Restatement and Revision of Previously Issued Unaudited Financial Statements (Tables)

3 Months Ended

Mar. 31, 2013

Accounting Changes and Error Corrections [Abstract]

Summary of Table Sets Forth the Effect of Consolidation and Correction of Errors and Reclassifications of Condensed Consolidated Balance Sheet

The following table sets forth the effect of the Consolidation and correction of errors on the affected line items on our Condensed Consolidated Balance Sheet as of March 31, 2013:

	As of March 31, 2013
	As Previously Reported		Consolidation of PEAKS Trust			Other Adjustments			As Restated
Condensed Consolidated Balance Sheet Data:
Cash and cash equivalents	$	210,012	$	0		$	(3,374	)	$	206,638
Restricted cash		719		2,600			3,374			6,693
Accounts receivable, net		104,077		0			2,231			106,308
PEAKS Trust student loans, less allowance for loan losses		0		7,282			0			7,282
Deferred income taxes		29,513		41,788			0			71,301
Prepaid expenses and other current assets		18,651		0			538			19,189
Total current assets		362,972		51,670			2,769			417,411
PEAKS Trust student loans, excluding current portion, less allowance for loan losses		0		105,007			0			105,007
Deferred income taxes		56,858		(13,324	)		1,490			45,024
Other assets		39,033		(7,312	) (a)		0			31,721
Total assets		642,986		136,041			4,259			783,286
Current portion of PEAKS Trust senior debt		0		103,356			0			103,356
Other current liabilities		34,807		(12,275	) (a)		29,653	(b)		52,185
Total current liabilities		234,573		91,081			29,653			355,307
PEAKS Trust senior debt, excluding current portion		0		123,660			0			123,660
Other liabilities		100,138		(30,129	) (a)		(24,375	) (b)		45,634
Total liabilities		484,711		184,312			5,578			674,601
Capital surplus		204,219		0			(9,590	)		194,629
Retained earnings		990,202		(48,571	)		8,571			950,202
Total shareholders’ equity		158,275		(48,571	)		(1,019	)		108,685
Total liabilities and shareholders’ equity		642,986		136,041			4,259			783,286

^(a) Includes amounts that were eliminated from our consolidated financial statements as a result of the Consolidation, primarily the contingent liability and estimated recoveries associated with payments made under the PEAKS Guarantee.

^(b)  These amounts represent the increase to the contingent loss associated with the 2009 RSA and the reclassification, from long-term to current, that portion expected to be paid within 12 months of March 31, 2013.

Summary of Table Sets Forth the Effect of Consolidation and Correction of Errors and Reclassifications of Condensed Consolidated Statement of Income

The following table sets forth the effect of the Consolidation, correction of errors and reclassifications in our Condensed Consolidated Statement of Income for the three months ended March 31, 2013:

	Three Months Ended March 31, 2013
	As Previously Reported			Consolidation of PEAKS Trust			Other Adjustments			Reclassifications			As Restated
Condensed Consolidated Statement of Income Data:
Revenue	$	287,711		$	1,360		$	(4,009	)	$	0		$	285,062
Costs and expenses:
Cost of educational services		125,221			0			0			(1,045	)		124,176
Student services and administrative expenses		106,282			519			(4,625	)		(455	)		101,721
Legal and other investigation costs		0			0			0			1,500			1,500
Loss related to loan program guarantees		3,464			0			339			0			3,803
Total costs and expenses		234,967			519			(4,286	)		0			231,200
Operating income		52,744			841			277			0			53,862
(Loss) on consolidation of PEAKS Trust		0			(73,248	)								(73,248	)
Interest income		34			0			0			0			34
Interest (expense)		(1,152	)		(2,422	)		0			0			(3,574	)
Income (loss) before provision for income taxes		51,626			(74,829	)		277			0			(22,926	)
Provision (benefit) for income taxes		20,496			(26,258	)		107			0			(5,655	)
Net income (loss)	$	31,130		$	(48,571	)	$	170		$	0		$	(17,271	)
Earnings (loss) per share:
Basic	$	1.33											$	(0.74	)
Diluted	$	1.33											$	(0.74	)
Weighted average shares outstanding:
Basic		23,397												23,397
Diluted		23,481												23,397

Summary of Table Sets Forth the Effect of Consolidation and Correction of Errors on Condensed Consolidated Statement of Comprehensive Income

The following table sets forth the effect of the Consolidation and correction of errors on the affected line items in our Condensed Consolidated Statement of Comprehensive Income for the three months ended March 31, 2013:

	Three Months Ended March 31, 2013
	As Previously Reported		Consolidation of PEAKS Trust			Other Adjustments		As Restated
Condensed Consolidated Statement of Comprehensive Income Data:
Net income (loss)	$	31,130	$	(48,571	)	$	170	$	(17,271	)
Comprehensive income (loss)		31,225		(48,571	)		170		(17,176	)

Summary of Table Sets Forth the Effect of Consolidation and Correction of Errors on Condensed Consolidated Statement of Cash Flows

The following table sets forth the effect of the Consolidation and correction of errors on the affected line items in our Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2013:

	Three Months Ended March 31, 2013
	As Previously Reported			Consolidation of PEAKS Trust			Other Adjustments			As Restated
Condensed Consolidated Statement of Cash Flows Data:
Net income (loss)	$	31,130		$	(48,571	)	$	170		$	(17,271	)
Provision for doubtful accounts		19,885			0			(4,580	)		15,305
Deferred income taxes		13,211			(28,464	)		(131	)		(15,384	)
Accretion of discount on PEAKS Trust student loans		0			(1,360	)		0			(1,360	)
Accretion of discount on PEAKS Trust senior debt		0			652			0			652
Loss on consolidation of PEAKS Trust		0			73,248			0			73,248
Restricted cash		(118	)		(896	)		(498	)		(1,512	)
Accounts receivable		(46,649	)		0			3,964			(42,685	)
PEAKS Trust student loans		0			1,187			0			1,187
Other operating assets and liabilities		(10,693	)		5,360			(577	)		(5,910	)
Net cash flows from operating activities		(43,418	)		0			(497	)		(43,915	)

Summary of Table Sets Forth the Effect of Consolidation and Correction of Errors on Condensed Consolidated Statement of Shareholders' Equity

The following table sets forth the effect of the Consolidation and correction of errors on the affected line items in our Condensed Consolidated Statement of Shareholders’ Equity for the three months ended March 31, 2013:

	Three Months Ended March 31, 2013
	As Previously Reported		Consolidation of PEAKS Trust			Other Adjustments			As Restated
Condensed Consolidated Statement of Shareholders’ Equity Data:
Net income (loss)	$	31,130	$	(48,571	)	$	170		$	(17,271	)
Balance as of March 31, 2013		158,275		(48,571	)		(1,019	)		108,685

Effect of Revisions on affected Line Items on Condensed Consolidated Balance Sheet

The following tables set forth the effect of the revisions on the affected line items on our Condensed Consolidated Balance Sheets as of the dates indicated.

	As of March 31, 2012
	As Previously Reported		Revisions			As Revised
Condensed Consolidated Balance Sheet Data:
Cash and cash equivalents	$	178,476	$	(6,506	)	$	171,970
Restricted cash		1,123		6,506			7,629
Accounts receivable, net		54,411		1,064			55,475
Total current assets		379,214		1,064			380,278
Deferred income taxes		34,081		482			34,563
Total assets		661,304		1,546			662,850
Other current liabilities		50,920		9,721			60,641
Total current liabilities		322,054		9,721			331,775
Other liabilities		72,629		(8,055	)		64,574
Total liabilities		569,683		1,666			571,349
Capital surplus		194,027		(7,765	)		186,262
Retained earnings		884,230		7,645			891,875
Total shareholders’ equity		91,621		(120	)		91,501
Total liabilities and shareholders’ equity		661,304		1,546			662,850

	As of December 31, 2012
	As Previously Reported		Revisions			As Revised
Condensed Consolidated Balance Sheet Data:
Cash and cash equivalents	$	246,342	$	(2,877	)	$	243,465
Restricted cash		601		2,877			3,478
Accounts receivable, net		77,313		1,615			78,928
Total current assets		384,965		1,615			386,580
Deferred income taxes		56,112		1,359			57,471
Total assets		672,230		2,974			675,204
Other current liabilities		86,722		20,074			106,796
Total current liabilities		306,949		20,074			327,023
Other liabilities		98,327		(15,911	)		82,416
Total liabilities		545,276		4,163			549,439
Capital surplus		206,703		(9,590	)		197,113
Retained earnings		959,072		8,401			967,473
Total shareholders’ equity		126,954		(1,189	)		125,765
Total liabilities and shareholders’ equity		672,230		2,974			675,204

Effect of Revisions on affected Line Items on Condensed Consolidated Statement of Income

The following table sets forth the effect of the revisions on the affected line items in our Condensed Consolidated Statement of Income for the three months ended March 31, 2012.

	Three Months Ended March 31, 2012
	As Previously Reported		Revisions			As Revised
Condensed Consolidated Statement of Income Data:
Revenue	$	341,794	$	(2,585	)	$	339,209
Student services and administrative expenses		106,266		(4,947	)		101,319
Loss related to loan program guarantees		0		3,054			3,054
Total costs and expenses		241,207		(1,893	)		239,314
Income before provision for income taxes		100,721		(692	)		100,029
Provision for income taxes		39,650		(266	)		39,384
Net income (loss)		61,071		(426	)		60,645
Earnings per share:
Basic	$	2.40				$	2.39
Diluted	$	2.38				$	2.37

Effect of Revisions on affected Line Items on Condensed Consolidated Statement of Comprehensive Income

The following table sets forth the effect of the revisions on the affected line items in our Condensed Consolidated Statement of Comprehensive Income for the three months ended March 31, 2012.

	Three Months Ended March 31, 2012
	As Previously Reported		Revisions			As Revised
Condensed Consolidated Statement of Comprehensive Income Data:
Net income (loss)	$	61,071	$	(426	)	$	60,645
Comprehensive income		61,234		(426	)		60,808

Effect of Revisions on affected Line Items on Condensed Consolidated Statement of Cash Flows

The following table sets forth the effect of the revisions on the affected line items in our Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2012.

	Three Months Ended March 31, 2012
	As Previously Reported			Revisions			As Revised
Condensed Consolidated Statement of Cash Flows Data:
Net income (loss)	$	61,071		$	(426	)	$	60,645
Provision for doubtful accounts		15,601			(4,947	)		10,654
Deferred income taxes		(3,742	)		(482	)		(4,224	)
Restricted cash		1,005			(1,362	)		(357	)
Accounts receivable		(21,906	)		4,385			(17,521	)
Other operating assets and liabilities		22,166			1,470			23,636
Net cash flows from operating activities		37,346			(1,362	)		35,984