CAPELLA EDUCATION CO, 10-Q filed on 4/24/2012
Quarterly Report
Document And Entity Information
3 Months Ended
Mar. 31, 2012
Apr. 19, 2012
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Mar. 31, 2012 
 
Document Fiscal Year Focus
2012 
 
Document Fiscal Period Focus
Q1 
 
Trading Symbol
cpla 
 
Entity Registrant Name
CAPELLA EDUCATION CO 
 
Entity Central Index Key
0001104349 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
13,487,584 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Current Assets:
 
 
Cash and cash equivalents
$ 82,945 
$ 61,977 
Marketable Securities, current
45,570 
65,067 
Accounts receivable, net of allowance of $4,395 at September 30, 2011 and $3,783 at December 31, 2010
17,145 
18,239 
Prepaid expenses and other current assets
9,074 
12,493 
Deferred income taxes
3,490 
3,452 
Total current assets
158,224 
161,228 
Property and equipment, net
48,548 
50,713 
Goodwill
16,914 
16,980 
Intangibles, net
6,082 
6,552 
Total assets
229,768 
235,473 
Current liabilities:
 
 
Accounts payable
4,051 
8,977 
Accrued liabilities
26,173 
29,306 
Income taxes payable
5,748 
2,427 
Deferred revenue
7,612 
7,769 
Total current liabilities
43,584 
48,479 
Deferred rent
4,092 
4,215 
Other liabilities
6,702 
6,425 
Deferred income taxes
12,308 
12,575 
Total liabilities
66,686 
71,694 
Redeemable noncontrolling interest
1,576 
1,180 
Shareholders' equity:
 
 
Common stock, $0.01 par value: Authorized shares - 100,000, issued and outstanding shares - 14,651 at September 30, 2011 and 16,306 at December 31, 2010
136 
139 
Additional paid-in capital
102,738 
103,900 
Accumulated other comprehensive income
216 
307 
Retained earnings
58,416 
58,253 
Total shareholders' equity
161,506 
162,599 
Total liabilities and shareholders' equity
$ 229,768 
$ 235,473 
Consolidated Balance Sheets (Parenthetical) (USD $)
Mar. 31, 2012
Dec. 31, 2011
Current Assets:
 
 
Accounts receivable, allowance
$ 5,613,000 
$ 5,789,000 
Shareholders' Equity:
 
 
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, authorized shares
100,000 
100,000 
Common stock, issued shares
13,574 
13,882 
Common stock, outstanding shares
13,574 
13,882 
Consolidated Statements Of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Revenues
$ 109,400 
$ 111,354 
Costs and expenses:
 
 
Instructional costs and services
46,770 
42,499 
Marketing and promotional
32,870 
35,321 
General and administrative
11,823 
9,205 
Reduction of workforce
0 
1,862 
Total costs and expenses
91,463 
88,887 
Operating income
17,937 
22,467 
Other income (expense), net
(43)
525 
Income before income taxes
17,894 
22,992 
Income tax expense
6,787 
8,492 
Net income
11,107 
14,500 
Net loss attributable to noncontrolling interest
186 
109 
Net income attributable to Capella Education Company
$ 11,293 
$ 14,609 
Net income attributable to Capella Education Company per common share:
 
 
Basic net income attributable to Capella Education Company per common share
$ 0.82 
$ 0.90 
Diluted net income attributable to Capella Education Company per common share
$ 0.82 
$ 0.90 
Weighted average number of common shares outstanding:
 
 
Weighted average shares outstanding - Basic
13,714 
16,182 
Weighted average shares outstanding - Diluted
13,783 
16,290 
Consolidated Statements Of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Net income
$ 11,107 
$ 14,500 
Net loss attributable to noncontrolling interest
(186)
(109)
Net income attributable to Capella Education Company
11,293 
14,609 
Other comprehensive income, net of tax:
 
 
Foreign currency translation gain
10 
0 
Unrealized losses on available for sale securities
(101)
(69)
Comprehensive income attributable to Capella Education Company
$ 11,202 
$ 14,540 
Consolidated Statements Of Cash Flows (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Operating activities
 
 
Net income
$ 11,107 
$ 14,500 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Provision for bad debts
3,509 
1,746 
Depreciation and amortization
7,221 
5,327 
Amortization of investment discount/premium
(271)
(607)
Impairment of property and equipment
956 
0 
Loss (gain) on disposal of property and equipment
50 
(35)
Share-based compensation
1,115 
884 
Excess tax benefits from share-based compensation
34 
119 
Deferred income taxes
(266)
(39)
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed:
 
 
Accounts receivable
2,440 
497 
Prepaid expenses and other current assets
(3,475)
(261)
Accounts payable and accrued liabilities
(8,078)
(7,306)
Income tax payable
3,205 
8,400 
Deferred rent
(124)
959 
Deferred revenue
(108)
(1,200)
Net cash provided by operating activities
19,859 
23,488 
Investing activities
 
 
Capital expenditures
(5,580)
(4,899)
Proceeds from the sale of property and equipment
303 
0 
Purchases of marketable securities
0 
(1,500)
Sales and maturities of marketable securities
19,065 
7,760 
Net cash provided by investing activities
13,788 
1,361 
Financing activities
 
 
Excess tax benefits from share-based compensation
34 
119 
Net proceeds from exercise of stock options
230 
1,256 
Repurchases of common stock
(12,935)
(26,948)
Net cash used in financing activities
(12,671)
(25,573)
Effect of foreign exchange rates on cash
(8)
0 
Net increase (decrease) in cash and cash equivalents
20,968 
(724)
Cash and cash equivalents
61,977 
77,416 
Cash and cash equivalents
82,945 
76,692 
Supplemental disclosures of cash flow information
 
 
Income taxes paid
3,836 
152 
Noncash transactions:
 
 
Purchase of equipment included in accounts payable and accrued liabilities
$ 634 
$ 405 
Nature Of Business
Nature of Operations [Text Block]
Nature of Business

Capella Education Company (the Company) was incorporated on December 27, 1991, and is the parent company of its wholly owned subsidiaries, Capella University (the University) and Resource Development International Limited (RDI). The University, founded in 1993, is an online postsecondary education services company offering a variety of bachelor's, master's and doctoral degree programs primarily delivered to working adults. The University is accredited by The Higher Learning Commission and is a member of the North Central Association of Colleges and Schools. In 2011, the Company acquired RDI, which is an independent provider of United Kingdom (UK) university distance learning qualifications and markets, develops and delivers programs worldwide via its offices and partners across Asia, North America, Africa and Europe. The Company is also the majority owner of the joint venture Sophia Learning, LLC (Sophia), formed in 2010. Sophia provides a social teaching and learning platform that integrates education with technology. On April 16, 2012, the Company acquired the remaining interest in Sophia, and will account for Sophia as a wholly owned subsidiary beginning in the second quarter of 2012.
Summary Of Significant Accounting Policies
Significant Accounting Policies [Text Block]
Summary of Significant Accounting Policies

Consolidation
The consolidated financial statements include the accounts of the Company, the University, RDI and its subsidiaries, and Sophia, after elimination of intercompany accounts and transactions. RDI operates on a fiscal year ending October 31.

