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• | Level 1 – Observable inputs that reflect quoted market prices (unadjusted) for identical assets and liabilities in active markets; |
• | Level 2 – Observable inputs, other than quoted market prices, that are either directly or indirectly observable in the marketplace for identical or similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities; and |
• | Level 3 – Unobservable inputs that are supported by little or no market activity that are significant to the fair value of assets or liabilities. |
Computer equipment | 3 to 7 years |
Furniture and office equipment | 5 to 7 years |
Computer software | 3 to 5 years |
Year-Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Numerator: | |||||||||||
Net income attributable to Capella Education Company | $ | 37,943 | $ | 35,203 | $ | 36,477 | |||||
Denominator: | |||||||||||
Denominator for basic net income attributable to Capella Education Company per common share - weighted average shares outstanding | 12,286 | 12,391 | 13,156 | ||||||||
Effect of dilutive stock options, restricted stock, and market stock units | 249 | 175 | 64 | ||||||||
Denominator for diluted net income attributable to Capella Education Company per common share - weighted average shares outstanding | 12,535 | 12,566 | 13,220 | ||||||||
Basic net income attributable to Capella Education Company per common share | $ | 3.09 | $ | 2.84 | $ | 2.77 | |||||
Diluted net income attributable to Capella Education Company per common share | $ | 3.03 | $ | 2.80 | $ | 2.76 |
• | Stock options and restricted stock units. To calculate the estimated fair value of stock options on the date of grant, the Company uses the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the Company to estimate key assumptions such as the expected term, volatility, risk-free interest rate and dividend yield to determine the fair value of stock options, based on both historical information and management judgment regarding market factors and trends. |
• | Market stock units. To calculate the estimated fair value of MSUs on the date of grant, the Company uses Monte Carlo simulations. The Monte Carlo simulations are based on the expected average market price of the Company's common stock for a defined number of calendar days prior to the stated vesting date to estimate the expected number of MSUs that will convert into common shares at the vesting date. Management's key assumptions include volatility, risk-free interest rates, and dividend yields. |
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As of December 31, 2014 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Estimated Fair Value | ||||||||||||
Tax-exempt municipal securities | $ | 65,708 | $ | 31 | $ | (71 | ) | $ | 65,668 | ||||||
Corporate debt securities | 7,379 | 4 | (2 | ) | 7,381 | ||||||||||
Total | $ | 73,087 | $ | 35 | $ | (73 | ) | $ | 73,049 | ||||||
As of December 31, 2013 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Estimated Fair Value | ||||||||||||
Tax-exempt municipal securities | $ | 30,422 | $ | 46 | $ | — | $ | 30,468 | |||||||
Corporate debt securities | 5,615 | 3 | (4 | ) | 5,614 | ||||||||||
Total | $ | 36,037 | $ | 49 | $ | (4 | ) | $ | 36,082 |
As of December 31, 2014 | As of December 31, 2013 | ||||||
Due within one year | $ | 29,619 | $ | 18,342 | |||
Due after one year through five years | 43,430 | 17,740 | |||||
Total | $ | 73,049 | $ | 36,082 |
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Maturities of marketable securities | $ | 25,415 | $ | 7,885 | $ | 55,545 | |||||
Total | $ | 25,415 | $ | 7,885 | $ | 55,545 |
|
