Restructuring and Related Charges

9 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

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 a restructuring plan in an effort to reduce the ongoing operating costs of the Company to align with changes in enrollment following the COVID-19 pandemic. Under this plan, the Company incurred severance and other employee separation costs related to voluntary and involuntary employee terminations.

The following details the changes in the Company’s severance and other employee separation costs restructuring liabilities during the nine months ended September 30, 2020 and 2021 (in thousands):


	CEC Integration Plan		2020 Restructuring Plan		Total
Balance at December 31, 2019	$	8,283	$	—	$	8,283
Restructuring and other charges	—		4,024		4,024
Payments	(5,401)		(34)		(5,435)
Adjustments	—		—		—
Balance at September 30, 2020	$	2,882	$	3,990	$	6,872

Balance at December 31, 2020(1)	$	1,835	$	1,287	$	3,122
Restructuring and other charges	—		3,737		3,737
Payments	(1,835)		(4,227)		(6,062)
Adjustments	—		—		—
Balance at September 30, 2021(1)	$	—	$	797	$	797

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(1)Restructuring liabilities are included in accounts payable and accrued expenses.

In addition, the 2020 restructuring plan included an evaluation of the Company's owned and leased real estate portfolio, which resulted in the closure and sale of underutilized campus and corporate offices. During the three and nine months ended September 30, 2021, the Company recorded right-of-use lease asset charges of approximately $1.9 million and $18.9 million, respectively, related to the campus and corporate locations closed as a result of the restructuring plan. The Company also recorded fixed asset impairment charges of approximately $0.6 million and $2.6 million during the three and nine months ended September 30, 2021, respectively. During the three and nine months ended September 30, 2021, the Company recorded a $0.7 million gain from the sale of property and equipment of an owned campus that was closed in connection with the 2020 restructuring plan. All severance and other employee separation charges, right-of-use lease asset and fixed asset impairment charges, and gains on the sale of property and equipment related to the 2020 restructuring plan are included in Restructuring costs on the unaudited condensed consolidated statements of income.