13. DISCONTINUED OPERATIONS

As of September 30, 2018, 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 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 and years to date ended September 30, 2018 and 2017 were as follows (dollars in thousands):

	For the Quarter Ended September 30,						For the Year to Date Ended September 30,
	2018			2017			2018			2017
Total operating expenses	$	277		$	814		$	922		$	2,071
Loss before income tax	$	(277	)	$	(771	)	$	(922	)	$	(2,028	)
Benefit from income tax		(66	)		(295	)		(216	)		(755	)
Loss from discontinued operations, net of tax	$	(211	)	$	(476	)	$	(706	)	$	(1,273	)

Assets and Liabilities of Discontinued Operations

Assets and liabilities of discontinued operations on our condensed consolidated balance sheets as of September 30, 2018 and December 31, 2017 include the following (dollars in thousands):

	September 30,		December 31,
	2018		2017
Assets:
Current assets:
Receivables, net	$	66	$	382
Total current assets		66		382
Non-current assets:
Other long term assets		11		-
Deferred income tax assets, net		1,585		1,585
Total assets of discontinued operations	$	1,662	$	1,967
Liabilities:
Current liabilities:
Accounts payable and accrued expenses	$	54	$	185
Remaining lease obligations		1,959		5,516
Total current liabilities		2,013		5,701
Non-current liabilities:
Remaining lease obligations		-		785
Total liabilities of discontinued operations	$	2,013	$	6,486

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 and years to date ended September 30, 2018 and 2017, were as follows (dollars in thousands):

	Balance, Beginning of Period		Charges Incurred ⁽¹⁾		Net Cash Payments			Balance, End of Period
For the quarter ended September 30, 2018	$	3,109	$	-	$	(1,150	)	$	1,959
For the quarter ended September 30, 2017	$	9,698	$	251	$	(1,538	)	$	8,411
For the year to date ended September 30, 2018	$	6,301	$	3	$	(4,345	)	$	1,959
For the year to date ended September 30, 2017	$	14,474	$	769	$	(6,832	)	$	8,411

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