9. RESTRUCTURING CHARGES

During the past several years, we have carried out reductions in force related to the continued reorganization of our corporate and campus functions to better align with current total enrollments and made decisions to teach out a number of campuses, meaning gradually close the campuses through an orderly process. As part of the process to wind down these teach-out campuses, the Company also announced that it will align its corporate overhead to support a more streamlined and focused operating entity. Most notably, we have recorded charges within our All Other Campuses segment and our corporate functions as we continue to align our overall management structure. Each of our teach-out campuses offer current students the reasonable opportunity to complete their course of study. The majority of these teach-out campuses have ceased operations as of December 31, 2017, with the remainder expected to cease operations in 2018.

The following table details the changes in our accrual for severance and related costs associated with all restructuring events during the years ended December 31, 2017, 2016 and 2015 (dollars in thousands):

	Balance, Beginning of Period		Severance and related charges ^{(1) (2)}		Payments			Non-cash adjustments ⁽³⁾			Balance, End of Period
For the year ended December 31, 2017	$	8,686	$	-	$	(6,767	)	$	251		$	2,170
For the year ended December 31, 2016	$	18,985	$	507	$	(11,015	)	$	209		$	8,686
For the year ended December 31, 2015	$	2,712	$	24,085	$	(7,518	)	$	(294	)	$	18,985

_________________________

(1)	Includes charges related to COBRA and outplacement services which are assumed to be completed by the third month following an employee’s departure.

(2)	Severance charges will result in future cash payments through 2018.

(3)	Includes cancellations due to employee departures prior to agreed upon end dates, employee transfers to open positions within the organization and subsequent adjustments to severance and related costs.

Severance and related expenses for the years ended December 31, 2017, 2016 and 2015 by reporting segment is as follows (dollars in thousands):

	For the Year Ended December 31,
	2017		2016		2015
CTU	$	-	$	18	$	405
AIU		-		66		673
Total University Group		-		84		1,078
Corporate and Other		-		388		4,631
Subtotal		-		472		5,709
All Other Campuses		-		35		18,376
Total	$	-	$	507	$	24,085

The current portion of the accrual for severance and related charges was $2.1 million and $7.3 million, respectively, as of December 31, 2017 and 2016, which is recorded within current accrued expenses – payroll and related benefits; the long-term portion of less than $0.1 million and $1.4 million is recorded within other non-current liabilities on our consolidated balance sheets as of December 31, 2017 and 2016, respectively.

In addition, as of December 31, 2017, we have an accrual of approximately $0.5 million related to retention bonuses that have been offered to certain employees. These amounts are recorded ratably over the period the employees are retained.

In addition to the severance charges detailed above, a number of the teach-out campuses will have remaining lease obligations following the eventual campus closure, with the longest lease term being through 2022. The total remaining estimated charge as of December 31, 2017, for all restructuring events reported within continuing operations related to the remaining lease obligation for these leases, once the campus completes the close process, and adjusted for possible lease buyouts and sublease assumptions is approximately $3 million. The amount related to each campus will be recorded at each campus closure date based on current estimates and assumptions related to the amount and timing of sublease income. This is in addition to approximately $67.7 million of charges related to remaining obligations for continuing operations which were recorded since 2015. See Note 7 “Leases” and Note 17 “Discontinued Operations” for further information regarding remaining lease obligations of continuing operations and discontinued operations.