CAPELLA EDUCATION CO, 10-Q filed on 7/25/2017
Quarterly Report
Document And Entity Information
6 Months Ended
Jun. 30, 2017
Jul. 20, 2017
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Jun. 30, 2017 
 
Document Fiscal Year Focus
2017 
 
Document Fiscal Period Focus
Q2 
 
Trading Symbol
cpla 
 
Entity Registrant Name
CAPELLA EDUCATION CO 
 
Entity Central Index Key
0001104349 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
11,671,913 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Current Assets:
 
 
Cash and cash equivalents
$ 118,023 
$ 93,570 
Marketable securities, current
42,940 
45,458 
Accounts receivable, net of allowance of $6,198 at June 30, 2017 and $6,682 at December 31, 2016
20,676 
20,708 
Prepaid expenses and other current assets
11,308 
17,877 
Total current assets
192,947 
177,613 
Marketable securities, non-current
18,583 
23,320 
Property and equipment, net
35,793 
34,121 
Goodwill
23,331 
23,310 
Intangibles, net
8,827 
9,221 
Deferred income tax assets
1,853 
Other assets
7,821 
7,875 
Total assets
287,302 
277,313 
Current liabilities:
 
 
Accounts payable
2,755 
4,367 
Accrued liabilities
24,300 
31,302 
Dividends payable
4,978 
4,945 
Deferred revenue
14,811 
12,398 
Total current liabilities
46,844 
53,012 
Deferred rent
12,957 
13,693 
Deferred income taxes
577 
Other liabilities
2,087 
2,316 
Total liabilities
62,465 
69,021 
Shareholders' equity:
 
 
Common stock, $0.01 par value: Authorized shares - 100,000, issued and outstanding shares - 11,672 at June 30, 2017 and 11,545 at December 31, 2016
117 
115 
Additional paid-in capital
125,806 
121,581 
Accumulated other comprehensive loss
(3)1
(93)1
Retained earnings
98,917 
86,689 
Total shareholders' equity
224,837 
208,292 
Total liabilities and shareholders' equity
$ 287,302 
$ 277,313 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Current Assets:
 
 
Accounts receivable, allowance
$ 6,198 
$ 6,682 
Shareholders' Equity:
 
 
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, authorized shares
100,000,000 
100,000,000 
Common stock, issued shares
11,672,000 
11,545,000 
Common stock, outstanding shares
11,672,000 
11,545,000 
Consolidated Statements Of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Income Statement [Abstract]
 
 
 
 
Revenues
$ 109,584 
$ 106,725 
$ 221,372 
$ 212,173 
Costs and expenses:
 
 
 
 
Instructional costs and services
48,369 
45,502 
96,781 
90,813 
Marketing and promotional
27,308 
24,922 
54,833 
50,802 
Admissions advisory
7,440 
7,285 
15,103 
14,708 
General and administrative
11,096 
10,944 
21,683 
21,251 
Total costs and expenses
94,213 
88,653 
188,400 
177,574 
Operating income (loss)
15,371 
18,072 
32,972 
34,599 
Other income (expense), net
56 
42 
163 
33 
Income from continuing operations before income taxes
15,427 
18,114 
33,135 
34,632 
Income tax expense
4,672 
7,040 
11,209 
13,282 
Income from continuing operations
10,755 
11,074 
21,926 
21,350 
Income (loss) from discontinued operations, net of tax
(1,379)
95 
(2,357)
Net Income
$ 10,755 
$ 9,695 
$ 22,021 
$ 18,993 
Net income per common share:
 
 
 
 
Basic net income per share - continuing operations
$ 0.92 
$ 0.95 
$ 1.89 
$ 1.82 
Basic net income (loss) per share - discontinued operations
$ 0.00 
$ (0.12)
$ 0.01 
$ (0.20)
Basic net income per common share
$ 0.92 
$ 0.83 
$ 1.90 
$ 1.62 
Diluted net income per share - continuing operations
$ 0.90 
$ 0.93 
$ 1.83 
$ 1.79 
Diluted net income (loss) per share - discontinued operations
$ 0.00 
$ (0.11)
$ 0.01 
$ (0.20)
Diluted net income per common share
$ 0.90 
$ 0.82 
$ 1.84 
$ 1.59 
Weighted average number of common shares outstanding:
 
 
 
 
Weighted average shares outstanding - Basic
11,644 
11,648 
11,602 
11,701 
Weighted average shares outstanding - Diluted
11,992 
11,872 
11,965 
11,912 
Cash dividends declared per common share
$ 0.41 
$ 0.39 
$ 0.82 
$ 0.78 
Consolidated Statements Of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Net Income
$ 10,755 
$ 9,695 
$ 22,021 
$ 18,993 
Other comprehensive income (loss):
 
 
 
 
Foreign currency translation gain (loss)
(41)
88 
Unrealized gains (losses) on available for sale securities, net of tax
37 
87 
95 
Comprehensive income
$ 10,760 
$ 9,691 
$ 22,111 
$ 19,176 
Consolidated Statements Of Cash Flows (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Operating activities
 
 
Net Income
$ 22,021 
$ 18,993 
Income (loss) from discontinued operations, net of tax
95 
(2,357)
Income from continuing operations
21,926 
21,350 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Provision for bad debts
5,225 
4,814 
Depreciation and amortization
10,112 
10,349 
Amortization of investment discount/premium, net
855 
1,113 
Impairment of property and equipment
440 
Loss on disposal of property and equipment
243 
144 
Share-based compensation
3,479 
4,432 
Excess tax benefits from share-based compensation
(348)
Deferred income taxes
2,443 
(352)
Changes in operating assets and liabilities
 
 
Accounts receivable
(5,194)
(5,713)
Prepaid expenses and other current assets
294 
(4,522)
Accounts payable and accrued liabilities
(9,470)
6,492 
Income taxes payable
3,219 
929 
Deferred rent
(735)
(472)
Deferred revenue
2,413 
4,603 
Net cash provided by operating activities - continuing operations
35,250 
42,819 
Net cash provided by (used in) operating activities - discontinued operations
95 
(476)
Net cash provided by operating activities
35,345 
42,343 
Investing activities
 
 
Acquisitions, net of cash acquired
(32,118)
Capital expenditures
(12,116)
(9,977)
Investment in partnership interests
(354)
(3,203)
Purchases of marketable securities
(29,456)
(12,737)
Maturities of marketable securities
35,995 
13,625 
Net cash used in investing activities - continuing operations
(5,931)
(44,410)
Net cash provided by (used in) investing activities - discontinued operations
3,243 
(74)
Net cash used in investing activities
(2,688)
(44,484)
Financing activities
 
