CAPELLA EDUCATION CO, 10-K filed on 3/1/2018
Annual Report
Document And Entity Information (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Feb. 23, 2018
Jun. 30, 2017
Document And Entity Information [Abstract]
 
 
 
Document Type
10-K 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Dec. 31, 2017 
 
 
Document Fiscal Year Focus
2017 
 
 
Document Fiscal Period Focus
FY 
 
 
Trading Symbol
cpla 
 
 
Entity Registrant Name
CAPELLA EDUCATION CO 
 
 
Entity Central Index Key
0001104349 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Common Stock, Shares Outstanding
 
11,652,444 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Public Float
 
 
$ 982.6 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Current assets:
 
 
Cash and cash equivalents
$ 106,566 
$ 93,570 
Marketable securities, current
45,226 
45,458 
Accounts receivable, net of allowance of $7,979 at December 31, 2017 and $6,682 at December 31, 2016
22,733 
20,708 
Prepaid expenses and other current assets
9,523 
17,877 
Total current assets
184,048 
177,613 
Marketable securities, non-current
29,570 
23,320 
Property and equipment, net
35,961 
34,121 
Goodwill
13,477 
23,310 
Intangibles, net
3,402 
9,221 
Deferred income taxes
2,839 
1,853 
Other assets
9,724 
7,875 
Total assets
279,021 
277,313 
Current liabilities:
 
 
Accounts payable
2,281 
4,367 
Accrued liabilities
26,619 
31,302 
Dividends Payable
5,228 
4,945 
Deferred revenue
13,849 
12,398 
Total current liabilities
47,977 
53,012 
Deferred rent
12,365 
13,693 
Other liabilities
3,288 
2,316 
Total liabilities
63,630 
69,021 
Shareholders' equity:
 
 
Common stock, $0.01 par value: Authorized shares — 100,000; Issued and Outstanding shares — 11,635 at December 31, 2017 and 11,545 at December 31, 2016
116 
115 
Additional paid-in capital
127,804 
121,581 
Accumulated other comprehensive income (loss)
(110)1
(93)1
Retained earnings
87,581 
86,689 
Total shareholders' equity
215,391 
208,292 
Total liabilities and shareholders' equity
$ 279,021 
$ 277,313 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Per Share data, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Current assets:
 
 
Accounts receivable, allowance
$ 7,979 
$ 6,682 
Shareholders' Equity:
 
 
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, authorized shares
100,000 
100,000 
Common stock, issued shares
11,635 
11,545 
Common stock, outstanding shares
11,635 
11,545 
Consolidated Statements Of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Statement [Abstract]
 
 
 
Revenues
$ 440,411 
$ 429,390 
$ 416,548 
Costs and expenses:
 
 
 
Instructional costs and services
195,081 
185,995 
182,883 
Marketing and promotional
109,394 
103,458 
99,629 
Admissions advisory
29,163 
29,292 
28,206 
General and administrative
41,714 
42,438 
35,498 
Goodwill and intangible asset impairment charges
14,955 
0 
0 
Merger transaction costs
3,728 
0 
0 
Restructuring charges
1,282 
0 
0 
Total costs and expenses
395,317 
361,183 
346,216 
Operating income (loss)
45,094 
68,207 
70,332 
Other income (expense), net
793 
177 
(133)
Income from continuing operations before income taxes
45,887 
68,384 
70,199 
Income tax expense
22,477 
25,980 
26,569 
Income from continuing operations
23,410 
42,404 
43,630 
Income (loss) from discontinued operations, net of tax
95 
565 
(3,442)
Net income
$ 23,505 
$ 42,969 
$ 40,188 
Earnings per share [Abstract]
 
 
 
Basic net income per share - continuing operations
$ 2.01 
$ 3.65 
$ 3.61 
Basic net income (loss) per share - discontinued operations
$ 0.01 
$ 0.05 
$ (0.28)
Basic net income per common share
$ 2.02 
$ 3.70 
$ 3.33 
Diluted net income per share - continuing operations
$ 1.96 
$ 3.58 
$ 3.55 
Diluted net income (loss) per share - discontinued operations
$ 0.01 
$ 0.04 
$ (0.28)
Diluted net income per common share
$ 1.97 
$ 3.62 
$ 3.27 
Weighted average number of common shares outstanding:
 
 
 
Weighted average shares outstanding - Basic
11,623 
11,614 
12,079 
Weighted average shares outstanding - Diluted
11,950 
11,856 
12,301 
Cash dividend declared per common share
$ 1.66 
$ 1.58 
$ 1.50 
Consolidated Statements Of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Net income
$ 23,505 
$ 42,969 
$ 40,188 
Other comprehensive income (loss), net of tax:
 
 
 
Foreign currency translation gain (loss)
3 
185 
76 
Unrealized gain (loss) on marketable securities, net of tax
(20)
(50)
(13)
Comprehensive income
$ 23,488 
$ 43,104 
$ 40,251 
Consolidated Statement of Shareholders' Equity (USD $)
In Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Retained Earnings [Member]
Balance at Dec. 31, 2015
$ 197,879 
$ 118 
$ 114,849 
$ (272)
$ 83,184 
Balance, common stock shares at Dec. 31, 2015
 
11,824 
 
 
 
Exercise of stock options, shares
 
158 
 
 
 
Exercise of stock options
5,363 
1 
5,362 
0 
0 
Share-based compensation
6,422 
0 
6,422 
0 
0 
Tax benefit (shortfall) realized from share-based compensation
462 
0 
462 
0 
0 
Issuance of restricted stock, net, shares
 
51 
 
 
 
Issuance of restricted stock, net
(763)
0 
(763)
0 
0 
Repurchase of common stock, shares
(488)
(488)
 
 
 
Repurchase of common stock
(25,633)
(4)
(4,751)
0 
(20,878)
Cash dividends declared
(18,586)
0 
0 
0 
(18,586)
Net income
42,969 
0 
0 
0 
42,969 
Unrealized gain (loss) on marketable securities, net of tax
(50)
0 
0 
(50)
0 
Foreign currency translation adjustments
229 
0 
0 
229 
0 
Balance at Dec. 31, 2016
208,292 
115 
121,581 
(93)
86,689 
Balance, common stock shares at Dec. 31, 2016
11,545 
11,545 
 
 
 
Balance at Dec. 31, 2014
195,034 
122 
112,417 
(335)
82,830 
Balance, common stock shares at Dec. 31, 2014
 
12,243 
 
 
 
Exercise of stock options, shares
 
32 
 
 
 
Exercise of stock options
1,337 
0 
1,337 
0 
0 
Share-based compensation
6,594 
0 
6,594 
0 
0 
Tax benefit (shortfall) realized from share-based compensation
(119)
0 
(119)
0 
0 
Issuance of restricted stock, net, shares
 
34 
 
 
 
Issuance of restricted stock, net
(925)
0 
(925)
0 
0 
Repurchase of common stock, shares
 
(485)
 
 
 
Repurchase of common stock
(26,006)
(4)
(4,455)
0 
(21,547)
Cash dividends declared
(18,287)
0 
0 
0 
(18,287)
Net income
40,188 
0 
0 
0 
40,188 
Unrealized gain (loss) on marketable securities, net of tax
(13)
0 
0 
(13)
0 
Foreign currency translation adjustments
76 
0 
0 
76 
0 
Balance at Dec. 31, 2015
197,879 
118 
114,849 
(272)
83,184 
Balance, common stock shares at Dec. 31, 2015
 
11,824 
 
 
 
Balance at Dec. 31, 2016
208,292 
115 
121,581 
(93)
86,689 
Balance, common stock shares at Dec. 31, 2016
11,545 
11,545 
 
 
 
Cumulative Effect of New Accounting Principle in Period of Adoption
84 
0 
217 
0 
(133)
Exercise of stock options, shares
 
97 
 
 
 
Exercise of stock options
1,042 
1 
1,041 
0 
0 
Share-based compensation
6,524 
0 
6,524 
0 
0 
Tax benefit (shortfall) realized from share-based compensation
1,901 
 
 
 
 
Issuance of restricted stock, net, shares
 
44 
 
 
 
Issuance of restricted stock, net
(1,019)
1 
(1,020)
0 
0 
Repurchase of common stock, shares
(51)
(51)
 
 
 
Repurchase of common stock
(3,472)
(1)
(539)
0 
(2,932)
Cash dividends declared
(19,548)
0 
0 
0 
(19,548)
Net income
23,505 
0 
0 
0 
23,505 
Unrealized gain (loss) on marketable securities, net of tax
(20)
0 
0 
(20)
0 
Foreign currency translation adjustments
3 
0 
0 
3 
0 
Balance at Dec. 31, 2017
$ 215,391 
$ 116 
$ 127,804 
$ (110)
$ 87,581 
Balance, common stock shares at Dec. 31, 2017
11,635 
11,635 
 
 
 
Consolidated Statements Of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Operating activities
 
 
 
Net Income
$ 23,505 
$ 42,969 
$ 40,188 
Income (loss) from discontinued operations, net of tax
95 
565 
(3,442)
Income (loss) from continuing operations
23,410 
42,404 
43,630 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Provision for bad debts
12,726 
10,663 
14,275 
Depreciation and amortization
19,718 
21,343 
21,917 
Amortization of investment discount/premium
1,410 
2,129 
2,293 
Goodwill and intangible asset impairment charges
14,955 
0 
0 
Impairment of property and equipment
440 
442 
896 
Loss on disposal of property and equipment
414 
164 
64 
Share-based compensation
6,524 
6,422 
6,594 
Excess tax benefits from share-based compensation
0 
(1,136)
(439)
Deferred income taxes
(909)
(4,280)
(1,641)
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed from business combinations
 
 
 
Accounts receivable
(14,751)
(13,568)
(15,150)
Prepaid expenses and other current assets
(963)
(470)
(7,162)
Accounts payable and accrued liabilities
(6,214)
9,063 
(2,474)
Income tax payable
6,822 
(2,823)
(2,980)
Deferred rent
(1,328)
11,819 
(566)
Deferred revenue
1,451 
3,902 
1,540 
Net cash provided by operating activities - continuing operations
63,705 
86,074 
60,797 
Net cash provided by (used in) operating activities - discontinued operations
95 
(2,874)
400 
Net cash provided by operating activities
63,800 
83,200 
61,197 
Investing activities
 
 
 
Acquisitions, net of cash acquired
0 
(32,101)
0 
Capital expenditures
(22,097)
(20,908)
(20,417)
Investment in partnership interest
(1,787)
(3,551)
(934)
Purchases of marketable securities
(73,680)
(29,216)
(32,640)
Maturities of marketable securities
66,220 
31,430 
30,175 
Net cash used in investing activities - continuing operations
(31,344)
(54,346)
(23,816)
Net cash provided by (used in) investing activities - discontinued operations
3,243 
15,032 
(224)
Net cash used in investing activities
(28,101)
(39,314)
(24,040)
Financing activities
 
 
 
Excess tax benefits from share-based compensation
0 
1,136 
439 
Net proceeds from exercise of stock options
1,042 
5,363 
1,337 
Taxes paid for Restricted Stock Units
(1,197)
(931)
(870)
Payment of dividends
(19,078)
(18,254)
(18,012)
Repurchases of common stock
(3,472)
(25,633)
(26,006)
Net cash used in financing activities - continuing operations
(22,705)
(38,319)
(43,112)
Net cash used in financing activities - discontinued operations
0 
0 
0 
Net cash used in financing activities
(22,705)
(38,319)
(43,112)
Effect of foreign exchange rates on cash
2 
(24)
(21)
Net increase (decrease) in cash and cash equivalents
12,996 
5,543 
(5,976)
Cash and cash equivalents and cash of business held for sale at beginning of year
93,570 
88,027 
94,003 
Cash and cash equivalents and cash of business held for sale at end of year
106,566 
93,570 
88,027 
Less cash of business held for sale at end of period
0 
0 
(1,923)
Cash and cash equivalents at end of year
106,566 
93,570 
86,104 
Supplemental disclosures of cash flow information
 
 
 
Income taxes paid
16,616 
33,093 
31,171 
Non-cash investing and financing activities
 
 
 
Purchase of equipment included in accounts payable and accrued liabilities
379 
784 
854 
Dividends declared but not paid during period
5,041 
4,785 
4,646 
Receivable due from sale of business
$ 0 
$ 3,084 
$ 0 
Nature Of Business
Nature of Operations [Text Block]
Nature of Business
Capella Education Company (the Company) was incorporated on December 27, 1991, and is the parent company of its wholly owned subsidiaries, Capella University, Inc. (the University); Sophia Learning, LLC (Sophia); Capella Learning Solutions, LLC (CLS); Hackbright Academy, Inc. (Hackbright); and DevMountain, LLC (DevMountain). The University, founded in 1993, is an online postsecondary education services company offering a variety of bachelor's, master's and doctoral degree programs primarily delivered to working adults. The University is accredited by the Higher Learning Commission.

Sophia is an innovative learning company which leverages technology to support self-paced learning, including courses eligible for transfer into credit at over 2,000 colleges and universities. CLS provides online non-degree, high-demand, job-ready skills training solutions and services to individuals and corporate partners through Capella University's learning platform. Hackbright is a leading software engineering school for women with a mission to close the gender gap in the high-demand software engineering space. DevMountain is a leading software development school with a mission to be the most impactful coding school in the country by offering affordable, high-quality, leading-edge software coding education.

On February 8, 2016, the Company’s Board of Directors approved a plan to divest its wholly owned subsidiary, Arden University Limited (Arden University). On August 18, 2016, the Company completed the sale of 100% of the share capital of Arden University. Beginning in the first quarter of 2016 and through the date of sale of the business, the assets and liabilities of Arden University were considered to be held for sale, and the Company presented Arden University as discontinued operations within the financial statements and footnotes.
Strayer Merger
Strayer Merger
Strayer Merger

On October 29, 2017, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Strayer Education, Inc. (“Strayer”) and Sarg Sub Inc. (“Merger Sub”). Strayer is the holding company of Strayer University, which is an institute of higher learning which offers undergraduate and graduate degree programs in business administration, accounting, information technology, education and public administration.

Pursuant to the terms of the Merger Agreement, which has been unanimously approved by the boards of directors of both companies, Merger Sub will merge with and into the Company with the Company surviving as a wholly-owned subsidiary of Strayer (the “Merger”). Following the completion of the Merger, Strategic Education, Inc. will be the corporate entity under which both Capella University and Strayer University will continue to operate as independent and separately accredited institutions. At the effective time of the Merger, each share of the Company’s stock will be exchanged for 0.875 shares of Strayer common stock. The Company continues to expect that the merger will close in the third quarter of 2018.

On November 22, 2017, the U.S. Federal Trade Commission granted early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. In addition, on January 19, 2018, the Merger agreement was approved by the stockholders of the Company and Strayer. The proposed merger remains subject to the satisfaction of customary closing conditions, including approvals by State regulators and relevant accreditation bodies. By letter dated February 26, 2018, the Department of Education issued the results of its preacquisition review of the proposed change in ownership of the Company. That letter confirms that, subject to submission of additional documents following the closing, Capella University will have uninterrupted participation in the Title IV Programs while the Department of Education completes its review of the relevant documentation.

During the year-ended December 31, 2017, the Company incurred $3.7 million in transaction costs related to the Merger agreement, primarily attributable to consulting, legal, and investment banking fees incurred by the Company in connection with the proposed Merger agreement. These costs are included in Merger transaction costs within the Consolidated Statement of Income for the year-ended December 31, 2017.

The Merger Agreement provides for certain termination rights for both the Company and Strayer. In the event that the Company terminates the Merger Agreement under certain specified circumstances, the Company would be required to pay Strayer a termination fee in the amount of $25.0 million, and in the event that Strayer terminates the Merger Agreement under certain specified circumstances, Strayer would be required to pay the Company a termination fee in the amount of $25.0 million.
Summary Of Significant Accounting Policies
Summary Of Significant Accounting Policies
Summary of Significant Accounting Policies

Consolidation
The consolidated financial statements include the accounts of the Company, the University, Sophia, CLS, Hackbright, DevMountain, and Arden University (prior to the divestiture date), after elimination of intercompany accounts and transactions. Arden University was divested during the third quarter of 2016, and prior to the date of sale was presented as discontinued operations within the financial statements and corresponding footnotes. Arden operated on a fiscal year ending October 31, and prior to the divestiture, this was also the date used for consolidation. Refer to Footnote 4 -Discontinued Operations - for further
information related to the divestiture of Arden University. During the second quarter of 2016, the Company acquired
Hackbright and DevMountain. We accounted for these acquisitions as business combinations as of the close of each transaction.
The assets acquired and liabilities assumed in conjunction with the acquisitions were recorded at fair value as of the respective
acquisition dates, with the results of operations reflected in the Consolidated Statements of Income from the acquisition dates
going forward. Refer to Footnote 15, Acquisitions, for further information related to these acquisitions.

Reclassifications
During the first quarter of 2017, we reclassified our variable rate demand notes from cash and cash equivalents to marketable securities, current within the Consolidated Balance Sheet to better reflect the nature of these assets. Prior periods have not been restated to conform to the updated classification as marketable securities because the variable rate demand notes were not material to the Company's financial statements as of December 31, 2016.

Additionally, during the year-ended December 31, 2017 the Company began presenting the cash outflows associated with taxes paid to taxing authorities on an employee's behalf for restricted stock unit award releases within financing activities in the Consolidated Statements of Cash Flows rather than within operating activities based on the guidance set forth within Accounting Standards Update (ASU) 2016-09. The Company has applied this provision of the new standard retrospectively, and as such has restated net cash provided by operating activities and net cash used in financing activities for the impact of taxes paid to taxing authorities on an employee's behalf for restricted stock unit award releases within the Consolidated Statements of Cash Flows for the prior periods presented.

Restructuring Charges
In December 2017, the Company eliminated approximately 25 positions in a plan to align the organization with 2018 strategic priorities, incurring charges of approximately $1.3 million during the year-ended December 31, 2017. Restructuring charges relate primarily to severance costs and other termination benefits associated with former Company employees whose employment at the Company was involuntarily terminated during the period as we aligned the organization with 2018 strategic priorities and right-sized the cost structure in the Job-Ready Skills segment. Severance and related termination benefits are recorded during the period in which no additional services are required to be performed by the former employee in order to receive severance benefits. These charges are included within Restructuring charges in the Consolidated Statement of Income for the year-ended December 31, 2017.

Use of Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States 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.

Revenue Recognition
The Company’s revenues primarily consist of tuition. Tuition revenue is deferred and recognized as revenue ratably over the period of instruction. Revenue derived from course resource fees is recognized in a manner consistent with tuition revenue. For GuidedPath (traditional credit-hour) learners who withdraw or drop a course, the Company follows the University refund policy, which generally is: 100 percent refund through five days, 75 percent refund from six to twelve days, and zero percent refund for the remainder of the period. The refund policy varies slightly for learners within certain states due to state rules or regulations. FlexPath learners receive a 100 percent refund through calendar day twelve of the course for their first billing session only and a zero percent refund after that date and for all subsequent billing sessions. The Company does not recognize revenue for learners who enroll but never engage in the courseroom. Refunds are recorded as a reduction of revenue in the period that the learner withdraws from a course. When the University is required to return funds distributed under Title IV Programs of the Higher Education Act (Title IV or Title IV Programs) to the Department of Education, the learner is not released from his or her payment obligation.

Beginning in fiscal year 2016, we record revenue for learners who drop all courses or withdraw from the University with an unpaid tuition balance at the time of cash collection. This change is consistent with the Company's belief that such unpaid balances do not meet the threshold of reasonable collectability which must be met in order to recognize revenue. During the period in which a learner drops all courses or withdraws from the University prior to finalizing coursework, no additional revenue will be recognized until payment is received from the learner. This change did not have a material impact on our revenues or results of operations in the prior or current periods, and is not expected to have a material impact on revenues or results of operations in subsequent periods.

Residency tuition revenue is recognized over the length of the residency, which ranges from three to 42 days.

Deferred revenue in any period represents the excess of tuition and fees received as compared to tuition and fees recognized as revenue in the consolidated statements of income and is reflected as a current liability on our consolidated balance sheets.

Allowance for Doubtful Accounts
The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability, failure or refusal of our learners to make required payments. The Company determines the allowance for doubtful accounts amount based on an analysis of our accounts receivable portfolio and historical write-off experience, and current economic conditions, recoveries and trends. Bad debt expense is recorded as an instructional costs and services expense in the consolidated statements of income. The Company generally writes off accounts receivable balances once the account is deemed to be uncollectible, which typically occurs after outside collection agencies have pursued collection efforts. The Company recorded bad debt expense of $12.7 million, $10.7 million, and $14.3 million for the years ended December 31, 2017, 2016, and 2015, respectively.

Cash and Cash Equivalents
The Company considers all highly liquid marketable securities with maturities of three months or less at the time of purchase to be cash equivalents. The Company's cash equivalents consist of cash held as demand deposits with financial institutions and short-term money market funds. Cash equivalents are carried at fair value.

Marketable Securities
Management determines the appropriate designation of marketable securities at the time of purchase and reevaluates such designation as of each balance sheet date. All of the Company’s marketable securities are designated as available-for-sale as of December 31, 2017 and 2016 and consist of tax-exempt municipal securities, variable rate demand notes, and corporate debt securities.

Available-for-sale marketable securities are carried at fair value as determined by quoted market prices or other inputs either directly or indirectly observable in the marketplace for identical or similar assets, with unrealized gains and losses, net of tax, recognized as a component of accumulated other comprehensive income (loss) within shareholders’ equity. Management reviews the fair value of the portfolio at least monthly, and evaluates individual securities with fair value below amortized cost at the balance sheet date for impairment. In order to determine whether impairment is other than temporary, management evaluates whether the Company intends to sell the impaired security and whether it is more likely than not that the Company will be required to sell the security before recovering its amortized cost basis.

If management intends to sell an impaired debt security, or it is more likely than not the Company will be required to sell the security prior to recovering its amortized cost basis, an other-than-temporary impairment is deemed to have occurred. The amount of an other-than-temporary impairment related to a credit loss, or securities that management intends to sell before recovery, is recognized in earnings. The amount of an other-than-temporary impairment on debt securities related to other factors is recorded consistent with changes in the fair value of all other available-for-sale securities as a component of accumulated other comprehensive income (loss) within shareholders’ equity.

The cost of securities sold is based on the specific identification method. Amortization of premiums, accretion of discounts, interest, dividend income and realized gains and losses are included in other income (expense). The contractual maturity date of available-for-sale securities is based on the days remaining to the effective maturity. The Company classifies marketable securities as either current or non-current assets based on management’s intent with regard to usage of those funds, which is dependent upon the security's maturity date and liquidity considerations based on current market conditions. If management intends to hold the securities for longer than one year as of the balance sheet date, they are classified as non-current.

Fair Value Measurement
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Company classifies assets and liabilities recorded at fair value under the fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. The fair value measurements are classified under the following hierarchy:
•
Level 1 – Observable inputs that reflect quoted market prices (unadjusted) for identical assets and liabilities in active markets;
•
Level 2 – Observable inputs, other than quoted market prices, that are either directly or indirectly observable in the marketplace for identical or similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities; and
•
Level 3 – Unobservable inputs that are supported by little or no market activity that are significant to the fair value of assets or liabilities.

Concentration of Credit Risk
Financial instruments, which potentially subject the Company to credit risk, consist primarily of cash equivalents, marketable securities and accounts receivable.

Management believes the credit risk related to cash equivalents and marketable securities is limited due to the adherence to an investment policy that requires marketable securities to have a minimum credit rating of A minus (or equivalent) at the time of purchase. All of the Company’s cash equivalents and marketable securities as of December 31, 2017 and 2016 consist of investments rated A - or higher by at least one rating agency. In addition, the Company utilizes money managers who conduct initial and ongoing credit analysis on its investment portfolio to monitor and minimize the potential impact of market risk associated with its cash equivalents and marketable securities.

Management believes that the credit risk related to accounts receivable is mitigated due to the large number and diversity of learners that principally comprise the Company’s customer base. The Company’s credit risk with respect to these accounts receivable is mitigated through the participation of a majority of the learners in federally funded financial aid programs.

For the years ended December 31, 2017, 2016, and 2015, 75.53%, 76.94%, and 75.47% of Capella University's revenues (calculated on a cash basis) were collected from funds distributed under Title IV Programs, respectively. The financial aid and assistance programs are subject to political and budgetary considerations. There is no assurance that such funding will be maintained at current levels.

Extensive and complex regulations govern the financial assistance programs in which Capella University's learners participate. Capella University's administration of these programs is periodically reviewed by various regulatory agencies. Any regulatory violation could be the basis for the initiation of potential adverse actions, including a suspension, limitation, or termination proceeding, which could have a material adverse effect on the Company.

If the University were to lose its eligibility to participate in federal student financial aid programs, the learners at the University would lose access to funds derived from those programs and would have to seek alternative sources of funds to pay their tuition and fees.

Property and Equipment
Property and equipment are stated at cost. Computer software is included in property and equipment and consists of purchased software, capitalized website development costs and internally developed software. Capitalized website development costs consist mainly of salaries and outside development fees directly related to websites and various databases. Website content development is generally expensed as incurred. Internally developed software represents qualifying salary and consulting costs for time spent on developing internal use software. The Company capitalizes certain costs associated with internally developed software, primarily consisting of the direct labor associated with creating the internally developed software. Software development projects generally include three stages: the preliminary project stage (all costs are expensed as incurred), the application development stage (certain costs are capitalized and certain costs are expensed as incurred), and the post-implementation/operation stage (all costs are expensed as incurred). The costs capitalized in the application development stage include the costs of designing the application, coding, installation of hardware, and testing. The capitalization of software requires judgment in determining when a project has reached the application development stage and the period over which the Company expects to benefit from the use of that software.
Depreciation is calculated using the straight-line method, over the following estimated useful lives:
 
Computer equipment
3 to 7 years
Furniture and office equipment
5 to 7 years
Computer software
3 to 5 years


Leasehold improvements are amortized on a straight-line basis over the related lease term or estimated useful life, whichever is shorter.

The Company reviews its property and equipment 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 asset. If such assets are considered not recoverable, an impairment loss is recognized to the extent the carrying amount of the assets exceeds the fair value of the assets. The Company recorded impairment charges related to property and equipment of $0.4 million, $0.4 million, and $0.9 million during the years ended December 31, 2017, 2016, and 2015, respectively. The impairment charges primarily consist of technology-related projects for which the expected future net cash flows may not exceed the carrying value of the related assets as well as furniture and office equipment deemed to be impaired in conjunction with the initiative to re-design corporate office space. These charges are recorded in the Consolidated Statements of Income and classified as instructional costs and services, marketing and promotional, admissions advisory, or general and administrative expense based on the primary function with which the asset was associated.

