REVENUE RECOGNITION

6 Months Ended

Jun. 30, 2023

REVENUE RECOGNITION [Abstract]

REVENUE RECOGNITION

3. REVENUE RECOGNITION

Substantially all of our revenues are considered to be revenues from our contracts with students.  The related accounts receivable balances are recorded in our Condensed Consolidated Balance Sheets as student accounts receivable.  We do not have significant revenue recognized from performance obligations that were satisfied in prior periods, and we do not have any transaction price allocated to unsatisfied performance obligations other than in our unearned tuition.  We record revenue for students who withdraw from our schools only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur.  Unearned tuition represents contract liabilities primarily related to our tuition revenue. We have elected not to provide disclosure about transaction prices allocated to unsatisfied performance obligations if original contract durations are less than one year, or if we have the right to consideration from a student in an amount that corresponds directly with the value provided to the student for performance obligations completed to date in accordance with ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” We have assessed the costs incurred to obtain a contract with a student and determined them to be immaterial.

Unearned tuition in the amount of $22.9 million and $24.2 million is recorded as current liabilities in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022, respectively. The change in this contract liability balance during the six-month period ended June 30, 2023 is the result of payments received in advance of satisfying performance obligations, offset by revenue recognized during that period. Revenue recognized for the six-month period ended June 30, 2023 that was included in the contract liability balance at the beginning of the year was $22.6 million.

The following table depicts the timing of revenue recognition:

	Three months ended June 30, 2023						Six months ended June 30, 2023
	Campus Operations		Transitional		Consolidated		Campus Operations		Transitional		Consolidated
Timing of Revenue Recognition
Services transferred at a point in time	$	5,895	$	3	$	5,898	$	10,595	$	12	$	10,607
Services transferred over time		82,318		430		82,748		163,970		1,352		165,322
Total revenues	$	88,213	$	433	$	88,646	$	174,565	$	1,364	$	175,929

	Three months ended June 30, 2022						Six months ended June 30, 2022
	Campus Operations		Transitional		Consolidated		Campus Operations		Transitional		Consolidated
Timing of Revenue Recognition
Services transferred at a point in time	$	4,886	$	87	$	4,973	$	9,598	$	165	$	9,763
Services transferred over time		75,463		1,706		77,169		151,532		3,402		154,934
Total revenues	$	80,349	$	1,793	$	82,142	$	161,130	$	3,567	$	164,697