 
Excess tax benefits from share-based compensation
348 
Net payments related to share-based award activities
1,273 
1,551 
Payment of dividends
(9,479)
(9,214)
Repurchases of common stock
(15,012)
Net cash used in financing activities
(8,206)
(22,327)
Effect of foreign exchange rates on cash
(9)
Net increase (decrease) in cash and cash equivalents
24,453 
(24,477)
Cash and cash equivalents and cash of business held for sale at beginning of period
93,570 
88,027 
Cash and cash equivalents and cash of business held for sale at end of period
118,023 
63,550 
Less cash of business held for sale at end of period
(2,109)
Cash and cash equivalents at end of period
118,023 
61,441 
Supplemental disclosures of cash flow information
 
 
Income taxes paid
5,562 
12,703 
Non-cash investing and financing activities:
 
 
Purchase of equipment included in accounts payable and accrued liabilities
741 
342 
Dividends declared but not paid during period
$ 4,847 
$ 4,609 
Nature Of Business
Nature of Business
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.
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 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 operates on a fiscal year ending October 31, and prior to the date of sale, 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. The Company 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 13, 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.

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. During the first quarter of 2017, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. Refer to Footnote 3 - Recent Accounting Pronouncements, for discussion of the impact of adoption of this standard.

Unaudited Interim Financial Information
The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these statements include all adjustments (consisting of normal recurring adjustments) considered necessary to present a fair statement of the Company's consolidated results of operations, financial position and cash flows. Operating results for any interim period are not necessarily indicative of the results that may be expected for the full year. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and footnotes included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2016 (2016 Annual Report on Form 10-K).

Use of Estimates
The preparation of the consolidated financial statements in accordance with GAAP requires management to make certain estimates, assumptions, and judgments that affect the reported amounts in the consolidated financial statements and accompanying footnotes. Actual results could differ from those estimates.

Refer to the Company’s “Summary of Significant Accounting Policies” footnote included within the 2016 Annual Report on Form 10-K for a complete summary of the Company’s significant accounting policies.
Recent Accounting Pronouncements
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 does not expect adoption of this guidance to 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 determine 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 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. 2017-01, 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 $0.2 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 six months ended June 30, 2017, the Company recognized $1.6 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.

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 our 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. 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 is evaluating the impact this standard will have on its business practices, financial condition, results of operations, and disclosures.

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’s ongoing process of evaluating the impact this standard will have on its consolidated financial statements includes performing a detailed review of each of its revenue streams and comparing historical accounting policies and practices to the new standard. The Company does not expect the adoption of this guidance to have a material impact on its 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. The Company expects to adopt the provisions of this standard in the first quarter of 2018, and is continuing to evaluate its 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 business practices, 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 percent 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. During the first quarter of 2017, the Company recorded a gain of $0.1 million related to interest on the November 2016 and February 2017 deferred payments.

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 three and six months ended June 30, 2017 and 2016, in thousands, is included in the following table:

 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Revenues
$

 
$
3,425

 
$

 
$
6,695

Costs and expenses:
 
 
 
 
 
 
 
Instructional costs and services

 
1,650

 

 
3,311

Marketing and promotional

 
1,263

 

 
2,555

Admissions advisory

 
240

 

 
513

General and administrative

 
1,968

 

 
2,921

Total costs and expenses

 
5,121

 

 
9,300

Operating loss

 
(1,696
)
 

 
(2,605
)
Gain on sale of Arden

 

 
149

 

Other income (expense), net

 
35

 

 
(34
)
Income (loss) before income taxes

 
(1,661
)
 
149

 
(2,639
)
Income tax expense (benefit)

 
(282
)
 
54

 
(282
)
Income (loss) from discontinued operations, net of tax
$

 
$
(1,379
)
 
$
95

 
$
(2,357
)
Net Income Per Common Share
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, settlement of restricted stock, 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, in thousands, except per share data: 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
10,755

 
$
11,074

 
$
21,926

 
$
21,350

Income (loss) from discontinued operations, net of tax

 
(1,379
)
 
95

 
(2,357
)
Net income
$
10,755

 
$
9,695

 
$
22,021

 
$
18,993

Denominator:
 
 
 
 
 
 
 
Denominator for basic net income per common share— weighted average shares outstanding
11,644

 
11,648

 
11,602

 
11,701

Effect of dilutive stock options, restricted stock, and market stock units
348

 
224

 
363

 
211

Denominator for diluted net income per common share— weighted average shares outstanding
11,992

 
11,872

 
11,965

 
11,912

Basic net income (loss) per common share:
 
 
 
 
 
 
 
Continuing operations
$
0.92

 
$
0.95

 
$
1.89

 
$
1.82

Discontinued operations

 
(0.12
)
 
0.01

 
(0.20
)
Basic net income per common share
$
0.92

 
$
0.83

 
$
1.90

 
$
1.62

Diluted net income (loss) per common share:
 
 
 
 
 
 
 
Continuing operations
$
0.90

 
$
0.93

 
$
1.83

 
$
1.79

Discontinued operations

 
(0.11
)
 
0.01

 
(0.20
)
Diluted net income per common share
$
0.90

 
$
0.82

 
$
1.84

 
$
1.59



Options to purchase common shares were outstanding, but not included in the computation of diluted net income per common share on both a continuing and discontinued basis, because their effect would be anti-dilutive. The following table summarizes these securities, in thousands:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Anti-dilutive securities excluded from diluted earnings per share calculation, for both continuing and discontinued operations
121

 
415

 
106

 
451

Marketable Securities
Marketable Securities
Marketable Securities

The following is a summary of available-for-sale securities, in thousands: 
 
As of June 30, 2017
 
Amortized Cost
 
Gross Unrealized
Gains
 
Gross Unrealized (Losses)
 
Estimated Fair Value
Tax-exempt municipal securities
$
42,627

 
$
16

 
$
(30
)
 
$
42,613

Corporate debt securities
6,966

 
14

 

 
6,980

Variable rate demand notes
11,930

 

 

 
11,930

Total
$
61,523

 
$
30

 
$
(30
)
 
$
61,523

 
 
 
 
 
 
 
 
 
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 June 30, 2017 and December 31, 2016 were caused by changes in market values primarily due to interest rate changes. All of the Company's securities which were in an unrealized loss position as of June 30, 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 at maturity. No other-than-temporary impairment charges were recorded during the three months ended June 30, 2017 and 2016.
The following table summarizes the maturities of the Company’s marketable securities, in thousands: 
 
