The following tables disaggregate our revenue by major source for the years ended December 31, 2022, 2021 and 2020 (dollars in thousands):


	For the Year Ended December 31, 2022
	CTU (4)		AIUS (5)		Corporate and Other (6)		Total
Tuition, net (1)	$	396,093	$	258,667	$	-	$	654,760
Technology fees		19,454		11,619		-		31,073
Other miscellaneous fees(2)		816		1,023		-		1,839
Total tuition and fees, net		416,363		271,309		-		687,672
Other revenue(3)		3,254		3,170		1,112		7,536
Total revenue	$	419,617	$	274,479	$	1,112	$	695,208

	For the Year Ended December 31, 2021
	CTU (4)		AIUS (5)		Corporate and Other (6)		Total
Tuition, net (1)	$	384,307	$	269,645	$	-	$	653,952
Technology fees		21,249		11,322		-		32,571
Other miscellaneous fees(2)		1,227		665		-		1,892
Total tuition and fees, net		406,783		281,632		-		688,415
Other revenue(3)		1,766		1,728		1,125		4,619
Total revenue	$	408,549	$	283,360	$	1,125	$	693,034

	For the Year Ended December 31, 2020
	CTU		AIUS (5)		Corporate and Other (6)		Total
Tuition, net	$	381,371	$	270,430	$	-	$	651,801
Technology fees		20,687		10,122		-		30,809
Other miscellaneous fees(2)		1,283		686		-		1,969
Total tuition and fees, net		403,341		281,238		-		684,579
Other revenue(3)		2,166		123		446		2,735
Total revenue	$	405,507	$	281,361	$	446	$	687,314

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(1)

Tuition includes revenue earned for all degree-granting programs as well as revenue earned for non-degree and professional development programs.

(2)

Other miscellaneous fees primarily include graduation fees.

(3)

Other revenue primarily includes contract training revenue and miscellaneous non-student related revenue.

(4)

CTU includes revenue related to an acquisition completed on December 1, 2022 and an acquisition completed on September 10, 2021.

(5)

AIUS includes revenue related to an acquisition completed on July 1, 2022, an acquisition completed on August 2, 2021 and an acquisition completed on March 2, 2020.

(6)

Revenue recorded within Corporate and Other relates to miscellaneous non-student related revenue.

Our revenue, which is derived primarily from academic programs taught to students who attend our universities, is generally segregated into two categories: (1) tuition and fees, and (2) other. Tuition and fees represent costs to our students for educational services provided by our universities and are reflected net of scholarships and tuition discounts. Our universities charge tuition and fees at varying amounts, depending on the university, the type of program and specific curriculum. Our universities bill students a single charge that covers tuition, certain fees and required program materials, such as textbooks and supplies, which we treat as a single performance obligation. Generally, we bill student tuition at the beginning of each academic term for our degree programs and recognize the tuition as revenue on a straight-line basis over the academic term. As part of a student’s course of instruction, certain fees, such as technology fees and graduation fees, are billed separately to students. These fees are generally earned over the applicable term and are not considered separate performance obligations. We generally bill student tuition upon enrollment for our non-degree professional development programs and recognize the tuition as revenue on a straight-line basis over the length of the offering.

Other revenue, which primarily consists of contract training revenue and miscellaneous non-student related revenue, is billed and recognized as goods are delivered or services are performed.

Our institutions’ academic year is generally at least 30 weeks in length but varies both by institution and program of study and is divided by academic terms. Academic terms are determined by regulatory requirements mandated by the federal government and/or applicable accrediting body, which also vary by university and program. Academic terms are determined by start dates, which vary by university and program and are generally 8-12 weeks in length. Our non-degree professional development programs are available via subscription –based access for up to 52 weeks or online courses which are generally 12-18 weeks in length.

For each term, the portion of tuition and fee payments received from students but not yet earned is recorded as deferred revenue and reported as a current liability on our consolidated balance sheets, as we expect to earn these revenues within the next year. A contract asset is recorded for each student for the current term for which they are enrolled for the amount charged for the current term that has not yet been received as payment and to which we do not have the unconditional right to receive payment because the student has not reached the point in the student’s current academic term at which the amount billed is no longer refundable to the student. On a student by student basis, the contract asset is offset against the deferred revenue balance for the current term and the net deferred revenue balance is reflected within current liabilities on our consolidated balance sheets. For AIUS’ Trident and DigitalCrafts programs and CTU’s Hippo programs, students are billed as they enroll in courses, including courses related to future periods. Any billings for future periods would meet the definition of a contract asset as we do not have the unconditional right to receive payment as the course has not yet started. Contract assets related to future periods are offset against the respective deferred revenue associated with the future period.

