Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 31, 2019	Feb. 14, 2020	Jun. 28, 2019
Document And Entity Information [Abstract]
Document Type	10-K
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2019
Entity File Number	001-34211
Entity Registrant Name	GRAND CANYON EDUCATION, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-3356009
Entity Address, Address Line One	2600 W. Camelback Road
Entity Address, City or Town	Phoenix
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85017
City Area Code	602
Local Phone Number	247-4400
Title of 12(b) Security	Common Stock
Trading Symbol	LOPE
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		48,165,704
Entity Public Float			$ 5.6
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Central Index Key	0001434588
Amendment Flag	false

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 122,272	$ 120,346
Restricted cash and cash equivalents	300	61,667
Investments	21,601	69,002
Accounts receivable, net	48,939	46,830
Interest receivable on Secured Note	5,011	4,650
Income tax receivable	2,186	8
Other current assets	8,035	6,963
Total current assets	208,344	309,466
Property and equipment, net	119,734	111,039
Right-of-use assets	27,770
Secured Note receivable	969,912	900,093
Amortizable intangible assets, net	202,057
Goodwill	160,766	2,941
Other assets	1,706	478
Total assets	1,690,289	1,324,017
Current liabilities
Accounts payable	14,835	14,274
Accrued compensation and benefits	20,800	15,427
Accrued liabilities	16,771	8,907
Income taxes payable	6,576	5,442
Deferred revenue	20
Current portion of lease liability	3,084
Current portion of notes payable	33,144	36,468
Total current liabilities	95,230	80,518
Deferred income taxes, noncurrent	18,320	6,465
Other long-term liability	13
Lease liability, less current portion	25,519
Notes payable, less current portion	107,774	23,437
Total liabilities	246,856	110,420
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.01 par value, 10,000 shares authorized; 0 shares issued and outstanding at December 31, 2019 and December 31, 2018
Common stock, $0.01 par value, 100,000 shares authorized; 53,054 and 52,690 shares issued and 48,105 and 48,201 shares outstanding at December 31, 2019 and December 31, 2018, respectively	531	527
Treasury stock, at cost, 4,949 and 4,489 shares of common stock at December 31, 2019 and December 31, 2018, respectively	(169,365)	(125,452)
Additional paid-in capital	270,923	256,806
Accumulated other comprehensive loss		(453)
Retained earnings	1,341,344	1,082,169
Total stockholders' equity	1,443,433	1,213,597
Total liabilities and stockholders' equity	$ 1,690,289	$ 1,324,017

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000	10,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	53,054	52,690
Common stock, shares outstanding	48,105	48,201
Treasury stock, shares	4,949	4,489

Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands	3 Months Ended								6 Months Ended	12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net revenue	$ 213,247	$ 193,289	$ 174,820	$ 197,287	$ 177,548	$ 155,454	$ 236,818	$ 275,681	$ 512,499	$ 778,643	$ 845,501	$ 974,134
Costs and expenses:
Technology and academic services	25,128	24,231	22,528	18,625	11,098	11,101	10,678	10,697		90,512	43,574	41,834
Counseling services and support	59,957	56,249	54,299	53,093	51,989	51,116	50,838	50,747		223,598	204,690	188,595
Marketing and communication	33,863	37,340	35,726	35,967	27,252	31,546	30,095	28,527		142,896	117,420	109,092
General and administrative	10,148	13,556	9,216	11,397	6,695	10,092	5,762	7,419		44,317	29,968	27,157
Amortization of intangible assets	2,179	2,179	2,179	1,686						8,223
University related expenses					(405)	6,569	79,517	87,649			173,330	324,140
Loss on transaction			(122)	4,088	770	15,610	1,440	550		3,966	18,370	562
Total costs and expenses	131,275	133,555	123,826	124,856	97,399	126,034	178,330	185,589		513,512	587,352	691,380
Operating income	81,972	59,734	50,994	72,431	80,149	29,420	58,488	90,092		265,131	258,149	282,754
Interest income on Secured Note	14,872	16,208	14,482	13,735	13,699	13,248				59,297	26,947
Interest expense	(2,943)	(2,875)	(2,907)	(2,586)	(575)	(558)	(57)	(346)		(11,311)	(1,536)	(2,169)
Investment interest and other	343	255	2,668	1,119	521	371	1,567	981		4,385	3,440	2,943
Income before income taxes	94,244	73,322	65,237	84,699	93,794	42,481	59,998	90,727		317,502	287,000	283,528
Income tax expense	17,575	15,171	14,125	11,456	18,263	8,720	13,960	17,046		58,327	57,989	80,209
Net income	$ 76,669	$ 58,151	$ 51,112	$ 73,243	$ 75,531	$ 33,761	$ 46,038	$ 73,681		$ 259,175	$ 229,011	$ 203,319
Earnings per share:
Basic income per share	$ 1.61	$ 1.21	$ 1.07	$ 1.54	$ 1.58	$ 0.71	$ 0.97	$ 1.55		$ 5.42	$ 4.81	$ 4.31
Diluted income per share	$ 1.59	$ 1.20	$ 1.06	$ 1.52	$ 1.56	$ 0.70	$ 0.95	$ 1.52		$ 5.37	$ 4.73	$ 4.22
Basic weighted average shares outstanding	47,758	47,920	47,851	47,699	47,708	47,682	47,604	47,432		47,814	47,608	47,140
Diluted weighted average shares outstanding	48,112	48,337	48,313	48,274	48,422	48,422	48,411	48,397		48,266	48,414	48,235
Service [Member]
Net revenue	$ 213,247	$ 193,289	$ 174,820	$ 197,287	$ 177,548	$ 155,454				$ 778,643	$ 333,002
University Related Revenue [Member]
Net revenue							$ 236,818	$ 275,681			$ 512,499	$ 974,134

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Consolidated Statements of Comprehensive Income
Net income	$ 259,175	$ 229,011	$ 203,319
Other comprehensive income, net of tax:
Unrealized gains (losses) on hedging derivatives, net of taxes of $107 for the year ended December 31, 2019	(390)
Unrealized gains (losses) on hedging derivatives, net of taxes of $39 and $6 for the years ended December 31, 2018 and 2017, respectively		118	11
Unrealized gains on available-for-sale securities, net of taxes of $0, $103 and $108 for the years ended December 31, 2019, 2018 and 2017, respectively		309	175
Reclassification of expired interest rate corridor to interest expense, net of taxes of $257	843
Comprehensive income	$ 259,628	$ 229,438	$ 203,505

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Consolidated Statements of Comprehensive Income
Unrealized gains (losses) on hedging derivatives, taxes	$ 107
Unrealized gains (losses) on hedging derivatives, taxes		$ 39	$ 6
Unrealized gains (losses) on available for sale securities, taxes	0	$ 103	$ 108
Reclassification of expired interest rate corridor to interest expense, tax	$ 257

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Total
Beginning Balance at Dec. 31, 2016	$ 515	$ (89,394)	$ 212,559	$ (910)	$ 650,916	$ 773,686
Beginning Balance, Shares at Dec. 31, 2016	51,509	3,950
Comprehensive income				186	203,319	203,505
Common stock purchased for treasury		$ (1,510)				(1,510)
Common stock acquired, shares		17
Restricted shares forfeited, Shares		34
Share-based compensation	$ 2	$ (9,790)	12,686			2,898
Share-based compensation, Shares	192	151
Exercise of stock options	$ 6		7,366			7,372
Exercise of stock options, Shares	576
Ending Balance at Dec. 31, 2017	$ 523	$ (100,694)	232,670	(724)	854,176	985,951
Ending Balance, Shares at Dec. 31, 2017	52,277	4,152
Cumulative effect from the adoption of accounting pronouncements, net of taxes			59		(59)
Comprehensive income				427	229,011	229,438
Adoption impact - ASU 2018-02				(156)	156
Common stock purchased for treasury		$ (9,606)				(9,606)
Common stock acquired, shares		91
Restricted shares forfeited, Shares		95
Share-based compensation	$ 2	$ (15,152)	19,506			4,356
Share-based compensation, Shares	163	151
Exercise of stock options	$ 2		4,630			4,632
Exercise of stock options, Shares	250
Ending Balance at Dec. 31, 2018	$ 527	$ (125,452)	256,806	(453)	1,082,169	1,213,597
Ending Balance, Shares at Dec. 31, 2018	52,690	4,489
Cumulative effect from the adoption of accounting pronouncements, net of taxes					(1,174)	(1,174)
Comprehensive income				$ 453	259,175	259,628
Common stock purchased for treasury		$ (35,786)				$ (35,786)
Common stock acquired, shares		376				376
Restricted shares forfeited, Shares		16
Share-based compensation	$ 2	$ (8,127)	10,298			$ 2,173
Share-based compensation, Shares	152	68
Exercise of stock options	$ 2		3,819			3,821
Exercise of stock options, Shares	212
Ending Balance at Dec. 31, 2019	$ 531	$ (169,365)	$ 270,923		$ 1,341,344	$ 1,443,433
Ending Balance, Shares at Dec. 31, 2019	53,054	4,949

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows provided by operating activities:
Net income	$ 259,175	$ 229,011	$ 203,319
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation	10,300	19,508	12,688
Provision for bad debts		8,669	18,478
Depreciation and amortization	18,696	35,673	54,228
Amortization of intangible assets	8,223
Deferred income taxes	1,670	(11,507)	(5,160)
Loss on transaction, net of costs and asset impairment	3,966	12,605
Other, including fixed asset impairments	(335)	2,101	3,883
Changes in assets and liabilities:
Accounts receivable and interest receivable from university partners	766	(51,480)
Accounts receivable		(7,784)	(19,848)
Prepaid expenses and other	2,136	1,553	(2,399)
Right-of-use assets and lease liabilities	833
Accounts payable	(3,095)	(14,306)	5,378
Accrued liabilities	5,078	(15,700)	3,079
Income taxes receivable/payable	(1,044)	(8,662)	16,048
Deferred rent		(189)	(369)
Deferred revenue	(25)	6,881	6,156
Student deposits		(7,288)	9,417
Net cash provided by operating activities	306,344	199,085	304,898
Cash flows used in investing activities:
Capital expenditures	(22,391)	(94,527)	(113,586)
Purchases of land and building improvements related to off-site development	(260)	(330)	(10,368)
Disposition		(131,550)
Funding to GCU at closing in excess of required capital		(7,377)
Repayment of excess funds by GCU		7,377
Return of equity method investment			685
Acquisition, net of cash acquired	(361,184)
Funding to GCU for capital expenditures	(169,819)	(29,996)
Repayment by GCU for capital expenditures	100,000
Purchases of investments	(9,384)	(46,948)	(94,054)
Proceeds from sale or maturity of investments	57,163	65,116	65,259
Net cash used in investing activities	(405,875)	(238,235)	(152,064)
Cash flows provided by (used in) financing activities:
Principal payments on notes payable	(92,433)	(6,719)	(6,805)
Debt issuance costs	(2,385)
Proceeds from notes payable	243,750
Net borrowings from revolving line of credit	(68,750)		(25,000)
Repurchase of common shares including shares withheld in lieu of income taxes	(43,913)	(24,758)	(11,300)
Net proceeds from exercise of stock options	3,821	4,632	7,372
Net cash provided by (used in) financing activities	40,090	(26,845)	(35,733)
Net (decrease) increase in cash and cash equivalents and restricted cash	(59,441)	(65,995)	117,101
Cash and cash equivalents and restricted cash, beginning of period	182,013	248,008	130,907
Cash and cash equivalents and restricted cash, end of period	122,572	182,013	248,008
Supplemental disclosure of cash flow information
Cash paid for interest	11,516	1,511	2,252
Cash paid for income taxes	59,903	78,195	69,606
Supplemental disclosure of non-cash investing and financing activities
Sale transaction to GCU through Secured Note financing		870,097
Purchases of property and equipment included in accounts payable	469	1,121	$ 6,682
Reclassification of capitalized costs - adoption of ASC 606		9,015
Reclassification of deferred revenue - adoption of ASC 606		7,451
Lease adoption - gross up of right of use assets and lease liabilities	498
ROU Asset and Liability gross up	14,203
Reclassification of interest rate corridor due to expiration	$ 1,100
Reclassification of tax effect within accumulated other comprehensive income		$ 156

Nature of Business

12 Months Ended

Dec. 31, 2019

Nature of Business

Nature of Business

1. Nature of Business

Grand Canyon Education, Inc. (together with its subsidiaries, the “Company” or “GCE”) is a publicly traded education services company. Prior to July 1, 2018, GCE owned and operated Grand Canyon University (the “University”), a comprehensive regionally accredited university that offers graduate and undergraduate degree programs, emphases and certificates across nine colleges both online and on ground at its campus in Phoenix, Arizona, at leased facilities and at facilities owned by third party employers of its students. On July 1, 2018, the Company sold the University to Grand Canyon University, an Arizona non-profit corporation formerly known as Gazelle University (“GCU”). As a result of this transaction (the “Transaction”), GCE became an education services company focused on providing a full array of support services to institutions in the post-secondary education sector. GCE provides education services, that include technology and academic services, counseling services and support, marketing and communication services, and for its largest university partner several back-office services such as accounting, reporting, tax, human resources, and procurement services. GCE has developed significant technological solutions, infrastructure and operational processes to provide services to these institutions on a large scale. See Note 2 to our consolidated financial statements for a full description of the Transaction.

On January 22, 2019, GCE acquired, by merger, all of the outstanding equity interest of Orbis Education Services, LLC (“Orbis Education”), an education services company that supports healthcare education programs for 22 university partners across the United States, for $361,184, net of cash acquired (the “Acquisition”). The Company financed a portion of the purchase price through a credit facility provided by a consortium of banks led by our existing bank group. See Note 3 to our consolidated financial statement for a full description of the Acquisition.

As a result of the Transaction and Acquisition, the Company no longer owns and operates an institution of higher education, but instead provides a bundle of services in support of its 22 university partners.

GCE was formed in Delaware in November 2003 as a limited liability company, under the name Significant Education, LLC, for the purchase of acquiring the assets of the University from a non-profit foundation on February 2, 2004. On August 24, 2005, the Company converted from a limited liability company to a corporation and changed its name to Significant Education, Inc. On May 9, 2008, the Company changed its name to Grand Canyon Education, Inc. The Company’s wholly-owned subsidiaries were historically used to facilitate expansion of the university campus prior to the transaction.

