Restatement of Previously Issued Unaudited and Audited Financial Statements

9 Months Ended

Sep. 30, 2015

Accounting Changes and Error Corrections [Abstract]

Restatement of Previously Issued Unaudited and Audited Financial Statements

2. Restatement of Previously Issued Unaudited and Audited Financial Statements

Subsequent to the Original Filing, we determined there was an error in the application of the interest method used to calculate the interest rate used in accounting for the accretion of the debt discount associated with our PEAKS Senior Debt. In our Original Filing, we accreted the debt discount associated with the PEAKS Senior Debt using the interest method based on the amounts and timing of the repayments that we estimated at the time that the PEAKS Senior Debt was initially included in our consolidated financial statements. We subsequently determined that the interest method should take into consideration actual repayments and updated projections for future repayments on the PEAKS Senior Debt to determine the interest rate used to calculate the amount of the debt discount recognized as interest expense in each period.

As a result, we have restated the previously-issued unaudited condensed consolidated financial statements in our Quarterly Reports on Form 10-Q for each of the fiscal quarters ended March 31, 2014, June 30, 2014, September 30, 2014, March 31, 2015, June 30, 2015 and September 30, 2015, and our audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2014, and that those previously-issued financial statements should no longer be relied upon.

Our restated condensed consolidated financial statements as of and for the three and nine months ended September 30, 2015 included in this Amended Filing reflect the correction of this error. A reconciliation of previously reported amounts to the restated amounts is set forth in the tables below.

The following table sets forth the effect of the restatement on the affected line items on our Condensed Consolidated Balance Sheet as of September 30, 2015:

	As of September 30, 2015
	As Previously Reported		Interest Method Adjustment			As Restated
Condensed Consolidated Balance Sheet Data:
Deferred income taxes	$	66,758	$	3,678		$	70,436
Total assets		728,471		3,678			732,149
Other current liabilities		58,333		103			58,436
Total current liabilities		393,842		103			393,945
PEAKS Trust senior debt, excluding current portion		27,422		9,508			36,930
Total liabilities		570,907		9,611			580,518
Retained earnings		982,709		(5,933	)		976,776
Total shareholders’ equity		157,564		(5,933	)		151,631
Total liabilities and shareholders’ equity		728,471		3,678			732,149

The following table sets forth the effect of the restatement on the affected line items in our Condensed Consolidated Statement of Shareholders’ Equity for the nine months ended September 30, 2015:

	Nine Months Ended September 30, 2015
	As Previously Reported		Interest Method Adjustment			As Restated
Condensed Consolidated Statement of Shareholders’ Equity Data – Retained Earnings:
Net income	$	12,851	$	0		$	12,851
Balance as of September 30, 2015		982,709		(5,933	)		976,776

The change in accretion in the three and nine months ended September 30, 2015 was not materially different from the amount previously recorded.