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DISCONTINUED OPERATIONS | 9 Months Ended
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Sep. 30, 2013
Discontinued Operations And Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | 4. DISCONTINUED OPERATIONS As of September 30, 2013, the results of operations for campuses that are held for sale or 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. Assets Held for Sale During the third quarter of 2013, we made the decision to commit to a plan of sale of our International Schools. Accordingly, the assets and liabilities for these schools are included in the assets and liabilities of discontinued operations on our unaudited consolidated balance sheets and the results of operations are reported within discontinued operations. As we anticipate the sale of these assets to be completed within one year, we have recorded the assets and liabilities related to these schools within current assets and liabilities of discontinued operations as of September 30, 2013. Results of Discontinued Operations The summary of unaudited results of operations for our discontinued operations for the quarters and years to date ended September 30, 2013 and 2012 were as follows (dollars in thousands):
|  | For the Quarter Ended September 30, |  |  | For the Year to Date Ended September 30, |
|  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |
Revenue |  | $ | 20,086 |  |  | $ | 16,602 |  |  | $ | 95,899 |  |  | $ | 88,099 |
Pretax loss |  | $ | (7,936 | ) |  | $ | (10,541 | ) |  | $ | (2,875 | ) |  | $ | (5,467 | )
Income tax provision (benefit) (1) |  |  | 35,696 |  |  |  | (3,542 | ) |  |  | 34,658 |  |  |  | (3,611 | )
Loss from discontinued operations, net of tax |  | $ | (43,632 | ) |  | $ | (6,999 | ) |  | $ | (37,533 | ) |  | $ | (1,856 | )
(1) | During the third quarter of 2013, we made the decision to commit to a plan to sell our International Schools. Previously, we considered our investment in foreign subsidiaries to be permanent in duration. The decision to sell our foreign subsidiaries triggered the requirement under ASC 740 – Income Taxes to record the tax effect of the difference in basis for financial reporting purposes versus tax reporting. Accordingly, we recorded $39.9 million of income tax expense during the quarter ended September 30, 2013 on the excess basis. This expense was recorded within discontinued operations.
Assets and Liabilities of Discontinued Operations Assets and liabilities of discontinued operations on our unaudited consolidated balance sheets as of September 30, 2013 and December 31, 2012 include the following (dollars in thousands):
|  | September 30, 2013 |  |  | December 31, 2012 |
Assets: |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | — |  |  | $ | 63 |
Receivables, net |  |  | 232 |  |  |  | 571 |
Other current assets |  |  | 50 |  |  |  | 247 |
Deferred income tax assets, net |  |  | 3,447 |  |  |  | 3,447 |
Assets held for sale |  |  | 250,368 |  |  |  | 149,347 |
Total current assets |  |  | 254,097 |  |  |  | 153,675 |
Non-current assets: |  |  |  |  |  |  |  |
Property and equipment, net |  |  | 5 |  |  |  | 276 |
Deferred income tax assets |  |  | 17,446 |  |  |  | 17,446 |
Other assets, net |  |  | 1,263 |  |  |  | 1,604 |
Assets held for sale |  |  | — |  |  |  | 83,667 |
Total assets of discontinued operations |  | $ | 272,811 |  |  | $ | 256,668 |
Liabilities: |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |
Accounts payable |  | $ | 239 |  |  | $ | 32 |
Accrued expenses |  |  | 143 |  |  |  | 710 |
Deferred tuition revenue |  |  | — |  |  |  | 142 |
Remaining lease obligations |  |  | 12,575 |  |  |  | 9,174 |
Liabilities held for sale |  |  | 83,018 |  |  |  | 65,962 |
Total current liabilities |  |  | 95,975 |  |  |  | 76,020 |
Non-current liabilities: |  |  |  |  |  |  |  |
Remaining lease obligations |  |  | 22,354 |  |  |  | 33,103 |
Other |  |  | 201 |  |  |  | 223 |
Liabilities held for sale |  |  | — |  |  |  | 2,152 |
Total liabilities of discontinued operations |  | $ | 118,530 |  |  | $ | 111,498 |
The major components of assets and liabilities held for sale presented above were (dollars in thousands):
|  | September 30, 2013 |  |  | December 31, 2012 |
Assets: |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 131,817 |  |  | $ | 127,679 |
Receivables, net |  |  | 24,768 |  |  |  | 15,604 |
Property and equipment, net (1) |  |  | 32,599 |  |  |  | 29,326 |
Goodwill (1) |  |  | 46,817 |  |  |  | 45,669 |
Other intangible assets (1) |  |  | 5,693 |  |  |  | 5,664 |
Other assets, net (1) |  |  | 8,674 |  |  |  | 9,072 |
Total assets held for sale |  | $ | 250,368 |  |  | $ | 233,014 |
Liabilities: |  |  |  |  |  |  |  |
Capital lease obligations |  | $ | — |  |  | $ | 211 |
Accounts payable and accrued expenses |  |  | 23,395 |  |  |  | 23,661 |
Deferred revenue |  |  | 57,453 |  |  |  | 42,090 |
Other liabilities (2) |  |  | 2,170 |  |  |  | 2,152 |
Total liabilities held for sale |  | $ | 83,018 |  |  | $ | 68,114 |
(1) | Property and equipment, net, goodwill, other intangible assets and a portion of other assets, net are classified within non-current assets held for sale as of December 31, 2012.
(2) | Other liabilities are classified within non-current liabilities held for sale as of December 31, 2012.
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 and years to date ended September 30, 2013 and 2012, were as follows (dollars in thousands):
|  | Balance, Beginning of Period |  |  | Charges Incurred (1) |  |  | Net Cash Payments |  |  | Other (2) |  |  | Balance, End of Period |
For the quarter ended September 30, 2013 |  | $ | 37,660 |  |  | $ | 214 |  |  | $ | (2,945 | ) |  | $ | — |  |  | $ | 34,929 |
For the quarter ended September 30, 2012 |  | $ | 41,212 |  |  | $ | 2,531 |  |  | $ | (2,511 | ) |  | $ | — |  |  | $ | 41,232 |
For the year to date ended September 30, 2013 |  | $ | 42,277 |  |  | $ | 1,060 |  |  | $ | (8,357 | ) |  | $ | (51 | ) |  | $ | 34,929 |
For the year to date ended September 30, 2012 |  | $ | 45,961 |  |  | $ | 3,270 |  |  | $ | (7,999 | ) |  | $ | — |  |  | $ | 41,232 |
(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.

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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 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230 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 Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759 Reference 4: 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 5: 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 6: 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 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 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760 Reference 9: 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 + Details
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