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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2020	Jul. 31, 2020
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2020
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 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		47,281,676
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001434588
Amendment Flag	false

Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Consolidated Income Statements
Net revenue	$ 185,768	$ 174,820	$ 407,423	$ 372,107
Costs and expenses:
Technology and academic services	27,151	22,528	53,428	41,153
Counseling services and support	57,596	54,299	117,815	107,392
Marketing and communication	41,105	35,726	83,798	71,693
General and administrative	9,501	9,216	19,066	20,613
Amortization of intangible assets	2,105	2,179	4,210	3,865
Loss on transaction		(122)		3,966
Total costs and expenses	137,458	123,826	278,317	248,682
Operating income	48,310	50,994	129,106	123,425
Interest income on Secured Note	14,723	14,482	29,433	28,217
Interest expense	(1,073)	(2,907)	(2,619)	(5,493)
Investment interest and other	396	2,668	612	3,787
Income before income taxes	62,356	65,237	156,532	149,936
Income tax expense	15,346	14,125	38,137	25,581
Net income	$ 47,010	$ 51,112	$ 118,395	$ 124,355
Earnings per share:
Basic income per share	$ 1.00	$ 1.07	$ 2.51	$ 2.60
Diluted income per share	$ 1.00	$ 1.06	$ 2.49	$ 2.57
Basic weighted average shares outstanding	46,893	47,851	47,174	47,788
Diluted weighted average shares outstanding	47,151	48,313	47,457	48,307

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Consolidated Statements of Comprehensive Income
Net income	$ 51,112	$ 124,355
Other comprehensive income, net of tax:
Unrealized loss on hedging derivative, net of taxes of $35 for the three months ended March 31, 2019	(164)	(271)
Comprehensive income	$ 50,948	$ 124,084

- 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	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2020
Consolidated Statements of Comprehensive Income
Unrealized gains (losses) on hedging derivatives, taxes	$ 35	$ 70

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	$ 172,532	$ 122,272
Restricted cash and cash equivalents		300
Investments	14,691	21,601
Accounts receivable, net	20,553	48,939
Interest receivable on Secured Note	13	5,011
Income tax receivable	1,685	2,186
Other current assets	13,145	8,035
Total current assets	222,619	208,344
Property and equipment, net	124,066	119,734
Right-of-use assets	43,280	27,770
Secured Note receivable, net	1,039,912	969,912
Amortizable intangible assets, net	197,847	202,057
Goodwill	160,766	160,766
Other assets	1,794	1,706
Total assets	1,790,284	1,690,289
Current liabilities
Accounts payable	19,901	14,835
Accrued compensation and benefits	26,809	20,800
Accrued liabilities	20,033	16,771
Income taxes payable	38,281	6,576
Deferred revenue	7,709	20
Current portion of lease liability	4,709	3,084
Current portion of notes payable	33,144	33,144
Total current liabilities	150,586	95,230
Deferred income taxes, noncurrent	18,618	18,320
Other long-term liability	8	13
Lease liability, less current portion	40,483	25,519
Notes payable, less current portion	91,202	107,774
Total liabilities	300,897	246,856
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.01 par value, 10,000 shares authorized; 0 shares issued and outstanding at March 31, 2020 and December 31, 2019
Common stock, $0.01 par value, 100,000 shares authorized; 53,221 and 53,054 shares issued and 47,413 and 48,105 shares outstanding at March 31, 2020 and December 31, 2019, respectively	532	531
Treasury stock, at cost, 5,808 and 4,949 shares of common stock at March 31, 2020 and December 31, 2019, respectively	(243,382)	(169,365)
Additional paid-in capital	276,330	270,923
Retained earnings	1,455,907	1,341,344
Total stockholders' equity	1,489,387	1,443,433
Total liabilities and stockholders' equity	$ 1,790,284	$ 1,690,289

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2020	Dec. 31, 2019
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	53,225	53,054
Common stock, shares outstanding	47,306	48,105
Treasury stock, shares	5,919	4,949

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, 2018	$ 527	$ (125,452)	$ 256,806	$ (453)	$ 1,082,169	$ 1,213,597
Beginning Balance, Shares at Dec. 31, 2018	52,690	4,489
Comprehensive income				(271)	124,355	124,084
Common stock purchased for treasury		$ (10,340)				(10,340)
Common stock acquired, shares		111
Restricted shares forfeited, Shares		14
Share-based compensation	$ 1	$ (8,127)	5,184			(2,942)
Share-based compensation, Shares	152	68
Exercise of stock options	$ 2		3,406			3,408
Exercise of stock options, Shares	191
Ending Balance at Jun. 30, 2019	$ 530	$ (143,919)	265,396	$ (724)	1,206,524	1,327,807
Ending Balance, Shares at Jun. 30, 2019	53,033	4,682
Beginning Balance at Dec. 31, 2019	$ 531	$ (169,365)	270,923		1,341,344	1,443,433
Beginning Balance, Shares at Dec. 31, 2019	53,054	4,949
Comprehensive income					118,395	118,395
Common stock purchased for treasury		$ (69,048)				(69,048)
Common stock acquired, shares		898
Restricted shares forfeited, Shares		10
Share-based compensation	$ 1	$ (4,969)	5,333			365
Share-based compensation, Shares	167	62
Exercise of stock options			74			74
Exercise of stock options, Shares	4
Ending Balance at Jun. 30, 2020	$ 532	$ (243,382)	$ 276,330		1,455,907	1,489,387
Ending Balance, Shares at Jun. 30, 2020	53,225	5,919
Cumulative effect from the adoption of accounting pronouncements, net of taxes					$ (3,832)	$ (3,832)

Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands		6 Months Ended
	Jan. 01, 2020	Jun. 30, 2020
Statement of Stockholders' Equity
Cumulative effect from the adoption of accounting pronouncements, tax	$ 1,168	$ 1,168

Consolidated Statements of Cash Flows $ in Thousands	6 Months Ended
Consolidated Statements of Cash Flows $ in Thousands	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)
Cash flows provided by operating activities:
Net income	$ 118,395	$ 124,355
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation	5,334	5,185
Depreciation and amortization	10,300	9,065
Amortization of intangible assets	4,210	3,865
Deferred income taxes	1,466	1,373
Loss on transaction		3,966
Other, including fixed asset impairments	111	(285)
Changes in assets and liabilities:
Accounts receivable and interest receivable from university partners	33,384	41,056
Other assets	(5,234)	(2,220)
Right-of-use assets and lease liabilities	1,079	147
Accounts payable	2,846	(102)
Accrued liabilities	9,266	1,746
Income taxes receivable/payable	32,206	(8,812)
Deferred revenue	7,689	9,996
Net cash provided by operating activities	221,052	189,335
Cash flows used in investing activities:
Capital expenditures	(12,229)	(9,656)
Amortization of intangible assets	(147)	(228)
Acquisition, net of cash acquired		(361,184)
Funding to GCU	(75,000)	(169,819)
Purchases of investments		(1,772)
Proceeds from sale or maturity of investments	6,799	56,897
Net cash used in investing activities	(80,577)	(485,762)
Cash flows (used in) provided by financing activities:
Principal payments on notes payable	(16,572)	(72,041)
Debt issuance costs		(2,385)
Proceeds from notes payable		243,750
Net borrowings from revolving line of credit		26,250
Repurchase of common shares including shares withheld in lieu of income taxes	(74,017)	(18,467)
Net proceeds from exercise of stock options	74	3,408
Net cash (used in) provided by financing activities	(90,515)	180,515
Net increase (decrease) in cash and cash equivalents and restricted cash	49,960	(115,912)
Cash and cash equivalents and restricted cash, beginning of period	122,572	182,013
Cash and cash equivalents and restricted cash, end of period	172,532	66,101
Supplemental disclosure of cash flow information
Cash paid for interest	2,619	4,837
Cash paid for income taxes	1,850	35,114
Supplemental disclosure of non-cash investing and financing activities
Purchases of property and equipment included in accounts payable	2,689	914
Lease adoption - recognition of right of use assets and lease liabilities		$ 498
Allowance for credit losses of $5,000, net of taxes of $1,168 from adoption of ASU 2016-13	3,832
ROU Asset and Liability recognition	$ 15,510