Income Taxes
The Company uses the asset and liability method to compute the differences between the tax basis of assets and liabilities and the related financial amounts. The Company has deferred tax assets and liabilities that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are measured using the enacted statutory tax rates that are expected to apply in the years in which the temporary differences are expected to be recovered or paid. Deferred tax assets are subject to periodic recoverability assessments. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. The Company considers all positive and negative evidence relating to the realization of the deferred tax assets in assessing the need for a valuation allowance.
The Company records a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company accounts for uncertainty in income taxes using a two-step approach for evaluating tax positions. Step one, recognition, occurs when the Company concludes that a tax position, based solely on its technical merits, is more likely than not to be sustained upon examination. Step two, measurement, is only addressed if the position is more likely than not to be sustained. Under step two, the tax benefit is measured as the largest amount of benefit, determined on a cumulative probability basis, which is more likely than not to be realized upon ultimate settlement. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense.

Contingencies
The Company accrues for costs associated with contingencies, including regulatory compliance and legal matters, when such costs are probable and reasonably estimable. Contingent liabilities are adjusted as further information is obtained, circumstances change, or contingencies are resolved. The Company bases these accruals on management’s estimate of such costs, which may vary from the cost and expenses ultimately incurred in connection with any such contingency.

Intangible Assets
Finite-lived intangible assets that are acquired in business combinations are recorded at fair market value on their acquisition dates and are amortized on a straight-line basis over the economic useful life of the asset. Finite-lived intangible assets consist of course content and customer relationships.

The Company reviews its finite-lived intangible 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 asset. If such assets are not recoverable, a potential impairment loss is recognized to the extent the carrying amount of the assets exceeds the fair value of the assets. Fair value is generally determined using a discounted cash flow approach.

Indefinite-lived intangible assets are recorded at fair market value on their acquisition date and evaluated for impairment on an annual basis or more frequently if events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. Indefinite-lived intangible assets consist of trade names.

The Company reviews its indefinite-lived intangible assets annually for impairment on the first day of the fourth quarter, or more frequently if events occur or circumstances change between annual tests that would more likely than not reduce fair value below its carrying amount. The Company’s indefinite-lived intangible asset impairment test includes an option to first assess qualitative factors to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount. If the Company concludes that it is more likely than not that the fair value of the asset is less than its carrying amount based on the qualitative assessment, or that a qualitative assessment should not be performed, the Company proceeds with performing a quantitative impairment test. If performed, the quantitative impairment test compares the fair value to the carrying value of the indefinite-lived intangible asset. Fair value is generally determined using a discounted cash flow approach, using the relief from royalty method. This method incorporates assumptions regarding future sales projections, discount and royalty rates. If, based on this analysis, carrying value exceeds fair value, the indefinite-lived intangible asset is considered impaired and an impairment charge is recorded to the extent that fair value is less than carrying value.

Goodwill
Goodwill represents the excess of the purchase price of an acquired business over the fair value assigned to the underlying assets acquired and assumed liabilities. At the time of an acquisition, the Company allocates the goodwill and related assets and liabilities to its respective reporting unit. The Company identifies its reporting units by assessing whether the components of its operating segment constitute businesses for which discrete financial information is available and management regularly reviews the operating results of those components. The Company assesses goodwill for impairment at least annually on the first day of the fourth quarter, or more frequently if events occur or circumstances change between annual tests that would more likely than not reduce the fair value of the respective reporting unit below its carrying amount.
 

The Company's goodwill impairment test includes an option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount based on the qualitative assessment, or that a qualitative assessment should not be performed for a reporting unit, the Company proceeds with performing a quantitative goodwill impairment test. In performing the quantitative goodwill impairment test, the Company compares the fair value of the reporting unit to the carrying value of its net assets. If the fair value of the reporting unit exceeds the carrying value of the net assets of the reporting unit, goodwill is not impaired and no further testing is required. If the carrying value of the net assets of the reporting unit exceeds the fair value of the reporting unit, an impairment loss is recognized to the extent the fair value of the reporting unit is less than the carrying value of the reporting unit's net assets.
The process of evaluating the potential impairment of goodwill is subjective and requires significant judgment at many points during the analysis, including determining whether to perform the optional qualitative assessment and determining the fair value of the reporting unit under the quantitative test. The quantitative goodwill testing process includes the use of industry accepted valuation methods, management review and approval of certain criteria and assumptions and engaging third-party valuation specialists to assist with the analysis.

Advertising
The Company expenses all advertising costs as incurred, other than production-related advertising costs primarily attributable to television commercials, which are capitalized as a prepaid expense when paid and subsequently expensed at the time of first airing. Advertising costs for 2017, 2016, and 2015 were $71.3 million, $67.0 million, and $68.9 million, respectively, which are included within marketing and promotional expenses in our Consolidated Statements of Income.

Net Income per Common Share
Basic net income per common share is based on the weighted average number of shares of common stock outstanding during the period. Dilutive shares are computed using the Treasury Stock method and include the incremental effect of shares that would be issued upon the assumed exercise of stock options, vesting of restricted stock units, and satisfaction of service conditions for market stock units.

The following table presents a reconciliation of the numerator and denominator in the basic and diluted net income per common share calculation, broken out for continuing and discontinued operations, in thousands, except per share amounts.
 
Year-Ended December 31,
 
2017
 
2016
 
2015
Numerator:
 
 
 
 
 
Income from continuing operations
$
23,410

 
$
42,404

 
$
43,630

Income (loss) from discontinued operations, net of tax
95

 
565

 
(3,442
)
Net income
$
23,505

 
$
42,969

 
$
40,188

Denominator:
 
 
 
 
 
Denominator for basic net income per common share - weighted average shares outstanding
11,623

 
11,614

 
12,079

Effect of dilutive stock options, restricted stock, and market stock units
327

 
242

 
222

Denominator for diluted net income per common share - weighted average shares outstanding
11,950

 
11,856

 
12,301

Basic net income (loss) per common share
 
 
 
 
 
Continuing operations
$
2.01

 
$
3.65

 
$
3.61

Discontinued operations
0.01

 
0.05

 
(0.28
)
Basic net income per common share
$
2.02

 
$
3.70

 
$
3.33

Diluted net income (loss) per common share
 
 
 
 
 
Continuing operations
$
1.96

 
$
3.58

 
$
3.55

Discontinued operations
0.01

 
0.04

 
(0.28
)
Diluted net income per common share
$
1.97

 
$
3.62

 
$
3.27


Options to purchase 0.1 million, 0.3 million, and 0.3 million common shares, were outstanding but not included in the computation of diluted net income per common share in 2017, 2016, and 2015, respectively, because their effect would be antidilutive.

Comprehensive Income
Comprehensive income includes net income and all changes in the Company’s equity during a period from non-owner sources, which for the Company consists of unrealized gains and losses on available-for-sale marketable securities, net of tax, and foreign currency translation gains and losses.

Share-Based Compensation
The Company measures and recognizes compensation expense for share-based payment awards made to employees and directors, including employee stock options, restricted stock units (RSUs), performance-based restricted stock units, and market stock units (MSUs) based on estimated fair values of the share award on the date of grant.

•
Stock options, restricted stock units, and performance-based restricted stock units. To calculate the estimated fair value of stock options on the date of grant, the Company uses the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the Company to estimate key assumptions such as the expected term, volatility, risk-free interest rate, and dividend yield to determine the fair value of stock options, based on both historical information and management judgment regarding market factors and trends.

The Company recognizes share-based compensation expense for stock options and restricted stock unit awards using the straight-line method over the period that the awards are expected to vest, which is also the service period, net of actual forfeitures. Share-based compensation expense for performance-based restricted stock award units is determined based on the expected payout of the award.

As part of its adoption of ASU No. 2016-09, the Company made an accounting policy election to change the way in which it accounts for forfeitures of share-based awards. Specifically, beginning in 2017, the Company recognizes forfeitures of share-based awards as they occur in the period of forfeiture rather than estimating the number of awards expected to be forfeited at the grant date and subsequently adjusting the estimate when awards are actually forfeited. As such, adjustments to true-up the estimated forfeiture rate to actual forfeitures are no longer necessary.

•
Market stock units. To calculate the estimated fair value of MSUs on the date of grant, the Company uses Monte Carlo simulations. The Monte Carlo simulations are based on the expected average market price of the Company's common stock for a defined number of calendar days prior to the stated vesting date to estimate the expected number of MSUs that will convert into common shares at the vesting date. Management's key assumptions include volatility, risk-free interest rates, and dividend yields.

The Company recognizes share-based compensation expense for MSU awards using the straight-line method, over the period that the awards are expected to vest. Compensation cost related to an award with a market condition will be recognized regardless of whether the market condition is satisfied, provided that the requisite service has been provided.

Recent Accounting Pronouncements
In May 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-09, Scope of Modification Accounting, which is included in FASB Accounting Standards Codification (ASC) Topic 718 Compensation - Stock Compensation. The new standard clarifies when changes to the terms and conditions of share-based payment awards must be treated as modifications. Specifically, the new guidance permits companies to make certain changes to awards without accounting for them as modifications. The guidance will be effective for the Company’s annual and interim reporting periods beginning January 1, 2018, with early adoption permitted. The Company adopted this guidance during the fourth quarter of 2017, and it did not have a material impact on its business practices, financial condition, results of operations, or disclosures.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other: Simplifying the Accounting for Goodwill Impairment, which is included in ASC Topic 350, Intangibles - Goodwill and Other. The new standard eliminates the quantitative goodwill impairment analysis requirement to determine the fair value of individual assets and liabilities of a reporting unit to calculate the amount of any goodwill impairment and instead permits an entity to recognize goodwill impairment loss as the excess of a reporting unit's carrying value over the estimated fair value of the reporting unit, to the extent this amount does not exceed the carrying amount of goodwill. The new guidance continues to allow an entity to perform a qualitative assessment over goodwill impairment indicators in lieu of a quantitative assessment in certain situations. The guidance will be effective for the Company's annual and interim reporting periods beginning January 1, 2020, with early adoption permitted. The Company adopted this guidance as of January 1, 2017 and recognized a goodwill impairment charge within the Consolidated Statement of Income for the year ended December 31, 2017 to the extent that the Coding Schools reporting unit's carrying value exceeded the estimated fair value of the reporting unit. We did not proceed with estimating the fair value of individual assets and liabilities or the associated implied fair value of goodwill for the Coding Schools reporting unit (formerly step 2 of the goodwill impairment analysis process) as part of the 2017 goodwill impairment analysis as a result of the adoption of this guidance. Refer to Footnote 8 - Goodwill and Intangible Assets - for further discussion of the impact of adoption of this guidance on the goodwill impairment evaluation process and results of the 2017 goodwill impairment analysis.

In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business, included in ASC Topic 805, Business Combinations, which revises the definition of a business. The revised definition clarifies that outputs must be the result of inputs and substantive processes that provide goods or services to customers, other revenue, or investment income. The guidance will be effective for the Company's annual and interim reporting periods beginning January 1, 2018, and early adoption is permitted. The Company adopted the new definition of a business during the first quarter of 2017, and it did not have a material impact on its business practices, financial condition, results of operations, or disclosures.

In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, which is included in ASC Topic 230, Statement of Cash Flows. The new guidance clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows, including contingent consideration payments made after a business acquisition. Specifically, cash payments to settle a contingent consideration liability which are not made soon after the acquisition date should be classified as cash used in financing activities up to the initial amount of contingent consideration recognized with the remaining amount classified as cash flows from operating activities. The guidance will be effective for the Company's annual and interim reporting periods beginning January 1, 2018, and early adoption is permitted. The Company does not expect adoption of this guidance to have a material impact on its business practices, financial condition, results of operations, or disclosures.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses, which is included in ASC Topic 326, Measurement of Credit Losses on Financial Instruments. The new guidance revises the accounting requirements related to the measurement of credit losses and will require organizations to measure all expected credit losses for financial assets based on historical experience, current conditions and reasonable and supportable forecasts about collectability. Assets must be presented in the financial statements at the net amount expected to be collected. The guidance will be effective for the Company's annual and interim reporting periods beginning January 1, 2020, with early adoption permitted. The Company does not expect
adoption of this guidance to have a material impact on its business practices, financial condition, results of operations, or
disclosures.

In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which changes how companies will account for certain aspects of share-based payments to employees. As part of the new guidance, entities will be required to record the impact of income taxes arising from share-based compensation when awards vest or are settled within earnings as part of income tax expense rather than recorded as part of additional paid-in capital (APIC) and will eliminate the requirement that excess tax benefits be realized prior to recognition. Additionally, the guidance requires entities to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. Furthermore, companies will be required to make an accounting policy election at the time of adoption of the new guidance to either account for forfeitures of share-based awards in a manner similar to today's requirements (i.e., estimating the number of awards expected to be forfeited at the grant date and adjusting the estimate when awards are actually forfeited), or recognizing forfeitures as they occur with no estimate of forfeitures determined at the grant date. Entities will apply the forfeiture election provision using a modified retrospective transition approach, with a cumulative-effect adjustment recorded to retained earnings as of the beginning of the period of adoption. Finally, the new guidance simplifies the minimum statutory tax withholding requirements for employers who withhold shares upon settlement of an award on behalf of an employee to cover tax obligations. Specifically, the new guidance allows entities to withhold an amount up to the employees’ maximum individual tax rate in the relevant jurisdiction without resulting in liability classification of the award. The adoption of this guidance will result in volatility within our results of operations, primarily due to changes in our stock price. The Company adopted this guidance during the first quarter of 2017.

As part of its adoption of ASU No. 2016-09, the Company made an accounting policy election to change the way in which it accounts for forfeitures of share-based awards. Specifically, beginning in the first quarter of 2017, the Company recognizes forfeitures of share-based awards as they occur in the period of forfeiture rather than estimating the number of awards expected to be forfeited at the grant date and subsequently adjusting the estimate when awards are actually forfeited. The change in accounting policy to recognize forfeitures of share-based awards as they occur resulted in a net cumulative decrease in retained earnings of $0.1 million as of January 1, 2017. Additionally, in accordance with the provisions of ASU No. 2016-09, excess tax benefits or deficiencies arising from share-based awards are now reflected within the Consolidated Statements of Income as a component of income tax expense rather than as a component of shareholder's equity. During the year-ended December 31, 2017, the Company recognized $1.9 million of excess tax benefits related to share-based awards as a reduction to income tax expense within the Consolidated Statement of Income. The Company's adoption of the new standard also resulted in the prospective classification of excess tax benefits as cash flows from operating activities in the same manner as other cash flows related to income taxes within the Consolidated Statements of Cash Flows. Based on the prospective method of adoption chosen, the classification of excess tax benefits within the Consolidated Statements of Cash Flows for prior periods presented has not been adjusted to reflect the change. Additionally, during the year-ended December 31, 2017 the Company began presenting the cash outflows associated with taxes paid to taxing authorities on an employee's behalf for RSU award releases within financing activities in the Consolidated Statements of Cash Flows rather than within operating activities. The Company has applied this provision of the new standard retrospectively, and as such has restated net cash provided by operating activities and net cash used in financing activities for the impact of taxes paid to taxing authorities on an employee's behalf for RSU award releases within the Consolidated Statements of Cash Flows for the prior periods presented.
  
In February 2016, the FASB issued ASU No. 2016-02, Leases, to require organizations that lease assets to recognize right-to-use assets and lease liabilities for all leases with terms longer than 12 months on the balance sheet in addition to disclosing certain key information about leasing arrangements. The new standard requires a modified retrospective transition approach, meaning the guidance would be applied at the beginning of the earliest comparative period presented within the financial statements in the year of adoption. The guidance will be effective for the Company's annual reporting period beginning January 1, 2019, with early adoption permitted. The Company expects to adopt this standard at the beginning of fiscal year 2019, and all leases with terms longer than 12 months will be recorded as right-of-use assets and lease liabilities on our balance sheet upon adoption. The Company does not expect adoption of this guidance to have a material impact on its business practices, financial condition, results of operations, disclosures, liquidity, or debt-covenant compliance.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance revises the accounting requirements related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The update also changes certain disclosure requirements associated with the fair value of financial instruments. These changes will require an entity to measure, at fair value, investments in equity securities and other ownership interests in an entity - including investments in partnerships, unincorporated joint ventures and limited liability companies that do not result in consolidation and are not accounted for under the equity method - and recognize the changes in fair value within net income. Entities that hold equity investments without readily determinable fair values will be able to elect to record those investments at cost less impairment with subsequent adjustments for any observable price changes recognized in earnings. The guidance will be effective for the Company's annual and interim reporting periods beginning January 1, 2018, and early adoption is generally not permitted for most provisions. The Company will provide expanded disclosures related to investments in partnerships within our annual and quarterly filings beginning in the period of adoption. As these investments are not traded and the partnerships do not publish a fair value per share, the investments are deemed to be without readily determinable fair values, and the Company expects to elect the option to record the investments at cost less impairment and recognize subsequent adjustments for any observable price changes within earnings. The Company does not expect adoption of this guidance to have a material impact on its business practices, financial condition, results of operations, liquidity, or debt-covenant compliance.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU is a comprehensive new revenue recognition model that creates a single source of revenue guidance for all companies in all industries. The model is more principles-based than current guidance, and is primarily based on recognizing revenue at an amount that reflects consideration to which the entity expects to be entitled to in exchange for transferring goods or services to a customer. The standard allows the Company to transition to the new model using either a full or modified retrospective approach. Under the original ASU, the guidance was effective for the Company's interim and annual reporting periods beginning January 1, 2017, and early adoption was not permitted. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers, Deferral of the Effective Date, which formally defers the effective date of the new revenue standard for public entities by one year. As a result, the updated revenue guidance will be effective for the Company's interim and annual reporting periods beginning January 1, 2018, and early adoption is permitted as of the original effective date contained within ASU 2014-09.

The Company has completed an evaluation of the impact this standard will have on its revenues, operating results, and consolidated financial statements, including the performance of a detailed review of each of its revenue streams and identification of the associated performance obligations, implementation of new business process controls over revenue recognition, as well as a comparison of historical accounting policies to revised accounting practices under the new standard. The primary impact of adopting the new standard will be modifications to the timing of revenue recognition for certain revenue streams. The adoption of this guidance will not have a material impact on the Company's business practices, financial condition, or results of operations. The Company will provide expanded disclosures pertaining to revenue recognition in our annual and quarterly filings beginning in the period of adoption during the first quarter of 2018. The Company will adopt the provisions of this standard during the first quarter of 2018 utilizing the modified retrospective method of adoption.

The Company has reviewed and considered all other recent accounting pronouncements and believes there are none that could potentially have a material impact on its financial condition, results of operations, or disclosures.
Discontinued Operations
Discontinued Operations
Discontinued Operations

On February 8, 2016, the Company’s Board of Directors approved a plan to divest Arden University. On August 18, 2016, the Company completed the sale of 100% of the share capital of Arden University for a sale price of £15.0 million, of which £11.5 million ($13.9 million, net of transaction-related fees) was paid in cash at closing, with an additional £1.0 million, or $1.3 million, paid on November 15, 2016, and the remaining amount due of £2.5 million plus interest, or $3.2 million, paid on February 28, 2017.

As a result of the sale, the Company recorded a gain of $4.1 million during the year-ended December 31, 2016. During the year-ended December 31, 2017, the Company recorded a gain of $0.1 million related to interest on the November 2016 and February 2017 deferred payments.

For tax purposes, the Company incurred a capital loss on the sale and recorded a full valuation allowance on the related deferred tax asset based on the Company's expectation that it will not generate capital gains prior to the expiration of the capital loss.

A reconciliation of the line items comprising the results of operations of the Arden University business to the income (loss) from discontinued operations through the date of sale presented in the Consolidated Statements of Income for the years ended December 31, 2017, 2016, and 2015, in thousands, is included in the following table:

 
Year-Ended December 31,
 
2017
 
2016
 
2015
Revenues
$
—

 
$
8,765

 
$
13,718

Costs and expenses:
 
 
 
 
 
Instructional costs and services
—

 
4,345

 
6,969

Marketing and promotional
—

 
3,527

 
4,784

Admissions advisory
—

 
698

 
987

General and administrative
—

 
3,837

 
4,278

Total costs and expenses
—

 
12,407

 
17,018

Operating loss
—

 
(3,642
)
 
(3,300
)
Gain on sale of Arden
149

 
4,070

 
—

Other income (expense), net
—

 
(288
)
 
(84
)
Income (loss) before income taxes
149

 
140

 
(3,384
)
Income tax expense (benefit)
54

 
(425
)
 
58

Income (loss) from discontinued operations, net of tax
$
95

 
$
565

 
$
(3,442
)
Marketable Securities
Marketable Securities
Marketable Securities
The following is a summary of marketable securities, in thousands:
 
As of December 31, 2017
 
Amortized Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
(Losses)
 
Estimated
Fair Value
Tax-exempt municipal securities
$
35,070

 
$
—

 
$
(87
)
 
$
34,983

Corporate debt securities
16,102

 
8

 
(92
)
 
16,018

Variable rate demand notes
23,795

 
—

 
—

 
23,795

Total
$
74,967

 
$
8


$
(179
)

$
74,796

 
 
 
 
 
 
 
 
 
As of December 31, 2016
 
Amortized Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
(Losses)
 
Estimated
Fair Value
Tax-exempt municipal securities
$
63,113

 
$
2

 
$
(152
)
 
$
62,963

Corporate debt securities
5,804

 
13

 
(2
)
 
5,815

Total
$
68,917

 
$
15

 
$
(154
)
 
$
68,778


The unrealized gains and losses on the Company’s investments in municipal and corporate debt securities as of December 31, 2017 and 2016 were caused by changes in market values primarily due to interest rate changes. Substantially all of the Company's securities in an unrealized loss position as of December 31, 2017 had been in an unrealized loss position for less than twelve months. The Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell these securities prior to the recovery of their amortized cost basis, which may be maturity. No other-than-temporary impairment charges were recorded for the years ended December 31, 2017, 2016, and 2015.

The following table summarizes the remaining contractual maturities of the Company’s marketable securities, in thousands:
 
As of December 31, 2017
 
As of December 31, 2016
Due within one year
$
45,226

 
$
45,458

Due after one year through five years
29,570

 
23,320

Total
$
74,796

 
$
68,778



Amounts due within one year in the table above included $23.8 million of variable rate demand notes, with contractual maturities ranging from 9 years to 31 years as of December 31, 2017. The variable rate demand notes are floating rate municipal bonds with embedded put options that allow the Company to sell the security at par plus accrued interest on a settlement basis ranging from one day to seven days. We have classified these securities based on their effective maturity date, which ranges from one day to seven days from the balance sheet date.

The following table is a summary of the proceeds from the maturities of marketable securities, in thousands:
 
Years Ended December 31,
 
2017
 
2016
 
2015
Maturities of marketable securities
$
66,220

 
$
31,430

 
$
30,175

Total
$
66,220

 
$
31,430

 
$
30,175



The Company did not record any gross realized gains or gross realized losses in net income during the years ended December 31, 2017, 2016, and 2015. Additionally, there were no proceeds from sales of marketable securities prior to maturity during the years ended December 31, 2017, 2016, and 2015.
Fair Value Measurements
Fair Value Disclosures
Fair Value Measurements

The following tables summarize certain information for assets and liabilities measured at fair value on a recurring basis, in thousands:
 
 
Fair Value Measurements as of December 31, 2017 Using
Description
 
Fair Value
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
 
Cash and cash equivalents:
 
 
 
 
 
 
 
 
Cash
 
$
17,951

 
$
17,951

 
$
—

 
$
—

Money market
 
88,615

 
88,615

 
—

 
—

Marketable securities:
 
 
 
 
 
 
 
 
Tax-exempt municipal securities
 
34,983

 
—

 
34,983

 
—

Corporate debt securities
 
16,018

 
—

 
16,018

 
—

Variable rate demand notes
 
23,795

 
—

 
23,795

 
—

Total assets at fair value on a recurring basis
 
$
181,362

 
$
106,566

 
$
74,796

 
$
—


 
 
Fair Value Measurements as of December 31, 2016 Using
Description
 
Fair Value
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
 
Cash and cash equivalents:
 
 
 
 
 
 
 
 
Cash
 
$
24,658

 
$
24,658

 
$
—

 
$
—

Money market
 
68,237

 
68,237

 
—

 
—

Variable rate demand notes
 
675

 
—

 
675

 
—

Marketable securities:
 
 
 
 
 
 
 
 
Tax-exempt municipal securities
 
62,963

 
—

 
62,963

 
—

Corporate debt securities
 
5,815

 
—

 
5,815

 
—

Total assets at fair value on a recurring basis
 
$
162,348

 
$
92,895

 
$
69,453

 
$
—



The Company measures cash and cash equivalents at fair value primarily using real-time quotes for transactions in active exchange markets involving identical assets. The Company’s marketable securities are classified within Level 2 and are valued using readily available pricing sources for comparable instruments utilizing market observable inputs. The Company does not hold securities in inactive markets. The Company did not have any transfers of assets between Level 1 and Level 2 of the fair value measurement hierarchy during the years-ended December 31, 2017 and 2016.

Level 3 Measurements

DevMountain Contingent Consideration

In connection with the acquisition of DevMountain, the Company agreed to pay the former owners of DevMountain up to an additional $5.0 million in contingent consideration pending the achievement of certain revenue and operating performance metrics. At the date of acquisition, the preliminary fair value of the contingent consideration was $1.5 million, which was determined using a discounted cash flow model encompassing significant unobservable inputs. During the third quarter of 2016, the Company recorded a measurement period adjustment to reduce the fair value of the contingent consideration to zero, based on our revised assessment of the timing of cash flows as of the acquisition date. The key assumptions and terms underlying the valuation include probability-weighted cash flows for the applicable performance periods, the discount rate, and a three-year measurement period, with potential cash payments taking place at the end of each annual period through 2018 based upon the achievement of established performance targets. Reasonable changes in the unobservable inputs do not result in a material change in the fair value.

The following table presents a reconciliation of the fair value of the DevMountain contingent consideration, in thousands:

 
 
Year-Ended December 31,
 
 
2017
 
2016
Balance, beginning of period
 
$
—

 
$
—

Initial fair value of contingent consideration
 
—

 
1,500

Measurement period adjustment
 
—

 
(1,500
)
Balance, end of period
 
$
—

 
$
—



Refer to Footnote 15 - Acquisitions - for information related to the purchase price allocations of Hackbright and DevMountain, including the valuation of intangible assets acquired and goodwill related to the acquisitions.
Property And Equipment
Property And Equipment
Property and Equipment
 
Property and equipment consist of the following, presented in thousands:
 
As of December 31,
 
2017
 
2016
Computer software
$
157,290

 
$
147,149

Computer equipment
19,196

 
34,693

Furniture and office equipment
7,961

 
8,229

Leasehold improvements
1,533

 
813

Property and equipment, gross
185,980

 
190,884

Less accumulated depreciation and amortization
(150,019
)
 
(156,763
)
Property and equipment, net
$
35,961

 
$
34,121



Depreciation expense for the years ended December 31, 2017, 2016, and 2015 was $19.0 million, $20.8 million, and $21.9 million, respectively. Included in these amounts is amortization of capitalized internally developed software of $14.6 million, $16.1 million, and $15.8 million for the years ended December 31, 2017, 2016, and 2015, respectively.

