Guarantor Subsidiaries Financial Information (Tables)

12 Months Ended

Jun. 30, 2014

Guarantor Subsidiaries Financial Information [Abstract]

Condensed Balance Sheet

CONDENSED CONSOLIDATED BALANCE SHEET

June 30, 2013 (In thousands)

	EM LLC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			EM LLC Consolidated			EDMC			Eliminations			EDMC Consolidated
Assets
Current assets:
Cash and cash equivalents	$	(10,777	)	$	139		$	141,110		$	—		$	130,472		$	223		$	—		$	130,695
Restricted cash	46,982			—			224,358			—			271,340			—			—			271,340
Student and other receivables, net	134			253			238,565			—			238,952			1			—			238,953
Other current assets	27,488			570			102,573			—			130,631			—			—			130,631
Total current assets	63,827			962			706,606			—			771,395			224			—			771,619
Property and equipment, net	65,018			5,984			454,623			—			525,625			—			—			525,625
Goodwill	7,328			—			769,825			—			777,153			—			—			777,153
Intangible assets, net	1,101			28			299,306			—			300,435			—			—			300,435
Investment in subsidiaries	846,826			—			—			(846,826		)	—			187,289			(187,289		)	—
Intercompany balances	653,504			(31,016		)	(791,213		)	—			(168,725		)	168,725			—			—
Other long-term assets	5,059			—			43,465			—			48,524			—			—			48,524
Total assets	$	1,642,663		$	(24,042	)	$	1,482,612		$	(846,826	)	$	2,254,407		$	356,238		$	(187,289	)	$	2,423,356
Liabilities and shareholders’ equity (deficit)
Current liabilities:
Current portion of long-term debt and revolving credit facility	$	86,850		$	—		$	226		$	—		$	87,076		$	—		$	—		$	87,076
Other current liabilities	51,558			3,018			344,397			—			398,973			49			—			399,022
Total current liabilities	138,408			3,018			344,623			—			486,049			49			—			486,098
Long-term debt, less current portion	1,273,214			—			—			—			1,273,214			(50		)	—			1,273,164
Other long-term liabilities	41,519			248			193,849			—			235,616			—			—			235,616
Deferred income taxes	2,233			399			69,607			—			72,239			383			—			72,622
Total liabilities	1,455,374			3,665			608,079			—			2,067,118			382			—			2,067,500
Total shareholders’ equity (deficit)	187,289			(27,707		)	874,533			(846,826		)	187,289			355,856			(187,289		)	355,856
Total liabilities and shareholders’ equity (deficit)	$	1,642,663		$	(24,042	)	$	1,482,612		$	(846,826	)	$	2,254,407		$	356,238		$	(187,289	)	$	2,423,356

CONDENSED CONSOLIDATED BALANCE SHEET

June 30, 2014 (In thousands)

	EM LLC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			EM LLC Consolidated			EDMC			Eliminations		EDMC Consolidated
Assets
Current assets:
Cash and cash equivalents	$	(14,680	)	$	83		$	234,478		$	—		$	219,881		$	50,686		$	—	$	270,567
Restricted cash	42,916			—			221,490			—			264,406			7,275			—		271,681
Student and other receivables, net	442			144			267,504			—			268,090			—			—		268,090
Other current assets	30,049			888			34,691			—			65,628			—			—		65,628
Total current assets	58,727			1,115			758,163			—			818,005			57,961			—		875,966
Property and equipment, net	66,901			5,804			356,752			—			429,457			—			—		429,457
Goodwill	7,328			—			336,078			—			343,406			—			—		343,406
Intangible assets, net	901			19			168,903			—			169,823			—			—		169,823
Investment in subsidiaries	356,375			—			—			(356,375		)	—			(471,203		)	471,203		—
Intercompany balances	668,366			(34,161		)	(761,313		)	—			(127,108		)	127,108			—		—
Other long-term assets	25,314			—			33,070			—			58,384			—			—		58,384
Total assets	$	1,183,912		$	(27,223	)	$	891,653		$	(356,375	)	$	1,691,967		$	(286,134	)	$	471,203	$	1,877,036
Liabilities and shareholders’ equity (deficit)
Current liabilities:
Current portion of long-term debt and revolving credit facility	$	231,765		$	—		$	—		$	—		$	231,765		$	—		$	—	$	231,765
Other current liabilities	129,892			2,913			270,755			—			403,560			—			—		403,560
Total current liabilities	361,657			2,913			270,755			—			635,325			—			—		635,325
Long-term debt, less current portion	1,271,586			—			—			—			1,271,586			—			—		1,271,586
Other long-term liabilities	21,695			119			174,607			—			196,421			—			—		196,421
Deferred income taxes	177			120			59,541			—			59,838			(1,261		)	—		58,577
Total liabilities	1,655,115			3,152			504,903			—			2,163,170			(1,261		)	—		2,161,909
Total shareholders’ equity (deficit)	(471,203		)	(30,375		)	386,750			(356,375		)	(471,203		)	(284,873		)	471,203		(284,873		)
Total liabilities and shareholders’ equity (deficit)	$	1,183,912		$	(27,223	)	$	891,653		$	(356,375	)	$	1,691,967		$	(286,134	)	$	471,203	$	1,877,036

