Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies [Abstract]

12. Commitments and Contingencies

The University participates in various federal student financial assistance programs which are subject to audit by agencies, including the Department of Education, the Veterans Administration, and the Department of Defense. Management believes that the potential effects of audit adjustments, if any, for the periods currently under audit will not have a material adverse effect, individually or in the aggregate, on the Company’s consolidated financial position, results of operations, or cash flows.

As of December 31, 2017, the Company had 81 long-term, non-cancelable operating leases for campuses and other administrative facilities. Rent expense was $37.5 million, $33.7 million, and $33.6 million for the years ended December 31, 2015, 2016, and 2017, respectively. Rent expense for 2016 includes a benefit of approximately $1.9 million, and rent expense for 2017 includes a charge of approximately $0.3 million to reduce the Company’s liability for losses on facilities no longer in use. The rents on the Company’s leases are subject to annual increases.

The minimum rental commitments for the Company as of December 31, 2017 are as follows (in thousands):


	Minimum
	rental
	commitments
2018	$	31,522
2019		26,851
2020		21,894
2021		16,797
2022		7,319
Thereafter		10,258
Total	$	114,641