The Transaction

12 Months Ended

Dec. 31, 2019

The Transaction

The Transaction

2. The Transaction

Asset Purchase Agreement and Related Agreements

On July 1, 2018, the Company consummated an Asset Purchase Agreement (the “Asset Purchase Agreement”) with GCU. In conjunction with the Asset Purchase Agreement, we received a secured note from GCU as consideration for the transferred assets (the “Transferred Assets”) in the initial principal amount of $870,097 (the “Secured Note”). The Secured Note contains customary commercial credit terms, including affirmative and negative covenants applicable to GCU, and provides that the Secured Note bears interest at an annual rate of 6.0%, has a maturity date of June 30, 2025, and is secured by all of the assets of GCU. The Secured Note provides for GCU to make interest only payments during the term, with all principal and accrued and unpaid interest due at maturity and also provides that we may loan additional amounts to GCU to fund approved capital expenditures during the first three years of the term. As of December 31, 2019, the Company had loaned $99,815 to GCU for capital expenditures, which is net of GCU’s repayment of $100,000 during the year ended December 31, 2019. In connection with the closing of the Asset Purchase Agreement, the Company and GCU entered into a long-term master services agreement pursuant to which the Company provides identified technology and academic services, counseling services and support, marketing and communication services, and several back-office services to GCU in return for 60% of GCU’s tuition and fee revenue.

The Company was a party to a credit agreement with Bank of America, N.A. as Administrative Agent, and other lenders, dated December 21, 2012 and amended as of January 15, 2016. Effective July 1, 2018, the Company and the lenders amended the credit agreement (the “Amendment”) to release the assets pledged as collateral in order to enable GCE to sell them to GCU and complete the Transaction. In connection with the Amendment, GCE provided restricted cash collateral in the amount of $61,667 as of December 31, 2018, which was released on January 22, 2019. See Note 10 to our consolidated financial statements for a full description of our credit agreement.

Disposed Assets, previously Assets and Liabilities Held for Sale

The Company received Board approval to consummate the Transaction on June 28, 2018, and completed the Transaction on July 1, 2018. As a result, the Company determined that it had met the accounting requirements to classify the assets and liabilities to be transferred in the Transaction as assets and liabilities held for sale as of June 30, 2018. The assets and liabilities held for sale were sold as part of the Transaction on July 1, 2018. Accordingly, the following balances were transferred to GCU as of July 1, 2018:


Restricted cash and cash equivalents	$	97,443
Accounts receivable, net of allowance for doubtful accounts of $6,093		9,780
Other assets		7,677
Property and equipment, net of accumulated depreciation of $166,066		870,097
Total assets held for sale, current	$	984,997

Accrued and other liabilities	$	5,025
Student deposits		88,010
Deferred revenue		46,325
Note payable		79
Total liabilities held for sale, current	$	139,439

The Company received a Secured Note for the Transferred Assets. The Company also transferred cash equal to $34,107 representing a working capital adjustment as part of the closing. Except for identified liabilities assumed by GCU, GCE retained responsibility for all liabilities of the business arising from pre-closing operations. For the year ended December 31, 2018 the Company had a loss of $18,370, included in loss on transaction due to transaction costs of $5,765, which includes both disposition and acquisition related transaction costs, and an asset impairment of $3,037. In addition, the Company transferred to GCU cash of $9,568 to fund a deferred compensation plan for GCU employees that were formerly GCE employees (the “Transferred Employees”) and that held unvested restricted stock of GCE that was forfeited upon the Transaction. Included in the university related expenses for the six months ended December 31, 2018 is $7,880 of share-based compensation expense resulting from the modification and vesting of previously issued restricted stock grants held by Transferred Employees, employer tax expense of $191 related to the share-based compensation modification, net of reversals of employee related liabilities that were not part of the Transferred Assets for the Transaction of $1,907.

Variable Interest Entity and Related Party Considerations

ASC 810-10-15-17 provides scope exceptions to the variable interest entity analysis that include a not-for profit entity carve out. GCU is not a related party to the Company in accordance with ASC Topic 850. The following factors were considered:

●

Since GCU is an Arizona non-profit corporation, the Company has no ownership interest or voting rights in GCU.

●

GCU is a separate non-profit entity under the control of an independent board of trustees, none of whose members have ever served in a management or corporate board role at the Company. GCU’s board of

trustees has adopted bylaws and a related conflict of interest policy that, among other things, (i) prevents any trustee of GCU from attending any meeting, or voting on any matter, as to which such trustee has a conflict of interest, (ii) establishes a special committee of independent trustees to oversee on behalf of GCU all matters related to the Master Services Agreement and GCU’s relationship with the Company, and (iii) prohibits any trustee from having any financial interest in, or role with, the Company. Accordingly, the Company’s relationship with GCU, both pursuant to the Master Services Agreement and operationally, is no longer as owner and operator, but as a third-party service provider to an independent customer. While the Company believes that its relationship with GCU will remain strong, GCU’s board of trustees and management will have fiduciary and other duties that will require them to focus on the best interests of GCU and over time those interests could diverge from those of the Company.

●

Mr. Brian E. Mueller has served as the Chief Executive Officer of the Company since 2008 and the Chairman of the Board of the Company since 2017 and has also served as the President of the University since 2012. In connection with the Transaction, the Board of Directors of the Company and the board of trustees of GCU each independently determined that Mr. Mueller should retain those roles. Accordingly, Mr. Mueller remains the Chairman of the Board and Chief Executive Officer of the Company and continues to serve as the President of GCU. As noted above, however, Mr. Mueller is prohibited from serving on the board of trustees of GCU. Aside from Mr. Mueller, no other employee of GCU or GCE has a dual role in both organizations. A structure has been put in place that prevents Mr. Mueller from participating in operational matters involving the Company and GCU, including with respect to the Master Services Agreement.

●

The terms of the Master Services Agreement vest in GCU and its board of trustees full authority over decision making related to the day-to-day operations of GCU, including, without limitation, (i) selecting, hiring and firing its personnel, (ii) selecting and adopting academic programs and courses, (iii) establishing admission standards and admitting students, (iv) overseeing instruction, (v) setting credit and student performance requirements, (vi) determining graduation requirements, and (vii) conferring degrees. Per the terms of the MSA, GCE has no authority over GCU’s day-to-day operations.

●

If GCU were to default under the Credit Agreement, the Company would be able to pursue assets of GCU, which are pledged as collateral for the Secured Note. However, the Company would not become the owner or operator of GCU.

●

There is no parent entity and subsidiary relationship between the Company and GCU.

●

The Company and GCU both engaged their own outside corporate counsel, outside regulatory counsel, and financial advisors to represent each party’s interest during the Transaction.

Acquisition

12 Months Ended

Dec. 31, 2019

Acquisition

Acquisition

3. Acquisition

On January 22, 2019, GCE acquired Orbis Education for $361,184 (inclusive of closing date adjustments and net of cash acquired). Orbis Education is an education services company that supports healthcare education programs for 22 university partners across the United States. Concurrent with the closing of the Acquisition, GCE entered into an amended and restated credit agreement and used $191,000 from the amended and restated credit agreement and $171,034 of operating cash on hand to complete the purchase. See Note 10 of our consolidated financial statements for a description of the amended and restated credit agreement. The fair value of the assets acquired, less the liabilities assumed exceeded the purchase price by $157,825 which was recorded as goodwill. Transaction costs for the Acquisition for the year ended December 31, 2018 were $808 and for the year ended December 31, 2019 were $3,966, which are included in the loss on transaction in our consolidated income statement.

The Acquisition was accounted for in accordance with the acquisition method of accounting. Under this method the cost of the target is allocated to the identifiable assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The following table provides a tabular depiction of the Company’s allocation of the total purchase price to each of the assets acquired and liabilities assumed based on the Company’s fair value estimates.


Assets acquired
Cash, including $300 of pledged collateral	$	4,793
Accounts receivable, net of allowance of $0	$	3,236
Property and equipment	$	5,392
Right-of-use assets	$	13,069
Intangible assets	$	210,280
Other assets	$	2,793
Liabilities assumed
Accounts payable	$	4,308
Accrued and other liabilities	$	4,451
Lease liability	$	13,069
Deferred tax liability	$	9,538
Deferred revenue	$	45
Total net asset or liability purchased and assumed	$	208,152

Purchase price	$	365,977

Excess of fair value of net assets acquired over consideration given	$	157,825

The estimated fair values of current assets and liabilities were based upon their historical costs on the date of acquisition due to their short-term nature. The majority of property and equipment were also estimated based upon historical costs as they approximated fair value. Identified intangible assets of $210,280 consisted primarily of university partner relationships that were valued at $210,000. The fair value of university partner relationships was determined using the multiple-period excess earnings method.

Subsequent to the closing of the Acquisition, the Company revised its allocation of the purchase price by $9,538 during the year ended December 31, 2019, primarily as the result of the tax effect of a lower tax basis in the acquired assets. The Company has completed the allocation of the purchase price of the Acquisition as of December 31, 2019.

The Company has consolidated the results of operations for Orbis Education since its Acquisition on January 22, 2019. Consolidated net revenue and consolidated net income for the year ended December 31, 2019 include $85,869 of service revenue and a loss, net of taxes, of $2,588 from Orbis Education, which includes $8,223 of amortization of intangible assets. The following table reports pro forma information as if the Acquisition of Orbis Education had been completed at the beginning of the earliest period presented:


	Three Months Ended December 31,				Year Ended December 31,
	2019		2018		2019		2018
Net revenue
As Reported	$	213,247	$	177,548	$	778,643	$	845,501
Pro forma	$	213,247	$	195,656	$	781,893	$	907,960

Net income
As Reported	$	76,669	$	75,531	$	259,175	$	229,011
Pro forma	$	76,669	$	69,551	$	247,930	$	200,264

The pro forma information above for the three months and years ended December 31, 2019 and 2018 includes acquisition related costs in both periods, amortization of intangible assets as a result of the Acquisition, additional interest expense on the debt issued to finance the Acquisition, depreciation expense based on the estimated fair value of the assets acquired, and warrant expense and related tax effects. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transactions been consummated on January 1, 2019 and 2018.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

4. Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Intercompany transactions have been eliminated in consolidation.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company invests a portion of its cash in excess of current operating requirements in short term certificates of deposit and money market instruments. The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents.

Restricted Cash and Cash Equivalents

Restricted cash and cash equivalents at December 31, 2018 represents the cash collateral on the credit agreement, which was released as part of the amended and restated credit agreement on January 22, 2019. Restricted cash and cash equivalents at December 31, 2019 represents cash pledged for leased office space.

Investments

The Company considers its investments in municipal bonds, mutual funds, municipal securities, certificates of deposit and commercial paper as available-for-sale securities based on the Company’s intent for the respective security. Available-for-sale securities are carried at fair value, determined using Level 1 and Level 2 of the hierarchy of valuation inputs, with the use of quoted market prices and inputs other than quoted prices that are observable for the assets, with unrealized gains and losses, net of tax, reported as a separate component of other comprehensive income. Unrealized losses considered to be other-than-temporary are recognized currently in earnings. Amortization of premiums, accretion of discounts, interest and dividend income and realized gains and losses are included in interest and other income. As of December 31, 2018, the Company transferred its investments from available-for-sale to trading, due to the Company's decision to liquidate all investments to fund a portion of the purchase price paid in the Acquisition. Trading securities are carried at fair value and unrealized holding gains and losses are included in earnings. As a result of the transfer to trading, the Company recorded a loss of $372 in investment interest and other for the year ended December 31, 2018.

Property and Equipment

Property and equipment are recorded at cost less accumulated depreciation. Depreciation is computed using the straight-line method. Normal repairs and maintenance are expensed as incurred. Expenditures that materially extend the useful life of an asset are capitalized. Construction in progress represents items not yet placed in service and are not

depreciated. The majority of the Company’s historical capitalized interest was related to the construction of GCU’s campus improvements. The Company capitalizes interest using its interest rates on the specific borrowings used to finance the improvements, which approximated 3.7% in 2018, and 2.8% in 2017. Interest cost capitalized and incurred in the years ended December 31, 2019, 2018, and 2017 are as follows:


	Year Ended December 31,
	2019		2018		2017
Interest incurred	$	11,311	$	2,292	$	2,656
Interest capitalized		—		756		487
Interest expense	$	11,311	$	1,536	$	2,169

Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Furniture and fixtures, computer equipment, and vehicles generally have estimated useful lives of ten, four, and five years, respectively. Leasehold improvements are depreciated over the shorter of their lease term or their useful life. Land improvements and buildings are depreciated over lives ranging from 10 to 40 years.

Internally Developed Technology

The Company capitalizes certain costs related to internal-use software, primarily consisting of direct labor associated with creating the software. Software development projects generally include three stages: the preliminary project stage (all costs are expensed as incurred), the application development stage (certain costs are capitalized and certain costs are expensed as incurred) and the post-implementation or operation stage (all costs are expensed as incurred). Costs capitalized in the application development stage include costs of design, coding, integration, and testing of the software developed. Capitalization of costs requires judgment in determining when a project has reached the application development stage and the period over which we expect to benefit from the use of that software. Once the software is placed in service, these costs are amortized over the estimated useful life of the software, which is generally three years. These assets are a component of our property and equipment, net in our consolidated balance sheet.

Capitalized Content Development

The Company capitalizes certain costs to fulfill a contract related to the development and digital creation of content on a course-by-course basis for each university partner, many times in conjunction with faculty and subject matter experts. The Company is responsible for the conversion of instructional materials to an on-line format, including outlines, quizzes, lectures, and articles in accordance with the educational guidelines provided to us by our university partners, prior to the respective course commencing. We also capitalize the creation of learning objects which are digital assets such as online demonstrations, simulations, and case studies used to obtain learning objectives.

