Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 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 Consolidated Balance Sheets as of the dates indicated:

	As of December 31,
	2013		2012
PEAKS Guarantee (1)	$	0	$	47,500
2009 RSA		116,923		28,232
2007 RSA(2)		0		46,000
Other		8,957		5,246
Total	$	125,880	$	126,978
Other current liabilities	$	25,893	$	85,655
Other liabilities		99,987		41,323
Total	$	125,880	$	126,978

(1) We consolidated the PEAKS Trust in our consolidated financial statements as of February 28, 2013. See Note 10 – 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:

	Year Ended December 31,
	2013			2012
Balance as of January 1	$	126,978		$	36,028
Increases (decreases) from:
Additional accruals:
PEAKS Guarantee (1)		0			55,935
2009 RSA (2)		90,964			23,340
2007 RSA		0			21,750
Other		4,038			117
Payments, net of recoveries of $103 and $234 (3)		(2,600	)		(1,756	)
Payments under PEAKS Guarantee, net of estimated recoveries of $1,408 and $6,668		(1,005	)		(5,674	)
Payments on Behalf of Borrowers		(11,499	)		(2,762	)
Settlement payment – 2007 RSA		(46,000	)		0
Elimination of intercompany transactions (4)		11,118			0
Elimination of PEAKS Guarantee accrual (5)		(46,114	)		0
Balance as of December 31	$	125,880		$	126,978

(1) Our guarantee obligations under the PEAKS Program remain in effect until the PEAKS Senior Debt and the PEAKS Trust’s fees and expenses are paid in full. At such time, we will be entitled to repayment by the PEAKS Trust of the amount of payments we made under the PEAKS Guarantee (which do not include Payments on Behalf of Borrowers) to the extent that funds remain in the PEAKS Trust after the PEAKS Senior Debt and all fees and expenses of the PEAKS Trust have been paid in full. The PEAKS Senior Debt matures in January 2020 and, therefore, we do not expect to begin receiving any repayment of amounts that we previously paid under the PEAKS Guarantee until February 2020. The accrual related to the PEAKS Guarantee as of December 31, 2012 was recorded net of estimated recoveries, taking into consideration the present value of the estimated recoveries.

(2) This amount represents a change in our accounting estimate for the amount of our guarantee obligations under the 2009 RSA. We revised our estimate for the 2009 RSA based on an enhanced default rate methodology and more recent performance data that we obtained in the three months ended December 31, 2013. The primary enhancements and performance data included: (i) an adjustment to the default estimates for student borrowers, as a result of recently obtained actual default data for similarly-situated student borrowers; (ii) an adjustment to the default rate expectations, due to declines in repayment performance; (iii) our ability to make Discharge Payments; and (iv) a lower expectation for collections on defaulted loans as a result of the performance to date of collections.

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

(4) 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 10 – Variable Interest Entities, for a further discussion of the Consolidation.

(5) 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.

Future Minimum Rental Payments

Future minimum rental payments required under our operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2013 are as follows:

2014	$	44,714
2015		38,582
2016		27,939
2017		19,084
2018		13,282
2019 and thereafter		12,446
	$	156,047

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

The following table sets forth the estimated amount of Regular Payments and Discharge Payments that we expect to pay and the estimated amount of recoveries from charged-off loans that we expect 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
2014	$	9,009	$	0	$	9,009	$	(1,011	)
2015		14,251		0		14,251		(1,200	)
2016		16,060		0		16,060		(1,200	)
2017		16,333		0		16,333		(1,200	)
2018 and later		0		75,194		75,194		(300	)
	$	55,653	$	75,194	$	130,847	$	(4,911	)

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)(2)		March 1, 2013 Through December 31, 2013(1)(2)		Total Year Ended December 31, 2013			Year Ended December 31, 2012
Type of Payment (Receipt)
Guarantee:
PEAKS Program	$	854	$	1,559	$	2,413		$	12,342
2009 RSA Regular Payments		0		0		1,791			1,990
2009 RSA Discharge Payments		0		0		912			0
Payments on Behalf of Borrowers		532		10,967		11,499			2,762
2009 RSA-Recoveries from Charged-Off Loans		0		0		(103	)		(234	)
Total	$	1,386	$	12,526	$	16,512		$	16,860

(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.