As of June 30,
2017
 
As of December 31, 2016
Due within one year
$
42,940

 
$
45,458

Due after one year through five years
18,583

 
23,320

Total
$
61,523

 
$
68,778



Amounts due within one year in the table above included $11.9 million of variable rate demand notes, with contractual maturities ranging from 9 years to 31 years as of June 30, 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 summarizes the proceeds from the maturities of available-for-sale securities, in thousands: 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Maturities of marketable securities
$
25,455

 
$
3,065

 
$
35,995

 
$
13,625

Total
$
25,455

 
$
3,065

 
$
35,995

 
$
13,625



The Company did not record any gross realized gains or gross realized losses in net income during the three and six months ended June 30, 2017 and 2016. Additionally, there were no proceeds from sales of marketable securities prior to maturity during the three and six months ended June 30, 2017 and 2016.
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 June 30, 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
 
$
28,976

 
$
28,976

 
$

 
$

Money market
 
89,047

 
89,047

 

 

Marketable securities:
 
 
 
 
 
 
 
 
Tax-exempt municipal securities
 
42,613

 

 
42,613

 

Corporate debt securities
 
6,980

 

 
6,980

 

Variable rate demand notes
 
11,930

 

 
11,930

 

Total assets at fair value on a recurring basis
 
$
179,546

 
$
118,023

 
$
61,523

 
$


 
 
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 money markets 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 observable inputs from active markets. 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 three and six months ended June 30, 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. The fair value of the contingent consideration is 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. No payments were made related to the 2016 performance period. 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:
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2017
 
2016
 
2017
 
2016
Balance, beginning of period
 
$

 
$

 
$

 
$

Initial fair value of contingent consideration
 

 
1,500

 

 
1,500

Balance, end of period
 
$

 
$
1,500

 
$

 
$
1,500

Accrued Liabilities
Accrued Liabilities
Accrued Liabilities

Accrued liabilities consist of the following, in thousands: 
 
As of June 30, 2017
 
As of December 31, 2016
Accrued compensation and benefits
$
6,745

 
$
12,976

Accrued instructional
3,686

 
3,811

Accrued vacation
2,358

 
1,111

Accrued invoices
9,349

 
11,252

Other(1)
2,162

 
2,152

Total
$
24,300

 
$
31,302


(1) "Other" 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 include a reduction in the area of leased space occupied by the Company of approximately 64,000 square feet and provide for lease incentives of approximately $13.6 million. The lease incentives, which were paid in cash to the Company by the lessor upon closing, 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. The agreement allows 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 June 30, 2017, in thousands:
 
2017
$
3,873

2018
6,712

2019
5,668

2020
5,233

2021
4,681

2022 and thereafter
32,879

Total
$
59,046



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 expense 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.

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 the London Interbank Offered Rate (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 $0.1 million and $0.2 million in other income, net, for the three months ended June 30, 2017 and 2016, and the six months ended June 30, 2017 and 2016, 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 the Facility are included in other income, 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 June 30, 2017 and December 31, 2016, there were no borrowings under the 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. While the outcome of these matters is uncertain, the Company does not believe there are any significant matters as of June 30, 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 June 30, 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
305,231

Residual authorization
$
30,431



The following table summarizes shares repurchased, in thousands:
 
Six Months Ended June 30,
 
2017
 
2016
Shares repurchased

 
308

Total consideration, excluding commissions
$

 
$
15,000



As of June 30, 2017, the Company had purchased an aggregate of 6.6 million shares under the program’s outstanding authorizations at an average price per share of $46.12 totaling $305.2 million, excluding commissions.

Dividends
During the six months ended June 30, 2017, the Company declared the following cash dividends, 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



Of the total dividend amount declared in the current quarter, $4.8 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 June 30, 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 June 30, 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

The table below reflects the Company’s share-based compensation expense recognized in the consolidated statements of income, in thousands:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Instructional costs and services
$
240

 
$
163

 
$
428

 
$
371

Marketing and promotional
257

 
206

 
468

 
389

Admissions advisory
12

 
14

 
25

 
27

General and administrative
1,696

 
1,236

 
2,558

 
3,645

Share-based compensation expense included in operating income
2,205

 
1,619

 
3,479

 
4,432

Tax benefit from share-based compensation expense
864

 
611

 
1,350

 
1,674

Share-based compensation expense, net of tax
$
1,341

 
$
1,008

 
$
2,129

 
$
2,758

Other Investments
Other Investments
Other Investments

At June 30, 2017, the Company held a $3.3 million investment in a limited partnership that invests in innovative companies in the health care field, with a commitment to invest up to an additional $1.3 million through February 2024. At December 31, 2016, the Company's investment in the limited partnership was $2.9 million. During the six months ended June 30, 2017 and 2016, the Company made investments totaling $0.4 million and $0.1 million, respectively, in the partnership. The Company's investment comprises less than 3% 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 June 30, 2017 and December 31, 2016.

At June 30, 2017, the Company held a $3.1 million investment in a limited partnership that invests in education and education-related technology companies, with a commitment to invest up to an additional $1.7 million through December 2025. At December 31, 2016, the Company's investment in the limited partnership was $3.1 million. During the six months ended June 30, 2017, there were no investments in the limited partnership, and during the six months ended June 30, 2016, the Company made investments totaling $3.1 million in the partnership. The Company's investment comprises less than 5% of the total partnership interest, and the Company designated the investment as a cost method investment and classified it within other assets in the consolidated balance sheets as of June 30, 2017 and December 31, 2016

In June 2017, the Company committed to invest up to $2.3 million in a limited partnership that invests in education and education-related technology companies through September 2027. As of June 30, 2017, the Company had made no investments in the 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 six months ended June 30, 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 six months ended June 30, 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 the Consolidated Statements of Income for the three and six months ended June 30, 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



The Company 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 is 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 enhanced 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 will be evaluated for impairment (along with the indefinite-lived trade names intangible assets) as of the first day of the fourth quarter 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 Loss
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss

The following table summarizes the components of accumulated other comprehensive loss, in thousands:
 
Foreign Currency Translation Loss
 
Unrealized Gain (Loss) on Marketable Securities
 
Accumulated Other Comprehensive Loss(1)
Beginning balance, December 31, 2016
$
(6
)
 
$
(87
)
 
$
(93
)
Other comprehensive income (loss)
3

 
87

 
90

Ending balance, June 30, 2017
$
(3
)
 
$

 
$
(3
)

(1)
Accumulated other comprehensive loss is presented net of tax of $52 thousand as of December 31, 2016.

