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Leases | 12 Months Ended
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Dec. 31, 2017
Leases [Abstract] |
Leases | 7. LEASES We lease most of our administrative and educational facilities and certain equipment under non-cancelable operating leases expiring at various dates through 2028. Lease terms generally range from one to ten years with one to two renewal options for extended terms. In most cases, we are required to make additional payments under facility operating leases for taxes, insurance and other operating expenses incurred during the operating lease period. Certain of our leases contain rent escalation clauses or lease incentives, including rent abatements and tenant improvement allowances. Rent escalation clauses and lease incentives are taken into account in determining total rent expense to be recognized during the term of the lease, which begins on the date we take control of the leased space. Renewal options are considered when determining the overall lease term. In accordance with FASB ASC Topic 840—Leases, differences between periodic rent expense and periodic cash rental payments, caused primarily by the recognition of rent expense on a straight-line basis and tenant improvement allowances due or received from lessors, are recorded as deferred rent obligations on our consolidated balance sheet. Rent expense, including charges recorded for vacated space, exclusive of related taxes, insurance, and maintenance costs, for continuing operations totaled approximately $28.1 million, $70.4 million and $64.3 million for the years ended December 31, 2017, 2016 and 2015, respectively, and is reflected in educational services and facilities expense for our institutions and within general and administrative expense for our corporate offices in our consolidated statements of (loss) income and comprehensive (loss) income. Remaining Lease Obligations of Continuing Operations We have recorded lease exit costs associated with the exit of real estate space for certain campuses related to our continuing operations, primarily associated with our teach-out campuses. These costs are recorded within educational services and facilities expense on our consolidated statements of (loss) income and comprehensive (loss) income. The current portion of the liability for these charges is reflected within other accrued expenses under current liabilities and the long-term portion of these charges are included in other liabilities under the non-current liabilities section of our consolidated balance sheets. Changes in our future minimum lease obligations for vacated space related to our continuing operations for the years ended December 31, 2017, 2016 and 2015 were as follows (dollars in thousands):
|  | Balance, Beginning of Period |  |  | Charges Incurred (1) |  |  | Net Cash Payments |  |  | Other (2) |  |  | Balance, End of Period |
For the year ended December 31, 2017 |  | $ | 36,814 |  |  | $ | 14,838 |  |  | $ | (33,313 | ) |  | $ | 2,424 |  |  | $ | 20,763 |
For the year ended December 31, 2016 |  | $ | 12,892 |  |  | $ | 32,351 |  |  | $ | (16,413 | ) |  | $ | 7,984 |  |  | $ | 36,814 |
For the year ended December 31, 2015 |  | $ | 7,094 |  |  | $ | 20,552 |  |  | $ | (18,817 | ) |  | $ | 4,063 |  |  | $ | 12,892 |
(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 offset the losses incurred in the period recorded.
As of December 31, 2017, future minimum lease payments under operating leases for continuing and discontinued operations are as follows (dollars in thousands):
|  | Operating Leases |  |  |  |  |
|  | Continuing |  |  | Discontinued |  |  |  |  |
|  | Operations |  |  | Operations |  |  | Total |
2018 (1) |  | $ | 33,406 |  |  | $ | 5,837 |  |  | $ | 39,243 |
2019 |  |  | 24,375 |  |  |  | 787 |  |  |  | 25,162 |
2020 |  |  | 17,686 |  |  |  | - |  |  |  | 17,686 |
2021 |  |  | 10,746 |  |  |  | - |  |  |  | 10,746 |
2022 and thereafter |  |  | 13,642 |  |  |  | - |  |  |  | 13,642 |
Total |  | $ | 99,855 |  |  | $ | 6,624 |  |  | $ | 106,479 |
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| (1) | Amounts include payments due associated with executed early terminations of real estate leases.
Of the remaining $99.9 million of lease payments for continuing operations, $40.3 million relates to our All Other Campuses leases. See Note 17 “Discontinued Operations” and Note 9 “Restructuring Charges” for further discussion. As of December 31, 2017, future minimum sublease rental income under operating leases, which will decrease our future minimum lease payments presented above, for continuing and discontinued operations is as follows (dollars in thousands):
|  | Operating Subleases |  |  |  |  |
|  | Continuing |  |  | Discontinued |  |  |  |  |
|  | Operations |  |  | Operations |  |  | Total |
2018 |  | $ | 4,344 |  |  | $ | 1,584 |  |  | $ | 5,928 |
2019 |  |  | 3,797 |  |  |  | 343 |  |  |  | 4,140 |
2020 |  |  | 2,637 |  |  |  | - |  |  |  | 2,637 |
2021 |  |  | 784 |  |  |  | - |  |  |  | 784 |
2022 and thereafter |  |  | - |  |  |  | - |  |  |  | - |
Total |  | $ | 11,562 |  |  | $ | 1,927 |  |  | $ | 13,489 |

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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