Unaudited Interim Financial Information
The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these statements include all adjustments (consisting of normal recurring adjustments) considered necessary to present a fair statement of the Company's consolidated results of operations, financial position and cash flows. Operating results for any interim period are not necessarily indicative of the results that may be expected for the full year. Preparation of the Company’s financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and footnotes. Actual results could differ from those estimates. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and footnotes included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2011 (2011 Annual Report on Form 10-K).

Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Subsequent Events
The Company has evaluated events and transactions that occurred during the period subsequent to the balance sheet date. On April 16, 2012, the Company acquired the remaining interest in Sophia for approximately $1.6 million in an arms-length transaction. Refer to Note 10 for additional details.
Refer to the Company’s “Summary of Significant Accounting Policies” footnote included in its 2011 Annual Report on Form 10-K for a complete summary of the Company’s significant accounting policies.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
Recent Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S GAAP and IFRS, which is included in Accounting Standards Codification (ASC) 820, Fair Value Measurement. This update defines fair value, clarifies a framework to measure fair value, and requires specific disclosures of fair value measurements. The guidance is effective for the Company's interim and annual reporting periods beginning January 1, 2012, and applied prospectively. The adoption of this guidance did not have a material impact on the Company's financial condition, results of operations, or disclosures.

In September 2011, the FASB issued ASU No. 2011-08, Testing Goodwill for Impairment, which is included in ASC 350, Intangibles-Goodwill and Other. This update reduces the complexity, and potentially the cost, of testing goodwill for impairment. The guidance gives the Company the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, and in some cases skip the two-step impairment test. The guidance is effective for the Company's interim and annual reporting periods beginning January 1, 2012, and applied prospectively. The adoption of this guidance did not have a material impact on the Company's financial condition, results of operations, or disclosures.
 
The Company has reviewed and considered all recent accounting pronouncements and believes there are none that could potentially have a material impact on its financial condition, results of operations, or disclosures.
Net Income Attributable To Capella Education Company Per Common Share
Earnings Per Share [Text Block]
Net Income Attributable to Capella Education Company per Common Share

Basic net income attributable to Capella Education Company per common share is based on the weighted average number of shares of common stock outstanding during the period. Dilutive shares are computed using the Treasury Stock method and include the incremental effect of shares that would be issued upon the assumed exercise of stock options and the vesting of restricted stock.
The following table presents a reconciliation of the numerator and denominator in the basic and diluted net income attributable to Capella Education Company per common share calculation, in thousands, except per share data: 
 
Three Months Ended March 31,
 
2012
 
2011
Numerator:
 
 
 
Net income attributable to Capella Education Company
$
11,293

 
$
14,609

Denominator:
 
 
 
Denominator for basic net income attributable to Capella Education Company per common share— weighted average shares outstanding
13,714

 
16,182

Effect of dilutive stock options and restricted stock
69

 
108

Denominator for diluted net income attributable to Capella Education Company per common share— weighted average shares outstanding
13,783

 
16,290

Basic net income attributable to Capella Education Company per common share
$
0.82

 
$
0.90

Diluted net income attributable to Capella Education Company per common share
$
0.82

 
$
0.90


Options to purchase 0.6 million and 0.3 million common shares were outstanding, but not included in the computation of diluted net income per common share in the three months ended March 31, 2012 and 2011, respectively, because their effect would be antidilutive.
Marketable Securities
Marketable Securities
Marketable Securities

The following is a summary of available-for-sale securities, in thousands: 
 
As of March 31, 2012
 
Amortized Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
(Losses)
 
Estimated
Fair Value
Tax-exempt municipal securities
$
45,277

 
$
293

 
$
—

 
$
45,570

Total
$
45,277

 
$
293

 
$
—

 
$
45,570

 
 
 
 
 
 
 
 
 
As of December 31, 2011
 
Amortized Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
(Losses)
 
Estimated
Fair Value
Tax-exempt municipal securities
$
64,613

 
$
454

 
$
—

 
$
65,067

Total
$
64,613

 
$
454

 
$
—

 
$
65,067




The unrealized gains and losses on the Company’s investments in municipal securities as of March 31, 2012 and December 31, 2011 were caused by changes in market values primarily due to interest rate changes. The Company had no securities in an unrealized loss position as of March 31, 2012. No other-than-temporary impairment charges were recorded for the three months ended March 31, 2012 and 2011.
The following table summarizes the remaining contractual maturities of the Company’s marketable securities, in thousands: 
 
As of March 31, 2012
 
As of December 31, 2011
Due within one year
$
43,503

 
$
54,151

Due after one year through five years
2,067

 
10,916

Total
$
45,570

 
$
65,067



The following table is a summary of the proceeds from the maturities of available-for-sale securities, in thousands: 
 
Three Months Ended March 31,
 
2012
 
2011
Maturities of marketable securities
$
19,065

 
$
7,760

Total
$
19,065

 
$
7,760



The Company did not record any gross realized gains or gross realized losses in net income during the three months ended March 31, 2012 and 2011.
Fair Value Measurements
Fair Value Disclosures [Text Block]
Fair Value Measurements

The following tables summarize certain information for assets and liabilities measured at fair value on a recurring basis, in thousands: 
 
 
Fair Value Measurements as of March 31, 2012 Using
Description
 
Fair Value
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
 
Cash and cash equivalents:
 
 
 
 
 
 
 