Costs that are capitalized include payroll and payroll-related costs for employees who are directly associated and spend time producing content and payments to faculty and subject matter experts involved in the process. The Company starts capitalizing content costs when it begins to develop or to convert a particular course, resources have been assigned and a timeline has been set. The content asset is placed in service when all work is complete and the curriculum could be used for instruction. Capitalized content development assets are included in other assets in our consolidated balance sheets. The Company has concluded that the most appropriate method to amortize the deferred content assets is on a straight-line basis over the estimated life of the course, which is generally four years which corresponds with course’s review and major revision cycle. As of December 31, 2019, $1,077, net of amortization, of deferred content assets are included in other assets, long-term in the Company’s consolidated balance sheets and amortization is included in technical and academic services where the costs originated.

Long-Lived Assets

The Company evaluates the recoverability of its long-lived assets for impairment, other than goodwill, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future net cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

Leases

The Company determines if an arrangement is a lease at inception and evaluates the lease agreement to determine whether the lease is a finance or operating lease. Right-of-use (“ROU”) assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement to determine the present value of lease payments over the lease term. At lease inception, the Company determines the lease term by assuming no exercises of renewal options, due to the Company’s constantly changing geographical needs for its university partners. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and are recognized as lease expense on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, and the non-lease components are accounted for separately and not included in our ROU assets and lease liabilities. Leases primarily consist of classroom site locations and office space.

Other Assets

The Company developed our online delivery platform with a third-party and put this platform into full production in 2011. The Company has prepaid perpetual license fees and source code rights for the software developed, and has prepaid maintenance and service fees. Included in current other assets is the amount that will be amortized in the next twelve-month cycle for maintenance and service fees and included in property and equipment is the amount that will be amortized over fifteen years for the perpetual licenses.

Prepaid Royalty

In connection with its February 2004 acquisition of the assets of the University from a non-profit foundation, the Company recorded a future royalty payment obligation that was included in the Prepaid Royalty in the accompanying consolidated balance sheet, which was being amortized over a 20 year period. This asset was to be expensed over the periods that online education revenues were earned. At the completion of the Transaction on July 1, 2018, the remaining prepaid royalty assets were deemed impaired and $3,037 was expensed and included in loss on transaction in the consolidated income statement.

Business Combinations

The purchase price of an acquisition is allocated to the assets acquired, including tangible and intangible assets, and liabilities assumed, based on their respective fair values at the acquisition date. The excess of the fair value of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. Transaction costs associated with business combinations are expensed as incurred and are recorded in the loss on transaction in the consolidated financial statements. The determination of the value and useful lives of the intangible assets acquired involves certain judgments and estimates. These judgments can include, but are not limited to, the cash flows that an asset is expected to generate in the future and the appropriate weighted average cost of capital. The net assets and result of operations of an acquired entity are included on the Company's consolidated financial statements from the acquisition date.

Goodwill and Intangible Assets

Goodwill represents the excess of the purchase price of an acquired business over the amount assigned to the tangible and intangible assets acquired and liabilities assumed. Goodwill is assessed at least annually for impairment during the fourth quarter, or more frequently if circumstances indicate potential impairment. Goodwill is allocated to our reporting unit at the education services segment, which is the same as the entity as a whole (entity level reporting unit). The Company has concluded there is one operating segment and one reporting unit for goodwill impairment consideration. The Financial Accounting Standards Board (“FASB”) has issued guidance that permits an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. The Company performed its annual goodwill impairment test, by performing a qualitative assessment. Following this assessment, the Company determined that it is more likely than not that its fair value exceeds its carrying amount.

Finite-lived intangible assets that are acquired in business combinations are recorded at fair value on their acquisition dates and are amortized on a straight-line basis over the estimated useful life of the intangible asset. Finite-lived intangible assets consist of university partner relationships and trade names. The Company reviews its finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. There were no indicators that the carrying amount of the finite-lived intangible assets were impaired. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future net cash flows expected to be generated by the assets. If such intangible assets are not recoverable, a potential impairment loss is recognized to the extent the carrying amounts of the assets exceeds the fair value of the assets.

Share-Based Compensation

The Company measures and recognizes compensation expense for share-based payment awards made to employees and directors. The fair value of the Company’s restricted stock awards is based on the market price of its common stock on the date of grant. Stock-based compensation expense related to restricted stock grants is expensed over the vesting period using the straight-line method for Company employees and the Company’s board of directors. Starting January 1, 2017 with the adoption of the share-based compensation accounting standard, the Company made an accounting policy election to account for forfeitures as they occur, prior to 2017 these forfeitures were estimated and reported net of the expense.

Derivatives and Hedging

Derivative financial instruments are recorded on the consolidated balance sheet as assets or liabilities and re-measured at fair value at each reporting date. For derivatives designated as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or period during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings.

Derivative financial instruments enable the Company to manage its exposure to interest rate risk. The Company does not engage in any derivative instrument trading activity. Credit risk associated with the Company’s derivatives is limited to the risk that a derivative counterparty will not perform in accordance with the terms of the contract. Exposure to counterparty credit risk is considered low because these agreements have been entered into with institutions with Aa or higher credit ratings, and they are expected to perform fully under the terms of the agreements.

Fair Value of Financial Instruments

The carrying value of cash and cash equivalents, accounts receivable, accounts payable, accrued compensation and benefits and accrued liabilities approximate their fair value based on the liquidity or the short-term maturities of these

instruments. The carrying value of Secured Note receivable, non-current approximates fair value as the Secured Note resulted from the Transaction and was negotiated at fair market value. The carrying value of notes payable approximate fair value based on its variable rate index. Derivative financial instruments are carried at fair value, determined using Level 2 of the hierarchy of valuation inputs as defined in the FASB Accounting Standards Codification (“Codification”), with the use of inputs other than quoted prices that are observable for the asset or liability. See Note 12, Derivative Instruments.

The fair value of investments, primarily municipal securities, were determined using Level 2 of the hierarchy of valuation inputs, with the use of inputs other than quoted prices that are observable for the assets. The unit of account used for valuation is the individual underlying security. The municipal securities are comprised of city and county bonds related to schools, water and sewer, utilities, transportation, healthcare and housing.

Income Taxes

The Company accounts for income taxes payable or refundable for the current year and deferred tax assets and liabilities for future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the temporary differences are expected to be realized.

The Company applies a more-likely-than-not threshold for financial statement recognition and measurement of an uncertain tax position taken or expected to be taken in a tax return. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2019 and 2018, the Company has reserved approximately $6,773 and $1,960, respectively, for uncertain tax positions, including interest and penalties, which is classified within accrued liabilities on the accompanying consolidated balance sheet.

The Company has deferred tax assets, which are subject to periodic recoverability assessments. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. Realization of the deferred tax assets is principally dependent upon achievement of projected future taxable income.

Commitments and Contingencies

The Company accrues for a contingent obligation when it is probable that a liability has been incurred and the amount is reasonably estimable. When the Company becomes aware of a claim or potential claim, the likelihood of any loss exposure is assessed. If it is probable that a loss will result and the amount of the loss is estimable, the Company records a liability for the estimated loss. If the loss is not probable or the amount of the potential loss is not estimable, the Company will disclose the claim if the likelihood of a potential loss is reasonably possible and the amount of the potential loss could be material. Estimates that are particularly sensitive to future changes include tax, legal, and other regulatory matters, which are subject to change as events evolve, and as additional information becomes available during the administrative and litigation process. The Company expenses legal fees as incurred.

Revenue Recognition

University related revenue – prior to July 1, 2018

On January 1, 2018, the Company adopted “Revenue from Contracts with Customers” using the modified retrospective method applied to all contracts. Prior to the Transaction on July 1, 2018, net revenues consisted primarily of tuition, net of scholarships, and fees derived from courses taught by the University online, on ground, and at facilities it leased or those of employers, as well as from related educational resources that the University provided to its students, such as access to online materials. Tuition revenue was recognized pro-rata over the applicable period of instruction. A contract was entered into with a student and covered a course or semester. Revenue recognition occurred once a student

started attending a course. The University also charged online students an upfront learning management fee, which was deferred and recognized over the initial course. The University had no costs that were capitalized to obtain or to fulfill a contract with a customer. Ancillary revenues included housing and fee revenues that were recognized over the period the services were provided and also included revenues from sales and services such as food and beverage, merchandise, hotel, golf and arena events that were recognized as sales occurred or services were performed as these services were transferred at a point in time. For the six months ended June 30, 2018 and the year ended December 31, 2017, the Company’s revenue was reduced by approximately $101,176 and $196,334, respectively, as a result of scholarships that the Company offered to students. Sales tax collected from students is excluded from net revenues. Collected but unremitted sales tax is included as an accrued liability in our consolidated balance sheet.

The following table presents our revenues disaggregated by the nature of transfer of services for the six months ended June 30, 2018:


Tuition revenues	$	522,430
Ancillary revenues (housing, meals, fees, golf, hotel, arena, other)		91,245
Total revenues		613,675
Scholarships		(101,176)
Net Revenues	$	512,499

The Company’s receivables represented unconditional rights to consideration from its contracts with students; accordingly, students were not billed until they started attending a course and the revenue recognition process had commenced. Once a student had been invoiced, payment was due immediately. Included in each invoice to the student were all educational related items including tuition, net of scholarships, housing, educational materials, fees, etc. The Company did not have any contract assets. The Company’s contract liabilities were reported as deferred revenue and student deposits in the consolidated balance sheets. Deferred revenue and student deposits in any period represented the excess of tuition, fees, and other student payments received as compared to amounts recognized as revenue on the consolidated income statement and were reflected as current liabilities in the accompanying consolidated balance sheets. The Company’s education programs had starting and ending dates that differ from its fiscal quarters. Therefore, at the end of each fiscal quarter, a portion of revenue from these programs was not yet earned. The majority of the University’s traditional ground students did not attend courses during the summer months (May through August), which affected our results for our second and third fiscal quarters.

The Company had identified a performance obligation associated with the provision of its educational instruction and other educational services, housing services, and other academic related services and used the output measure for recognition as the period of time over which the services were provided to our students. The Company had identified performance obligations related to its hotel, golf course, restaurants, sale of branded promotional items and other ancillary activities and recognized revenue at the point in time goods or services were provided to its customers. The Company maintained an institutional tuition refund policy, which provided for all or a portion of tuition to be refunded if a student withdrew during stated refund periods. Certain states in which students reside impose separate, mandatory refund policies, which overrode the Company’s policy to the extent in conflict. If a student withdrew at a time when only a portion, or none of the tuition was refundable, then in accordance with its revenue recognition policy, the Company continued to recognize the tuition that was not refunded pro-rata over the applicable period of instruction. The Company did not record revenue on amounts that may be refunded. However, for students that had taken out financial aid to pay their tuition and for which a return of such money to ED under Title IV was required as a result of his or her withdrawal, the Company reassessed collectability for these students each quarter for the estimated revenue that will be returned and recognized the revenue in future periods when payment was received. The Company had elected the short-term contract exemption with respect to its performance obligations under its contracts with students as all such contracts had original terms of less than one year.

Service revenue commenced July 1, 2018

Starting July 1, 2018, the Company generates all of its revenue through services agreements with its university partners (“Services Agreements”), pursuant to which the Company provides integrated technology and academic services, marketing and communication services, and back office services to its university partners in return for a percentage of tuition and fee revenue. Effective July 1, 2018, as an education services company, the Company adopted “Revenue from Contracts with Customers” which it applies to its Services Agreements.

The Company’s Services Agreements have initial terms ranging from 7-15 years, subject to renewal options, although certain agreements may give the university partners the right to terminate early if certain conditions are met. The Company’s Services Agreements have a single performance obligation, as the promises to provide the identified services are not distinct within the context of these agreements. The single performance obligation is delivered as our partners receive and consume benefits, which occurs ratably over a series of distinct service periods (daily or semester). Service revenue is recognized over time using the output method of measuring progress towards complete satisfaction of the single performance obligation. The output method provides a faithful depiction of the performance toward complete satisfaction of the performance obligation and can be tied to the time elapsed which is consumed evenly over the service period and is a direct measurement of the value provided to our partners. The service fees received from our partners over the term of the agreement are variable in nature in that they are dependent upon the number of students attending the university partner’s program and revenues generated from those students during the service period. Due to the variable nature of the consideration over the life of the service arrangement, the Company considered forming an expectation of the variable consideration to be received over the service life of this one performance obligation. However, since the performance obligation represents a series of distinct services, the Company recognizes the variable consideration that becomes known and billable because these fees relate to the distinct service period in which the fees are earned. The Company meets the criteria in the standard and exercises the practical expedient to not disclose the aggregate amount of the transaction price allocated to the single performance obligation that is unsatisfied as of the end of the reporting period. The Company does not disclose the value of unsatisfied performance obligations because the directly allocable variable consideration is allocated entirely to a wholly unsatisfied promise to transfer a service that forms part of a single performance obligation. The service fees are calculated and settled per the terms of the Services Agreements and result in a settlement duration of less than one year for all partners. There are no refunds or return rights under the Services Agreements.

The Company’s receivables represent unconditional rights to consideration from our Services Agreements with our university partners. Accounts receivable, net is stated at net realizable value and contains billed and unbilled revenue. The Company utilizes the allowance method to provide for doubtful accounts based on its evaluation of the collectability of the amounts due. There have been no amounts written off and no reserves established as of December 31, 2019 given historical collection experience. The Company will continue to review and revise its allowance methodology based on its collection experience with its partners.

For our partners with unbilled revenue, revenue recognition occurs in advance of billings. Billings for some university partners do not occur until after the service period has commenced and final enrollment information is available. Our unbilled revenue of $118 as of December 31, 2019 are included in accounts receivable in our consolidated balance sheets. Deferred revenue represents the excess of amounts received as compared to amounts recognized in revenue on our consolidated statements of income as of the end of the reporting period, and such amounts are reflected as a current liability on our consolidated balance sheets. We generally receive payments for our services billed within 30 days of invoice. These payments are recorded as deferred revenue until the services are delivered and revenue is recognized.

Technology and Academic Services

Technology and academic services consist primarily of costs related to ongoing maintenance of educational infrastructure, including online course delivery and management, student records, assessment, customer relations management and other internal administrative systems. This also includes costs to provide support for content

development, faculty training, development and other faculty support, technology support, rent and occupancy costs for university partners’ off-campus locations, and assistance with state compliance. This expense category includes salaries, benefits and share-based compensation, information technology costs, amortization of content development costs and other costs associated with these support services. This category also includes an allocation of depreciation, amortization, and occupancy costs attributable to the provision of these services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations.

