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Income Taxes | 12 Months Ended
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Dec. 31, 2011
Income Taxes [Abstract] |
Income Taxes | 12. Income Taxes The University has deferred tax assets and liabilities that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets are subject to periodic recoverability assessments. Realization of the deferred tax assets, net of deferred tax liabilities is principally dependent upon achievement of projected future taxable income. The University has no valuation allowance at December 31, 2011 and 2010. The components of income tax expense (benefit) are as follows:
|  |  | September 30, |  |  |  | September 30, |  |  |  | September 30, |
|  | Year Ended December 31, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 7,441 |  |  | $ | 22,522 |  |  | $ | 16,587 |
State |  |  | 2,737 |  |  |  | 5,163 |  |  |  | 3,515 |
|  |  | 10,178 |  |  |  | 27,685 |  |  |  | 20,102 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 18,125 |  |  |  | (2,956 | ) |  |  | (1,498 | )
State |  |  | 2,679 |  |  |  | (2,480 | ) |  |  | (625 | )
|  |  | 20,804 |  |  |  | (5,436 | ) |  |  | (2,123 | )
|  | $ | 30,982 |  |  | $ | 22,249 |  |  | $ | 17,979 |
A reconciliation of income tax computed at the U.S. statutory rate to the effective income tax rate is as follows:
|  |  | September 30, |  |  |  | September 30, |  |  |  | September 30, |
|  | Year Ended December 31, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Statutory U.S. federal income tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
State income taxes, net of federal tax benefit |  |  | 5.5 |  |  |  | 5.6 |  |  |  | 5.2 |
State tax credits, net of federal effect |  |  | (1.2 | ) |  |  | (1.7 | ) |  |  | (1.5 | )
Non deductible expenses |  |  | 0.2 |  |  |  | 0.4 |  |  |  | (0.1 | )
Other |  |  | (1.5 | ) |  |  | (0.6 | ) |  |  | 1.1 |
Effective income tax rate |  |  | 38.0 | % |  |  | 38.7 | % |  |  | 39.7 | %
Significant components of the Company’s deferred income tax assets and liabilities are as follows:
|  |  | September 30, |  |  |  | September 30, |
|  | As of December 31, |
|  | 2011 |  |  | 2010 |
Current deferred tax asset (liability): |  |  |  |  |  |  |  |
Accounts receivable allowance for doubtful accounts |  | $ | 4,638 |  |  | $ | 14,713 |
State taxes |  |  | (764 | ) |  |  | (1,512 | )
Estimated litigation loss |  |  | 76 |  |  |  | 2,275 |
Other |  |  | (597 | ) |  |  | 602 |
Current deferred tax asset |  |  | 3,353 |  |  |  | 16,078 |
Non-current deferred tax asset (liability): |  |  |  |  |  |  |  |
Depreciation and leases |  |  | (18,763 | ) |  |  | (7,719 | )
Share-based compensation |  |  | 6,664 |  |  |  | 4,561 |
Deferred rent |  |  | 2,353 |  |  |  | 543 |
Intangibles |  |  | 4,121 |  |  |  | 4,977 |
Other |  |  | 291 |  |  |  | 438 |
Non-current deferred tax (liability) asset |  |  | (5,334 | ) |  |  | 2,800 |
Net deferred tax (liability) asset |  | $ | (1,981 | ) |  | $ | 18,878 |
In January 2008, the University began its accounting for uncertainty in tax positions. The University will recognize the impact of a tax position in its financial statements if that position is more-likely-than-not of being sustained on audit, based on the technical merits of the position. The University discloses all unrecognized tax benefits, which includes the reserves recorded for uncertain tax positions on filed tax returns and the unrecognized portion of affirmative claims. No adjustment was made to opening retained earnings. The University recognizes interest and penalties related to uncertain tax positions in income tax expense. The reconciliation of the beginning and ending balance of unrecognized tax benefits at December 31 is as follows:
|  |  | September 30, |  |  |  | September 30, |
|  | 2011 |  |  | 2010 |
Unrecognized tax benefits, beginning of year |  | $ | 604 |  |  | $ | 1,066 |
Tax positions taken during the current year |  |  |  |  |  |  |  |
Increases |  |  | — |  |  |  | 34 |
Decreases |  |  | — |  |  |  | — |
Tax positions taken during a prior year |  |  |  |  |  |  |  |
Increases |  |  | 1,628 |  |  |  | 235 |
Decreases |  |  | (304 | ) |  |  | (505 | )
Decreases for settlements during the period |  |  | (937 | ) |  |  | (226 | )
Reductions for lapses of applicable statute of limitations |  |  | (146 | ) |  |  | — |
Unrecognized tax benefits, end of year |  | $ | 845 |  |  | $ | 604 |
As of December 31, 2011 and 2010, the unrecognized tax benefit recorded of $543 and $388, respectively, if reversed, would impact the effective tax rate. During the years ended December 31, 2011, 2010, and 2009, the University recognized approximately $123, $80 and $52, respectively, in interest and penalties. At December 31, 2011 and 2010, the University had accrued $121 and $160, respectively, in interest and $0 and $30, respectively, in penalties. It is reasonably possible that the amount of the unrecognized tax benefit will change during the next 12 months, however management does not expect the potential change to have a material effect on the results of operations or financial position. The University’s uncertain tax positions are related to tax years that remain subject to examination by tax authorities. As of December 31, 2011, the earliest tax year still subject to examination for federal and state purposes is 2008 and 2005, respectively. During 2008, the IRS commenced an examination of the University’s 2005 income tax return and subsequently opened 2006 for examination. The University finalized the federal income tax audits of 2005 and 2006 and as a result of the audit findings, paid $67 and $20 in tax and interest, respectively, for 2005 and $159 and $31 in tax and interest, respectively, for 2006 during 2010.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 + Details
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