 
Cash
 
$
14,323

 
$
14,323

 
$
—

 
$
—

Money market funds
 
19,572

 
19,572

 
—

 
—

Variable rate demand notes
 
49,050

 
49,050

 
—

 
—

Marketable securities:
 
 
 
 
 
 
 
 
Tax-exempt municipal securities
 
45,570

 
—

 
45,570

 
—

Total assets at fair value on a recurring basis:
 
$
128,515

 
$
82,945

 
$
45,570

 
$
—

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Other liabilities:
 
 
 
 
 
 
 
 
RDI contingent consideration
 
$
6,110

 
$
—

 
$
—

 
$
6,110

Total liabilities at fair value on a recurring basis:
 
$
6,110

 
$
—

 
$
—

 
$
6,110


 
 
Fair Value Measurements as of December 31, 2011 Using
Description
 
Fair Value
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
 
Cash and cash equivalents:
 
 
 
 
 
 
 
 
Cash
 
$
17,101

 
$
17,101

 
$
—

 
$
—

Money market funds
 
27,551

 
27,551

 
—

 
—

Variable rate demand notes
 
17,325

 
17,325

 
—

 
—

Marketable securities:
 
 
 
 
 
 
 
 
Tax-exempt municipal securities
 
65,067

 
—

 
65,067

 
—

Total assets at fair value on a recurring basis:
 
$
127,044

 
$
61,977

 
$
65,067

 
$
—

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Other liabilities:
 
 
 
 
 
 
 
 
RDI contingent consideration
 
$
5,945

 
$
—

 
$
—

 
$
5,945

Total liabilities at fair value on a recurring basis:
 
$
5,945

 
$
—

 
$
—

 
$
5,945



The Company measures cash and cash equivalents at fair value primarily using real-time quotes for transactions in active exchange markets involving identical assets. The variable rate demand notes contain a feature allowing the Company to require payment by the issuer on a daily or weekly basis. As a result, these securities are highly liquid and are classified as cash and cash equivalents. The Company’s marketable securities are classified within Level 2 and are valued using readily available pricing sources for comparable instruments utilizing market observable inputs. The Company does not hold securities in inactive markets. The Company did not have any transfers of assets between Level 1 and Level 2 of the fair value measurement hierarchy during the three months ended March 31, 2012 and 2011.

Level 3 Measurements

RDI Contingent Consideration

In connection with the acquisition of RDI, the Company is required to make an additional payment contingent on whether RDI is awarded Taught Degree Awarding Powers (TDAP) by the British Government. Refer to Note 11 for additional details regarding the acquisition of RDI. As the contingent consideration is classified as a liability, ASC 805 Business Combinations (ASC 805) requires that the Company re-measure the liability at fair value at each reporting date until it is extinguished. As such, the Company classified the RDI contingent consideration liability within Level 3 of the fair value measurement hierarchy.

The fair value of the the RDI contingent consideration as of March 31, 2012 was determined using the discounted cash flow approach and was based on the present value of the probability-weighted expected cash flows based on the Company's estimates of the timing and probability of RDI achieving TDAP. The discount rate reflects the risk of a market participant who holds the corresponding asset. To estimate the discount rate, the Company considered the market participant weighted average cost of capital of the business risk associated with RDI achieving TDAP. The discount rate was then adjusted to incorporate risk-free rates and costs of debt for a term commensurate with the term of the contingent consideration as well as the low probability risk of the contingent consideration payments not being made.

The fair value measurement of the RDI contingent consideration encompasses the following significant unobservable inputs:
Unobservable Inputs
 
Range
Weighted average cost of capital
 
5% - 8%
Timing of cash flows
 
3 - 39 months
Probability of TDAP achievement
 
0% - 100%


Significant increases or decreases in any of the inputs in isolation would result in a significantly lower or higher fair value measurement.
The following table presents a reconciliation of the fair value of the RDI contingent consideration, in thousands:
Balance, December 31, 2011
 
$
5,945

Accretion of RDI contingent consideration liability
 
165

Balance, March 31, 2012
 
$
6,110



The increase in the fair value of the RDI contingent consideration liability was recorded in other income (expense), net for the three months ended March 31, 2012.

Redeemable Noncontrolling Interest

The fair value of the redeemable noncontrolling interest as of December 31, 2011 was determined using the discounted cash flow approach and was based on the present value of the probability-weighted expected cash flows using the Company's estimates of various business model options that Sophia may pursue and was thus deemed a Level 3 measurement. As a result of the April 16, 2012 buyout of the remaining interest in Sophia, the Company adjusted the fair value of the redeemable noncontrolling interest to approximately $1.6 million, which represented the purchase price. Refer to Note 10 for additional details regarding the redeemable noncontrolling interest fair value measurement.
Accrued Liabilities
Accrued Liabilities
Accrued Liabilities

Accrued liabilities consist of the following, in thousands: 
 
As of March 31, 2012
 
As of December 31, 2011
Accrued compensation and benefits
$
4,915

 
$
8,978

Accrued instructional
6,216

 
7,291

Accrued vacation
1,578

 
994

Other
13,464

 
12,043

Total
$
26,173

 
$
29,306



“Other” in the table above consists primarily of vendor invoices accrued in the normal course of business.

The Company recorded liabilities of approximately $1.9 million and $1.3 million relating to the strategic reductions in workforce in February and November 2011, respectively, which were recorded as a component of accrued liabilities. The following presents the Company's reduction in workforce liability for the three months ended March 31, 2012, in thousands:
Balance, December 31, 2011
 
$
967

Payments
 
820

Balance, March 31, 2012
 
$
147

Commitments And Contingencies
Commitments And Contingencies Disclosure [Text Block]
Commitments and Contingencies

Operating Leases
The Company leases its office facilities and certain office equipment under various noncancelable operating leases and has contractual obligations related to certain software license agreements. Effective August 29, 2011, the Company entered into an amendment of its current lease with Minneapolis 225 Holdings, LLC pursuant to which the Company renewed and extended its existing lease for premises at 225 South Sixth Street in Minneapolis, Minnesota through 2018. Renewal terms under this lease allow the Company to extend the current lease for up to two additional five-year terms.









