Restructuring and Related Charges

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

Restructuring and Related Charges

Restructuring and Related Charges

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 for the years ended December 31, 2020, 2021, and 2022 (in thousands):

	CEC Integration Plan(1)		2020 Restructuring Plan		Total
Balance at December 31, 2019	$	8,283	$	—	$	8,283
Restructuring and other charges	—		11,967		11,967
Payments	(6,448)		(10,680)		(17,128)
Balance at December 31, 2020	1,835		1,287		3,122
Restructuring and other charges	—		4,618		4,618
Payments	(1,835)		(4,293)		(6,128)
Balance at December 31, 2021(2)	—		1,612		1,612
Restructuring and other charges	—		1,241		1,241
Payments	—		(2,853)		(2,853)
Balance at December 31, 2022	$	—	$	—	$	—

___________________________________________________________

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

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

The 2020 restructuring plan also included an evaluation of the Company’s owned and leased real estate portfolio, which resulted in the consolidation and sale of underutilized facilities. During the years ended December 31, 2020, 2021, and 2022, the Company recorded right-of-use lease asset charges of approximately $0.4 million, $18.9 million, and $1.2 million, respectively, related to facilities consolidated as a result of the restructuring plan. The Company recorded benefits related to the early termination and related extinguishment of lease liabilities of approximately $0.2 million and $1.2 million during the years ended December 31, 2021 and 2022, respectively. During the years ended December 31, 2021 and 2022, the Company recorded gains from the sale of property and equipment of owned campuses that were closed in connection with the 2020 restructuring plan of approximately $2.7 million and $2.9 million, respectively. The Company also recorded fixed asset impairment charges of approximately $2.7 million and $2.5 million during the years ended December 31, 2021 and 2022, respectively. All severance and other employee separation charges, right-of-use lease asset and fixed asset impairment charges, benefits from early lease terminations, and gains on the sale of property and equipment are included in Restructuring costs on the consolidated statements of income.