Fair Value Measurements as of December 31, 2014 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 | $ | 64,004 | $ | 64,004 | $ | — | $ | — | ||||||||
Money market funds | 29,999 | 29,999 | — | — | ||||||||||||
Marketable securities: | ||||||||||||||||
Tax-exempt municipal securities | 65,668 | — | 65,668 | — | ||||||||||||
Corporate debt securities | 7,381 | — | 7,381 | — | ||||||||||||
Total assets at fair value on a recurring basis | $ | 167,052 | $ | 94,003 | $ | 73,049 | $ | — |
Fair Value Measurements as of December 31, 2013 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 | $ | 47,796 | $ | 47,796 | $ | — | $ | — | ||||||||
Money market funds | 57,066 | 57,066 | — | — | ||||||||||||
Variable rate demand notes | 19,235 | 19,235 | — | — | ||||||||||||
Marketable securities: | ||||||||||||||||
Tax-exempt municipal securities | 30,468 | — | 30,468 | — | ||||||||||||
Corporate debt securities | 5,614 | — | 5,614 | — | ||||||||||||
Total assets at fair value on a recurring basis | $ | 160,179 | $ | 124,097 | $ | 36,082 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Accrued liabilities: | ||||||||||||||||
RDI contingent consideration | $ | 6,304 | $ | — | $ | — | $ | 6,304 | ||||||||
Total liabilities at fair value on a recurring basis | $ | 6,304 | $ | — | $ | — | $ | 6,304 |
Year-Ended December 31, | ||||||||
2014 | 2013 | |||||||
Balance, beginning of year | $ | 6,304 | $ | 6,252 | ||||
Increase in RDI contingent consideration liability | 547 | 52 | ||||||
Payment of RDI contingent consideration liability | (6,851 | ) | — | |||||
Balance, end of year | $ | — | $ | 6,304 |
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As of December 31, | |||||||
2014 | 2013 | ||||||
Computer software | $ | 134,249 | $ | 130,870 | |||
Computer equipment | 34,757 | 44,050 | |||||
Furniture and office equipment | 13,248 | 13,563 | |||||
Leasehold improvements | 1,252 | 1,311 | |||||
183,506 | 189,794 | ||||||
Less accumulated depreciation and amortization | (146,260 | ) | (149,801 | ) | |||
Property and equipment, net | $ | 37,246 | $ | 39,993 |
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Balance as of December 31, 2012 | $ | 16,970 | |
Effects of foreign currency exchange rates | (1 | ) | |
Balance as of December 31, 2013 | 16,969 | ||
Effects of foreign currency exchange rates | (8 | ) | |
Balance as of December 31, 2014 | $ | 16,961 |
Student Relationships | Validation Partner Relationships | Trademark and Trade Name | Learning Model | Internally Developed Software | Total | ||||||||||||||||||
Net Carrying Amount as of December 31, 2012 | $ | 1,498 | $ | 1,876 | $ | 610 | $ | 519 | $ | 171 | 4,674 | ||||||||||||
Amortization | (1,240 | ) | (328 | ) | (70 | ) | (141 | ) | (100 | ) | (1,879 | ) | |||||||||||
Net Carrying Amount as of December 31, 2013 | 258 | 1,548 | 540 | 378 | 71 | 2,795 | |||||||||||||||||
Amortization | (258 | ) | (329 | ) | (70 | ) | (140 | ) | (71 | ) | (868 | ) | |||||||||||
Net Carrying Amount as of December 31, 2014 | $ | — | $ | 1,219 | $ | 470 | $ | 238 | $ | — | $ | 1,927 |
2015 | 539 | ||
2016 | 498 | ||
2017 | 399 | ||
2018 | 303 | ||
2019 | 70 | ||
2020 and thereafter | 118 | ||
Total | $ | 1,927 |
|
As of December 31, 2014 | As of December 31, 2013 | ||||||
Accrued compensation and benefits | $ | 7,482 | $ | 10,333 | |||
Accrued instructional | 4,361 | 5,043 | |||||
Accrued vacation | 1,234 | 1,040 | |||||
Accrued invoices | 8,238 | 7,240 | |||||
RDI contingent consideration | — | 6,304 | |||||
Other | 2,095 | 3,204 | |||||
Total | $ | 23,410 | $ | 33,164 |
|
2015(1) | $ | 8,116 | |
2016 | 6,177 | ||
2017 | 5,950 | ||
2018 | 4,877 | ||
2019 | — | ||
2020 and thereafter | — | ||
Total | $ | 25,120 |