There were no reclassifications out of accumulated other comprehensive loss to net income for the three and six months ended
June 30, 2017 and 2016.
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.

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 three and six months ended June 30, 2017 and 2016 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.

 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Revenues
 
 
 
 
 
 
 
     Post-Secondary
$
106,974

 
$
105,789

 
$
216,455

 
$
211,216

     Job-Ready Skills
2,610

 
936

 
4,917

 
957

Consolidated Revenues
$
109,584

 
$
106,725

 
$
221,372

 
$
212,173

Operating income (loss)
 
 
 
 
 
 
 
     Post-Secondary
$
17,754

 
$
21,566

 
$
38,005

 
$
39,285

     Job-Ready Skills
(2,383
)
 
(3,494
)
 
(5,033
)
 
(4,686
)
Consolidated operating income
15,371

 
18,072

 
32,972

 
34,599

Other income, net
56

 
42

 
163

 
33

Income from continuing operations before income taxes
$
15,427

 
$
18,114

 
$
33,135

 
$
34,632

Regulatory Supervision And Oversight
Regulatory Supervision And Oversight
Regulatory Supervision and Oversight

Political and budgetary concerns can significantly affect the Title IV Programs. Congress reauthorizes the Higher Education Act (HEA) and other laws governing Title IV Programs approximately every five to eight years. The last reauthorization of the HEA was completed in August 2008. Additionally, Congress reviews and determines appropriations for Title IV programs on an annual basis through the budget and appropriations processes. As of June 30, 2017, Title IV programs in which the University's learners participate are operative and sufficiently funded.
Summary Of Significant Accounting Policies (Policy)
Consolidation
The consolidated financial statements include the accounts of the Company, the University, Sophia, CLS, Hackbright, DevMountain, and Arden University 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 operates on a fiscal year ending October 31, and prior to the date of sale, 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. The Company 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 13, 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.
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. During the first quarter of 2017, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. Refer to Footnote 3 - Recent Accounting Pronouncements, for discussion of the impact of adoption of this standard.
Unaudited Interim Financial Information
The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these statements include all adjustments (consisting of normal recurring adjustments) considered necessary to present a fair statement of the Company's consolidated results of operations, financial position and cash flows. Operating results for any interim period are not necessarily indicative of the results that may be expected for the full year. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and footnotes included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2016 (2016 Annual Report on Form 10-K).
Use of Estimates
The preparation of the consolidated financial statements in accordance with GAAP requires management to make certain estimates, assumptions, and judgments that affect the reported amounts in the consolidated financial statements and accompanying footnotes. Actual results could differ from those estimates.
Discontinued Operations (Tables)
Schedule of Disposal Groups, Including Discontinued Operations, Balance Sheet and 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 three and six months ended June 30, 2017 and 2016, in thousands, is included in the following table:

 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Revenues
$

 
$
3,425

 
$

 
$
6,695

Costs and expenses:
 
 
 
 
 
 
 
Instructional costs and services

 
1,650

 

 
3,311

Marketing and promotional

 
1,263

 

 
2,555

Admissions advisory

 
240

 

 
513

General and administrative

 
1,968

 

 
2,921

Total costs and expenses

 
5,121

 

 
9,300

Operating loss

 
(1,696
)
 

 
(2,605
)
Gain on sale of Arden

 

 
149

 

Other income (expense), net

 
35

 

 
(34
)
Income (loss) before income taxes

 
(1,661
)
 
149

 
(2,639
)
Income tax expense (benefit)

 
(282
)
 
54

 
(282
)
Income (loss) from discontinued operations, net of tax
$

 
$
(1,379
)
 
$
95

 
$
(2,357
)
Net Income Per Common Share (Tables)
The following table presents a reconciliation of the numerator and denominator in the basic and diluted net income per common share calculation, in thousands, except per share data: 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
10,755

 
$
11,074

 
$
21,926

 
$
21,350

Income (loss) from discontinued operations, net of tax

 
(1,379
)
 
95

 
(2,357
)
Net income
$
10,755

 
$
9,695

 
$
22,021

 
$
18,993

Denominator:
 
 
 
 
 
 
 
Denominator for basic net income per common share— weighted average shares outstanding
11,644

 
11,648

 
11,602

 
11,701

Effect of dilutive stock options, restricted stock, and market stock units
348

 
224

 
363

 
211

Denominator for diluted net income per common share— weighted average shares outstanding
11,992

 
11,872

 
11,965

 
11,912

Basic net income (loss) per common share:
 
 
 
 
 
 
 
Continuing operations
$
0.92

 
$
0.95

 
$
1.89

 
$
1.82

Discontinued operations

 
(0.12
)
 
0.01

 
(0.20
)
Basic net income per common share
$
0.92

 
$
0.83

 
$
1.90

 
$
1.62

Diluted net income (loss) per common share:
 
 
 
 
 
 
 
Continuing operations
$
0.90

 
$
0.93

 
$
1.83

 
$
1.79

Discontinued operations

 
(0.11
)
 
0.01

 
(0.20
)
Diluted net income per common share
$
0.90

 
$
0.82

 
$
1.84

 
$
1.59

Options to purchase common shares were outstanding, but not included in the computation of diluted net income per common share on both a continuing and discontinued basis, because their effect would be anti-dilutive. The following table summarizes these securities, in thousands:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Anti-dilutive securities excluded from diluted earnings per share calculation, for both continuing and discontinued operations
121

 
415

 
106

 
451

Marketable Securities (Tables)
The following is a summary of available-for-sale securities, in thousands: 
 
As of June 30, 2017
 
Amortized Cost
 
Gross Unrealized
Gains
 
Gross Unrealized (Losses)
 
Estimated Fair Value
Tax-exempt municipal securities
$
42,627

 
$
16

 
$
(30
)
 
$
42,613

Corporate debt securities
6,966

 
14

 

 
6,980

Variable rate demand notes
11,930

 

 

 
11,930

Total
$
61,523

 
$
30

 
$
(30
)
 
$
61,523

 
 
 
 
 
 
 
 
 
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 following table summarizes the maturities of the Company’s marketable securities, in thousands: 
 
As of June 30,
2017
 
As of December 31, 2016
Due within one year
$
42,940

 
$
45,458

Due after one year through five years
18,583

 
23,320

Total
$
61,523

 
$
68,778

The following table summarizes the proceeds from the maturities of available-for-sale securities, in thousands: 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Maturities of marketable securities
$
25,455