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands		6 Months Ended
	Jan. 01, 2020	Jun. 30, 2020
Statement of Cash Flows [Abstract]
Allowance for credit losses	$ 5,000	$ 5,000
Income taxes	$ 1,168	$ 1,168

Nature of Business

6 Months Ended

Jun. 30, 2020

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 dedicated to serving colleges and universities. GCE has developed significant technological solutions, infrastructure and operational processes to provide services to these institutions on a large scale. GCE’s most significant university partner is Grand Canyon University (“GCU”), an Arizona non-profit corporation, 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.

In January 2019, GCE began providing education services to numerous university partners across the United States, through our wholly owned subsidiary, Orbis Education, which we acquired, by merger on January 22, 2019 for $361,184, net of cash acquired (the “Acquisition”). Orbis Education works in partnership with a growing number of top universities and healthcare networks across the country to develop high-quality, career-ready graduates who enter the workforce and ease healthcare industry demands. Orbis Education offers four primary academic programs with site simulation and skill labs located near healthcare providers. Therefore, the results of operations for the six months ended June 30, 2019 include Orbis Education’s financial results for the period from January 22, 2019 to June 30, 2019. See Note 2 to our consolidated financial statements for a full description of the Acquisition.

Acquisition

6 Months Ended

Jun. 30, 2020

Acquisition

Acquisition

2. 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 25 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 six months ended June 30, 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 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.

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2020

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

3. 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.

Unaudited Interim Financial Information

The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles and pursuant to the rules and regulations of the United States Securities and Exchange Commission and the instructions to Form 10-Q and Article 10, consistent in all material respects with those applied in its financial statements included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2019. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. Such interim financial information is unaudited but reflects all

adjustments that in the opinion of management are necessary for the fair presentation of the interim periods presented. Interim results are not necessarily indicative of results for a full year. These consolidated financial statements should be read in conjunction with the Company’s audited financial statements and footnotes included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2019 from which the December 31, 2019 balance sheet information was derived.

Restricted Cash and Cash Equivalents

Restricted cash and cash equivalents at December 31, 2019 represented cash pledged for leased office space, which was released during the six months ended June 30, 2020.

Investments

The Company considers its investments in municipal bonds, mutual funds, municipal securities, certificates of deposit and commercial paper as trading securities based on the Company’s intent for the respective security. Trading securities are carried at fair value and unrealized holding gains and losses are included in earnings. See Note 2 of our consolidated financial statements for further discussion on the Acquisition.

Arrangements with GCU

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 June 30, 2020, the Company had loaned $169,815 to GCU, net of repayments, including $75.0 million in June 2020. The $75.0 million that was borrowed in June 2020 was repaid in July 2020. 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. Except for identified liabilities assumed by GCU, GCE retained responsibility for all liabilities of the business arising from pre-closing operations.

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 June 30, 2020, $1,041, 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.

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.

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 fair value and useful lives of the intangible assets acquired involves certain judgments and estimates. These judgements 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 in 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 reviews goodwill at least annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount.

Finite-lived intangible assets that are acquired in a business combination 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.

Derivatives and Hedging

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

Derivative financial instruments enable the Company to manage its exposure to interest rate risk. The Company does not engage in any derivative instrument trading activity.

In 2013, the Company entered into an interest rate corridor to manage its 30-Day LIBOR interest exposure related to its variable rate debt. In December 2019 this cash flow hedge expired. The fair value of the interest rate corridor instrument as of June 30, 2019 was $187, which was included in other assets. The fair value of the derivative instrument was determined using a hypothetical derivative transaction and Level 2 of the hierarchy of valuation inputs. This derivative instrument was originally designated as a cash flow hedge of variable rate debt obligations. The adjustment of $341 for the six months ended June 30, 2019, for the effective portion of the losses on the derivative was included as a component of other comprehensive income, net of taxes.

The interest rate corridor instrument reduced variable interest rate risk starting March 1, 2013 through December 20, 2019. The corridor instrument’s terms permitted the Company to hedge its interest rate risk at several thresholds; the Company paid variable interest monthly based on the 30-Day LIBOR rates until that index reached 1.5%. If 30-Day LIBOR is 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%. Therefore, the Company hedged its exposure to future variable rate cash flows through December 20, 2019.

Fair Value of Financial Instruments

The carrying value of cash and cash equivalents, investments, accounts receivable, accounts payable, accrued compensation and benefits and accrued liabilities expenses approximate their fair value based on the liquidity or the short-term maturities of these instruments. The carrying value of Secured Note receivable, non-current approximates fair value as the Secured Note resulted from the GCU Transaction and was negotiated at fair market value. The carrying

value of notes payable approximates fair value as it is based on 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.

The fair value of investments, primarily municipal securities, was determined using Level 2 of the hierarchy of valuation inputs, with the use of inputs other than quoted prices that are observable for the assets. The 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.

Revenue Recognition

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.

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 June 30, 2020 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 $7,275 as of June 30, 2020 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.

Allowance for Credit Losses

The Company records our accounts receivable and Secured Note receivable at the net amount expected to be collected. Our accounts receivable are derived through education services provided to university partners. Our Secured Note receivable was derived through the sale of university related assets to our most significant university partner, GCU. The Company maintains an allowance for credit losses resulting from our university partners not making payments. The Company determines the adequacy of the allowance by periodically evaluating each university partners balance, considering their financial condition and credit history, and considering current and forecasted economic conditions. Since our transition to an education services company on July 1, 2018, and continued growth to 25 university partners, the Company has no credit losses with any of our university partners. In the first quarter of 2020, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments using a modified retrospective approach. This model requires consideration of a broader range of reasonable and supportable information and requires the Company to estimate expected credit losses including a measure of the expected risk of credit loss even if that risk is remote over the lifetime of the asset. Upon adoption, the Company recorded a reserve of $5,000 on its long-term Secured Note receivable. The cumulative effect for the Company upon adoption of this new standard was $3,832, net of taxes of $1,168. Bad debt expense is recorded as a technology and academic services expense in the consolidated income statement. The Company will continue to actively monitor the impact of the COVID-19 pandemic on expected credit losses.