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Year-Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Current income tax expense: | |||||||||||
Federal | $ | 24,133 | $ | 24,480 | $ | 25,182 | |||||
State | 1,611 | 1,478 | 1,445 | ||||||||
Foreign | — | — | 4 | ||||||||
Deferred income tax expense: | |||||||||||
Federal | (341 | ) | (1,429 | ) | (2,533 | ) | |||||
State | 79 | (44 | ) | (185 | ) | ||||||
Foreign | (55 | ) | 10 | (866 | ) | ||||||
Income tax expense | $ | 25,427 | $ | 24,495 | $ | 23,047 |
Year-Ended December 31, | ||||||||
2014 | 2013 | 2012 | ||||||
Statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State income taxes | 2.7 | 2.5 | 2.3 | |||||
Foreign taxes | 0.9 | 1.3 | 1.0 | |||||
Valuation allowance | 0.6 | 2.4 | 1.1 | |||||
Tax-exempt interest | (0.1 | ) | (0.1 | ) | (0.5 | ) | ||
Other | 1.0 | (0.1 | ) | (0.1 | ) | |||
Effective income tax rate | 40.1 | % | 41.0 | % | 38.8 | % |
Year-Ended December 31, | |||||||
2014 | 2013 | ||||||
Deferred income tax assets: | |||||||
Net operating loss carryforwards | $ | 3,102 | $ | 2,957 | |||
Allowance for doubtful accounts | 3,402 | 3,251 | |||||
Accrued liabilities | 1,823 | 2,198 | |||||
Share-based compensation | 4,993 | 4,833 | |||||
Accumulated other comprehensive loss | 14 | — | |||||
Other | 17 | 1 | |||||
Deferred income tax assets | 13,351 | 13,240 | |||||
Deferred income tax liabilities: | |||||||
Prepaid expenses | (1,441 | ) | (1,376 | ) | |||
Accumulated other comprehensive income | — | (16 | ) | ||||
Property and equipment | (12,078 | ) | (12,489 | ) | |||
Intangible assets | (388 | ) | (597 | ) | |||
Other | — | (27 | ) | ||||
Deferred income tax liabilities | (13,907 | ) | (14,505 | ) | |||
Net deferred tax liability before valuation allowance | (556 | ) | (1,265 | ) | |||
Valuation allowance | (2,529 | ) | (2,172 | ) | |||
Net deferred tax liability | $ | (3,085 | ) | $ | (3,437 | ) |
Year-Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Balance at January 1 | $ | 42 | $ | 75 | $ | 425 | |||||
Additions for tax positions of current year | — | 12 | 6 | ||||||||
Additions for tax positions of prior years | 9 | — | 14 | ||||||||
Reductions for tax positions of prior years | — | — | — | ||||||||
Settlements | — | — | 2 | ||||||||
Reductions due to lapse of the applicable statute of limitations | (13 | ) | (45 | ) | (372 | ) | |||||
Balance at December 31 | $ | 38 | $ | 42 | $ | 75 |
|
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As of December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Foreign currency translation | $ | (311 | ) | $ | (142 | ) | $ | (32 | ) | ||
Unrealized gains (losses) on marketable securities, net of tax | (24 | ) | 28 | 10 | |||||||
Accumulated other comprehensive income (loss)(1) | $ | (335 | ) | $ | (114 | ) | $ | (22 | ) |
(1) | Accumulated other comprehensive income (loss) is net of $14 thousand, $17 thousand, and $6 thousand of taxes as of December 31, 2014, 2013, and 2012, respectively. The unrealized gains and losses on the Company’s marketable securities were primarily caused by changes in market values as a result of interest rate changes. |
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First | Second | Third | Fourth | Total | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||
2014 | |||||||||||||||||||
Revenues | $ | 105,596 | $ | 104,832 | $ | 103,097 | $ | 108,442 | $ | 421,967 | |||||||||
Operating income | 15,143 | 15,464 | 13,176 | 20,312 | 64,095 | ||||||||||||||
Net income attributable to Capella Education Company | 8,817 | 9,044 | 7,757 | 12,325 | 37,943 | ||||||||||||||
Net income attributable to Capella Education Company per common share: | |||||||||||||||||||
Basic | $ | 0.71 | $ | 0.74 | $ | 0.63 | $ | 1.01 | $ | 3.09 | |||||||||
