Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2015

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, 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 on Consolidated Balance Sheets

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.

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 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.