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Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2019

Operating expenses as previously reported and as reclassified

The following table presents the Company's operating expenses as previously reported and as reclassified on its unaudited condensed consolidated statements of income for the three months ended (in thousands):



	New Classification
	March 31, 2018				June 30, 2018				September 30, 2018				December 31, 2018
Prior Classification	I&SC		G&A		I&SC		G&A		I&SC		G&A		I&SC		G&A
Instruction and educational support	$	63,776	$	—	$	64,690	$	—	$	93,290	$	—	$	118,320	$	—
Admissions advisory	4,676		—		4,609		—		9,789		—		12,392		—
Marketing	—		20,124		—		21,113		—		46,165		—		49,577
General and administration	—		11,218		—		11,063		—		15,811		—		18,964
Total reclassified costs and expenses⁽¹⁾	$	68,452	$	31,342	$	69,299	$	32,176	$	103,079	$	61,976	$	130,712	$	68,541

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⁽¹⁾

This amount excludes the amortization of intangible assets, merger and integration costs, and impairment of intangible assets expense line items on the condensed consolidated statements of income as those expense line items were not impacted by the operating expense reclassification.

Schedule of cash, cash equivalents, and restricted cash

The following table illustrates the reconciliation of cash, cash equivalents, and restricted cash shown in the unaudited condensed consolidated statements of cash flows as of September 30, 2018 and 2019 (in thousands):



	As of September 30,
	2018		2019
Cash and cash equivalents	$	276,382	$	397,094
Restricted cash included in other current assets	15		2
Restricted cash included in other assets	500		500
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	276,897	$	397,596

Schedule of tuition receivable and allowance for doubtful accounts

The Company’s tuition receivable and allowance for doubtful accounts were as follows as of December 31, 2018 and September 30, 2019 (in thousands):



	December 31, 2018			September 30, 2019
Tuition receivable	$	84,151		$	82,494
Allowance for doubtful accounts	(28,457		)	(31,530		)
Tuition receivable, net	$	55,694		$	50,964

Schedule of allowance for doubtful accounts

The following table illustrates changes in the Company’s allowance for doubtful accounts for the three and nine months ended September 30, 2018 and 2019 (in thousands):



	For the three months ended September 30,						For the nine months ended September 30,
	2018			2019			2018			2019
Allowance for doubtful accounts, beginning of period	$	15,048		$	30,733		$	12,687		$	28,457
Additions charged to expense	9,864			12,111			22,851			35,893
Adjustment to value of acquired receivables	6,601			—			6,601			2,207
Write-offs, net of recoveries	(6,118		)	(11,314		)	(16,744		)	(35,027		)
Allowance for doubtful accounts, end of period	$	25,395		$	31,530		$	25,395		$	31,530

Schedule of reconciliation of shares used to calculate basic and diluted earnings per share

Set forth below is a reconciliation of shares used to calculate basic and diluted earnings (loss) per share for the three and nine months ended September 30, 2018 and 2019 (in thousands):



	For the three months ended September 30,		For the nine months ended September 30,
	2018	2019	2018	2019
Weighted average shares outstanding used to compute basic earnings (loss) per share	17,799	21,806	13,141	21,694
Incremental shares issuable upon the assumed exercise of stock options	—	44	—	65
Unvested restricted stock and restricted stock units	—	279	—	337
Shares used to compute diluted earnings (loss) per share	17,799	22,129	13,141	22,096