Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2018

Summary of disaggregation of revenue

The following table presents the Company’s revenues from contracts with customers disaggregated by material revenue category for the three and nine months ended September 30, 2017 and 2018 (in thousands):

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2017		2018		2017		2018
Strayer Segment
Tuition, net of discounts, grants and scholarships	$	103,453	$	107,804	$	320,658	$	328,613
Other1		3,868		6,667		11,436		15,031
Total Strayer Segment		107,321		114,471		332,094		343,644
Capella Segment
Tuition, net of discounts, grants and scholarships		—		40,749		—		40,749
Other1		—		3,043		—		3,043
Total Capella Segment		—		43,792		—		43,792
Non-Degree Programs Segment2		1,191		2,682		4,050		4,646
Consolidated revenue	$	108,512	$	160,945	$	336,144	$	392,082

(1) Other revenue is primarily comprised of academic fees, sales of textbooks, other course materials, and other revenue streams.

(2) Non-Degree Programs revenue is primarily comprised of tuition revenue and placement fee revenue.

Schedule of graduation fund liability

The table below presents activity in the contract liability related to the Graduation Fund for the nine months ended September 30, 2017 and 2018 (in thousands):

	September 30,		September 30,
	2017		2018
Balance at beginning of period	$	29,499	$	37,400
Revenue deferred		17,494		18,791
Benefit redeemed		(12,551)		(15,792)
Balance at end of period	$	34,442	$	40,399

Accounting Standards Update 2014-09

Summary of impact of ASU adoption

In accordance with ASC 606, the disclosure of the impact of adoption on the Company’s unaudited condensed consolidated income statement and balance sheet as of and for the three and nine months ended September 30, 2018 was as follows (in thousands):

	For the Three Months Ended September 30, 2018
	As Reported		Balances without Adoption of ASC 606		Effect of Change Higher/(Lower)
Income Statement
Revenues	$	160,945	$	160,294	$	651
Instruction and educational support expense		93,290		92,626		664
Benefit for income taxes		(3,236)		(3,233)		(3)
Net loss		(52,781)		(52,771)		(10)
	For the Nine Months Ended September 30, 2018
	As Reported		Balances without Adoption of ASC 606		Effect of Change Higher/(Lower)
Income Statement
Revenues	$	392,082	$	391,181	$	901
Instruction and educational support expense		221,756		220,745		1,011
Benefit for income taxes		(1,643)		(1,613)		(30)
Net loss		(38,126)		(38,046)		(80)
	As of September 30, 2018
	As Reported		Balances without Adoption of ASC 606		Effect of Change Higher/(Lower)
Balance Sheet
Tuition receivable – net	$	52,527	$	50,529	$	1,998
Other current assets		17,367		19,713		(2,346)
Income taxes receivable		6,995		6,899		96
Retained earnings		106,907		107,159		(252)