 28.48 | ||||||||||||||
Summary of Activity Related to Stock Options Granted under Company's Incentive Plan | ' | ||||||||||||||||
A summary of the activity related to stock options granted under the University’s Incentive Plan since December 31, 2013 is as follows: | |||||||||||||||||
Summary of Stock Options Outstanding | |||||||||||||||||
Total | Weighted | Weighted | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value ($)(1) | |||||||||||||||
Price per | Contractual | ||||||||||||||||
Share | Term (Years) | ||||||||||||||||
Outstanding as of December 31, 2013 | 3,023 | $ | 14.8 | ||||||||||||||
Granted | — | $ | — | ||||||||||||||
Exercised | (470 | ) | $ | 14.12 | |||||||||||||
Forfeited, canceled or expired | (13 | ) | $ | 17.25 | |||||||||||||
Outstanding as of June 30, 2014 | 2,540 | $ | 14.91 | 5.39 | $ | 78,903 | |||||||||||
Exercisable as of June 30, 2014 | 1,940 | $ | 14.23 | 5.05 | $ | 61,563 | |||||||||||
Available for issuance as of June 30, 2014 | 2,108 | ||||||||||||||||
-1 | Aggregate intrinsic value represents the value of the University’s closing stock price on June 30, 2014 ($45.97) in excess of the exercise price multiplied by the number of shares underlying options outstanding or exercisable, as applicable. | ||||||||||||||||
Share-Based Compensation Expense | ' | ||||||||||||||||
The table below outlines share-based compensation expense for the six months ended June 30, 2014 and 2013 related to restricted stock and stock options granted: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Instructional costs and services | $ | 2,874 | $ | 2,546 | |||||||||||||
Admissions advisory and related expenses | 80 | 64 | |||||||||||||||
Marketing and promotional | 131 | 109 | |||||||||||||||
General and administrative | 1,752 | 2,186 | |||||||||||||||
Share-based compensation expense included in operating expenses | 4,837 | 4,905 | |||||||||||||||
Tax effect of share-based compensation | (1,935 | ) | (1,962 | ) | |||||||||||||
Share-based compensation expense, net of tax | $ | 2,902 | $ | 2,943 | |||||||||||||
Nature_of_Business_Additional_
Nature of Business - Additional Information (Detail) | Jun. 30, 2014 |
acre | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' |
Area of the company's campus in Phoenix, Arizona | 179 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2012 |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Average days from the date of receipt in which funds remain as restricted cash and cash equivalents | ' | ' | ' | '60 to 90 days | ' | ' |
Note receivable from a financial institution at fair market value | ' | ' | ' | ' | ' | $27,000 |
Interest rate on notes | ' | ' | ' | 11.00% | ' | ' |
Interest rate on loan | ' | ' | ' | 6.00% | ' | ' |
Default rate | ' | ' | ' | 5.00% | ' | ' |
Interest income and other income on the loan | ' | 1,459 | ' | 2,187 | ' | ' |
Default interest amount | 432 | ' | ' | 432 | ' | ' |
Late payment penalty amount | 1,392 | ' | ' | 1,392 | ' | ' |
Statutory trustee's fee amount | 139 | ' | ' | 139 | ' | ' |
Additional amount deposited in escrow | 344 | ' | ' | 344 | ' | ' |
Default interest and statutory trustee's fee | ' | ' | ' | 11.00% | ' | ' |
Date of order for late penalty funds | ' | ' | ' | 28-Oct-13 | ' | ' |
Period of LIBOR interest rate | ' | ' | ' | '30 days | ' | ' |
Effective portion of gain/loss on derivatives included as a component of other comprehensive income, net of taxes | -148 | ' | 483 | -174 | 523 | ' |
Reduction in revenue due to scholarships offered to students | ' | ' | ' | 63,632 | 49,559 | ' |
Percent of financial aid earn by student | ' | ' | ' | 100.00% | ' | ' |
Period for write off of inactive student accounts | ' | ' | ' | '150 days | ' | ' |
Other Assets [Member] | ' | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Fair value of interest rate corridor instrument | 1,523 | ' | ' | 1,523 | ' | ' |
Interest Rate Corridor [Member] | ' | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Notional amount of derivative instrument | 90,000 | ' | ' | 90,000 | ' | ' |
Description of interest rate risk hedge at several thresholds | ' | ' | ' | 'The University pays variable interest monthly based on the 30 Day LIBOR rates until that index reaches 1.5%. If 30 Day LIBOR is equal to 1.5% through 3.0%, the University pays 1.5%. If 30 Day LIBOR exceeds 3.0%, the University pays actual 30 Day LIBOR less 1.5%. | ' | ' |
Maximum percentage of variable interest rates based on LIBOR | ' | ' | ' | 1.50% | ' | ' |
Debt instrument, description of variable rate basis | ' | ' | ' | 'LIBOR | ' | ' |
Percentage of amount paid by University | ' | ' | ' | 1.50% | ' | ' |
Minimum percentage of LIBOR | 1.50% | ' | ' | 1.50% | ' | ' |
Maximum percentage of LIBOR | 3.00% | ' | ' | 3.00% | ' | ' |