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 certain 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, lease expense, and occupancy costs attributable to the provision of certain 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 certain 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.

Commitments and Contingencies

The Company accrues for contingent obligations 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.

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 requires 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 June 30, 2020 and December 31, 2019 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 educational service provider. To manage accounts receivable risk, the Company maintains an allowance for doubtful accounts, if needed. Our dependence on our most significant university partner, with 87.0% and 89.7% of total service revenue for the six-month periods ended June 30, 2020 and 2019, respectively, subjects us to the risk that declines in our customer’s operations would result in a sustained reduction in service revenue and interest income on the Secured Note for the Company.

Use of Estimates

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

Segment Information

The 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 2020

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments. Under this guidance, the Company is required to utilize an “expected credit loss model” on certain financial instruments, including receivables and the Secured note receivable. This model requires consideration of a broader range of reasonable and supportable information and requires the Company to estimate expected credit losses including a measure of the expected risk of credit loss even if that risk is remote over the lifetime of the asset. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Accordingly, the standard was adopted by the Company as of January 1, 2020 using a modified retrospective approach. Upon adoption, the Company recorded a reserve of $5,000 on its long-term Secured Note receivable. The cumulative effect for the Company upon adoption of this new standard was $3,832, net of tax. The adoption of this guidance did not have a material impact on the Company’s financial condition, results of operations or statements of cash flows. The Company will continue to actively monitor the impact of the COVID-19 pandemic on expected credit losses.

In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The amendments in the ASU improve the Codification by eliminating inconsistencies and providing clarifications. Under this guidance, the Company made an election not to measure an allowance for credit losses on its accrued interest receivable amounts earned on the Secured Note receivable. The Company will write off any uncollectible accrued interest in a timely manner. The adoption of this guidance did not have a material impact on the Company’s financial condition, results of operations or statements of cash flows.

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. Accordingly, the standard was adopted by us as of January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s financial condition, results of operations or statements of cash flows.

Recent Accounting Pronouncements

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU is intended to simplify various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods, with early adoption permitted. An entity that elects early adoption must adopt all the amendments in the same period. Most amendments within this ASU are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company is currently evaluating the impact of the new standard on our consolidated financial statements and related disclosures.

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effect of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying generally accepted accounting

principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company plans to elect the optional expedient for its credit facility by prospectively adjusting the effective interest rate if the cessation of the London Interbank Offered Rate (LIBOR) occurs. The Company does not believe the adoption of the reference rate reform will have a material impact on the Company’s financial condition, results of operations or statements of cash flows.

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.

Investments

6 Months Ended

Jun. 30, 2020

Investments

Investments

4. Investments

The Company classifies its investments as trading. At June 30, 2020 and December 31, 2019, the Company had $14,691 and $21,601, respectively, of investments. These investments were held in municipal and corporate securities as of June 30, 2020 and December 31, 2019.

Net Income Per Common Share

6 Months Ended

Jun. 30, 2020

Net Income Per Common Share

Net Income Per Common Share

5. Net Income Per Common 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.


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2020	2019	2020	2019
Denominator:
Basic weighted average shares outstanding	46,893	47,851	47,174	47,788
Effect of dilutive stock options and restricted stock	258	462	283	519
Diluted weighted average shares outstanding	47,151	48,313	47,457	48,307

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 the three month periods ended June 30, 2020 and 2019, approximately 81 and 0, respectively, and for the six month periods ended June 30, 2020 and 2019, approximately 182 and 0, respectively, of the Company’s 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.

Allowance for Credit Losses

6 Months Ended

Jun. 30, 2020

Allowance for Credit Losses

Allowance for Credit Losses

6. Allowance for Credit Losses


	Balance at				Balance at
	Beginning of		Charged to	Deductions/	End of
	Period (1)		Expense	Transfers (2)	Period
Allowance for credit losses
Six months ended June 30, 2020	$	5,000	—	—	$	5,000
Six months ended June 30, 2019	$	—	—	—	$	—

(1)

Represents the cumulative effect of the adoption of ASU No. 2016-13 on the Secured Note receivable.

(2)

Deductions represent accounts written off, net of recoveries.

- Definition

The entire disclosure for credit loss on financial instrument measured at amortized cost basis, net investment in lease, off-balance sheet credit exposure, and available-for-sale debt security.

+ References + Details

Property and Equipment

6 Months Ended

Jun. 30, 2020

Property and Equipment

Property and Equipment

7. Property and Equipment

Property and equipment consist of the following:


	June 30,		December 31,
	2020		2019
Land	$	5,579	$	5,579
Land improvements		2,242		2,242
Buildings		51,399		51,399
Buildings and leasehold improvements		12,504		11,691
Computer equipment		98,563		95,020
Furniture, fixtures and equipment		12,508		10,423
Internally developed software		42,536		37,175
Construction in progress		4,440		3,238
		229,771		216,767
Less accumulated depreciation and amortization		(105,705)		(97,033)
Property and equipment, net	$	124,066	$	119,734

Intangible Assets

6 Months Ended

Jun. 30, 2020

Intangible Assets

Intangible Assets

8. Intangible Assets

Amortizable intangible assets consist of the following as of:


	June 30, 2020
	Estimated	Gross				Net
	Average Useful	Carrying		Accumulated		Carrying
	Life (in years)	Amount		Amortization		Amount
University partner relationships	25	$	210,000		(12,153)	$	197,847
Trade names	1		280		(280)		—
Total amortizable intangible assets, net		$	210,280		(12,433)	$	197,847

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


2020	$	4,210
2021		8,419
2022		8,419
2023		8,419
2024		8,419
Thereafter		159,961
	$	197,847

Leases

6 Months Ended

Jun. 30, 2020

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 9 months to 10 years. At lease inception, we determine 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 had operating lease costs of $3,055 and $1,507 for the six-month periods ended June 30, 2020 and 2019, respectively.

As of June 30, 2020, the Company had $17,416 of non-cancelable operating lease commitments for classroom site locations, that had not yet commenced. These operating leases will commence in 2020 with an average lease term of 9.25 years. The Company’s weighted-average remaining lease term relating to its operating leases is 8.83 years, with a weighted-average discount rate of 3.72%. As of June 30, 2020, the Company had no financing leases.

Future payment obligations with respect to the Company’s operating leases, which were existing at June 30, 2020, by year and in the aggregate, are as follows:


Year Ending December 31,	Amount
2020	$	2,946
2021		6,499
2022		6,392
2023		5,817
2024		5,422
Thereafter		25,971
Total lease payments	$	53,047
Less interest		7,855
Present value of lease liabilities	$	45,192

Notes Payable and Other Noncurrent Liabilities

6 Months Ended

Jun. 30, 2020

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 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 of 2019 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. The Company’s obligations under the credit facility are secured by its assets, including all rights,

benefits and payments under the Secured Note and the Master Services Agreement. As of June 30, 2020, the Company is in compliance with its debt covenants.


