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Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2019

Operating expenses as previously reported and as reclassified

The following table presents the Company's operating expenses as previously reported and as reclassified on its unaudited condensed consolidated statements of income for the three months ended (in thousands):



	New Classification
	March 31, 2018				June 30, 2018				September 30, 2018				December 31, 2018
Prior Classification	I&SC		G&A		I&SC		G&A		I&SC		G&A		I&SC		G&A
Instruction and educational support	$	63,776	$	—	$	64,690	$	—	$	93,290	$	—	$	118,320	$	—
Admissions advisory	4,676		—		4,609		—		9,789		—		12,392		—
Marketing	—		20,124		—		21,113		—		46,165		—		49,577
General and administration	—		11,218		—		11,063		—		15,811		—		18,964
Total reclassified costs and expenses⁽¹⁾	$	68,452	$	31,342	$	69,299	$	32,176	$	103,079	$	61,976	$	130,712	$	68,541

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⁽¹⁾

This amount excludes the amortization of intangible assets, merger and integration costs, and impairment of intangible assets expense line items on the condensed consolidated statements of income as those expense line items were not impacted by the operating expense reclassification.

Schedule of cash, cash equivalents, and restricted cash

The following table illustrates the reconciliation of cash, cash equivalents, and restricted cash shown in the unaudited condensed consolidated statements of cash flows as of June 30, 2018 and 2019 (in thousands):



	As of June 30,
	2018		2019
Cash and cash equivalents	$	171,600	$	375,515
Restricted cash included in other current assets	—		2
Restricted cash included in other assets	500		500
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	172,100	$	376,017

Schedule of tuition receivable and allowance for doubtful accounts

The Company’s tuition receivable and allowance for doubtful accounts were as follows as of December 31, 2018 and June 30, 2019 (in thousands):



	December 31, 2018			June 30, 2019
Tuition receivable	$	84,151		$	78,073
Allowance for doubtful accounts	(28,457		)	(30,733		)
Tuition receivable, net	$	55,694		$	47,340

Schedule of allowance for doubtful accounts

The following table illustrates changes in the Company’s allowance for doubtful accounts for the three and six months ended June 30, 2018 and 2019 (in thousands):



	For the three months ended June 30,						For the six months ended June 30,
	2018			2019			2018			2019
Allowance for doubtful accounts, beginning of period	$	13,775		$	29,387		$	12,687		$	28,457
Additions charged to expense	6,596			11,462			12,987			23,782
Adjustment to value of acquired receivables	—			2,207			—			2,207
Write-offs, net of recoveries	(5,323		)	(12,323		)	(10,626		)	(23,713		)
Allowance for doubtful accounts, end of period	$	15,048		$	30,733		$	15,048		$	30,733

Schedule of reconciliation of shares used to calculate basic and diluted earnings per share

Set forth below is a reconciliation of shares used to calculate basic and diluted earnings per share for the three and six months ended June 30, 2018 and 2019 (in thousands):



	For the three months ended June 30,		For the six months ended June 30,
	2018	2019	2018	2019
Weighted average shares outstanding used to compute basic earnings per share	10,879	21,777	10,812	21,638
Incremental shares issuable upon the assumed exercise of stock options	51	58	48	75
Unvested restricted stock and restricted stock units	450	274	486	366
Shares used to compute diluted earnings per share	11,380	22,109	11,346	22,079