Diluted | $ | 0.70 | $ | 0.72 | $ | 0.62 | $ | 0.99 | $ | 3.03 | |||||||||
Cash dividend declared per common share | $ | 0.35 | $ | 0.35 | $ | 0.35 | $ | 0.37 | $ | 1.42 | |||||||||
2013 | |||||||||||||||||||
Revenues | $ | 105,242 | $ | 103,693 | $ | 100,703 | $ | 105,985 | $ | 415,623 | |||||||||
Operating income | 15,175 | 17,465 | 10,510 | 16,727 | 59,877 | ||||||||||||||
Net income attributable to Capella Education Company | 8,755 | 10,422 | 6,010 | 10,016 | 35,203 | ||||||||||||||
Net income attributable to Capella Education Company per common share: | |||||||||||||||||||
Basic | $ | 0.71 | $ | 0.84 | $ | 0.48 | $ | 0.81 | $ | 2.84 | |||||||||
Diluted | $ | 0.70 | $ | 0.83 | $ | 0.48 | $ | 0.79 | $ | 2.80 | |||||||||
Cash dividend declared per common share | $ | — | $ | — | $ | — | $ | 0.35 | $ | 0.35 |
|
Beginning Balance | Acquisition | Additions Charged to Expense | Deductions(a) | Ending Balance | |||||||||||
(In thousands) | |||||||||||||||
Allowance for doubtful accounts for the years ended: | |||||||||||||||
December 31, 2014 | $ | 7,091 | $ | — | $ | 14,848 | $ | (15,381 | ) | $ | 6,558 | ||||
December 31, 2013 | $ | 6,231 | $ | — | $ | 15,132 | $ | (14,272 | ) | $ | 7,091 | ||||
December 31, 2012 | $ | 5,789 | $ | — | $ | 17,310 | $ | (16,868 | ) | $ | 6,231 |
Beginning Balance | Acquisition | Additions Charged to Expense (b) | Deductions | Ending Balance | |||||||||||
(In thousands) | |||||||||||||||
Valuation allowance for the year-ended: | |||||||||||||||
December 31, 2014 | $ | 2,172 | $ | — | $ | 357 | $ | — | $ | 2,529 | |||||
December 31, 2013 | $ | 700 | $ | — | $ | 1,472 | $ | — | $ | 2,172 | |||||
December 31, 2012 | $ | — | — | 700 | — | $ | 700 |
(a) | Allowance for doubtful accounts deductions represent write-offs of accounts receivable. |
(b) | Valuation allowance addition includes establishment of and increases to valuation allowance on foreign net deferred tax assets primarily related to net operating losses. |
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• | Level 1 – Observable inputs that reflect quoted market prices (unadjusted) for identical assets and liabilities in active markets; |
• | Level 2 – Observable inputs, other than quoted market prices, that are either directly or indirectly observable in the marketplace for identical or similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities; and |
• | Level 3 – Unobservable inputs that are supported by little or no market activity that are significant to the fair value of assets or liabilities. |
Computer equipment | 3 to 7 years |
Furniture and office equipment | 5 to 7 years |
Computer software | 3 to 5 years |
Year-Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Numerator: | |||||||||||
Net income attributable to Capella Education Company | $ | 37,943 | $ | 35,203 | $ | 36,477 | |||||
Denominator: | |||||||||||
Denominator for basic net income attributable to Capella Education Company per common share - weighted average shares outstanding | 12,286 | 12,391 | 13,156 | ||||||||
Effect of dilutive stock options, restricted stock, and market stock units | 249 | 175 | 64 | ||||||||
Denominator for diluted net income attributable to Capella Education Company per common share - weighted average shares outstanding | 12,535 | 12,566 | 13,220 | ||||||||
Basic net income attributable to Capella Education Company per common share | $ | 3.09 | $ | 2.84 | $ | 2.77 | |||||
Diluted net income attributable to Capella Education Company per common share | $ | 3.03 | $ | 2.80 | $ | 2.76 |
