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Restructuring and Related Charges | 3 Months Ended
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Mar. 31, 2014
Restructuring and Related Charges [Abstract] |
Restructuring and Related Charges |
3. | Restructuring and Related Charges
In October 2013, the Company implemented a restructuring to better align the Company’s resources with its current student enrollments. This restructuring, which occurred primarily in the fourth quarter of 2013, included the closing of approximately 20 physical locations and reductions in the number of campus-based and corporate employees. The following details the changes in the Company’s restructuring liability by type of cost during the three months ended March 31, 2014:
($ in thousands) |  | Lease and Related Costs, Net |  |  | Severance and Other Employee Separation Costs |  |  | Total |
Balance at December 31, 2013 (1) |  | $ | 42,550 |  |  | $ | 2,216 |  |  | $ | 44,766 |
Non-cash adjustments (2) |  |  | (548 | ) |  |  | (24 | ) |  |  | (572 | )
Payments |  |  | (2,939 | ) |  |  | (2,129 | ) |  |  | (5,068 | )
Balance at March 31, 2014 (1) |  | $ | 39,063 |  |  | $ | 63 |  |  | $ | 39,126 |
(1) | The current portion of restructuring liabilities was $10.4 million and $8.4 million as of December 31, 2013 and March 31, 2014, respectively, which are included in Accounts payable and accrued expenses, and the long-term portion is included in Other long-term liabilities in the unaudited condensed consolidated balance sheets.
(2) | Non-cash adjustments for lease and related costs result from changes in the timing and expected income from sublease agreements signed during the quarter. Non-cash adjustments for severance and other employee separation costs related to employees who were re-hired to other roles within the Company and were not paid severance.
Lease and Related Costs, Net – During the fourth quarter of 2013, the University implemented a plan to close approximately 20 of its campus locations. The Company recorded approximately $36.0 million of aggregate charges representing the estimated fair value of future contractual operating lease obligations, which were recorded in the periods the Company ceased using the respective facilities. Lease obligations, some of which continue through 2022, are measured at fair value using a discounted cash flow approach encompassing significant unobservable inputs (Level 3). The estimation of future cash flows includes non-cancelable contractual lease costs over the remaining terms of the leases, partially offset by estimated future sublease rental income, which involves significant judgment. The Company’s estimate of the amount and timing of sublease rental income considers subleases that have been executed and subleases expect to be executed, based on current commercial real estate market data and conditions, and other qualitative factors specific to the facilities. The estimates will be subject to adjustment as market conditions change or as new information becomes available, including the execution of additional sublease agreements. Lease and related costs, net also included $10.9 million of accelerated depreciation recorded during the year ended December 31, 2013. This depreciation resulted from revising the useful lives of the fixed assets at the facilities discussed above through their closure dates. Prior to revising the estimated useful lives, a recoverability analysis was performed for the facilities’ fixed assets and no material impairment charges were recorded. Severance and Other Employee Separation Costs – The Company implemented workforce reductions in order to better align its human capital resources with the evolving needs of students. A total of $6.9 million in severance and other employee separation costs, net of $1.4 million of non-cash adjustments of share-based compensation, were recorded in the year ended December 31, 2013, of which approximately $6.1 million was paid in 2013.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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