Computer software includes approximately $27.6 million and $25.4 million of unamortized internally developed software as of December 31, 2017 and 2016, respectively.
Goodwill And Intangible Assets
Goodwill And Intangible Assets
Goodwill and Intangible Assets

Goodwill
During the second quarter of 2016, the Company completed the acquisitions of Hackbright and DevMountain for $18.0 million and $15.0 million in cash paid at closing, respectively. Refer to Footnote 15 - Acquisitions, for additional detail related to the acquisitions and the associated purchase price allocation. The carrying amount of goodwill as of December 31, 2017, all of which relates to the acquisitions of Hackbright and DevMountain, was $13.5 million. All of the goodwill recognized in connection with the acquisitions has been allocated to the Job-Ready Skills reportable segment.

The following table presents a rollforward of goodwill balances for the years ended December 31, 2017 and 2016, in thousands:
 
Year-Ended December 31,
 
2017
2016
Balance, beginning of period
$
23,310

$
—

Goodwill acquired as part of business combinations
—

23,310

Measurement period adjustment
22

—

Impairment of goodwill
(9,855
)
—

Balance, end of period
$
13,477

$
23,310



For goodwill impairment assessment purposes, the Company collectively refers to Hackbright and DevMountain as the Coding Schools reporting unit. The Company elected to bypass a qualitative impairment assessment over goodwill and proceed directly to the quantitative impairment assessment using the first day of the fourth quarter of 2017 as the assessment date. As discussed in Footnote 3, Summary of Significant Accounting Policies, the Company adopted ASU No. 2017-04, Intangibles - Goodwill and Other: Simplifying the Accounting for Goodwill Impairment as of January 1, 2017. This guidance simplifies the quantitative goodwill impairment assessment process by effectively eliminating step 2 of the impairment evaluation (which required a company to estimate the fair value of individual assets and liabilities of a reporting unit to determine the amount of any goodwill impairment) and instead permits an entity to recognize a goodwill impairment charge as the excess of a reporting unit's carrying value over the estimated fair value of the reporting unit.

The Company performed the quantitative goodwill impairment test using an income-based approach to determine fair value. The income approach consisted of a discounted cash flow model that included probability weighted projections of future cash flows for the Coding Schools reporting unit under various scenarios, calculating a terminal value, and discounting such cash flows by a risk-adjusted rate of return. The determination of fair value of the Coding Schools reporting unit primarily consists of using unobservable inputs under the fair value measurement standards

The Company believes that the most critical assumptions and estimates used in determining the estimated fair value of its Coding Schools reporting unit, include, but are not limited to, the amounts and timing of expected future cash flows, the discount rate and the terminal growth rate. The assumptions used in determining the expected future cash flows consider various factors such as historical operating trends, particularly in student enrollment and pricing, anticipated economic and regulatory conditions, reasonable expectations for planned business expansion opportunities, and long-term operating strategies and initiatives. The discount rate is based on the Company's assumption of a prudent investor's required rate of return for assuming the risk of investing in a particular company. The terminal growth rate reflects the sustainable operating income a reporting unit could generate in a perpetual state as a function of revenue growth, inflation and future margin expectations. The Company also believes that the assumptions used in the goodwill impairment tests are consistent with a reasonable market participant view while employing the concept of highest and best use of the asset.

Based on the results of the quantitative goodwill impairment analysis performed, the Company recorded a $9.9 million goodwill impairment charge during the year-ended December 31, 2017 which is reflected within the Goodwill and intangible asset impairment charges line in the Consolidated Statements of Income. The goodwill impairment charge represents the excess of the carrying value of the net assets of the Coding Schools reporting unit over the estimated fair value of the reporting unit calculated as part of the annual quantitative goodwill impairment assessment. The goodwill impairment charge was entirely attributable to the Coding Schools reporting unit, which is included within the Company's Job-Ready Skills segment. There was no goodwill impairment charge recorded during the year-ended December 31, 2016.

Intangible Assets
In connection with the purchase price allocations arising from the acquisitions of Hackbright and DevMountain during the second quarter of 2016, the Company identified certain existing trade names, customer relationships, and course content which are considered to be intangible assets. The customer relationship and course content acquired intangible assets were determined to be finite-lived and are being amortized on a straight-line basis, which is consistent with the expected use of economic benefits associated with these assets. The Company assigned an indefinite useful life to the trade name intangible assets, as it is believed these assets have the ability to generate cash flows indefinitely. In addition, there are no legal, regulatory, contractual, economic or other factors to limit the useful life of the trade name intangibles. The gross carrying amount and accumulated amortization of acquired intangible assets, all of which are related to the second quarter 2016 acquisitions of Hackbright and DevMountain, are as follows, in thousands:
 
 
As of December 31, 2017
 
As of December 31, 2016
Course content
 
$
1,100

 
$
1,100

Customer relationships
 
800

 
800

Finite-lived intangible assets, gross
 
1,900

 
1,900

 
 
 
 
 
Accumulated amortization - course content
 
(960
)
 
(441
)
Accumulated amortization - customer relationships
 
(338
)
 
(138
)
Total accumulated amortization
 
(1,298
)
 
(579
)
Finite-lived intangible asset, net
 
$
602

 
$
1,321

 
 
 
 
 
Indefinite-lived trade names (non-amortizable), gross
 
7,900

 
7,900

Impairment of trade names
 
(5,100
)
 
—

Indefinite-lived trade names (non-amortizable), net

 
$
2,800

 
$
7,900

 
 
 
 
 
     Total intangible assets, net
 
$
3,402

 
$
9,221



In conducting the annual impairment test for indefinite-lived intangible assets, the Company may elect to first evaluate the likelihood of impairment by considering qualitative factors relevant to the reporting unit, such as macroeconomic conditions, industry and market considerations, cost factors and financial performance relevant to the asset being tested, and any other factors that have a significant bearing on fair value, such as royalty rates. The Company elected to bypass a qualitative impairment assessment over indefinite-lived intangible assets and proceed directly to the quantitative impairment assessment using the first day of the fourth quarter of 2017 as the assessment date.

The Company performed the quantitative indefinite-lived intangible asset impairment test using an income-based approach to determine fair value. The income approach consisted of a discounted cash flow model, using the relief from royalty method, which included probability weighted projections of future revenues for both Hackbright and DevMountain under various scenarios, identifying a royalty rate, calculating a terminal value, and discounting such cash flows by a risk-adjusted rate of return. The determination of fair value of Hackbright and DevMountain trade names primarily consists of using unobservable inputs under the fair value measurement standards.
The Company believes that the most critical assumptions and estimates used in determining the estimated fair value of the Hackbright and DevMountain trade names, include, but are not limited to, the amounts and timing of expected future revenues, the royalty rate, the discount rate and the terminal growth rate. The assumptions used in determining the expected future revenues consider various factors such as historical operating trends, particularly in student enrollment and pricing, anticipated economic and regulatory conditions, reasonable expectations for planned business expansion opportunities, and long-term operating strategies and initiatives. The royalty rate is based on our assumption of what a reasonable market participant would pay to license the Hackbright and DevMountain trade names, expressed as a percentage of revenues. The discount rate is based on the Company's assumption of a prudent investor's required rate of return for assuming the risk of investing in a particular company. The terminal growth rate reflects the sustainable revenue growth the business could generate in a perpetual state as a function of inflationary expectations. The Company also believes that the assumptions used in the indefinite-lived intangible asset impairment tests are consistent with a reasonable market participant view while employing the concept of highest and best use of the asset.
Based on the results of the quantitative indefinite-lived intangible asset impairment assessment performed, the Company recorded a $5.1 million impairment charge during the year-ended December 31, 2017, which is reflected within the Goodwill and intangible asset impairment charges line in the Consolidated Statements of Income. The indefinite-lived intangible asset impairment charge represents the excess of the carrying value of the Hackbright and DevMountain trade names over their respective estimated fair values calculated as part of the annual quantitative indefinite-lived intangible asset impairment assessment. The indefinite-lived intangible asset impairment charge was entirely attributable to the Hackbright and DevMountain trade names, and is reflected within the Company's Job-Ready Skills segment. There was no impairment charge related to indefinite-lived intangible assets recorded during the year-ended December 31, 2016.

The Company amortizes its finite-lived intangible assets on a straight-line basis. The estimated useful lives of the finite-lived intangible assets range from one to four years. The remaining weighted average useful life of the Company’s finite-lived intangible assets as of December 31, 2017 is 1.8 years. All of the intangible assets recognized in connection with the acquisitions of Hackbright and DevMountain have been allocated to the Job-Ready Skills reportable segment. The following table presents the total amount of amortization expense recognized for definite-lived intangible assets, in thousands.

 
 
Year-Ended December 31,
 
 
2017
 
2016
 
2015
Amortization expense
 
$
719

 
$
579

 
$
—



The following table presents future amortization expense for finite-lived intangible assets as of December 31, 2017, in thousands:
2018
340

2019
200

2020
62

2021
—

2022
—

2023 and thereafter
—

Total
$
602

Accrued Liabilities
Accrued Liabilities
Accrued Liabilities

Accrued liabilities consist of the following, in thousands: 
 
As of December 31, 2017
 
As of December 31, 2016
Accrued compensation and benefits
$
9,151

 
$
12,976

Accrued instructional
3,662

 
3,811

Accrued vacation
1,122

 
1,111

Accrued invoices
10,683

 
11,252

Other(1)
2,001

 
2,152

Total
$
26,619

 
$
31,302



(1) "Other" in the table above consists primarily of the current portion of deferred rent, customer deposits, and other miscellaneous accruals.
Commitments And Contingencies
Commitments And Contingencies Disclosure
Commitments and Contingencies

Operating Leases
The Company leases its office facilities and certain office equipment under various noncancelable operating leases. On August 5, 2016, the Company entered into an amendment of its lease with Minneapolis 225 Holdings, LLC pursuant to which the Company renewed and extended its existing lease for premises at 225 South Sixth Street in Minneapolis, Minnesota through October 31, 2028. Renewal terms under the amended lease agreement included a reduction in the area of leased space occupied by the Company of approximately 64,000 square feet and provided for lease incentives of approximately $13.6 million. The lease incentives, which were paid in cash to the Company by the lessor, are included within deferred rent and accrued liabilities within the Consolidated Balance Sheet and will be recognized ratably as a reduction of rent expense over the term of the lease. Renewal terms under this lease allow the Company to extend the lease for up to two additional five-year terms.

The following presents the Company's future minimum lease commitments as of December 31, 2017, in thousands: 
2018
$
6,886

2019
5,695

2020
5,329

2021
4,689

2022
4,550

2023 and thereafter
28,305

Total
$
55,454



The Company recognizes rent expense on a straight-line basis over the term of the lease, although the lease may include escalation clauses providing for lower payments at the beginning of the lease term and higher payments at the end of the lease term. Cash or lease incentives received from lessors are recognized on a straight-line basis as a reduction to rent from the date the Company takes possession of the property through the end of the lease term. The Company includes the short-term and long-term components of the unamortized portion of the lease incentives within accrued liabilities and deferred rent, respectively, on the Consolidated Balance Sheets.

Total rent expense, related taxes, and operating expenses under operating leases for the years ended December 31, 2017, 2016, and 2015, was $10.7 million, $10.8 million, and $10.0 million, respectively.

Revolving Credit Facility
On December 18, 2015, the Company entered into a secured revolving credit facility (the Facility) with Bank of America, N.A., and certain other lenders. The Facility provides the Company with a committed $100.0 million of borrowing capacity with an increase option of an additional $50.0 million. The Company's obligations under the Facility are guaranteed by all existing material domestic subsidiaries and secured by substantially all assets of the Company and such subsidiaries. The Facility expires on December 18, 2020.

Borrowings under the Credit Agreement bear interest at a rate equal to LIBOR plus an applicable rate of 1.75% to 2.25% based on the Company’s consolidated leverage ratio or, at the Company’s option, an alternative base rate (defined as the higher of (a) the federal funds rate plus 0.5%, (b) Bank of America’s prime rate, or (c) the one-month LIBOR plus 1.0%) plus an applicable rate of 0.75% to 1.25% based on the Company’s consolidated leverage ratio. The Credit Agreement requires payment of a commitment fee, based on the Company’s consolidated leverage ratio, charged on the unused credit facility. The Company recorded commitment fee expenses of $0.3 million, $0.3 million, and $0.3 million in other income (expense), net, for the years ended December 31, 2017, 2016, and 2015, respectively. Outstanding letters of credit are also charged a fee, based on the Company’s consolidated leverage ratio. The Company capitalized approximately $0.8 million of debt issuance costs related to the December 18, 2015 credit facility, and these costs are being amortized on a straight-line basis over a period of five years. Charges related to our credit facility are included in other income (expense), net.

The Credit Agreement contains certain covenants that, among other things, require maintenance of certain financial ratios, as defined in the agreement. Failure to comply with the covenants contained in the Credit Agreement will constitute an event of default and could result in termination of the agreement and require payment of all outstanding borrowings. As of December 31, 2017 and December 31, 2016 there were no borrowings under the credit facility, and the Company was in compliance with all debt covenants.

Litigation
In the ordinary conduct of business, the Company is subject to various lawsuits and claims covering a wide range of matters including, but not limited to, claims involving learners or graduates and routine employment matters. In addition, the proposed merger with Strayer Education, Inc. also may subject the Company to shareholder or other related litigation. While the outcome of these matters is uncertain, the Company does not believe there are any significant matters as of December 31, 2017 that are probable and estimable, for which the outcome could have a material adverse impact on its consolidated financial position or results of operations.
Share Repurchase Program and Dividends
Share Repurchase Program and Dividends
Share Repurchase Program and Dividends

Share Repurchase Program
The Company announced its current share repurchase program in July 2008. The Board of Directors authorizes repurchases of outstanding shares of common stock from time to time depending on market conditions and other considerations. A summary of the Company’s comprehensive share repurchase activity from the program's commencement through December 31, 2017, all of which was part of its publicly announced program, is presented below, in thousands: 
Board authorizations:
 
July 2008
$
60,000

August 2010
60,662

February 2011
65,000

December 2011
50,000

August 2013
50,000

December 2015
50,000

Total amount authorized
335,662

Total value of shares repurchased
308,702

Residual authorization
$
26,960



The following table summarizes shares repurchased, in thousands:
 
Year-Ended December 31,
 
2017
 
2016
Number of shares repurchased
51

 
488

Value of shares repurchased, excluding commissions
$
3,471

 
$
25,614



As of December 31, 2017, the Company had purchased an aggregate of 6.7 million shares under the program’s outstanding authorizations at an average price per share of $46.28 totaling $308.7 million.

Dividends
During the year-ended December 31, 2017, the Company declared the following cash dividends, presented below in thousands except per share amounts:
Declaration Date
 
Record Date
 
Payment Date
 
Dividend per Share
 
Total Dividend Amount
February 22, 2017
 
March 10, 2017
 
April 13, 2017
 
$
0.41

 
$
4,813

May 2, 2017
 
May 24, 2017
 
July 14, 2017
 
$
0.41

 
$
4,847

August 3, 2017
 
August 25, 2017
 
October 13, 2017
 
$
0.41

 
$
4,847

December 7, 2017
 
December 22, 2017
 
January 18, 2018
 
$
0.43

 
$
5,041



During the three months ended December 31, 2017, the dividend of $0.43 per outstanding share of common stock declared on December 7, 2017 was recorded as a reduction to retained earnings. Of the total dividend amount, $5.0 million is attributable to shares of common stock outstanding as of the record date and restricted stock units (RSUs) expected to vest in the next twelve months. This amount, along with the portion of dividends declared in prior quarters related to unvested RSUs, is included within dividends payable in the Company's consolidated balance sheet as of December 31, 2017. The remaining balance is attributable to dividends declared on restricted stock units expected to vest subsequent to the next twelve months and is classified as other liabilities in the Company's consolidated balance sheet as of December 31, 2017. Dividends declared on RSUs are forfeitable prior to vesting. All future dividends are subject to declaration by the Company's board of directors and may be adjusted due to future business needs or other factors deemed relevant by the board of directors.
Share-Based Compensation
Share-Based Compensation
Share-Based Compensation

Share-Based Incentive Plans
On May 6, 2014, the Company implemented a stock incentive plan (the 2014 Plan) that allows for incentive stock options, non-qualified stock options, stock appreciation rights (SARs), restricted stock awards (RSAs), stock unit awards, and other stock-based awards to be granted to employees, directors, officers, and others. The 2014 Plan authorized the issuance of 480,000 shares of the Company's common stock, plus 830,888 shares that remained available for future grants under the 2005 Stock Incentive Plan (the 2005 Plan) on the effective date of the 2014 Plan. Upon effectiveness of the 2014 Plan, no further awards have been or will be made under the 2005 Plan. As of December 31, 2017, the maximum number of shares of common stock reserved under the 2014 Plan was approximately 1.3 million, of which 1.1 million shares were available for grant.

The Board of Directors establishes the terms and conditions of all grants, subject to the 2014 Plan and applicable provisions of the Internal Revenue Code (the Code). Under the 2014 Plan, options must be granted at an exercise price not less than the fair market value of the Company’s common stock on the grant date. The options expire on the date determined by the Board of Directors, but may not extend more than ten years from the grant date. The options generally become exercisable over a four year period. Restricted stock units (RSUs) generally vest over a period of one to three years. Canceled options and RSUs become available for reissuance under the 2014 Plan. Upon an exercise of stock options, the Company issues new shares.

The Company also has issued stock options under the discontinued 2005 Plan. Stock options, restricted stock units, and market stock units issued pursuant to the 2005 Plan are still outstanding. However, unexercised options that are canceled upon termination of employment are not available for reissuance under the 2005 Plan.

Share-Based Compensation Expense
The table below reflects the Company’s share-based compensation expense recognized in the consolidated statements of income, in thousands:
 
Year-Ended December 31,
 
2017

2016

2015
Instructional costs and services
$
781

 
$
721

 
$
408

Marketing and promotional
765

 
777

 
581

Admissions advisory
46

 
54

 
39

General and administrative
4,932

 
4,870

 
5,566

Share-based compensation expense included in operating income
6,524

 
6,422

 
6,594

Tax benefit from share-based compensation expense
2,543

 
2,433

 
2,458

Share-based compensation expense, net of tax
$
3,981

 
$
3,989

 
$
4,136



The following table summarizes additional information regarding share-based compensation arrangements for the years presented, in thousands:
 
Year-Ended December 31,
 
2017
 
2016
 
2015
Net proceeds from stock options exercised
$
1,042

 
$
5,363

 
$
1,337

Intrinsic value of stock options exercised
7,820

 
5,294

 
615

Tax benefit (shortfall) realized from share-based compensation arrangements
1,901

 
462

 
(119
)


As of December 31, 2017, total compensation cost related to nonvested service-based stock options, RSUs, and MSUs to be recognized in future periods was $3.4 million. The weighted average period over which this expense will be recognized is 1.0 year. The fair value of stock options and RSUs that vested during the years ended December 31, 2017, 2016, and 2015 was $5.9 million, $4.6 million, and $6.0 million, respectively.




Service-Based Stock Options
The following table summarizes stock option activity for the year-ended December 31, 2017:
    
 
Plan Options Outstanding
 
 
 
 
Non-Qualified
 
Weighted-Average Exercise Price per Share
 
 
(in thousands, except per share data)
Balance, December 31, 2016
 
565

 
$
53.97

Granted
 
107

 
76.70

Exercised
 
(212
)
 
55.47

Forfeited or expired
 
(29
)
 
56.05

Balance, December 31, 2017
 
431

 
$
58.72



The aggregate intrinsic value in the table below represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last day of the year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2017. The amount of aggregate intrinsic value will change based on the fair market value of the Company’s stock.
 
Number of Shares
 
Weighted-Average Exercise or Purchase Price per Share
 
Weighted-Average Remaining Contractual Term
 
Aggregate Intrinsic Value
 
(in thousands, except per share and contractual term data)
Balance, December 31, 2017
431

 
$
58.72

 
7.74
 
$
8,060

Vested and expected to vest, December 31, 2017
431

 
$
58.72

 
7.74
 
$
8,060

Exercisable, December 31, 2017
116

 
$
55.42

 
6.58
 
$
2,546



The fair value of the Company's service-based stock options was estimated as of the date of grant using the Black-Scholes option pricing model with the following assumptions:
 
Year-Ended December 31,
 
2017
 
2016
 
2015
Weighted-average exercise price (1)
$
76.70

 
$
45.46

 
$
65.40

Expected life (in years) (2)    
4.59

 
4.60

 
4.56

Expected volatility (3)    
34.02
%
 
37.62
%
 
42.35
%
Risk-free interest rate (4)    
1.79
%
 
1.18
%
 
1.46
%
Dividend yield (5)    
2.40
%
 
3.84
%
 
2.53
%
Weighted-average fair value of options granted
$
18.90

 
$
10.45

 
$
19.46


(1)
The weighted-average exercise price is equal to the Company's weighted-average stock price as of the grant date during each of the respective years.
(2)
The Company’s expected life on options granted during the years ended December 31, 2017, 2016 and 2015 is based upon its historical stock option exercise, forfeiture, and expiration activity.
(3)
The expected volatility assumption for the years ended December 31, 2017, 2016 and 2015 is based upon the Company’s historical stock price for a period commensurate with the expected life of the options.
(4)
The risk-free interest rate assumption is based upon the U.S. Treasury zero coupon yield curve on the grant date for a maturity similar to the expected life of the options.
(5)
The dividend yield assumption is based on our history and expectation of regular dividend payments.




Restricted Stock Units
The following table summarizes RSU activity for the year-ended December 31, 2017:
 
Number of Shares
 
Weighted-Average Grant Date Fair Value per Share
 
(in thousands, except per share data)
Balance, December 31, 2016
159

 
$
56.07

Granted
54

 
80.58

Vested
(57
)
 
62.17

Canceled
(17
)
 
60.50

Balance, December 31, 2017
139

 
$
62.54



The aggregate intrinsic value in the table below represents the total pre-tax intrinsic value of RSUs on December 31, 2017. The amount of aggregate intrinsic value will change based on the fair market value of the Company’s stock.
 
Number of Shares
 
Weighted-Average Remaining Contractual Term
 
Aggregate Intrinsic Value
 
(in thousands, except contractual term data)
Balance, December 31, 2017
139

 
1.24
 
$
10,795

Vested and expected to vest, December 31, 2017
139

 
1.24
 
$
10,795



Market Stock Units
The following table summarizes MSU activity for the year-ended December 31, 2017:
 
Number of Shares
 
Weighted-Average Grant Date Fair Value per Share
 
(in thousands, except per share data)
Balance, December 31, 2016
104

 
$
24.13

Granted
—

 
—

Vested (1)
—

 
—

Canceled
—

 
—

Balance, December 31, 2017
104

 
$
24.13


(1)
The MSUs become fully vested on May 7, 2018. The vesting of MSUs is subject to the achievement of the 90-day average closing price of the Company's common stock at the end of the defined service period. The shares vested is calculated using the 90-day average closing price of the Company's common stock as of December 31, 2018.

The aggregate intrinsic value in the table below represents the total pre-tax intrinsic value of MSUs on December 31, 2017. The amount of aggregate intrinsic value will change based on the fair market value of the Company’s stock.
 
Number of Shares
 
Weighted-Average Remaining Contractual Term
 
Aggregate Intrinsic Value
 
(in thousands, except contractual term data)
Balance, December 31, 2017
104

 
0.35
 
$
8,047

Expected to vest, December 31, 2017
104

 
0.35
 
$
8,047

Income Taxes
Income Taxes
Income Taxes
The components of income tax expense are as follows, and presented in thousands:
 
Year-Ended December 31,
 
2017

2016

2015
Current income tax expense:
 
 
 
 
 
Federal
$
20,159

 
$
27,074

 
$
26,561

State
3,227

 
3,186

 
1,649

Deferred income tax expense (benefit):
 
 
 
 
 
Federal
(716
)
 
(3,969
)
 
(1,575
)
State
(193
)
 
(311
)
 
(66
)
Income tax expense
$
22,477

 
$
25,980

 
$
26,569



On December 22, 2017, the Tax Cuts and Jobs Act of 2017 ("Tax Reform") was signed into law making significant changes to the Internal Revenue Code. Changes included, but are not limited to, a corporate tax rate decrease from 35% to 21% and modification of the employee compensation limit effective for tax years beginning after December 31, 2017. The Company has calculated its best estimate of the impact of Tax Reform in its year-end income tax provision in accordance with its understanding of the Tax Reform and guidance available as of the date of these financial statements. As a result, the Company has recorded $2.2 million of additional income tax expense in the fourth quarter of 2017, the period in which the legislation was enacted. The provisional amount related to the remeasurement of deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future was $1.4 million. The provisional amount related to the employee compensation limit was $0.8 million.

On December 22, 2017, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of Tax Reform. In accordance with SAB 118, the Company has determined that the $1.4 million of the tax expense recorded in connection with the remeasurement of deferred tax assets and liabilities and the $0.8 million of tax expense recorded in connection with the employee compensation limit were provisional amounts and reasonable estimates at December 31, 2017. Given the significant complexity of Tax Reform, additional work is necessary to perform a more detailed analysis of these items. The provisional estimate may be adjusted in future periods due to, among other things, additional analysis performed by the Company and additional guidance that may be issued by the U.S. Department of Treasury, the Securities and Exchange Commission, or the Financial Accounting Standards Board.

The following presents a reconciliation of income tax computed at the U.S. statutory rate to the effective income tax rate:
 
Year-Ended December 31,
 
2017

2016
 
2015
Statutory rate
35.0
 %
 
35.0
 %
 
35.0
 %
State income taxes
4.6

 
2.6

 
2.4

Net impact of Tax Reform
4.8

 
—

 
—

Impairment of goodwill and intangible assets
3.6

 
—

 
—

Nondeductible compensation
3.5

 
0.3

 
0.4

Nondeductible transaction costs
2.0

 
0.3

 
—

Excess tax benefit on share-based compensation
(3.8
)
 
—

 
—

Tax-exempt interest
(0.4
)
 
(0.2
)
 
(0.2
)
Other
(0.3
)
 
—

 
0.2

Effective income tax rate
49.0
 %
 
38.0
 %
 
37.8
 %

The following table presents significant components of the Company’s deferred income tax assets and liabilities as of December 31, 2017 and 2016, in thousands:
 
Year-Ended December 31,
 
2017
 
2016
Deferred income tax assets:
 
 
 
Net operating loss carryforwards
$
219

 
$
1,069

Capital loss carryforwards
4,075

 
6,501

Allowance for doubtful accounts
2,618

 
3,881

Deferred rent and other liabilities
4,003

 
6,429

Share-based compensation
2,918

 
5,611

Goodwill and intangible assets
934

 
—

Accumulated other comprehensive loss
41

 
52

Deferred income tax assets, before valuation allowance
14,808

 
23,543

Valuation allowance
(4,075
)
 
(6,501
)
Deferred income tax assets
10,733

 
17,042

Deferred income tax liabilities:
 
 
 
Prepaid expenses
(423
)
 
(1,816
)
Property and equipment
(7,326
)
 
(11,131
)
Goodwill and intangible assets
—

 
(2,234
)
Other
(145
)
 
(8
)
Deferred income tax liabilities
(7,894
)
 
(15,189
)
Net deferred tax asset
$
2,839

 
$
1,853



The net operating loss carryforwards in the table above represent federal net operating loss carryforwards of approximately $0.2 million and state net operating loss carryforwards of approximately $2.0 million obtained in the Hackbright acquisition that expire beginning in 2035.

