DISCONTINUED OPERATIONS (Tables)

9 Months Ended

Sep. 30, 2013

Discontinued Operations And Disposal Groups [Abstract]

Summary Results of Operations for 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 on Consolidated Balance Sheets

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

Components of Assets and Liabilities Held for Sale

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.

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 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.