• | Stock options and restricted stock units. To calculate the estimated fair value of stock options on the date of grant, the Company uses the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the Company to estimate key assumptions such as the expected term, volatility, risk-free interest rate and dividend yield to determine the fair value of stock options, based on both historical information and management judgment regarding market factors and trends. |
• | Market stock units. To calculate the estimated fair value of MSUs on the date of grant, the Company uses Monte Carlo simulations. The Monte Carlo simulations are based on the expected average market price of the Company's common stock for a defined number of calendar days prior to the stated vesting date to estimate the expected number of MSUs that will convert into common shares at the vesting date. Management's key assumptions include volatility, risk-free interest rates, and dividend yields. |
|
Computer equipment | 3 to 7 years |
Furniture and office equipment | 5 to 7 years |
Computer software | 3 to 5 years |
Year-Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Numerator: | |||||||||||
Net income attributable to Capella Education Company | $ | 37,943 | $ | 35,203 | $ | 36,477 | |||||
Denominator: | |||||||||||
Denominator for basic net income attributable to Capella Education Company per common share - weighted average shares outstanding | 12,286 | 12,391 | 13,156 | ||||||||
Effect of dilutive stock options, restricted stock, and market stock units | 249 | 175 | 64 | ||||||||
Denominator for diluted net income attributable to Capella Education Company per common share - weighted average shares outstanding | 12,535 | 12,566 | 13,220 | ||||||||
Basic net income attributable to Capella Education Company per common share | $ | 3.09 | $ | 2.84 | $ | 2.77 | |||||
Diluted net income attributable to Capella Education Company per common share | $ | 3.03 | $ | 2.80 | $ | 2.76 |
|
As of December 31, 2014 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Estimated Fair Value | ||||||||||||
Tax-exempt municipal securities | $ | 65,708 | $ | 31 | $ | (71 | ) | $ | 65,668 | ||||||
Corporate debt securities | 7,379 | 4 | (2 | ) | 7,381 | ||||||||||
Total | $ | 73,087 | $ | 35 | $ | (73 | ) | $ | 73,049 | ||||||
As of December 31, 2013 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Estimated Fair Value | ||||||||||||
Tax-exempt municipal securities | $ | 30,422 | $ | 46 | $ | — | $ | 30,468 | |||||||
Corporate debt securities | 5,615 | 3 | (4 | ) | 5,614 | ||||||||||
Total | $ | 36,037 | $ | 49 | $ | (4 | ) | $ | 36,082 |
As of December 31, 2014 | As of December 31, 2013 | ||||||
Due within one year | $ | 29,619 | $ | 18,342 | |||
Due after one year through five years | 43,430 | 17,740 | |||||
Total | $ | 73,049 | $ | 36,082 |
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Maturities of marketable securities | $ | 25,415 | $ | 7,885 | $ | 55,545 | |||||
Total | $ | 25,415 | $ | 7,885 | $ | 55,545 |
|
Fair Value Measurements as of December 31, 2014 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 | $ | 64,004 | $ | 64,004 | $ | — | $ | — | ||||||||
Money market funds | 29,999 | 29,999 | — | — | ||||||||||||
Marketable securities: | ||||||||||||||||
Tax-exempt municipal securities | 65,668 | — | 65,668 | — | ||||||||||||
Corporate debt securities | 7,381 | — | 7,381 | — | ||||||||||||
Total assets at fair value on a recurring basis | $ | 167,052 | $ | 94,003 | $ | 73,049 | $ | — |
Fair Value Measurements as of December 31, 2013 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 | $ | 47,796 | $ | 47,796 | $ | — | $ | — | ||||||||
Money market funds | 57,066 | 57,066 | — | — | ||||||||||||
Variable rate demand notes | 19,235 | 19,235 | — | — | ||||||||||||
Marketable securities: | ||||||||||||||||