The following presents the Company's future minimum lease commitments as of March 31, 2012, in thousands:
 
2012
$
5,186

2013
6,376

2014
6,299

2015
6,240

2016
6,401

2017 and thereafter
12,120

Total
$
42,622



The Company recognizes rent expense on a straight-line basis over the term of the lease, although the lease may include escalation clauses providing for lower payments at the beginning of the lease term and higher payments at the end of the lease term. Cash or lease incentives received from lessors are recognized on a straight-line basis as a reduction to rent from the date the Company takes possession of the property through the end of the lease term. The Company records the unamortized portion of the incentive as a component of deferred rent, in accrued liabilities or long-term liabilities, as appropriate.

Revolving Credit Facility
On September 30, 2011, the Company entered into an unsecured revolving credit agreement (the Credit Agreement) with Bank of America, N.A., and certain other lenders. The Credit Agreement provides $100.0 million of borrowing capacity (the credit facility), with an increase option of an additional $50.0 million. The Credit Agreement expires on September 30, 2016.

Borrowings under the Credit Agreement bear interest at a rate equal to LIBOR plus an applicable rate of 1.75% to 2.25% based on the Company’s consolidated leverage ratio or, at the Company’s option, an alternative base rate (defined as the higher of (a) the federal funds rate plus 0.5%, (b) Bank of America’s prime rate, or (c) the one-month LIBOR plus 1.0%) plus an applicable rate of 0.75% to 1.25% based on the Company’s consolidated leverage ratio. The Credit Agreement requires payment of a commitment fee, based on the Company’s consolidated leverage ratio, charged on the unused credit facility. Outstanding letters of credit are also charged a fee, based on the Company’s consolidated leverage ratio. The Company capitalized approximately $0.5 million of debt issuance costs related to the credit facility, which are being amortized on a straight-line basis over a period of five years. Interest expense for the amortization of debt issuance costs is recorded in other income (expense), net.
The Credit Agreement contains certain covenants that, among other things, require maintenance of certain financial ratios, as defined in the agreement. Failure to comply with the covenants contained in the Credit Agreement will constitute an event of default and could result in termination of the agreement and require payment of all outstanding borrowings. As of March 31, 2012, there were no borrowings under the credit facility and the Company was in compliance with all debt covenants.

Litigation
On November 5, 2010, a purported securities class action lawsuit captioned Police Pension Fund of Peoria, Individually, and on Behalf of All Others Similarly Situated v. Capella Education Company, J. Kevin Gilligan and Lois M. Martin, was filed in the U.S. District Court for the District of Minnesota. The complaint names the Company and certain senior executives as defendants, and alleges the Company and the named defendants made false or misleading public statements about the Company's business and prospects during the time period from February 16, 2010 through August 13, 2010 in violation of federal securities laws, and that these statements artificially inflated the trading price of the Company’s common stock to the detriment of shareholders who purchased shares during that time. The plaintiff seeks compensatory damages for the purported class. Since that time, substantially similar complaints making similar allegations against the same defendants for the same purported class period were filed with the federal court. Pursuant to the Private Securities Litigation Reform Act of 1995, on April 13, 2011, the Court appointed Oklahoma Firefighters Pension and Retirement System as lead plaintiff and Abraham, Fruchter and Twersley, LLP, as lead counsel. A consolidated amended complaint, captioned Oklahoma Firefighters Pension and Retirement System, Individually and on Behalf of All Others Similarly Situated, v. Capella Education Company, J. Kevin Gilligan, Lois M. Martin and Amy L. Ronneberg, was filed on June 27, 2011. The Company filed a motion to dismiss the plaintiff’s complaint on September 2, 2011, and a hearing on that motion was held on December 21, 2011. The District Court will rule on the motion at some time in the future.
Discovery in this case has not yet begun. Because of the many questions of fact and law that may arise, the outcome of this legal proceeding is uncertain at this point. Based on information available to the Company at present, it does not believe loss from this action is probable and, accordingly, has not accrued any liability associated with this action.
In the ordinary conduct of business, the Company is subject to various lawsuits and claims covering a wide range of matters including, but not limited to, claims involving learners or graduates and routine employment matters. While the outcome of these matters is uncertain, the Company does not believe the outcome of these matters will have a material adverse impact on its consolidated financial position or results of operations.
Stock Repurchase Program
Stock Repurchase Program
Share Repurchase Program

The Company announced its current share repurchase program in July 2008. The Board of Directors authorizes repurchases of outstanding shares of common stock from time to time depending on market conditions and other considerations. A summary of the Company’s comprehensive share repurchase activity from the program's commencement through March 31, 2012, all of which was part of its publicly announced program, is presented below, in thousands: 
Board authorizations:
 
July 2008
$
60,000

August 2010
60,662

February 2011
65,000

December 2011
50,000

Total amount authorized
235,662

Total value of shares repurchased
188,952

Residual authorization
$
46,710



During the three months ended March 31, 2012, the Company repurchased 0.3 million shares for total consideration of $12.9 million. The Company repurchased 0.5 million shares for total consideration of $27.3 million during the three months ended March 31, 2011; due to timing, cash payments made for these share repurchases were $26.9 million. As of March 31, 2012, the Company had purchased an aggregate of 4.0 million shares under the program’s outstanding authorizations at an average price per share of $47.59 totaling $189.0 million.
Noncontrolling Interest
Noncontrolling Interest
Noncontrolling Interest

Sophia became a majority owned subsidiary of the Company in 2010. The equity interest in Sophia not owned by the Company is reported as noncontrolling interest on the consolidated balance sheet of the Company. Losses incurred by Sophia are charged to the Company and to the noncontrolling interest holder based on ownership percentage.

There is a put option within the Sophia Learning, LLC agreement which permits the noncontrolling interest to put its shares to the Company within a specified time period. Since these shares are outside the control of the Company, the noncontrolling interest is considered contingently redeemable and thus is presented in mezzanine equity in the consolidated balance sheet. Pursuant to authoritative guidance, if the value of the contingently redeemable noncontrolling interest is less than the fair market value, and it is probable the contingency related to the put option will be met, then the carrying value of the contingently redeemable noncontrolling interest must be adjusted to fair market value through a charge directly to retained earnings.