Section 382 of the U.S. Internal Revenue Code generally imposes an annual limitation on the amount of net operating loss carryforwards that might be used to offset taxable income when a corporation has undergone significant changes in stock ownership. In 2017, the Company completed a Section 382 analysis of the loss carryforwards related to the Hackbright acquisition and determined that all of the loss carryforwards are utilizable.

The Company regularly assesses the likelihood that its deferred tax assets will be recovered in the future. A valuation allowance is recorded to the extent the Company concludes a deferred tax asset will not more-likely-than-not be realized. The Company considers all positive and negative evidence related to the realization of the deferred tax assets in assessing the need for a valuation allowance. If the Company determines it will not realize all or part of its deferred tax assets, adjustments to the deferred tax asset are charged to earnings in the period such determinations were made.

The valuation allowance for deferred tax assets as of December 31, 2017 and 2016 was $4.1 million and $6.5 million, respectively. The valuation allowance was established in 2016 and relates to the capital loss generated by the divestiture of Arden University in 2016. The Company concluded that it was more likely than not that the deferred tax asset for the capital loss carryforward would not be realized due to a lack of history of recognizing capital gains. The valuation allowance decreased by $2.4 million due to the revaluation of the capital loss carryforward from a 35% federal income tax rate to a 21% federal income tax rate as a result of the enactment of Tax Reform.

The Company's accounting for deferred tax consequences represents its best estimate of future events. A valuation allowance established, or revised, as a result of the Company's assessment is recorded through income tax expense in the Consolidated Statements of Income. Changes in current estimates due to unanticipated events, or other factors, could have a material effect on the Company's financial condition and results of operations.

As part of its adoption of ASU No. 2016-09, the Company now reflects excess tax benefits or deficiencies arising from share-based awards within the Consolidated Statements of Income as a component of income tax expense rather than as a component of shareholders' equity. For the year ended December 31, 2017, the Company recognized $1.9 million of excess tax benefits related to share-based awards as a reduction to income tax expense within the Consolidated Statements of Income. For the year ended December 31, 2016, the Company recorded a tax benefit from share-based compensation arrangements against additional paid-in-capital and reduced taxes payable by a corresponding amount of $0.5 million. For the year ended December 31, 2015, the Company recorded a tax shortfall from share-based compensation arrangements of $0.1 million.

The Company is subject to income taxes in the U.S. federal and various state jurisdictions. During 2017, a state income tax audit for New York tax years 2012-2014 was completed, resulting in a $216 thousand income tax and interest charge. During 2016, state income tax audits for Illinois tax years 2012 and 2013 and Minnesota tax years 2012-2014 were completed, resulting in a $79 thousand income tax and interest charge. No other income tax audits are ongoing or pending as of December 31, 2017.

For U.S. federal tax purposes, the statute of limitations remains open on tax years from 2014. For state purposes, the statute of limitations varies by jurisdiction, but is generally from three to five years.

As of December 31, 2017, the Company had $1.1 million of total gross unrecognized tax benefits. Of this total, $0.8 million (net of the federal benefit on state issues) represents the amount of unrecognized tax benefits that, if recognized, would favorably affect its effective income tax rate in future periods.
The following table reconciles the beginning and ending amount of unrecognized tax benefits, in thousands:
 
Year-Ended December 31,
 
2017
 
2016
 
2015
Balance at January 1
$
22

 
$
27

 
$
38

Additions for tax positions of prior years
1,060

 
—

 
—

Reductions due to lapse of the applicable statute of limitations
(2
)
 
(5
)
 
(11
)
Balance at December 31
$
1,080

 
$
22

 
$
27



The Company does not anticipate any significant increases or decreases in unrecognized tax benefits within the next twelve months. In the fourth quarter of 2016, the statute of limitations expired on approximately $5 thousand in unrecognized tax benefits related to state issues from tax year 2012. In the fourth quarter of 2017, the statue of limitations expired on approximately $2 thousand in unrecognized tax benefits related to state issues from tax year 2012. In the fourth quarter of 2018, the statute of limitations will expire on approximately $144 thousand in unrecognized tax benefits related to state issues from tax years 2013 and 2014.

The Company continues to recognize interest and penalties related to uncertain tax positions in income tax expense. The Company recognized $5 thousand, $1 thousand, and $2 thousand in interest and penalties related to uncertain tax positions in income tax expense during the years ended December 31, 2017, 2016, and 2015, respectively.
Other Investments
Other Investments
Other Investments

At December 31, 2017, the Company held a $3.9 million investment in a limited partnership, with a commitment to invest up to an additional $0.6 million through December 2022. At December 31, 2016, the Company's investment in the limited partnership was $2.9 million. During the years ended December 31, 2017 and 2016, the Company made investments totaling $1.0 million and $0.5 million in the partnership, respectively. The partnership invests in innovative companies in the health care field. The Company's investment comprises less than 3.0% of the total partnership interest; accordingly, the Company designated the investment as a cost method investment and classified it within other assets in the consolidated balance sheets as of December 31, 2017 and 2016.

At December 31, 2017, the Company held a $3.5 million investment in a limited partnership that invests in education and education-related technology companies, with a commitment to invest an additional $1.2 million through December 2025. At December 31, 2016, the Company's investment in the limited partnership was $3.1 million. During the years ended December 31, 2017 and 2016, the Company made investments totaling $0.4 million and $3.1 million in the limited partnership, respectively. The Company's investment comprises less than 5.0% of the total partnership interest; accordingly, the Company designated the investment as a cost method investment and classified it within other assets in the consolidated balance sheet as of December 31, 2017.

At December 31, 2017, the Company held a $0.4 million investment in a limited partnership that invests in education and education-related technology companies, with a commitment to invest up to an additional $1.8 million through September 2027. During the twelve months ended December 31, 2017, the Company made investments totaling $0.4 million in the partnership. The Company's investment comprises less than 5.0% of the total partnership interest; accordingly, the Company designated the investment as a cost method investment and classified it within other assets in the consolidated balance sheets as of December 31, 2017. As of December 31, 2016, the Company had made no investments in this partnership.

The fair value of the Company’s cost method investments is not estimated if there are no identified events or changes in circumstances that management considers to have a significant adverse impact on the fair value of the partnership investments. During the years ended December 31, 2017 and 2016, no events or changes in circumstances which could have a significant adverse impact on the fair value of the partnership investments were identified. When measured on a nonrecurring basis, if changes in circumstances are identified, the Company’s other investments classified as cost method investments are considered to be Level 3 in the fair value hierarchy due to the use of unobservable inputs to measure fair value. During the years ended December 31, 2017 and 2016, no impairment charges were recorded related to the Company’s cost method investments.
Acquisitions
Acquisitions
Acquisitions

On April 22, 2016, the Company acquired 100 percent of the share capital of Sutter Studios, Inc. d/b/a Hackbright Academy, Inc. (Hackbright) for $18.0 million in cash paid at closing. Hackbright is a leading software engineering school for women, with a mission to increase female representation in the technology sector. Hackbright, headquartered in San Francisco, offers in-person, immersive 12-week full-time educational programs in software engineering as well as part-time programs. Upon acquisition, the Company changed the official corporate name of Hackbright to Hackbright Academy, Inc.

On May 4, 2016, the Company acquired 100 percent of the membership interests in DevMountain, LLC (DevMountain). DevMountain is a leading software development school with a mission to be the most impactful coding school in the country by offering affordable, high-quality, leading-edge software coding education. The purchase price of the DevMountain acquisition consisted of $15.0 million in cash paid at closing, and up to an additional $5.0 million in contingent consideration to be paid at the end of three successive, non-cumulative periods based upon the achievement of established revenue and operating performance targets. The liability associated with the expected payment of the contingent consideration obligation was preliminarily valued at $1.5 million at the acquisition date. During the third quarter of 2016, the Company recorded a measurement period adjustment to reduce the fair value of the contingent consideration to zero based on our revised assessment of the timing of cash flows as of the acquisition date. This measurement period adjustment was reflected as a corresponding decrease to goodwill as of the acquisition date. The fair value of the contingent consideration liability was determined using a discounted cash flow valuation methodology utilizing significant unobservable inputs.

Hackbright and DevMountain's core competencies of providing the 21st Century workforce with job-ready skills in a highly competitive market are consistent with the Company's strategy to expand its addressable market and offer working adults the most direct path between learning and employment. The Company incurred approximately $1.4 million of transaction costs in connection with the acquisitions of Hackbright and DevMountain, and these costs are included in general and administrative expenses within the Consolidated Statements of Income for the year-ended December 31, 2016.

The Company accounted for these acquisitions as business combinations, with the net assets acquired recognized at fair value at the date of acquisition. The results of operations of Hackbright and DevMountain are included in the Consolidated Statements of Income beginning on their respective dates of acquisition and within the Job-Ready Skills reportable segment for segment reporting purposes. The Company has not provided pro forma information or the revenues and operating results of the acquired entities because the revenues and results of operations are not material to the Company's consolidated revenues or consolidated results of operations.

A reconciliation of the assets acquired and liabilities assumed to the net cash paid to acquire Hackbright and DevMountain on the acquisition date is shown in the table below, in thousands:

 
Hackbright
 
DevMountain
Cash and cash equivalents
$
499

 
$
336

Other assets
407

 
745

Intangibles:
 
 
 
     Trade Name
4,500

 
3,400

     Customer Relationships
800

 
—

     Course Content
900

 
200

Goodwill
12,659

 
10,672

Deferred tax asset (liability)
(988
)
 
12

Liabilities assumed
(788
)
 
(418
)
Total assets acquired and liabilities assumed, net
17,989

 
14,947

Less: Fair value of contingent consideration
—

 
—

Less: Cash acquired
(499
)
 
(336
)
Cash paid for acquisition, net of cash acquired
$
17,490

 
$
14,611



We determined the fair value of assets acquired and liabilities assumed based on assumptions that reasonable market participants would use while employing the concept of highest and best use of the assets and liabilities. The Company utilized the following assumptions, some of which include significant unobservable inputs which would qualify the valuations as Level 3 measurements, and valuation methodologies to determine fair value:
•
Intangible assets - The Company used income approaches to value the acquired intangibles. The trade names were valued using the relief-from-royalty method, which represents the benefit of owning these intangible assets rather than paying royalties for their use. Course content was valued using the differential income method, and the customer relationships were valued using the excess earnings method.
•
Deferred revenue - The Company estimated the fair value of deferred revenue using the cost build-up method, which represents the cost to deliver the services, plus a normal profit margin. Deferred revenue is included in liabilities assumed within the schedule of assets acquired and liabilities assumed above.
•
Contingent consideration liability - The fair value of the contingent consideration was determined using a discounted cash flow model encompassing significant unobservable inputs, including the discount rate and probability weighted cash flows over the performance period.
•
Other current and noncurrent assets and liabilities - The carrying value of all other assets and liabilities approximated fair value at the time of acquisition.

The Company assigned an indefinite useful life to the trade name intangible assets, as it is believed these assets have the ability to generate cash flows indefinitely. In addition, there are no legal, regulatory, contractual, economic or other factors to limit the useful life of the trade name intangibles. All acquired intangible assets other than trade names were determined to be finite-lived and are being amortized on a straight-line basis, which is consistent with the expected use of economic benefits associated with these assets. The weighted-average useful life of the acquired finite-lived intangible assets was 2.7 years.

Goodwill recorded in connection with the acquisitions is primarily attributable to the expected future earnings potential of the Company as a result of the opportunity to expand the Company's addressable market and drive enrollment growth. The goodwill recognized in connection with the acquisitions has been allocated to the Job-Ready Skills reportable segment and was evaluated for impairment (along with the indefinite-lived trade names intangible assets) as of the first day of the fourth quarter of 2017 consistent with the Company's existing impairment policy. Goodwill recognized from the Hackbright acquisition is not deductible for tax purposes, and goodwill related to DevMountain is deductible for tax purposes.
Accumulated Other Comprehensive Income (Loss)
Comprehensive Income (Loss) Note
Accumulated Other Comprehensive Loss

The following table summarizes the components of accumulated other comprehensive loss, in thousands:
 
As of December 31,
 
2017
 
2016
 
2015
Foreign currency translation
$
(3
)
 
$
(6
)
 
$
(235
)
Unrealized losses on marketable securities, net of tax
(107
)
 
(87
)
 
(37
)
Accumulated other comprehensive loss(1)
$
(110
)
 
$
(93
)
 
$
(272
)

(1)
Accumulated other comprehensive loss is net of $64 thousand, $52 thousand, and $21 thousand of taxes as of December 31, 2017, 2016, and 2015, respectively. The unrealized gains and losses on the Company’s marketable securities were primarily caused by changes in market values as a result of interest rate changes.

There were no reclassifications out of accumulated other comprehensive income to net income during the years ended December 31, 2017 and December 31, 2015. During the year ended December 31, 2016, $45 thousand was reclassified out of accumulated other comprehensive loss to income (loss) from discontinued operations, net of tax, related to foreign currency translation losses realized upon the sale of Arden University.
Regulatory Supervision And Oversight
Regulatory Supervision And Oversight
Regulatory Supervision and Oversight

Institutions of higher education offering Title IV financing are regulated by the federal Department of Education, state offices of higher education, and accreditors (regional, national, and specialized). Additionally, federal and state legislation can impact the regulation of institutions of higher education. Federal law is shaped by the Higher Education Act (HEA). Congress last reauthorized the HEA in 2008. It is unclear when it will the HEA will next be reauthorized. As of December 31, 2017, programs in which the University's learners participate are operative and sufficiently funded.
Other Employee Benefit Plans
Other employee benefit plans [Text Block]
Other Employee Benefit Plans

The Company sponsors an employee retirement savings plan, which qualifies under Section 401(k) of the Internal Revenue Code. The plan provides eligible employees with an opportunity to make tax-deferred contributions into a long-term investment and savings program. All employees over the age of 18 are eligible to participate in the plan. The plan allows eligible employees to contribute up to 100% of their annual salary, subject to IRS annual limits. The plan allows the Company to make discretionary contributions; however, there is no requirement that it do so. The Company matches 100% on the first 2%, and 50% on the next 4%, of the employee contributions. Employer contributions and related expenses were $5.6 million, $5.3 million, and $5.0 million for the years ended December 31, 2017, 2016, and 2015, respectively.

In May 2005, the Company adopted the Capella Education Company Employee Stock Purchase Plan, referred to as the ESPP. The Company has reserved an aggregate of 0.5 million shares of its common stock for issuance under the ESPP. The ESPP permits eligible employees to utilize up to 10% of their salary to purchase the Company’s common stock at a price of no less than 85% of the fair market value per share of the Company’s common stock at the beginning or the end of the relevant offering period, whichever is less. The compensation committee of the Board of Directors will administer the ESPP. The Company had not implemented this plan as of December 31, 2017.
Segment Reporting
Segment Reporting
Segment Reporting

Capella Education Company is an educational services company that provides access to high-quality education through online postsecondary degree programs and job-ready skills offerings in high-demand markets. Capella’s portfolio of companies is dedicated to closing the skills gap by placing adults on the most direct path between learning and employment. During the year-ended December 31, 2016, the Company acquired Hackbright and DevMountain, which resulted in a revision to the way in which management reviews financial information and by which the Chief Operating Decision Maker (the Chief Executive Officer) evaluates performance and allocates the resources of the Company.

Our only operating segment that meets the quantitative thresholds to qualify as a reportable segment is the Post-Secondary segment, which consists of the Capella University and Sophia businesses. None of our other operating segments meet the quantitative thresholds to qualify as reportable segments; therefore, these other operating segments are combined and presented below as Job-Ready Skills. The Job-Ready Skills reportable segment is comprised of the CLS, Hackbright, and DevMountain businesses.

Revenue and operating expenses are generally directly attributed to our segments. Inter-segment revenues are not presented separately, as these amounts are immaterial. Our Chief Operating Decision Maker does not evaluate operating segments using asset information.

A summary of financial information by reportable segment (in thousands) for the years ended December 31, 2017, 2016, and 2015 is presented in the following table. Beginning in the first quarter of 2016 through the date of the sale of the business, Arden University was considered to be held for sale, and because Arden's results of operations are presented as discontinued operations within our Consolidated Statements of Income, the summary of financial information by reportable segment below excludes the results of operations of Arden University for all periods presented.

 
Year-Ended December 31,
 
2017
 
2016
 
2015
Revenues
 
 
 
 
 
     Post-Secondary
$
430,665

 
$
424,085

 
$
415,964

     Job-Ready Skills
9,746

 
5,305

 
584

Consolidated revenues
$
440,411

 
$
429,390

 
$
416,548

Operating income (loss)
 
 
 
 
 
     Post-Secondary
$
74,005

 
$
76,935

 
$
73,248

     Job-Ready Skills
(25,183
)
 
(8,728
)
 
(2,916
)
     Merger transaction costs
(3,728
)
 
—

 
—

Consolidated operating income
45,094

 
68,207

 
70,332

Other income (expense), net
793

 
177

 
(133
)
Income from continuing operations before income taxes
$
45,887

 
$
68,384

 
$
70,199


Within the summary of financial information by reportable segment table above, the operating loss attributable to the Job-Ready Skills segment for the year-ended December 31, 2017 includes goodwill and intangible asset impairment charges of $15.0 million and restructuring charges of $0.6 million. Additionally, the operating income attributable to the Post-Secondary segment for the year-ended December 31, 2017 includes restructuring charges of $0.7 million.

The following table presents a schedule of significant non-cash items included in segment operating income (loss) by reportable segment, in thousands:

 
Year-Ended December 31,
 
2017
 
2016
 
2015
Depreciation and amortization
 
 
 
 
 
     Post-Secondary
$
18,509

 
$
20,395

 
$
21,842

     Job-Ready Skills
1,209

 
948

 
75

Consolidated depreciation and amortization
$
19,718

 
$
21,343

 
$
21,917

Impairment of property and equipment
 
 
 
 
 
     Post-Secondary
$
437

 
$
—

 
$
371

     Job-Ready Skills
3

 
442

 
525

Consolidated impairment of property and equipment
$
440

 
$
442

 
$
896

Impairment of goodwill and intangible assets
 
 
 
 
 
     Post-Secondary
$
—

 
$
—

 
$
—

     Job-Ready Skills
14,955

 
—

 
—

Consolidated impairment of goodwill and intangible assets
$
14,955

 
$
—

 
$
—

Share-based compensation
 
 
 
 
 
     Post-Secondary
$
6,512

 
$
6,195

 
$
6,474

     Job-Ready Skills
12

 
227

 
120

Consolidated share-based compensation
$
6,524

 
$
6,422

 
$
6,594

Quarterly Financial Summary (Unaudited)
Quarterly Financial Information
Quarterly Financial Summary (Unaudited)

The following unaudited consolidated interim financial information presented should be read in conjunction with other information included in the Company’s consolidated financial statements. The following unaudited consolidated financial information reflects all adjustments necessary for the fair presentation of the results of interim periods. The following tables set forth selected unaudited quarterly financial information for each of the Company’s last eight quarters:
 
First
 
Second
 
Third
 
Fourth (b)
 
Total
 
(in thousands, except per share data)
2017
 
 
 
 
 
 
 
 
 
Revenues
$
111,788

 
$
109,584

 
$
107,007

 
$
112,032

 
$
440,411

Operating income (loss)
17,601

 
15,371

 
13,762

 
(1,640
)
 
45,094

 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
11,171

 
10,755

 
8,754

 
(7,270
)
 
23,410

Income from discontinued operations, net of tax
95

 
—

 
—

 
—

 
95

Net income (loss)
$
11,266

 
$
10,755

 
$
8,754

 
$
(7,270
)
 
$
23,505

Basic net income (loss) per common share:
 
 
 
 
 
 
 
 
 
     Continuing operations
$
0.97

 
$
0.92

 
$
0.75

 
$
(0.63
)
 
$
2.01

     Discontinued operations
—

 
—

 
—

 
—

 
0.01

Basic net income (loss) per common share
$
0.97

 
$
0.92

 
$
0.75

 
$
(0.63
)
 
$
2.02

Diluted net income (loss) per common share: (a)
 
 
 
 
 
 
 
 
 
     Continuing operations
$
0.94

 
$
0.90

 
$
0.73

 
$
(0.63
)
 
$
1.96

     Discontinued operations
—

 
—

 
—

 
—

 
0.01

Diluted net income (loss) per common share
$
0.94

 
$
0.90

 
$
0.73

 
$
(0.63
)
 
$
1.97

 
 
 
 
 
 
 
 
 
 
Cash dividend declared per common share
$
0.41

 
$
0.41

 
$
0.41

 
$
0.43

 
$
1.66

 
 
 
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
 
 
 
Revenues
$
105,448

 
$
106,725

 
$
105,909

 
$
111,308

 
$
429,390

Operating income
16,527

 
18,072

 
15,348

 
18,260

 
68,207

 
 
 
 
 
 
 
 
 
 
Income from continuing operations
10,276

 
11,074

 
9,587

 
11,467

 
42,404

Income (loss) from discontinued operations, net of tax
(978
)
 
(1,379
)
 
2,963

 
(41
)
 
565

Net income
$
9,298

 
$
9,695

 
$
12,550

 
$
11,426

 
$
42,969

Basic net income (loss) per common share:
 
 
 
 
 
 
 
 
 
     Continuing operations
$
0.87

 
$
0.95

 
$
0.83

 
$
1.00

 
$
3.65

     Discontinued operations
(0.08
)
 
(0.12
)
 
0.26

 
(0.01
)
 
0.05

Basic net income per common share
$
0.79

 
$
0.83

 
$
1.09

 
$
0.99

 
$
3.70

Diluted net income (loss) per common share:
 
 
 
 
 
 
 
 
 
     Continuing operations
$
0.86

 
$
0.93

 
$
0.81

 
$
0.97

 
$
3.58

     Discontinued operations
(0.08
)
 
(0.11
)
 
0.25

 
—

 
0.04

Diluted net income per common share
$
0.78

 
$
0.82

 
$
1.06

 
$
0.97

 
$
3.62

 
 
 
 
 
 
 
 
 
 
Cash dividend declared per common share
$
0.39

 
$
0.39

 
$
0.39

 
$
0.41

 
$
1.58


Note: Per share amounts for the full-year basic and diluted net income (loss) per common share may not sum across due to quarterly rounding.

(a) During quarterly periods in which the Company reports a net loss, basic and diluted loss per share are disclosed as the same amount, as including the impact of dilutive securities would be antidilutive to the calculation.

(b) In the fourth quarter of 2017, management identified certain amounts related to the tax benefit of share-based compensation aggregating to $1.5 million that were incorrectly recognized in prior years and prior quarters of 2017. The Company has recognized $1.5 million as an increase to income tax expense in the fourth quarter results of operations. Such amounts were not material to the 2017 results of operations or to the results of operations of prior years.
Valuation and Qualifying Accounts
Schedule of Valuation and Qualifying Accounts Disclosure
CAPELLA EDUCATION COMPANY
Schedule II—Valuation and Qualifying Accounts
Fiscal Years 2017, 2016, and 2015
 
 
Beginning Balance
Acquisitions
Additions Charged to Expense
Deductions(a)
Ending Balance
 
(In thousands)
Allowance for doubtful accounts for the years ended:
 
 
 
 
 
December 31, 2017
$
6,682

$
—

$
12,726

$
(11,429
)
$
7,979

December 31, 2016
$
6,340

$
58

$
10,663

$
(10,379
)
$
6,682

December 31, 2015
$
6,258

$
—

$
14,275

$
(14,193
)
$
6,340


 
Beginning Balance
Revaluation due to Tax Reform
Additions Charged to Expense (b)
Additions Charged to Other Accounts (c)
Deductions
Ending Balance
 
(In thousands)
Valuation allowance for the year-ended:
 
 
 
 
 
 
December 31, 2017
$
6,501

$
(2,426
)
$
—

$
—

$
—

$
4,075

December 31, 2016
$
108

$
—

$
—

$
6,501

$
(108
)
$
6,501

December 31, 2015
88

—

20

—

—

108


(a)
Allowance for doubtful accounts deductions represent write-offs of accounts receivable.
(b)
Valuation allowance additions include the establishment of and increases to valuation allowance on net deferred tax assets primarily related to net operating losses.
(c)
Valuation allowance additions charged to other accounts represents the capital loss generated by the divestiture of Arden University. The Company concluded that it was more likely than not that the deferred tax asset for the capital loss carryforward would not be realized due to a lack of history of recognizing capital gains.
Summary Of Significant Accounting Policies (Policy)
Consolidation 
Consolidation
The consolidated financial statements include the accounts of the Company, the University, Sophia, CLS, Hackbright, DevMountain, and Arden University (prior to the divestiture date), after elimination of intercompany accounts and transactions. Arden University was divested during the third quarter of 2016, and prior to the date of sale was presented as discontinued operations within the financial statements and corresponding footnotes. Arden operated on a fiscal year ending October 31, and prior to the divestiture, this was also the date used for consolidation. Refer to Footnote 4 -Discontinued Operations - for further
information related to the divestiture of Arden University. During the second quarter of 2016, the Company acquired
Hackbright and DevMountain. We accounted for these acquisitions as business combinations as of the close of each transaction.
The assets acquired and liabilities assumed in conjunction with the acquisitions were recorded at fair value as of the respective
acquisition dates, with the results of operations reflected in the Consolidated Statements of Income from the acquisition dates
going forward. Refer to Footnote 15, Acquisitions, for further information related to these acquisitions.
Reclassifications 
Reclassifications
During the first quarter of 2017, we reclassified our variable rate demand notes from cash and cash equivalents to marketable securities, current within the Consolidated Balance Sheet to better reflect the nature of these assets. Prior periods have not been restated to conform to the updated classification as marketable securities because the variable rate demand notes were not material to the Company's financial statements as of December 31, 2016.

