17. DISCONTINUED OPERATIONS

As of December 31, 2017, the results of operations for campuses that have ceased operations prior to 2015 are presented within discontinued operations. Prior to January 1, 2015, our teach-out campuses met the criteria for discontinued operations upon completion of their teach-out as defined under FASB ASC Topic 205 – Presentation of Financial Statements. Commencing January 1, 2015, in accordance with the 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. Since the January 2015 effective date of the updated guidance within ASC Topic 360, we did not have any campuses that met the criteria to be considered a discontinued operation.

Results of Discontinued Operations

Combined summary results of operations for our discontinued operations for the years ended December 31, 2017, 2016, and 2015 were as follows (dollars in thousands):

	For the Year Ended December 31,
	2017			2016			2015
Total operating expenses	$	2,310		$	(6,586	)	$	2,121
Loss before income tax	$	(2,268	)	$	(6,586	)	$	(2,128	)
Benefit from income tax		(1,246	)		(2,690	)		(997	)
Loss from discontinued operations, net of tax	$	(1,022	)	$	(3,896	)	$	(1,131	)

Assets and Liabilities of Discontinued Operations

Assets and liabilities of discontinued operations on our consolidated balance sheets as of December 31, 2017 and 2016 include the following (dollars in thousands):

	As of December 31,
	2017		2016
Assets:
Current assets:
Receivables, net	$	382	$	148
Total current assets		382		148
Non-current assets:
Other assets, net		-		483
Deferred income tax assets, net		1,585		5,622
Total assets of discontinued operations	$	1,967	$	6,253
Liabilities:
Current liabilities:
Accounts payable and accrued expenses	$	185	$	76
Remaining lease obligations		5,516		8,143
Total current liabilities		5,701		8,219
Non-current liabilities:
Remaining lease obligations		785		6,331
Other		-		91
Total liabilities of discontinued operations	$	6,486	$	14,641

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 2019. 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 consolidated balance sheets, 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 ⁽²⁾			Balance, End of Period
For the year ended December 31, 2017	$	14,474	$	818		$	(8,991	)	$	6,301
For the year ended December 31, 2016	$	21,751	$	4,090		$	(11,367	)	$	14,474
For the year ended December 31, 2015	$	37,616	$	(342	)	$	(15,523	)	$	21,751

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(1) Includes subsequent adjustments for accretion, revised estimates, and variances between estimated and actual charges, net of any reversals for terminated lease obligations.

(2)	See Note 7 “Leases” for the future minimum lease payments under operating leases for discontinued operations as of December 31, 2017.