Condensed Income Statement

CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS

For the Fiscal Year Ended June 30, 2013 (In thousands)

	EM LLC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		EM LLC Consolidated			EDMC			Eliminations			EDMC Consolidated
Net revenues	$	—		$	8,392		$	2,490,207		$	—	$	2,498,599		$	—		$	—		$	2,498,599
Costs and expenses:
Educational services	116,094			9,287			1,321,716			—		1,447,097			—			—			1,447,097
General and administrative	(101,570		)	(545		)	791,258			—		689,143			—			—			689,143
Depreciation and amortization	32,552			605			131,555			—		164,712			—			—			164,712
Long-lived asset impairments	—			—			300,104			—		300,104			—			—			300,104
Total costs and expenses	47,076			9,347			2,544,633			—		2,601,056			—			—			2,601,056
Loss before interest, loss on debt refinancing and income taxes	(47,076		)	(955		)	(54,426		)	—		(102,457		)	—			—			(102,457		)
Interest expense (income), net	122,297			—			2,387			—		124,684			(21		)	—			124,663
Loss on debt refinancing	5,232			—			—			—		5,232			—			—			5,232
Deficit in loss of subsidiaries	(61,469		)	—			—			61,469		—			(244,020		)	244,020			—
Loss before income taxes	(236,074		)	(955		)	(56,813		)	61,469		(232,373		)	(243,999		)	244,020			(232,352		)
Income tax expense	7,946			43			3,658			—		11,647			391			—			12,038
Net loss	(244,020		)	(998		)	(60,471		)	61,469		(244,020		)	(244,390		)	244,020			(244,390		)
Net change in unrecognized loss on interest rate swaps, net of tax	$	4,923		$	—		$	—		$	—	$	4,923		$	4,923		$	(4,923	)	$	4,923
Foreign currency translation loss	(527		)	—			(527		)	527		(527		)	(527		)	527			(527		)
Other comprehensive loss	4,396			—			(527		)	527		4,396			4,396			(4,396		)	4,396
Comprehensive loss	$	(239,624	)	$	(998	)	$	(60,998	)	$	61,996	$	(239,624	)	$	(239,994	)	$	239,624		$	(239,994	)

CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS

For the Fiscal Year Ended June 30, 2014 (In thousands)