Tax-exempt municipal securities | 30,468 | — | 30,468 | — | ||||||||||||
Corporate debt securities | 5,614 | — | 5,614 | — | ||||||||||||
Total assets at fair value on a recurring basis | $ | 160,179 | $ | 124,097 | $ | 36,082 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Accrued liabilities: | ||||||||||||||||
RDI contingent consideration | $ | 6,304 | $ | — | $ | — | $ | 6,304 | ||||||||
Total liabilities at fair value on a recurring basis | $ | 6,304 | $ | — | $ | — | $ | 6,304 |
Year-Ended December 31, | ||||||||
2014 | 2013 | |||||||
Balance, beginning of year | $ | 6,304 | $ | 6,252 | ||||
Increase in RDI contingent consideration liability | 547 | 52 | ||||||
Payment of RDI contingent consideration liability | (6,851 | ) | — | |||||
Balance, end of year | $ | — | $ | 6,304 |
|
As of December 31, | |||||||
2014 | 2013 | ||||||
Computer software | $ | 134,249 | $ | 130,870 | |||
Computer equipment | 34,757 | 44,050 | |||||
Furniture and office equipment | 13,248 | 13,563 | |||||
Leasehold improvements | 1,252 | 1,311 | |||||
183,506 | 189,794 | ||||||
Less accumulated depreciation and amortization | (146,260 | ) | (149,801 | ) | |||
Property and equipment, net | $ | 37,246 | $ | 39,993 |
|
Balance as of December 31, 2012 | $ | 16,970 | |
Effects of foreign currency exchange rates | (1 | ) | |
Balance as of December 31, 2013 | 16,969 | ||
Effects of foreign currency exchange rates | (8 | ) | |
Balance as of December 31, 2014 | $ | 16,961 |
Student Relationships | Validation Partner Relationships | Trademark and Trade Name | Learning Model | Internally Developed Software | Total | ||||||||||||||||||
Net Carrying Amount as of December 31, 2012 | $ | 1,498 | $ | 1,876 | $ | 610 | $ | 519 | $ | 171 | 4,674 | ||||||||||||
Amortization | (1,240 | ) | (328 | ) | (70 | ) | (141 | ) | (100 | ) | (1,879 | ) | |||||||||||
Net Carrying Amount as of December 31, 2013 | 258 | 1,548 | 540 | 378 | 71 | 2,795 | |||||||||||||||||
Amortization | (258 | ) | (329 | ) | (70 | ) | (140 | ) | (71 | ) | (868 | ) | |||||||||||
Net Carrying Amount as of December 31, 2014 | $ | — | $ | 1,219 | $ | 470 | $ | 238 | $ | — | $ | 1,927 |
2015 | 539 | ||
2016 | 498 | ||
2017 | 399 | ||
2018 | 303 | ||
2019 | 70 | ||
2020 and thereafter | 118 | ||
Total | $ | 1,927 |
|
As of December 31, 2014 | As of December 31, 2013 | ||||||
Accrued compensation and benefits | $ | 7,482 | $ | 10,333 | |||
Accrued instructional | 4,361 | 5,043 | |||||
Accrued vacation | 1,234 | 1,040 | |||||
Accrued invoices | 8,238 | 7,240 | |||||
RDI contingent consideration | — | 6,304 | |||||
Other | 2,095 | 3,204 | |||||
Total | $ | 23,410 | $ | 33,164 |
|
2015(1) | $ | 8,116 | |
2016 | 6,177 | ||
2017 | 5,950 | ||
2018 | 4,877 | ||
2019 | — | ||
2020 and thereafter | — | ||
Total | $ | 25,120 |
|
Year-Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Current income tax expense: | |||||||||||
Federal | $ | 24,133 | $ | 24,480 | $ | 25,182 | |||||
State | 1,611 | 1,478 | 1,445 | ||||||||
Foreign | — | — | 4 | ||||||||
Deferred income tax expense: | |||||||||||
Federal | (341 | ) | (1,429 | ) | (2,533 | ) | |||||
State | 79 | (44 | ) | (185 | ) | ||||||
Foreign | (55 | ) | 10 | (866 | ) | ||||||
Income tax expense | $ | 25,427 | $ | 24,495 | $ | 23,047 |
Year-Ended December 31, | ||||||||
2014 | 2013 | 2012 | ||||||
Statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State income taxes | 2.7 | 2.5 | 2.3 | |||||
Foreign taxes | 0.9 | 1.3 | 1.0 | |||||
Valuation allowance | 0.6 | 2.4 | 1.1 | |||||
Tax-exempt interest | (0.1 | ) | (0.1 | ) | (0.5 | ) | ||
Other | 1.0 | (0.1 | ) | (0.1 | ) | |||
Effective income tax rate | 40.1 | % | 41.0 | % | 38.8 | % |