Counseling Services and Support

Counseling services and support consist primarily of costs including team-based counseling and other support to prospective and current students as well as financial aid processing. This expense category includes salaries, benefits and share-based compensation, and other costs such as dues, fees and subscriptions and travel costs. This category also includes an allocation of depreciation, amortization, rent, and occupancy costs attributable to the provision of these services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations.

Marketing and Communication

Marketing and communication includes lead acquisition, digital communication strategies, brand identity advertising, media planning and strategy, video, data science and analysis, marketing to potential students and other promotional and communication services. This expense category includes salaries, benefits and share-based compensation for marketing and communication personnel, brand advertising, marketing leads and other promotional and communication expenses. This category also includes an allocation of depreciation, amortization, lease expense, and occupancy costs attributable to the provision of these services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations. Advertising costs are expensed as incurred.

General and Administrative

General and administrative expenses include salaries, benefits and share-based compensation of employees engaged in corporate management, finance, human resources, compliance, and other corporate functions. This category also includes an allocation of depreciation, amortization, lease expense, and occupancy costs attributable to the provision of these services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations.

University related expenses

University related expenses represent the costs that were transferred to GCU in the Transaction and that are no longer incurred by the Company.

Insurance/Self-Insurance

The Company uses a combination of insurance and self-insurance for a number of risks, including claims related to employee health care, workers’ compensation, general liability, and business interruption. Liabilities associated with these risks are estimated based on, among other things, historical claims experience, severity factors, and other actuarial assumptions. The Company’s loss exposure related to self-insurance is limited by stop loss coverage on a per occurrence and aggregate basis. The Company regularly analyzes its reserves for incurred but not reported claims, and for reported but not paid claims related to self-funded insurance programs. While the Company believes reserves are adequate, significant judgment is involved in assessing these reserves such as assessing historical paid claims, average lags between the claims’ incurred date, reported dates and paid dates, and the frequency and severity of claims. There may be differences between actual settlement amounts and recorded reserves and any resulting adjustments are included in expense once a probable amount is known.

Concentration of Credit Risk

The Company believes the credit risk related to cash equivalents and investments is limited due to its adherence to an investment policy that required investments to have a minimum BBB rating, depending on the type of security, by one major rating agency at the time of purchase. All of the Company’s cash equivalents and investments as of December 31, 2019 and 2018 consist of investments rated BBB or higher by at least one rating agency. Additionally, the Company utilizes more than one financial institution to conduct initial and ongoing credit analysis on its investment portfolio to monitor and lower the potential impact of market risk associated with its cash equivalents and investment portfolio. The Company is also subject to credit risk for its accounts receivable balance. The Company has not experienced any losses on receivables since July 1, 2018, the date the Company transitioned to an education service company. To manage accounts receivable risk, the Company maintains an allowance for doubtful accounts, if needed. Our dependence on our largest university partner subjects us to the risk that declines in that partner’s operations would result in a sustained reduction in revenues and interest income on Secured Note for the Company.

Segment Information

The Company operates as a single education services company using a core infrastructure that serves the curriculum and educational delivery needs of its university partners. The Company’s Chief Executive Officer manages the Company’s operations as a whole and no expense or operating income information is generated or evaluated on any component level.

Accounting Pronouncements Adopted in 2019

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which introduced a lessee model that requires the majority of leases to be recognized on the balance sheet. On January 1, 2019, the Company adopted the ASU using the modified retrospective transition approach and elected the transition option to recognize the adjustment in the period of adoption rather than in the earliest period presented. Adoption of the new guidance resulted in an immaterial amount of right-of-use (“ROU”) assets and lease liabilities of $498. Subsequent to adoption, the Company recognized ROU assets of $13,069 and lease liabilities of $13,069 acquired in the Acquisition. As part of the adoption process the Company made the following elections:

●

The Company elected the hindsight practical expedient, for all leases.

●

The Company elected the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs for all leases.

●

The Company elected to make the accounting policy election for short-term leases resulting in lease payments being recorded as an expense on a straight-line basis over the lease term.

ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company’s leases do not provide an implicit rate. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Refer to Note 10 to our consolidated financial statements for further disclosures regarding the impact of adopting this standard.

In August 2017, the FASB issued “Targeted Improvements to Accounting for Hedging Activities.” This standard targets improvements in the hedge relationship documentation, testing and disclosures for derivatives. This standard is effective for fiscal years and interim periods within those years, beginning after December 15, 2018. Accordingly, the standard was adopted by us as of January 1, 2019. The adoption of this guidance did not have a material impact on the Company’s financial condition, results of operations or statement of cash flows. The Company elected a qualitative approach starting in 2019 to assess its hedge effectiveness and included updated disclosures as required by the standard.

Recent Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments. This guidance revises the accounting requirements related to the measurement of credit losses on financial instruments and the timing of when such losses are recorded. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Accordingly, the standard is effective for us on January 1, 2020 using a modified retrospective approach. The Company continues to evaluate the impact that the future adoption of this standard will have on our consolidated financial statements, cash flows or results of operations.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350); Simplifying the Test for Goodwill Impairment, which eliminated step two from the goodwill impairment test and requires an entity to recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value, up to the amount of goodwill allocated to that reporting unit. The amendments in this standard are effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company expects that the adoption of this standard will impact its consolidated financial statements and related disclosures only to the extent that a future goodwill impairment test results in the recognition of an impairment charge.

The Company has determined that no other recent accounting pronouncements apply to its operations or could otherwise have a material impact on its consolidated financial statements.

Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2019

Valuation and Qualifying Accounts [Abstract]

Valuation and Qualifying Accounts

6. Valuation and Qualifying Accounts



	Balance at				Balance at
	Beginning of		Charged to	Deductions/	End of
	Period		Expense	Transfers⁽¹⁾⁽²⁾	Period
Allowance for doubtful accounts receivable
Year ended December 31, 2019	$	—	—	—	$	—
Year ended December 31, 2018	$	5,907	8,669	(14,576)	$	—
Year ended December 31, 2017	$	5,918	18,478	(18,489)	$	5,907

(1)	Deductions represent accounts written off, net of recoveries.

(2)	$6,093 included in the deductions column for the year ended December 31, 2018, represents the allowance that was transferred to GCU with other educational assets and liabilities on July 1, 2018. See Note 2.

Property and Equipment

12 Months Ended

Dec. 31, 2019

Property and Equipment

Property and Equipment

7. Property and Equipment

Property and equipment consist of the following:


	As of December 31,
	2019		2018
Land	$	5,579	$	5,579
Land improvements		2,242		2,242
Buildings		51,399		51,409
Buildings and leasehold improvements		11,691		9,581
Computer equipment		95,020		85,316
Furniture, fixtures and equipment		10,423		4,955
Internally developed software		37,175		39,270
Construction in progress		3,238		2,376
		216,767		200,728
Less accumulated depreciation and amortization		(97,033)		(89,689)
Property and equipment, net	$	119,734	$	111,039

Depreciation expense associated with property and equipment totaled $18,393 for the year ended December 31, 2019. Depreciation and amortization expense associated with property and equipment, including assets under capital lease, totaled $35,525, and $53,607 for the years ended December 31, 2018, and 2017, respectively.

Intangible Assets

12 Months Ended

Dec. 31, 2019

Intangible Assets

Intangible Assets

8. Intangible Assets

Amortizable intangible assets consist of the following as of:


	December 31, 2019
	Estimated	Gross				Net
	Average Useful	Carrying		Accumulated		Carrying
	Life (in years)	Amount		Amortization		Amount
University partner relationships	25	$	210,000		(7,943)	$	202,057
Trade names	1		280		(280)		—
Total amortizable intangible assets, net		$	210,280		(8,223)	$	202,057

Amortization expense for university partner relationships and trade names for the years ending December 31:


2020	$	8,419
2021		8,419
2022		8,419
2023		8,419
2024		8,419
Thereafter		159,962
	$	202,057

Leases

12 Months Ended

Dec. 31, 2019

Leases

Leases

9. Leases

The Company has operating leases for classroom site locations, office space, office equipment, and optical fiber communication lines. These leases have terms that range from 3 months to 10 years. At lease inception, we determined

the lease term by assuming no exercises of renewal options, due to the Company’s constantly changing geographical needs for its university partners. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and we recognize lease expense for these leases on a straight-line basis over the lease term. The Company has operating lease costs of $4,084, $827 and $1,545 for the years ended December 31, 2019, 2018 and 2017, respectively. The consolidated financial statements for years before January 1, 2019 are not presented on the same accounting basis with respect to leases. There was an immaterial amount of future lease obligations as of December 31, 2018. The majority of leases that existed for the year ended December 31, 2018 were assigned to GCU in the Transaction that occurred on July 1, 2018.

As of December 31, 2019, the Company had $16,135 of non-cancelable operating lease commitments, primarily for new office space in Indianapolis, Indiana and classroom site locations, that have not yet commenced. These operating leases will commence in 2020 with an average lease term of 10.5 years. The Company’s weighted-average remaining lease term relating to its operating leases is 8.3 years, with a weighted-average discount rate of 4.29%. As of December 31, 2019, the Company had no financing leases.

Future payment obligations with respect to the Company’s operating leases, which were existing at December 31, 2019, by year and in the aggregate, are as follows:


Year Ending December 31,	Amount
2020	$	3,767
2021		4,579
2022		4,419
2023		3,835
2024		3,400
Thereafter		14,331
Total lease payments	$	34,331
Less interest		5,728
Present value of lease liabilities	$	28,603

Notes Payable and Other Noncurrent Liabilities

12 Months Ended

Dec. 31, 2019

Notes Payable and Other Noncurrent Liabilities

Notes Payable and Other Noncurrent Liabilities

10. Notes Payable and Other Noncurrent Liabilities

We entered into an amended and restated credit agreement dated January 22, 2019 and two related amendments dated January 31, 2019 and dated February 1, 2019, respectively, that together provide a credit facility of $325,000 comprised of a term loan facility of $243,750 and a revolving credit facility of $81,250, both with a five-year maturity date. The term facility is subject to quarterly amortization of principal, commencing with the fiscal quarter ended June 30, 2019, in equal installments of 5% of the principal amount of the term facility per quarter. Both the term loan and revolver have monthly interest payments currently at 30 Day LIBOR plus an applicable margin of 2%. The proceeds of the term loan, together with $6,250 drawn under the revolver and operating cash on hand were used to complete the Acquisition. Concurrent with the amendment of the credit agreement and Acquisition, we repaid our existing term loan of $59,850 and our cash collateral of $61,667 was released. The Company concluded that the amended and restated credit agreement is considered a loan modification. Accordingly, the Company allocated the costs paid to the bank consortium based on the borrowing dollars and has recorded an asset of $596 and a contra liability of $1,639, which are related to our revolver and term loan, respectively, that is being amortized to interest expense over the five-year maturity date. Additionally, the Company expensed $150 of third-party costs in the first quarter related to this loan modification.

The Company entered into a further amendment for the credit facility on October 31, 2019. This amendment increased the revolving commitment by $68,750 to $150,000, while reducing the term loan by the same $68,750 to $150,625. The Company concluded that this amendment is considered a loan modification. The amended and restated credit agreement contains standard covenants that, among other things, restrict the Company’s ability to incur additional

debt or make certain investments, and require the Company to achieve certain financial ratios and maintain certain financial conditions. As of December 31, 2019, the Company is in compliance with its debt covenants.


	As of December 31,		As of December 31,
	2019		2018
Notes Payable
Note payable, quarterly payment of $8,368 starting December 31, 2019; interest at 30-Day LIBOR plus 2.00% (3.70% at December 31, 2019) through January 22, 2024	$	140,918	$	59,905
Revolving line of credit; interest at 30-Day LIBOR plus 2.0% (3.70% at December 31, 2019)		—		—
		140,918		59,905
Less: Current portion		33,144		36,468
	$	107,774	$	23,437

Payments due under the notes payable obligations are as follows as of December 31, 2019:


2020	$	33,144
2021		33,144
2022		33,144
2023		33,145
2024		8,341
Total	$	140,918

Earnings Per Share

12 Months Ended

Dec. 31, 2019

Earnings Per Share

Earnings Per Share

13. Earnings Per Share

Basic earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the assumed conversion of all potentially dilutive securities, consisting of stock options and restricted stock awards, for which the estimated fair value exceeds the exercise price, less shares which could have been purchased with the related proceeds, unless anti-dilutive. For employee equity awards, repurchased shares are also included for any unearned compensation adjusted for tax. The table below reflects the calculation of the weighted average number of common shares outstanding, on an as if converted basis, used in computing basic and diluted earnings per common share.



	Year Ended December 31,
	2019	2018	2017
Denominator:
Basic weighted average shares outstanding	47,814	47,608	47,140
Effect of dilutive stock options and restricted stock	452	806	1,095
Diluted weighted average shares outstanding	48,266	48,414	48,235

Diluted weighted average shares outstanding excludes the incremental effect of unvested restricted stock and shares that would be issued upon the assumed exercise of stock options in accordance with the treasury stock method. For each of the years ended December 31, 2019, 2018 and 2017, approximately 1, 0 and 2, respectively, of the Company’s stock options and restricted stock awards outstanding were excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive. These options and restricted stock awards could be dilutive in the future.

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Taxes

Income Taxes

15. Income Taxes

The Company has deferred tax assets and liabilities that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets are subject to periodic recoverability assessments. Realization of the deferred tax assets, net of deferred tax liabilities is principally dependent upon achievement of projected future taxable income. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more-likely-than-not that the Company will realize the benefits of these deductible differences. The Company has no valuation allowance at December 31, 2019 and 2018.

On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was signed into law. For businesses, the Act reduces the corporate federal tax rate from a maximum of 35% to a flat 21% rate. The rate reduction took effect on January 1, 2018. The Company concluded that the Act caused the Company’s deferred tax assets and liabilities to be revalued. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted though income tax expense. The Company’s net deferred tax liability was revalued as of December 22, 2017. The Company recorded a $10.7 million income tax benefit related to the revaluation of its net deferred tax liabilities. Excluding this income tax benefit in 2017, our effective tax rate would have been 32.1%.

