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Discontinued Operations
 3 Months Ended
Mar. 31, 2016
Discontinued Operations And Disposal Groups [Abstract]  
Discontinued Operations

4. DISCONTINUED OPERATIONS

As of March 31, 2016, the results of operations for campuses that have ceased operations prior to 2015 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 first quarter of 2016, 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 ended March 31, 2016 and 2015 were as follows (dollars in thousands):

 

 

 

For the Quarter Ended March 31,

 

 

 

2016

 

 

2015

 

Revenue

 

$

-

 

 

$

32

 

Total expenses

 

$

126

 

 

$

384

 

Loss before income tax

 

$

(126

)

 

$

(352

)

Benefit from income tax

 

 

(47

)

 

 

-

 

Loss from discontinued operations, net of tax

 

$

(79

)

 

$

(352

)

Net loss per share - Basic

 

$

-

 

 

$

(0.01

)

Net loss per share - Diluted

 

$

-

 

 

$

(0.01

)

 

 

Assets and Liabilities of Discontinued Operations

Assets and liabilities of discontinued operations on our condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 include the following (dollars in thousands):

 

 

 

March 31,

 

 

December 31,

 

 

 

2016

 

 

2015

 

Assets:

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Receivables, net

 

$

225

 

 

$

254

 

Total current assets

 

 

225

 

 

 

254

 

Non-current assets:

 

 

 

 

 

 

 

 

Other assets, net

 

 

660

 

 

 

720

 

Deferred income tax assets, net

 

 

8,091

 

 

 

8,091

 

Total assets of discontinued operations

 

$

8,976

 

 

$

9,065

 

Liabilities:

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

26

 

 

$

528

 

Remaining lease obligations

 

 

9,758

 

 

 

12,539

 

Total current liabilities

 

 

9,784

 

 

 

13,067

 

Non-current liabilities:

 

 

 

 

 

 

 

 

Remaining lease obligations

 

 

7,911

 

 

 

9,212

 

Other

 

 

164

 

 

 

164

 

Total liabilities of discontinued operations

 

$

17,859

 

 

$

22,443

 

 

Remaining Lease Obligations of Discontinued Operations

A number of the campuses that ceased operations prior to January 1, 2015 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 condensed consolidated balance sheets, for the quarters ended March 31, 2016 and 2015 were as follows (dollars in thousands):

 

 

 

Balance,

Beginning

of Period

 

 

Charges

Incurred (1)

 

 

Net Cash

Payments

 

 

Other

 

 

Balance,

End of

Period

 

For the quarter ended March 31, 2016

 

$

21,751

 

 

$

(342

)

 

$

(3,740

)

 

$

-

 

 

$

17,669

 

For the quarter ended March 31, 2015

 

$

37,616

 

 

$

(570

)

 

$

(5,441

)

 

$

-

 

 

$

31,605

 

 

 

(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.