Merger with Capella Education Company (Tables)

9 Months Ended

Sep. 30, 2018

Merger with Capella Education Company [Abstract]

Schedule of components of aggregate consideration transferred for acquisition

The following table summarizes the components of the aggregate consideration transferred for the acquisition of CEC (in thousands):

Fair value of Company common stock issued in exchange for CEC outstanding shares(1)	$	1,209,483
Fair value of Company equity-based awards issued in exchange for CEC equity-based awards		27,478
Total fair value of consideration transferred	$	1,236,961

⁽¹⁾ The Company issued 10,263,775 common shares at a market price of $117.84 in exchange for each issued and outstanding share of CEC common stock.

Schedule of preliminary fair value of assets and liabilities assumed

The preliminary fair value of assets acquired and liabilities assumed as well as a reconciliation to consideration transferred is presented in the table below (in thousands):

Cash and cash equivalents	$	168,387
Marketable securities, current		31,419
Tuition receivable		39,141
Income tax receivable		163
Other current assets		8,496
Marketable securities, non-current		34,700
Property and equipment, net		53,182
Other assets		15,906
Intangible assets		349,800
Goodwill		723,929
Total assets acquired		1,425,123
Accounts payable and accrued expenses		(46,735)
Contract liabilities		(39,000)
Deferred income taxes		(100,190)
Other long term liabilities		(2,237)
Total liabilities assumed		(188,162)
Total consideration	$	1,236,961

Schedule of intangible assets acquired and weighted average useful lives

The table below presents a summary of intangible assets acquired (in thousands) and the weighted average useful lives of these assets:

			Weighted Average
		Fair Value	Useful Life in Years
Trade names	$	183,800	Indefinite
Student relationships		166,000	3
	$	349,800

Schedule of supplemental pro forma financial information

s that may occur in the future. The pro forma adjustments are based on available information and upon assumptions the Company believes are reasonable to reflect the impact of this acquisition on the Company’s historical financial information on a supplemental pro forma basis (in thousands).

	Pro Forma Combined
	Nine Months Ended		Nine Months Ended
	September 30, 2017		September 30, 2018
Revenue	$	664,523	$	679,309
Net Income		32,096		10,606