The components of income tax expense (benefit) are as follows:


	Year Ended December 31,
	2019		2018		2017
Current:
Federal	$	57,354	$	60,764	$	76,966
State		(1,344)		8,732		8,589
		56,010		69,496		85,555
Deferred:
Federal		2,804		(10,708)		(6,189)
State		(487)		(799)		843
		2,317		(11,507)		(5,346)
Tax expense recorded as an increase of paid-in capital		—		—		—
	$	58,327	$	57,989	$	80,209

A reconciliation of income tax computed at the U.S. statutory rate to the effective income tax rate is as follows:


	Year Ended December 31,
	2019		2018		2017
Statutory U.S. federal income tax rate	21.0	%	21.0	%	35.0	%
State income taxes, net of federal tax benefit	2.4		4.0		3.2
State tax credits, net of federal effect	(1.0)		(1.0)		(0.7)
Excess tax benefits	(2.3)		(3.7)		(5.8)
Deferred tax revaluation (Federal Rate change)	—		—		(3.7)
Nondeductible expenses	0.1		0.4		—
Other	(1.8)		(0.5)		0.3
Effective income tax rate	18.4	%	20.2	%	28.3	%

Significant components of the Company’s deferred income tax assets and liabilities, included in Deferred income taxes, non-current on the consolidated balance sheets are as follows:


	As of December 31,		As of December 31,
	2019		2018
Deferred tax assets:
Share-based compensation	$	2,499	$	3,030
Employee compensation		614		780
Intangibles		23,693		—
State taxes		1,764		879
Other		432		386
Deferred tax assets		29,002		5,075

Deferred tax liability:
Property and equipment		(10,865)		(10,778)
Goodwill		(36,295)		(762)
Other		(162)		—
Deferred tax liability		(47,322)		(11,540)
Net deferred tax liability	$	(18,320)	$	(6,465)

The net deferred tax liability on the accompanying consolidated balance sheet is comprised of the following:


	As of December 31,		As of December 31,
	2019		2018
Deferred income taxes, current	$	2,215	$	1,871
Deferred income taxes, non-current		(20,535)		(8,336)
Net deferred tax liability	$	(18,320)	$	(6,465)

The Company recognizes the impact of a tax position in its financial statements if that position is more-likely-than-not to be sustained on audit, based on the technical merits of the position. The Company discloses all unrecognized tax benefits, which includes the reserves recorded for uncertain tax positions on filed tax returns and the unrecognized portion of affirmative claims. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. Unrecognized tax benefits as of December 31, 2019 and 2018 were $6,773 and $1,960, respectively.

The reconciliation of the beginning and ending balance of unrecognized tax benefits at December 31, is as follows:


	2019		2018
Unrecognized tax benefits, beginning of year	$	1,960	$	2,008
Tax positions taken during the current year
Increases		5,671		—
Decreases		—		—
Tax positions taken during a prior year
Increases		96		75
Decreases		—		—
Decreases for settlements during the period		—		(123)
Reductions for lapses of applicable statute of limitations		(954)		—
Unrecognized tax benefits, end of year	$	6,773	$	1,960

As of December 31, 2019 and 2018, the unrecognized tax benefit recorded of $6,773 and $1,960, respectively, if reversed, would impact the effective tax rate. At December 31, 2019 and 2018, the Company had accrued $153 and $217, respectively, in interest and $0, in penalties. It is reasonably possible that the amount of the unrecognized tax benefit will change during the next 12 months, however management does not expect the potential change to have a material effect on the results of operations or financial position.

The Company’s uncertain tax positions were related to tax years that remained subject to examination by tax authorities. As of December 31, 2019, the earliest tax year still subject to examination for federal and state purposes is 2016 and 2015, respectively.

Share-Based Compensation

12 Months Ended

Dec. 31, 2019

Share-Based Compensation

Share-Based Compensation

16. Share-Based Compensation Plans

Incentive Plans

Prior to June 2017, the Company made grants of restricted stock and stock options under its 2008 Equity Incentive Plan (the “2008 Plan”). In January 2017, the Board of Directors of the Company approved, and at the Company’s 2017 annual meeting of stockholders held on June 14, 2017, the Company’s stockholders adopted a 2017 Equity Incentive Plan (the “2017 Plan”) under which a maximum of 3,000 shares may be granted. As of December 31, 2019, 1,763 shares were available for grants under the 2017 Plan. All grants of equity incentives made after June 2017 have been made from the 2017 Plan.

Restricted Stock

During fiscal years 2019, 2018, and 2017, the Company granted 149, 160, and 188 shares of common stock, respectively, with a service vesting condition to certain of its executives, officers, and employees. The restricted shares have voting rights and vest evenly at 20% over each of the next five years. Upon vesting, shares will be held in lieu of taxes equivalent to the statutory tax withholding required to be paid when the restricted stock vests. During the years ended December 31, 2019, 2018 and 2017, the Company withheld 68, 151, and 151 shares of common stock in lieu of taxes at a cost of $8,127, $15,152, and $9,790, on the restricted stock vesting dates, respectively. During 2019, 2018 and 2017, following the annual stockholders meeting, the Company granted 3, 3 and 4 shares of common stock to the non-employee members of the Company’s Board of Directors. The restricted shares granted to these directors have voting rights and vest on the earlier of (a) the one year anniversary of the date of grant or (b) immediately prior to the following year’s annual stockholders’ meeting. Included in the 2019 amount are shares of common stock granted in August 2019 to two new non-employee members of the Company’s Board of Directors. The restricted shares granted to these directors have voting rights and vest on the one year anniversary of the date of grant.

In conjunction with the GCU Transaction, the Compensation Committee of the Company’s Board of Directors decided to modify the vesting condition for certain restricted stock awards for approximately 100 Transferred Employees who transferred employment from GCE to GCU, with the acceleration being contingent upon the closing of the Transaction on July 1, 2018. Refer to Note 2 for further discussion on the Transaction. As a result, the incremental share-based compensation expense from the modification on 82 restricted stock awards for the accelerated vesting date was $7,880 and is included in the university related expenses in the consolidated income statement. Additionally, the Company transferred cash to GCU totaling $9,568 to fund a deferred compensation plan in an amount equal to the value of the 86 shares forfeited by the Transferred Employees at the closing of the Transaction. This amount is included in the loss on transaction in the consolidated income statement.

A summary of the activity related to restricted stock granted under the Company’s Incentive Plan is as follows:


		Weighted Average
	Total	Grant Date
	Shares	Fair Value per Share
Outstanding as of December 31, 2016	993	$	38.32
Granted	192	$	70.44
Vested	(375)	$	32.46
Forfeited, canceled or expired	(34)	$	44.51
Outstanding as of December 31, 2017	776	$	49.16
Granted	163	$	92.34
Vested	(384)	$	65.57
Forfeited, canceled or expired	(95)	$	71.60
Outstanding as of December 31, 2018	460	$	63.28
Granted	152	$	93.62
Vested	(174)	$	56.14
Forfeited, canceled or expired	(16)	$	82.11
Outstanding as of December 31, 2019	422	$	76.43

As of December 31, 2019, there was approximately $23,044 of total unrecognized share-based compensation cost related to unvested restricted stock awards. These costs are expected to be recognized over a weighted average period of 2.1 years.

Stock Options

No options were granted in 2019, 2018 and 2017. Prior to 2012, the Company granted time vested options to purchase shares of common stock with an exercise price equal to the fair market value on the date of grant to employees.

These time vested options vest ratably over a period of five years and expire ten years from the date of grant. A summary of the activity related to stock options granted under the Company’s Incentive Plan is as follows:


	Summary of Stock Options Outstanding
		Weighted		Weighted
		Average		Average
		Exercise		Remaining	Aggregate
	Total	Price per		Contractual	Intrinsic
	Shares	Share		Term (Years)	Value ($)⁽¹⁾
Outstanding as of December 31, 2016	1,272	$	15.26
Granted	—	$	—
Exercised	(576)	$	12.79
Forfeited, canceled or expired	(2)	$	16.35
Outstanding as of December 31, 2017	694	$	17.31
Granted	—	$	—
Exercised	(250)	$	18.47
Forfeited, canceled or expired	—	$	—
Outstanding as of December 31, 2018	444	$	16.66
Granted	—	$	—
Exercised	(212)	$	18.01
Forfeited, canceled or expired	—	$	—
Outstanding as of December 31, 2019	232	$	15.42	1.18	$	18,568
Exercisable as of December 31, 2019	232	$	15.42	1.18	$	18,568

(1)

Aggregate intrinsic value represents the value of the Company’s closing stock price on December 31, 2019 ($95.79) in excess of the exercise price multiplied by the number of options outstanding or exercisable.

Share-based Compensation

Share-based Compensation Expense Assumptions – Restricted Stock Awards

The table below outlines share-based compensation expense for the fiscal years ended December 31, 2019, 2018 and 2017 related to restricted stock and stock options granted:


	2019		2018		2017
Technology and academic services	$	1,721	$	1,585	$	1,555
Counseling support and services		5,297		4,926		4,700
Marketing and communication		87		48		26
General and administrative		3,195		3,355		3,402
University related expenses		—		9,594		3,005
Share-based compensation expense included in operating expenses		10,300		19,508		12,688
Tax effect of share-based compensation		(2,575)		(4,877)		(5,075)
Share-based compensation expense, net of tax	$	7,725	$	14,631	$	7,613

401(k) Plan

The Company has established a 401(k) Defined Contribution Benefit Plan (the “Plan”). The Plan provides eligible employees, upon date of hire, with an opportunity to make tax-deferred contributions into a long-term investment and savings program. All employees over the age of 21 are eligible to participate in the plan. The Plan allows eligible employees to contribute to the Plan subject to Internal Revenue Code restrictions and the Plan allows the Company to make discretionary matching contributions. The Company plans to make a matching contribution to the Plan of approximately $2,238 for the year ended December 31, 2019. The Company made discretionary matching contributions to the Plan of $1,625 and $2,837 for the years ended December 31, 2018 and 2017, respectively.

Quarterly Results of Operations (Unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations (Unaudited)

17. Quarterly Results of Operations (Unaudited)

The following table summarizes the unaudited quarterly results of operations for 2019 and 2018 and should be read in conjunction with other information included in the accompanying consolidated financial statements.


	2019
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Service revenue	$	197,287	$	174,820	$	193,289	$	213,247
Net revenue		197,287		174,820		193,289		213,247
Costs and expenses:
Technology and academic services		18,625		22,528		24,231		25,128
Counseling services and support		53,093		54,299		56,249		59,957
Marketing and communication		35,967		35,726		37,340		33,863
General and administrative		11,397		9,216		13,556		10,148
Amortization of intangible assets		1,686		2,179		2,179		2,179
Loss on transaction		4,088		(122)		—		—
Total costs and expenses		124,856		123,826		133,555		131,275
Operating income		72,431		50,994		59,734		81,972
Interest income on Secured Note		13,735		14,482		16,208		14,872
Interest expense		(2,586)		(2,907)		(2,875)		(2,943)
Investment interest and other		1,119		2,668		255		343
Income before income taxes		84,699		65,237		73,322		94,244
Income tax expense		11,456		14,125		15,171		17,575
Net income	$	73,243	$	51,112	$	58,151	$	76,669
Earnings per share:
Basic income per share⁽¹⁾	$	1.54	$	1.07	$	1.21	$	1.61
Diluted income per share⁽¹⁾	$	1.52	$	1.06	$	1.20	$	1.59
Basic weighted average shares outstanding		47,699		47,851		47,920		47,758
Diluted weighted average shares outstanding		48,274		48,313		48,337		48,112

(1)

The sum of quarterly income per share may not equal annual income per share due to rounding.


	2018
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Service revenue	$	—	$	—	$	155,454	$	177,548
University related revenue		275,681		236,818		—		—
Net revenue		275,681		236,818		155,454		177,548
Costs and expenses:
Technology and academic services		10,697		10,678		11,101		11,098
Counseling services and support		50,747		50,838		51,116		51,989
Marketing and communication		28,527		30,095		31,546		27,252
General and administrative		7,419		5,762		10,092		6,695
University related expenses		87,649		79,517		6,569		(405)
Loss on transaction		550		1,440		15,610		770
Total costs and expenses		185,589		178,330		126,034		97,399
Operating income		90,092		58,488		29,420		80,149
Interest income on Secured Note		—		—		13,248		13,699
Interest expense		(346)		(57)		(558)		(575)
Investment interest and other		981		1,567		371		521
Income before income taxes		90,727		59,998		42,481		93,794
Income tax expense		17,046		13,960		8,720		18,263
Net income	$	73,681	$	46,038	$	33,761	$	75,531
Earnings per share:
Basic income per share⁽¹⁾	$	1.55	$	0.97	$	0.71	$	1.58
Diluted income per share⁽¹⁾	$	1.52	$	0.95	$	0.70	$	1.56
Basic weighted average shares outstanding		47,432		47,604		47,682		47,708
Diluted weighted average shares outstanding		48,397		48,411		48,422		48,422

(1)

The sum of quarterly income per share may not equal annual income per share due to rounding.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Intercompany transactions have been eliminated in consolidation.

Use of Estimates

Cash and Cash Equivalents

Restricted Cash and Cash Equivalents

Investments

Property and Equipment


	Year Ended December 31,
	2019		2018		2017
Interest incurred	$	11,311	$	2,292	$	2,656
Interest capitalized		—		756		487
Interest expense	$	11,311	$	1,536	$	2,169

Internally Developed Technology

Capitalized Content Development

Long-Lived Assets

Leases

Prepaid Royalty

Business Combinations

Goodwill and Intangible Assets

Other assets

Other Assets

Share-Based Compensation

Derivatives and Hedging

Fair Value of Financial Instruments

Income Taxes

Commitments and Contingencies

Revenue Recognition

University related revenue – prior to July 1, 2018

The following table presents our revenues disaggregated by the nature of transfer of services for the six months ended June 30, 2018:


Tuition revenues	$	522,430
Ancillary revenues (housing, meals, fees, golf, hotel, arena, other)		91,245
Total revenues		613,675
Scholarships		(101,176)
Net Revenues	$	512,499

Service revenue commenced July 1, 2018

Technology and Academic Services

Counseling Services and Support

Marketing and Communication

General and Administrative

University related expenses

University related expenses represent the costs that were transferred to GCU in the Transaction and that are no longer incurred by the Company.

