Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies [Abstract]

12. Commitments and Contingencies

The University participates in various federal student financial assistance programs which are subject to audit by agencies including the Department of Education, the Veterans Administration, and the Department of Defense. Management believes that the potential effects of audit adjustments, if any, for the periods currently under audit will not have a material adverse effect, individually or in the aggregate, on the Company’s consolidated financial position, results of operations or cash flows.

As of December 31, 2016, the Company had 85 long-term, non-cancelable operating leases for campuses and other administrative facilities. Rent expense was $35.7 million, $37.5 million, and $33.7 million for the years ended December 31, 2014, 2015, and 2016, respectively. Rent expense for 2015 and 2016 includes benefits of approximately $0.4 million and $1.9 million, respectively, to reduce the Company’s liability for losses on facilities no longer in use. The rents on the Company’s leases are subject to annual increases.

The minimum rental commitments for the Company as of December 31, 2016 are as follows (in thousands):


	Minimum
	rental
	commitments
2017	$	33,665
2018		29,731
2019		24,384
2020		19,440
2021		14,300
Thereafter		14,027
Total	$	135,547