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Income Taxes | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | 12. Income Taxes The University has deferred tax assets and liabilities that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets are subject to periodic recoverability assessments. Realization of the deferred tax assets, net of deferred tax liabilities is principally dependent upon achievement of projected future taxable income. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more-likely-than-not that the University will realize the benefits of these deductible differences. The University has no valuation allowance at December 31, 2015 and 2014. The components of income tax expense (benefit) are as follows:
|  | Year Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 63,481 |  |  | $ | 50,980 |  |  | $ | 40,949 |
State |  |  | 5,222 |  |  |  | 6,216 |  |  |  | 5,540 |
|  |  | 68,703 |  |  |  | 57,196 |  |  |  | 46,489 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 4,473 |  |  |  | 2,734 |  |  |  | 4,209 |
State |  |  | 557 |  |  |  | 418 |  |  |  | 898 |
|  |  | 5,030 |  |  |  | 3,152 |  |  |  | 5,107 |
Tax expense recorded as an increase of paid-in capital |  |  | 3,863 |  |  |  | 7,884 |  |  |  | 4,588 |
|  | $ | 77,596 |  |  | $ | 68,232 |  |  | $ | 56,184 |
A reconciliation of income tax computed at the U.S. statutory rate to the effective income tax rate is as follows:
|  | Year Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Statutory U.S. federal income tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
State income taxes, net of federal tax benefit |  |  | 3.3 |  |  |  | 4.3 |  |  |  | 5.5 |
State tax credits, net of federal effect |  |  | (1.2 | ) |  |  | (1.5 | ) |  |  | (1.8 | )
Nondeductible expenses |  |  | 0.1 |  |  |  | 0.1 |  |  |  | 0.3 |
Other |  |  | (0.1 | ) |  |  | 0.1 |  |  |  | (0.2 | )
Effective income tax rate |  |  | 37.1 | % |  |  | 38.0 | % |  |  | 38.8 | %
Significant components of the University’s deferred income tax assets and liabilities are as follows:
|  | As of December 31, |
|  | 2015 |  |  | 2014 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for doubtful accounts |  | $ | 2,051 |  |  | $ | 2,654 |
Share-based compensation |  |  | 9,330 |  |  |  | 8,487 |
Deferred tuition revenue |  |  | 1,336 |  |  |  | 610 |
Deferred scholarship |  |  | 1,091 |  |  |  | 959 |
Deferred rent |  |  | 1,078 |  |  |  | 1,290 |
Intangibles |  |  | 1,778 |  |  |  | 3,312 |
Other |  |  | 3,482 |  |  |  | 2,871 |
Deferred tax assets |  |  | 20,146 |  |  |  | 20,183 |
Deferred tax liability: |  |  |  |  |  |  |  |
Property and equipment |  |  | (33,710 | ) |  |  | (28,203 | )
Other |  |  | (1,291 | ) |  |  | (1,805 | )
Deferred tax liability |  |  | (35,001 | ) |  |  | (30,008 | )
Net deferred tax liability |  | $ | (14,855 | ) |  | $ | (9,825 | )
The deferred tax amounts above have been classified in the University’s balance sheets as follows:
|  | As of December 31, |
|  | 2015 |  |  | 2014 |
Deferred income taxes, current |  | $ | 6,448 |  |  | $ | 6,149 |
Deferred income taxes, non-current |  |  | (21,303 | ) |  |  | (15,974 | )
Net deferred tax liability |  | $ | (14,855 | ) |  | $ | (9,825 | )
The University recognizes the impact of a tax position in its financial statements if that position is more-likely-than-not to be sustained on audit, based on the technical merits of the position. The University discloses all unrecognized tax benefits, which includes the reserves recorded for uncertain tax positions on filed tax returns and the unrecognized portion of affirmative claims. The University recognizes interest and penalties related to uncertain tax positions in income tax expense. Unrecognized tax benefits as of December 31, 2015 and 2014 were not significant. The University is subject to taxation in the United States, in states with an income tax and in several local jurisdictions. During the second quarter ended June 30, 2014, the Internal Revenue Service (“IRS”) commenced an examination of the University’s 2011 income tax return. The IRS concluded its audit of the University’s 2011 income tax return with no changes to our reported tax or tax liability. Additionally, we are currently under audit by several state taxing authorities. We do not anticipate any material adjustments as a result of these audits. As of December 31, 2015, the earliest tax year still subject to examination for federal and state purposes is 2012 and 2011, respectively.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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