Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies [Abstract]

15. Commitments and Contingencies

The Universities participate 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, 2018, the Company had 87 long-term, non-cancelable operating leases for campuses and other administrative facilities. Rent expense was $33.7 million, $33.6 million, and $35.9 million for the years ended December 31, 2016, 2017, and 2018, respectively. Rent expense for 2016 includes a benefit of approximately $1.9 million, and rent expense for both 2017 and 2018 includes a charge of approximately $0.3 million in each year to adjust the Company’s liability for losses on facilities no longer in use. The rents on most of the Company’s leases are subject to annual increases.

The minimum rental commitments for the Company as of December 31, 2018 are as follows (in thousands):


	Minimum
	rental
	commitments
2019	$	33,600
2020		28,399
2021		23,485
2022		13,770
2023		10,316
Thereafter		32,745
Total	$	142,315