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DISCONTINUED OPERATIONS
 3 Months Ended
Mar. 31, 2013
Discontinued Operations And Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS

5. DISCONTINUED OPERATIONS

As of March 31, 2013, the results of operations for campuses that have ceased operations or were sold, and are considered distinct operations as defined under FASB ASC Topic 205 – Presentation of Financial Statements, are presented within discontinued operations. During the first quarter of 2013 and the fourth quarter of 2012, our SBC Hazelwood and LCB Pittsburgh campuses, respectively, ceased operations. All current and prior period financial statements and the related notes herein, include the results of operations and financial position for these campuses as components of discontinued operations.

Results of Discontinued Operations

The summary of unaudited results of operations for our discontinued operations for the quarters ended March 31, 2013 and 2012 were as follows:

 

      For the Quarter Ended
March 31,		  
         2013                 2012        
   (Dollars in thousands)  

Revenue

    $ 27      $ 2,778   
  

 

 

    

 

 

  

Loss before income tax

    $ (1,126 )    $ (1,836 ) 

Income tax benefit (1)

      (414 )      (12,253 ) 
  

 

 

    

 

 

  

(Loss) income from discontinued operations, net of tax

    $ (712 )    $ 10,417   
  

 

 

    

 

 

  

 

(1) Amount represents the difference between total consolidated income tax (benefit) provision, calculated by applying the estimated full-year consolidated effective tax rate to (losses) earnings reported for the period, and the income tax (benefit) provision for continuing operations, calculated by applying the estimated full-year effective tax rate for continuing operations to pretax (loss) income from continuing operations for the period.

 

Assets and Liabilities of Discontinued Operations

Assets and liabilities of discontinued operations on our unaudited consolidated balance sheets as of March 31, 2013 and December 31, 2012 include the following:

 

      March 31,
2013		      December 31,
2012		  
   (Dollars in thousands)  

Assets:

      

Current assets:

      

Cash and cash equivalents

    $ 15       $ 63   

Receivables, net

      251         476   

Other current assets

      —           115   

Deferred income tax assets

      3,450         3,450   
  

 

 

     

 

 

  

Total current assets

      3,716         4,104   

Non-current assets:

      

Property and equipment, net

      1         162   

Deferred income tax assets

      17,253         17,253   

Other assets, net

      1,389         1,553   
  

 

 

     

 

 

  

Total assets of discontinued operations

    $ 22,359       $ 23,072   
  

 

 

     

 

 

  

Liabilities:

      

Current liabilities:

      

Accounts payable

    $ 17       $ 29   

Accrued expenses

      323         665   

Deferred tuition revenue

      —           20   

Remaining lease obligations

      11,966         9,174   
  

 

 

     

 

 

  

Total current liabilities

      12,306         9,888   

Non-current liabilities:

      

Remaining lease obligations

      27,982         33,103   

Other

      196         96   
  

 

 

     

 

 

  

Total liabilities of discontinued operations

    $ 40,484       $ 43,087   
  

 

 

     

 

 

  

Remaining Lease Obligations

A number of the campuses 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 unaudited consolidated balance sheets, for the quarters ended March 31, 2013 and 2012, were as follows:

 

     Balance,
Beginning
of Period		      Charges
Incurred  (1)		     Net Cash
Payments		     Other (2)     Balance,
End of
Period		  
   (Dollars in thousands)  

For the quarter ended March 31, 2013

    $ 42,277       $ (302 )    $ (2,016 )    $ (11 )    $ 39,948   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

For the quarter ended March 31, 2012

    $ 45,961       $ 295      $ (2,612 )    $ —        $ 43,644   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

 

(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) Includes existing prepaid rent and deferred rent liability balances for newly vacated spaces that are netted with the losses incurred in the period recorded.