Discontinued Operations

3 Months Ended

Mar. 31, 2017

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

12. DISCONTINUED OPERATIONS

As of March 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 Transitional Group campuses met the criteria for discontinued operations upon completion of their teach-out. Commencing January 1, 2015, in accordance with 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 have not had any campuses that met the criteria to be considered a discontinued operation.  

Results of Discontinued Operations

The summary of unaudited results of operations for our discontinued operations for the quarters ended March 31, 2017 and 2016 were as follows (dollars in thousands):

	For the Quarter Ended March 31,
	2017			2016
Total operating expenses	$	663		$	126
Loss before income tax	$	(663	)	$	(126	)
Benefit from income tax		(243	)		(47	)
Loss from discontinued operations, net of tax	$	(420	)	$	(79	)

Assets and Liabilities of Discontinued Operations

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

	March 31,		December 31,
	2017		2016
Assets:
Current assets:
Receivables, net	$	97	$	148
Total current assets		97		148
Non-current assets:
Other assets, net		426		483
Deferred income tax assets, net		5,622		5,622
Total assets of discontinued operations	$	6,145	$	6,253
Liabilities:
Current liabilities:
Accounts payable and accrued expenses	$	95	$	76
Remaining lease obligations		7,303		8,143
Total current liabilities		7,398		8,219
Non-current liabilities:
Remaining lease obligations		4,817		6,331
Other		90		91
Total liabilities of discontinued operations	$	12,305	$	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 condensed consolidated balance sheets, for the quarters ended March 31, 2017 and 2016, were as follows (dollars in thousands):

	Balance, Beginning of Period		Charges Incurred (1)			Net Cash Payments			Balance, End of Period
For the quarter ended March 31, 2017	$	14,474	$	365		$	(2,719	)	$	12,120
For the quarter ended March 31, 2016	$	21,751	$	(342	)	$	(3,740	)	$	17,669

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