On April 16, 2012, the Company acquired the remaining interest in Sophia for approximately $1.6 million in an arms-length transaction. As the purchase price was determinable as of the balance sheet date and considered to be at fair market value, the Company evaluated the nature of this subsequent event and increased the redeemable noncontrolling interest to fair market value through a charge to retained earnings of approximately $0.6 million. The Company will account for Sophia as a wholly owned subsidiary beginning in the second quarter of 2012 when the noncontrolling interests were acquired.
Acquisition Of RDI
Acquisition Of RDI
Acquisition of RDI

On July 15, 2011, the Company acquired 100% of the share capital of RDI for £7.9 million (approximately $12.6 million), net of cash acquired. RDI is an independent provider of UK university distance learning qualifications and markets, develops and delivers these programs worldwide via its offices and partners across Asia, North America, Africa and Europe. RDI’s online distance learning offerings span from degree-entry programs to doctoral level programs and are offered in a variety of disciplines, including business, management, psychology, law, and computing.

As a result of years of investment in its academic infrastructure, RDI has applied to the British Government for TDAP. If awarded, TDAP will enable RDI to independently validate its own degrees going forward under the auspices of the Quality Assurance Agency, a Government body that reviews the standards and quality of all UK universities. Under the terms of the agreement, the Company will make an additional payment of £4.0 million (approximately $6.4 million) if TDAP is granted to RDI. The Company recorded a liability of $5.9 million as of the acquisition date, for the fair value of the TDAP contingent consideration which is included in other liabilities. As the contingent consideration is classified as a liability, ASC 805 requires that the Company re-measure the liability at fair value at each reporting date until it is extinguished. As such, the Company classified the RDI contingent consideration liability within Level 3 of the fair value hierarchy. Refer to Note 6 for discussion of Level 3 fair value measurements.

The Company finalized the purchase accounting in the fourth quarter of 2011 and measured the fair value of the assets acquired and liabilities assumed in accordance with ASC 805. The Company recorded goodwill of $17.0 million, and capitalized $7.1 million of intangible assets primarily consisting of partner and student relationships, trademark and trade name, learning model, and internally developed software. The estimated useful lives of the intangible assets range from two to ten years. The Company recorded the acquired deferred revenue at its fair value of $1.6 million as of the acquisition date, and assumed net liabilities of approximately $3.9 million in this transaction.

The results of operations of RDI have been included in the Company’s consolidated results of operations since the date of acquisition.
Regulatory Supervision And Oversight
Regulatory Supervision And Oversight
Regulatory Supervision and Oversight

Capella University is subject to extensive regulation by federal and state governmental agencies and accrediting bodies. In particular, the Higher Education Act (HEA) and the regulations promulgated thereunder by the U.S. Department of Education (DOE) subject the University to significant regulatory scrutiny on the basis of numerous standards that schools must satisfy to participate in the various types of federal learner financial assistance under Title IV Programs.

To participate in the Title IV Programs, an institution must be authorized to offer its programs of instruction by the relevant agencies of the state in which it is located, accredited by an accrediting agency recognized by the DOE and certified as eligible by the DOE. The DOE will certify an institution to participate in the Title IV programs only after the institution has demonstrated compliance with the HEA and the DOE's extensive academic, administrative, and financial regulations regarding institutional eligibility. An institution must also demonstrate its compliance with these requirements to the DOE on an ongoing basis. The University performs periodic reviews of its compliance with the various applicable regulatory requirements. The University has not been notified by any of the various regulatory agencies of any significant noncompliance matters that would adversely impact its ability to participate in Title IV programs, however, the Office of Inspector General (OIG) has conducted a compliance audit of the University. The audit commenced on April 10, 2006 and the University subsequently provided the OIG with periodic information, responded to follow up inquiries and facilitated site visits and access to its records. The OIG completed its fieldwork in January 2007 and the University received a draft audit report on August 23, 2007. The University provided written comments on the draft audit report to the OIG on September 25, 2007. On March 7, 2008, the OIG's final report was issued to the Acting Chief Operating Officer for Federal Student Aid (FSA), which is responsible for primary oversight of the Title IV funding programs. The University responded to the final report on April 8, 2008. The University provided FSA staff with certain additional requested information for financial aid years 2002-2003 through 2007-2008. The FSA will subsequently issue final findings and requirements for the University. The FSA may take certain actions, including requiring that the University refund certain federal student aid funds, modify the Title IV administration procedures, and/or requiring the University to pay fines or penalties.

Based on the draft audit report, the most significant potential financial exposure from the audit pertains to repayments to the Department of Education that could be required if the OIG concludes that the University did not properly calculate the amount of Title IV funds required to be returned for learners that withdrew without providing an official notification of such withdrawal and without engaging in academic activity prior to such withdrawal. If it is determined that the University improperly withheld any portion of these funds, it would be required to return the improperly withheld funds. The University and the OIG have differing interpretations of the relevant regulations regarding what constitutes engagement in the unofficial withdrawal context. As the University interprets the engagement requirement, it currently estimates for the three year audit period, and for the 2005-2006, 2006-2007 and 2007-2008 financial aid years, the total amount of Title IV funds not returned for learners who withdrew without providing official notification was approximately $1.0 million, including interest, but not including fines and penalties. If this difference of interpretation is ultimately resolved in a manner adverse to the Company, then the total amount of Title IV funds not returned for learners who withdrew without providing official notification would be greater than the amount the University has currently estimated.

Political and budgetary concerns significantly affect the Title IV Programs. Congress reauthorizes the HEA and other laws governing Title IV Programs approximately every five to eight years. The last reauthorization of the HEA was completed in August 2008. Additionally, Congress reviews and determines appropriations for Title IV programs on an annual basis through the budget and appropriations processes. As of March 31, 2012, programs in which the University's learners participate are operative and sufficiently funded.
Summary Of Significant Accounting Policies (Policy)
Consolidation 
Consolidation
The consolidated financial statements include the accounts of the Company, the University, RDI and its subsidiaries, and Sophia, after elimination of intercompany accounts and transactions. RDI operates on a fiscal year ending October 31.
Unaudited Interim Financial Information 
Unaudited Interim Financial Information
The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these statements include all adjustments (consisting of normal recurring adjustments) considered necessary to present a fair statement of the Company's consolidated results of operations, financial position and cash flows. Operating results for any interim period are not necessarily indicative of the results that may be expected for the full year. Preparation of the Company’s financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and footnotes. Actual results could differ from those estimates. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and footnotes included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2011 (2011 Annual Report on Form 10-K).
Use Of Estimates 
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Subsequent Events 
Subsequent Events
The Company has evaluated events and transactions that occurred during the period subsequent to the balance sheet date. On April 16, 2012, the Company acquired the remaining interest in Sophia for approximately $1.6 million in an arms-length transaction. Refer to Note 10 for additional details.
Net Income Attributable To Capella Education Company Per Common Share (Tables)
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block]
The following table presents a reconciliation of the numerator and denominator in the basic and diluted net income attributable to Capella Education Company per common share calculation, in thousands, except per share data: 
 
