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Restructuring and Related Charges | 9 Months Ended
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Sep. 30, 2020
Restructuring and Related Activities [Abstract] |
Restructuring and Related Charges | Restructuring and Related ChargesIn October 2013, the Company implemented a restructuring to better align the Company’s resources with student enrollments at the time. This restructuring included the closing of 20 physical locations and reductions in the number of campus-based and corporate employees. At the time of this restructuring, a liability for lease obligations, some of which continue through 2022, was recorded and measured at fair value using a discounted cash flow approach encompassing significant unobservable inputs (Level 3). The estimation of future cash flows included 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 discounted at credit-adjusted rates. In 2018 and 2019, the Company incurred personnel-related restructuring charges due to cost reduction efforts and management changes. These changes related to the integration of CEC in order to establish an efficient ongoing cost structure for the Company. The severance and other employee separation costs incurred in connection with the integration of CEC are included in Merger and integration costs on the unaudited condensed consolidated statements of income. In the third quarter of 2020, the Company began implementing an employee restructuring plan in an effort to reduce the ongoing operating costs of the Company to align with changes in enrollment. Under this plan, the Company has incurred, and will continue to incur through March 31, 2021, severance and other employee separation costs related to voluntary and involuntary employee terminations. All severance and other employee separation charges related to this plan are included in Restructuring costs on the unaudited condensed consolidated statements of income. The following details the changes in the Company’s restructuring liability during the nine months ended September 30, 2019 and 2020 (in thousands):
|  |  | Severance and Other Employee Separation Costs |  |
| Lease and Related Costs, Net |  | CEC Integration Plan |  | 2020 Restructuring Plan |  | Total
Balance at December 31, 2018 | $ | 6,540 |  |  | $ | 14,347 |  |  | $ | — |  |  | $ | 20,887 |
Restructuring and other charges(1) | — |  |  | 2,334 |  |  | — |  |  | 2,334 |
Payments | — |  |  | (7,841) |  |  | — |  |  | (7,841) |
Adjustments(2) | (6,540) |  |  | — |  |  | — |  |  | (6,540) |
Balance at September 30, 2019 | $ | — |  |  | $ | 8,840 |  |  | $ | — |  |  | $ | 8,840 |
Balance at December 31, 2019(3) | $ | — |  |  | $ | 8,283 |  |  | $ | — |  |  | $ | 8,283 |
Restructuring and other charges(1) | — |  |  | — |  |  | 4,024 |  |  | 4,024 |
Payments | — |  |  | (5,401) |  |  | (34) |  |  | (5,435) |
Adjustments | — |  |  | — |  |  | — |  |  | — |
Balance at September 30, 2020(3) | $ | — |  |  | $ | 2,882 |  |  | $ | 3,990 |  |  | $ | 6,872 |
_____________________________________ (1)Restructuring and other charges were $0.2 million and $2.3 million for the three and nine months ended September 30, 2019, respectively, and $4.0 million for the three and nine months ended September 30, 2020. (2)Adjustments represent the impact of adopting ASC 842 on January 1, 2019. In accordance with ASC 842, the lease related restructuring liability balance as of December 31, 2018 was netted against the initial ROU lease asset recognized upon adoption. Asset retirement obligations related to these restructured properties are also included in the adjustments amount. (3)The current portion of restructuring liabilities was $6.4 million and $6.9 million as of December 31, 2019 and September 30, 2020, respectively, which are included in accounts payable and accrued expenses. The long-term portion is included in other long-term liabilities.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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