 
$
3,065

 
$
35,995

 
$
13,625

Total
$
25,455

 
$
3,065

 
$
35,995

 
$
13,625

Fair Value Measurements (Tables)
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 June 30, 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
 
$
28,976

 
$
28,976

 
$

 
$

Money market
 
89,047

 
89,047

 

 

Marketable securities:
 
 
 
 
 
 
 
 
Tax-exempt municipal securities
 
42,613

 

 
42,613

 

Corporate debt securities
 
6,980

 

 
6,980

 

Variable rate demand notes
 
11,930

 

 
11,930

 

Total assets at fair value on a recurring basis
 
$
179,546

 
$
118,023

 
$
61,523

 
$


 
 
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 following table presents a reconciliation of the fair value of the DevMountain contingent consideration, in thousands:
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2017
 
2016
 
2017
 
2016
Balance, beginning of period
 
$

 
$

 
$

 
$

Initial fair value of contingent consideration
 

 
1,500

 

 
1,500

Balance, end of period
 
$

 
$
1,500

 
$

 
$
1,500

Accrued Liabilities (Tables)
Schedule Of Accrued Liabilities
Accrued liabilities consist of the following, in thousands: 
 
As of June 30, 2017
 
As of December 31, 2016
Accrued compensation and benefits
$
6,745

 
$
12,976

Accrued instructional
3,686

 
3,811

Accrued vacation
2,358

 
1,111

Accrued invoices
9,349

 
11,252

Other(1)
2,162

 
2,152

Total
$
24,300

 
$
31,302


(1) "Other" 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 June 30, 2017, in thousands:
 
2017
$
3,873

2018
6,712

2019
5,668

2020
5,233

2021
4,681

2022 and thereafter
32,879

Total
$
59,046



Share Repurchase Program and Dividends (Tables)
A summary of the Company’s comprehensive share repurchase activity from the program's commencement through June 30, 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
305,231

Residual authorization
$
30,431

The following table summarizes shares repurchased, in thousands:
 
Six Months Ended June 30,
 
2017
 
2016
Shares repurchased

 
308

Total consideration, excluding commissions
$

 
$
15,000

During the six months ended June 30, 2017, the Company declared the following cash dividends, 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

Share-Based Compensation (Tables)
Summary of Share-Based Compensation Expense
The table below reflects the Company’s share-based compensation expense recognized in the consolidated statements of income, in thousands:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Instructional costs and services
$
240

 
$
163

 
$
428

 
$
371

Marketing and promotional
257

 
206

 
468

 
389

Admissions advisory
12

 
14

 
25

 
27

General and administrative
1,696

 
1,236

 
2,558

 
3,645

Share-based compensation expense included in operating income
2,205

 
1,619

 
3,479

 
4,432

Tax benefit from share-based compensation expense
864

 
611

 
1,350

 
1,674

Share-based compensation expense, net of tax
$
1,341

 
$
1,008

 
$
2,129

 
$
2,758

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 Loss (Tables)
Schedule of Accumulated Other Comprehensive Loss
The following table summarizes the components of accumulated other comprehensive loss, in thousands:
 
Foreign Currency Translation Loss
 
Unrealized Gain (Loss) on Marketable Securities
 
Accumulated Other Comprehensive Loss(1)
Beginning balance, December 31, 2016
$
(6
)
 
$
(87
)
 
$
(93
)
Other comprehensive income (loss)
3

 
87

 
90

Ending balance, June 30, 2017
$
(3
)
 
$

 
$
(3
)

(1)
Accumulated other comprehensive loss is presented net of tax of $52 thousand as of December 31, 2016
Segment Reporting (Tables)
Summary of Financial Information by Reportable Segment
A summary of financial information by reportable segment (in thousands) for the three and six months ended June 30, 2017 and 2016 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.

 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Revenues
 
 
 
 
 
 
 
     Post-Secondary
$
106,974

 
$
105,789

 
$
216,455

 
$
211,216

     Job-Ready Skills
2,610

 
936

 
4,917

 
957

Consolidated Revenues
$
109,584

 
$
106,725

 
$
221,372

 
$
212,173

Operating income (loss)
 
 
 
 
 
 
 
     Post-Secondary
$
17,754

 
$
21,566

 
$
38,005

 
$
39,285

     Job-Ready Skills
(2,383
)
 
(3,494
)
 
(5,033
)
 
(4,686
)
Consolidated operating income
15,371

 
18,072

 
32,972

 
34,599

Other income, net
56

 
42

 
163

 
33

Income from continuing operations before income taxes
$
15,427

 
$
18,114

 
$
33,135

 
$
34,632

Nature Of Business Nature of Business (Details)
0 Months Ended
Aug. 18, 2016
Sale of Arden [Abstract]
 
Disposal Date
Aug. 18, 2016 
Percentage of shares sold
100.00% 
Recent Accounting Pronouncements Narrative (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
 
Incremental tax benefit (deficiency) recognized in income tax expense
$ 1.6 
Retained Earnings [Member]
 
Retained Earnings Adjustments [Line Items]
 
Net cumulative reduction of retained earnings from change in forfeiture policy
$ (0.2)
Discontinued Operations (Details)
In Thousands, unless otherwise specified
0 Months Ended 3 Months Ended 6 Months Ended 0 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Aug. 18, 2016
Jun. 30, 2017
USD ($)
Jun. 30, 2016
USD ($)
Jun. 30, 2017
USD ($)
Jun. 30, 2016
USD ($)
Aug. 18, 2016
Arden University [Member]
Jun. 30, 2017
Arden University [Member]
USD ($)
Jun. 30, 2016
Arden University [Member]
USD ($)
Jun. 30, 2017
Arden University [Member]
USD ($)
Jun. 30, 2016
Arden University [Member]
USD ($)
Dec. 31, 2016
United Kingdom, Pounds
Arden University [Member]
GBP (£)
Sep. 30, 2016
United Kingdom, Pounds
Arden University [Member]
GBP (£)
Jun. 30, 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 ($)
Sep. 30, 2016
United States of America, Dollars
Arden University [Member]
USD ($)
Jun. 30, 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% 
 
 
 
 
 
 
 
 
 
 
 
Cash proceeds from sale of Arden
 
 
 
 
 
 
 
 
 
 
£ 1,000 
£ 11,500 
£ 2,500 
 
$ 1,300 
$ 13,900 
$ 3,200 
Consideration for Arden divestiture
 
 
 
