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Restructuring and Related Charges
 12 Months Ended
Dec. 31, 2015
Restructuring and Related Charges [Abstract]  
Restructuring and Related Charges

3.     Restructuring and Related Charges

In October 2013, the Company implemented a restructuring to better align the Company’s resources with its current student enrollments. This restructuring included the closing of 20 physical locations and reductions in the number of campus-based and corporate employees.

The following details the changes in the Company’s restructuring liability by type of cost during the three years ended December 31, 2015 (in thousands):

 

Lease
and Related
Costs, Net

 

 

 

Severance
and Other
Employee
Separation Costs

 

Total

Balance at December 31, 2012

 

$

—

 

 

 

 

$

—

 

 

$

—

 

Restructuring and other charges(1)

 

 

47,792

 

 

 

 

 

6,898

 

 

 

54,690

 

Payments

 

 

(103

)

 

 

 

 

(6,120

)

 

 

(6,223

)

Adjustments(2)

 

 

(5,139

)

 

 

 

 

1,438

 

 

 

(3,701

)

Balance at December 31, 2013(1)

 

 

42,550

 

 

 

 

 

2,216

 

 

 

44,766

 

Payments

 

 

(12,418

)

 

 

 

 

(2,138

)

 

 

(14,556

)

Adjustments(2)

 

 

(2,849

)

 

 

 

 

(78

)

 

 

(2,927

)

Balance at December 31, 2014(1)

 

 

27,283

 

 

 

 

 

—

 

 

 

27,283

 

Payments

 

 

(7,754

)

 

 

 

 

—

 

 

 

(7,754

)

Adjustments(2)

 

 

526

 

 

 

 

 

—

 

 

 

526

 

Balance at December 31, 2015(1)

 

$

20,055

 

 

 

 

$

—

 

 

$

20,055

 

____________

(1)    The current portion of restructuring liabilities was $6.0 million and $4.8 million as of December 31, 2014 and December 31, 2015, respectively, which are included in accounts payable and accrued expenses. The long-term portion is included in other long-term liabilities.

(2)    Adjustments for lease and related costs include accretion of interest on lease costs, partially offset by changes in the timing and expected income from sublease agreements signed during the period. Adjustments for severance and other employee separation costs include amounts related to employees who were re-hired to other roles within the Company and were not paid severance.

Lease and Related Costs, Net — The Company recorded approximately $36.0 million of aggregate charges representing the estimated fair value of future contractual operating lease obligations, which were recorded in the fourth quarter of 2013, when the Company ceased using the respective facilities. Lease obligations, some of which continue through 2022, are measured at fair value using a discounted cash flow approach encompassing significant unobservable inputs (Level 3). The estimation of future cash flows includes non-cancelable contractual lease costs over the remaining terms of the leases discounted at the Company’s marginal borrowing rate of 4.5%, partially offset by estimated future sublease rental income, which involves significant judgment. The Company’s estimate of the amount and timing of sublease rental income considers subleases that have been executed and subleases expected to be executed based on current commercial real estate market data and conditions, and other qualitative factors specific to the facilities. The estimates are subject to adjustment as market conditions change or as new information becomes available, including the execution of additional sublease agreements.

Severance and Other Employee Separation Costs — The Company implemented workforce reductions in order to better align its human capital resources with the evolving needs of students. A total of $6.9 million in severance and other employee separation costs were recorded in the year ended December 31, 2013, all of which has subsequently been paid.