Discontinued Operations

9 Months Ended

Sep. 30, 2011

Discontinued Operations [Abstract]

Discontinued Operations

4. DISCONTINUED OPERATIONS

As of September 30, 2011, the results of operations for schools that have ceased operations or were sold are presented within discontinued operations.

Results of Discontinued Operations

Combined summary of unaudited results of operations for our discontinued operations for the quarters and years to date ended September 30, 2011 and 2010 were as follows

	For the Quarters Ended September 30,						For the Years to Date Ended September 30,
	2011			2010			2011			2010
	(Dollars in thousands)
Revenue	$	—		$	51		$	—		$	425
Loss before income tax	$	(975	)	$	(2,345	)	$	(2,463	)	$	(7,540	)
Income tax benefit		(334	)		(612	)		(865	)		(1,931	)
Loss from discontinued operations, net of tax	$	(641	)	$	(1,733	)	$	(1,598	)	$	(5,609	)

Assets and Liabilities of Discontinued Operations

Assets and liabilities of discontinued operations on our unaudited consolidated balance sheets as of September 30, 2011 and December 31, 2010 include the following:

	September 30, 2011		December 31, 2010
	(Dollars in thousands)
Assets:
Current assets:
Receivables, net	$	142	$	89
Prepaid expenses		—		1,294
Deferred income tax assets		4,786		4,786
Other current assets		1		573
Total current assets		4,929		6,742
Non-current assets:
Deferred income tax assets		16,971		17,043
Other assets, net		1,812		2,012
Total assets of discontinued operations	$	23,712	$	25,797
Liabilities:
Current Liabilities:
Accounts payable	$	22	$	329
Accrued payroll and related benefits		—		216
Accrued expenses		428		1,753
Remaining lease obligations		12,984		12,802
Total current liabilities		13,434		15,100
Non-current liabilities:
Remaining lease obligations		28,952		37,576
Total liabilities of discontinued operations	$	42,386	$	52,676

Remaining Lease Obligations

A number of the campuses that ceased operations have remaining lease obligations that expire through 2019. A liability is recorded representing the fair value of the remaining lease obligation at the time in which 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 unaudited consolidated balance sheets, were as follows:

	Balance, Beginning of Period		Charges Incurred  (1)		Net Cash Payments			Other (2)			Balance, End of Period
	(Dollars in thousands)
For the quarter ended September 30, 2011	$	43,895	$	491	$	(2,450	)	$	—		$	41,936
For the quarter ended September 30, 2010	$	63,273	$	1,069	$	(3,519	)	$	—		$	60,823
For the year to date ended September 30, 2011	$	50,378	$	1,310	$	(8,284	)	$	(1,468	)	$	41,936
For the year to date ended September 30, 2010	$	71,163	$	2,069	$	(12,409	)	$	—		$	60,823

(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 balances for vacated spaces reclassified from current assets to offset the current remaining lease obligation liability.