 
 
 
 
 
 
 
 
 
 
15,000 
 
 
 
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
3,425 
6,695 
 
 
 
 
 
 
 
Instructional costs and services
 
 
 
 
 
 
1,650 
3,311 
 
 
 
 
 
 
 
Marketing and promotional
 
 
 
 
 
 
1,263 
2,555 
 
 
 
 
 
 
 
Admissions advisory
 
 
 
 
 
 
240 
513 
 
 
 
 
 
 
 
General and administrative
 
 
 
 
 
 
1,968 
2,921 
 
 
 
 
 
 
 
Total costs and expenses
 
 
 
 
 
 
5,121 
9,300 
 
 
 
 
 
 
 
Operating loss
 
 
 
 
 
 
(1,696)
(2,605)
 
 
 
 
 
 
 
Gain on sale of Arden
 
 
 
 
 
 
149 
 
 
 
 
 
 
 
Other income (expense), net
 
 
 
 
 
 
35 
(34)
 
 
 
 
 
 
 
Gain (loss) before income taxes
 
 
 
 
 
 
(1,661)
149 
(2,639)
 
 
 
 
 
 
 
Income tax expense (benefit)
 
 
 
 
 
 
(282)
54 
(282)
 
 
 
 
 
 
 
Income (loss) from discontinued operations, net of tax
 
$ 0 
$ (1,379)
$ 95 
$ (2,357)
 
$ 0 
$ (1,379)
$ 95 
$ (2,357)
 
 
 
 
 
 
 
Net Income Per Common Share (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Earnings Per Share [Abstract]
 
 
 
 
Income from continuing operations
$ 10,755 
$ 11,074 
$ 21,926 
$ 21,350 
Income (loss) from discontinued operations, net of tax
(1,379)
95 
(2,357)
Net Income
$ 10,755 
$ 9,695 
$ 22,021 
$ 18,993 
Weighted average shares outstanding - Basic
11,644 
11,648 
11,602 
11,701 
Effect of dilutive stock options, restricted stock, and market stock units
348 
224 
363 
211 
Weighted average shares outstanding - Diluted
11,992 
11,872 
11,965 
11,912 
Basic net income per share - continuing operations
$ 0.92 
$ 0.95 
$ 1.89 
$ 1.82 
Basic net income (loss) per share - discontinued operations
$ 0.00 
$ (0.12)
$ 0.01 
$ (0.20)
Basic net income per common share
$ 0.92 
$ 0.83 
$ 1.90 
$ 1.62 
Diluted net income per share - continuing operations
$ 0.90 
$ 0.93 
$ 1.83 
$ 1.79 
Diluted net income (loss) per share - discontinued operations
$ 0.00 
$ (0.11)
$ 0.01 
$ (0.20)
Diluted net income per common share
$ 0.90 
$ 0.82 
$ 1.84 
$ 1.59 
Anti-dilutive securities excluded from diluted earnings per share calculation
121 
415 
106 
451 
Marketable Securities (Summary Of Available-For-Sale Securities) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized cost
$ 61,523 
$ 68,917 
Gross unrealized gains
30 
15 
Gross unrealized (losses)
(30)
(154)
Marketable Securities
61,523 
68,778 
Tax-Exempt Municipal Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized cost
42,627 
63,113 
Gross unrealized gains
16 
Gross unrealized (losses)
(30)
(152)
Marketable Securities
42,613 
62,963 
Corporate Debt Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized cost
6,966 
5,804 
Gross unrealized gains
14 
13 
Gross unrealized (losses)
(2)
Marketable Securities
6,980 
5,815 
Variable Rate Demand Obligation [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized cost
11,930 
 
Gross unrealized gains
 
Gross unrealized (losses)
 
Marketable Securities
$ 11,930 
 
Marketable Securities (Summary Of Remaining Contractual Maturities Of Marketable Securities) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Marketable Securities [Abstract]
 
 
Due within one year
$ 42,940 
$ 45,458 
Due after one year through five years
18,583 
23,320 
Marketable Securities
$ 61,523 
$ 68,778 
Marketable Securities (Proceeds From The Sale And Maturities Of Available-For-Sale Securities) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Marketable Securities [Abstract]
 
 
 
 
Maturities of marketable securities
$ 25,455 
$ 3,065 
$ 35,995 
$ 13,625 
Total
$ 25,455 
$ 3,065 
$ 35,995 
$ 13,625 
Marketable Securities (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
 
Amortized cost
$ 61,523 
 
$ 61,523 
 
$ 68,917 
Other-than-temporary impairment charges
 
Gross realized gains
 
Gross realized losses
 
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions
 
 
 
Proceeds from sales of marketable securities
 
Minimum [Member]
 
 
 
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
 
Contractual Maturity Period of VRDNs
 
 
9 years 0 months 0 days 
 
 
Effective Maturity Period of VRDNs
 
 
0 years 0 months 1 day 
 
 
Maximum [Member]
 
 
 
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
 
Contractual Maturity Period of VRDNs
 
 
31 years 0 months 0 days 
 
 
Effective Maturity Period of VRDNs
 
 
0 years 0 months 7 days 
 
 
Variable Rate Demand Obligation [Member]
 
 
 
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
 
Amortized cost
$ 11,930 
 
$ 11,930 
 
 
Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Cash [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Cash [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Money Market Funds [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Money Market Funds [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Tax-Exempt Municipal Securities [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Tax-Exempt Municipal Securities [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Corporate Debt Securities [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Corporate Debt Securities [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Variable Rate Demand Obligation [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Variable Rate Demand Obligation [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Cash [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Cash [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Money Market Funds [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Money Market Funds [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Tax-Exempt Municipal Securities [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Tax-Exempt Municipal Securities [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Corporate Debt Securities [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Corporate Debt Securities [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Variable Rate Demand Obligation [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Variable Rate Demand Obligation [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Cash [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Cash [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Money Market Funds [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Money Market Funds [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Tax-Exempt Municipal Securities [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Tax-Exempt Municipal Securities [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Corporate Debt Securities [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Corporate Debt Securities [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Variable Rate Demand Obligation [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Variable Rate Demand Obligation [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
Cash [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
Cash [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
Money Market Funds [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
Money Market Funds [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
Tax-Exempt Municipal Securities [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
Tax-Exempt Municipal Securities [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
Corporate Debt Securities [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
Corporate Debt Securities [Member]
Jun. 30, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
Variable Rate Demand Obligation [Member]
Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
Variable Rate Demand Obligation [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents, Fair Value Disclosure
 
