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Discontinued Operations | 9 Months Ended
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Sep. 30, 2015
Discontinued Operations And Disposal Groups [Abstract] |
Discontinued Operations | 5. DISCONTINUED OPERATIONS As of September 30, 2015, the results of operations for campuses that have ceased operations prior to 2015 and all our Le Cordon Bleu (“LCB”) campuses that are held for sale are presented within discontinued operations. Prior to January 1, 2015, our Transitional Group campuses met the criteria for discontinued operations upon completion of their teach-out. Commencing January 1, 2015, in accordance with new guidance under ASC Topic 360, only campuses that meet the criteria of a strategic shift upon disposal will be classified within discontinued operations, among other criteria. During the third quarter of 2015, we did not have any campuses that met the criteria to be considered as a discontinued operation under the new guidance. 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, 2015 and 2014 were as follows (dollars in thousands):
|  | For the Quarter Ended September 30, (1) |  |  | For the Year to Date Ended September 30, (1) |
|  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Revenue |  | $ | 41,413 |  |  | $ | 44,656 |  |  | $ | 128,176 |  |  | $ | 134,076 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Educational services and facilities |  |  | 21,124 |  |  |  | 23,197 |  |  |  | 60,528 |  |  |  | 85,363 |
General and administrative |  |  | 20,583 |  |  |  | 30,771 |  |  |  | 69,657 |  |  |  | 109,762 |
Depreciation and amortization |  |  | — |  |  |  | 4,403 |  |  |  | 1 |  |  |  | 14,914 |
Asset impairment (2) |  |  | 33,446 |  |  |  | 1,547 |  |  |  | 43,133 |  |  |  | 8,991 |
Total operating expenses |  |  | 75,153 |  |  |  | 59,918 |  |  |  | 173,319 |  |  |  | 219,030 |
Loss before income tax |  | $ | (33,715 | ) |  | $ | (15,201 | ) |  | $ | (45,069 | ) |  | $ | (84,728 | )
Income tax expense (3) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Loss from discontinued operations, net of tax |  | $ | (33,715 | ) |  | $ | (15,201 | ) |  | $ | (45,069 | ) |  | $ | (84,728 | )
Net loss per diluted share |  | $ | (0.50 | ) |  | $ | (0.22 | ) |  | $ | (0.66 | ) |  | $ | (1.26 | )
Capital expenditures |  | $ | 138 |  |  | $ | 1,110 |  |  | $ | 457 |  |  | $ | 1,714 |
(1) | Includes the results of operations for our LCB campuses that are held for sale, which met the criteria to be considered discontinued operations under ASC Topic 360, in addition to our Transitional Group campuses that completed their teach-out prior to 2015.
(2) | Asset impairment charges for the current year quarter and year to date relate to impairment recorded for our LCB campuses which are held for sale as a result of our fair value analysis.
(3) | Due to the valuation allowance against our net deferred taxes, there is no income tax benefit reported for the quarters and years to date ended September 30, 2015 and 2014.
Assets and Liabilities of Discontinued Operations Assets and liabilities of discontinued operations on our condensed consolidated balance sheets for campuses that have ceased operations or were sold as of September 30, 2015 and December 31, 2014 include the following (dollars in thousands):
|  | September 30, |  |  | December 31, |
|  | 2015 |  |  | 2014 |
Assets: |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |
Receivables, net |  | $ | 334 |  |  | $ | 473 |
Other current assets |  |  | 13 |  |  |  | — |
Total current assets |  |  | 347 |  |  |  | 473 |
Non-current assets: |  |  |  |  |  |  |  |
Other assets, net |  |  | 780 |  |  |  | 975 |
Total assets of discontinued operations (1) |  | $ | 1,127 |  |  | $ | 1,448 |
Liabilities: |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |
Accounts payable and accrued expenses |  | $ | 172 |  |  | $ | 579 |
Remaining lease obligations |  |  | 12,183 |  |  |  | 14,927 |
Total current liabilities |  |  | 12,355 |  |  |  | 15,506 |
Non-current liabilities: |  |  |  |  |  |  |  |
Remaining lease obligations |  |  | 12,434 |  |  |  | 22,689 |
Other |  |  | 163 |  |  |  | 170 |
Total liabilities of discontinued operations (1) |  | $ | 24,952 |  |  | $ | 38,365 |
(1) | Excludes assets and liabilities for our LCB campuses which are presented within assets and liabilities held for sale on our condensed consolidated balance sheets as of September 30, 2015 and December 31, 2014. See Note 6 “Assets Held for Sale” for further details.
Remaining Lease Obligations A number of the campuses that ceased operations prior to January 1, 2015 or vacated real estate properties for our LCB campuses held for sale, have remaining lease obligations that expire over time with the latest expiration in 2021. 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 and within liabilities held for sale on our unaudited condensed consolidated balance sheets, for the quarters and years to date ended September 30, 2015 and 2014 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, 2015 |  | $ | 29,588 |  |  | $ | 60 |  |  | $ | (3,456 | ) |  | $ | 50 |  |  | $ | 26,242 |
For the quarter ended September 30, 2014 |  | $ | 52,597 |  |  | $ | 121 |  |  | $ | (7,091 | ) |  | $ | 336 |  |  | $ | 45,963 |
For the year to date ended September 30, 2015 |  | $ | 39,869 |  |  | $ | (641 | ) |  | $ | (13,612 | ) |  | $ | 626 |  |  | $ | 26,242 |
For the year to date ended September 30, 2014 |  | $ | 46,755 |  |  | $ | 13,540 |  |  | $ | (19,881 | ) |  | $ | 5,549 |  |  | $ | 45,963 |
(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 related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=51716988&loc=SL51721533-107759 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721665-107760 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5C -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721675-107760 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3A -URI http://asc.fasb.org/extlink&oid=51719941&loc=SL51724579-110230 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721663-107760 Reference 6: 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=51719941&loc=d3e2941-110230 Reference 7: 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=51717284&loc=d3e1361-107760 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5B -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721673-107760 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3A -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721659-107760 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5A -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721671-107760 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5D -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721677-107760 Reference 12: 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=51717284&loc=d3e1474-107760 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721683-107760 + Details
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