	EM LLC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		EM LLC Consolidated			EDMC			Eliminations			EDMC Consolidated
Net revenues	$	—		$	7,684		$	2,265,052		$	—	$	2,272,736		$	—		$	—		$	2,272,736
Costs and expenses:
Educational services	65,655			10,285			1,297,758			—		1,373,698			1			—			1,373,699
General and administrative	(61,141		)	(751		)	729,459			—		667,567			—			—			667,567
Depreciation and amortization	28,744			631			123,126			—		152,501			—			—			152,501
Long-lived asset impairments	—			—			568,216					568,216									568,216
Total costs and expenses	33,258			10,165			2,718,559			—		2,761,982			1			—			2,761,983
Loss before interest and income taxes	(33,258		)	(2,481		)	(453,507		)	—		(489,246		)	(1		)	—			(489,247		)
Interest expense (income), net	128,650			—			(609		)	—		128,041			(8		)	—			128,033
Deficit in loss of subsidiaries	(489,781		)	—			—			489,781		—			(663,921		)	663,921			—
Loss before income taxes	(651,689		)	(2,481		)	(452,898		)	489,781		(617,287		)	(663,914		)	663,921			(617,280		)
Income tax expense	12,232			187			34,215			—		46,634			3			—			46,637
Net loss	$	(663,921	)	$	(2,668	)	$	(487,113	)	$	489,781	$	(663,921	)	$	(663,917	)	$	663,921		$	(663,917	)
Net change in unrecognized loss on interest rate swaps, net of tax	$	6,099		$	—		$	—		$	—	$	6,099		$	6,099		$	(6,099	)	$	6,099
Foreign currency translation loss	(670		)	—			(670		)	670		(670		)	(670		)	670			(670		)
Other comprehensive income	5,429			—			(670		)	670		5,429			5,429			(5,429		)	5,429
Comprehensive loss	$	(658,492	)	$	(2,668	)	$	(487,783	)	$	490,451	$	(658,492	)	$	(658,488	)	$	658,492		$	(658,488	)

CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Fiscal Year Ended June 30, 2012 (In thousands)

	EM LLC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		EM LLC Consolidated			EDMC			Eliminations		EDMC Consolidated
Net revenues	$	—		$	9,000		$	2,751,967		$	—	$	2,760,967		$	—		$	—	$	2,760,967
Costs and expenses:
Educational services	93,322			10,554			1,398,480			—		1,502,356			—			—		1,502,356
General and administrative	(82,634		)	(352		)	845,573			—		762,587			276			—		762,863
Depreciation and amortization	26,637			500			131,526			—		158,663			—			—		158,663
Long-lived asset impairments	—			—			1,662,288					1,662,288								1,662,288
Total costs and expenses	37,325			10,702			4,037,867			—		4,085,894			276			—		4,086,170
Loss before interest, loss on debt refinancing and income taxes	(37,325		)	(1,702		)	(1,285,900		)	—		(1,324,927		)	(276		)	—		(1,325,203		)
Interest expense (income), net	107,772			—			2,565			—		110,337			(7		)	—		110,330
Loss on debt refinancing	9,474			—			—			—		9,474			—			—		9,474
Deficit in loss of subsidiaries	(1,280,207		)	—			—			1,280,207		—			(1,433,398		)	1,433,398		—
Loss before income taxes	(1,434,778		)	(1,702		)	(1,288,465		)	1,280,207		(1,444,738		)	(1,433,667		)	1,433,398		(1,445,007		)
Income tax benefit	(1,380		)	(15		)	(9,945		)	—		(11,340		)	(97		)	—		(11,437		)
Net loss	$	(1,433,398	)	$	(1,687	)	$	(1,278,520	)	$	1,280,207	$	(1,433,398	)	$	(1,433,570	)	$	1,433,398	$	(1,433,570	)
Net change in unrecognized loss on interest rate swaps, net of tax	$	(5,189	)	$	—		$	—		$	—	$	(5,189	)	$	(5,189	)	$	5,189	$	(5,189	)
Foreign currency translation gain	(658		)	—			(658		)	658		(658		)	(658		)	658		(658		)
Other comprehensive loss	(5,847		)	—			(658		)	658		(5,847		)	(5,847		)	5,847		(5,847		)
Comprehensive loss	$	(1,439,245	)	$	(1,687	)	$	(1,279,178	)	$	1,280,865	$	(1,439,245	)	$	(1,439,417	)	$	1,439,245	$	(1,439,417	)

Condensed Cash Flow Statement

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the Fiscal Year Ended June 30, 2013 (In thousands)