Percentage deducted from LIBOR for actual payment | ' | ' | ' | 1.50% | ' | ' |
Interest expense on derivatives related to credit risk | ' | ' | ' | 5 | ' | ' |
Cash Flow Hedging [Member] | ' | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Effective portion of gain/loss on derivatives included as a component of other comprehensive income, net of taxes | ' | ' | ' | $174 | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Number of days from the date of receipt in which funds remain as restricted cash and cash equivalents | ' | ' | ' | '60 days | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Number of days from the date of receipt in which funds remain as restricted cash and cash equivalents | ' | ' | ' | '90 days | ' | ' |
Investments_Summary_of_Amounts
Investments - Summary of Amounts Included in Investments (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Estimated Fair Value | $156,492 | $108,420 |
Municipal Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Adjusted Cost | 156,512 | 108,393 |
Gross Unrealized Gains | 12 | 35 |
Gross Unrealized (Losses) | -32 | -8 |
Estimated Fair Value | $156,492 | $108,420 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Investment [Line Items] | ' | ' | ' | ' |
Unrealized net loss on available-for-sale securities | $12 | $3 | $28 | $11 |
Municipal Securities [Member] | ' | ' | ' | ' |
Investment [Line Items] | ' | ' | ' | ' |
Maturity period of investments | ' | ' | 'One year or less | ' |
Net_Income_Per_Common_Share_Su
Net Income Per Common Share - Summary of Weighted Average Number of Common Shares Outstanding (Detail) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Denominator: | ' | ' | ' | ' |
Basic weighted average shares outstanding | 45,598 | 44,681 | 45,403 | 44,463 |
Effect of dilutive stock options and restricted stock | 1,392 | 1,248 | 1,514 | 1,227 |
Diluted weighted average shares outstanding | 46,990 | 45,929 | 46,917 | 45,690 |
Net_Income_Per_Common_Share_Ad
Net Income Per Common Share - Additional Information (Detail) (Stock Option And Restricted Stock Awards [Member]) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Stock Option And Restricted Stock Awards [Member] | ' | ' |
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
University's stock options and restricted stock awards outstanding were excluded from the calculation of diluted earnings | 117 | 264 |
Allowance_for_Doubtful_Account2
Allowance for Doubtful Accounts - Schedule of Allowance for Doubtful Accounts (Detail) (Allowance for Doubtful Accounts Receivable [Member], USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Allowance for Doubtful Accounts Receivable [Member] | ' | ' |
Balance at Beginning of Period | $9,678 | $8,657 |
Charged to Expense | 7,061 | 9,485 |
Deductions | -8,970 | -9,050 |
Balance at End of Period | $7,769 | $9,092 |
Property_and_Equipment_Summary
Property and Equipment - Summary of Property and Equipment, Net (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | $514,446 | $424,479 |
Less accumulated depreciation and amortization | -98,204 | -84,883 |
Property and equipment, net | 416,242 | 339,596 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 37,599 | 21,820 |
Land Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 5,176 | 5,176 |
Buildings [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 232,382 | 222,402 |
Equipment under Capital Leases [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 5,310 | 5,310 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 35,274 | 32,243 |
Computer Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 69,431 | 64,773 |
Furniture, Fixtures and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 34,207 | 32,583 |
Internally Developed Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 18,143 | 15,606 |
Other [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 1,099 | 1,099 |
Construction in Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | $75,825 | $23,467 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Future Minimum Lease Payments under Operating Leases (Detail) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | ' |
2014 (remaining six months) | $3,718 |
2015 | 6,893 |
2016 | 5,826 |
2017 | 4,985 |
2018 | 4,504 |
Thereafter | 8,316 |
Total minimum payments | $34,242 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Additional Information (Detail) (USD $) | 6 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 |
Internal Revenue Service (IRS) [Member] | ||||
Commitment And Contingencies [Line Items] | ' | ' | ' | ' |
Total rent expense and related taxes and operating expenses, under operating leases | $3,910 | $3,464 | ' | ' |
Tax reserves, non-income tax related | $712 | ' | $729 | ' |
Tax year under examination | ' | ' | ' | '2011 |
ShareBased_Compensation_Plans_
