REVENUE RECOGNITION

9 Months Ended

Sep. 30, 2024

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 on 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 amounts of $23.0 million and $26.9 million are recorded as current liabilities in the accompanying Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023, respectively. The change in this contract liability balance during the nine-month period ended September 30, 2024 is the result of payments received in advance of satisfying performance obligations, offset by revenue recognized during that period. Revenue recognized for the nine-month period ended September 30, 2024 that was included in the contract liability balance at the beginning of the year was $26.0 million.

The following table depicts the timing of revenue recognition:

	Three Months Ended September 30, 2024						Nine months ended September 30, 2024
	Campus Operations		Transitional		Consolidated		Campus Operations		Transitional		Consolidated
Timing of Revenue Recognition
Services transferred at a point in time	$	9,320	$	-	$	9,320	$	22,074	$	-	$	22,074
Services transferred over time		105,090		-		105,090		298,617		-		298,617
Total revenues	$	114,410	$	-	$	114,410	$	320,691	$	-	$	320,691

	Three Months Ended September 30, 2023						Nine months ended September 30, 2023
	Campus Operations		Transitional		Consolidated		Campus Operations		Transitional		Consolidated
Timing of Revenue Recognition
Services transferred at a point in time	$	7,489	$	5	$	7,494	$	18,084	$	17	$	18,101
Services transferred over time		92,038		86		92,124		256,009		1,438		257,447
Total revenues	$	99,527	$	91	$	99,618	$	274,093	$	1,455	$	275,548