	As of June 30,		As of December 31,
	2020		2019
Notes Payable
Note payable, quarterly payment of $8,368 starting December 31, 2019; interest at 30-Day LIBOR plus 2.00% (2.17% at June 30, 2020) through January 22, 2024	$	124,346	$	140,918
Revolving line of credit; interest at 30-Day LIBOR plus 2.0% (2.17% at June 30, 2020)		—		—
		124,346		140,918
Less: Current portion		33,144		33,144
	$	91,202	$	107,774

Payments due under the notes payable obligations are as follows as of June 30, 2020:


2020	$	16,572
2021		33,144
2022		33,144
2023		33,145
2024		8,341
Total	$	124,346

Commitments and Contingencies

6 Months Ended

Jun. 30, 2020

Commitments and Contingencies

Commitments and Contingencies

11. Commitments and Contingencies

Legal Matters

From time to time, the Company is a party to various lawsuits, claims, and other legal proceedings that arise in the ordinary course of business, some of which are covered by insurance. When the Company is aware of a claim or potential claim, it assesses the likelihood of any loss or exposure. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, the Company records a liability for the loss. If the loss is not probable or the amount of the loss cannot be reasonably estimated, the Company discloses the nature of the specific claim if the likelihood of a potential loss is reasonably possible and the amount involved could be material. With respect to the majority of pending litigation matters, the Company’s ultimate legal and financial responsibility, if any, cannot be estimated with certainty and, in most cases, any potential losses related to those matters are not considered probable.

Upon resolution of any pending legal matters, the Company may incur charges in excess of presently established reserves. Management does not believe that any such charges would, individually or in the aggregate, have a material adverse effect on the Company’s financial condition, results of operations or cash flows.

Tax, Income Tax Related

During the first quarter of 2019, the Company reached an agreement with the Arizona Department of Revenue regarding previously filed refund claims related to income tax obligations for calendar year 2008 through calendar year 2013. As a result of the agreement, the Company received a refund of $7,500, inclusive of both tax and interest. Net of the federal tax benefit, the refund has a favorable tax impact of $5,925. The Company recorded the impact of this discrete tax item in its first quarter 2019 financials.

Tax Reserves, Non-Income Tax Related

From time to time the Company has exposure to various non-income tax related matters that arise in the ordinary course of business. The Company reserve is not material for tax matters where its ultimate exposure is considered probable and the potential loss can be reasonably estimated.

Share-Based Compensation

6 Months Ended

Jun. 30, 2020

Share-Based Compensation

Share-Based Compensation

12. Share-Based Compensation

Incentive Plan

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 June 30, 2020, 1,598 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 the six months ended June 30, 2020, the Company granted 164 shares of common stock with a service vesting condition to certain of its executives, officers and employees. The restricted shares have voting rights and vest in five annual installments of 20%, with the first installment vesting in March of the calendar year following the date of grant (the “first vesting date”) and subsequent installments vesting on each of the four anniversaries of the first vesting date. Upon vesting, shares will be held in lieu of taxes equivalent to the minimum statutory tax withholding required to be paid when the restricted stock vests. During the six months ended June 30, 2020, the Company withheld 62 shares of common stock in lieu of taxes at a cost of $4,969 on the restricted stock vesting dates. In June 2020, following the annual stockholders meeting, the Company granted 3 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. A summary of the activity related to restricted stock granted under the Company’s Incentive Plan since December 31, 2019 is as follows:


		Weighted Average
	Total	Grant Date
	Shares	Fair Value per Share
Outstanding as of December 31, 2019	422	$	76.43
Granted	167	$	84.31
Vested	(155)	$	65.06
Forfeited, canceled or expired	(10)	$	85.74
Outstanding as of June 30, 2020	424	$	83.45

Stock Options

During the six months ended June 30, 2020, no options were granted. A summary of the activity since December 31, 2019 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, 2019	232	$	15.42
Granted	—	$	—
Exercised	(4)	$	20.29
Forfeited, canceled or expired	—	$	—
Outstanding as of June 30, 2020	228	$	15.34	0.69	$	17,096
Exercisable as of June 30, 2020	228	$	15.34	0.69	$	17,096

(1)	Aggregate intrinsic value represents the value of the Company’s closing stock price on June 30, 2020 ($90.53) in excess of the exercise price multiplied by the number of shares underlying options outstanding or exercisable, as applicable.

Share-based Compensation Expense

The table below outlines share-based compensation expense for the six months ended June 30, 2020 and 2019 related to restricted stock and stock options granted:


	2020		2019
Technology and academic services	$	1,026	$	861
Counseling services and support		2,694		2,649
Marketing and communication		50		41
General and administrative		1,564		1,634
Share-based compensation expense included in operating expenses		5,334		5,185
Tax effect of share-based compensation		(1,334)		(1,296)
Share-based compensation expense, net of tax	$	4,000	$	3,889

Treasury Stock

6 Months Ended

Jun. 30, 2020

Treasury Stock.

Treasury Stock

13. Treasury Stock

In July 2020, the Board of Directors increased the authorization under its existing stock repurchase program by $50,000 to a total of $300,000 in aggregate of common stock it can repurchase, from time to time, depending on market conditions and other considerations. The expiration date on the repurchase authorization is December 31, 2021. Repurchases occur at the Company’s discretion. Repurchases may be made in the open market or in privately negotiated transactions, pursuant to the applicable Securities and Exchange Commission rules. The amount and timing of future share repurchases, if any, will be made as market and business conditions warrant. During the six months ended June 30, 2020 the Company repurchased 898 shares of common stock at an aggregate cost of $69,048. At June 30, 2020, there remained $58,268 available under its current share repurchase authorization, prior to the increase made in July. Shares repurchased in lieu of taxes are not included in the repurchase plan totals as they were approved in conjunction with the restricted share awards.

Subsequent Event

6 Months Ended

Jun. 30, 2020

Subsequent Event.

Subsequent Event

14. Subsequent Event

In March 2020, the World Health Organization declared COVID-19 a global pandemic. This contagious outbreak and the related adverse public health developments, including orders to shelter-in-place, travel restrictions and mandated non-essential business closures, have adversely affected our business, primarily through reduced ancillary revenue at our most significant university partner, GCU and as a result of certain of Orbis Education’s partner institution’s students deferring the start of their program from the Summer semester to the Fall semester. There is a risk that not all of the students interested in starting their program in the Fall will be able to given potential constraints on the availability of clinical rotations. These recent developments are expected to result in lower education service revenue and lower operating income and margins in the third and fourth quarters of 2020. At this time there remains considerable uncertainty around the duration of the COVID-19 pandemic. If some of our university partners are not able to allow their students to return to their campus locations in the Fall of 2020, this will have a further impact on our service revenue, operating income and margins. These factors, or material changes in the fair value of the collateral underlying our Secured Note receivable and accounts receivable could also materially impact the allowance for expected credit losses on our Secured Note receivable and our accounts receivable. However, the related financial impact and duration of the COVID-19 pandemic cannot be reasonably estimated at this time.