Share-Based Compensation Plans - Additional Information (Detail) (Restricted Stock Grants [Member], USD $) | 6 Months Ended | 1 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | 31-May-14 | Jun. 30, 2014 |
Anniversaries | Non-Employee Members of Board of Directors [Member] | Executive Officers [Member] | |
Anniversaries | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares granted | 306 | 8 | 298 |
Percentage of shares to vest each year | ' | ' | 20.00% |
Vesting period | ' | ' | '5 years |
Number of anniversaries of the vesting date following the date of grant | 4 | 1 | ' |
Shares withheld for taxes | 77 | ' | ' |
Common stock in lieu of taxes | $3,662 | ' | ' |
ShareBased_Compensation_Plans_1
Share-Based Compensation Plans - Summary of Activity Related to Restricted Stock Granted under Incentive Plan (Detail) (Restricted Stock Grants [Member], USD $) | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 |
Restricted Stock Grants [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total Shares, Outstanding, Beginning Balance | 983 |
Total Shares, Granted | 306 |
Total Shares, Vested | -219 |
Total Shares, Forfeited, canceled or expired | -15 |
Total Shares, Outstanding, Ending Balance | 1,055 |
Weighted Average Grant Date Fair Value, Beginning Balance | $21.34 |
Weighted Average Grant Date Fair Value, Granted | $46.18 |
Weighted Average Grant Date Fair Value, Vested | $21.20 |
Weighted Average Grant Date Fair Value, Forfeited, cancelled or expired | $28.37 |
Weighted Average Grant Date Fair Value, Ending Balance | $28.48 |
ShareBased_Compensation_Plans_2
Share-Based Compensation Plans - Summary of Activity Related to Stock Options Granted under Company's Incentive Plan (Detail) (Employee Stock Option [Member], USD $) | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 |
Employee Stock Option [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total Shares outstanding, Beginning balance | 3,023 |
Total Shares, Granted | ' |
Total Shares, Exercised | -470 |
Total Shares, Forfeited, canceled or expired | -13 |
Total Shares outstanding, Ending balance | 2,540 |
Total Shares, Exercisable | 1,940 |
Total Shares, Available for issuance | 2,108 |
Weighted Average Exercise Price per Share Outstanding, Beginning balance | $14.80 |
Weighted Average Exercise Price per Share, Granted | ' |
Weighted Average Exercise Price per Share, Exercised | $14.12 |
Weighted Average Exercise Price per Share, Forfeited, canceled or expired | $17.25 |
Weighted Average Exercise Price per Share Outstanding, Ending balance | $14.91 |
Weighted Average Exercise Price per Share, Exercisable | $14.23 |
Weighted Average Remaining Contractual Term (Years), Outstanding | '5 years 4 months 21 days |
Weighted Average Remaining Contractual Term (Years), Exercisable | '5 years 18 days |
Aggregate Intrinsic Value, Outstanding | $78,903 |
Aggregate Intrinsic Value, Exercisable | $61,563 |
ShareBased_Compensation_Plans_3
Share-Based Compensation Plans - Summary of Activity Related to Stock Options Granted under Company's Incentive Plan (Parenthetical) (Detail) (USD $) | Jun. 30, 2014 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Value of closing stock price | $45.97 |
ShareBased_Compensation_Plans_4
Share-Based Compensation Plans - Share-Based Compensation Expense (Detail) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' |
Share-based compensation expense | $4,837 | $4,905 |
Tax effect of share-based compensation | -1,935 | -1,962 |
Share-based compensation expense, net of tax | 2,902 | 2,943 |
Instructional Costs and Services [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' |
Share-based compensation expense | 2,874 | 2,546 |
Admissions Advisory and Related [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' |
Share-based compensation expense | 80 | 64 |
Marketing and Promotional [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' |
Share-based compensation expense | 131 | 109 |
General and Administrative [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' |
Share-based compensation expense | $1,752 | $2,186 |
Treasury_Stock_Additional_Info
Treasury Stock - Additional Information (Detail) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Stockholders Equity [Line Items] | ' |
Expiration date on repurchase authorizations | 30-Sep-14 |
Aggregate cost shares of common stock | $1,676 |
Common stock acquired, shares | 38 |
Common Stock [Member] | ' |
Stockholders Equity [Line Items] | ' |
Common stock acquired, shares | 2,787 |
Since Approval of Share Repurchase Plan [Member] | ' |
Stockholders Equity [Line Items] | ' |
Aggregate cost shares of common stock | 49,135 |
Remaining authorized repurchase amount | 25,865 |
Maximum [Member] | ' |
Stockholders Equity [Line Items] | ' |
Authorization amount for repurchase of common stock | $75,000 |