 
 
 
$ 28,976 
$ 24,658 
$ 89,047 
$ 68,237 
 
 
 
 
 
$ 675 
 
 
$ 28,976 
$ 24,658 
$ 89,047 
$ 68,237 
 
 
 
 
 
$ 0 
 
 
$ 0 
$ 0 
$ 0 
$ 0 
 
 
 
 
 
$ 675 
 
 
$ 0 
$ 0 
$ 0 
$ 0 
 
 
 
 
 
$ 0 
Available-for-sale Securities, Fair Value Disclosure
 
 
 
 
 
 
 
 
42,613 
62,963 
6,980 
5,815 
11,930 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
42,613 
62,963 
6,980 
5,815 
11,930 
 
 
 
 
 
 
 
 
Assets, Fair Value Disclosure
 
 
179,546 
162,348 
 
 
 
 
 
 
 
 
 
 
118,023 
92,895 
 
 
 
 
 
 
 
 
 
 
61,523 
69,453 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended 0 Months Ended
Dec. 31, 2016
May 4, 2016
Fair Value, Inputs, Level 3 [Member]
DevMountain Contingent Consideration [Member]
Jun. 30, 2017
Fair Value, Inputs, Level 3 [Member]
DevMountain Contingent Consideration [Member]
Mar. 31, 2017
Fair Value, Inputs, Level 3 [Member]
DevMountain Contingent Consideration [Member]
Dec. 31, 2016
Fair Value, Inputs, Level 3 [Member]
DevMountain Contingent Consideration [Member]
Sep. 30, 2016
Fair Value, Inputs, Level 3 [Member]
DevMountain Contingent Consideration [Member]
Jun. 30, 2016
Fair Value, Inputs, Level 3 [Member]
DevMountain Contingent Consideration [Member]
May 4, 2016
Fair Value, Inputs, Level 3 [Member]
DevMountain Contingent Consideration [Member]
Mar. 31, 2016
Fair Value, Inputs, Level 3 [Member]
DevMountain Contingent Consideration [Member]
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 
 
 
Fair value of contingent consideration
 
 
1,500 
 
Contingent consideration measurement period
 
3 years 
 
 
 
 
 
 
 
 
Payment of contingent consideration
$ 0 
 
 
 
 
 
 
 
 
 
Fair Value Measurements (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
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Sep. 30, 2016
DevMountain Contingent Consideration [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
 
Contingent consideration balance, beginning of period
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
Initial fair value of contingent consideration
1,500 
1,500 
 
Contingent consideration balance, end of period
$ 0 
$ 1,500 
$ 0 
$ 1,500 
$ 0 
Accrued Liabilities (Schedule of Accrued Liabilities) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Accrued Liabilities [Abstract]
 
 
Accrued compensation and benefits
$ 6,745 
$ 12,976 
Accrued instructional
3,686 
3,811 
Accrued vacation
2,358 
1,111 
Accrued invoices
9,349 
11,252 
Other Accrued Liabilities, Current
2,162 1
2,152 1
Accrued Liabilities
$ 24,300 
$ 31,302 
Commitments And Contingencies (Tables) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
 
2017
$ 3,873 
2018
6,712 
2019
5,668 
2020
5,233 
2021
4,681 
2022 and thereafter
32,879 
Total
$ 59,046 
Commitments And Contingencies (Narrative) (Details) (USD $)
0 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Aug. 5, 2016
Dec. 18, 2015
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2015
Aug. 5, 2016
sqft
Commitments and Contingencies Disclosure [Abstract]
 
 
 
 
 
 
 
 
Lease Expiration Date
 
 
 
 
Oct. 31, 2028 
 
 
 
ReductioninSquareFootageofLeasedProperty
 
 
 
 
 
 
 
64,000 
Lease Incentive
 
 
 
 
 
 
 
$ 13,600,000 
Number Of Lease Extension Terms
 
 
 
 
 
 
 
Lease Extension Term
 
 
 
 
5 years 0 months 0 days 
 
 
 
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
Lease Inception Date
Aug. 05, 2016 
 
 
 
 
 
 
 
Line of Credit Facility, Initiation Date
 
Dec. 18, 2015 
 
 
 
 
 
 
Line of credit
 
 
100,000,000 
 
100,000,000 
 
 
 
Option for additional borrowing
 
 
 
 
50,000,000 
 
 
 
Line of credit facility, expiration date
 
 
 
 
Dec. 18, 2020 
 
 
 
Line of credit facility, commitment fee expense
 
 
100,000 
100,000 
200,000 
200,000 
 
 
Capitalized transaction costs related to credit facility
 
 
 
 
 
 
800,000 
 
Amortization period of transaction costs, years
 
 
 
 
 
 
 
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% 
 
 
 
Base Rate [Member] |
London Interbank Offered Rate (LIBOR) [Member]
 
 
 
 
 
 
 
 
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
Line of credit facility, interest rate
 
 
 
 
1.00% 
 
 
 
Base Rate [Member] |
London Interbank Offered Rate (LIBOR) [Member] |
Minimum [Member]
 
 
 
 
 
 
 
 
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
Line of credit facility, interest rate
 
 
 
 
0.75% 
 
 
 
Base Rate [Member] |
London Interbank Offered Rate (LIBOR) [Member] |
Maximum [Member]
 
 
 
 
 
 
 
 
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
Line of credit facility, interest rate
 
 
 
 
1.25% 
 
 
 
Base Rate [Member] |
Federal Funds Rate [Member]
 
 
 
 
 
 
 
 
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
Line of credit facility, interest rate
 
 
 
 
0.50% 
 
 
 
Share Repurchase Program and Dividends (Tables) (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Share Repurchase Program Authorizations [Line Items]
 
 
Stock repurchase program, authorized amount
$ 335,662 
 
Total value of shares repurchased
305,231 
 
Residual authorization
30,431 
 
Repurchase of common stock, shares
308 
Value of stock repurchased during period, excluding commissions
15,000 
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 $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Mar. 31, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Stockholders' Equity Note [Abstract]
 
 
 
 
 
Number of aggregate shares repurchased under programs
6.6 
 
 
6.6 
 
Shares repurchased, average price per share
 
 
 
$ 46.12 
 
Aggregate consideration for shares repurchased
 
 
 
$ 305.2 
 
Declaration date
May 02, 2017 
Feb. 22, 2017 
 
 
 
Cash dividends declared per common share
$ 0.41 
$ 0.41 
$ 0.39 
$ 0.82 
$ 0.78 
Dividend declaration, current payable
$ 4.8 
 
