DISCONTINUED OPERATIONS (Tables)

12 Months Ended

Dec. 31, 2013

Discontinued Operations And Disposal Groups [Abstract]

Summary Results of Operations for Discontinued Operations

Combined summary results of operations for our discontinued operations for the years ended December 31, 2013, 2012 and 2011, were as follows (dollars in thousands):


	For the Year Ended December 31,
	2013 ⁽¹⁾		2012 ⁽²⁾			2011 ⁽³⁾
Revenue	$	137,661	$	145,684		$	210,656

Pretax income	$	126,010	$	2,193		$	48,895
Income tax provision (benefit)		88,605		(3,966	)		1,611

Income from discontinued operations, net of tax	$	37,405	$	6,159		$	47,284

(1)

The income tax expense associated with the gain on sale of our International Segment approximates $87.9 million, of which $39.9 million was recorded during the third quarter of 2013 once we determined that our investment in foreign subsidiaries was no longer permanent in duration. The $39.9 million represented the tax effect of the difference in basis for financial reporting versus tax reporting.

(2)	2012 pretax income includes income for non-profit entities within our International Schools, which are not subject to income tax. This income is partially offset with losses from our domestic schools, which are subject to income tax. As a result, a net tax benefit is reported for 2012.

(3)

During the year ended December 31, 2011, we completed the sale of our Istituto Marangoni schools in Milan, Paris and London resulting in a pretax gain of approximately $27.1 million. The income tax provision 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, 2013 and 2012 include the following (dollars in thousands):


	As of December 31,
	2013		2012
Assets:
Current assets:
Cash and cash equivalents	$	—	$	127,738
Receivables, net		213		16,928
Other current assets		50		6,458
Deferred income tax assets, net		—		3,454

Total current assets		263		154,578

Non-current assets:
Property and equipment, net		—		29,790
Goodwill		—		45,669
Intangible assets, net		—		5,675
Deferred income tax assets		—		17,804
Other assets, net		1,200		4,606

Total assets of discontinued operations	$	1,463	$	258,122

Liabilities:
Current liabilities:
Current maturities of capital lease obligations	$	—	$	211
Accounts payable		10		6,378
Accrued expenses		325		18,110
Deferred tuition revenue		—		42,363
Remaining lease obligations		11,275		9,174

Total current liabilities		11,610		76,236

Non-current liabilities:
Remaining lease obligations		27,507		33,103
Other		75		2,836

Total liabilities of discontinued operations	$	39,192	$	112,175

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 the years ended December 31, 2013, 2012 and 2011, were as follows (dollars in thousands):


	Balance, Beginning of Period		Charges Incurred⁽¹⁾		Net Cash Payments⁽²⁾			Other⁽³⁾			Balance, End of Period
For the twelve months ended December 31, 2013	$	42,277	$	8,551	$	(12,323	)	$	277		$	38,782

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

(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, 2013.

(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.