Insurance/Self-Insurance

Concentration of Credit Risk

Segment Information

Accounting Pronouncements Adopted in 2019 and Recent Accounting Pronouncements

Accounting Pronouncements Adopted in 2019

●

The Company elected the hindsight practical expedient, for all leases.

●

The Company elected the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs for all leases.

●

The Company elected to make the accounting policy election for short-term leases resulting in lease payments being recorded as an expense on a straight-line basis over the lease term.

Recent Accounting Pronouncements

The Company has determined that no other recent accounting pronouncements apply to its operations or could otherwise have a material impact on its consolidated financial statements.

The Transaction (Tables)

12 Months Ended

Dec. 31, 2019

The Transaction

Summary of balances transferred to GCU


Restricted cash and cash equivalents	$	97,443
Accounts receivable, net of allowance for doubtful accounts of $6,093		9,780
Other assets		7,677
Property and equipment, net of accumulated depreciation of $166,066		870,097
Total assets held for sale, current	$	984,997

Accrued and other liabilities	$	5,025
Student deposits		88,010
Deferred revenue		46,325
Note payable		79
Total liabilities held for sale, current	$	139,439

Acquisition (Tables)

12 Months Ended

Dec. 31, 2019

Acquisition

Schedule of allocation of total purchase price to assets acquired and liabilities assumed


Assets acquired
Cash, including $300 of pledged collateral	$	4,793
Accounts receivable, net of allowance of $0	$	3,236
Property and equipment	$	5,392
Right-of-use assets	$	13,069
Intangible assets	$	210,280
Other assets	$	2,793
Liabilities assumed
Accounts payable	$	4,308
Accrued and other liabilities	$	4,451
Lease liability	$	13,069
Deferred tax liability	$	9,538
Deferred revenue	$	45
Total net asset or liability purchased and assumed	$	208,152

Purchase price	$	365,977

Excess of fair value of net assets acquired over consideration given	$	157,825

Schedule of pro forma information related to acquisition of Orbis Education


	Three Months Ended December 31,				Year Ended December 31,
	2019		2018		2019		2018
Net revenue
As Reported	$	213,247	$	177,548	$	778,643	$	845,501
Pro forma	$	213,247	$	195,656	$	781,893	$	907,960

Net income
As Reported	$	76,669	$	75,531	$	259,175	$	229,011
Pro forma	$	76,669	$	69,551	$	247,930	$	200,264

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Significant Accounting Policies

Schedule of Interest cost capitalized and incurred


	Year Ended December 31,
	2019		2018		2017
Interest incurred	$	11,311	$	2,292	$	2,656
Interest capitalized		—		756		487
Interest expense	$	11,311	$	1,536	$	2,169

Schedule of Revenues Disaggregated by Nature of Transfer of Services

The following table presents our revenues disaggregated by the nature of transfer of services for the six months ended June 30, 2018:


Tuition revenues	$	522,430
Ancillary revenues (housing, meals, fees, golf, hotel, arena, other)		91,245
Total revenues		613,675
Scholarships		(101,176)
Net Revenues	$	512,499

Valuation and Qualifying Accounts (Tables)

12 Months Ended

Dec. 31, 2019

Valuation and Qualifying Accounts [Abstract]

Schedule of Valuation and Qualifying Accounts



	Balance at				Balance at
	Beginning of		Charged to	Deductions/	End of
	Period		Expense	Transfers⁽¹⁾⁽²⁾	Period
Allowance for doubtful accounts receivable
Year ended December 31, 2019	$	—	—	—	$	—
Year ended December 31, 2018	$	5,907	8,669	(14,576)	$	—
Year ended December 31, 2017	$	5,918	18,478	(18,489)	$	5,907

(1)	Deductions represent accounts written off, net of recoveries.

(2)	$6,093 included in the deductions column for the year ended December 31, 2018, represents the allowance that was transferred to GCU with other educational assets and liabilities on July 1, 2018. See Note 2.

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Property and Equipment

Schedule of Property and Equipment


	As of December 31,
	2019		2018
Land	$	5,579	$	5,579
Land improvements		2,242		2,242
Buildings		51,399		51,409
Buildings and leasehold improvements		11,691		9,581
Computer equipment		95,020		85,316
Furniture, fixtures and equipment		10,423		4,955
Internally developed software		37,175		39,270
Construction in progress		3,238		2,376
		216,767		200,728
Less accumulated depreciation and amortization		(97,033)		(89,689)
Property and equipment, net	$	119,734	$	111,039

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

Intangible Assets

Summary of amortizable intangible assets


	December 31, 2019
	Estimated	Gross				Net
	Average Useful	Carrying		Accumulated		Carrying
	Life (in years)	Amount		Amortization		Amount
University partner relationships	25	$	210,000		(7,943)	$	202,057
Trade names	1		280		(280)		—
Total amortizable intangible assets, net		$	210,280		(8,223)	$	202,057

Schedule of amortization expense for university partner relationships and trade names


2020	$	8,419
2021		8,419
2022		8,419
2023		8,419
2024		8,419
Thereafter		159,962
	$	202,057

Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases

Schedule of future payment obligations with respect to operating leases


Year Ending December 31,	Amount
2020	$	3,767
2021		4,579
2022		4,419
2023		3,835
2024		3,400
Thereafter		14,331
Total lease payments	$	34,331
Less interest		5,728
Present value of lease liabilities	$	28,603

Notes Payable and Other Noncurrent Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Notes Payable and Other Noncurrent Liabilities

Schedule of Notes Payable


	As of December 31,		As of December 31,
	2019		2018
Notes Payable
Note payable, quarterly payment of $8,368 starting December 31, 2019; interest at 30-Day LIBOR plus 2.00% (3.70% at December 31, 2019) through January 22, 2024	$	140,918	$	59,905
Revolving line of credit; interest at 30-Day LIBOR plus 2.0% (3.70% at December 31, 2019)		—		—
		140,918		59,905
Less: Current portion		33,144		36,468
	$	107,774	$	23,437

Schedule of payments due under notes payable obligations


2020	$	33,144
2021		33,144
2022		33,144
2023		33,145
2024		8,341
Total	$	140,918

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2019

Earnings Per Share

Schedule of Weighted Average Number of Common Shares Outstanding



	Year Ended December 31,
	2019	2018	2017
Denominator:
Basic weighted average shares outstanding	47,814	47,608	47,140
Effect of dilutive stock options and restricted stock	452	806	1,095
Diluted weighted average shares outstanding	48,266	48,414	48,235

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Schedule of Components of Income Tax Expense (Benefit)


	Year Ended December 31,
	2019		2018		2017
Current:
Federal	$	57,354	$	60,764	$	76,966
State		(1,344)		8,732		8,589
		56,010		69,496		85,555
Deferred:
Federal		2,804		(10,708)		(6,189)
State		(487)		(799)		843
		2,317		(11,507)		(5,346)
Tax expense recorded as an increase of paid-in capital		—		—		—
	$	58,327	$	57,989	$	80,209

Schedule of Effective Income Tax Rate Reconciliation


	Year Ended December 31,
	2019		2018		2017
Statutory U.S. federal income tax rate	21.0	%	21.0	%	35.0	%
State income taxes, net of federal tax benefit	2.4		4.0		3.2
State tax credits, net of federal effect	(1.0)		(1.0)		(0.7)
Excess tax benefits	(2.3)		(3.7)		(5.8)
Deferred tax revaluation (Federal Rate change)	—		—		(3.7)
Nondeductible expenses	0.1		0.4		—
Other	(1.8)		(0.5)		0.3
Effective income tax rate	18.4	%	20.2	%	28.3	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred income tax assets and liabilities, included in Deferred income taxes, non-current on the consolidated balance sheets are as follows:


	As of December 31,		As of December 31,
	2019		2018
Deferred tax assets:
Share-based compensation	$	2,499	$	3,030
Employee compensation		614		780
Intangibles		23,693		—
State taxes		1,764		879
Other		432		386
Deferred tax assets		29,002		5,075

Deferred tax liability:
Property and equipment		(10,865)		(10,778)
Goodwill		(36,295)		(762)
Other		(162)		—
Deferred tax liability		(47,322)		(11,540)
Net deferred tax liability	$	(18,320)	$	(6,465)

The net deferred tax liability on the accompanying consolidated balance sheet is comprised of the following:


	As of December 31,		As of December 31,
	2019		2018
Deferred income taxes, current	$	2,215	$	1,871
Deferred income taxes, non-current		(20,535)		(8,336)
Net deferred tax liability	$	(18,320)	$	(6,465)

Reconciliation of the beginning and ending balance of unrecognized tax benefits


	2019		2018
Unrecognized tax benefits, beginning of year	$	1,960	$	2,008
Tax positions taken during the current year
Increases		5,671		—
Decreases		—		—
Tax positions taken during a prior year
Increases		96		75
Decreases		—		—
Decreases for settlements during the period		—		(123)
Reductions for lapses of applicable statute of limitations		(954)		—
Unrecognized tax benefits, end of year	$	6,773	$	1,960

Share-Based Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2019

Share-Based Compensation

Schedule of Activity Related to Restricted Stock Granted under Company's Incentive Plan


		Weighted Average
	Total	Grant Date
	Shares	Fair Value per Share
Outstanding as of December 31, 2016	993	$	38.32
Granted	192	$	70.44
Vested	(375)	$	32.46
Forfeited, canceled or expired	(34)	$	44.51
Outstanding as of December 31, 2017	776	$	49.16
Granted	163	$	92.34
Vested	(384)	$	65.57
Forfeited, canceled or expired	(95)	$	71.60
Outstanding as of December 31, 2018	460	$	63.28
Granted	152	$	93.62
Vested	(174)	$	56.14
Forfeited, canceled or expired	(16)	$	82.11
Outstanding as of December 31, 2019	422	$	76.43

Schedule of Activity Related to Stock Options Granted under Company's Incentive Plan


	Summary of Stock Options Outstanding
		Weighted		Weighted
		Average		Average
		Exercise		Remaining	Aggregate
	Total	Price per		Contractual	Intrinsic
	Shares	Share		Term (Years)	Value ($)⁽¹⁾
Outstanding as of December 31, 2016	1,272	$	15.26
Granted	—	$	—
Exercised	(576)	$	12.79
Forfeited, canceled or expired	(2)	$	16.35
Outstanding as of December 31, 2017	694	$	17.31
Granted	—	$	—
Exercised	(250)	$	18.47
Forfeited, canceled or expired	—	$	—
Outstanding as of December 31, 2018	444	$	16.66
Granted	—	$	—
Exercised	(212)	$	18.01
Forfeited, canceled or expired	—	$	—
Outstanding as of December 31, 2019	232	$	15.42	1.18	$	18,568
Exercisable as of December 31, 2019	232	$	15.42	1.18	$	18,568

(1)

Schedule of Share-Based Compensation Expense


	2019		2018		2017
Technology and academic services	$	1,721	$	1,585	$	1,555
Counseling support and services		5,297		4,926		4,700
Marketing and communication		87		48		26
General and administrative		3,195		3,355		3,402
University related expenses		—		9,594		3,005
Share-based compensation expense included in operating expenses		10,300		19,508		12,688
Tax effect of share-based compensation		(2,575)		(4,877)		(5,075)
Share-based compensation expense, net of tax	$	7,725	$	14,631	$	7,613

Quarterly Results of Operations (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Schedule of Summarizes the Unaudited Quarterly Results of Operations


	2019
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Service revenue	$	197,287	$	174,820	$	193,289	$	213,247
Net revenue		197,287		174,820		193,289		213,247
Costs and expenses:
Technology and academic services		18,625		22,528		24,231		25,128
Counseling services and support		53,093		54,299		56,249		59,957
Marketing and communication		35,967		35,726		37,340		33,863
General and administrative		11,397		9,216		13,556		10,148
Amortization of intangible assets		1,686		2,179		2,179		2,179
Loss on transaction		4,088		(122)		—		—
Total costs and expenses		124,856		123,826		133,555		131,275
Operating income		72,431		50,994		59,734		81,972
Interest income on Secured Note		13,735		14,482		16,208		14,872
Interest expense		(2,586)		(2,907)		(2,875)		(2,943)
Investment interest and other		1,119		2,668		255		343
Income before income taxes		84,699		65,237		73,322		94,244
Income tax expense		11,456		14,125		15,171		17,575
Net income	$	73,243	$	51,112	$	58,151	$	76,669
Earnings per share:
Basic income per share⁽¹⁾	$	1.54	$	1.07	$	1.21	$	1.61
Diluted income per share⁽¹⁾	$	1.52	$	1.06	$	1.20	$	1.59
Basic weighted average shares outstanding		47,699		47,851		47,920		47,758
Diluted weighted average shares outstanding		48,274		48,313		48,337		48,112

(1)

The sum of quarterly income per share may not equal annual income per share due to rounding.


	2018
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Service revenue	$	—	$	—	$	155,454	$	177,548
University related revenue		275,681		236,818		—		—
Net revenue		275,681		236,818		155,454		177,548
Costs and expenses:
Technology and academic services		10,697		10,678		11,101		11,098
Counseling services and support		50,747		50,838		51,116		51,989
Marketing and communication		28,527		30,095		31,546		27,252
General and administrative		7,419		5,762		10,092		6,695
University related expenses		87,649		79,517		6,569		(405)
Loss on transaction		550		1,440		15,610		770
Total costs and expenses		185,589		178,330		126,034		97,399
Operating income		90,092		58,488		29,420		80,149
Interest income on Secured Note		—		—		13,248		13,699
Interest expense		(346)		(57)		(558)		(575)
Investment interest and other		981		1,567		371		521
Income before income taxes		90,727		59,998		42,481		93,794
Income tax expense		17,046		13,960		8,720		18,263
Net income	$	73,681	$	46,038	$	33,761	$	75,531
Earnings per share:
Basic income per share⁽¹⁾	$	1.55	$	0.97	$	0.71	$	1.58
Diluted income per share⁽¹⁾	$	1.52	$	0.95	$	0.70	$	1.56
Basic weighted average shares outstanding		47,432		47,604		47,682		47,708
Diluted weighted average shares outstanding		48,397		48,411		48,422		48,422

(1)

The sum of quarterly income per share may not equal annual income per share due to rounding.