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2020
Summary of Significant Accounting Policies
Principles of Consolidation	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.
Unaudited Interim Financial Information	Unaudited Interim Financial Information The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles and pursuant to the rules and regulations of the United States Securities and Exchange Commission and the instructions to Form 10-Q and Article 10, consistent in all material respects with those applied in its financial statements included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2019. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. Such interim financial information is unaudited but reflects all adjustments that in the opinion of management are necessary for the fair presentation of the interim periods presented. Interim results are not necessarily indicative of results for a full year. These consolidated financial statements should be read in conjunction with the Company’s audited financial statements and footnotes included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2019 from which the December 31, 2019 balance sheet information was derived.
Restricted Cash and Cash Equivalents	Restricted Cash and Cash Equivalents Restricted cash and cash equivalents at December 31, 2019 represented cash pledged for leased office space, which was released during the six months ended June 30, 2020.
Investments	Investments The Company considers its investments in municipal bonds, mutual funds, municipal securities, certificates of deposit and commercial paper as trading securities based on the Company’s intent for the respective security. Trading securities are carried at fair value and unrealized holding gains and losses are included in earnings. See Note 2 of our consolidated financial statements for further discussion on the Acquisition.
Arrangements with GCU	Arrangements with GCU 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 June 30, 2020, the Company had loaned $169,815 to GCU, net of repayments, including $75.0 million in June 2020. The $75.0 million that was borrowed in June 2020 was repaid in July 2020. 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. Except for identified liabilities assumed by GCU, GCE retained responsibility for all liabilities of the business arising from pre-closing operations.
Internally Developed Technology	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	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 June 30, 2020, $1,041, 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.
Leases	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.
Business Combinations	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 fair value and useful lives of the intangible assets acquired involves certain judgments and estimates. These judgements 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 in the Company’s consolidated financial statements from the acquisition date.
Goodwill and Intangible Assets	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 reviews goodwill at least annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Finite-lived intangible assets that are acquired in a business combination 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.
Derivatives and Hedging	Derivatives and Hedging Derivative financial instruments are recorded on the balance sheet as assets or liabilities and re-measured at fair value at each reporting date. For derivatives designated as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. Derivative financial instruments enable the Company to manage its exposure to interest rate risk. The Company does not engage in any derivative instrument trading activity. In 2013, the Company entered into an interest rate corridor to manage its 30-Day LIBOR interest exposure related to its variable rate debt. In December 2019 this cash flow hedge expired. The fair value of the interest rate corridor instrument as of June 30, 2019 was $187, which was included in other assets. The fair value of the derivative instrument was determined using a hypothetical derivative transaction and Level 2 of the hierarchy of valuation inputs. This derivative instrument was originally designated as a cash flow hedge of variable rate debt obligations. The adjustment of $341 for the six months ended June 30, 2019, for the effective portion of the losses on the derivative was included as a component of other comprehensive income, net of taxes. The interest rate corridor instrument reduced variable interest rate risk starting March 1, 2013 through December 20, 2019. The corridor instrument’s terms permitted the Company to hedge its interest rate risk at several thresholds; the Company paid variable interest monthly based on the 30-Day LIBOR rates until that index reached 1.5%. If 30-Day LIBOR is 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%. Therefore, the Company hedged its exposure to future variable rate cash flows through December 20, 2019.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying value of cash and cash equivalents, investments, accounts receivable, accounts payable, accrued compensation and benefits and accrued liabilities expenses approximate their fair value based on the liquidity or the short-term maturities of these instruments. The carrying value of Secured Note receivable, non-current approximates fair value as the Secured Note resulted from the GCU Transaction and was negotiated at fair market value. The carrying value of notes payable approximates fair value as it is based on 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. The fair value of investments, primarily municipal securities, was determined using Level 2 of the hierarchy of valuation inputs, with the use of inputs other than quoted prices that are observable for the assets. The 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.
Revenue Recognition	Revenue Recognition 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. 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 June 30, 2020 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 $7,275 as of June 30, 2020 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.
Allowance for Credit Losses	Allowance for Credit Losses The Company records our accounts receivable and Secured Note receivable at the net amount expected to be collected. Our accounts receivable are derived through education services provided to university partners. Our Secured Note receivable was derived through the sale of university related assets to our most significant university partner, GCU. The Company maintains an allowance for credit losses resulting from our university partners not making payments. The Company determines the adequacy of the allowance by periodically evaluating each university partners balance, considering their financial condition and credit history, and considering current and forecasted economic conditions. Since our transition to an education services company on July 1, 2018, and continued growth to 25 university partners, the Company has no credit losses with any of our university partners. In the first quarter of 2020, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments using a modified retrospective approach. This model requires consideration of a broader range of reasonable and supportable information and requires the Company to estimate expected credit losses including a measure of the expected risk of credit loss even if that risk is remote over the lifetime of the asset. Upon adoption, the Company recorded a reserve of $5,000 on its long-term Secured Note receivable. The cumulative effect for the Company upon adoption of this new standard was $3,832, net of taxes of $1,168. Bad debt expense is recorded as a technology and academic services expense in the consolidated income statement. The Company will continue to actively monitor the impact of the COVID-19 pandemic on expected credit losses.
Technology and Academic Services	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 certain services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations.
Counseling Services and Support	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, lease expense, and occupancy costs attributable to the provision of certain services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations.
Marketing and Communication	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 certain services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations. Advertising costs are expensed as incurred.
General and Administrative	General and Administrative General and administrative expenses include salaries, benefits and share-based compensation of employees engaged in corporate management, finance, human resources, compliance, and other corporate functions. 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.
Commitments and Contingencies	Commitments and Contingencies The Company accrues for contingent obligations 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.
Concentration of Credit Risk	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 requires 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 June 30, 2020 and December 31, 2019 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 educational service provider. To manage accounts receivable risk, the Company maintains an allowance for doubtful accounts, if needed. Our dependence on our most significant university partner, with 87.0% and 89.7% of total service revenue for the six-month periods ended June 30, 2020 and 2019, respectively, subjects us to the risk that declines in our customer’s operations would result in a sustained reduction in service revenue and interest income on the Secured Note for the Company.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Segment Information	Segment Information The 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 2020 and Recent Accounting Pronouncements	Accounting Pronouncements Adopted in 2020 In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments. Under this guidance, the Company is required to utilize an “expected credit loss model” on certain financial instruments, including receivables and the Secured note receivable. This model requires consideration of a broader range of reasonable and supportable information and requires the Company to estimate expected credit losses including a measure of the expected risk of credit loss even if that risk is remote over the lifetime of the asset. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Accordingly, the standard was adopted by the Company as of January 1, 2020 using a modified retrospective approach. Upon adoption, the Company recorded a reserve of $5,000 on its long-term Secured Note receivable. The cumulative effect for the Company upon adoption of this new standard was $3,832, net of tax. The adoption of this guidance did not have a material impact on the Company’s financial condition, results of operations or statements of cash flows. The Company will continue to actively monitor the impact of the COVID-19 pandemic on expected credit losses. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The amendments in the ASU improve the Codification by eliminating inconsistencies and providing clarifications. Under this guidance, the Company made an election not to measure an allowance for credit losses on its accrued interest receivable amounts earned on the Secured Note receivable. The Company will write off any uncollectible accrued interest in a timely manner. The adoption of this guidance did not have a material impact on the Company’s financial condition, results of operations or statements of cash flows. 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. Accordingly, the standard was adopted by us as of January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s financial condition, results of operations or statements of cash flows. Recent Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU is intended to simplify various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods, with early adoption permitted. An entity that elects early adoption must adopt all the amendments in the same period. Most amendments within this ASU are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company is currently evaluating the impact of the new standard on our consolidated financial statements and related disclosures. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effect of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company plans to elect the optional expedient for its credit facility by prospectively adjusting the effective interest rate if the cessation of the London Interbank Offered Rate (LIBOR) occurs. The Company does not believe the adoption of the reference rate reform will have a material impact on the Company’s financial condition, results of operations or statements of cash flows. 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.