Additionally, during the year-ended December 31, 2017 the Company began presenting the cash outflows associated with taxes paid to taxing authorities on an employee's behalf for restricted stock unit award releases within financing activities in the Consolidated Statements of Cash Flows rather than within operating activities based on the guidance set forth within Accounting Standards Update (ASU) 2016-09. The Company has applied this provision of the new standard retrospectively, and as such has restated net cash provided by operating activities and net cash used in financing activities for the impact of taxes paid to taxing authorities on an employee's behalf for restricted stock unit award releases within the Consolidated Statements of Cash Flows for the prior periods presented.
Restructuring charges 
Restructuring Charges
In December 2017, the Company eliminated approximately 25 positions in a plan to align the organization with 2018 strategic priorities, incurring charges of approximately $1.3 million during the year-ended December 31, 2017. Restructuring charges relate primarily to severance costs and other termination benefits associated with former Company employees whose employment at the Company was involuntarily terminated during the period as we aligned the organization with 2018 strategic priorities and right-sized the cost structure in the Job-Ready Skills segment. Severance and related termination benefits are recorded during the period in which no additional services are required to be performed by the former employee in order to receive severance benefits. These charges are included within Restructuring charges in the Consolidated Statement of Income for the year-ended December 31, 2017.
Use Of Estimates 
Use of Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States 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.
Revenue Recognition 
Revenue Recognition
The Company’s revenues primarily consist of tuition. Tuition revenue is deferred and recognized as revenue ratably over the period of instruction. Revenue derived from course resource fees is recognized in a manner consistent with tuition revenue. For GuidedPath (traditional credit-hour) learners who withdraw or drop a course, the Company follows the University refund policy, which generally is: 100 percent refund through five days, 75 percent refund from six to twelve days, and zero percent refund for the remainder of the period. The refund policy varies slightly for learners within certain states due to state rules or regulations. FlexPath learners receive a 100 percent refund through calendar day twelve of the course for their first billing session only and a zero percent refund after that date and for all subsequent billing sessions. The Company does not recognize revenue for learners who enroll but never engage in the courseroom. Refunds are recorded as a reduction of revenue in the period that the learner withdraws from a course. When the University is required to return funds distributed under Title IV Programs of the Higher Education Act (Title IV or Title IV Programs) to the Department of Education, the learner is not released from his or her payment obligation.

Beginning in fiscal year 2016, we record revenue for learners who drop all courses or withdraw from the University with an unpaid tuition balance at the time of cash collection. This change is consistent with the Company's belief that such unpaid balances do not meet the threshold of reasonable collectability which must be met in order to recognize revenue. During the period in which a learner drops all courses or withdraws from the University prior to finalizing coursework, no additional revenue will be recognized until payment is received from the learner. This change did not have a material impact on our revenues or results of operations in the prior or current periods, and is not expected to have a material impact on revenues or results of operations in subsequent periods.

Residency tuition revenue is recognized over the length of the residency, which ranges from three to 42 days.

Deferred revenue in any period represents the excess of tuition and fees received as compared to tuition and fees recognized as revenue in the consolidated statements of income and is reflected as a current liability on our consolidated balance sheets.

Allowance for Doubtful Accounts 
Allowance for Doubtful Accounts
The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability, failure or refusal of our learners to make required payments. The Company determines the allowance for doubtful accounts amount based on an analysis of our accounts receivable portfolio and historical write-off experience, and current economic conditions, recoveries and trends. Bad debt expense is recorded as an instructional costs and services expense in the consolidated statements of income. The Company generally writes off accounts receivable balances once the account is deemed to be uncollectible, which typically occurs after outside collection agencies have pursued collection efforts. The Company recorded bad debt expense of $12.7 million, $10.7 million, and $14.3 million for the years ended December 31, 2017, 2016, and 2015, respectively.
Cash and Cash Equivalents 
Cash and Cash Equivalents
The Company considers all highly liquid marketable securities with maturities of three months or less at the time of purchase to be cash equivalents. The Company's cash equivalents consist of cash held as demand deposits with financial institutions and short-term money market funds. Cash equivalents are carried at fair value.

Marketable Securities 
Marketable Securities
Management determines the appropriate designation of marketable securities at the time of purchase and reevaluates such designation as of each balance sheet date. All of the Company’s marketable securities are designated as available-for-sale as of December 31, 2017 and 2016 and consist of tax-exempt municipal securities, variable rate demand notes, and corporate debt securities.

Available-for-sale marketable securities are carried at fair value as determined by quoted market prices or other inputs either directly or indirectly observable in the marketplace for identical or similar assets, with unrealized gains and losses, net of tax, recognized as a component of accumulated other comprehensive income (loss) within shareholders’ equity. Management reviews the fair value of the portfolio at least monthly, and evaluates individual securities with fair value below amortized cost at the balance sheet date for impairment. In order to determine whether impairment is other than temporary, management evaluates whether the Company intends to sell the impaired security and whether it is more likely than not that the Company will be required to sell the security before recovering its amortized cost basis.

If management intends to sell an impaired debt security, or it is more likely than not the Company will be required to sell the security prior to recovering its amortized cost basis, an other-than-temporary impairment is deemed to have occurred. The amount of an other-than-temporary impairment related to a credit loss, or securities that management intends to sell before recovery, is recognized in earnings. The amount of an other-than-temporary impairment on debt securities related to other factors is recorded consistent with changes in the fair value of all other available-for-sale securities as a component of accumulated other comprehensive income (loss) within shareholders’ equity.

The cost of securities sold is based on the specific identification method. Amortization of premiums, accretion of discounts, interest, dividend income and realized gains and losses are included in other income (expense). The contractual maturity date of available-for-sale securities is based on the days remaining to the effective maturity. The Company classifies marketable securities as either current or non-current assets based on management’s intent with regard to usage of those funds, which is dependent upon the security's maturity date and liquidity considerations based on current market conditions. If management intends to hold the securities for longer than one year as of the balance sheet date, they are classified as non-current.
Fair Value Measurement 
Fair Value Measurement
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Company classifies assets and liabilities recorded at fair value under the fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. The fair value measurements are classified under the following hierarchy:
•
Level 1 – Observable inputs that reflect quoted market prices (unadjusted) for identical assets and liabilities in active markets;
•
Level 2 – Observable inputs, other than quoted market prices, that are either directly or indirectly observable in the marketplace for identical or similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities; and
•
Level 3 – Unobservable inputs that are supported by little or no market activity that are significant to the fair value of assets or liabilities.
Concentration of Credit Risk 
Concentration of Credit Risk
Financial instruments, which potentially subject the Company to credit risk, consist primarily of cash equivalents, marketable securities and accounts receivable.

Management believes the credit risk related to cash equivalents and marketable securities is limited due to the adherence to an investment policy that requires marketable securities to have a minimum credit rating of A minus (or equivalent) at the time of purchase. All of the Company’s cash equivalents and marketable securities as of December 31, 2017 and 2016 consist of investments rated A - or higher by at least one rating agency. In addition, the Company utilizes money managers who conduct initial and ongoing credit analysis on its investment portfolio to monitor and minimize the potential impact of market risk associated with its cash equivalents and marketable securities.

Management believes that the credit risk related to accounts receivable is mitigated due to the large number and diversity of learners that principally comprise the Company’s customer base. The Company’s credit risk with respect to these accounts receivable is mitigated through the participation of a majority of the learners in federally funded financial aid programs.

For the years ended December 31, 2017, 2016, and 2015, 75.53%, 76.94%, and 75.47% of Capella University's revenues (calculated on a cash basis) were collected from funds distributed under Title IV Programs, respectively. The financial aid and assistance programs are subject to political and budgetary considerations. There is no assurance that such funding will be maintained at current levels.

Extensive and complex regulations govern the financial assistance programs in which Capella University's learners participate. Capella University's administration of these programs is periodically reviewed by various regulatory agencies. Any regulatory violation could be the basis for the initiation of potential adverse actions, including a suspension, limitation, or termination proceeding, which could have a material adverse effect on the Company.

If the University were to lose its eligibility to participate in federal student financial aid programs, the learners at the University would lose access to funds derived from those programs and would have to seek alternative sources of funds to pay their tuition and fees.
Property and Equipment 
Property and Equipment
Property and equipment are stated at cost. Computer software is included in property and equipment and consists of purchased software, capitalized website development costs and internally developed software. Capitalized website development costs consist mainly of salaries and outside development fees directly related to websites and various databases. Website content development is generally expensed as incurred. Internally developed software represents qualifying salary and consulting costs for time spent on developing internal use software. The Company capitalizes certain costs associated with internally developed software, primarily consisting of the direct labor associated with creating the internally developed software. Software development projects generally include three stages: the preliminary project stage (all costs are expensed as incurred), the application development stage (certain costs are capitalized and certain costs are expensed as incurred), and the post-implementation/operation stage (all costs are expensed as incurred). The costs capitalized in the application development stage include the costs of designing the application, coding, installation of hardware, and testing. The capitalization of software requires judgment in determining when a project has reached the application development stage and the period over which the Company expects to benefit from the use of that software.
Depreciation is calculated using the straight-line method, over the following estimated useful lives:
 
Computer equipment
3 to 7 years
Furniture and office equipment
5 to 7 years
Computer software
3 to 5 years


Leasehold improvements are amortized on a straight-line basis over the related lease term or estimated useful life, whichever is shorter.

The Company reviews its property and equipment 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 asset. If such assets are considered not recoverable, an impairment loss is recognized to the extent the carrying amount of the assets exceeds the fair value of the assets. The Company recorded impairment charges related to property and equipment of $0.4 million, $0.4 million, and $0.9 million during the years ended December 31, 2017, 2016, and 2015, respectively. The impairment charges primarily consist of technology-related projects for which the expected future net cash flows may not exceed the carrying value of the related assets as well as furniture and office equipment deemed to be impaired in conjunction with the initiative to re-design corporate office space. These charges are recorded in the Consolidated Statements of Income and classified as instructional costs and services, marketing and promotional, admissions advisory, or general and administrative expense based on the primary function with which the asset was associated.
Income Taxes 
Income Taxes
The Company uses the asset and liability method to compute the differences between the tax basis of assets and liabilities and the related financial amounts. The Company has deferred tax assets and liabilities that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are measured using the enacted statutory tax rates that are expected to apply in the years in which the temporary differences are expected to be recovered or paid. Deferred tax assets are subject to periodic recoverability assessments. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. The Company considers all positive and negative evidence relating to the realization of the deferred tax assets in assessing the need for a valuation allowance.
The Company records a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company accounts for uncertainty in income taxes using a two-step approach for evaluating tax positions. Step one, recognition, occurs when the Company concludes that a tax position, based solely on its technical merits, is more likely than not to be sustained upon examination. Step two, measurement, is only addressed if the position is more likely than not to be sustained. Under step two, the tax benefit is measured as the largest amount of benefit, determined on a cumulative probability basis, which is more likely than not to be realized upon ultimate settlement. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense.
Contingencies 
Contingencies
The Company accrues for costs associated with contingencies, including regulatory compliance and legal matters, when such costs are probable and reasonably estimable. Contingent liabilities are adjusted as further information is obtained, circumstances change, or contingencies are resolved. The Company bases these accruals on management’s estimate of such costs, which may vary from the cost and expenses ultimately incurred in connection with any such contingency.
Intangible Assets 
Intangible Assets
Finite-lived intangible assets that are acquired in business combinations are recorded at fair market value on their acquisition dates and are amortized on a straight-line basis over the economic useful life of the asset. Finite-lived intangible assets consist of course content and customer relationships.

The Company reviews its finite-lived intangible 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 asset. If such assets are not recoverable, a potential impairment loss is recognized to the extent the carrying amount of the assets exceeds the fair value of the assets. Fair value is generally determined using a discounted cash flow approach.

Indefinite-lived intangible assets are recorded at fair market value on their acquisition date and evaluated for impairment on an annual basis or more frequently if events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. Indefinite-lived intangible assets consist of trade names.

The Company reviews its indefinite-lived intangible assets annually for impairment on the first day of the fourth quarter, or more frequently if events occur or circumstances change between annual tests that would more likely than not reduce fair value below its carrying amount. The Company’s indefinite-lived intangible asset impairment test includes an option to first assess qualitative factors to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount. If the Company concludes that it is more likely than not that the fair value of the asset is less than its carrying amount based on the qualitative assessment, or that a qualitative assessment should not be performed, the Company proceeds with performing a quantitative impairment test. If performed, the quantitative impairment test compares the fair value to the carrying value of the indefinite-lived intangible asset. Fair value is generally determined using a discounted cash flow approach, using the relief from royalty method. This method incorporates assumptions regarding future sales projections, discount and royalty rates. If, based on this analysis, carrying value exceeds fair value, the indefinite-lived intangible asset is considered impaired and an impairment charge is recorded to the extent that fair value is less than carrying value.

Goodwill 
Goodwill
Goodwill represents the excess of the purchase price of an acquired business over the fair value assigned to the underlying assets acquired and assumed liabilities. At the time of an acquisition, the Company allocates the goodwill and related assets and liabilities to its respective reporting unit. The Company identifies its reporting units by assessing whether the components of its operating segment constitute businesses for which discrete financial information is available and management regularly reviews the operating results of those components. The Company assesses goodwill for impairment at least annually on the first day of the fourth quarter, or more frequently if events occur or circumstances change between annual tests that would more likely than not reduce the fair value of the respective reporting unit below its carrying amount.
 

The Company's goodwill impairment test includes an option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount based on the qualitative assessment, or that a qualitative assessment should not be performed for a reporting unit, the Company proceeds with performing a quantitative goodwill impairment test. In performing the quantitative goodwill impairment test, the Company compares the fair value of the reporting unit to the carrying value of its net assets. If the fair value of the reporting unit exceeds the carrying value of the net assets of the reporting unit, goodwill is not impaired and no further testing is required. If the carrying value of the net assets of the reporting unit exceeds the fair value of the reporting unit, an impairment loss is recognized to the extent the fair value of the reporting unit is less than the carrying value of the reporting unit's net assets.
The process of evaluating the potential impairment of goodwill is subjective and requires significant judgment at many points during the analysis, including determining whether to perform the optional qualitative assessment and determining the fair value of the reporting unit under the quantitative test. The quantitative goodwill testing process includes the use of industry accepted valuation methods, management review and approval of certain criteria and assumptions and engaging third-party valuation specialists to assist with the analysis.
Advertising 
Advertising
The Company expenses all advertising costs as incurred, other than production-related advertising costs primarily attributable to television commercials, which are capitalized as a prepaid expense when paid and subsequently expensed at the time of first airing. Advertising costs for 2017, 2016, and 2015 were $71.3 million, $67.0 million, and $68.9 million, respectively, which are included within marketing and promotional expenses in our Consolidated Statements of Income.
Net Income per Common Share 
Net Income per Common Share
Basic net income per common share is based on the weighted average number of shares of common stock outstanding during the period. Dilutive shares are computed using the Treasury Stock method and include the incremental effect of shares that would be issued upon the assumed exercise of stock options, vesting of restricted stock units, and satisfaction of service conditions for market stock units.

The following table presents a reconciliation of the numerator and denominator in the basic and diluted net income per common share calculation, broken out for continuing and discontinued operations, in thousands, except per share amounts.
 
Year-Ended December 31,
 
2017
 
2016
 
2015
Numerator:
 
 
 
 
 
Income from continuing operations
$
23,410

 
$
42,404

 
$
43,630

Income (loss) from discontinued operations, net of tax
95

 
565

 
(3,442
)
Net income
$
23,505

 
$
42,969

 
$
40,188

Denominator:
 
 
 
 
 
Denominator for basic net income per common share - weighted average shares outstanding
11,623

 
11,614

 
12,079

Effect of dilutive stock options, restricted stock, and market stock units
327

 
242

 
222

Denominator for diluted net income per common share - weighted average shares outstanding
11,950

 
11,856

 
12,301

Basic net income (loss) per common share
 
 
 
 
 
Continuing operations
$
2.01

 
$
3.65

 
$
3.61

Discontinued operations
0.01

 
0.05

 
(0.28
)
Basic net income per common share
$
2.02

 
$
3.70

 
$
3.33

Diluted net income (loss) per common share
 
 
 
 
 
Continuing operations
$
1.96

 
$
3.58

 
$
3.55

Discontinued operations
0.01

 
0.04

 
(0.28
)
Diluted net income per common share
$
1.97

 
$
3.62

 
$
3.27


Options to purchase 0.1 million, 0.3 million, and 0.3 million common shares, were outstanding but not included in the computation of diluted net income per common share in 2017, 2016, and 2015, respectively, because their effect would be antidilutive.
Comprehensive Income 
Comprehensive Income
Comprehensive income includes net income and all changes in the Company’s equity during a period from non-owner sources, which for the Company consists of unrealized gains and losses on available-for-sale marketable securities, net of tax, and foreign currency translation gains and losses.
Share-Based Compensation 
Share-Based Compensation
The Company measures and recognizes compensation expense for share-based payment awards made to employees and directors, including employee stock options, restricted stock units (RSUs), performance-based restricted stock units, and market stock units (MSUs) based on estimated fair values of the share award on the date of grant.

•
Stock options, restricted stock units, and performance-based restricted stock units. To calculate the estimated fair value of stock options on the date of grant, the Company uses the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the Company to estimate key assumptions such as the expected term, volatility, risk-free interest rate, and dividend yield to determine the fair value of stock options, based on both historical information and management judgment regarding market factors and trends.

The Company recognizes share-based compensation expense for stock options and restricted stock unit awards using the straight-line method over the period that the awards are expected to vest, which is also the service period, net of actual forfeitures. Share-based compensation expense for performance-based restricted stock award units is determined based on the expected payout of the award.

As part of its adoption of ASU No. 2016-09, the Company made an accounting policy election to change the way in which it accounts for forfeitures of share-based awards. Specifically, beginning in 2017, the Company recognizes forfeitures of share-based awards as they occur in the period of forfeiture rather than estimating the number of awards expected to be forfeited at the grant date and subsequently adjusting the estimate when awards are actually forfeited. As such, adjustments to true-up the estimated forfeiture rate to actual forfeitures are no longer necessary.

•
Market stock units. To calculate the estimated fair value of MSUs on the date of grant, the Company uses Monte Carlo simulations. The Monte Carlo simulations are based on the expected average market price of the Company's common stock for a defined number of calendar days prior to the stated vesting date to estimate the expected number of MSUs that will convert into common shares at the vesting date. Management's key assumptions include volatility, risk-free interest rates, and dividend yields.

The Company recognizes share-based compensation expense for MSU awards using the straight-line method, over the period that the awards are expected to vest. Compensation cost related to an award with a market condition will be recognized regardless of whether the market condition is satisfied, provided that the requisite service has been provided.
Recent Accounting Pronouncements 
Recent Accounting Pronouncements
In May 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-09, Scope of Modification Accounting, which is included in FASB Accounting Standards Codification (ASC) Topic 718 Compensation - Stock Compensation. The new standard clarifies when changes to the terms and conditions of share-based payment awards must be treated as modifications. Specifically, the new guidance permits companies to make certain changes to awards without accounting for them as modifications. The guidance will be effective for the Company’s annual and interim reporting periods beginning January 1, 2018, with early adoption permitted. The Company adopted this guidance during the fourth quarter of 2017, and it did not have a material impact on its business practices, financial condition, results of operations, or disclosures.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other: Simplifying the Accounting for Goodwill Impairment, which is included in ASC Topic 350, Intangibles - Goodwill and Other. The new standard eliminates the quantitative goodwill impairment analysis requirement to determine the fair value of individual assets and liabilities of a reporting unit to calculate the amount of any goodwill impairment and instead permits an entity to recognize goodwill impairment loss as the excess of a reporting unit's carrying value over the estimated fair value of the reporting unit, to the extent this amount does not exceed the carrying amount of goodwill. The new guidance continues to allow an entity to perform a qualitative assessment over goodwill impairment indicators in lieu of a quantitative assessment in certain situations. The guidance will be effective for the Company's annual and interim reporting periods beginning January 1, 2020, with early adoption permitted. The Company adopted this guidance as of January 1, 2017 and recognized a goodwill impairment charge within the Consolidated Statement of Income for the year ended December 31, 2017 to the extent that the Coding Schools reporting unit's carrying value exceeded the estimated fair value of the reporting unit. We did not proceed with estimating the fair value of individual assets and liabilities or the associated implied fair value of goodwill for the Coding Schools reporting unit (formerly step 2 of the goodwill impairment analysis process) as part of the 2017 goodwill impairment analysis as a result of the adoption of this guidance. Refer to Footnote 8 - Goodwill and Intangible Assets - for further discussion of the impact of adoption of this guidance on the goodwill impairment evaluation process and results of the 2017 goodwill impairment analysis.

In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business, included in ASC Topic 805, Business Combinations, which revises the definition of a business. The revised definition clarifies that outputs must be the result of inputs and substantive processes that provide goods or services to customers, other revenue, or investment income. The guidance will be effective for the Company's annual and interim reporting periods beginning January 1, 2018, and early adoption is permitted. The Company adopted the new definition of a business during the first quarter of 2017, and it did not have a material impact on its business practices, financial condition, results of operations, or disclosures.

In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, which is included in ASC Topic 230, Statement of Cash Flows. The new guidance clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows, including contingent consideration payments made after a business acquisition. Specifically, cash payments to settle a contingent consideration liability which are not made soon after the acquisition date should be classified as cash used in financing activities up to the initial amount of contingent consideration recognized with the remaining amount classified as cash flows from operating activities. The guidance will be effective for the Company's annual and interim reporting periods beginning January 1, 2018, and early adoption is permitted. The Company does not expect adoption of this guidance to have a material impact on its business practices, financial condition, results of operations, or disclosures.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses, which is included in ASC Topic 326, Measurement of Credit Losses on Financial Instruments. The new guidance revises the accounting requirements related to the measurement of credit losses and will require organizations to measure all expected credit losses for financial assets based on historical experience, current conditions and reasonable and supportable forecasts about collectability. Assets must be presented in the financial statements at the net amount expected to be collected. The guidance will be effective for the Company's annual and interim reporting periods beginning January 1, 2020, with early adoption permitted. The Company does not expect
adoption of this guidance to have a material impact on its business practices, financial condition, results of operations, or
disclosures.

In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which changes how companies will account for certain aspects of share-based payments to employees. As part of the new guidance, entities will be required to record the impact of income taxes arising from share-based compensation when awards vest or are settled within earnings as part of income tax expense rather than recorded as part of additional paid-in capital (APIC) and will eliminate the requirement that excess tax benefits be realized prior to recognition. Additionally, the guidance requires entities to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. Furthermore, companies will be required to make an accounting policy election at the time of adoption of the new guidance to either account for forfeitures of share-based awards in a manner similar to today's requirements (i.e., estimating the number of awards expected to be forfeited at the grant date and adjusting the estimate when awards are actually forfeited), or recognizing forfeitures as they occur with no estimate of forfeitures determined at the grant date. Entities will apply the forfeiture election provision using a modified retrospective transition approach, with a cumulative-effect adjustment recorded to retained earnings as of the beginning of the period of adoption. Finally, the new guidance simplifies the minimum statutory tax withholding requirements for employers who withhold shares upon settlement of an award on behalf of an employee to cover tax obligations. Specifically, the new guidance allows entities to withhold an amount up to the employees’ maximum individual tax rate in the relevant jurisdiction without resulting in liability classification of the award. The adoption of this guidance will result in volatility within our results of operations, primarily due to changes in our stock price. The Company adopted this guidance during the first quarter of 2017.

As part of its adoption of ASU No. 2016-09, the Company made an accounting policy election to change the way in which it accounts for forfeitures of share-based awards. Specifically, beginning in the first quarter of 2017, the Company recognizes forfeitures of share-based awards as they occur in the period of forfeiture rather than estimating the number of awards expected to be forfeited at the grant date and subsequently adjusting the estimate when awards are actually forfeited. The change in accounting policy to recognize forfeitures of share-based awards as they occur resulted in a net cumulative decrease in retained earnings of $0.1 million as of January 1, 2017. Additionally, in accordance with the provisions of ASU No. 2016-09, excess tax benefits or deficiencies arising from share-based awards are now reflected within the Consolidated Statements of Income as a component of income tax expense rather than as a component of shareholder's equity. During the year-ended December 31, 2017, the Company recognized $1.9 million of excess tax benefits related to share-based awards as a reduction to income tax expense within the Consolidated Statement of Income. The Company's adoption of the new standard also resulted in the prospective classification of excess tax benefits as cash flows from operating activities in the same manner as other cash flows related to income taxes within the Consolidated Statements of Cash Flows. Based on the prospective method of adoption chosen, the classification of excess tax benefits within the Consolidated Statements of Cash Flows for prior periods presented has not been adjusted to reflect the change. Additionally, during the year-ended December 31, 2017 the Company began presenting the cash outflows associated with taxes paid to taxing authorities on an employee's behalf for RSU award releases within financing activities in the Consolidated Statements of Cash Flows rather than within operating activities. The Company has applied this provision of the new standard retrospectively, and as such has restated net cash provided by operating activities and net cash used in financing activities for the impact of taxes paid to taxing authorities on an employee's behalf for RSU award releases within the Consolidated Statements of Cash Flows for the prior periods presented.
  
In February 2016, the FASB issued ASU No. 2016-02, Leases, to require organizations that lease assets to recognize right-to-use assets and lease liabilities for all leases with terms longer than 12 months on the balance sheet in addition to disclosing certain key information about leasing arrangements. The new standard requires a modified retrospective transition approach, meaning the guidance would be applied at the beginning of the earliest comparative period presented within the financial statements in the year of adoption. The guidance will be effective for the Company's annual reporting period beginning January 1, 2019, with early adoption permitted. The Company expects to adopt this standard at the beginning of fiscal year 2019, and all leases with terms longer than 12 months will be recorded as right-of-use assets and lease liabilities on our balance sheet upon adoption. The Company does not expect adoption of this guidance to have a material impact on its business practices, financial condition, results of operations, disclosures, liquidity, or debt-covenant compliance.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance revises the accounting requirements related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The update also changes certain disclosure requirements associated with the fair value of financial instruments. These changes will require an entity to measure, at fair value, investments in equity securities and other ownership interests in an entity - including investments in partnerships, unincorporated joint ventures and limited liability companies that do not result in consolidation and are not accounted for under the equity method - and recognize the changes in fair value within net income. Entities that hold equity investments without readily determinable fair values will be able to elect to record those investments at cost less impairment with subsequent adjustments for any observable price changes recognized in earnings. The guidance will be effective for the Company's annual and interim reporting periods beginning January 1, 2018, and early adoption is generally not permitted for most provisions. The Company will provide expanded disclosures related to investments in partnerships within our annual and quarterly filings beginning in the period of adoption. As these investments are not traded and the partnerships do not publish a fair value per share, the investments are deemed to be without readily determinable fair values, and the Company expects to elect the option to record the investments at cost less impairment and recognize subsequent adjustments for any observable price changes within earnings. The Company does not expect adoption of this guidance to have a material impact on its business practices, financial condition, results of operations, liquidity, or debt-covenant compliance.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU is a comprehensive new revenue recognition model that creates a single source of revenue guidance for all companies in all industries. The model is more principles-based than current guidance, and is primarily based on recognizing revenue at an amount that reflects consideration to which the entity expects to be entitled to in exchange for transferring goods or services to a customer. The standard allows the Company to transition to the new model using either a full or modified retrospective approach. Under the original ASU, the guidance was effective for the Company's interim and annual reporting periods beginning January 1, 2017, and early adoption was not permitted. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers, Deferral of the Effective Date, which formally defers the effective date of the new revenue standard for public entities by one year. As a result, the updated revenue guidance will be effective for the Company's interim and annual reporting periods beginning January 1, 2018, and early adoption is permitted as of the original effective date contained within ASU 2014-09.