The Transaction - Additional Information (Details) - USD ($) $ in Thousands		12 Months Ended
	Jul. 01, 2018	Dec. 31, 2019	Dec. 31, 2018
The Transaction
Repayment by GCU for capital expenditures		$ 100,000
Amended and restated credit agreement
The Transaction
Restricted collateral			$ 61,667
Grand Canyon University \| Master Services Agreement
The Transaction
Percentage of tuition and fee revenue used for closing of purchase agreement	60.00%
Grand Canyon University \| Disposed of by Sale \| Asset Purchase Agreement
The Transaction
Purchase price of assets	$ 870,097
Additional amount of funding provided to GCU for capital expenditures		99,815
Repayment by GCU for capital expenditures		$ 100,000
Interest rate on Secured Note	6.00%
Term of additional lending to GCU for approved capital expenditures	3 years

The Transaction - Summary of Disposed Assets, Previously Assets and Liabilities Held for Sale Transferred to GCU (Details) - Grand Canyon University - Disposed of by Sale $ in Thousands	Jul. 01, 2018 USD ($)
The Transaction
Restricted cash and cash equivalents	$ 97,443
Accounts receivable, net	9,780
Other assets	7,677
Property and equipment, net	870,097
Total assets, current	984,997
Accrued and other liabilities	5,025
Student deposits	88,010
Deferred revenue	46,325
Note payable	79
Total liabilities, current	139,439
Allowance for doubtful accounts	6,093
Accumulated depreciation on property and equipment	$ 166,066

The Transaction - Summary of Disposed Assets, previously Assets and Liabilities Held for Sale Transferred to GCU - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended						6 Months Ended	12 Months Ended
	Jul. 01, 2018	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
The Transaction
Loss on Transaction		$ (122)	$ 4,088	$ 770	$ 15,610	$ 1,440	$ 550		$ 3,966	$ 18,370	$ 562
Asset impairment	$ 3,037
Grand Canyon University \| Disposed of by Sale
The Transaction
Cash transferred at closing	$ 34,107
Loss on Transaction										18,370
Transaction costs										5,765
Asset impairment										3,037
Deferred compensation expense										$ 9,568
Grand Canyon University \| Disposed of by Sale \| University related expenses
The Transaction
Share-based compensation expense related to modification and vesting of awards held by transferred employees								$ 7,880
Employer tax expense related to share-based compensation								191
Reversals of employee related liabilities								$ 1,907

Acquisition (Details) $ in Thousands		3 Months Ended								6 Months Ended	12 Months Ended
Acquisition (Details) $ in Thousands	Jan. 22, 2019 USD ($) Institution	Dec. 31, 2019 USD ($) item	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2019 USD ($) item	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Acquisition
Number of university partners \| item		22									22
Goodwill		$ 160,766				$ 2,941					$ 160,766	$ 2,941
Assets acquired
Right-of-use assets		13,069									13,069
Liabilities assumed
Lease liability		13,069									13,069
Pro forma information
Net revenue		213,247	$ 193,289	$ 174,820	$ 197,287	177,548	$ 155,454	$ 236,818	$ 275,681	$ 512,499	778,643	845,501	$ 974,134
Pro forma, net revenue		213,247				195,656					781,893	907,960
Net income		76,669	58,151	51,112	73,243	75,531	33,761	46,038	73,681		259,175	229,011	203,319
Pro forma, net income		76,669				69,551					247,930	200,264
Amortization of intangible assets		2,179	2,179	2,179	1,686						8,223
Prior period adjustments
Technology and academic services		25,128	24,231	22,528	18,625	11,098	11,101	10,678	10,697		90,512	43,574	41,834
General and administrative		10,148	13,556	9,216	11,397	6,695	10,092	5,762	7,419		44,317	29,968	27,157
Marketing and communication		$ 33,863	$ 37,340	$ 35,726	$ 35,967	$ 27,252	$ 31,546	$ 30,095	$ 28,527		$ 142,896	117,420	$ 109,092
Orbis Education
Acquisition
Number of university partners	22	22									22
Purchase price	$ 361,184
Operating cash on hand used for acquisition	171,034
Goodwill	157,825
Transaction costs											$ 3,966	$ 808
Assets acquired
Cash	4,793
Cash, pledged collateral	300
Accounts receivable, net of allowance of $0	3,236
Accounts receivable, allowance	0
Property and equipment	5,392
Right-of-use assets	13,069
Intangible assets	210,280
Other assets	2,793
Liabilities assumed
Accounts payable	4,308
Accrued and other liabilities	4,451
Lease liability	13,069
Deferred tax liability	9,538	$ 9,538									9,538
Deferred revenue	45
Total net asset or liability purchased and assumed	208,152
Purchase price	365,977
Orbis Education \| University partner relationships
Assets acquired
Intangible assets	210,000
Orbis Education \| Credit facility
Acquisition
Purchase price	$ 191,000
Orbis Education
Pro forma information
Net revenue											85,869
Net income											(2,588)
Amortization of intangible assets											$ 8,223

Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands		6 Months Ended	12 Months Ended
	Jul. 01, 2018 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2019 USD ($) Agency project segment	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Jan. 01, 2019 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Costs capitalized to obtain or fulfill contracts with customers			$ 0
Reduction in revenue due to scholarships offered to students		$ 101,176			$ 196,334
Other assets			1,706	$ 478
Unbilled revenue amounts			118
Amounts written off			0
Allowance for doubtful accounts			$ 0
Number of operating segments \| segment			1
Number of reporting units \| segment			1
Lease liabilities			$ 28,603			$ 498
Right-of-use assets acquired			13,069
Lease liability acquired			$ 13,069
Election of hindsight practical expedient			true
Election of package of practical expedients			true
Loss in investment interest and other				$ 372
Capitalized interest rate on borrowings to finance improvements				3.70%	2.80%
Property and equipment, useful life			15 years
Royalty amortization period			20 years
Remaining prepaid royalty assets impaired	$ 3,037
Reserve for uncertain tax positions including interest and penalties			$ 6,773	$ 1,960
Amortization of other current assets			twelve-month
Number of stages of software development projects \| project			3
Computer Software
Summary Of Significant Accounting Policies [Line Items]
Estimated average useful life			3 years
Capitalized Content Development
Summary Of Significant Accounting Policies [Line Items]
Other assets			$ 1,077
Estimated average useful life			4 years
Furniture, Fixtures and Equipment
Summary Of Significant Accounting Policies [Line Items]
Property and equipment, useful life			10 years
Computer Equipment
Summary Of Significant Accounting Policies [Line Items]
Property and equipment, useful life			4 years
Vehicles
Summary Of Significant Accounting Policies [Line Items]
Property and equipment, useful life			5 years
Minimum
Summary Of Significant Accounting Policies [Line Items]
Initial contract terms			7 years
Number of major rating agencies reporting credit ratings \| Agency			1
Minimum \| Land Improvements and Buildings
Summary Of Significant Accounting Policies [Line Items]
Property and equipment, useful life			10 years
Maximum
Summary Of Significant Accounting Policies [Line Items]
Initial contract terms			15 years
Maximum \| Land Improvements and Buildings
Summary Of Significant Accounting Policies [Line Items]
Property and equipment, useful life			40 years

Summary of Significant Accounting Policies - Summary of Revenues Disaggregated by Nature of Transfer of Services (Details) - USD ($) $ in Thousands	3 Months Ended								6 Months Ended	12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Total revenues									$ 613,675
Scholarships									(101,176)			$ (196,334)
Net Revenues	$ 213,247	$ 193,289	$ 174,820	$ 197,287	$ 177,548	$ 155,454	$ 236,818	$ 275,681	512,499	$ 778,643	$ 845,501	$ 974,134
Tuition Revenues [Member]
Disaggregation of Revenue [Line Items]
Total revenues									522,430
Ancillary Revenues [Member]
Disaggregation of Revenue [Line Items]
Total revenues									$ 91,245

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property and Equipment
Property and equipment	$ 216,767	$ 200,728
Less accumulated depreciation and amortization	(97,033)	(89,689)
Property and equipment, net	119,734	111,039
Depreciation and amortization expense	18,393	35,525	$ 53,607
Land [Member]
Property and Equipment
Property and equipment	5,579	5,579
Land Improvements [Member]
Property and Equipment
Property and equipment	2,242	2,242
Buildings [Member]
Property and Equipment
Property and equipment	51,399	51,409
Buildings and Leasehold Improvements [Member]
Property and Equipment
Property and equipment	11,691	9,581
Computer Equipment
Property and Equipment
Property and equipment	95,020	85,316
Furniture, Fixtures and Equipment
Property and Equipment
Property and equipment	10,423	4,955
Internally Developed Software [Member]
Property and Equipment
Property and equipment	37,175	39,270
Construction in Progress [Member]
Property and Equipment
Property and equipment	$ 3,238	$ 2,376

Intangible Assets - Net Intangible Assets (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Intangible Assets
Gross Carrying Amount	$ 210,280
Accumulated Amortization	(8,223)
Net Carrying Amount	$ 202,057
University partner relationships
Intangible Assets
Estimated average useful life	25 years
Gross Carrying Amount	$ 210,000
Accumulated Amortization	(7,943)
Net Carrying Amount	$ 202,057
Trade names
Intangible Assets
Estimated average useful life	1 year
Gross Carrying Amount	$ 280
Accumulated Amortization	$ (280)

Intangible Assets - Amortization Expense for Developed Curricula and Student Relationships (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Amortization expense
2020	$ 8,419
2021	8,419
2022	8,419
2023	8,419
2024	8,419
Thereafter	159,962
Net Carrying Amount	$ 202,057

Leases - Lease Details (Details) $ in Thousands	12 Months Ended
Leases - Lease Details (Details) $ in Thousands	Dec. 31, 2019 USD ($) lease	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Leases
Operating lease costs	$ 4,084
Operating lease costs		$ 827	$ 1,545
Non-cancelable operating lease commitments	$ 16,135
Term of non-cancelable operating lease commitments	10 years 6 months
Weighted-average remaining lease term	8 years 3 months 18 days
Weighted-average discount rate of operating leases	4.29%
Number of financing leases \| lease	0
Minimum
Leases
Term of operating leases	3 months
Maximum
Leases
Term of operating leases	10 years

Leases - Future Payment Obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
Leases
2020	$ 3,767
2021	4,579
2022	4,419
2023	3,835
2024	3,400
Thereafter	14,331
Total lease payments	34,331
Less interest	5,728
Present value of lease liabilities	$ 28,603	$ 498

Notes Payable and Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands			3 Months Ended	12 Months Ended
	Oct. 31, 2019	Jan. 22, 2019	Mar. 31, 2019	Dec. 31, 2019
Notes Payable and Other Noncurrent Liabilities
Repayments of term loan		$ 59,850
Cash collateral released on repayment of debt		61,667
Credit facility
Notes Payable and Other Noncurrent Liabilities
Amount of credit facilities		$ 325,000
Term of credit facility		5 years
Loan modification costs expensed			$ 150
Credit facility \| 30-Day LIBOR
Notes Payable and Other Noncurrent Liabilities
Margin on variable interest rate		2.00%
Term loan facility
Notes Payable and Other Noncurrent Liabilities
Amount of credit facilities		$ 243,750
Installment payment as a percentage of principal amount		5.00%
Loan modification costs		$ 1,639
Term loan facility \| 30-Day LIBOR
Notes Payable and Other Noncurrent Liabilities
Margin on variable interest rate				2.00%
Revolving credit facility
Notes Payable and Other Noncurrent Liabilities
Amount of credit facilities		81,250
Loan modification costs		596
Revolving credit facility \| Orbis Education
Notes Payable and Other Noncurrent Liabilities
Acquisition consideration funded by credit agreement		$ 6,250
Revolving credit facility \| 30-Day LIBOR
Notes Payable and Other Noncurrent Liabilities
Margin on variable interest rate				2.00%
Amendment - October 31, 2019 \| Term loan facility
Notes Payable and Other Noncurrent Liabilities
Amount of credit facilities	$ 150,625
Increase (decrease) in facility	(68,750)
Amendment - October 31, 2019 \| Revolving credit facility
Notes Payable and Other Noncurrent Liabilities
Amount of credit facilities	150,000
Increase (decrease) in facility	$ 68,750

Notes Payable and Other Noncurrent Liabilities - Current and Noncurrent Portions of Notes Payable (Details) - USD ($) $ in Thousands		12 Months Ended
	Jan. 22, 2019	Dec. 31, 2019	Dec. 31, 2018
Notes Payable and Other Noncurrent Liabilities
Less: Current portion		$ 33,144	$ 36,468
Notes payable, less current portion		107,774	23,437
Credit facility
Notes Payable and Other Noncurrent Liabilities
Notes payable including current portion		140,918	59,905
Less: Current portion		33,144	36,468
Notes payable, less current portion		107,774	23,437
Credit facility \| 30-Day LIBOR
Notes Payable and Other Noncurrent Liabilities
Margin on variable interest rate	2.00%
Term loan facility
Notes Payable and Other Noncurrent Liabilities
Quarterly payment of notes payable		8,368
Notes payable including current portion		$ 140,918	$ 59,905
Term loan facility \| 30-Day LIBOR
Notes Payable and Other Noncurrent Liabilities
Margin on variable interest rate		2.00%
Interest rate of notes payable		3.70%
Revolving credit facility \| 30-Day LIBOR
Notes Payable and Other Noncurrent Liabilities
Margin on variable interest rate		2.00%
Interest rate of notes payable		3.70%

Notes Payable and Other Noncurrent Liabilities - Payments Due Under Notes Payable Obligations (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Payments due under notes payable obligations:
2020	$ 33,144
2021	33,144
2022	33,144
2023	33,145
2024	8,341
Total	$ 140,918