Acquisition (Tables)

6 Months Ended

Jun. 30, 2020

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

Net Income Per Common Share (Tables)

6 Months Ended

Jun. 30, 2020

Net Income Per Common Share

Schedule of Weighted Average Number of Common Shares Outstanding


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2020	2019	2020	2019
Denominator:
Basic weighted average shares outstanding	46,893	47,851	47,174	47,788
Effect of dilutive stock options and restricted stock	258	462	283	519
Diluted weighted average shares outstanding	47,151	48,313	47,457	48,307

Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2020

Allowance for Credit Losses

Schedule of Allowance for Doubtful Accounts


	Balance at				Balance at
	Beginning of		Charged to	Deductions/	End of
	Period (1)		Expense	Transfers (2)	Period
Allowance for credit losses
Six months ended June 30, 2020	$	5,000	—	—	$	5,000
Six months ended June 30, 2019	$	—	—	—	$	—

(1)

Represents the cumulative effect of the adoption of ASU No. 2016-13 on the Secured Note receivable.

(2)

Deductions represent accounts written off, net of recoveries.

Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2020

Property and Equipment

Schedule of Property and Equipment


	June 30,		December 31,
	2020		2019
Land	$	5,579	$	5,579
Land improvements		2,242		2,242
Buildings		51,399		51,399
Buildings and leasehold improvements		12,504		11,691
Computer equipment		98,563		95,020
Furniture, fixtures and equipment		12,508		10,423
Internally developed software		42,536		37,175
Construction in progress		4,440		3,238
		229,771		216,767
Less accumulated depreciation and amortization		(105,705)		(97,033)
Property and equipment, net	$	124,066	$	119,734

Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2020

Intangible Assets

Summary of amortizable intangible assets


	June 30, 2020
	Estimated	Gross				Net
	Average Useful	Carrying		Accumulated		Carrying
	Life (in years)	Amount		Amortization		Amount
University partner relationships	25	$	210,000		(12,153)	$	197,847
Trade names	1		280		(280)		—
Total amortizable intangible assets, net		$	210,280		(12,433)	$	197,847

Schedule of amortization expense for university partner relationships and trade names

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


2020	$	4,210
2021		8,419
2022		8,419
2023		8,419
2024		8,419
Thereafter		159,961
	$	197,847

Leases (Tables)

6 Months Ended

Jun. 30, 2020

Leases

Schedule of future payment obligations with respect to operating leases


Year Ending December 31,	Amount
2020	$	2,946
2021		6,499
2022		6,392
2023		5,817
2024		5,422
Thereafter		25,971
Total lease payments	$	53,047
Less interest		7,855
Present value of lease liabilities	$	45,192

Notes Payable and Other Noncurrent Liabilities (Tables)

6 Months Ended

Jun. 30, 2020

Notes Payable and Other Noncurrent Liabilities

Schedule of Notes Payable


	As of June 30,		As of December 31,
	2020		2019
Notes Payable
Note payable, quarterly payment of $8,368 starting December 31, 2019; interest at 30-Day LIBOR plus 2.00% (2.17% at June 30, 2020) through January 22, 2024	$	124,346	$	140,918
Revolving line of credit; interest at 30-Day LIBOR plus 2.0% (2.17% at June 30, 2020)		—		—
		124,346		140,918
Less: Current portion		33,144		33,144
	$	91,202	$	107,774

Schedule of payments due under notes payable obligations

Payments due under the notes payable obligations are as follows as of June 30, 2020:


2020	$	16,572
2021		33,144
2022		33,144
2023		33,145
2024		8,341
Total	$	124,346

Share-Based Compensation Plans (Tables)

6 Months Ended

Jun. 30, 2020

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, 2019	422	$	76.43
Granted	167	$	84.31
Vested	(155)	$	65.06
Forfeited, canceled or expired	(10)	$	85.74
Outstanding as of June 30, 2020	424	$	83.45

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, 2019	232	$	15.42
Granted	—	$	—
Exercised	(4)	$	20.29
Forfeited, canceled or expired	—	$	—
Outstanding as of June 30, 2020	228	$	15.34	0.69	$	17,096
Exercisable as of June 30, 2020	228	$	15.34	0.69	$	17,096

(1)	Aggregate intrinsic value represents the value of the Company’s closing stock price on June 30, 2020 ($90.53) in excess of the exercise price multiplied by the number of shares underlying options outstanding or exercisable, as applicable.

Schedule of Share-Based Compensation Expense

The table below outlines share-based compensation expense for the six months ended June 30, 2020 and 2019 related to restricted stock and stock options granted:


	2020		2019
Technology and academic services	$	1,026	$	861
Counseling services and support		2,694		2,649
Marketing and communication		50		41
General and administrative		1,564		1,634
Share-based compensation expense included in operating expenses		5,334		5,185
Tax effect of share-based compensation		(1,334)		(1,296)
Share-based compensation expense, net of tax	$	4,000	$	3,889

Nature of Business (Details) $ in Thousands		6 Months Ended
Nature of Business (Details) $ in Thousands	Jan. 22, 2019 USD ($)	Jun. 30, 2020 item Program
Nature Of Operations [Line Items]
Number of university partners		25
Orbis Education
Nature Of Operations [Line Items]
Purchase price \| $	$ 361,184
Grand Canyon University
Nature Of Operations [Line Items]
Number of colleges operated		9
Orbis Education
Nature Of Operations [Line Items]
Number of primary academic programs offered \| Program		4

Acquisition (Details) $ in Thousands		6 Months Ended
Acquisition (Details) $ in Thousands	Jan. 22, 2019 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2020 USD ($) item Institution	Dec. 31, 2019 USD ($)
Acquisition
Number of university partners \| item			25
Goodwill			$ 160,766	$ 160,766
Orbis Education
Acquisition
Purchase price	$ 361,184
Goodwill	157,825
Transaction costs		$ 3,966
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
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 \| Amended and restated credit agreement
Acquisition
Purchase price	171,034
Acquisition consideration funded by credit agreement	$ 191,000
Orbis Education
Acquisition
Number of university partners \| Institution			25

Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands			1 Months Ended		3 Months Ended		6 Months Ended
	Jan. 01, 2020 USD ($)	Jul. 01, 2018 USD ($)	Jul. 31, 2020 USD ($)	Jun. 30, 2020 USD ($) item	Jun. 30, 2020 USD ($) item	Jun. 30, 2019 USD ($)	Jun. 30, 2020 USD ($) item segment	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Other assets				$ 1,794	$ 1,794		$ 1,794		$ 1,706
Number of operating segments \| segment							1
Number of reporting units \| segment							1
Unbilled revenue				7,275	7,275		$ 7,275
Amounts written off							0
Allowance for doubtful accounts				0	0		0
Lease liabilities				$ 45,192	$ 45,192		$ 45,192
Number of university partners \| item				25	25		25
Accounts receivable credit losses							$ 0
Allowance for credit losses	$ 5,000			$ 5,000	$ 5,000		5,000
Retained earnings				1,455,907	1,455,907		1,455,907		1,341,344
Income tax expense					15,346	$ 14,125	$ 38,137	$ 25,581
Revenue Benchmark \| Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage							87.00%	89.70%
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]
Estimated average useful life							4 years
Other assets				$ 1,041	$ 1,041		$ 1,041
Interest Rate Corridor \| 30 Day LIBOR equal to 1.5% through 3.0%
Summary Of Significant Accounting Policies [Line Items]
Interest rate spread on 30 Day LIBOR				1.50%	1.50%		1.50%
Interest Rate Corridor \| 30 Day LIBOR exceeds 3.0%
Summary Of Significant Accounting Policies [Line Items]
Interest rate spread on 30 Day LIBOR				1.50%	1.50%		1.50%
Cash Flow Hedging
Summary Of Significant Accounting Policies [Line Items]
Effective portion of losses on derivatives included as a component of other comprehensive income, net of taxes							$ 341
Other Assets
Summary Of Significant Accounting Policies [Line Items]
Fair values of interest rate corridor instrument									$ 187
Minimum
Summary Of Significant Accounting Policies [Line Items]
Initial contract terms							7 years
Minimum \| Interest Rate Corridor \| 30 Day LIBOR equal to 1.5% through 3.0%
Summary Of Significant Accounting Policies [Line Items]
30 Day LIBOR index rate				1.50%	1.50%		1.50%
Minimum \| Interest Rate Corridor \| 30 Day LIBOR exceeds 3.0%
Summary Of Significant Accounting Policies [Line Items]
30 Day LIBOR index rate				3.00%	3.00%		3.00%
Maximum
Summary Of Significant Accounting Policies [Line Items]
Initial contract terms							15 years
Maximum \| Interest Rate Corridor \| 30-day LIBOR
Summary Of Significant Accounting Policies [Line Items]
30 Day LIBOR index rate				1.50%	1.50%		1.50%
Maximum \| Interest Rate Corridor \| 30 Day LIBOR equal to 1.5% through 3.0%
Summary Of Significant Accounting Policies [Line Items]
30 Day LIBOR index rate				3.00%	3.00%		3.00%
Grand Canyon University
Summary Of Significant Accounting Policies [Line Items]
Purchase price of assets		$ 870,097
Interest rate on Secured Note		6.00%
Term of additional lending to GCU for approved capital expenditures		3 years
Additional funding provided to GCU, net of repayments				$ 75,000			$ 169,815
Repayment of funding to GCU			$ 75,000
Master Services Agreement \| Grand Canyon University
Summary Of Significant Accounting Policies [Line Items]
Percentage of tuition and fee revenue used for closing of purchase agreement		60.00%
Restatement Adjustment \| ASU 2016-13
Summary Of Significant Accounting Policies [Line Items]
Allowance for credit losses	5,000
Retained earnings	(3,832)
Income tax expense	$ 1,168

Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Investments
Investments	$ 14,691	$ 21,601

Net Income Per Common Share - Summary of Weighted Average Number of Common Shares Outstanding (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Denominator:
Basic weighted average shares outstanding	46,893	47,851	47,174	47,788
Effect of dilutive stock options and restricted stock	258	462	283	519
Diluted weighted average shares outstanding	47,151	48,313	47,457	48,307

Net Income Per Common Share - Additional Information (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Restricted Stock Grants
Antidilutive securities excluded from computation of earnings per share
Stock awards outstanding excluded from the calculation of diluted earnings	81	0	182	0

Allowance for Credit Losses (Details) $ in Thousands	Jun. 30, 2020 USD ($)
Allowance for credit losses
Balance at Beginning of Period	$ 5,000
Balance at End of Period	$ 5,000

Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Property and Equipment
Property and equipment	$ 229,771	$ 216,767
Less accumulated depreciation and amortization	(105,705)	(97,033)
Property and equipment, net	124,066	119,734
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	51,399
Buildings and Leasehold Improvements [Member]
Property and Equipment
Property and equipment	12,504	11,691
Computer Equipment
Property and Equipment
Property and equipment	98,563	95,020
Furniture, Fixtures and Equipment
Property and Equipment
Property and equipment	12,508	10,423
Internally Developed Software [Member]
Property and Equipment
Property and equipment	42,536	37,175
Construction in Progress [Member]
Property and Equipment
Property and equipment	$ 4,440	$ 3,238

Intangible Assets - Net Intangible Assets (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020 USD ($)
Intangible Assets
Gross Carrying Amount	$ 210,280
Accumulated Amortization	(12,433)
Net Carrying Amount	$ 197,847
University partner relationships
Intangible Assets
Estimated average useful life	25 years
Gross Carrying Amount	$ 210,000
Accumulated Amortization	(12,153)
Net Carrying Amount	$ 197,847
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	Jun. 30, 2020 USD ($)
Amortization expense
Net Carrying Amount	$ 197,847
University partner relationships and trade names
Amortization expense
2019	4,210
2021	8,419
2022	8,419
2023	8,419
2024	8,419
Thereafter	159,961
Net Carrying Amount	$ 197,847

Leases (Details) $ in Thousands	6 Months Ended
Leases (Details) $ in Thousands	Jun. 30, 2020 USD ($) lease	Jun. 30, 2019 USD ($)
Leases
Lessee, Operating Lease, Existence of Option to Extend [true false]	false
Operating lease costs	$ 3,055	$ 1,507
Non-cancelable operating lease commitments	$ 17,416
Weighted-average remaining lease term	8 years 9 months 29 days
Weighted-average discount rate of operating leases	3.72%
Number of financing leases \| lease	0
Minimum
Leases
Term of operating leases	9 months
Maximum
Leases
Term of operating leases	10 years
Average lease term of non-cancelable operating lease commitments not yet commenced	9 years 3 months

Leases - Future Payment Obligations (Details) $ in Thousands	Jun. 30, 2020 USD ($)
Leases
2020	$ 2,946
2021	6,499
2022	6,392
2023	5,817
2024	5,422
Thereafter	25,971
Total lease payments	53,047
Less interest	7,855
Present value of lease liabilities	$ 45,192

