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Other Long-Term Liabilities
9 Months Ended
Sep. 30, 2011
Other Long-Term Liabilities [Abstract] 
Other Long-Term Liabilities

7. Other Long-Term Liabilities

Lease Incentives

In conjunction with the opening of new campuses and renovating existing ones, the Company may be reimbursed by lessors for improvements made to the leased properties. In accordance with the Operating Leases Subtopic, ASC 840-20, these improvements were capitalized as leasehold improvements and a long-term liability was established for the reimbursements. The leasehold improvements and the long-term liability are amortized on a straight-line basis over the corresponding lease terms, which range from five to ten years. As of December 31, 2010 and September 30, 2011, the Company had deferred lease incentives of $3.2 million and $2.7 million, respectively.

Deferred Rent

In accordance with ASC 840-20, the Company records rent expense on a straight-line basis over the initial term of a lease. The difference between the rent payment and the straight-line rent expense is recorded as a long-term liability. As of December 31, 2010 and September 30, 2011, the Company had deferred rent associated with its lease obligations of $7.9 million and $9.6 million, respectively.

Sale of Campus Building and Deferred Gain

In conjunction with the sale and lease back of its Loudoun, Virginia campus building in June 2007, the Company realized a gain of $2.8 million before tax, which is deferred and recognized over the 10-year lease term. The non-current portion of this gain, which was $1.5 million and $1.3 million at December 31, 2010 and September 30, 2011, respectively, is recorded as a long-term liability.