Derivative Instruments (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
Derivative Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Derivative [Line Items]
Expired cash flow hedge reclassified from AOCI to interest expense	$ (1,100)	$ 1,100
Other Assets
Derivative [Line Items]
Fair values of interest rate corridor instrument			$ 600
Interest Rate Corridor
Derivative [Line Items]
Description of interest rate risk hedge at several thresholds		Company paid variable interest monthly based on the 30-day LIBOR rates until that index reached 1.5%. If 30-day LIBOR was equal to 1.5% through 3.0%, the Company paid 1.5%. If 30-day LIBOR exceeded 3.0%, the Company paid actual 30-day LIBOR less 1.5%.
Interest Rate Corridor \| 30-day LIBOR
Derivative [Line Items]
LIBOR interest rate at which the cash flow hedge interest rate corridor terms become effective		1.50%
Interest rate to be paid when variable base rate falls within the interest rate corridor		1.50%
Percentage deducted from LIBOR to determine interest rate to be paid when LIBOR rate exceeds the interest rate corridor		1.50%
Interest Rate Corridor \| 30-day LIBOR \| Minimum
Derivative [Line Items]
Variable interest rate corridor percentage		1.50%
Interest Rate Corridor \| 30-day LIBOR \| Maximum
Derivative [Line Items]
Variable interest rate corridor percentage		3.00%
Cash Flow Hedging
Derivative [Line Items]
Effective portion of gain (loss) on derivatives included as a component of other comprehensive income		$ (497)
Effective portion of gain (loss) on derivatives included as a component of other comprehensive income			$ 157	$ 17

Earnings Per Share - Summary of Weighted Average Number of Common Shares Outstanding (Details) - shares shares in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Denominator:
Basic weighted average shares outstanding	47,758	47,920	47,851	47,699	47,708	47,682	47,604	47,432	47,814	47,608	47,140
Effect of dilutive stock options and restricted stock									452	806	1,095
Diluted weighted average shares outstanding	48,112	48,337	48,313	48,274	48,422	48,422	48,411	48,397	48,266	48,414	48,235

Equity Transactions (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stockholders Equity [Line Items]
Preferred stock, shares authorized	10,000	10,000
Expiration date on repurchase authorizations	Dec. 31, 2020
Common stock acquired, shares	376
Common stock acquired, cost	$ 35,786	$ 9,606	$ 1,510
Remaining authorized repurchase amount	52,316
Maximum
Stockholders Equity [Line Items]
Authorization amount for repurchase of common stock	$ 175,000

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax [Line Items]
Valuation allowance	$ 0	$ 0
Corporate federal tax rate	21.00%	21.00%	35.00%
Income tax benefit related to revaluation of net deferred tax liabilities		$ 10,700
Effective Income Tax Rate Reconciliation, Percent, Total	18.40%	20.20%	28.30%
Unrecognized tax benefits	$ 6,773	$ 1,960	$ 2,008
Tax Cuts and Jobs Act
Income Tax [Line Items]
Effective Income Tax Rate Reconciliation, Percent, Total			32.10%

Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current:
Federal									$ 57,354	$ 60,764	$ 76,966
State									(1,344)	8,732	8,589
Current Income Tax Expense (Benefit), Total									56,010	69,496	85,555
Deferred:
Federal									2,804	(10,708)	(6,189)
State									(487)	(799)	843
Deferred Income Tax Expense (Benefit)									2,317	(11,507)	(5,346)
Income Tax Expense (Benefit), Total	$ 17,575	$ 15,171	$ 14,125	$ 11,456	$ 18,263	$ 8,720	$ 13,960	$ 17,046	$ 58,327	$ 57,989	$ 80,209

Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Statutory U.S. federal income tax rate	21.00%	21.00%	35.00%
State income taxes, net of federal tax benefit	2.40%	4.00%	3.20%
State tax credits, net of federal effect	(1.00%)	(1.00%)	(0.70%)
Excess tax benefits	(2.30%)	(3.70%)	(5.80%)
Deferred tax revaluation (Federal Rate change)			(3.70%)
Nondeductible expenses	0.10%	0.40%
Other	(1.80%)	(0.50%)	0.30%
Effective Income Tax Rate Reconciliation, Percent, Total	18.40%	20.20%	28.30%

Income Taxes - Significant Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Share-based compensation	$ 2,499	$ 3,030
Employee compensation	614	780
Intangibles	23,693
State taxes	1,764	879
Other	432	386
Deferred tax assets	29,002	5,075
Deferred tax liability:
Property and equipment	(10,865)	(10,778)
Goodwill	(36,295)	(762)
Other	(162)
Deferred tax liability	(47,322)	(11,540)
Net deferred tax liability	$ (18,320)	$ (6,465)

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Unrecognized tax benefits
Unrecognized tax benefits, beginning of year	$ 1,960	$ 2,008
Tax positions taken during the current year - Increases	5,671
Tax positions taken during a prior year - Increases	96	75
Decreases for settlements during the period		(123)
Reductions for lapses of applicable statute of limitations	(954)
Unrecognized tax benefits, end of year	6,773	1,960
Amount of unrecognized tax benefit, if recognized, that would affect the effective tax rate	6,773	1,960
Interest accrued on unrecognized tax benefit	153	217
Penalties accrued on unrecognized tax benefit	$ 0	$ 0

Share-Based Compensation Plans - Additional Information (Details) shares in Thousands, $ in Thousands	1 Months Ended		12 Months Ended
	Aug. 31, 2019 director	Jun. 30, 2018 USD ($) employee shares	Dec. 31, 2019 USD ($) shares	Dec. 31, 2018 USD ($) shares	Dec. 31, 2017 USD ($) shares	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted			152	163	192
Number of new non-employee directors \| director	2
Forfeiture of shares by transferred employees at closing of transaction			16	95	34
Minimum eligible age to participate in the plan			21 years
University made discretionary matching contributions \| $			$ 2,238	$ 1,625	$ 2,837
Grand Canyon University
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of former employees hired \| employee		100
Share-based Payment Arrangement, Nonemployee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
2017 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant			1,763
Maximum \| 2017 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant			3,000
Restricted Stock Grants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares withheld for taxes			68	151	151
Common stock in lieu of taxes \| $			$ 8,127	$ 15,152	$ 9,790
Unrecognized share-based compensation cost \| $			$ 23,044
Costs are expected to be recognized over a weighted average period			2 years 1 month 6 days
Restricted Stock Grants \| Grand Canyon University
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued under plan		82
Share-based compensation expense for restricted stock awards \| $		$ 7,880
Recognized deferred compensation plan expense for former GCE employees \| $		$ 9,568
Forfeiture of shares by transferred employees at closing of transaction		86
Restricted Stock Grants \| Share-based Payment Arrangement, Nonemployee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted			3	3	4
Vesting period			1 year
Restricted Stock Grants \| 2008 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted			149	160	188
Vesting period			5 years
Restricted Stock Grants \| Share-based Compensation Award, Tranche One [Member] \| 2008 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting right percentage			20.00%
Restricted Stock Grants \| Share-based Compensation Award, Tranche Two [Member] \| 2008 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting right percentage			20.00%
Restricted Stock Grants \| Share-based Compensation Award, Tranche Three [Member] \| 2008 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting right percentage			20.00%
Restricted Stock Grants \| Share-based Compensation Award Tranche Four [Member] \| 2008 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting right percentage			20.00%
Restricted Stock Grants \| Share-based Compensation Award Tranche Five [Member] \| 2008 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting right percentage			20.00%
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						5 years
Expiration period of options						10 years
Options granted			0	0	0

Share-Based Compensation Plans - Summary of Activity Related to Restricted Stock Granted under Company's Incentive Plan (Details) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Total Shares
Total Shares, Outstanding, Beginning Balance	460	776	993
Total Shares, Granted	152	163	192
Total Shares, Vested	(174)	(384)	(375)
Total Shares, Forfeited, canceled or expired	(16)	(95)	(34)
Total Shares, Outstanding, Ending Balance	422	460	776
Weighted Average Grant Date
Weighted Average Grant Date Fair Value, Beginning Balance	$ 63.28	$ 49.16	$ 38.32
Weighted Average Grant Date Fair Value, Granted	93.62	92.34	70.44
Weighted Average Grant Date Fair Value, Vested	56.14	65.57	32.46
Weighted Average Grant Date Fair Value, Forfeited, canceled or expired	82.11	71.60	44.51
Weighted Average Grant Date Fair Value, Ending Balance	$ 76.43	$ 63.28	$ 49.16

Share-Based Compensation Plans - Summary of Activity Related to Stock Options Granted under Company's Incentive Plan (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Total Shares
Total Shares outstanding, Beginning balance	444	694	1,272
Total Shares, Granted	0	0	0
Total Shares, Exercised	(212)	(250)	(576)
Total Shares, Forfeited, canceled or expired			(2)
Total Shares outstanding, Ending balance	232	444	694
Total Shares, Exercisable	232
Weighted Average Exercise Price Per Share
Weighted Average Exercise Price per Share Outstanding, Beginning balance	$ 16.66	$ 17.31	$ 15.26
Weighted Average Exercise Price per Share, Exercised	18.01	18.47	12.79
Weighted Average Exercise Price per Share, Forfeited, canceled or expired			16.35
Weighted Average Exercise Price per Share Outstanding, Ending balance	15.42	$ 16.66	$ 17.31
Weighted Average Exercise Price per Share, Exercisable	$ 15.42
Weighted Average Remaining Term and Aggregate Intrinsic Value
Weighted Average Remaining Contractual Term (Years), Outstanding	1 year 2 months 4 days
Weighted Average Remaining Contractual Term (Years), Exercisable	1 year 2 months 4 days
Aggregate Intrinsic Value, Outstanding	$ 18,568
Aggregate Intrinsic Value, Exercisable	$ 18,568

Share-Based Compensation Plans - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 10,300	$ 19,508	$ 12,688
Tax effect of share-based compensation	(2,575)	(4,877)	(5,075)
Share-based compensation expense, net of tax	7,725	14,631	7,613
Technology and Academic Services
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	1,721	1,585	1,555
Counseling Support and Services
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	5,297	4,926	4,700
Marketing and Communication [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	87	48	26
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 3,195	3,355	3,402
University related expenses
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense		$ 9,594	$ 3,005

Quarterly Results of Operations (Unaudited) - Summarizes the Unaudited Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								6 Months Ended	12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net revenue	$ 213,247	$ 193,289	$ 174,820	$ 197,287	$ 177,548	$ 155,454	$ 236,818	$ 275,681	$ 512,499	$ 778,643	$ 845,501	$ 974,134
Costs and expenses:
Technology and academic services	25,128	24,231	22,528	18,625	11,098	11,101	10,678	10,697		90,512	43,574	41,834
Counseling services and support	59,957	56,249	54,299	53,093	51,989	51,116	50,838	50,747		223,598	204,690	188,595
Marketing and communication	33,863	37,340	35,726	35,967	27,252	31,546	30,095	28,527		142,896	117,420	109,092
General and administrative	10,148	13,556	9,216	11,397	6,695	10,092	5,762	7,419		44,317	29,968	27,157
Amortization of intangible assets	2,179	2,179	2,179	1,686						8,223
University related expenses					(405)	6,569	79,517	87,649			173,330	324,140
Loss on transaction			(122)	4,088	770	15,610	1,440	550		3,966	18,370	562
Total costs and expenses	131,275	133,555	123,826	124,856	97,399	126,034	178,330	185,589		513,512	587,352	691,380
Operating income	81,972	59,734	50,994	72,431	80,149	29,420	58,488	90,092		265,131	258,149	282,754
Interest income on Secured Note	14,872	16,208	14,482	13,735	13,699	13,248				59,297	26,947
Interest expense	(2,943)	(2,875)	(2,907)	(2,586)	(575)	(558)	(57)	(346)		(11,311)	(1,536)	(2,169)
Investment interest and other	343	255	2,668	1,119	521	371	1,567	981		4,385	3,440	2,943
Income before income taxes	94,244	73,322	65,237	84,699	93,794	42,481	59,998	90,727		317,502	287,000	283,528
Income tax expense	17,575	15,171	14,125	11,456	18,263	8,720	13,960	17,046		58,327	57,989	80,209
Net income	$ 76,669	$ 58,151	$ 51,112	$ 73,243	$ 75,531	$ 33,761	$ 46,038	$ 73,681		$ 259,175	$ 229,011	$ 203,319
Earnings per share:
Basic income per share	$ 1.61	$ 1.21	$ 1.07	$ 1.54	$ 1.58	$ 0.71	$ 0.97	$ 1.55		$ 5.42	$ 4.81	$ 4.31
Diluted income per share	$ 1.59	$ 1.20	$ 1.06	$ 1.52	$ 1.56	$ 0.70	$ 0.95	$ 1.52		$ 5.37	$ 4.73	$ 4.22
Basic weighted average shares outstanding	47,758	47,920	47,851	47,699	47,708	47,682	47,604	47,432		47,814	47,608	47,140
Diluted weighted average shares outstanding	48,112	48,337	48,313	48,274	48,422	48,422	48,411	48,397		48,266	48,414	48,235
Service [Member]
Net revenue	$ 213,247	$ 193,289	$ 174,820	$ 197,287	$ 177,548	$ 155,454				$ 778,643	$ 333,002
University Related Revenue [Member]
Net revenue							$ 236,818	$ 275,681			$ 512,499	$ 974,134

Investments (Details) - USD ($) $ in Thousands	12 Months Ended
Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Investments
Investments.	$ 21,601	$ 69,002
Loss in investment interest and other		$ 372
Unrealized gain or loss	$ 0

Share-Based Compensation Plans - Summary of Activity Related to Stock Options Granted under Company's Incentive Plan - Additional Information (Details)	Dec. 31, 2019 $ / shares
Share-Based Compensation
Value of closing stock price	$ 95.79

Nature of Business (Details) $ in Thousands	Jan. 22, 2019 USD ($) Institution	Dec. 31, 2019 item	Jun. 30, 2018 item
Nature Of Operations [Line Items]
Number of colleges operated prior to sale			9
Number of university partners		22
Orbis Education
Nature Of Operations [Line Items]
Number of university partners	22	22
Purchase price \| $	$ 361,184

Commitments and Contingencies (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Commitments and Contingencies
Accrual for Taxes Other than Income Taxes, Current	$ 0	$ 0

Income Taxes - Significant Components of Deferred Income Tax Assets and Liabilities Classified (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Income Taxes
Deferred income taxes, current	$ 2,215	$ 1,871
Deferred income taxes, non-current	(20,535)	(8,336)
Net deferred tax liability	$ (18,320)	$ (6,465)