Restructuring and Related Charges

6 Months Ended

Jun. 30, 2023

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.

The following details the changes in the Company’s severance and other employee separation costs restructuring liabilities related to the 2020 restructuring plan during the six months ended June 30, 2022 (in thousands):


	2020 Restructuring Plan
Balance at December 31, 2021	$	1,612
Restructuring and other charges	1,612
Payments	(2,815)
Balance at June 30, 2022	$	409

The final severance payments under the 2020 restructuring plan were made in the third quarter of 2022.

The Company also incurs severance and other employee separation costs related to voluntary and involuntary employee terminations that are not tied to a formal restructuring plan. During the three and six months ended June 30, 2023, the Company incurred $6.1 million and $8.4 million of severance and other employee separation charges related to the elimination of certain positions. These severance and other employee separation charges 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, 2023 (in thousands):


	Severance Restructuring Liability
Balance at December 31, 2022	$	—
Restructuring and other charges	8,364
Payments	(6,023)
Balance at June 30, 2023(1)	$	2,341

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

The Company has also been evaluating its owned and leased real estate portfolio, which has resulted in the consolidation and sale of underutilized facilities. The Company recorded approximately $1.1 million of right-of-use lease asset charges during the three and six months ended June 30, 2022, and approximately $1.5 million and $5.1 million during the three and six months ended June 30, 2023, respectively, related to facilities that were consolidated during the period. The Company also recorded fixed asset impairment charges of approximately $2.2 million and $2.4 million during the three and six months ended June 30, 2022, respectively, and approximately $0.3 million during the three and six months ended June 30, 2023. During the three and six months ended June 30, 2023, the Company recorded a $2.1 million gain from the sale of property and equipment of an owned campus that was previously closed. These right-of-use lease asset and fixed asset impairment charges and gains on the sale of property and equipment are included in Restructuring costs on the unaudited condensed consolidated statements of income.