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Fair Value Measurement
 12 Months Ended
Dec. 31, 2014
Fair Value Measurement [Abstract]  
Fair Value Measurement
6.
 Fair Value Measurement
 
Assets and liabilities measured at fair value on a recurring basis consist of the following as of December 31, 2014 (in thousands):
 
 
        Fair Value Measurements at Reporting Date Using   
     December 31,
2014		   Quoted Prices in
Active Markets for
Identical Assets/
Liabilities
(Level 1)		   Significant
Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)
Assets:
                                                  
Cash equivalents:
                                                  
Money market funds
           $8,275       $8,275       $—        $—   
Interest rate swap
             143          —          143          —   
Total assets at fair value on a recurring basis
           $8,418       $8,275       $143        $—   
Liabilities:
                                                  
Other long-term liabilities:
                                                  
Deferred payments
             2,398         —          —          2,398  
Total liabilities at fair value on a recurring basis
           $2,398       $—        $—        $2,398  
 
Assets and liabilities measured at fair value on a recurring basis consist of the following as of December 31, 2013 (in thousands):
 
        Fair Value Measurements at Reporting Date Using   
     December 31,
2013		   Quoted Prices in
Active Markets for
Identical Assets/
Liabilities
(Level 1)		   Significant
Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)
Assets:
                                                  
Cash equivalents:
                                                   
Money market funds
           $8,382       $8,382       $—        $—   
Interest rate swaps
             45          —          45          —   
Total assets at fair value on a recurring basis
           $8,427       $8,382       $45        $—   
Liabilities:
                                                  
Other long-term liabilities:
                                                  
Deferred payments
             2,115         —          —          2,115  
Total liabilities at fair value on a recurring basis
           $2,115       $—        $—        $2,115  
 
The Company measures the above items on a recurring basis at fair value as follows:
 
•
 Money market funds — Classified in Level 1 is excess cash the Company holds in both taxable and tax-exempt money market funds and are included in Cash and cash equivalents in the accompanying Consolidated Balance Sheets. The Company records any net unrealized gains and losses for changes in fair value as a component of Accumulated other comprehensive income in Stockholders’ equity. The Company’s cash and cash equivalents not held in money market funds at December 31, 2013 and 2014, approximate fair value and are not disclosed in the above tables because of the short-term nature of the financial instruments.

•
 Interest rate swap — The Company has an interest rate swap with a notional amount of $118.8 million as of December 31, 2014, used to minimize the interest rate exposure and fix the variable interest rate on a portion of the Company’s variable rate debt. The swap is classified within Level 2 and is valued using readily available pricing sources which utilize market observable inputs including the current variable interest rate for similar types of instruments.
 
•
 Deferred payments — The Company acquired certain assets and entered into a deferred payment arrangement with one of the sellers in connection with an acquisition completed in 2011, which is classified within Level 3 as there is no liquid market for similarly priced instruments. The deferred payment is valued using a discounted cash flow model that encompasses significant unobservable inputs to estimate the operating results of the acquired assets. The assumptions used to prepare the discounted cash flows include estimates for interest rates, enrollment growth, retention rates and pricing strategies. These assumptions are subject to change as the underlying data sources evolve and the program matures.
 
The Company’s lease loss liability incorporates an assessment of current sublease market conditions and uses Level 3 inputs, but is not deemed a fair value liability as the future lease payments are required to be discounted using the Company’s incremental borrowing rate at the date of lease abandonment without subsequent adjustment. See Note 3 for further discussion of the Company’s lease loss liability.
 
At December 31, 2014, the carrying value of the Company’s debt was $118.8 million. All of the Company’s debt is variable interest rate debt and is classified within Level 2 because it is valued using readily available pricing sources which utilize market observable inputs. The Company has determined the carrying amount approximates fair value.
 
The Company did not change its valuation techniques associated with recurring fair value measurements from prior periods, and no assets or liabilities were transferred between levels of the fair value hierarchy during the years ended December 31, 2013 or 2014. Assets measured at fair value on a non-recurring basis as of December 31, 2013 and 2014, include $6.8 million of goodwill and $1.6 million of other indefinite-lived intangible assets. Changes in the fair value of the Company’s Level 3 liability that was outstanding throughout the year ended December 31, 2014 are as follows (in thousands):
 
     Deferred
Payments
Balance at December 31, 2013
           $2,115  
Amounts earned
             (545)  
Adjustments to fair value
             828   
Transfers in or out of Level 3
             —   
Balance at December 31, 2014
           $2,398