Contingencies (Tables)

6 Months Ended

Jun. 30, 2014

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, 2014		As of December 31, 2013		As of June 30, 2013
2009 RSA	$	113,477	$	116,923	$	31,982
Other		12,597		8,957		6,970
Total	$	126,074	$	125,880	$	38,952
Other current liabilities	$	32,169	$	25,893	$	37,011
Other liabilities		93,905		99,987		1,941
Total	$	126,074	$	125,880	$	38,952

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						Six Months
	Ended June 30,						Ended June 30,
	2014			2013			2014			2013
Balance at beginning of period	$	129,515		$	38,648		$	125,880		$	126,978
Increases (decreases) from:
Additional accruals:
2009 RSA		0			0			0			3,803
Other		7,449			2,845			16,213			7,158
Payments, other (1)		(9,301	)		(2,464	)		(13,272	)		(5,207	)
Payments, net of recoveries of $0, $0, $0 and $103 (2)		(1,589	)		(77	)		(2,747	)		(280	)
Payments under PEAKS Guarantee, net of estimated recoveries of $0, $0, $0 and $723		(1,088	)		0			(41,801	)		(516	)
Payments on Behalf of Borrowers		0			(3,290	)		(1,832	)		(5,145	)
Settlement payment – 2007 RSA		0			0			0			(46,000	)
Elimination of intercompany transactions (3)		1,088			3,290			43,633			4,275
Elimination of PEAKS Guarantee accrual (4)		0			0			0			(46,114	)
Balance at end of period	$	126,074		$	38,952		$	126,074		$	38,952

(1) Consists of payments for legal and other contingencies, net of recoveries from charged-off loans made under the 2009 Loan Program that were owed, but had not been remitted, to us.

(2) Consists of payments, net of recoveries, under the 2009 RSA.

(3) We consolidated the PEAKS Trust in our consolidated financial statements as of February 28, 2013 and, as a result, we 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 7 – Variable Interest Entities, for a further discussion of the Consolidation.

(4) As a result of the Consolidation, in the six months ended June 30, 2013, we 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 be Paid and Estimated Recoveries from Charged-off Loans

The following table sets forth, in the periods indicated, our projections as of June 30, 2014 of the estimated amounts of Regular Payments and Discharge Payments that we expected to pay (or that we expected will be owed by us, which amounts could be reduced prior to payment thereof by the amount of recoveries from charged-off loans owed to us as described in the immediately preceding sentence) and the estimated amounts of recoveries from charged-off loans that we expected to be paid to us by the 2009 Entity (or that we may utilize to offset a portion of the amounts of Regular Payments or Discharge Payments owed by us):

Year	Estimated Regular Payments		Estimated Discharge Payments			Estimated Total Payments		Estimated Recoveries
2014(1)	$	5,429	$	0	(2)	$	5,429	$	(535	)
2015		14,730		0			14,730		(1,200	)
2016		16,787		0			16,787		(1,200	)
2017		17,094		0			17,094		(1,200	)
2018 and later		0		72,005			72,005		(300	)
Total	$	54,040	$	72,005	(2)	$	126,045	$	(4,435	)

⁽¹⁾  Estimated payments and recoveries between July 1, 2014 and December 31, 2014.

⁽²⁾  The Discharge Payment that we made on November 12, 2014 pursuant to the terms of the Fourth Amendment to 2009 RSA (as defined below) is not included, because the amounts in this table represent our projections as of June 30, 2014.

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:

	Three Months				Six Months
	Ended June 30,				Ended June 30,
Type of Payment (Receipt)	2014		2013		2014		2013
Guarantee:
PEAKS Program	$	1,088	$	0	$	41,801	$	1,239	(1)
2009 RSA Regular Payments		1,589		77		2,747		383
2009 RSA Discharge Payments		0		0		0		0
Payments on Behalf of Borrowers		0		3,290		1,832		5,145	(2)
2009 RSA-Recoveries from Charged-Off Loans		0		0		0		(103	)
Total	$	2,677	$	3,367	$	46,380	$	6,664

⁽¹⁾  Of this amount, $854 was paid prior to the Consolidation.

⁽²⁾  Of this amount, $532 was paid prior to the Consolidation.