 
$ 4.8 
 
Share Repurchase Program and Dividends Schedule of Cash Dividends Declared (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Mar. 31, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Stockholders' Equity Note [Abstract]
 
 
 
 
 
Declaration date
May 02, 2017 
Feb. 22, 2017 
 
 
 
Record date
May 24, 2017 
Mar. 10, 2017 
 
 
 
Payment date
Jul. 14, 2017 
Apr. 13, 2017 
 
 
 
Cash dividends declared per common share
$ 0.41 
$ 0.41 
$ 0.39 
$ 0.82 
$ 0.78 
Total dividend declaration amount
$ 4,847 
$ 4,813 
 
 
 
Share-Based Compensation (Tables) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
 
 
Share-based compensation expense included in operating income
$ 2,205 
$ 1,619 
$ 3,479 
$ 4,432 
Tax benefit from share-based compensation expense
864 
611 
1,350 
1,674 
Share-based compensation expense, net of tax
1,341 
1,008 
2,129 
2,758 
Instructional costs and services [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
 
 
Share-based compensation expense included in operating income
240 
163 
428 
371 
Marketing and promotional [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
 
 
Share-based compensation expense included in operating income
257 
206 
468 
389 
Admissions advisory [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
 
 
Share-based compensation expense included in operating income
12 
14 
25 
27 
General and administrative [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
 
 
Share-based compensation expense included in operating income
$ 1,696 
$ 1,236 
$ 2,558 
$ 3,645 
Other Investments (Details) (USD $)
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2016
Other Commitments [Line Items]
 
 
 
Impairment of other investments
$ 0 
$ 0 
 
Health Care Commitment [Member]
 
 
 
Other Commitments [Line Items]
 
 
 
Cost Method Investments
3,300,000 
 
2,900,000 
Limited partnership remaining commitment amount
1,300,000 
 
 
Payments to acquire other investments
400,000 
100,000 
 
Limited Partner Ownership Interest
3.00% 
 
 
Education Commitment [Member]
 
 
 
Other Commitments [Line Items]
 
 
 
Cost Method Investments
3,100,000 
 
3,100,000 
Limited partnership remaining commitment amount
1,700,000 
 
 
Payments to acquire other investments
3,100,000 
 
Limited Partner Ownership Interest
5.00% 
 
 
New Markets [Member]
 
 
 
Other Commitments [Line Items]
 
 
 
Limited partnership remaining commitment amount
2,300,000 
 
 
Payments to acquire other investments
$ 0 
 
 
Acquisitions (Narrative) (Details) (USD $)
6 Months Ended 0 Months Ended 0 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Apr. 22, 2016
Hackbright [Member]
Apr. 22, 2016
Hackbright [Member]
May 4, 2016
DevMountain [Member]
Jun. 30, 2017
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
 
 
$ 18,000,000 
 
$ 15,000,000 
 
 
 
Maximum potential cash payment for contingent consideration
 
 
 
 
 
 
 
5,000,000 
Contingent consideration measurement period
 
 
 
 
3 years 
 
 
 
DevMountain contingent consideration liability
 
 
 
 
1,500,000 
Transaction costs
 
$ 1,400,000 
 
 
 
 
 
 
Weighted-average useful life of acquired intangibles
2 years 8 months 2 days 
 
 
 
 
 
 
 
Acquisitions (Schedule of Purchase Price Allocation) (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended 0 Months Ended 0 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2016
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]
Jun. 30, 2017
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 Name [Member]
Hackbright [Member]
May 4, 2016
Trade Name [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 
 
 
 
 
200 
 
 
Goodwill
23,331 
 
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
 
 
 
 
 
 
 
1,500 
 
 
 
 
Less: Cash acquired
 
 
 
 
(499)
 
 
 
 
 
(336)
 
 
 
 
Cash paid for acquisitions, net of cash acquired
$ 0 
$ 32,118 
 
$ 17,490 
 
 
 
$ 14,611 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Loss (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2016
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
 
 
 
Accumulated other comprehensive income (loss), beginning balance, net of tax
 
 
$ (93)1
 
 
Other comprehensive income (loss)
 
 
90 
 
 
Reclassification out of accumulated other comprehensive income (loss) to net income
 
Accumulated other comprehensive income (loss), ending balance, net of tax
(3)1
 
(3)1
 
(93)1
Tax expense (benefit) included in AOCI
 
 
 
 
52 
Foreign Currency Translation Loss [Member]
 
 
 
 
 
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
 
 
 
Accumulated other comprehensive income (loss), beginning balance, net of tax
 
 
(6)
 
 
Other comprehensive income (loss)
 
 
 
 
Accumulated other comprehensive income (loss), ending balance, net of tax
(3)
 
(3)
 
 
Unrealized Gain (Loss) on Marketable Securities [Member]
 
 
 
 
 
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
 
 
 
Accumulated other comprehensive income (loss), beginning balance, net of tax
 
 
(87)
 
 
Other comprehensive income (loss)
 
 
87 
 
 
Accumulated other comprehensive income (loss), ending balance, net of tax
$ 0 
 
$ 0 
 
 
Segment Reporting (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Segment Reporting [Line Items]
 
 
 
 
Revenues
$ 109,584 
$ 106,725 
$ 221,372 
$ 212,173 
Operating income (loss)
15,371 
18,072 
32,972 
34,599 
Other income (expense), net
56 
42 
163 
33 
Income from continuing operations before income taxes
15,427 
18,114 
33,135 
34,632 
Post-Secondary [Member]
 
 
 
 
Segment Reporting [Line Items]
 
 
 
 
Revenues
106,974 
105,789 
216,455 
211,216 
Operating income (loss)
17,754 
21,566 
38,005 
39,285 
Job-Ready Skills [Member]
 
 
 
 
Segment Reporting [Line Items]
 
 
 
 
Revenues
2,610 
936 
4,917 
957 
Operating income (loss)
$ (2,383)
$ (3,494)
$ (5,033)
$ (4,686)
Regulatory Supervision And Oversight (Details)
6 Months Ended
Jun. 30, 2017
Maximum [Member]
 
Schedule Of Regulatory Supervision And Oversight [Line Items]
 
Reauthorization of the Higher Education Act And Other Laws Governing Title IV Programs Approximate Period
Minimum [Member]
 
Schedule Of Regulatory Supervision And Oversight [Line Items]
 
Reauthorization of the Higher Education Act And Other Laws Governing Title IV Programs Approximate Period