	EM LLC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			EM LLC Consolidated			EDMC			EDMC Consolidated
Net cash flows provided by (used in) operations	$	(168,316	)	$	(5,632	)	$	365,231		$	191,283		$	24		$	191,307
Cash flows from investing activities
Expenditures for long-lived assets	(10,297		)	(947		)	(71,997		)	(83,241		)	—			(83,241		)
Proceeds from sale of fixed assets	—			—			65,065			65,065			—			65,065
Other investing activities	(858		)	—			(6,778		)	(7,636		)	—			(7,636		)
Net cash flows used in investing activities	(11,155		)	(947		)	(13,710		)	(25,812		)	—			(25,812		)
Cash flows from financing activities
Net repayments of debt and other	(225,406		)	—			(234		)	(225,640		)	3			(225,637		)
Intercompany transactions	420,349			6,620			(423,966		)	3,003			(3,003		)	—
Net cash flows provided by (used in) financing activities	194,943			6,620			(424,200		)	(222,637		)	(3,000		)	(225,637		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(171		)	(171		)	—			(171		)
Net change in cash and cash equivalents	15,472			41			(72,850		)	(57,337		)	(2,976		)	(60,313		)
Beginning cash and cash equivalents	(26,249		)	98			213,960			187,809			3,199			191,008
Ending cash and cash equivalents	$	(10,777	)	$	139		$	141,110		$	130,472		$	223		$	130,695

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the Fiscal Year Ended June 30, 2012 (In thousands)

	EM LLC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			EM LLC Consolidated			EDMC			EDMC Consolidated
Net cash flows provided by (used in) operations	$	(35,071	)	$	4,015		$	17,140		$	(13,916	)	$	3,066		$	(10,850	)
Cash flows from investing activities
Expenditures for long-lived assets	(10,373		)	(1,127		)	(82,046		)	(93,546		)	—			(93,546		)
Other investing activities	(375		)	—			(14,932		)	(15,307		)	—			(15,307		)
Net cash flows used in investing activities	(10,748		)	(1,127		)	(96,978		)	(108,853		)	—			(108,853		)
Cash flows from financing activities
Net repayments of debt and other	9,610			—			(263		)	9,347			—			9,347
Common stock repurchased and stock option exercises	—			—			—			—			(101,455		)	(101,455		)
Intercompany transactions	26,776			(3,060		)	(75,171		)	(51,455		)	51,455			—
Net cash flows provided by (used in) financing activities	36,386			(3,060		)	(75,434		)	(42,108		)	(50,000		)	(92,108		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(405		)	(405		)	—			(405		)
Net change in cash and cash equivalents	(9,433		)	(172		)	(155,677		)	(165,282		)	(46,934		)	(212,216		)
Beginning cash and cash equivalents	(16,816		)	270			369,637			353,091			50,133			403,224
Ending cash and cash equivalents	$	(26,249	)	$	98		$	213,960		$	187,809		$	3,199		$	191,008

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the Fiscal Year Ended June 30, 2014 (In thousands)

	EM LLC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			EM LLC Consolidated			EDMC		EDMC Consolidated
Net cash flows provided by (used in) operations	$	(105,944	)	$	(2,505	)	$	179,091		$	70,642		$	4	$	70,646
Cash flows from investing activities:
Expenditures for long-lived assets	(11,490		)	(997		)	(61,273		)	(73,760		)	—		(73,760		)
Proceeds from sale of fixed assets	—			—			9,565			9,565			—		9,565
Other investing activities	—			—			(2,457		)	(2,457		)	—		(2,457		)
Net cash flows used in investing activities	(11,490		)	(997		)	(54,165		)	(66,652		)	—		(66,652		)
Cash flows from financing activities:
Net repayments of debt and other	133,065			—			(226		)	132,839			—		132,839
Share-based payment activities	—			—			—			—			3,113		3,113
Intercompany transactions	(19,534		)	3,446			(31,258		)	(47,346		)	47,346		—
Net cash flows provided by (used in) financing activities	113,531			3,446			(31,484		)	85,493			50,459		135,952
Effect of exchange rate changes on cash and cash equivalents	—			—			(74		)	(74		)	—		(74		)
Net change in cash and cash equivalents	(3,903		)	(56		)	93,368			89,409			50,463		139,872
Beginning cash and cash equivalents	(10,777		)	139			141,110			130,472			223		130,695
Ending cash and cash equivalents	$	(14,680	)	$	83		$	234,478		$	219,881		$	50,686	$	270,567