Restructuring and Related Charges

12 Months Ended

Dec. 31, 2024

Restructuring and Related Activities [Abstract]

The Company incurs severance and other employee separation costs related to employee terminations that are not tied to a formal restructuring plan. During the years ended December 31, 2023 and 2024, the Company incurred $12.0 million and $4.9 million, respectively, 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 consolidated statements of income.

The following details the changes in the Company’s severance and other employee separation costs restructuring liabilities for the year ended December 31, 2024 (in thousands):


	Severance Restructuring Liability
Balance as of December 31, 2022	$	—
Restructuring and other charges	12,015
Payments	(11,220)
Balance as of December 31, 2023(1)	795
Restructuring and other charges	4,902
Payments	(5,163)
Balance as of December 31, 2024(1)	$	534

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(1)Restructuring liabilities are included in accounts payable and accrued expenses in the consolidated balance sheets.

The Company evaluates its owned and leased real estate portfolio on an ongoing basis, which has resulted in the consolidation and sale of underutilized facilities. During the years ended December 31, 2022, 2023, and 2024, the Company recorded right-of-use lease asset charges of approximately $1.2 million, $5.1 million, and $0.7 million, respectively, related to facilities that were consolidated during the period. The Company also recorded fixed asset impairment charges of approximately $2.5 million, $0.4 million and $0.2 million during the years ended December 31, 2022, 2023, and 2024, respectively. The Company recorded net benefits related to the early termination and related extinguishment of lease liabilities of approximately $1.2 million, $0.1 million and $6.2 million during the years ended December 31, 2022, 2023, and 2024, respectively. During the years ended December 31, 2022 and 2023 the Company recorded gains from the sale of property and equipment of owned campuses that were previously closed of approximately $2.9 million and $2.1 million, respectively. These right-of-use lease asset and fixed asset impairment charges, net 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.

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 for the year ended December 31, 2022 (in thousands):


	2020 Restructuring Plan
Balance at December 31, 2021	$	1,612
Restructuring and other charges	1,241
Payments	(2,853)
Balance at December 31, 2022	—

The final severance payments under the 2020 Restructuring Plan were made in the third quarter of 2022.