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DISCONTINUED OPERATIONS | 12 Months Ended
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Dec. 31, 2012
DISCONTINUED OPERATIONS | 5. DISCONTINUED OPERATIONS As of December 31, 2012, the results of operations for schools that have ceased operations or were sold are presented within discontinued operations. During the fourth quarter of 2012, our LCB Pittsburgh campus ceased operations. All current and prior period financial statements include the results of operations and financial position of LCB Pittsburgh as a component of discontinued operations. Results of Discontinued Operations Combined summary results of operations for our discontinued operations for the years ended December 31, 2012, 2011 and 2010, were as follows:
|  | For the Year Ended December 31, |
|  | 2012 |  |  | 2011 (1) |  |  | 2010 |
|  | (Dollars in thousands) |
Revenue |  | $ | 1,295 |  |  | $ | 42,868 |  |  | $ | 55,127 |
(Loss) income before income tax |  | $ | (12,200 | ) |  | $ | 19,162 |  |  | $ | (9,292 | )
Income tax benefit |  |  | (4,310 | ) |  |  | (2,672) |  |  |  | (3,395 | )
(Loss) income from discontinued operations, net of tax |  | $ | (7,890 | ) |  | $ | 21,834 |  |  | $ | (5,897 | )
(1) | During the year ended December 31, 2011, we completed the sale of our Istituto Marangoni schools in Milan, Paris and London. As a result of that transaction we recorded a pretax gain of approximately $27.1 million. The income tax benefit for fiscal 2011 included $0.3 million of income tax expense related to this sale. The tax gain related to this transaction was significantly less than the gain reflected within the income before income tax for fiscal 2011 due to the $20.2 million of goodwill which was allocated to the remainder of the International reporting unit for book purposes, but which was included in the net assets sold for purposes of calculating the taxable gain.
Assets and Liabilities of Discontinued Operations Assets and liabilities of discontinued operations on our consolidated balance sheets as of December 31, 2012 and 2011 include the following:
|  | As of December 31, |
|  | 2012 |  |  | 2011 |
|  | (Dollars in thousands) |
Assets: |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 62 |  |  | $ | — |
Receivables, net |  |  | 421 |  |  |  | 736 |
Other current assets |  |  | — |  |  |  | 142 |
Deferred income tax assets |  |  | 3,450 |  |  |  | 3,327 |
Total current assets |  |  | 3,933 |  |  |  | 4,205 |
Non-current assets: |  |  |  |  |  |  |  |
Property and equipment, net |  |  | 7 |  |  |  | 69 |
Intangible assets, net |  |  | — |  |  |  | 900 |
Deferred income tax assets |  |  | 17,083 |  |  |  | 22,270 |
Other assets, net |  |  | 1,540 |  |  |  | 1,666 |
Total assets of discontinued operations |  | $ | 22,563 |  |  | $ | 29,110 |
Liabilities: |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |
Accounts payable |  | $ | 8 |  |  | $ | 49 |
Accrued expenses |  |  | 644 |  |  |  | 613 |
Deferred tuition revenue |  |  | — |  |  |  | 251 |
Remaining lease obligations |  |  | 9,174 |  |  |  | 7,981 |
Total current liabilities |  |  | 9,826 |  |  |  | 8,894 |
Non-current liabilities: |  |  |  |  |  |  |  |
Remaining lease obligations |  |  | 33,103 |  |  |  | 37,980 |
Total liabilities of discontinued operations |  | $ | 42,929 |  |  | $ | 46,874 |
Remaining Lease Obligations A number of the schools that ceased operations have remaining lease obligations that expire over time with the latest expiration in 2019. A liability is recorded representing the fair value of the remaining lease obligation at the time the space is no longer being utilized. Changes in our future remaining lease obligations, which are reflected within current and non-current liabilities of discontinued operations on our consolidated balance sheets, for our discontinued operations for the years ended December 31, 2012, 2011 and 2010, were as follows:
|  | Balance, Beginning of Period |  |  | Charges Incurred (1) |  |  | Net Cash Payments (2) |  |  | Other (3) |  |  | Balance, End of Period |
|  | (Dollars in thousands) |
For the twelve months ended December 31, 2012 |  | $ | 45,961 |  |  | $ | 7,371 |  |  | $ | (11,055 | ) |  | $ | — |  |  | $ | 42,277 |
For the twelve months ended December 31, 2011 |  | $ | 50,827 |  |  | $ | 7,636 |  |  | $ | (11,035 | ) |  | $ | (1,467 | ) |  | $ | 45,961 |
For the twelve months ended December 31, 2010 |  | $ | 71,714 |  |  | $ | 6,527 |  |  | $ | (27,952 | ) |  | $ | 538 |  |  | $ | 50,827 |
(1) | Includes charges for newly vacated spaces and subsequent adjustments for accretion, revised estimates, and variances between estimated and actual charges, net of any reversals for terminated lease obligations.
(2) | See Note 9 “Leases” of the notes to our consolidated financial statements for the future minimum lease payments under operating leases for discontinued operations as of December 31, 2012.
(3) | Includes existing prepaid rent and deferred rent liability balances for newly vacated spaces that are netted with the losses incurred in the period recorded.

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- Definition The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 144 -Paragraph 43-48 -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 FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759 + Details
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