The Company has completed an evaluation of the impact this standard will have on its revenues, operating results, and consolidated financial statements, including the performance of a detailed review of each of its revenue streams and identification of the associated performance obligations, implementation of new business process controls over revenue recognition, as well as a comparison of historical accounting policies to revised accounting practices under the new standard. The primary impact of adopting the new standard will be modifications to the timing of revenue recognition for certain revenue streams. The adoption of this guidance will not have a material impact on the Company's business practices, financial condition, or results of operations. The Company will provide expanded disclosures pertaining to revenue recognition in our annual and quarterly filings beginning in the period of adoption during the first quarter of 2018. The Company will adopt the provisions of this standard during the first quarter of 2018 utilizing the modified retrospective method of adoption.

The Company has reviewed and considered all other recent accounting pronouncements and believes there are none that could potentially have a material impact on its financial condition, results of operations, or disclosures.
Summary Of Significant Accounting Policies (Tables)
Estimated Useful Lives of Property and Equipment 
Depreciation is calculated using the straight-line method, over the following estimated useful lives:
 
Computer equipment
3 to 7 years
Furniture and office equipment
5 to 7 years
Computer software
3 to 5 years
Schedule of basic and diluted earnings per share 
The following table presents a reconciliation of the numerator and denominator in the basic and diluted net income per common share calculation, broken out for continuing and discontinued operations, in thousands, except per share amounts.
 
Year-Ended December 31,
 
2017
 
2016
 
2015
Numerator:
 
 
 
 
 
Income from continuing operations
$
23,410

 
$
42,404

 
$
43,630

Income (loss) from discontinued operations, net of tax
95

 
565

 
(3,442
)
Net income
$
23,505

 
$
42,969

 
$
40,188

Denominator:
 
 
 
 
 
Denominator for basic net income per common share - weighted average shares outstanding
11,623

 
11,614

 
12,079

Effect of dilutive stock options, restricted stock, and market stock units
327

 
242

 
222

Denominator for diluted net income per common share - weighted average shares outstanding
11,950

 
11,856

 
12,301

Basic net income (loss) per common share
 
 
 
 
 
Continuing operations
$
2.01

 
$
3.65

 
$
3.61

Discontinued operations
0.01

 
0.05

 
(0.28
)
Basic net income per common share
$
2.02

 
$
3.70

 
$
3.33

Diluted net income (loss) per common share
 
 
 
 
 
Continuing operations
$
1.96

 
$
3.58

 
$
3.55

Discontinued operations
0.01

 
0.04

 
(0.28
)
Diluted net income per common share
$
1.97

 
$
3.62

 
$
3.27

Discontinued Operations (Tables)
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement
A reconciliation of the line items comprising the results of operations of the Arden University business to the income (loss) from discontinued operations through the date of sale presented in the Consolidated Statements of Income for the years ended December 31, 2017, 2016, and 2015, in thousands, is included in the following table:

 
Year-Ended December 31,
 
2017
 
2016
 
2015
Revenues
$
—

 
$
8,765

 
$
13,718

Costs and expenses:
 
 
 
 
 
Instructional costs and services
—

 
4,345

 
6,969

Marketing and promotional
—

 
3,527

 
4,784

Admissions advisory
—

 
698

 
987

General and administrative
—

 
3,837

 
4,278

Total costs and expenses
—

 
12,407

 
17,018

Operating loss
—

 
(3,642
)
 
(3,300
)
Gain on sale of Arden
149

 
4,070

 
—

Other income (expense), net
—

 
(288
)
 
(84
)
Income (loss) before income taxes
149

 
140

 
(3,384
)
Income tax expense (benefit)
54

 
(425
)
 
58

Income (loss) from discontinued operations, net of tax
$
95

 
$
565

 
$
(3,442
)
Marketable Securities (Tables)
Schedule of Available-for-sale Securities Reconciliation 
The following is a summary of marketable securities, in thousands:
 
As of December 31, 2017
 
Amortized Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
(Losses)
 
Estimated
Fair Value
Tax-exempt municipal securities
$
35,070

 
$
—

 
$
(87
)
 
$
34,983

Corporate debt securities
16,102

 
8

 
(92
)
 
16,018

Variable rate demand notes
23,795

 
—

 
—

 
23,795

Total
$
74,967

 
$
8


$
(179
)

$
74,796

 
 
 
 
 
 
 
 
 
As of December 31, 2016
 
Amortized Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
(Losses)
 
Estimated
Fair Value
Tax-exempt municipal securities
$
63,113

 
$
2

 
$
(152
)
 
$
62,963

Corporate debt securities
5,804

 
13

 
(2
)
 
5,815

Total
$
68,917

 
$
15

 
$
(154
)
 
$
68,778

Summary Of Remaining Contractual Maturities Of Marketable Securities 
The following table summarizes the remaining contractual maturities of the Company’s marketable securities, in thousands:
 
As of December 31, 2017
 
As of December 31, 2016
Due within one year
$
45,226

 
$
45,458

Due after one year through five years
29,570

 
23,320

Total
$
74,796

 
$
68,778

Proceeds From Maturities Of Available-For-Sale Securities 
The following table is a summary of the proceeds from the maturities of marketable securities, in thousands:
 
Years Ended December 31,
 
2017
 
2016
 
2015
Maturities of marketable securities
$
66,220

 
$
31,430

 
$
30,175

Total
$
66,220

 
$
31,430

 
$
30,175

Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Fair Value Disclosures [Abstract]
 
 
Fair Value Assets Measured on Recurring Basis
Text Block 
Text Block 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
Text Block 
 
Fair Value Assets Measured on Recurring Basis 
The following tables summarize certain information for assets and liabilities measured at fair value on a recurring basis, in thousands:
 
 
Fair Value Measurements as of December 31, 2017 Using
Description
 
Fair Value
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
 
Cash and cash equivalents:
 
 
 
 
 
 
 
 
Cash
 
$
17,951

 
$
17,951

 
$
—

 
$
—

Money market
 
88,615

 
88,615

 
—

 
—

Marketable securities:
 
 
 
 
 
 
 
 
Tax-exempt municipal securities
 
34,983

 
—

 
34,983

 
—

Corporate debt securities
 
16,018

 
—

 
16,018

 
—

Variable rate demand notes
 
23,795

 
—

 
23,795

 
—

Total assets at fair value on a recurring basis
 
$
181,362

 
$
106,566

 
$
74,796

 
$
—

Fair Value Assets Measured on Recurring Basis 
 
 
Fair Value Measurements as of December 31, 2016 Using
Description
 
Fair Value
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
 
Cash and cash equivalents:
 
 
 
 
 
 
 
 
Cash
 
$
24,658

 
$
24,658

 
$
—

 
$
—

Money market
 
68,237

 
68,237

 
—

 
—

Variable rate demand notes
 
675

 
—

 
675

 
—

Marketable securities:
 
 
 
 
 
 
 
 
Tax-exempt municipal securities
 
62,963

 
—

 
62,963

 
—

Corporate debt securities
 
5,815

 
—

 
5,815

 
—

Total assets at fair value on a recurring basis
 
$
162,348

 
$
92,895

 
$
69,453

 
$
—

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation 
The following table presents a reconciliation of the fair value of the DevMountain contingent consideration, in thousands:

 
 
Year-Ended December 31,
 
 
2017
 
2016
Balance, beginning of period
 
$
—

 
$
—

Initial fair value of contingent consideration
 
—

 
1,500

Measurement period adjustment
 
—

 
(1,500
)
Balance, end of period
 
$
—

 
$
—

Property And Equipment (Tables)
Schedule Of Property And Equipment
Property and equipment consist of the following, presented in thousands:
 
As of December 31,
 
2017
 
2016
Computer software
$
157,290

 
$
147,149

Computer equipment
19,196

 
34,693

Furniture and office equipment
7,961

 
8,229

Leasehold improvements
1,533

 
813

Property and equipment, gross
185,980

 
190,884

Less accumulated depreciation and amortization
(150,019
)
 
(156,763
)
Property and equipment, net
$
35,961

 
$
34,121

Goodwill and Intangible Assets (Tables)
Schedule of Goodwill 
The following table presents a rollforward of goodwill balances for the years ended December 31, 2017 and 2016, in thousands:
 
Year-Ended December 31,
 
2017
2016
Balance, beginning of period
$
23,310

$
—

Goodwill acquired as part of business combinations
—

23,310

Measurement period adjustment
22

—

Impairment of goodwill
(9,855
)
—

Balance, end of period
$
13,477

$
23,310

Schedule of Acquired Intangible Assets 
The gross carrying amount and accumulated amortization of acquired intangible assets, all of which are related to the second quarter 2016 acquisitions of Hackbright and DevMountain, are as follows, in thousands:
 
 
As of December 31, 2017
 
As of December 31, 2016
Course content
 
$
1,100

 
$
1,100

Customer relationships
 
800

 
800

Finite-lived intangible assets, gross
 
1,900

 
1,900

 
 
 
 
 
Accumulated amortization - course content
 
(960
)
 
(441
)
Accumulated amortization - customer relationships
 
(338
)
 
(138
)
Total accumulated amortization
 
(1,298
)
 
(579
)
Finite-lived intangible asset, net
 
$
602

 
$
1,321

 
 
 
 
 
Indefinite-lived trade names (non-amortizable), gross
 
7,900

 
7,900

Impairment of trade names
 
(5,100
)
 
—

Indefinite-lived trade names (non-amortizable), net

 
$
2,800

 
$
7,900

 
 
 
 
 
     Total intangible assets, net
 
$
3,402

 
$
9,221

Schedule of Amortization Expense 
The following table presents the total amount of amortization expense recognized for definite-lived intangible assets, in thousands.

 
 
Year-Ended December 31,
 
 
2017
 
2016
 
2015
Amortization expense
 
$
719

 
$
579

 
$
—

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense 
The following table presents future amortization expense for finite-lived intangible assets as of December 31, 2017, in thousands:
2018
340

2019
200

2020
62

2021
—

2022
—

2023 and thereafter
—

Total
$
602

Accrued Liabilities (Tables)
Schedule Of Accrued Liabilities
Accrued liabilities consist of the following, in thousands: 
 
As of December 31, 2017
 
As of December 31, 2016
Accrued compensation and benefits
$
9,151

 
$
12,976

Accrued instructional
3,662

 
3,811

Accrued vacation
1,122

 
1,111

Accrued invoices
10,683

 
11,252

Other(1)
2,001

 
2,152

Total
$
26,619

 
$
31,302



(1) "Other" in the table above consists primarily of the current portion of deferred rent, customer deposits, and other miscellaneous accruals.
Commitments And Contingencies (Tables)
Schedule of Future Minimum Rental Payments for Operating Leases
The following presents the Company's future minimum lease commitments as of December 31, 2017, in thousands: 
2018
$
6,886

2019
5,695

2020
5,329

2021
4,689

2022
4,550

2023 and thereafter
28,305

Total
$
55,454

Share Repurchase Program and Dividends (Tables)
Schedule of Comprehensive Share Repurchase Activity 
A summary of the Company’s comprehensive share repurchase activity from the program's commencement through December 31, 2017, all of which was part of its publicly announced program, is presented below, in thousands: 
Board authorizations:
 
July 2008
$
60,000

August 2010
60,662

February 2011
65,000

December 2011
50,000

August 2013
50,000

December 2015
50,000

Total amount authorized
335,662

Total value of shares repurchased
308,702

Residual authorization
$
26,960

Schedule of Shares Repurchased 
The following table summarizes shares repurchased, in thousands:
 
Year-Ended December 31,
 
2017
 
2016
Number of shares repurchased
51

 
488

Value of shares repurchased, excluding commissions
$
3,471

 
$
25,614

Cash Dividends Declared 
During the year-ended December 31, 2017, the Company declared the following cash dividends, presented below in thousands except per share amounts:
Declaration Date
 
Record Date
 
Payment Date
 
Dividend per Share
 
Total Dividend Amount
February 22, 2017
 
March 10, 2017
 
April 13, 2017
 
$
0.41

 
$
4,813

May 2, 2017
 
May 24, 2017
 
July 14, 2017
 
$
0.41

 
$
4,847

August 3, 2017
 
August 25, 2017
 
October 13, 2017
 
$
0.41

 
$
4,847

December 7, 2017
 
December 22, 2017
 
January 18, 2018
 
$
0.43

 
$
5,041

Share-Based Compensation (Tables)
Summary of Stock-Based Compensation Expense 
The table below reflects the Company’s share-based compensation expense recognized in the consolidated statements of income, in thousands:
 
Year-Ended December 31,
 
2017

2016

2015
Instructional costs and services
$
781

 
$
721

 
$
408

Marketing and promotional
765

 
777

 
581

Admissions advisory
46

 
54

 
39

General and administrative
4,932

 
4,870

 
5,566

Share-based compensation expense included in operating income
6,524

 
6,422

 
6,594

Tax benefit from share-based compensation expense
2,543

 
2,433

 
2,458

Share-based compensation expense, net of tax
$
3,981

 
$
3,989

 
$
4,136

Schedule of Stock Option Exercises and Tax Benefits from Share-Based Compensation Arrangements 
The following table summarizes additional information regarding share-based compensation arrangements for the years presented, in thousands:
 
Year-Ended December 31,
 
2017
 
2016
 
2015
Net proceeds from stock options exercised
$
1,042

 
$
5,363

 
$
1,337

Intrinsic value of stock options exercised
7,820

 
5,294

 
615

Tax benefit (shortfall) realized from share-based compensation arrangements
1,901

 
462

 
(119
)
Schedule of Stock Option Activity 
The following table summarizes stock option activity for the year-ended December 31, 2017:
    
 
Plan Options Outstanding
 
 
 
 
Non-Qualified
 
Weighted-Average Exercise Price per Share
 
 
(in thousands, except per share data)
Balance, December 31, 2016
 
565

 
$
53.97

Granted
 
107

 
76.70

Exercised
 
(212
)
 
55.47

Forfeited or expired
 
(29
)
 
56.05

Balance, December 31, 2017
 
431

 
$
58.72

Schedule of Intrinsic Value, Stock Options 
The aggregate intrinsic value in the table below represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last day of the year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2017. The amount of aggregate intrinsic value will change based on the fair market value of the Company’s stock.
 
Number of Shares
 
Weighted-Average Exercise or Purchase Price per Share
 
Weighted-Average Remaining Contractual Term
 
Aggregate Intrinsic Value
 
(in thousands, except per share and contractual term data)
Balance, December 31, 2017
431

 
$
58.72

 
7.74
 
$
8,060

Vested and expected to vest, December 31, 2017
431

 
$
58.72

 
7.74
 
$
8,060

Exercisable, December 31, 2017
116

 
$
55.42

 
6.58
 
$
2,546

Schedule of Service-Based Stock Options Estimated Using Black-Scholes Option Pricing Model 
The fair value of the Company's service-based stock options was estimated as of the date of grant using the Black-Scholes option pricing model with the following assumptions:
 
Year-Ended December 31,
 
2017
 
2016
 
2015
Weighted-average exercise price (1)
$
76.70

 
$
45.46

 
$
65.40

Expected life (in years) (2)    
4.59

 
4.60

 
4.56

Expected volatility (3)    
34.02
%
 
37.62
%
 
42.35
%
Risk-free interest rate (4)    
1.79
%
 
1.18
%
 
1.46
%
Dividend yield (5)    
2.40
%
 
3.84
%
 
2.53
%
Weighted-average fair value of options granted
$
18.90

 
$
10.45

 
$
19.46


(1)
The weighted-average exercise price is equal to the Company's weighted-average stock price as of the grant date during each of the respective years.
(2)
The Company’s expected life on options granted during the years ended December 31, 2017, 2016 and 2015 is based upon its historical stock option exercise, forfeiture, and expiration activity.
(3)
The expected volatility assumption for the years ended December 31, 2017, 2016 and 2015 is based upon the Company’s historical stock price for a period commensurate with the expected life of the options.
(4)
The risk-free interest rate assumption is based upon the U.S. Treasury zero coupon yield curve on the grant date for a maturity similar to the expected life of the options.
(5)
The dividend yield assumption is based on our history and expectation of regular dividend payments.
Schedule of Restricted Stock Activity 
The following table summarizes RSU activity for the year-ended December 31, 2017:
 
Number of Shares
 
Weighted-Average Grant Date Fair Value per Share
 
(in thousands, except per share data)
Balance, December 31, 2016
159

 
$
56.07

Granted
54

 
80.58

Vested
(57
)
 
62.17

Canceled
(17
)
 
60.50

Balance, December 31, 2017
139

 
$
62.54

Schedule of Intrinsic Value, Restricted Stock Units 
The aggregate intrinsic value in the table below represents the total pre-tax intrinsic value of RSUs on December 31, 2017. The amount of aggregate intrinsic value will change based on the fair market value of the Company’s stock.
 
Number of Shares
 
Weighted-Average Remaining Contractual Term
 
Aggregate Intrinsic Value
 
(in thousands, except contractual term data)
Balance, December 31, 2017
139

 
1.24
 
$
10,795

Vested and expected to vest, December 31, 2017
139

 
1.24
 
$
10,795

Schedule of Market Stock Activity 
The following table summarizes MSU activity for the year-ended December 31, 2017:
 
Number of Shares
 
Weighted-Average Grant Date Fair Value per Share
 
(in thousands, except per share data)
Balance, December 31, 2016
104

 
$
24.13

Granted
—

 
—

Vested (1)
—

 
—

Canceled
—

 
—

Balance, December 31, 2017
104

 
$
24.13


(1)
The MSUs become fully vested on May 7, 2018. The vesting of MSUs is subject to the achievement of the 90-day average closing price of the Company's common stock at the end of the defined service period. The shares vested is calculated using the 90-day average closing price of the Company's common stock as of December 31, 2018.
Schedule of Intrinsic Value, Market Stock Units 
The aggregate intrinsic value in the table below represents the total pre-tax intrinsic value of MSUs on December 31, 2017. The amount of aggregate intrinsic value will change based on the fair market value of the Company’s stock.
 
Number of Shares
 
Weighted-Average Remaining Contractual Term
 
Aggregate Intrinsic Value
 
(in thousands, except contractual term data)
Balance, December 31, 2017
104

 
0.35
 
$
8,047

Expected to vest, December 31, 2017
104

 
0.35
 
$
8,047

Income Taxes (Tables)
Schedule Of Components Of Income Tax Expense 
The components of income tax expense are as follows, and presented in thousands:
 
Year-Ended December 31,
 
2017

2016

2015
Current income tax expense:
 
 
 
 
 
Federal
$
20,159

 
$
27,074

 
$
26,561

State
3,227

 
3,186

 
1,649

Deferred income tax expense (benefit):
 
 
 
 
 
Federal
(716
)
 
(3,969
)
 
(1,575
)
State
(193
)
 
(311
)
 
(66
)
Income tax expense
$
22,477

 
$
25,980

 
$
26,569

Income Tax Rate Reconciliation 
The following presents a reconciliation of income tax computed at the U.S. statutory rate to the effective income tax rate:
 
Year-Ended December 31,
 
2017

2016
 
2015
Statutory rate
35.0
 %
 
35.0
 %
 
35.0
 %
State income taxes
4.6

 
2.6

 
2.4

Net impact of Tax Reform
4.8

 
—

 
—

Impairment of goodwill and intangible assets
3.6

 
—

 
—

Nondeductible compensation
3.5

 
0.3

 
0.4

Nondeductible transaction costs
2.0

 
0.3

 
—

Excess tax benefit on share-based compensation
(3.8
)
 
—

 
—

Tax-exempt interest
(0.4
)
 
(0.2
)
 
(0.2
)
Other
(0.3
)
 
—

 
0.2

Effective income tax rate
49.0
 %
 
38.0
 %
 
37.8
 %
Schedule Of Components Of Deferred Income Tax Assets And Liabilities 
The following table presents significant components of the Company’s deferred income tax assets and liabilities as of December 31, 2017 and 2016, in thousands:
 
Year-Ended December 31,
 
2017
 
2016
Deferred income tax assets:
 
 
 
Net operating loss carryforwards
$
219

 
$
1,069

Capital loss carryforwards
4,075

 
6,501

Allowance for doubtful accounts
2,618

 
3,881

Deferred rent and other liabilities
4,003

 
6,429

Share-based compensation
2,918

 
5,611

Goodwill and intangible assets
934

 
—

Accumulated other comprehensive loss
41

 
52

Deferred income tax assets, before valuation allowance
14,808

 
23,543

Valuation allowance
(4,075
)
 
(6,501
)
Deferred income tax assets
10,733

 
17,042

Deferred income tax liabilities:
 
 
 
Prepaid expenses
(423
)
 
(1,816
)
Property and equipment
(7,326
)
 
(11,131
)
Goodwill and intangible assets
—

 
(2,234
)
Other
(145
)
 
(8
)
Deferred income tax liabilities
(7,894
)
 
(15,189
)
Net deferred tax asset
$
2,839

 
$
1,853

Schedule Of Reconciliation Of Unrecognized Tax Benefits 
The following table reconciles the beginning and ending amount of unrecognized tax benefits, in thousands:
 
Year-Ended December 31,
 
2017
 
2016
 
2015
Balance at January 1
$
22

 
$
27

 
$
38

Additions for tax positions of prior years
1,060

 
—

 
—

Reductions due to lapse of the applicable statute of limitations
(2
)
 
(5
)
 
(11
)
Balance at December 31
$
1,080

 
$
22

 
$
27

Acquisitions (Tables)
Schedule of purchase price allocation
A reconciliation of the assets acquired and liabilities assumed to the net cash paid to acquire Hackbright and DevMountain on the acquisition date is shown in the table below, in thousands:

 
Hackbright
 
DevMountain
Cash and cash equivalents
$
499

 
$
336

Other assets
407

 
745

Intangibles:
 
 
 
     Trade Name
4,500

 
3,400

     Customer Relationships
800

 
—

     Course Content
900

 
200

Goodwill
12,659

 
10,672

Deferred tax asset (liability)
(988
)
 
12

Liabilities assumed
(788
)
 
(418
)
Total assets acquired and liabilities assumed, net
17,989

 
14,947

Less: Fair value of contingent consideration
—

 
—

Less: Cash acquired
(499
)
 
(336
)
Cash paid for acquisition, net of cash acquired
$
17,490

 
$
14,611

Accumulated Other Comprehensive Income (Loss) (Tables)
Components Of Accumulated Other Comprehensive Income
The following table summarizes the components of accumulated other comprehensive loss, in thousands:
 
As of December 31,
 
2017
 
2016
 
2015
Foreign currency translation
$
(3
)
 
$
(6
)
 
$
(235
)
Unrealized losses on marketable securities, net of tax
(107
)
 
(87
)
 
(37
)
Accumulated other comprehensive loss(1)
$
(110
)
 
$
(93
)
 
$
(272
)

(1)
Accumulated other comprehensive loss is net of $64 thousand, $52 thousand, and $21 thousand of taxes as of December 31, 2017, 2016, and 2015, respectively. The unrealized gains and losses on the Company’s marketable securities were primarily caused by changes in market values as a result of interest rate changes
Segment Reporting (Tables)
Summary of Financial Information by Reportable Segment
A summary of financial information by reportable segment (in thousands) for the years ended December 31, 2017, 2016, and 2015 is presented in the following table. Beginning in the first quarter of 2016 through the date of the sale of the business, Arden University was considered to be held for sale, and because Arden's results of operations are presented as discontinued operations within our Consolidated Statements of Income, the summary of financial information by reportable segment below excludes the results of operations of Arden University for all periods presented.

 
Year-Ended December 31,
 
2017
 
2016
 
2015
Revenues
 
 
 
 
 
     Post-Secondary
$
430,665

 
$
424,085

 
$
415,964

     Job-Ready Skills
9,746

 
5,305

 
584

Consolidated revenues
$
440,411

 
$
429,390

 
$
416,548

Operating income (loss)
 
 
 
 
 
     Post-Secondary
$
74,005

 
$
76,935

 
$
73,248

     Job-Ready Skills
(25,183
)
 
(8,728
)
 
(2,916
)
     Merger transaction costs
(3,728
)
 
—

 
—

Consolidated operating income
45,094

 
68,207

 
70,332

Other income (expense), net
793

 
177

 
(133
)
Income from continuing operations before income taxes
$
45,887

 
$
68,384

 
$
70,199


Within the summary of financial information by reportable segment table above, the operating loss attributable to the Job-Ready Skills segment for the year-ended December 31, 2017 includes goodwill and intangible asset impairment charges of $15.0 million and restructuring charges of $0.6 million. Additionally, the operating income attributable to the Post-Secondary segment for the year-ended December 31, 2017 includes restructuring charges of $0.7 million.

