10. Other Long-Term Liabilities

Other long-term liabilities consist of the following as of December 31, 2017 and September 30, 2018 (in thousands):


	December 31, 2017		September 30, 2018
Contract liabilities, net of current portion	$	21,033	$	21,975
Employee separation costs		—		7,477
Deferred rent and other facility costs		7,113		6,942
Deferred payments related to acquisitions		6,385		5,741
Loss on facilities not in use		5,652		4,121
Lease incentives		2,832		2,481
Other		—		1,386
Other long-term liabilities	$	43,015	$	50,123

Contract Liabilities

As discussed in Note 4, in connection with its student tuition contracts, the Company has an obligation to provide free classes in the future should certain eligibility conditions be maintained (the Graduation Fund). Long-term contract liabilities represent the amount of revenue under these arrangements that the Company expects will be realized after one year.

Employee Separation Costs

Severance and other employee separation costs to be paid after one year.

Deferred Rent and Other Facility Costs and Loss on Facilities Not in Use

The Company records a liability for lease costs of campus and non-campus facilities that are not currently in use (see Note 5). For facilities still in use, the Company records rent expense on a straight-line basis over the initial term of a lease. The difference between the rent payment and the straight-line rent expense is recorded as a liability.

Deferred Payments Related to Acquisitions

In connection with previous acquisitions, the Company acquired certain assets and entered into deferred payment arrangements with the sellers. The deferred payment arrangements are valued at approximately $3.6 million and $2.9 million as of December 31, 2017 and September 30, 2018. In addition, one of the sellers contributed $2.8 million to the Company representing the seller’s continuing interest in the assets acquired. During the three and nine months ended September 30, 2017, the Company adjusted the fair value of the contingent consideration related to the NYCDA acquisition by $5.5 million and $7.8 million, respectively, which is included in the Fair value adjustments and impairment of intangible assets line on the unaudited condensed consolidated statements of income.

Lease Incentives

In conjunction with the opening of new campuses or renovating existing ones, the Company, in some instances, was reimbursed by the lessors for improvements made to the leased properties. In accordance with ASC 840-20, the underlying assets were capitalized as leasehold improvements and a liability was established for the reimbursements. The leasehold improvements and the liability are amortized on a straight-line basis over the corresponding lease terms, which generally range from five to ten years.

Other

Other is primarily comprised of the liability for unrecognized tax benefits, deferred compensation arrangements related to CEC and dividend accruals related to unvested restricted stock units.