Three Months Ended March 31,
 
2012
 
2011
Numerator:
 
 
 
Net income attributable to Capella Education Company
$
11,293

 
$
14,609

Denominator:
 
 
 
Denominator for basic net income attributable to Capella Education Company per common share— weighted average shares outstanding
13,714

 
16,182

Effect of dilutive stock options and restricted stock
69

 
108

Denominator for diluted net income attributable to Capella Education Company per common share— weighted average shares outstanding
13,783

 
16,290

Basic net income attributable to Capella Education Company per common share
$
0.82

 
$
0.90

Diluted net income attributable to Capella Education Company per common share
$
0.82

 
$
0.90

Marketable Securities (Tables)
Summary Of Available-For-Sale Securities 
The following is a summary of available-for-sale securities, in thousands: 
 
As of March 31, 2012
 
Amortized Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
(Losses)
 
Estimated
Fair Value
Tax-exempt municipal securities
$
45,277

 
$
293

 
$
—

 
$
45,570

Total
$
45,277

 
$
293

 
$
—

 
$
45,570

 
 
 
 
 
 
 
 
 
As of December 31, 2011
 
Amortized Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
(Losses)
 
Estimated
Fair Value
Tax-exempt municipal securities
$
64,613

 
$
454

 
$
—

 
$
65,067

Total
$
64,613

 
$
454

 
$
—

 
$
65,067

Summary Of Remaining Contractual Maturities Of Marketable Securities 
The following table summarizes the remaining contractual maturities of the Company’s marketable securities, in thousands: 
 
As of March 31, 2012
 
As of December 31, 2011
Due within one year
$
43,503

 
$
54,151

Due after one year through five years
2,067

 
10,916

Total
$
45,570

 
$
65,067

Proceeds From The Sale And Maturities Of Available-For-Sale Securities 
The following table is a summary of the proceeds from the maturities of available-for-sale securities, in thousands: 
 
Three Months Ended March 31,
 
2012
 
2011
Maturities of marketable securities
$
19,065

 
$
7,760

Total
$
19,065

 
$
7,760

Fair Value Measurements Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2012
Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block]
Text Block 
Text Block 
Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block]
Text Block 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
Text Block 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block] 
The following tables summarize certain information for assets and liabilities measured at fair value on a recurring basis, in thousands: 
 
 
Fair Value Measurements as of March 31, 2012 Using
Description
 
Fair Value
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
 
Cash and cash equivalents:
 
 
 
 
 
 
 
 
Cash
 
$
14,323

 
$
14,323

 
$
—

 
$
—

Money market funds
 
19,572

 
19,572

 
—

 
—

Variable rate demand notes
 
49,050

 
49,050

 
—

 
—

Marketable securities:
 
 
 
 
 
 
 
 
Tax-exempt municipal securities
 
45,570

 
—

 
45,570

 
—

Total assets at fair value on a recurring basis:
 
$
128,515

 
$
82,945

 
$
45,570

 
$
—

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Other liabilities:
 
 
 
 
 
 
 
 
RDI contingent consideration
 
$
6,110

 
$
—

 
$
—

 
$
6,110

Total liabilities at fair value on a recurring basis:
 
$
6,110

 
$
—

 
$
—

 
$
6,110

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block] 
 
 
Fair Value Measurements as of December 31, 2011 Using
Description
 
Fair Value
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
 
Cash and cash equivalents:
 
 
 
 
 
 
 
 
Cash
 
$
17,101

 
$
17,101

 
$
—

 
$
—

Money market funds
 
27,551

 
27,551

 
—

 
—

Variable rate demand notes
 
17,325

 
17,325

 
—

 
—

Marketable securities:
 
 
 
 
 
 
 
 
Tax-exempt municipal securities
 
65,067

 
—

 
65,067

 
—

Total assets at fair value on a recurring basis:
 
$
127,044

 
$
61,977

 
$
65,067

 
$
—

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Other liabilities:
 
 
 
 
 
 
 
 
RDI contingent consideration
 
$
5,945

 
$
—

 
$
—

 
$
5,945

Total liabilities at fair value on a recurring basis:
 
$
5,945

 
$
—

 
$
—

 
$
5,945

Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block] 
The fair value measurement of the RDI contingent consideration encompasses the following significant unobservable inputs:
Unobservable Inputs
 
Range
Weighted average cost of capital
 
5% - 8%
Timing of cash flows
 
3 - 39 months
Probability of TDAP achievement
 
0% - 100%
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] 
The following table presents a reconciliation of the fair value of the RDI contingent consideration, in thousands:
Balance, December 31, 2011
 
$
5,945

Accretion of RDI contingent consideration liability
 
165

Balance, March 31, 2012
 
$
6,110

Accrued Liabilities (Tables)
Schedule Of Accrued Liabilities [Table Text Block] 
Accrued liabilities consist of the following, in thousands: 
 
As of March 31, 2012
 
As of December 31, 2011
Accrued compensation and benefits
$
4,915

 
$
8,978

Accrued instructional
6,216

 
7,291

Accrued vacation
1,578

 
994

Other
13,464

 
12,043

Total
$
26,173

 
$
29,306

Schedule of Restructuring and Related Costs [Table Text Block] 
The following presents the Company's reduction in workforce liability for the three months ended March 31, 2012, in thousands:
Balance, December 31, 2011
 
$
967

Payments
 
820

Balance, March 31, 2012
 
$
147

Commitments And Contingencies (Tables)
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]
uture minimum lease commitments as of March 31, 2012, in thousands:
 
2012
$
5,186

2013
6,376

2014
6,299

2015
6,240

2016
6,401

2017 and thereafter
12,120

Total
$
42,622

Stock Repurchase Program (Tables)
Schedule Of Comprehensive Stock Repurchase Activity
A summary of the Company’s comprehensive share repurchase activity from the program's commencement through March 31, 2012, all of which was part of its publicly announced program, is presented below, in thousands: 
Board authorizations:
 
