Restructuring and Related Charges

6 Months Ended

Jun. 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 six months ended June 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	—		—		—
Payments	(3,986)		—		(3,986)
Adjustments	—		—		—
Balance at June 30, 2020	$	4,297	$	—	$	4,297

Balance at December 31, 2020(1)	$	1,835	$	1,287	$	3,122
Restructuring and other charges	—		3,358		3,358
Payments	(1,344)		(3,237)		(4,581)
Adjustments	—		—		—
Balance at June 30, 2021(1)	$	491	$	1,408	$	1,899

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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 of underutilized campus and corporate offices. During the three and six months ended June 30, 2021, the Company recorded right-of-use lease asset charges of approximately $2.6 million and $17.0 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 $2.0 million during the six months ended June 30, 2021. All severance and other employee separation charges and right-of-use lease asset and fixed asset impairment charges related to the 2020 restructuring plan are included in Restructuring costs on the unaudited condensed consolidated statements of income.