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Receivables and Contract Liabilities
 6 Months Ended
Jun. 30, 2022
Receivables And Contract Liabilities Disclosure [Abstract]  
Receivables and Contract Liabilities Receivables and Contract Liabilities
Trade Accounts Receivable
The Company’s trade accounts receivable balances relate to amounts due from students or customers occurring in the normal course of business. Trade accounts receivable balances have a term of less than one year and are included in accounts receivable, net on the Company’s condensed consolidated balance sheets. The following table presents the Company’s trade accounts receivable in each segment as of each of the dates indicated.
 June 30,
2022		December 31,
2021
 (in thousands)
Degree Program Segment accounts receivable
$21,177 $31,762 
Degree Program Segment unbilled revenue19,048 4,440 
Alternative Credential Segment accounts receivable44,221 42,771 
Total84,446 78,973 
Less: Provision for credit losses(14,602)(11,686)
Trade accounts receivable, net$69,844 $67,287 
The following table presents the change in provision for credit losses for trade accounts receivable on the Company’s condensed consolidated balance sheets for the period indicated.
Provision for Credit Losses
(in thousands)
Balance as of December 31, 2021$11,686 
Current period provision3,334 
Foreign currency translation adjustments(16)
Other (402)
Balance as of June 30, 2022$14,602 
Other Receivables
The Company’s other receivables are comprised of amounts due under tuition payment plans with extended payment terms from students enrolled in certain of the Company’s alternative credential offerings. These payment plans, which are managed and serviced by third-party providers, are designed to assist students with paying tuition costs after all other student financial assistance and scholarships have been applied. The associated receivables generally have payment terms that range from 12 to 42 months and are recorded net of any implied pricing concessions, which are determined based on collections history, market data and any time value of money component. There are no fees or origination costs included in these receivables. The carrying value of these receivable balances approximate their fair value. The following table presents the components of the Company’s other receivables, net, as of each of the dates indicated.
June 30,
2022		December 31,
2021
(in thousands)
Other receivables, amortized cost$54,919 $52,428 
Less: Provision for credit losses(2,697)(1,421)
Other receivables, net$52,222 $51,007 
Other receivables, net, current$30,938 $29,439 
Other receivables, net, non-current$21,284 $21,568 
The following table presents the change in provision for credit losses for other receivables on the Company’s condensed consolidated balance sheets for the period indicated.
Provision for Credit Losses
(in thousands)
Balance as of December 31, 2021$1,421 
Current period provision1,276 
Balance as of June 30, 2022$2,697 
The Company considers receivables to be past due when amounts contractually due under the extended payment plans have not been paid. As of June 30, 2022, 89% of other receivables, net due under extended payment plans were current.
At the time of origination, the Company categorizes its other receivables using a credit quality indicator based on the credit tier rankings obtained from the third-party providers that manage and service the payment plans. The third-party providers utilize credit rating agency data to determine the credit tier rankings. The Company monitors the collectability of its other receivables on an ongoing basis. The adequacy of the allowance for credit losses is determined through analysis of multiple factors, including industry trends, portfolio performance, and delinquency rates. The following tables present other receivables, at amortized cost including interest accretion, by credit quality indicator and year of origination, as of the dates indicated.
June 30, 2022
Year of Origination
 20222021202020192018Total
(in thousands)
Credit Quality Tier
High$12,263 $7,760 $64 $21 $115 $20,223 
Mid12,122 7,457 910 1,345 392 22,226 
Low4,557 4,239 1,429 1,915 330 12,470 
Total$28,942 $19,456 $2,403 $3,281 $837 $54,919 

December 31, 2021
Year of Origination
 2021202020192018Total
(in thousands)
Credit Quality Tier
High$18,466 $1,635 $24 $115 $20,240 
Mid14,352 2,992 1,312 392 19,048 
Low8,135 2,802 1,873 330 13,140 
Total$40,953 $7,429 $3,209 $837 $52,428 
Contract Liabilities
The Company’s deferred revenue represents contract liabilities. The Company generally receives payments from Degree Program Segment university clients early in each academic term and from Alternative Credential Segment students, either in full upon registration for the course or in full before the end of the course based on a payment plan, prior to completion of the service period. These payments are recorded as deferred revenue until the services are delivered or until the Company’s obligations are otherwise met, at which time revenue is recognized. The following table presents the Company’s contract liabilities in each segment as of each of the dates indicated.
 June 30,
2022		December 31,
2021
 (in thousands)
Degree Program Segment deferred revenue
$38,303 $3,462 
Alternative Credential Segment deferred revenue94,169 88,464 
Total contract liabilities$132,472 $91,926 
For the Degree Program Segment, during the three months ended June 30, 2022 and 2021 the Company recognized $0.1 million and no revenue related to its deferred revenue balances that existed at the end of each preceding year. Revenue recognized in this segment during the six months ended June 30, 2022 and 2021 that was included in the deferred revenue balance that existed at the end of each preceding year was $1.4 million and $1.7 million, respectively.
For the Alternative Credential Segment, during the three months ended June 30, 2022 and 2021 the Company recognized $16.3 million and $16.0 million related to its deferred revenue balances that existed at the end of each preceding year. Revenue recognized in this segment during the six months ended June 30, 2022 and 2021 that was included in the deferred revenue balance that existed at the end of each preceding year was $66.5 million and $71.9 million, respectively.
Contract Acquisition Costs
The Degree Program Segment had $0.5 million and $0.5 million of net capitalized contract acquisition costs recorded primarily within other assets, non-current on the condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021, respectively. For each of the six months ended June 30, 2022 and 2021, the Company capitalized an immaterial amount of contract acquisition costs and recorded an immaterial amount of associated amortization expense in the Degree Program Segment.