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Revenue
 9 Months Ended
Sep. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
    
Disaggregation of Revenue

    In the following table, revenue, shown net of grants and scholarships, is disaggregated by type of service provided. The table also includes a reconciliation of the disaggregated revenue with the reportable segments (in thousands):
Three Months Ended September 30, 2020
(Unaudited)
APEIHCNIntersegmentConsolidated
Instructional services, net of grants and scholarships$69,010 $7,977 $(18)$76,969 
Graduation fees400 — — 400 
Textbook and other course materials— 1,411 — 1,411 
Other fees200 153 — 353 
Total Revenue$69,610 $9,541 $(18)$79,133 
Three Months Ended September 30, 2019
(Unaudited)
APEIHCNIntersegmentConsolidated
Instructional services, net of grants and scholarships$60,668 $5,722 $(25)$66,365 
Graduation fees352 — — 352 
Textbook and other course materials— 854 — 854 
Other fees197 120 — 317 
Total Revenue$61,217 $6,696 $(25)$67,888 
    
Nine Months Ended September 30, 2020
(Unaudited)
APEIHCNIntersegmentConsolidated
Instructional services, net of grants and scholarships$208,648 $21,636 $(57)$230,227 
Graduation fees1,001 — — 1,001 
Textbook and other course materials— 3,634 — 3,634 
Other fees602 412 — 1,014 
Total Revenue$210,251 $25,682 $(57)$235,876 


Nine Months Ended September 30, 2019
(Unaudited)
APEIHCNIntersegmentConsolidated
Instructional services, net of grants and scholarships$188,839 $18,735 $(81)$207,493 
Graduation fees936 — — 936 
Textbook and other course materials— 2,515 — 2,515 
Other fees611 334 — 945 
Total Revenue$190,386 $21,584 $(81)$211,889 

The APEI Segment charges the HCN Segment for the value of courses taken by HCN Segment employees at APUS. The intersegment elimination represents the elimination of this intersegment revenue in consolidation.

Contract Balances and Performance Obligations

The Company has no contract assets or deferred contract costs as of September 30, 2020 and December 31, 2019.
The Company recognizes a contract liability, or deferred revenue, when a student begins an online course or term, in the case of APUS, or starts a term, in the case of HCN. Deferred revenue at September 30, 2020 was $25.5 million and includes $17.0 million in future revenue that has not yet been earned for courses and terms that are in progress, as well as $8.5 million in consideration received in advance for future courses or terms, or student deposits. Deferred revenue at December 31, 2019 was $17.4 million and includes $9.6 million in future revenue that has not yet been earned for courses and terms that are in progress, as well as $7.8 million in student deposits. Deferred revenue represents the Company’s performance obligation to transfer future instructional services to students. The Company’s remaining performance obligations represent the transaction price allocated to future reporting periods.
The Company has elected, as a practical expedient, not to disclose additional information about unsatisfied performance obligations for contracts with customers that have an expected duration of one year or less.
When the Company begins performing its obligations, a contract receivable is created, resulting in accounts receivable on the Company’s Consolidated Balance Sheets. The Company accounts for receivables in accordance with FASB ASC 310, Receivables. The Company uses the portfolio approach, a practical expedient, to evaluate if a contract exists and to assess collectability at the time of contract inception based on historical experience. Contracts are subsequently reviewed for collectability if significant events or circumstances indicate a change.
The allowance for doubtful accounts is based on management’s evaluation of the status of existing accounts receivable. Among other factors, management considers the age of the receivable, the anticipated source of payment, and historical allowance considerations. Consideration is also given to any specific known risk areas among the existing accounts receivable balances. Recoveries of receivables previously written off are recorded when received. APUS does not charge interest on past due accounts receivable. HCN charges interest on payment plans when a student leaves upon graduation or exit of the program. Interest income earned on open receivables during the three and nine months ended September 30, 2020 was approximately $4,900 and $13,520, respectively, compared to interest income of approximately $3,200 and $11,400 earned during the three and nine months ended September 30, 2019, respectively.For the three and nine months ended September 30, 2020, there were no material adverse impacts to revenue, deferred revenue, or accounts receivable due to the COVID-19 pandemic.