July 2008
$
60,000

August 2010
60,662

February 2011
65,000

December 2011
50,000

Total amount authorized
235,662

Total value of shares repurchased
188,952

Residual authorization
$
46,710

Nature Of Business Nature of Business (Details)
Apr. 16, 2012
Nature Of Business [Abstract]
 
Noncontrolling Interest Acquisition Date
Apr. 16, 2012 
Summary Of Significant Accounting Policies Summary of Significant Accounting Policies (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jun. 30, 2012
Apr. 16, 2012
Summary of Significant Accounting Policies [Abstract]
 
 
Noncontrolling Interest Acquisition Date
 
Apr. 16, 2012 
Payments for Repurchase of Redeemable Noncontrolling Interest
$ 1.6 
 
Net Income Attributable To Capella Education Company Per Common Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Numerator:
 
 
Net income attributable to Capella Education Company
$ 11,293 
$ 14,609 
Denominator:
 
 
Weighted average shares outstanding - Basic
13,714,000 
16,182,000 
Effect of dilutive stock options and restricted stock
69,000 
108,000 
Weighted average shares outstanding - Diluted
13,783,000 
16,290,000 
Basic net income attributable to Capella Education Company per common share
$ 0.82 
$ 0.90 
Diluted net income attributable to Capella Education Company per common share
$ 0.82 
$ 0.90 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
600,000 
300,000 
Marketable Securities (Summary Of Available-For-Sale Securities) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
 
 
Available-for-sale Securities, Amortized Cost Basis
$ 45,277 
$ 64,613 
Available-for-sale Securities, Gross Unrealized Gains
293 
454 
Available-for-sale Securities, Gross Unrealized Losses
0 
0 
Marketable Securities, current
45,570 
65,067 
Tax-Exempt Municipal Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Available-for-sale Securities, Amortized Cost Basis
45,277 
64,613 
Available-for-sale Securities, Gross Unrealized Gains
293 
454 
Available-for-sale Securities, Gross Unrealized Losses
0 
0 
Marketable Securities, current
$ 45,570 
$ 65,067 
Marketable Securities (Summary Of Remaining Contractual Maturities Of Marketable Securities) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Marketable Securities [Abstract]
 
 
Due within one year
$ 43,503 
$ 54,151 
Due after one year through five years
2,067 
10,916 
Marketable Securities, current
$ 45,570 
$ 65,067 
Marketable Securities (Proceeds From The Sale And Maturities Of Available-For-Sale Securities) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Marketable Securities [Abstract]
 
 
Proceeds from Sale and Maturity of Available-for-sale Securities
$ 19,065 
$ 7,760 
Sales and maturities of marketable securities
$ 19,065 
$ 7,760 
Marketable Securities (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Marketable Securities [Abstract]
 
 
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions
0 
 
Other-than-temporary impairment charges
$ 0 
$ 0 
Gross realized gains
0 
0 
Gross realized losses
$ 0 
$ 0 
Fair Value Measurements Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Marketable Securities, current
$ 45,570 
 
$ 65,067 
Fair Value, Level 2 to level 1 Transfers, Amount
0 
0 
 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Assets, Fair Value Disclosure
128,515 
 
127,044 
Liabilities, Fair Value Disclosure
6,110 
 
5,945 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Assets, Fair Value Disclosure
82,945 
 
61,977 
Liabilities, Fair Value Disclosure
0 
 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Assets, Fair Value Disclosure
45,570 
 
65,067 
Liabilities, Fair Value Disclosure
0 
 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Assets, Fair Value Disclosure
0 
 
0 
Liabilities, Fair Value Disclosure
6,110 
 
5,945 
Cash [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Cash and Cash Equivalents, Fair Value Disclosure
14,323 
 
17,101 
Cash [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Cash and Cash Equivalents, Fair Value Disclosure
14,323 
 
17,101 
Cash [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Cash and Cash Equivalents, Fair Value Disclosure
0 
 
0 
Cash [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Cash and Cash Equivalents, Fair Value Disclosure
0 
 
0 
Money Market Funds [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Cash and Cash Equivalents, Fair Value Disclosure
19,572 
 
27,551 
Money Market Funds [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Cash and Cash Equivalents, Fair Value Disclosure
19,572 
 
27,551 
Money Market Funds [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Cash and Cash Equivalents, Fair Value Disclosure
0 
 
0 
Money Market Funds [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Cash and Cash Equivalents, Fair Value Disclosure
0 
 
0 
Interest-bearing Deposits [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Cash and Cash Equivalents, Fair Value Disclosure
49,050 
 
17,325 
Interest-bearing Deposits [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Cash and Cash Equivalents, Fair Value Disclosure
49,050 
 
17,325 
Interest-bearing Deposits [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Cash and Cash Equivalents, Fair Value Disclosure
0 
 
0 
Interest-bearing Deposits [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Cash and Cash Equivalents, Fair Value Disclosure
0 
 
0 
Tax-Exempt Municipal Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Available-for-sale Securities, Fair Value Disclosure
45,570 
 
65,067 
Tax-Exempt Municipal Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Available-for-sale Securities, Fair Value Disclosure
0 
 
0 
Tax-Exempt Municipal Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Available-for-sale Securities, Fair Value Disclosure
0 
 
0 
RDI Contingent Consideration [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Other Liabilities, Fair Value Disclosure
6,110 
 
5,945 
RDI Contingent Consideration [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Other Liabilities, Fair Value Disclosure
0 
 
0 
RDI Contingent Consideration [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Other Liabilities, Fair Value Disclosure
0 
 
0 
RDI Contingent Consideration [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Other Liabilities, Fair Value Disclosure
$ 6,110 
 
$ 5,945 
Fair Value Measurements Fair Value Measurements (Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation) (Details) (RDI Contingent Consideration [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
RDI Contingent Consideration [Member]
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Beginning Balance
$ 5,945 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings
165 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance
$ 6,110 
Fair Value Measurements Fair Value Measurements (Fair Value Inputs, Liabilities, Quantitative Information) (Details) (Income Approach Valuation Technique [Member], Fair Value, Inputs, Level 3 [Member], RDI Contingent Consideration [Member])
3 Months Ended
Mar. 31, 2012
Minimum [Member]
 
