Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2015

Schedule of Fair Value and Carrying Value of Assets and Liabilities

The following table sets forth the carrying value of assets and liabilities of the PEAKS Trust that were included on our Condensed Consolidated Balance Sheets as of the dates indicated:


	As of September 30, 2015		As of December 31, 2014		As of September 30, 2014
Assets
Restricted cash	$	1,365	$	1,556	$	1,450
Current portion of PEAKS Trust student loans		6,058		7,169		6,933
PEAKS Trust student loans, excluding current portion, less allowance for loan losses of $28,535, $42,353 and $42,931		49,002		59,902		60,479

Total assets	$	56,425	$	68,627	$	68,862

Liabilities
Current portion of PEAKS Trust senior debt	$	20,534	$	37,545	$	96,516
Other current liabilities		141		199		287
PEAKS Trust senior debt, excluding current portion		36,930		48,166		53,320

Total liabilities	$	57,605	$	85,910	$	150,123

Schedule of Revenue and Expenses of VIE

Revenue and Expenses of the PEAKS Trust. The following table sets forth the revenue and expenses of the PEAKS Trust, which were included in our Condensed Consolidated Statements of Income for the periods indicated:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Revenue	$	2,036		$	2,727		$	6,695		$	9,099
Student services and administrative expenses		437			987			1,467			3,624
Provision for private education loan losses		(123	)		4,511			5,295			13,582
Interest expense		2,760			8,722			8,845			26,195

(Loss) before provision for income taxes	$	(1,038	)	$	(11,493	)	$	(8,912	)	$	(34,302	)

Aggregate Amount of Guarantee and Other Payments

PEAKS Guarantee Payments and Payments on Behalf of Borrowers. The following table sets forth the PEAKS Guarantee payments and Payments on Behalf of Borrowers that were made in the periods indicated:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
PEAKS Guarantee	$	4,856	$	52,517	$	25,313	$	94,318
Payments on Behalf of Borrowers		0		0		0		1,832

Total	$	4,856	$	52,517	$	25,313	$	96,150

CUSO [Member]

Schedule of Fair Value and Carrying Value of Assets and Liabilities

The following table sets forth the fair value and the carrying value of the assets and liabilities of the CUSO as of September 30, 2014 that were included on our Condensed Consolidated Balance Sheet on that date:


	As of September 30, 2014
	Assets		Liabilities
Restricted cash	$	2,738
Current portion of CUSO Student Loans		3,406
CUSO Student Loans, excluding current portion		23,793
Other assets		199
Current portion of CUSO Secured Borrowing Obligation			$	20,662
Other current liabilities				624
CUSO Secured Borrowing Obligation, excluding current portion				101,880
Other liabilities				1,940

Total	$	30,136	$	125,106

The following table sets forth the carrying values of assets and liabilities of the CUSO that were included on our Condensed Consolidated Balance Sheets as of the dates indicated:


	As of September 30, 2015		As of December 31, 2014
Assets
Restricted cash	$	3,074	$	2,517
Current portion of CUSO Student Loans		2,926		3,415
CUSO Student Loans, excluding current portion, less allowance for loan losses of $2,055 and $2,039		16,936		20,390
Other assets		216		284

Total assets	$	23,152	$	26,606

Liabilities
Current portion of CUSO Secured Borrowing Obligation	$	20,121	$	20,813
Other current liabilities		302		179
CUSO Secured Borrowing Obligation, excluding current portion		91,450		100,194
Other liabilities		2,487		1,073

Total liabilities	$	114,360	$	122,259

Schedule of Revenue and Expenses of VIE

Revenue and Expenses of the CUSO. The following table sets forth the revenue and expenses of the CUSO, excluding the gain on consolidation of the CUSO, which were included in our Condensed Consolidated Statements of Income for the periods indicated:


	Three Months Ended September 30, 2015			Nine Months Ended September 30, 2015
Revenue	$	1,182		$	3,431
Student services and administrative expenses		400			1,279
Provision for private education loan losses		877			16
Interest expense		3,364			10,578

(Loss) before provision for income taxes	$	(3,459	)	$	(8,442	)

Aggregate Amount of Guarantee and Other Payments

The following table sets forth the payments that we made to the CUSO related to our guarantee obligations under the CUSO RSA in the periods indicated:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Regular Payments	$	0	⁽¹⁾	$	1,809	⁽²⁾	$	3,840	⁽³⁾	$	4,556	⁽²⁾
Discharge Payments		0			0			9,253			0

Total	$	0		$	1,809		$	13,093		$	4,556

(1)

As described above, we deferred payment of $2,574 of Regular Payments, that otherwise would have been due during this period, to January 2016. In addition, the amount of the recoveries of charged-off loans received by the CUSO during this period that are due but have not been paid to us and that we expect to offset against these Regular Payments was $351.

(2)	This amount is net of $156 of recoveries from charged-off loans owed to us that we offset against amounts owed by us under the CUSO RSA.

(3)

This amount is net of $521 of recoveries from charged-off loans owed to us that we offset against amounts owed by us under the CUSO RSA. In addition, we deferred payment of $3,402 of Regular Payments, that otherwise would have been due during this period, to January 2016. We also expect to utilize the amount of recoveries of charged-off loans received by the CUSO during this period that has not been paid to us, which totaled approximately $468, to offset against amounts that we expect to pay under the CUSO RSA in January 2016.

Schedule of Carrying Value of Assets and Liabilities Eliminated from Financial Statement

The following table sets forth the carrying value of the assets and liabilities related to the CUSO Program as of September 30, 2014 that we eliminated from our consolidated balance sheet when we consolidated the CUSO in our consolidated financial statements, and the line items within which those assets and liabilities were included:


	As of September 30, 2014
	Assets		Liabilities
Prepaid expenses and other current assets	$	3,260
Other current liabilities			$	23,887
Other liabilities				90,974

Total	$	3,260	$	114,861