Year-Ended December 31, | |||||||
2014 | 2013 | ||||||
Deferred income tax assets: | |||||||
Net operating loss carryforwards | $ | 3,102 | $ | 2,957 | |||
Allowance for doubtful accounts | 3,402 | 3,251 | |||||
Accrued liabilities | 1,823 | 2,198 | |||||
Share-based compensation | 4,993 | 4,833 | |||||
Accumulated other comprehensive loss | 14 | — | |||||
Other | 17 | 1 | |||||
Deferred income tax assets | 13,351 | 13,240 | |||||
Deferred income tax liabilities: | |||||||
Prepaid expenses | (1,441 | ) | (1,376 | ) | |||
Accumulated other comprehensive income | — | (16 | ) | ||||
Property and equipment | (12,078 | ) | (12,489 | ) | |||
Intangible assets | (388 | ) | (597 | ) | |||
Other | — | (27 | ) | ||||
Deferred income tax liabilities | (13,907 | ) | (14,505 | ) | |||
Net deferred tax liability before valuation allowance | (556 | ) | (1,265 | ) | |||
Valuation allowance | (2,529 | ) | (2,172 | ) | |||
Net deferred tax liability | $ | (3,085 | ) | $ | (3,437 | ) |
Year-Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Balance at January 1 | $ | 42 | $ | 75 | $ | 425 | |||||
Additions for tax positions of current year | — | 12 | 6 | ||||||||
Additions for tax positions of prior years | 9 | — | 14 | ||||||||
Reductions for tax positions of prior years | — | — | — | ||||||||
Settlements | — | — | 2 | ||||||||
Reductions due to lapse of the applicable statute of limitations | (13 | ) | (45 | ) | (372 | ) | |||||
Balance at December 31 | $ | 38 | $ | 42 | $ | 75 |
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As of December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Foreign currency translation | $ | (311 | ) | $ | (142 | ) | $ | (32 | ) | ||
Unrealized gains (losses) on marketable securities, net of tax | (24 | ) | 28 | 10 | |||||||
Accumulated other comprehensive income (loss)(1) | $ | (335 | ) | $ | (114 | ) | $ | (22 | ) |
(1) | Accumulated other comprehensive income (loss) is net of $14 thousand, $17 thousand, and $6 thousand of taxes as of December 31, 2014, 2013, and 2012, respectively. The unrealized gains and losses on the Company’s marketable securities were primarily caused by changes in market values as a result of interest rate changes |
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First | Second | Third | Fourth | Total | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||
2014 | |||||||||||||||||||
Revenues | $ | 105,596 | $ | 104,832 | $ | 103,097 | $ | 108,442 | $ | 421,967 | |||||||||
Operating income | 15,143 | 15,464 | 13,176 | 20,312 | 64,095 | ||||||||||||||
Net income attributable to Capella Education Company | 8,817 | 9,044 | 7,757 | 12,325 | 37,943 | ||||||||||||||
Net income attributable to Capella Education Company per common share: | |||||||||||||||||||
Basic | $ | 0.71 | $ | 0.74 | $ | 0.63 | $ | 1.01 | $ | 3.09 | |||||||||
Diluted | $ | 0.70 | $ | 0.72 | $ | 0.62 | $ | 0.99 | $ | 3.03 | |||||||||
Cash dividend declared per common share | $ | 0.35 | $ | 0.35 | $ | 0.35 | $ | 0.37 | $ | 1.42 | |||||||||
2013 | |||||||||||||||||||
Revenues | $ | 105,242 | $ | 103,693 | $ | 100,703 | $ | 105,985 | $ | 415,623 | |||||||||
Operating income | 15,175 | 17,465 | 10,510 | 16,727 | 59,877 | ||||||||||||||
Net income attributable to Capella Education Company | 8,755 | 10,422 | 6,010 | 10,016 | 35,203 | ||||||||||||||
Net income attributable to Capella Education Company per common share: | |||||||||||||||||||
Basic | $ | 0.71 | $ | 0.84 | $ | 0.48 | $ | 0.81 | $ | 2.84 | |||||||||
Diluted | $ | 0.70 | $ | 0.83 | $ | 0.48 | $ | 0.79 | $ | 2.80 | |||||||||
Cash dividend declared per common share | $ | — | $ | — | $ | — | $ | 0.35 | $ | 0.35 |
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