The following table presents a schedule of significant non-cash items included in segment operating income (loss) by reportable segment, in thousands:

 
Year-Ended December 31,
 
2017
 
2016
 
2015
Depreciation and amortization
 
 
 
 
 
     Post-Secondary
$
18,509

 
$
20,395

 
$
21,842

     Job-Ready Skills
1,209

 
948

 
75

Consolidated depreciation and amortization
$
19,718

 
$
21,343

 
$
21,917

Impairment of property and equipment
 
 
 
 
 
     Post-Secondary
$
437

 
$
—

 
$
371

     Job-Ready Skills
3

 
442

 
525

Consolidated impairment of property and equipment
$
440

 
$
442

 
$
896

Impairment of goodwill and intangible assets
 
 
 
 
 
     Post-Secondary
$
—

 
$
—

 
$
—

     Job-Ready Skills
14,955

 
—

 
—

Consolidated impairment of goodwill and intangible assets
$
14,955

 
$
—

 
$
—

Share-based compensation
 
 
 
 
 
     Post-Secondary
$
6,512

 
$
6,195

 
$
6,474

     Job-Ready Skills
12

 
227

 
120

Consolidated share-based compensation
$
6,524

 
$
6,422

 
$
6,594

Quarterly Financial Summary (Unaudited) (Tables)
Schedule of Quarterly Financial Information
The following tables set forth selected unaudited quarterly financial information for each of the Company’s last eight quarters:
 
First
 
Second
 
Third
 
Fourth (b)
 
Total
 
(in thousands, except per share data)
2017
 
 
 
 
 
 
 
 
 
Revenues
$
111,788

 
$
109,584

 
$
107,007

 
$
112,032

 
$
440,411

Operating income (loss)
17,601

 
15,371

 
13,762

 
(1,640
)
 
45,094

 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
11,171

 
10,755

 
8,754

 
(7,270
)
 
23,410

Income from discontinued operations, net of tax
95

 
—

 
—

 
—

 
95

Net income (loss)
$
11,266

 
$
10,755

 
$
8,754

 
$
(7,270
)
 
$
23,505

Basic net income (loss) per common share:
 
 
 
 
 
 
 
 
 
     Continuing operations
$
0.97

 
$
0.92

 
$
0.75

 
$
(0.63
)
 
$
2.01

     Discontinued operations
—

 
—

 
—

 
—

 
0.01

Basic net income (loss) per common share
$
0.97

 
$
0.92

 
$
0.75

 
$
(0.63
)
 
$
2.02

Diluted net income (loss) per common share: (a)
 
 
 
 
 
 
 
 
 
     Continuing operations
$
0.94

 
$
0.90

 
$
0.73

 
$
(0.63
)
 
$
1.96

     Discontinued operations
—

 
—

 
—

 
—

 
0.01

Diluted net income (loss) per common share
$
0.94

 
$
0.90

 
$
0.73

 
$
(0.63
)
 
$
1.97

 
 
 
 
 
 
 
 
 
 
Cash dividend declared per common share
$
0.41

 
$
0.41

 
$
0.41

 
$
0.43

 
$
1.66

 
 
 
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
 
 
 
Revenues
$
105,448

 
$
106,725

 
$
105,909

 
$
111,308

 
$
429,390

Operating income
16,527

 
18,072

 
15,348

 
18,260

 
68,207

 
 
 
 
 
 
 
 
 
 
Income from continuing operations
10,276

 
11,074

 
9,587

 
11,467

 
42,404

Income (loss) from discontinued operations, net of tax
(978
)
 
(1,379
)
 
2,963

 
(41
)
 
565

Net income
$
9,298

 
$
9,695

 
$
12,550

 
$
11,426

 
$
42,969

Basic net income (loss) per common share:
 
 
 
 
 
 
 
 
 
     Continuing operations
$
0.87

 
$
0.95

 
$
0.83

 
$
1.00

 
$
3.65

     Discontinued operations
(0.08
)
 
(0.12
)
 
0.26

 
(0.01
)
 
0.05

Basic net income per common share
$
0.79

 
$
0.83

 
$
1.09

 
$
0.99

 
$
3.70

Diluted net income (loss) per common share:
 
 
 
 
 
 
 
 
 
     Continuing operations
$
0.86

 
$
0.93

 
$
0.81

 
$
0.97

 
$
3.58

     Discontinued operations
(0.08
)
 
(0.11
)
 
0.25

 
—

 
0.04

Diluted net income per common share
$
0.78

 
$
0.82

 
$
1.06

 
$
0.97

 
$
3.62

 
 
 
 
 
 
 
 
 
 
Cash dividend declared per common share
$
0.39

 
$
0.39

 
$
0.39

 
$
0.41

 
$
1.58


Note: Per share amounts for the full-year basic and diluted net income (loss) per common share may not sum across due to quarterly rounding.

(a) During quarterly periods in which the Company reports a net loss, basic and diluted loss per share are disclosed as the same amount, as including the impact of dilutive securities would be antidilutive to the calculation.

(b) In the fourth quarter of 2017, management identified certain amounts related to the tax benefit of share-based compensation aggregating to $1.5 million that were incorrectly recognized in prior years and prior quarters of 2017. The Company has recognized $1.5 million as an increase to income tax expense in the fourth quarter results of operations. Such amounts were not material to the 2017 results of operations or to the results of operations of prior years.
Nature Of Business (Details)
0 Months Ended
Aug. 18, 2016
Nature Of Business [Abstract]
 
Disposal Date
Aug. 18, 2016 
Percentage of shares sold
100.00% 
Strayer Merger (Details) (USD $)
In Thousands, unless otherwise specified
0 Months Ended 12 Months Ended
Oct. 29, 2017
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Oct. 29, 2017
Business Combinations [Abstract]
 
 
 
 
 
Date of Merger Transaction Agreement
 
Oct. 29, 2017 
 
 
 
MergerShareRatio
 
 
 
 
0.875 
Merger transaction costs
 
$ 3,728 
$ 0 
$ 0 
 
MergerAgreementTerminationFees
$ 25,000 
 
 
 
 
Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2017
Maximum [Member]
Dec. 31, 2017
Minimum [Member]
Dec. 31, 2017
Allowance for Doubtful Accounts [Member]
Dec. 31, 2016
Allowance for Doubtful Accounts [Member]
Dec. 31, 2015
Allowance for Doubtful Accounts [Member]
Dec. 31, 2017
Retained Earnings [Member]
Jan. 1, 2017
Retained Earnings [Member]
Approximate Number of Positions Eliminated for Corporate Restructuring
25 
 
 
 
 
 
 
 
 
 
Restructuring charges
$ 1,282,000 
$ 0 
$ 0 
 
 
 
 
 
 
 
Percentage of refund through five days
100.00% 
 
 
 
 
 
 
 
 
 
Percentage of refund from six to twelve days
75.00% 
 
 
 
 
 
 
 
 
 
Percentage of refund after twelve days
0.00% 
 
 
 
 
 
 
 
 
 
Percentage Of Fees Refunded For Withdrawal Or Dropping Of First FlexPath Course Within Twelve Days
100.00% 
 
 
 
 
 
 
 
 
 
Number of days a learner has to withdraw or drop a course to receive a 100% refund
5 
 
 
 
 
 
 
 
 
 
Number of days a learner has to withdraw or drop a course to receive a 75% refund
 
 
 
12 
6 
 
 
 
 
 
Colloquia tuition revenue recognized over length of colloquia, in days
 
 
 
42 
3 
 
 
 
 
 
Provision for bad debts
12,726,000 
10,663,000 
14,275,000 
 
 
12,726,000 
10,663,000 
14,275,000 
 
 
Highly liquid marketable securities, maturities in months
3 
 
 
 
 
 
 
 
 
 
Percentage of revenue collected from Title IV programs
75.53% 
76.94% 
75.47% 
 
 
 
 
 
 
 
Impairment of property and equipment
440,000 
442,000 
896,000 
 
 
 
 
 
 
 
Advertising costs
71,300,000 
67,000,000 
68,900,000 
 
 
 
 
 
 
 
Cumulative Effect of New Accounting Principle in Period of Adoption
84,000 
 
 
 
 
 
 
 
(133,000)
(100,000)
Incremental tax benefit (deficiency) recognized in income tax expense
$ 1,900,000 
 
 
 
 
 
 
 
 
 
Summary Of Significant Accounting Policies (Estimated useful lives) (Details)
12 Months Ended
Dec. 31, 2017
Minimum [Member] |
Computer Equipment [Member]
 
Summary Of Accounting Policies [Line Items]
 
Property, Plant and Equipment, Useful Life
3 years 
Minimum [Member] |
Furniture and Fixtures [Member]
 
Summary Of Accounting Policies [Line Items]
 
Property, Plant and Equipment, Useful Life
5 years 
Minimum [Member] |
Computer Software [Member]
 
Summary Of Accounting Policies [Line Items]
 
Property, Plant and Equipment, Useful Life
3 years 
Maximum [Member] |
Computer Equipment [Member]
 
Summary Of Accounting Policies [Line Items]
 
Property, Plant and Equipment, Useful Life
7 years 
Maximum [Member] |
Furniture and Fixtures [Member]
 
Summary Of Accounting Policies [Line Items]
 
Property, Plant and Equipment, Useful Life
7 years 
Maximum [Member] |
Computer Software [Member]
 
Summary Of Accounting Policies [Line Items]
 
Property, Plant and Equipment, Useful Life
5 years 
Summary Of Significant Accounting Policies (Schedule of basic and diluted earnings per share) (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Earnings per share [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
$ (7,270)
$ 8,754 
$ 10,755 
$ 11,171 
$ 11,467 
$ 9,587 
$ 11,074 
$ 10,276 
$ 23,410 
$ 42,404 
$ 43,630 
Income (loss) from discontinued operations, net of tax
0 
0 
0 
95 
(41)
2,963 
(1,379)
(978)
95 
565 
(3,442)
Net income
$ (7,270)
$ 8,754 
$ 10,755 
$ 11,266 
$ 11,426 
$ 12,550 
$ 9,695 
$ 9,298 
$ 23,505 
$ 42,969 
$ 40,188 
Weighted average shares outstanding - Basic
 
 
 
 
 
 
 
 
11,623,000 
11,614,000 
12,079,000 
Effect of dilutive stock options, restricted stock, and market stock units
 
 
 
 
 
 
 
 
327,000 
242,000 
222,000 
Weighted average shares outstanding - Diluted
 
 
 
 
 
 
 
 
11,950,000 
11,856,000 
12,301,000 
Basic net income per share - continuing operations
$ (0.63)
$ 0.75 
$ 0.92 
$ 0.97 
$ 1.00 
$ 0.83 
$ 0.95 
$ 0.87 
$ 2.01 
$ 3.65 
$ 3.61 
Basic net income (loss) per share - discontinued operations
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
$ (0.01)
$ 0.26 
$ (0.12)
$ (0.08)
$ 0.01 
$ 0.05 
$ (0.28)
Basic net income per common share
$ (0.63)
$ 0.75 
$ 0.92 
$ 0.97 
$ 0.99 
$ 1.09 
$ 0.83 
$ 0.79 
$ 2.02 
$ 3.70 
$ 3.33 
Diluted net income per share - continuing operations
$ (0.63)
$ 0.73 
$ 0.90 
$ 0.94 
$ 0.97 
$ 0.81 
$ 0.93 
$ 0.86 
$ 1.96 
$ 3.58 
$ 3.55 
Diluted net income (loss) per share - discontinued operations
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.25 
$ (0.11)
$ (0.08)
$ 0.01 
$ 0.04 
$ (0.28)
Diluted net income per common share
$ (0.63)
$ 0.73 
$ 0.90 
$ 0.94 
$ 0.97 
$ 1.06 
$ 0.82 
$ 0.78 
$ 1.97 
$ 3.62 
$ 3.27 
Anti-dilutive securities excluded from diluted earnings per share calcualtion
 
 
 
 
 
 
 
 
100,000 
300,000 
300,000 
Discontinued Operations (Details)
In Thousands, unless otherwise specified
0 Months Ended 3 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Aug. 18, 2016
Dec. 31, 2017
USD ($)
Sep. 30, 2017
USD ($)
Jun. 30, 2017
USD ($)
Mar. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Sep. 30, 2016
USD ($)
Jun. 30, 2016
USD ($)
Mar. 31, 2016
USD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Aug. 18, 2016
Arden University [Member]
Dec. 31, 2017
Arden University [Member]
USD ($)
Dec. 31, 2016
Arden University [Member]
USD ($)
Dec. 31, 2015
Arden University [Member]
USD ($)
Dec. 31, 2016
United Kingdom, Pounds
Arden University [Member]
GBP (£)
Sep. 30, 2016
United Kingdom, Pounds
Arden University [Member]
GBP (£)
Dec. 31, 2017
United Kingdom, Pounds
Arden University [Member]
GBP (£)
Aug. 18, 2016
United Kingdom, Pounds
Arden University [Member]
GBP (£)
Dec. 31, 2016
United States of America, Dollars
Arden University [Member]
USD ($)
Sep. 30, 2016
United States of America, Dollars
Arden University [Member]
USD ($)
Dec. 31, 2017
United States of America, Dollars
Arden University [Member]
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Disposal Date
Aug. 18, 2016 
 
 
 
 
 
 
 
 
 
 
 
Aug. 18, 2016 
 
 
 
 
 
 
 
 
 
 
Percentage of shares sold
100.00% 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
Consideration for Arden divestiture
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
£ 15,000 
 
 
 
Cash proceeds from sale of Arden
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000 
11,500 
2,500 
 
1,300 
13,900 
3,200 
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
8,765 
13,718 
 
 
 
 
 
 
 
Instructional costs and services
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
4,345 
6,969 
 
 
 
 
 
 
 
Marketing and promotional
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
3,527 
4,784 
 
 
 
 
 
 
 
Admissions advisory
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
698 
987 
 
 
 
 
 
 
 
General and administrative
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
3,837 
4,278 
 
 
 
 
 
 
 
Total costs and expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
12,407 
17,018 
 
 
 
 
 
 
 
Operating loss
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
(3,642)
(3,300)
 
 
 
 
 
 
 
Gain on sale of Arden
 
 
 
 
 
 
 
 
 
 
 
 
 
149 
4,070 
0 
 
 
 
 
 
 
 
Other income (expense), net
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
(288)
(84)
 
 
 
 
 
 
 
Income (loss) before income taxes
 
 
 
 
 
 
 
 
 
 
 
 
 
149 
140 
(3,384)
 
 
 
 
 
 
 
Income tax expense (benefit)
 
 
 
 
 
 
 
 
 
 
 
 
 
54 
(425)
58 
 
 
 
 
 
 
 
Income (loss) from discontinued operations, net of tax
 
$ 0 
$ 0 
$ 0 
$ 95 
$ (41)
$ 2,963 
$ (1,379)
$ (978)
$ 95 
$ 565 
$ (3,442)
 
$ 95 
$ 565 
$ (3,442)
 
 
 
 
 
 
 
Marketable Securities (Summary Of Available-For-Sale Securities) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
 
 
Available-for-sale securities, amortized cost
$ 74,967 
$ 68,917 
Accumulated Gross Unrealized Gain, before Tax
8 
15 
Accumulated Gross Unrealized Loss, before Tax
(179)
(154)
Marketable Securities
74,796 
68,778 
Tax-Exempt Municipal Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Available-for-sale securities, amortized cost
35,070 
63,113 
Accumulated Gross Unrealized Gain, before Tax
0 
2 
Accumulated Gross Unrealized Loss, before Tax
(87)
(152)
Marketable Securities
34,983 
62,963 
Corporate Debt Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Available-for-sale securities, amortized cost
16,102 
5,804 
Accumulated Gross Unrealized Gain, before Tax
8 
13 
Accumulated Gross Unrealized Loss, before Tax
(92)
(2)
Marketable Securities
16,018 
5,815 
Variable Rate Demand Obligation [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Available-for-sale securities, amortized cost
23,795 
 
Accumulated Gross Unrealized Gain, before Tax
0 
 
Accumulated Gross Unrealized Loss, before Tax
0 
 
Marketable Securities
$ 23,795 
 
Marketable Securities (Summary Of Remaining Contractual Maturities Of Marketable Securities) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Marketable Securities [Abstract]
 
 
Due within one year
$ 45,226 
$ 45,458 
Due after one year through five years
29,570 
23,320 
Marketable Securities
$ 74,796 
$ 68,778 
Marketable Securities (Proceeds From The Sale And Maturities Of Available-For-Sale Securities) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Marketable Securities [Abstract]
 
 
 
Maturities of available-for-sale securities
$ 66,220 
$ 31,430 
$ 30,175 
Total
$ 66,220 
$ 31,430 
$ 30,175 
Marketable Securities (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Marketable Securities
$ 74,796 
$ 68,778 
 
Other-than-temporary impairment charges
0 
0 
0 
Available-for-sale Securities, Amortized Cost Basis
74,967 
68,917 
 
Gross realized gains
0 
0 
0 
Gross realized losses
0 
0 
0 
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions
0 
 
 
Proceeds from Sale of Available-for-sale Securities
$ 0 
$ 0 
$ 0 
Minimum [Member]
 
 
 
Contractual Maturity Period of VRDNs
9 years 0 months 0 days 
 
 
Effective Maturity Period of VRDNs
0 years 0 months 1 day 
 
 
Maximum [Member]
 
 
 
Contractual Maturity Period of VRDNs
31 years 0 months 0 days 
 
 
Effective Maturity Period of VRDNs
0 years 0 months 7 days 
 
 
Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount
$ 0 
$ 0 
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount
0 
0 
Fair Value, Measurements, Recurring [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
181,362 
162,348 
Fair Value, Measurements, Recurring [Member] |
Cash [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash and Cash Equivalents, Fair Value Disclosure
17,951 
24,658 
Fair Value, Measurements, Recurring [Member] |
Money Market Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash and Cash Equivalents, Fair Value Disclosure
88,615 
68,237 
Fair Value, Measurements, Recurring [Member] |
Variable rate demand notes [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash and Cash Equivalents, Fair Value Disclosure
23,795 
675 
Fair Value, Measurements, Recurring [Member] |
Tax-Exempt Municipal Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale Securities, Fair Value Disclosure
34,983 
62,963 
Fair Value, Measurements, Recurring [Member] |
Corporate Debt Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale Securities, Fair Value Disclosure
16,018 
5,815 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
106,566 
92,895 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Cash [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash and Cash Equivalents, Fair Value Disclosure
17,951 
24,658 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Money Market Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash and Cash Equivalents, Fair Value Disclosure
88,615 
68,237 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Variable rate demand notes [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash and Cash Equivalents, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Tax-Exempt Municipal Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale Securities, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Corporate Debt Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale Securities, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
74,796 
69,453 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Cash [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash and Cash Equivalents, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Money Market Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash and Cash Equivalents, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Variable rate demand notes [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash and Cash Equivalents, Fair Value Disclosure
23,795 
675 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Tax-Exempt Municipal Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale Securities, Fair Value Disclosure
34,983 
62,963 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Corporate Debt Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale Securities, Fair Value Disclosure
16,018 
5,815 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Cash [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash and Cash Equivalents, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Money Market Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash and Cash Equivalents, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Variable rate demand notes [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash and Cash Equivalents, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Tax-Exempt Municipal Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale Securities, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Corporate Debt Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale Securities, Fair Value Disclosure
$ 0 
$ 0 
Fair Value Measurements Narrative (Details) (Fair Value, Inputs, Level 3 [Member], DevMountain Contingent Consideration [Member], USD $)
In Thousands, unless otherwise specified
0 Months Ended
May 4, 2016
Dec. 31, 2017
Dec. 31, 2016
Jun. 30, 2016
May 4, 2016
Dec. 31, 2015
Fair Value, Inputs, Level 3 [Member] |
DevMountain Contingent Consideration [Member]
 
 
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
 
 
Maximum potential cash payment for contingent consideration
 
 
 
 
$ 5,000 
 
DevMountain contingent consideration liability
 
 
 
1,500 
 
 
Fair value of DevMountain contingent consideration
 
$ 0 
$ 0 
 
 
$ 0 
Contingent consideration measurement period
3 years 
 
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) (DevMountain Contingent Consideration [Member], Fair Value, Inputs, Level 3 [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
DevMountain Contingent Consideration [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
Contingent consideration balance, beginning of year
$ 0 
$ 0 
Initial fair value of contingent consideration
0 
1,500 
Measurement period adjustment
0 
(1,500)
Contingent consideration balance, end of year
$ 0 
$ 0 
Property And Equipment (Schedule Of Property And Equipment) (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Property and Equipment [Line Items]
 
 
 
Property and equipment, gross
$ 185,980,000 
$ 190,884,000 
 
Less accumulated depreciation and amortization
(150,019,000)
(156,763,000)
 
Property and equipment, net
35,961,000 
34,121,000 
 
Depreciation expense
19,000,000 
20,800,000 
21,900,000 
Amortization of capitalized internally developed software
14,600,000 
16,100,000 
15,800,000 
Capitalized internally developed software
27,600,000 
25,400,000 
 
Computer Software [Member]
 
 
 
Property and Equipment [Line Items]
 
 
 
Computer software
157,290,000 
147,149,000 
 
Computer Equipment [Member]
 
 
 
Property and Equipment [Line Items]
 
 
 
Computer equipment
19,196,000 
34,693,000 
 
Furniture and Fixtures [Member]
 
 
 
Property and Equipment [Line Items]
 
 
 
Furniture and office equipment
7,961,000 
8,229,000 
 
Leasehold Improvements [Member]
 
 
 
Property and Equipment [Line Items]
 
 
 
Leasehold improvements
$ 1,533,000 
$ 813,000 
 
Goodwill And Intangible Assets Goodwill (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2016
Hackbright [Member]
Apr. 22, 2016
Hackbright [Member]
Dec. 31, 2016
DevMountain [Member]
May 4, 2016
DevMountain [Member]
Dec. 31, 2017
Job-Ready Skills [Member]
Dec. 31, 2016
Job-Ready Skills [Member]
Dec. 31, 2015
Job-Ready Skills [Member]
Goodwill [Line Items]
 
 
 
 
 
 
 
 
 
Impairment of trade names
$ 5,100 
$ 0 
 
 
 
 
 
 
 
Cash payments to acquire businesses
 
 
18,000 
 
15,000 
 
 
 
 
Impairment of goodwill
 
 
 
 
 
 
9,855 
0 
 
Goodwill
$ 13,477 
$ 23,310 
 
$ 12,659 
 
$ 10,672 
$ 13,477 
$ 23,310 
$ 0 
Goodwill And Intangible Assets Schedule of Goodwill (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Goodwill [Line Items]
 
 
Goodwill, end of year
$ 13,477 
$ 23,310 
Job-Ready Skills [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill, beginning of year
23,310 
0 
Goodwill acquired as part of business combinations
0 
23,310 
Measurement period adjustment
22 
0 
Impairment of goodwill
(9,855)
0 
Goodwill, end of year
$ 13,477 
$ 23,310 
Goodwill And Intangible Assets Schdule of Acquired Intangible Assets (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Acquired Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Assets, Gross
$ 1,900 
$ 1,900 
Finite-Lived Intangible Assets, Accumulated Amortization
(1,298)
(579)
Finite-Lived Intangible Assets, Net
602 
1,321 
Indefinite-lived trade names (non-amortizable), gross
7,900 
7,900 
Impairment of trade names
(5,100)
0 
Indefinite-lived trade names (non-amortizable), net
2,800 
7,900 
Total intangible assets, net
3,402 
9,221 
Finite-Lived Intangible Asset, Useful Life
1 year 10 months 0 days 
 
Minimum [Member]
 
 
Acquired Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Asset, Useful Life
1 year 0 months 0 days 
 
Maximum [Member]
 
 
Acquired Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Asset, Useful Life
4 years 0 months 0 days 
 
Course Content [Member]
 
 
Acquired Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Assets, Gross
1,100 
1,100 
Finite-Lived Intangible Assets, Accumulated Amortization
(960)
(441)
Customer Relationships [Member]
 
 
Acquired Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Assets, Gross
800 
800 
Finite-Lived Intangible Assets, Accumulated Amortization
$ (338)
$ (138)
Goodwill And Intangible Assets Schedule of Amortization Expense (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
 
Amortization expense
$ 719 
$ 579 
$ 0 
Goodwill And Intangible Assets Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
 
2018
$ 340 
 
2019
200 
 
2020
62 
 
2021
0 
 
2022
0 
 
2023 and thereafter
0 
 
Total
$ 602 
$ 1,321 
Accrued Liabilities (Schedule of Accrued Liabilities) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Accrued Liabilities [Abstract]
 
 
Accrued compensation and benefits
$ 9,151 
$ 12,976 
Accrued instructional
3,662 
3,811 
Accrued vacation
1,122 
1,111 
Accrued invoices
10,683 
11,252 
Other Accrued Liabilities, Current
2,001 1
2,152 1
Accrued Liabilities
$ 26,619 
$ 31,302 
Commitments And Contingencies (Narrative) (Details) (USD $)
0 Months Ended 12 Months Ended
Aug. 5, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Aug. 5, 2016
sqft
Commitments and Contingencies Disclosure [Abstract]
 
 
 
 
 
Lease Inception Date
Aug. 05, 2016 
 
 
 
 
Lease Expiration Date
 
Oct. 31, 2028 
 
 
 
Reduction in Square Footage of Leased Property
 
 
 
 
64,000 
Incentive to Lessee
 
 
 
 
$ 13,600,000 
Number of lease extension terms
 
2 
 
 
 
Lease Extension Term
 
5 years 0 months 0 days 
 
 
 
Operating Leases, Rent Expense, Net
 
10,700,000 
10,800,000 
10,000,000 
 
Line of Credit Facility [Line Items]
 
 
 
 
 
Line of Credit Facility, Initiation Date
 
 
 
Dec. 18, 2015 
 
Line of credit
 
100,000,000 
 
 
 
Line of credit facility increase option
 
50,000,000 
 
 
 
Line of credit facility, expiration date
 
Dec. 18, 2020 
 
 
 
Commitment fee expense
 
300,000 
300,000 
300,000 
 
Capitalized transaction costs related to credit facility
 
 
 
800,000 
 
Amortization period of transaction costs, years
 
5 
 
 
 
Borrowings under the line of credit
 
$ 0 
$ 0 
 
 
London Interbank Offered Rate (LIBOR) [Member] |
Minimum [Member]
 
 
 
 
 
Line of Credit Facility [Line Items]
 
 
 
 
 
Line of credit facility, interest rate
 
1.75% 
 
 
 
London Interbank Offered Rate (LIBOR) [Member] |
Maximum [Member]
 
 
 
 
 
Line of Credit Facility [Line Items]
 
 
 
 
 
Line of credit facility, interest rate
 
2.25% 
 
 
 
Federal Funds Rate [Member] |
Base Rate [Member]
 
 
 
 
 
Line of Credit Facility [Line Items]
 
 
 
 
 
Line of credit facility, interest rate
 
0.50% 
 
 
 
London Interbank Offered Rate (LIBOR) [Member] |
Base Rate [Member]
 
 
 
 
 
Line of Credit Facility [Line Items]
 
 
 
 
 
Line of credit facility, interest rate
 
1.00% 
 
 
 
London Interbank Offered Rate (LIBOR) [Member] |
Base Rate [Member] |
Minimum [Member]
 
 
 
 
 
Line of Credit Facility [Line Items]
 
 
 
 
 
Line of credit facility, interest rate
 
0.75% 
 
 
 
London Interbank Offered Rate (LIBOR) [Member] |
Base Rate [Member] |
Maximum [Member]
 
 
 
 
 
Line of Credit Facility [Line Items]
 
 
 
 
 
Line of credit facility, interest rate
 
1.25% 
 
 
 
Commitments And Contingencies (Tables) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
 
2018
$ 6,886 
2019
5,695 
2020
5,329 
2021
4,689 
2022
4,550 
2023 and thereafter
28,305 
Total
$ 55,454 
Share Repurchase Program and Dividends (Summary of Share Repurchase Activity) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Share Repurchase Program Authorizations [Line Items]
 
 
Stock Repurchase Program, Authorized Amount
$ 335,662 
 
Total value of shares repurchased
308,702 
 
Residual Authorization
26,960 
 
Repurchase of common stock, shares
51 
488 
Value of shares repurchased, excluding commissions
3,471 
25,614 
July 2008 [Member]
 
 
Share Repurchase Program Authorizations [Line Items]
 
 
Stock Repurchase Program, Authorized Amount
60,000 
 
August 2010 [Member]
 
 
Share Repurchase Program Authorizations [Line Items]
 
 
Stock Repurchase Program, Authorized Amount
60,662 
 
February 2011 [Member]
 
 
Share Repurchase Program Authorizations [Line Items]
 
 
Stock Repurchase Program, Authorized Amount
65,000 
 
December 2011 [Member]
 
 
Share Repurchase Program Authorizations [Line Items]
 
 
Stock Repurchase Program, Authorized Amount
50,000 
 
August 2013 [Member]
 
 
Share Repurchase Program Authorizations [Line Items]
 
 
Stock Repurchase Program, Authorized Amount
50,000 
 
December 2015 [Member]
 