Notes Payable and Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands			3 Months Ended	6 Months Ended	12 Months Ended
	Oct. 31, 2019	Jan. 22, 2019	Mar. 31, 2019	Jun. 30, 2020	Dec. 31, 2019
Notes Payable and Other Noncurrent Liabilities
Repayments of term loan		$ 59,850
Cash collateral released on repayment of debt		61,667
Amended and restated credit agreement
Notes Payable and Other Noncurrent Liabilities
Amount of credit facilities		$ 325,000
Term of credit facility		5 years
Loan modification costs expensed			$ 150
Amended and restated credit agreement \| Orbis Education
Notes Payable and Other Noncurrent Liabilities
Acquisition consideration funded by credit agreement		$ 191,000
Amended and restated credit agreement \| 30-Day LIBOR
Notes Payable and Other Noncurrent Liabilities
Margin on variable interest rate		2.00%
Amended and restated credit agreement \| 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
Amended and restated credit agreement \| Term loan facility \| 30-Day LIBOR
Notes Payable and Other Noncurrent Liabilities
Margin on variable interest rate				2.17%	2.00%
Amended and restated credit agreement \| Revolving credit facility
Notes Payable and Other Noncurrent Liabilities
Amount of credit facilities		81,250
Loan modification costs		596
Amended and restated credit agreement \| Revolving credit facility \| Orbis Education
Notes Payable and Other Noncurrent Liabilities
Acquisition consideration funded by credit agreement		$ 6,250
Amended and restated credit agreement \| Revolving credit facility \| 30-Day LIBOR
Notes Payable and Other Noncurrent Liabilities
Margin on variable interest rate				2.17%	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		6 Months Ended	12 Months Ended
	Jan. 22, 2019	Jun. 30, 2020	Dec. 31, 2019
Notes Payable and Other Noncurrent Liabilities
Less: Current portion		$ 33,144	$ 33,144
Notes payable, less current portion		91,202	107,774
Amended and restated credit agreement
Notes Payable and Other Noncurrent Liabilities
Notes payable including current portion		124,346	140,918
Less: Current portion		33,144	33,144
Notes payable, less current portion		91,202	107,774
Amended and restated credit agreement \| 30-Day LIBOR
Notes Payable and Other Noncurrent Liabilities
Margin on variable interest rate	2.00%
Amended and restated credit agreement \| Term loan facility
Notes Payable and Other Noncurrent Liabilities
Quarterly payment of notes payable		8,368
Notes payable including current portion		$ 124,346	$ 140,918
Amended and restated credit agreement \| Term loan facility \| 30-Day LIBOR
Notes Payable and Other Noncurrent Liabilities
Margin on variable interest rate		2.17%	2.00%
Amended and restated credit agreement \| Revolving credit facility \| 30-Day LIBOR
Notes Payable and Other Noncurrent Liabilities
Margin on variable interest rate		2.17%	2.00%

Notes Payable and Other Noncurrent Liabilities - Payments Due Under Notes Payable Obligations (Details) - Amended and restated credit agreement $ in Thousands	Jun. 30, 2020 USD ($)
Payments due under notes payable obligations:
2020	$ 16,572
2021	33,144
2022	33,144
2023	33,145
2024	8,341
Total	$ 124,346

Commitments and Contingencies (Details) $ in Thousands	3 Months Ended
Commitments and Contingencies (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Commitments and Contingencies
Income tax refund related to agreement on previously filed refund claims	$ 7,500
Favorable tax impact of refund	$ 5,925

Share-Based Compensation Plans - Additional Information (Details) shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2020 USD ($) item shares
2017 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant	1,598
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 granted	167
Shares withheld for taxes	62
Common stock in lieu of taxes \| $	$ 4,969
Forfeiture of shares by transferred employees at closing of transaction	10
Restricted Stock Grants \| 2008 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted	164
Vesting period	5 years
Number of anniversaries of the vesting date following the date of grant \| item	4
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]
Options granted	0

Share-Based Compensation Plans - Summary of Activity Related to Restricted Stock Granted under Company's Incentive Plan (Details) - Restricted Stock Grants shares in Thousands	6 Months Ended
	Jun. 30, 2020 $ / shares shares
Total Shares
Total Shares, Outstanding, Beginning Balance \| shares	422
Total Shares, Granted \| shares	167
Total Shares, Vested \| shares	(155)
Total Shares, Forfeited, canceled or expired \| shares	(10)
Total Shares, Outstanding, Ending Balance \| shares	424
Weighted Average Grant Date
Weighted Average Grant Date Fair Value, Beginning Balance \| $ / shares	$ 76.43
Weighted Average Grant Date Fair Value, Granted \| $ / shares	84.31
Weighted Average Grant Date Fair Value, Vested \| $ / shares	65.06
Weighted Average Grant Date Fair Value, Forfeited, canceled or expired \| $ / shares	85.74
Weighted Average Grant Date Fair Value, Ending Balance \| $ / shares	$ 83.45

Share-Based Compensation Plans - Summary of Activity Related to Stock Options Granted under Company's Incentive Plan (Details) - Employee Stock Option [Member] $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2020 USD ($) $ / shares shares
Total Shares
Total Shares outstanding, Beginning balance	232
Total Shares, Granted	0
Total Shares, Exercised	(4)
Total Shares outstanding, Ending balance	228
Total Shares, Exercisable	228
Weighted Average Exercise Price Per Share
Weighted Average Exercise Price per Share Outstanding, Beginning balance \| $ / shares	$ 15.42
Weighted Average Exercise Price per Share, Exercised \| $ / shares	20.29
Weighted Average Exercise Price per Share Outstanding, Ending balance \| $ / shares	15.34
Weighted Average Exercise Price per Share, Exercisable \| $ / shares	$ 15.34
Weighted Average Remaining Term and Aggregate Intrinsic Value
Weighted Average Remaining Contractual Term (Years), Outstanding	8 months 8 days
Weighted Average Remaining Contractual Term (Years), Exercisable	8 months 8 days
Aggregate Intrinsic Value, Outstanding \| $	$ 17,096
Aggregate Intrinsic Value, Exercisable \| $	$ 17,096

Share-Based Compensation Plans - Summary of Activity Related to Stock Options Granted under Company's Incentive Plan - Additional Information (Details)	Jun. 30, 2020 $ / shares
Share-Based Compensation
Value of closing stock price	$ 90.53

Share-Based Compensation Plans - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 5,334	$ 5,185
Tax effect of share-based compensation	(1,334)	(1,296)
Share-based compensation expense, net of tax	4,000	3,889
Technology and Academic Services
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	1,026	861
Counseling Services and Support
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	2,694	2,649
Marketing and Communication [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	50	41
University related expenses
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 1,564	$ 1,634

Treasury Stock (Details) - USD ($) shares in Thousands, $ in Thousands	1 Months Ended	6 Months Ended
	Jul. 31, 2020	Jun. 30, 2020	Jun. 30, 2019
Treasury Stock
Common stock acquired, cost		$ 69,048	$ 10,340
Common stock repurchase authorization
Treasury Stock
Increase in stock repurchase plan authorized	$ 50,000
Authorized amount for repurchase of common stock	$ 300,000
Common stock acquired, shares		898
Common stock acquired, cost		$ 69,048
Remaining authorized repurchase amount		$ 58,268