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Investments
12 Months Ended
Dec. 31, 2019
Equity Method Investments and Joint Ventures [Abstract]  
Investments
Investments    

On September 30, 2012, the Company made a $6.8 million investment in preferred stock, treated as in-substance common stock, of NWHW Holdings, Inc., or NWHW Holdings, a holding company that operates an information technology training company, New Horizons Worldwide, Inc., or New Horizons, representing approximately 20% of the fully diluted equity of NWHW Holdings. The Company initially accounted for its investment in New Horizons under ASC 323, Investments - Equity Method and Joint Ventures. Therefore, the Company recorded the investment at cost and recognized its share of earnings or losses in the investee in the periods for which they were reported with a corresponding adjustment in the carrying amount of the investment. During the first quarter of 2019, the Company determined that it no longer qualified to account for its investment in NWHW Holdings under ASC 323 because the Company is unable to exercise significant influence over operating and financial policies of NWHW Holdings; therefore, the Company elected to account for the investment under ASC 321, Equity Investments. Under ASC 321, for each reporting period, the Company completes a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired. There were no indicators of impairment for the year ended December 31, 2019. Earnings or losses that were previously recorded remain as part of the carrying amount of the investment. As of December 31, 2018 and 2019, the carrying value of the investment was approximately $6.7 million and $5.2 million, respectively.
On February 20, 2013, the Company made a $4.0 million investment in preferred stock of Fidelis Education, Inc., or Fidelis Education, representing approximately 22% of its fully diluted equity. On February 1, 2016, the Company made an additional $950,000 investment in preferred stock increasing its investment in Fidelis Education to approximately 23% of its fully diluted equity. Fidelis Education offers a learning relationship management platform that has the goal of improving education advising and career mentoring services offered to students as they pursue college degrees. In connection with the investment, the Company is entitled to certain rights, including the right to representation on the Board of Directors of Fidelis Education. The Company accounts for its investment in Fidelis Education under ASC 323, Investments - Equity Method and Joint Ventures. Therefore, the Company recorded the investment at cost and recognizes its share of earnings or losses in the investee in the periods for which they are reported with a corresponding adjustment in the carrying amount of the investment. During the fourth quarter of 2017, the Company determined that the fair value of its investment in Fidelis Education was less than its carrying value and that the impairment was other-than-temporary. As a result, an approximately $2.2 million non-cash impairment charge was recorded for the year ended December 31, 2017. This impairment charge is included in equity investment loss in the Consolidated Statements of Income. As of December 31, 2018 and 2019, the carrying value of the investment was approximately $1.2 million and $1.1 million, respectively.

On April 2, 2014, the Company made a $1.5 million investment in preferred stock of Second Avenue Software, Inc., or Second Avenue Software, representing approximately 26% of its fully diluted equity. Second Avenue Software is a game-based education software company that develops software on a proprietary and “work-for-hire” basis. The Company initially accounted for its investment in Second Avenue under ASC 323, Investments - Equity Method and Joint Ventures. Therefore, the Company recorded the investment at cost and recognized its share of earnings or losses in the investee in the periods for which they were reported with a corresponding adjustment in the carrying amount of the investment. During the fourth quarter of 2017 and 2018, the Company determined that the fair value of its investment in Second Avenue Software was less than its carrying value and that the impairment was other-than-temporary. As a result, the Company recorded approximately $0.2 million and $0.1 million pretax non-cash impairment charges for the years ended December 31, 2017 and 2018, respectively. These impairment charges are included in equity investment loss in the Consolidated Statements of Income. During the first quarter of 2019, the Company determined that it no longer qualified to account for its investment in Second Avenue Software under ASC 323 because the Company is no longer able to exercise significant influence over operating and financial policies of Second Avenue Software; therefore, the Company has elected to account for the investment under ASC 321, Equity Investments. Under ASC 321, for each reporting period, the Company completes a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired. There were no indicators of impairment for the year ended December 31, 2019. Earnings or losses that were previously recorded remain as part of the carrying amount of the investment. The carrying value of the investment is approximately $0.8 million as of December 31, 2018 and 2019.

On December 21, 2015, the Company made a $3.5 million investment in preferred stock of RallyPoint, an online social network for members of the military, representing approximately 14% of its fully diluted equity. The Company accounts for its investment in RallyPoint using ASC 321, Investments - Equity Securities. On October 24, 2017, the Company made an additional $0.3 million investment in preferred stock of Rally Point. Subsequent to the additional investment, the Company’s fully diluted ownership was unchanged. Under ASC 321, for each reporting period, the Company completes a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired. During the year ended December 31, 2018, the Company determined that impairment indicators existed and utilized an independent valuation firm to assess the fair value of the investment. The assessment concluded that the fair value of its investment was less than the carrying amount resulting in a pretax non-cash impairment charge of approximately $0.5 million. This impairment charge is included in equity investment loss in the Consolidated Statements of Income. There was no impairment for the year ended December 31, 2019. The carrying value of the investment was approximately $3.3 million as of December 31, 2018 and 2019.
The Company evaluated its equity method investment for impairment as of December 31, 2019 and determined the investment was not impaired. During the years ended December 31, 2017, and 2018, the Company recorded impairment charges of approximately $2.4 million, and $0.1 million on its equity method investments, respectively.

The Company evaluated its cost method investments for impairment as of December 31, 2019 and determined none of the investments were impaired. During the years ended December 31, 2017 and 2018 the Company recorded impairment charges of approximately $0.3 million and $0.5 million on its cost method investments, respectively.

The aggregate carrying amount of the Company’s investments accounted for under ASC 321, Investments - Equity Securities, presented on its Consolidated Balance Sheet on a one-line basis as “Investments”, was approximately $3.3 million and $9.4 million as of December 31, 2018 and 2019, respectively.