Restructuring and Related Charges

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

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.

In addition, the 2020 restructuring plan included an evaluation of the Company's owned and leased real estate portfolio, which resulted in the consolidation and sale of underutilized facilities. The Company recorded right-of-use lease asset charges of approximately $2.6 million and $17.0 million during the three and six months ended June 30, 2021, respectively, and approximately $1.1 million during the three and six months ended June 30, 2022, related to facilities consolidated 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, and approximately $2.2 million and $2.4 million during the three and six months ended June 30, 2022, respectively. There were no fixed asset impairment charges during the three 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.

The following details the changes in the Company’s severance and other employee separation costs restructuring liabilities during the six months ended June 30, 2021 and 2022 (in thousands):


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

Balance at December 31, 2021(2)	$	—	$	1,612	$	1,612
Restructuring and other charges	—		1,612		1,612
Payments	—		(2,815)		(2,815)
Balance at June 30, 2022(2)	$	—	$	409	$	409

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(1)Restructuring plan implemented following the Company's merger with CEC.

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