DISCONTINUED OPERATIONS (Tables)

12 Months Ended

Dec. 31, 2012

Combine Summary Results of Operations for 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 on Consolidated Balance Sheets

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

Changes in Future Remaining Lease Obligations Discontinued Operations

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.