 
Share Repurchase Program Authorizations [Line Items]
 
 
Stock Repurchase Program, Authorized Amount
$ 50,000 
 
Share Repurchase Program and Dividends (Narrative) (Details) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Stockholders' Equity Note [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Stock Repurchase Program, Authorized Amount
$ 335,662,000 
 
 
 
 
 
 
 
$ 335,662,000 
 
 
Number of aggregate shares repurchased under programs
6.7 
 
 
 
 
 
 
 
6.7 
 
 
Shares repurchased, average price per share
 
 
 
 
 
 
 
 
$ 46.28 
 
 
Aggregate consideration for shares repurchased
 
 
 
 
 
 
 
 
308,700,000 
 
 
Cash dividend declared per common share
$ 0.43 
$ 0.41 
$ 0.41 
$ 0.41 
$ 0.41 
$ 0.39 
$ 0.39 
$ 0.39 
$ 1.66 
$ 1.58 
$ 1.50 
Dividends Payable, Date Declared
Dec. 07, 2017 
Aug. 03, 2017 
May 02, 2017 
Feb. 22, 2017 
 
 
 
 
 
 
 
Dividend declaration, current payable
$ 5,000,000 
 
 
 
 
 
 
 
$ 5,000,000 
 
 
Share Repurchase Program and Dividends (Schedule of Cash Dividends Declared) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Stockholders' Equity Note [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Dividends Payable, Date Declared
Dec. 07, 2017 
Aug. 03, 2017 
May 02, 2017 
Feb. 22, 2017 
 
 
 
 
 
 
 
Record date
Dec. 22, 2017 
Aug. 25, 2017 
May 24, 2017 
Mar. 10, 2017 
 
 
 
 
 
 
 
Payment date
Jan. 18, 2018 
Oct. 13, 2017 
Jul. 14, 2017 
Apr. 13, 2017 
 
 
 
 
 
 
 
Cash dividend declared per common share
$ 0.43 
$ 0.41 
$ 0.41 
$ 0.41 
$ 0.41 
$ 0.39 
$ 0.39 
$ 0.39 
$ 1.66 
$ 1.58 
$ 1.50 
Total dividend declaration amount
$ 5,041 
$ 4,847 
$ 4,847 
$ 4,813 
 
 
 
 
$ 19,548 
$ 18,586 
$ 18,287 
Share-Based Compensation (Narrative) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2017
Stock incentive plan 2014 [Member]
May 6, 2014
Stock incentive plan 2014 [Member]
Dec. 31, 2017
Stock incentive plan 2014 [Member]
Maximum [Member]
May 6, 2014
Stock incentive plan 2005 [Member]
Dec. 31, 2017
Stock Options [Member]
Dec. 31, 2017
Restricted Stock Units (RSUs) [Member]
Maximum [Member]
Dec. 31, 2017
Restricted Stock Units (RSUs) [Member]
Minimum [Member]
Common Stock, Capital Shares Reserved for Future Issuance
 
 
 
 
480,000 
1,300,000 
830,888 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant
 
 
 
1,100,000 
 
 
 
 
 
 
Current contractual term of options, years
 
 
 
 
 
 
 
10 years 
 
 
Vesting period, years
 
 
 
 
 
 
 
4 years 
3 years 
1 year 
Compensation cost related to nonvested options and awards not yet recognized
$ 3.4 
 
 
 
 
 
 
 
 
 
Compensation cost related to nonvested service-based stock options not yet recognized, period of recognition
1 year 0 months 0 days 
 
 
 
 
 
 
 
 
 
Fair value of stock options and RSUs vested in period
$ 5.9 
$ 4.6 
$ 6.0 
 
 
 
 
 
 
 
Share-Based Compensation (Summary Of Stock-Based Compensation Expense) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation expense included in operating income
$ 6,524 
$ 6,422 
$ 6,594 
Tax benefit from share-based compensation expense
2,543 
2,433 
2,458 
Share-based compensation expense, net of tax
3,981 
3,989 
4,136 
Instructional costs and services [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation expense included in operating income
781 
721 
408 
Marketing and promotional [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation expense included in operating income
765 
777 
581 
Admissions advisory [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation expense included in operating income
46 
54 
39 
General and administrative [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation expense included in operating income
$ 4,932 
$ 4,870 
$ 5,566 
Share-Based Compensation (Schedule Of Stock Option Exercises) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Share-based Compensation [Abstract]
 
 
 
Net proceeds from stock options exercised
$ 1,042 
$ 5,363 
$ 1,337 
Intrinsic value of stock options exercised
7,820 
5,294 
615 
Tax benefit (shortfall) realized from share-based compensation
$ 1,901 
$ 462 
$ (119)
Share-Based Compensation (Schedule Of Option Activity) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Weighted-average exercise price per share, Granted
$ 76.70 1
$ 45.46 1
$ 65.40 1
Non Qualified [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Available for Grant, Balance, December 31, 2016
565 
 
 
Available for Grant/Plan Options Outstanding, Granted
107 
 
 
Available for Grant/Plan Options Outstanding, Exercised
(212)
 
 
Available for Grant/Plan Options Outstanding, Forfeited
(29)
 
 
Available for Grant, Balance, December 31, 2017
431 
 
 
Stock Options [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Weighted-Average Exercise Price per Share, December 31, 2016
$ 53.97 
 
 
Weighted-average exercise price per share, Granted
$ 76.70 
 
 
Weighted-average exercise price, exercised
$ 55.47 
 
 
Weighted-Average Exercise Price per Share, Forfeited
$ 56.05 
 
 
Weighted-Average Exercise Price per Share, December 31, 2017
$ 58.72 
 
 
Outstanding, December 31, 2017, Number of Shares
431 
 
 
Outstanding, December 31, 2016, Weighted-Average Exercise Price
$ 58.72 
 
 
Outstanding, December 31, 2017, Weighted-average remaining contractual term
7 years 8 months 25 days 
 
 
Outstanding, December 31, 2017, Aggregate intrinsic value
$ 8,060 
 
 
Vested and expected to vest, December 31, 2017, Number of Shares
431 
 
 
Vested and expected to vest, December 31, 2017, Weighted-Average Exercise Price per Share
$ 58.72 
 
 
Vested and expected to vest, December 31, 2017, Weighted-Average Remaining Contractual Term
7 years 8 months 25 days 
 
 
Vested and expected to vest, December 31, 2017, Aggregate Intrinsic Value
8,060 
 
 
Exercisable, December 31, 2017, Number of Shares
116 
 
 
Exercisable, December 31, 2017, Weighted-Average Exercise Price per Share
$ 55.42 
 
 
Exercisable, December 31, 2017, Weighted-Average Remaining Contractual Term
6 years 6 months 28 days 
 
 
Exercisable, December 31, 2017 Aggregate Intrinsic Value
$ 2,546 
 
 
Share-Based Compensation (Schedule Of Service-Based Stock Options Estimated Using Black-Scholes Option Pricing Model) (Details)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Share-based Compensation [Abstract]
 
 
 
Weighted-average exercise price per share, Granted
$ 76.70 1
$ 45.46 1
$ 65.40 1
Expected life (in years)
4 years 6 months 32 days 2
4 years 6 months 35 days 2
4 years 6 months 22 days 2
Expected volatility
34.02% 3
37.62% 3
42.35% 3
Risk-free interest rate
1.79% 4
1.18% 4
1.46% 4
Dividend yield
2.40% 5
3.84% 5
2.53% 5
Weighted-average fair value of options granted
$ 18.90 
$ 10.45 
$ 19.46 
Share-Based Compensation (Schedule Of Restricted Stock Activity) (Details) (Restricted Stock Units (RSUs) [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Restricted Stock Units (RSUs) [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Nonvested balance, December 31, 2016, Number of Shares
159 
Number of Shares, Granted
54 
Number of Shares, Vested
(57)
Number of Shares, Canceled
(17)
Nonvested balance, December 31, 2017, Number of Shares
139 
Nonvested balance, December 31, 2016, Weighted-Average Grant Date Fair Value per Share
$ 56.07 
Weighted-Average Grant Date Fair Value per Share, Granted
$ 80.58 
Weighted-Average Grant Date Fair Value, Vested
$ 62.17 
Weighted-Average Grant Date Fair Value per Share, Canceled
$ 60.50 
Nonvested balance, December 31, 2017, Weighted-Average Grant Date Fair Value per Share
$ 62.54 
Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms
1 year 2 months 25 days 
Equity Instruments Other than Options, Nonvested, Intrinsic Value
$ 10,795 
Equity Instruments Other than Options, Vested and Expected to Vest, Number
139 
Equity Instruments Other than Options, Vested and Expected to Vest, Weighted Average Remaining Contractual Terms
1 year 2 months 25 days 
Equity Instruments Other than Options, Vested and Expected to Vest, Intrinsic Value
$ 10,795 
Share-Based Compensation Share-Based Compensation (Schedule of Market Stock Units) (Details) (Market Stock Units (MSUs) [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Market Stock Units (MSUs) [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Nonvested balance, December 31, 2016, Number of Shares
104 
Number of Shares, Granted
0 
Number of Shares, Vested
0 1
Number of Shares, Canceled
0 
Nonvested balance, December 31, 2017, Number of Shares
104 
Nonvested balance, December 31, 2016, Weighted-Average Grant Date Fair Value per Share
$ 24.13 
Weighted-Average Grant Date Fair Value per Share, Granted
$ 0.00 
Weighted-Average Grant Date Fair Value, Vested
$ 0.00 1
Weighted-Average Grant Date Fair Value per Share, Canceled
$ 0.00 
Nonvested balance, December 31, 2017, Weighted-Average Grant Date Fair Value per Share
$ 24.13 
Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms
0 years 3 months 36 days 
Equity Instruments Other than Options, Nonvested, Intrinsic Value
$ 8,047 
Equity Instruments Other than Options, Vested and Expected to Vest, Number
104 
Equity Instruments Other than Options, Vested and Expected to Vest, Weighted Average Remaining Contractual Terms
0 years 3 months 36 days 
Equity Instruments Other than Options, Vested and Expected to Vest, Intrinsic Value
$ 8,047 
Income Taxes (Schedule Of Components Of Income Tax Expense) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Tax Disclosure [Abstract]
 
 
 
Current, Federal
$ 20,159 
$ 27,074 
$ 26,561 
Current, State
3,227 
3,186 
1,649 
Deferred, Federal
(716)
(3,969)
(1,575)
Deferred, State
(193)
(311)
(66)
Income tax expense
$ 22,477 
$ 25,980 
$ 26,569 
Income Taxes (Schedule Of Reconciliation Of Income Tax Computed At The U.S. Statutory Rate To The Effective Income Tax Rate) (Details)
0 Months Ended 12 Months Ended
Jan. 1, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Tax Disclosure [Abstract]
 
 
 
 
Statutory rate
21.00% 
35.00% 
35.00% 
35.00% 
State income taxes
 
4.60% 
2.60% 
2.40% 
Net impact of Tax Reform
 
4.80% 
0.00% 
0.00% 
Impairment of goodwill and intangible assets
 
3.60% 
0.00% 
0.00% 
Nondeductible compensation
 
3.50% 
0.30% 
0.40% 
Nondeductible transaction costs
 
2.00% 
0.30% 
0.00% 
Excess tax benefit on share-based compensation
 
(3.80%)
0.00% 
0.00% 
Tax-exempt interest
 
(0.40%)
(0.20%)
(0.20%)
Other
 
(0.30%)
0.00% 
0.20% 
Effective income tax rate
 
49.00% 
38.00% 
37.80% 
Income Taxes (Schedule Of Components Of Deferred Income Tax Assets And Liabilities) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Income Tax Disclosure [Abstract]
 
 
Net operating loss carryforwards
$ 219 
$ 1,069 
Capital loss carryforwards
4,075 
6,501 
Allowance for doubtful accounts
2,618 
3,881 
Deferred rent and other liabilities
4,003 
6,429 
Share-based compensation
2,918 
5,611 
Deferred Tax Assets, Goodwill and Intangible Assets
934 
0 
Accumulated Other Comprehensive Loss
41 
52 
Deferred income tax assets, before valuation allowance
14,808 
23,543 
Valuation allowance
(4,075)
(6,501)
Deferred income tax assets
10,733 
17,042 
Prepaid expenses
(423)
(1,816)
Property and equipment
(7,326)
(11,131)
Goodwill and Intangible Assets
0 
(2,234)
Deferred Tax Liabilities, Other
(145)
(8)
Deferred income tax liabilities, gross
(7,894)
(15,189)
Net deferred tax asset (liability)
$ 2,839 
$ 1,853 
Income Taxes (Schedule Of Reconciliation Of Unrecognized Tax Benefits) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Tax Disclosure [Abstract]
 
 
 
Balance at January 1
$ 22 
$ 27 
$ 38 
Additions for tax positions of prior years
1,060 
0 
0 
Reductions due to lapse of the applicable statute of limitations
(2)
(5)
(11)
Balance at December 31
$ 1,080 
$ 22 
$ 27 
Income Taxes (Narrative) (Details) (USD $)
0 Months Ended 12 Months Ended
Jan. 1, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Tax Disclosure [Line Items]
 
 
 
 
 
Statutory rate
21.00% 
35.00% 
35.00% 
35.00% 
 
Tax Reform Impact on current year Income Tax Expense Provisional Amount
 
$ 2,200,000 
 
 
 
Tax Reform Impact on current year Income Tax Expense from Remeasurement of Deferred Taxes Provisional Amount
 
1,400,000 
 
 
 
Tax Reform Impact on current year Income Tax Expense from nondeductible compensation Provisional Amount
 
800,000 
 
 
 
Net operating loss carryforwards
 
219,000 
1,069,000 
 
 
Valuation allowance
 
4,075,000 
6,501,000 
 
 
Change in valuation allowance from Tax Reform
 
2,426,000 
 
 
 
Tax benefit (shortfall) realized from share-based compensation
 
1,901,000 
462,000 
(119,000)
 
Interest expense from tax calculation adjustments
 
216,000 
79,000 
 
 
Total gross unrecognized tax benefits
 
1,080,000 
22,000 
27,000 
38,000 
Unrecognized tax benefits that would impact effective tax rate
 
789,000 
 
 
 
Reductions due to lapse of the applicable statute of limitations
 
2,000 
5,000 
11,000 
 
Statute of limitations expiring in 2018
 
144,000 
 
 
 
Interest and penalties related to uncertain tax positions
 
5,000 
1,000 
2,000 
 
State and Local Jurisdiction [Member] |
Maximum [Member]
 
 
 
 
 
Income Tax Disclosure [Line Items]
 
 
 
 
 
Statute of limitations period
 
5 
 
 
 
State and Local Jurisdiction [Member] |
Minimum [Member]
 
 
 
 
 
Income Tax Disclosure [Line Items]
 
 
 
 
 
Statute of limitations period
 
3 
 
 
 
Hackbright [Member] |
State and Local Jurisdiction [Member]
 
 
 
 
 
Income Tax Disclosure [Line Items]
 
 
 
 
 
Net operating loss carryforwards
 
2,000,000 
 
 
 
Hackbright [Member] |
Domestic Tax Authority [Member]
 
 
 
 
 
Income Tax Disclosure [Line Items]
 
 
 
 
 
Net operating loss carryforwards
 
$ 200,000 
 
 
 
Other Investments (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Other Commitments [Line Items]
 
 
Other than Temporary Impairment Losses, Investments
$ 0 
$ 0 
Health Care Commitment [Member]
 
 
Other Commitments [Line Items]
 
 
Cost method investments
3.9 
2.9 
Limited Partnership Commitment Amount
0.6 
 
Payments to Acquire Other Investments
1.0 
0.5 
Limited partner ownership interest
3.00% 
 
Education Commitment [Member]
 
 
Other Commitments [Line Items]
 
 
Cost method investments
3.5 
3.1 
Limited Partnership Commitment Amount
1.2 
 
Payments to Acquire Other Investments
0.4 
3.1 
Limited partner ownership interest
5.00% 
 
New Markets [Member]
 
 
Other Commitments [Line Items]
 
 
Cost method investments
0.4 
 
Limited Partnership Commitment Amount
1.8 
 
Payments to Acquire Other Investments
$ 0.4 
$ 0 
Limited partner ownership interest
5.00% 
 
Acquisitions (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2016
Hackbright [Member]
Apr. 22, 2016
Hackbright [Member]
May 4, 2016
DevMountain [Member]
Dec. 31, 2016
DevMountain [Member]
Dec. 31, 2017
DevMountain [Member]
Sep. 30, 2016
DevMountain [Member]
Jun. 30, 2016
DevMountain [Member]
May 4, 2016
DevMountain [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
Percentage of shares acquired
 
 
 
100.00% 
 
 
 
 
 
100.00% 
Cash payments to acquire businesses
 
 
$ 18,000 
 
 
$ 15,000 
 
 
 
 
Maximum potential cash payment for contingent consideration
 
 
 
 
 
 
5,000 
 
 
 
Contingent consideration measurement period
 
 
 
 
3 years 
 
 
 
 
 
DevMountain contingent consideration liability
 
 
 
0 
 
 
 
0 
1,500 
0 
Transaction costs
 
$ 1,400 
 
 
 
 
 
 
 
 
Weighted-average useful life of acquired intangibles
2 years 8 months 5 days 
 
 
 
 
 
 
 
 
 
Acquisitions (Schedule of Purchase Price Allocation) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended 0 Months Ended 0 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Apr. 22, 2016
Hackbright [Member]
Apr. 22, 2016
Hackbright [Member]
Apr. 22, 2016
Hackbright [Member]
Customer Relationships [Member]
Apr. 22, 2016
Hackbright [Member]
Course Content [Member]
May 4, 2016
DevMountain [Member]
Sep. 30, 2016
DevMountain [Member]
Jun. 30, 2016
DevMountain [Member]
May 4, 2016
DevMountain [Member]
May 4, 2016
DevMountain [Member]
Customer Relationships [Member]
May 4, 2016
DevMountain [Member]
Course Content [Member]
Apr. 22, 2016
Trade Names [Member]
Hackbright [Member]
May 4, 2016
Trade Names [Member]
DevMountain [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
$ 499 
 
 
 
 
 
$ 336 
 
 
 
 
Other assets
 
 
 
 
407 
 
 
 
 
 
745 
 
 
 
 
Indefinite-lived intangibles
 
 
 
 
 
 
 
 
 
 
 
 
 
4,500 
3,400 
Finite-lived intangibles, net
 
 
 
 
 
800 
900 
 
 
 
 
0 
200 
 
 
Goodwill
13,477 
23,310 
 
 
12,659 
 
 
 
 
 
10,672 
 
 
 
 
Deferred tax liability
 
 
 
 
(988)
 
 
 
 
 
 
 
 
 
 
Deferred Tax Assets
 
 
 
 
 
 
 
 
 
 
12 
 
 
 
 
Liabilities assumed
 
 
 
 
(788)
 
 
 
 
 
(418)
 
 
 
 
Total assets acquired and liabilities assumed, net
 
 
 
 
17,989 
 
 
 
 
 
14,947 
 
 
 
 
Less: Fair value of contingent consideration
 
 
 
 
0 
 
 
 
0 
1,500 
0 
 
 
 
 
Less: Cash acquired
 
 
 
 
(499)
 
 
 
 
 
(336)
 
 
 
 
Cash paid for acquisitions, net of cash acquired
$ 0 
$ 32,101 
$ 0 
$ 17,490 
 
 
 
$ 14,611 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
 
 
Foreign currency translation
$ (3)
$ (6)
 
$ (235)
Unrealized gains (losses) on marketable securities, net of tax
(107)
(87)
 
(37)
Accumulated other comprehensive income (loss)
(110)1
(93)1
 
(272)1
Tax effect of accumulated other comprehensive income
64 
52 
21 
 
Reclassification out of accumulated other comprehensive income to net income
$ 0 
$ 45 
$ 0 
 
Other Employee Benefit Plans (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Employee Stock Purchase Plan [Member]
 
 
 
Other Employee Benefit Plans [Line Items]
 
 
 
Common stock for issuance under the ESPP
500,000 
 
 
Maximum employee subscription rate
10.00% 
 
 
Employee price paid as a percentage of market price
85.00% 
 
 
Other Postretirement Benefits Plan [Member]
 
 
 
Other Employee Benefit Plans [Line Items]
 
 
 
Eligible Age To Participate In Plan
18 
 
 
Employee Stock Purchase Plan Employee Percent Of Compensation Maximum
100.00% 
 
 
Percentage Match by Company On First Contribution Level
100.00% 
 
 
First Contribution Level Percentage
2.00% 
 
 
Percentage Match by Company On Second Contribution Level
50.00% 
 
 
Second Contribution Level Percentage
4.00% 
 
 
Defined Contribution Plan, Cost
$ 5.6 
$ 5.3 
$ 5.0 
Segment Reporting (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Segment Reporting [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
$ 112,032 
$ 107,007 
$ 109,584 
$ 111,788 
$ 111,308 
$ 105,909 
$ 106,725 
$ 105,448 
$ 440,411 
$ 429,390 
$ 416,548 
Operating income (loss)
(1,640)
13,762 
15,371 
17,601 
18,260 
15,348 
18,072 
16,527 
45,094 
68,207 
70,332 
Other income (expense), net
 
 
 
 
 
 
 
 
793 
177 
(133)
Income from continuing operations before income taxes
 
 
 
 
 
 
 
 
45,887 
68,384 
70,199 
Depreciation and amortization
 
 
 
 
 
 
 
 
19,718 
21,343 
21,917 
Impairment of property and equipment
 
 
 
 
 
 
 
 
440 
442 
896 
Share-based compensation
 
 
 
 
 
 
 
 
6,524 
6,422 
6,594 
Goodwill and intangible asset impairment charges
 
 
 
 
 
 
 
 
14,955 
0 
0 
Merger transaction costs
 
 
 
 
 
 
 
 
3,728 
0 
0 
Restructuring charges
 
 
 
 
 
 
 
 
1,282 
0 
0 
Post-Secondary [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
430,665 
424,085 
415,964 
Operating income (loss)
 
 
 
 
 
 
 
 
74,005 
76,935 
73,248 
Depreciation and amortization
 
 
 
 
 
 
 
 
18,509 
20,395 
21,842 
Impairment of property and equipment
 
 
 
 
 
 
 
 
437 
0 
371 
Share-based compensation
 
 
 
 
 
 
 
 
6,512 
6,195 
6,474 
Goodwill and intangible asset impairment charges
 
 
 
 
 
 
 
 
0 
0 
0 
Restructuring charges
 
 
 
 
 
 
 
 
707 
 
 
Job-Ready Skills [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
9,746 
5,305 
584 
Operating income (loss)
 
 
 
 
 
 
 
 
(25,183)
(8,728)
(2,916)
Depreciation and amortization
 
 
 
 
 
 
 
 
1,209 
948 
75 
Impairment of property and equipment
 
 
 
 
 
 
 
 
3 
442 
525 
Share-based compensation
 
 
 
 
 
 
 
 
12 
227 
120 
Goodwill and intangible asset impairment charges
 
 
 
 
 
 
 
 
14,955 
0 
0 
Restructuring charges
 
 
 
 
 
 
 
 
$ 576 
 
 
Quarterly Financial Summary (Unaudited) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Revenues
$ 112,032 
$ 107,007 
$ 109,584 
$ 111,788 
$ 111,308 
$ 105,909 
$ 106,725 
$ 105,448 
$ 440,411 
$ 429,390 
$ 416,548 
Operating income (loss)
(1,640)
13,762 
15,371 
17,601 
18,260 
15,348 
18,072 
16,527 
45,094 
68,207 
70,332 
Income (loss) from continuing operations
(7,270)
8,754 
10,755 
11,171 
11,467 
9,587 
11,074 
10,276 
23,410 
42,404 
43,630 
Income (loss) from discontinued operations, net of tax
0 
0 
0 
95 
(41)
2,963 
(1,379)
(978)
95 
565 
(3,442)
Net income
(7,270)
8,754 
10,755 
11,266 
11,426 
12,550 
9,695 
9,298 
23,505 
42,969 
40,188 
Basic net income per share - continuing operations
$ (0.63)
$ 0.75 
$ 0.92 
$ 0.97 
$ 1.00 
$ 0.83 
$ 0.95 
$ 0.87 
$ 2.01 
$ 3.65 
$ 3.61 
Basic net income (loss) per share - discontinued operations
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
$ (0.01)
$ 0.26 
$ (0.12)
$ (0.08)
$ 0.01 
$ 0.05 
$ (0.28)
Basic net income per common share
$ (0.63)
$ 0.75 
$ 0.92 
$ 0.97 
$ 0.99 
$ 1.09 
$ 0.83 
$ 0.79 
$ 2.02 
$ 3.70 
$ 3.33 
Diluted net income per share - continuing operations
$ (0.63)
$ 0.73 
$ 0.90 
$ 0.94 
$ 0.97 
$ 0.81 
$ 0.93 
$ 0.86 
$ 1.96 
$ 3.58 
$ 3.55 
Diluted net income (loss) per share - discontinued operations
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.25 
$ (0.11)
$ (0.08)
$ 0.01 
$ 0.04 
$ (0.28)
Diluted net income per common share
$ (0.63)
$ 0.73 
$ 0.90 
$ 0.94 
$ 0.97 
$ 1.06 
$ 0.82 
$ 0.78 
$ 1.97 
$ 3.62 
$ 3.27 
Cash dividend declared per common share
$ 0.43 
$ 0.41 
$ 0.41 
$ 0.41 
$ 0.41 
$ 0.39 
$ 0.39 
$ 0.39 
$ 1.66 
$ 1.58 
$ 1.50 
Immaterial Error Correction
 
 
 
 
 
 
 
 
$ 1,500 
 
 
Valuation and Qualifying Accounts (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Valuation and Qualifying Accounts Disclosure [Line Items]
 
 
 
Change in valuation allowance from Tax Reform
$ 2,426 
 
 
Provision for bad debts
12,726 
10,663 
14,275 
Valuation allowance, beginning balance
6,501 
 
 
Valuation allowance, ending balance
4,075 
6,501 
 
Valuation Allowance of Deferred Tax Assets [Member]
 
 
 
Valuation and Qualifying Accounts Disclosure [Line Items]
 
 
 
Change in valuation allowance from Tax Reform
(2,426)
0 
0 
Valuation allowance, beginning balance
6,501 
108 
88 
Additions charged to expense
0 1
0 1
20 1
Additions charged to other accounts
0 2
6,501 2
0 2
Deductions
0 
(108)
0 
Valuation allowance, ending balance
4,075 
6,501 
108 
Allowance for Doubtful Accounts [Member]
 
 
 
Valuation and Qualifying Accounts Disclosure [Line Items]
 
 
 
Beginning balance
6,682 
6,340 
6,258 
Acquisitions
0 
58 
0 
Provision for bad debts
12,726 
10,663 
14,275 
Deductions
(11,429)3
(10,379)3
(14,193)3
Ending balance
$ 7,979 
$ 6,682 
$ 6,340