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
 
Fair Value Inputs, Discount Rate
5.00% 
Fair Value Inputs, Timing of Cash Flows
3 
Fair Value Inputs, Probability of TDAP Achievement
0.00% 
Maximum [Member]
 
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
 
Fair Value Inputs, Discount Rate
8.00% 
Fair Value Inputs, Timing of Cash Flows
39 
Fair Value Inputs, Probability of TDAP Achievement
100.00% 
Accrued Liabilities Accrued Liabilities (Schedule of Accrued Liabilities) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Accrued Liabilities [Abstract]
 
 
Accrued compensation and benefits
$ 4,915 
$ 8,978 
Accrued instructional
6,216 
7,291 
Accrued vacation
1,578 
994 
Other
13,464 
12,043 
Accrued Liabilities
$ 26,173 
$ 29,306 
Accrued Liabilities Accrued Liabilities (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2011
Mar. 31, 2011
Accrued Liabilities [Abstract]
 
 
Restructuring Charges
$ 1.3 
$ 1.9 
Commitments And Contingencies (Tables) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Commitments and Contingencies Disclosure [Abstract]
 
2011
$ 5,186 
2012
6,376 
2013
6,299 
2014
6,240 
2015
6,401 
2016 and thereafter
12,120 
Total
$ 42,622 
Commitments And Contingencies (Narrative) (Details) (USD $)
3 Months Ended
Mar. 31, 2012
Line Of Credit Facility [Line Items]
 
Number Of Lease Extension Terms
2 
Lease Extension Term
5 
Line of credit
$ 100,000,000 
Option for additional borrowing
50,000,000 
Line of credit facility, expiration date
9/30/2016 
Capitalized transaction costs related to credit facility
500,000 
Amortization period of transaction costs, years
5 
Borrowings under the line of credit
$ 0 
LIBOR [Member] |
Minimum [Member]
 
Line Of Credit Facility [Line Items]
 
Line of credit facility, interest rate
1.75% 
LIBOR [Member] |
Maximum [Member]
 
Line Of Credit Facility [Line Items]
 
Line of credit facility, interest rate
2.25% 
Federal Funds Rate [Member] |
Alternative Base Rate [Member]
 
Line Of Credit Facility [Line Items]
 
Line of credit facility, interest rate
0.50% 
One Month Libor [Member] |
Alternative Base Rate [Member]
 
Line Of Credit Facility [Line Items]
 
Line of credit facility, interest rate
1.00% 
One Month Libor [Member] |
Alternative Base Rate [Member] |
Minimum [Member]
 
Line Of Credit Facility [Line Items]
 
Line of credit facility, interest rate
0.75% 
One Month Libor [Member] |
Alternative Base Rate [Member] |
Maximum [Member]
 
Line Of Credit Facility [Line Items]
 
Line of credit facility, interest rate
1.25% 
Stock Repurchase Program (Tables) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Share Repurchase Program Authorizations [Line Items]
 
Stock Repurchase Program, Authorized Amount
$ 235,662 
Cumulative Value Of Shares Repurchased
188,952 
Stock Repurchase Program, Remaining Authorized Repurchase Amount
46,710 
July 2008 [Member]
 
Share Repurchase Program Authorizations [Line Items]
 
Stock Repurchase Program, Authorized Amount
60,000 
August 2010 [Member]
 
Share Repurchase Program Authorizations [Line Items]
 
Stock Repurchase Program, Authorized Amount
60,662 
February 2011 [Member]
 
Share Repurchase Program Authorizations [Line Items]
 
Stock Repurchase Program, Authorized Amount
65,000 
December 2011 [Member]
 
Share Repurchase Program Authorizations [Line Items]
 
Stock Repurchase Program, Authorized Amount
$ 50,000 
Stock Repurchase Program (Narrative) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Statement of Stockholders' Equity [Abstract]
 
 
Stock Repurchased During Period, Shares
0.3 
0.5 
Repurchase of Common Stock
$ 12.9 
$ 27.3 
Cash Payments for Share Repurchases
 
26.9 
Number of aggregate shares repurchased under programs
4.0 
 
Shares repurchased, average price per share
$ 47.59 
 
Aggregate Consideration for Shares Repurchased
$ 189.0 
 
Noncontrolling Interest Noncontrolling Interest (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jun. 30, 2012
Mar. 31, 2012
Apr. 16, 2012
Noncontrolling Interest [Abstract]
 
 
 
Noncontrolling Interest Acquisition Date
 
 
Apr. 16, 2012 
Payments for Repurchase of Redeemable Noncontrolling Interest
$ 1.6 
 
 
Accretion Of Noncontrolling Interest
 
$ 0.6 
 
Acquisition Of RDI (Details)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
USD ($)
Mar. 31, 2012
GBP (£)
Jul. 15, 2011
USD ($)
Jul. 15, 2011
GBP (£)
Business Combinations [Abstract]
 
 
 
 
Date of acquisition
7/15/2011 
7/15/2011 
 
 
Acquisition of RDI
 
 
100.00% 
100.00% 
Acquisition amount paid
$ 12.6 
£ 7.9 
 
 
Additional payment if TDAP is granted
 
 
6.4 
4.0 
Business Acquisition, Contingent Consideration, at Fair Value, Noncurrent
 
 
5.9 
 
Goodwill from acquired assets
 
 
17.0 
 
Capitalized intangible assets
 
 
7.1 
 
Estimated useful lives of intangible assets, minimum, in years
2 
2 
 
 
Estimated useful lives of intangible assets, maximum, in years
10 
10 
 
 
Deferred revenue acquired at fair value
 
 
1.6 
 
Assumed net liabilities
 
 
$ 3.9 
 
Regulatory Supervision And Oversight (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Schedule Of Regulatory Supervision And Oversight [Line Items]
 
Title IV Funds Not Returned
$ 1.0 
Maximum [Member]
 
Schedule Of Regulatory Supervision And Oversight [Line Items]
 
Reauthorization The Higher Education Act And Other Laws Governing Title IV Programs Approximate Period
8 
Minimum [Member]
 
Schedule Of Regulatory Supervision And Oversight [Line Items]
 
Reauthorization The Higher Education Act And Other Laws Governing Title IV Programs Approximate Period
5