11. RESTRUCTURING CHARGES

During 2013 and 2012, we have carried out reductions in force related to the continued reorganization of our corporate and campus functions to better align with current total enrollments and made decisions to teach out a number of campuses, meaning gradually close the campuses through an orderly process. Most notably, we have recorded charges within our Career Schools segments and our corporate functions as we continue to align our overall management structure. We anticipate that a majority of the campus closures will be completed by the third quarter of 2014. See Item 1, “Business,” for a listing of schools that comprise our Transitional Schools segment.

The following table details the changes in our accrual for severance and related costs associated with all of these restructuring events for our continuing operations during the years ended December 31, 2013 and 2012 (dollars in thousands):


	Balance, Beginning of Period		Severance and related charges		Payments⁽¹⁾			Non-cash adjustments⁽²⁾			Balance, End of Period
For the year ended December 31, 2013	$	9,860	$	6,218	$	(9,120	)	$	(1,233	)	$	5,725

For the year ended December 31, 2012	$	253	$	13,996	$	(2,299	)	$	(2,090	)	$	9,860

(1)	Includes payments related to COBRA and outplacement services which are assumed to be completed by the third month following an employee’s departure.

(2)	Includes cancellations due to employee departures prior to agreed upon end dates, employee transfers to open positions within the organization and subsequent adjustments to severance and related costs.

Severance and related expenses for the years ended December 31, 2013 and 2012 by reporting segment is as follows (dollars in thousands):


	For the Year Ended December 31,
	2013		2012
CTU	$	19	$	261
AIU		213		1,834

Total University Schools		232		2,095

Health Education		790		1,576
Culinary Arts		472		598
Design & Technology		579		1,376

Total Career Schools		1,841		3,550

Corporate and Other		2,087		1,620
Transitional Schools		2,058		6,731

Total	$	6,218	$	13,996

The current portion of the accrual for severance and related charges was $4.0 million and $7.2 million as of December 31, 2013 and 2012, respectively, which is recorded within current accrued expenses — payroll and related benefits; the long-term portion of $1.7 million and $2.7 million is recorded within other non-current liabilities on our consolidated balance sheets as of December 31, 2013 and 2012, respectively.

In addition, as of December 31, 2013, we have an accrual of approximately $2.2 million related to retention bonuses that have been offered to certain employees. These amounts are recorded ratably over the period the employees are retained; $2.3 million was recorded during the year ended December 31, 2013.

In addition to the charges detailed above, a number of these campuses will have remaining lease obligations following the eventual campus closure, with the longest lease term being through 2021. The total estimated charge related to the remaining lease obligation for these leases, once the campus completes the close process, and adjusted for possible lease buyouts and sublease assumptions is approximately $30.0 to $35.0 million. The amount related to each campus will be recorded at each campus closure date based on current estimates and assumptions related to the amount and timing of sublease income. See Note 9 “Leases” for details regarding our gross remaining lease obligations for our Transitional Schools.