Grand Canyon Education, Inc. | 2013 | FY | 3


2. Financial Statement Presentation

Effective during the first quarter of 2013, the University made changes in its presentation of operating expenses and revised prior periods to conform to the current presentation. The University determined that these changes would provide more meaningful information and are consistent with changes recently made by a number of other regionally accredited for-profit universities. Additionally, this new presentation better classifies its costs consistently with the operational changes the University has made related to the roles and responsibilities of its admissions personnel. Specifically we separated admissions advisory and related expenses from advertising, marketing and promotional expenses as the admissions personnel role has evolved into one in which a substantial amount of time is spent educating students not only during the admissions process but also through matriculation and during their program of study.

We have revised our operating expenses for prior periods to conform to the above disaggregation and revisions to our presentation. There were no changes to total operating expenses or operating income as a result of these changes. The following table presents our operating expenses as previously reported and as revised on our Consolidated Income Statement for the years ended December 31, 2012 and 2011.

 

     2012      2012      2011      2011  
     As Reported      As Revised      As Reported      As Revised  

Costs and expenses:

           

Instructional costs and services

   $ 220,403       $ 220,403       $ 194,801       $ 194,801   

Admissions advisory and related

     —           85,917         —           70,758   

Advertising

     —           51,023         —           45,587   

Marketing and promotional

     —           4,360         —           3,610   

Selling and promotional

     141,300                 119,955         —     

General and administrative

     35,502         35,502         29,043         29,043   

Lease termination costs

     —           —           782         782   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total costs and expenses

   $ 397,205       $ 397,205       $ 344,581       $ 344,581   
  

 

 

    

 

 

    

 

 

    

 

 

 

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