11. Restructuring

In the third and fourth quarters of fiscal year 2017, the Company exited three facilities (which included the subleased facility above) that were no longer being utilized and entered into a lease buyout agreement (discussed above), which were subject to operating leases.

The present value of the remaining lease payments was calculated using a credit adjusted risk-free rate and estimated sublease rentals for each lease. In aggregate, during fiscal year 2017, the Company recorded an impairment of $5.4 million for the three leases. The current portion of the liability of $1.7 million was included in accrued liabilities and the long-term portion of $3.7 million was included in other long-term liabilities on the consolidated balance sheet as of March 31, 2017. In addition to the lease impairment, the Company accelerated the useful life of each lease’s property and equipment to the cease-use date and recorded accelerated depreciation of $1.4 million. The Company also wrote off the deferred rent and the liability for tenant improvements associated with each lease which resulted in income of $1.9 million. The $4.9 million net impact of these actions was recorded in selling, administrative, and other operating expenses in the consolidated statements of operations. Additionally, the lease buyout was $0.7 million and was included in instructional costs and services in the consolidated statements of operations. There were no similar charges recorded during the years ended June 30, 2019 or 2018.

The following table summarizes the activity during the year ended June 30, 2019:


			Balance at		Payments, net of		Accretion				Balance at
Description	Initial Value		June 30, 2018		sublease income		Expense		Adjustments		June 30, 2019
		(In thousands)
Lease #1	$	1,652	$	1,092	$	(403)	$	28	$	—	$	717
Lease #2		1,311		475		(452)		6		—		29
Lease #3		2,443		1,191		(188)		30		—		1,033
Total	$	5,406	$	2,758	$	(1,043)	$	64	$	—	$	1,779