Contingencies (Tables)

6 Months Ended

Jun. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Components of Recorded Liability Related to Claims and Contingencies

The following table sets forth the components of our recorded liability related to our claims and contingencies and where the amounts were included on our Condensed Consolidated Balance Sheets as of the dates indicated:

	As of June 30, 2013		As of December 31, 2012		As of June 30, 2012
PEAKS Guarantee (1)	$	0	$	47,500	$	0
2009 RSA		31,982		28,232		13,028
2007 RSA (2)		0		46,000		24,250
Other		6,970		5,246		5,946
Total	$	38,952	$	126,978	$	43,224
Other current liabilities	$	37,011	$	85,655	$	19,260
Other liabilities		1,941		41,323		23,964
Total	$	38,952	$	126,978	$	43,224

(1) We consolidated the PEAKS Trust in our consolidated financial statements as of February 28, 2013. See Note 8 – Variable Interest Entities, for a further discussion of the Consolidation.

(2) As defined below.

Activity with Respect to Claims and Contingencies

The following table sets forth the activity with respect to our recorded liability related to our claims and contingencies in the periods indicated:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Balance at beginning of period	$	38,648		$	38,734		$	126,978		$	36,028
Increases (decreases) from:
Additional accruals:
PEAKS Guarantee		0			0			0			0
2009 RSA		0			3,906			3,803			6,960
2007 RSA		0			0			0			0
Other, net		381			1,234			1,951			1,075
Payments, net of recoveries of $0, $50, $103 and $87 (1)		(77	)		(392	)		(280	)		(581	)
Payments under PEAKS Guarantee, net of estimated recoveries of $0, $0, $723 and $0		0			(258	)		(516	)		(258	)
Payments on Behalf of Borrowers		(3,290	)		0			(5,145	)		0
Settlement payment – 2007 RSA		0			0			(46,000	)		0
Elimination of intercompany transactions (2)		3,290			0			4,275
Elimination of PEAKS Guarantee accrual (3)		0			0			(46,114	)		0
Balance at end of period	$	38,952		$	43,224		$	38,952		$	43,224

(1) Includes payments, net of recoveries, under the 2009 RSA.

(2) We consolidated the PEAKS Trust in our consolidated financial statements as of February 28, 2013 and, as a result, we have eliminated from our consolidated financial statements the amount of payments under the PEAKS Guarantee and Payments on Behalf of Borrowers that we made following the Consolidation. See Note 8 – Variable Interest Entities, for a further discussion of the Consolidation.

(3) As a result of the Consolidation, we have eliminated from our consolidated financial statements the contingent liability related to the PEAKS Guarantee that we had previously recorded.

Estimated Amounts of Regular, Discharge Payments Expected to Pay and Estimated Recoveries from Charged-off Loans

We believe that it is probable that we will make additional payments under the 2009 RSA. The following table sets forth our projections as of June 30, 2013 of the estimated amounts of Regular Payments and Discharge Payments that we expected to pay and the estimated amounts of recoveries from charged-off loans that we expected to be paid to us by the 2009 Entity in the periods indicated:

Year	Estimated Regular Payments		Estimated Discharge Payments		Estimated Total Payments		Estimated Recoveries
2013 (1)	$	0	$	27,027	$	27,027	$	(650	)
2014		0		10,432		10,432		(1,820	)
2015		0		4,333		4,333		(2,490	)
2016		0		933		933		(2,570	)
2017 and later		0		140		140		(2,653	)
Total	$	0	$	42,865	$	42,865	$	(10,183	)

⁽¹⁾  Estimated payments and recoveries between July 1, 2013 and December 31, 2013.

Aggregate Amount of Guarantee Payments, Discharge Payments and Payments on Behalf of Borrowers

The following table sets forth the approximate aggregate amount of guarantee payments, Discharge Payments and Payments on Behalf of Borrowers that were made related to the PEAKS Program and 2009 RSA and the amount of recoveries from charged-off loans paid to us by the 2009 Entity, in the periods indicated:

	January 1, 2013 Through February 28, 2013(1)		March 1, 2013 Through June 30, 2013(1)		Total Six Months Ended June 30, 2013			Six Months Ended June 30, 2012
Type of Payment (Receipt)
Guarantee:
PEAKS Program	$	854	$	385	$	1,239		$	258
2009 RSA Regular Payments		0		0		383			668
2009 RSA Discharge Payments		0		0		0			0
Payments on Behalf of Borrowers		532		4,613		5,145			0
2009 RSA-Recoveries from Charged-Off Loans		0		0		(103	)		(87	)
Total	$	1,386	$	4,998	$	6,664		$	839

(1) We have provided separate columns showing the payment amounts prior to and after the Consolidation, because all transactions with the PEAKS Trust were eliminated from our consolidated financial statements after the Consolidation. Cash payments were, however, made by us throughout the periods indicated, including the periods after the Consolidation.

(2)  The 2009 RSA payments are made to, and recoveries are received from, the 2009 Entity. The 2009 Entity was not consolidated in our consolidated financial statements and, therefore, separate disclosure of amounts paid or received before and after the February 28, 2013 date of Consolidation is not applicable.