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

6 Months Ended

Jun. 30, 2013

Accounting Changes and Error Corrections [Abstract]

Summary of Table Sets Forth the Effect of Consolidation and Correction of Errors 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 June 30, 2013:


	As of June 30, 2013
	As Previously Reported		Consolidation of PEAKS Trust			Other Adjustments			As Restated
Condensed Consolidated Balance Sheet Data:
Cash and cash equivalents	$	185,408	$	0		$	(2,840	)	$	182,568
Restricted cash		776		2,203			2,840			5,819
Accounts receivable, net		123,076		0			2,851			125,927
PEAKS Trust student loans, less allowance for loan losses		0		7,307			0			7,307
Deferred income taxes		29,131		39,084			0			68,215
Total current assets		358,179		48,821			2,851			409,851
PEAKS Trust student loans, excluding current portion, less allowance for loan losses		0		101,375			0			101,375
Deferred income taxes		52,759		(8,981	)		1,489			45,267
Other assets		39,440		(7,450	)^(a)		0			31,990
Total assets		629,473		133,765			4,340			767,578
Current portion of PEAKS Trust senior debt		0		102,695			0			102,695
Other current liabilities		41,521		(21,510	)^(a)		23,166	^(b)		43,177
Total current liabilities		245,350		81,185			23,166			349,701
PEAKS Trust senior debt, excluding current portion		0		124,983			0			124,983
Other liabilities		84,191		(22,796	)^(a)		(18,187	)^(b)		43,208
Total liabilities		449,541		183,372			4,979			637,892
Capital surplus		204,731		0			(9,590	)		195,141
Retained earnings		1,011,061		(49,607	)		8,951			970,405
Total shareholders’ equity		179,932		(49,607	)		(639	)		129,686
Total liabilities and shareholders’ equity		629,473		133,765			4,340			767,578

^(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 June 30, 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 June 30, 2013:


	Three Months Ended June 30, 2013
	As Previously Reported			Consolidation of PEAKS Trust			Other Adjustments			Reclassi- fications			As Restated
Condensed Consolidated Statement of Income Data:
Revenue	$	259,936		$	4,104		$	(3,581	)	$	0		$	260,459
Costs and expenses:
Cost of educational services		123,828			0			0			(287	)		123,541
Student services and administrative expenses		100,903			1,559			(4,201	)		74			98,335
Legal and other investigation costs		0			0			0			213			213
Provision for PEAKS Trust student loan losses		0			4,319			0			0			4,319

Total costs and expenses		224,731			5,878			(4,201	)		0			226,408

Operating income (loss)		35,205			(1,774	)		620			0			34,051
(Loss) on consolidation of PEAKS Trust		0			0			0			0			0
Interest income		172			(147	)		0			0			25
Interest (expense)		(1,113	)		(6,256	)		0			0			(7,369	)

Income (loss) before provision for income taxes		34,264			(8,177	)		620			0			26,707
Provision (benefit) for income taxes		13,405			(7,141	)		239			0			6,503

Net income (loss)	$	20,859		$	(1,036	)	$	381		$	0		$	20,204

Earnings per share:
Basic	$	0.89											$	0.86
Diluted	$	0.89											$	0.86
Weighted average shares outstanding:
Basic		23,414												23,414
Diluted		23,550												23,550

The following table sets forth the effect of the Consolidation, correction of errors and reclassifications in our Condensed Consolidated Statement of Income for the six months ended June 30, 2013:


	Six Months Ended June 30, 2013
	As Previously Reported			Consolidation of PEAKS Trust			Other Adjustments			Reclass- ifications			As Restated
Condensed Consolidated Statement of Income Data:
Revenue	$	547,647		$	5,464		$	(7,590	)	$	0		$	545,521
Costs and expenses:
Cost of educational services		249,049			0			0			(1,332	)		247,717
Student services and administrative expenses		207,185			2,078			(8,826	)		(381	)		200,056
Legal and other investigation costs		0			0			0			1,713			1,713
Loss related to loan program guarantees		3,464			0			339			0			3,803
Provision for PEAKS Trust student loan losses		0			4,319			0			0			4,319

Total costs and expenses		459,698			6,397			(8,487	)		0			457,608

Operating income (loss)		87,949			(933	)		897			0			87,913
(Loss) on consolidation of PEAKS Trust		0			(73,248	)		0			0			(73,248	)
Interest income		206			(147	)		0			0			59
Interest (expense)		(2,265	)		(8,678	)		0			0			(10,943	)

Income (loss) before provision for income taxes		85,890			(83,006	)		897			0			3,781
Provision (benefit) for income taxes		33,901			(33,399	)		347			0			849

Net income (loss)	$	51,989		$	(49,607	)	$	550		$	0		$	2,932

Earnings per share:
Basic	$	2.22											$	0.13
Diluted	$	2.21											$	0.12
Weighted average shares outstanding:
Basic		23,406												23,406
Diluted		23,516												23,516

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 June 30, 2013:


	Three Months Ended June 30, 2013
	As Previously Reported		Consolidation of PEAKS Trust			Other Adjustments		As Restated
Condensed Consolidated Statement of Comprehensive Income Data:
Net income (loss)	$	20,859	$	(1,036	)	$	381	$	20,204
Comprehensive income		20,907		(1,036	)		381		20,252


	Six Months Ended June 30, 2013
	As Previously Reported		Consolidation of PEAKS Trust			Other Adjustments		As Restated
Condensed Consolidated Statement of Comprehensive Income Data:
Net income (loss)	$	51,989	$	(49,607	)	$	550	$	2,932
Comprehensive income		52,132		(49,607	)		550		3,075

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 June 30, 2013:


	Three Months Ended June 30, 2013
	As Previously Reported			Consolidation of PEAKS Trust			Other Adjustments			As Restated
Condensed Consolidated Statement of Cash Flows Data:
Net income (loss)	$	20,859		$	(1,036	)	$	381		$	20,204
Provision for doubtful accounts		19,038			0			(4,114	)		14,924
Deferred income taxes		3,123			(1,639	)		0			1,484
Accretion of discount on PEAKS Trust student loans		0			(4,104	)		0			(4,104	)
Accretion of discount on PEAKS Trust senior debt		0			1,381			0			1,381
Provision for PEAKS Trust student loan losses		0			4,319			0			4,319
Restricted cash		(57	)		397			534			874
Accounts receivable		(38,037	)		0			3,494			(34,543	)
PEAKS Trust student loans		0			3,392			0			3,392
Other operating assets and liabilities		(311	)		(2,049	)		239			(2,121	)
Net cash flows from operating activities		7,607			661			534			8,802
Repayment of PEAKS Trust senior debt		0			(661	)		0			(661	)
Net cash flows from financing activities		(30,003	)		(661	)		0			(30,664	)

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 six months ended June 30, 2013:


	Six Months Ended June 30, 2013
	As Previously Reported			Consolidation of PEAKS Trust			Other Adjustments			As Restated
Condensed Consolidated Statement of Cash Flows Data:
Net income (loss)	$	51,989		$	(49,607	)	$	550		$	2,932
Provision for doubtful accounts		38,923			0			(8,694	)		30,229
Deferred income taxes		16,334			(26,902	)		(3,331	)		(13,899	)
Accretion of discount on PEAKS Trust student loans		0			(5,464	)		0			(5,464	)
Accretion of discount on PEAKS Trust senior debt		0			2,033			0			2,033
Provision for PEAKS Trust student loan losses		0			4,319			0			4,319
Loss on consolidation of PEAKS Trust		0			73,248			0			73,248
Restricted cash		(175	)		(500	)		37			(638	)
Accounts receivable		(84,686	)		0			7,458			(77,228	)
PEAKS Trust student loans		0			4,579			0			4,579
Other operating assets and liabilities		(11,004	)		(509	)		3,482			(8,032	)
Net cash flows from operating activities		(35,811	)		661			0			(35,113	)
Repayment of PEAKS Trust senior debt		0			(661	)		0			(661	)
Net cash flows from financing activities		(20,371	)		(661	)		0			(21,032	)

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 six months ended June 30, 2013:


	Six Months Ended June 30, 2013
	As Previously Reported		Consolidation of PEAKS Trust			Other Adjustments			As Restated
Condensed Consolidated Statement of Shareholders’ Equity Data:
Net income (loss)	$	51,989	$	(49,607	)	$	550		$	2,932
Balance as of June 30, 2013		179,932		(49,607	)		(639	)		129,686

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 June 30, 2012
	As Previously Reported		Revisions			As Revised
Condensed Consolidated Balance Sheet Data:
Cash and cash equivalents	$	167,234	$	(6,036	)	$	161,198
Restricted cash		751		6,036			6,787
Accounts receivable, net		73,675		1,372			75,047
Total current assets		273,090		1,372			274,462
Deferred income taxes		36,016		638			36,654
Total assets		556,641		2,010			558,651
Other current liabilities		19,454		13,637			33,091
Total current liabilities		247,815		13,637			261,452
Other liabilities		74,615		(11,446	)		63,169
Total liabilities		472,430		2,191			474,621
Capital surplus		198,812		(9,545	)		189,267
Retained earnings		925,781		9,364			935,145
Total shareholders’ equity		84,211		(181	)		84,030
Total liabilities and shareholders’ equity		556,641		2,010			558,651


	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 tables set forth the effect of the revisions and reclassifications on the affected line items in our Condensed Consolidated Statements of Income for the periods indicated.


	Three Months Ended June 30, 2012
	As Previously Reported		Revisions			Reclassifications			As Revised and Reclassified
Condensed Consolidated Statement of Income Data:
Revenue	$	329,825	$	(1,764	)	$	0		$	328,061
Cost of educational services		140,940		0			(873	)		140,067
Student services and administrative expenses		111,467		(5,572	)		0			105,895
Legal and other investigation costs		0		0			873			873
Loss related to loan program guarantees		0		3,906			0			3,906
Total costs and expenses		252,407		(1,666	)		0			250,741
Income before provision for income taxes		76,666		(98	)		0			76,568
Provision for income taxes		30,664		(37	)		0			30,627
Net income		46,002		(61	)		0			45,941
Earnings per share:
Basic	$	1.97							$	1.96
Diluted	$	1.96							$	1.95


	Six Months Ended June 30, 2012
	As Previously Reported		Revisions			Reclassifications			As Revised and Reclassified
Condensed Consolidated Statement of Income Data:
Revenue	$	671,619	$	(4,349	)	$	0		$	667,270
Cost of educational services		275,881		0			(873	)		275,008
Student services and administrative expenses		217,733		(10,519	)		0			207,214
Legal and other investigation costs		0		0			873			873
Loss related to loan program guarantees		0		6,960			0			6,960
Total costs and expenses		493,614		(3,559	)		0			490,055
Income before provision for income taxes		177,387		(790	)		0			176,597
Provision for income taxes		70,314		(303	)		0			70,011
Net income		107,073		(487	)		0			106,586
Earnings per share:
Basic	$	4.39							$	4.37
Diluted	$	4.36							$	4.34

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

The following tables set forth the effect of the revisions on the affected line items in our Condensed Consolidated Statements of Comprehensive Income for the periods indicated.


	Three Months Ended June 30, 2012
	As Previously Reported		Revisions			As Revised
Condensed Consolidated Statement of Comprehensive Income Data:
Net income	$	46,002	$	(61	)	$	45,941
Comprehensive income		46,171		(61	)		46,110


	Six Months Ended June 30, 2012
	As Previously Reported		Revisions			As Revised
Condensed Consolidated Statement of Comprehensive Income Data:
Net income	$	107,073	$	(487	)	$	106,586
Comprehensive income		107,405		(487	)		106,918

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 June 30, 2012.


	Three Months Ended June 30, 2012
	As Previously Reported			Revisions			As Revised
Condensed Consolidated Statement of Cash Flows Data:
Net income	$	46,002		$	(61	)	$	45,941
Provision for doubtful accounts		19,006			(5,572	)		13,434
Deferred income taxes		(6,334	)		(156	)		(6,490	)
Restricted cash		372			470			842
Accounts receivable		(38,270	)		5,264			(33,006	)
Other operating assets and liabilities		(15,400	)		525			(14,875	)
Net cash flows from operating activities		(38,296	)		470			(37,826	)

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 six months ended June 30, 2012.


	Six Months Ended June 30, 2012
	As Previously Reported			Revisions			As Revised
Condensed Consolidated Statement of Cash Flows Data:
Net income	$	107,073		$	(487	)	$	106,586
Provision for doubtful accounts		34,607			(10,599	)		24,008
Deferred income taxes		(10,076	)		(638	)		(10,714	)
Restricted cash		1,377			(892	)		485
Accounts receivable		(60,176	)		9,649			(50,527	)
Other operating assets and liabilities		6,766			1,995			8,761
Net cash flows from operating activities		(950	)		(892	)		(1,842	)