Due to the short-term nature of our academic terms, the contract asset balance which exists at the beginning of each quarter will no longer be a contract asset at the end of that quarter, with the exception of the contract assets associated with future periods. The decrease in contract asset balances are a result of one of the following: it becomes a student receivable balance once a student reaches the point in a student’s academic term where the amount billed is no longer refundable to the student; a refund is made to withdrawn students for the portion entitled to be refunded under each institutions’ refund policy; we receive funds to apply against the contract asset balance; or a student makes a change to the number of classes they are enrolled in which may cause an adjustment to their previously billed amount. As of the end of each quarter, a new contract asset is determined on a student by student basis based on the most recently started term and a student’s progress within that term as compared to the date at which the student is no longer entitled to a refund under each institution’s refund policy. Contract assets associated with future periods remain as contract assets until the course begins and the student reaches the point in that course that they are no longer entitled to a refund.

Changes in our deferred revenue balances for the years ended December 31, 2022 and 2021 were as follows (dollars in thousands):


	For the Year Ended December 31, 2022
	CTU			AIUS			Total
Gross deferred revenue, January 1, 2022	$	64,674		$	49,045		$	113,719
Business acquisitions, beginning balance		10,324			2,419			12,743
Revenue earned from prior balances		(59,520	)		(39,183	)		(98,703	)
Billings during period (1)		408,796			260,513			669,309
Revenue earned for new billings during the period		(356,843	)		(232,126	)		(588,969	)
Other adjustments		(186	)		(713	)		(899	)
Gross deferred revenue, December 31, 2022	$	67,245		$	39,955		$	107,200

	For the Year Ended December 31, 2021
	CTU			AIUS			Total
Gross deferred revenue, January 1, 2021	$	28,522		$	56,880		$	85,402
Business acquisitions, beginning balance		3,952			1,404			5,356
Revenue earned from prior balances		(27,857	)		(46,591	)		(74,448	)
Billings during period (1)		439,836			271,053			710,889
Revenue earned for new billings during the period		(378,926	)		(235,041	)		(613,967	)
Other adjustments		(853	)		1,340			487
Gross deferred revenue, December 31, 2021	$	64,674		$	49,045		$	113,719

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(1)

Billings during period includes adjustments for prior billings.

Our students pay for their costs through a variety of funding sources, including federal loan and grant programs, institutional payment plans, employer reimbursement, Veterans’ Administration and other military funding and grants, private and institutional scholarships and cash payments, as well as private loans. Cash receipts from government related sources are typically received during the current academic term. We typically receive funds after the end of an academic term for students who receive employer reimbursements. Students who have not applied for any type of financial aid generally set up a payment plan with the university and make payments on a monthly basis per the terms of the payment plan.

If a student withdraws from one of our universities prior to the completion of the academic term, we refund the portion of tuition and fees already paid that, pursuant to our refund policy and applicable federal and state law and accrediting agency standards, we are not entitled to retain. Generally, the amount to be refunded to a student is calculated based upon the percent of the term attended and the amount of tuition and fees paid by the student as of their withdrawal date. In certain circumstances, we have recognized revenue for students who have withdrawn that we are not entitled to retain. We have estimated a reserve for these limited circumstances based on historical evidence in the amount of $2.5 million and $2.1 million as of December 31, 2022 and 2021, respectively. Students are typically entitled to a partial refund until approximately halfway through their term. Pursuant to each university’s policy, once a student reaches the point in the term where no refund is given, the student would not have a refund due if withdrawing from the university subsequent to that date.

Management reassesses collectability when a student withdraws from the university and has unpaid tuition charges for the current term which the university is entitled to retain per the applicable refund policy. Certain unpaid charges do not meet the threshold of reasonably collectible and are recognized as revenue in accordance with ASC Topic 606 when cash is received and the contract is terminated and neither party has further performance obligations. We have no remaining performance obligations for students who have withdrawn from our universities, and once the refund calculation is performed and funds are returned to the student, if applicable under our refund policy, no further consideration is due back to the student. We recognized $1.4 million, $1.6 million and $1.1 million for the years ended December 31, 2022, 2021 and 2020, respectively, for payments received from withdrawn students.

We analyze revenue recognition on a portfolio approach under ASC Topic 606. Significant judgment is used in determining the appropriate portfolios to assess for meeting the criteria to recognize revenue under ASC Topic 606. We have determined that all of our students can be grouped into one portfolio. Based on our past experience, students at different universities, in different programs or with different funding all behave similarly. Enrollment agreements all contain similar terms, refund policies are similar across all institutions and students work with the university to obtain some type of funding, for example, Title IV Program funds, Veterans Administration funds, military funding, employer reimbursement or self-pay. We have significant historical data for our students which allows us to analyze collectability. We do not expect that revenue earned for the portfolio is significantly different as compared to revenue that would be earned if we were to assess each student contract separately.

Significant judgment is also required to assess collectability, particularly as it relates to students seeking funding under Title IV Programs. Because students are required to provide documentation, and in some cases extensive documentation, to the Department to be eligible and approved for funding, the timeframe for this process can sometimes span between 90 to 120 days. We monitor the progress of students through the eligibility and approval process and assess collectability for the portfolio each reporting period to monitor that the collectability threshold is met.

For the years ended December 31, 2022, 2021 and 2020, we received a majority of our universities’ cash receipts for tuition payments from various government agencies as well as our corporate partnerships. These cash receipts represent a substantial portion of our consolidated revenues and all have low risk of collectability.