XML 29 R9.htm IDEA: XBRL DOCUMENT
v2.4.0.8

DISCONTINUED OPERATIONS | 6 Months Ended
--- | ---
Jun. 30, 2014
Discontinued Operations And Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | 4. DISCONTINUED OPERATIONS As of June 30, 2014, the results of operations for campuses that have ceased operations or schools that 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 second quarter of 2014, we completed the teach-out of eight campuses and the sale of two campuses (see Note 2, “Basis of Presentation” of the notes to our unaudited consolidated financial statements). All current and prior period financial statements include the results of operations and financial position for these campuses as components of discontinued operations. During the second quarter of 2014, we completed the sales of both Everblue Training Institute and SBI Pittsburgh for immaterial amounts. The sales of these campuses were a result of two separate offers to continue the operations of each campus. We recorded a combined net loss on sale of these campuses of $0.3 million. Each of the buyers for these campuses assumed the remaining lease obligations for the facilities which approximated $3.7 million as of June 30, 2014. Results of Discontinued Operations The summary of unaudited results of operations for our discontinued operations for the quarters and years to date ended June 30, 2014 and 2013 were as follows (dollars in thousands):
|  | For the Quarter Ended June 30, |  |  | For the Year to Date Ended June 30, |
|  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
Revenue |  | $ | 1,075 |  |  | $ | 35,397 |  |  | $ | 3,087 |  |  | $ | 98,596 |
Loss before income tax |  | $ | (10,964 | ) |  | $ | (16,287 | ) |  | $ | (27,537 | ) |  | $ | (16,253 | )
Income tax benefit (1) |  |  | — |  |  |  | (7,669 | ) |  |  | — |  |  |  | (9,494 | )
Loss from discontinued operations, net of tax |  | $ | (10,964 | ) |  | $ | (8,618 | ) |  | $ | (27,537 | ) |  | $ | (6,759 | )
(1) | Due to the valuation allowance against our net deferred taxes, there is no income tax benefit reported for the quarter and year to date ended June 30, 2014.
Assets and Liabilities of Discontinued Operations Assets and liabilities of discontinued operations on our unaudited consolidated balance sheets as of June 30, 2014 and December 31, 2013 include the following (dollars in thousands):
|  | June 30, 2014 |  |  | December 31, 2013 |
Assets: |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | — |  |  | $ | 472 |
Receivables, net |  |  | 385 |  |  |  | 1,320 |
Other current assets |  |  | 188 |  |  |  | 1,178 |
Total current assets |  |  | 573 |  |  |  | 2,970 |
Non-current assets: |  |  |  |  |  |  |  |
Property and equipment, net |  |  | 5 |  |  |  | 2,011 |
Other assets, net |  |  | 1,174 |  |  |  | 1,500 |
Total assets of discontinued operations |  | $ | 1,752 |  |  | $ | 6,481 |
Liabilities: |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |
Accounts payable and accrued expenses |  | $ | 241 |  |  | $ | 1,267 |
Deferred tuition revenue |  |  | — |  |  |  | 1,061 |
Remaining lease obligations |  |  | 16,754 |  |  |  | 13,048 |
Total current liabilities |  |  | 16,995 |  |  |  | 15,376 |
Non-current liabilities: |  |  |  |  |  |  |  |
Remaining lease obligations |  |  | 32,912 |  |  |  | 30,852 |
Other |  |  | 165 |  |  |  | 6,159 |
Total liabilities of discontinued operations |  | $ | 50,072 |  |  | $ | 52,387 |
Remaining Lease Obligations A number of the campuses that ceased operations have remaining lease obligations that expire over time with the latest expiration in 2020. 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 June 30, 2014 and 2013, 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 June 30, 2014 |  | $ | 48,091 |  |  | $ | 5,893 |  |  | $ | (5,469 | ) |  | $ | 1,151 |  |  | $ | 49,666 |
For the quarter ended June 30, 2013 |  | $ | 43,739 |  |  | $ | 1,181 |  |  | $ | (3,674 | ) |  | $ | (27 | ) |  | $ | 41,219 |
For the year to date ended June 30, 2014 |  | $ | 43,900 |  |  | $ | 13,196 |  |  | $ | (12,017 | ) |  | $ | 4,587 |  |  | $ | 49,666 |
For the year to date ended June 30, 2013 |  | $ | 46,298 |  |  | $ | 954 |  |  | $ | (5,968 | ) |  | $ | (65 | ) |  | $ | 41,219 |
(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.

X
- Details
Name: | us-gaap_DiscontinuedOperationsAndDisposalGroupsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 205 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760 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 360 -SubTopic 10 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228 + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration