Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Oct. 03, 2014 | Dec. 01, 2014 | Mar. 28, 2014 | |
Entity Registrant Name | LEARNING TREE INTERNATIONAL, INC. | ||
Entity Central Index Key | 1002037 | ||
Current Fiscal Year End Date | 7 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 13,222,539 | ||
Entity Public Float | $18,381,015 | ||
Document Type | 10-K | ||
Document Period End Date | 3-Oct-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Oct. 03, 2014 | Sep. 27, 2013 |
Assets | ||
Cash and cash equivalents | $31,078,000 | $26,583,000 |
Trade accounts receivable, less allowances of $180 and $168, respectively | 16,223,000 | 14,057,000 |
Income taxes receivable | 710,000 | 921,000 |
Prepaid expenses | 3,350,000 | 3,383,000 |
Other current assets | 1,483,000 | 1,848,000 |
Total current assets | 52,844,000 | 46,792,000 |
Equipment, Property and Leasehold Improvements: | ||
Education and office equipment | 37,943,000 | 38,586,000 |
Transportation equipment | 189,000 | 200,000 |
Property and leasehold improvements | 20,753,000 | 28,002,000 |
58,885,000 | 66,788,000 | |
Less: accumulated depreciation and amortization | -49,997,000 | -50,090,000 |
8,888,000 | 16,698,000 | |
Restricted interest-bearing investments | 3,231,000 | 4,175,000 |
Deferred income taxes. | 489,000 | 466,000 |
Other assets | 748,000 | 831,000 |
Total assets | 66,200,000 | 68,962,000 |
Liabilities | ||
Trade accounts payable | 7,909,000 | 7,309,000 |
Deferred revenues | 26,799,000 | 29,780,000 |
Accrued payroll, benefits and related taxes | 4,447,000 | 4,167,000 |
Other accrued liabilities | 2,294,000 | 2,178,000 |
Income taxes payable | 199,000 | 0 |
Current portion of deferred facilities rent and other charges | 1,708,000 | 1,663,000 |
Total current liabilities | 43,356,000 | 45,097,000 |
Asset retirement obligations | 1,880,000 | 2,004,000 |
Deferred income taxes | 161,000 | 284,000 |
Deferred facilities rent and other | 3,744,000 | 4,760,000 |
Noncurrent tax liabilities | 1,262,000 | 1,156,000 |
Total liabilities | 50,403,000 | 53,301,000 |
Commitments and contingencies | 0 | 0 |
Stockholders' Equity | ||
Preferred stock, $.0001 par value; 1,000,000 shares authorized; 0 shares issued and outstanding | 0 | 0 |
Common stock, $.0001 par value; 75,000,000 shares authorized;13,217,484 and 13,222,539 shares issued and outstanding, respectively | 1,000 | 1,000 |
Additional paid-in capital | 6,148,000 | 5,825,000 |
Accumulated other comprehensive loss | -325,000 | -139,000 |
Retained earnings | 9,973,000 | 9,974,000 |
Total stockholders' equity | 15,797,000 | 15,661,000 |
Total liabilities and stockholders' equity | $66,200,000 | $68,962,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Oct. 03, 2014 | Sep. 27, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Trade accounts receivable, allowances | $168 | $180 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, authorized shares (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 13,222,539 | 13,217,484 |
Common stock, shares outstanding (in shares) | 13,222,539 | 13,217,484 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) | 12 Months Ended | |
Oct. 03, 2014 | Sep. 27, 2013 | |
Revenues | $118,248,000 | $116,810,000 |
Cost of revenues | 66,574,000 | 63,010,000 |
Gross profit | 51,674,000 | 53,800,000 |
Operating expenses: | ||
Course development | 7,646,000 | 7,841,000 |
Sales and marketing | 25,521,000 | 28,616,000 |
General and administrative | 24,432,000 | 25,529,000 |
57,599,000 | 61,986,000 | |
Loss from operations before other operating items | -5,925,000 | -8,186,000 |
Other operating items: | ||
Gain (loss) on disposal of property, plant and equipment | 6,322,000 | -54,000 |
6,322,000 | -54,000 | |
Income (loss) from operations | 397,000 | -8,240,000 |
Interest income, net | 39,000 | 43,000 |
Foreign exchange gains (losses) | 115,000 | -151,000 |
Other | -229,000 | 73,000 |
-75,000 | -35,000 | |
Income (loss) before provision for income taxes | 322,000 | -8,275,000 |
Provision (benefit) for income taxes | 321,000 | 444,000 |
Net income (loss) | 1,000 | -8,719,000 |
Comprehensive loss: | ||
Net (loss) income | 1,000 | -8,719,000 |
Foreign currency translation adjustments | -186,000 | -149,000 |
($185,000) | ($8,868,000) | |
Numerator: | ||
Income (loss) per common share - basic (in dollars per share) | $0 | ($0.66) |
Income (loss) per common share - diluted (in dollars per share) | $0 | ($0.66) |
Cash dividends declared per common share (in dollars per share) | $0 | $0 |
Weighted-average shares outstanding - basic (in shares) | 13,221,000 | 13,210,000 |
Weighted average shares outstanding - diluted (in shares) | 13,224,000 | 13,210,000 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Accumulated Other Comprehensive Income (Loss) [Member] | Additional Paid-in Capital [Member] | Common Stock [Member] | Retained Earnings [Member] |
Balance at Sep. 28, 2012 | $24,506,000 | $10,000 | $5,756,000 | $1,000 | $18,739,000 |
Balance (in shares) at Sep. 28, 2012 | 13,175,000 | ||||
Net loss | -8,719,000 | 0 | 0 | 0 | -8,719,000 |
Foreign currency translation | -149,000 | -149,000 | 0 | 0 | 0 |
Share based compensation | 69,000 | 0 | 69,000 | 0 | 0 |
Restricted stock units released (in shares) | 46,000 | ||||
Restricted stock units released | 0 | 0 | 0 | 0 | 0 |
Dividend | -26,000 | 0 | 0 | 0 | -26,000 |
Shares surrendered in lieu of tax withholding (in shares) | 4,000 | ||||
Shares surrendered in lieu of tax withholding | -20,000 | 0 | 0 | 0 | -20,000 |
Net (loss) income | -8,719,000 | 0 | 0 | 0 | -8,719,000 |
Balance at Sep. 27, 2013 | 15,661,000 | -139,000 | 5,825,000 | 1,000 | 9,974,000 |
Balance (in shares) at Sep. 27, 2013 | 13,217,484 | 13,217,000 | |||
Net loss | 1,000 | 0 | 0 | 0 | 1,000 |
Foreign currency translation | -186,000 | -186,000 | 0 | 0 | 0 |
Share based compensation | 323,000 | 0 | 323,000 | 0 | 0 |
Restricted stock units released (in shares) | 6,000 | ||||
Restricted stock units released | 0 | 0 | 0 | 0 | 0 |
Shares surrendered in lieu of tax withholding (in shares) | 1,000 | ||||
Shares surrendered in lieu of tax withholding | -2,000 | 0 | 0 | 0 | -2,000 |
Net (loss) income | 1,000 | 0 | 0 | 0 | 1,000 |
Balance at Oct. 03, 2014 | $15,797,000 | ($325,000) | $6,148,000 | $1,000 | $9,973,000 |
Balance (in shares) at Oct. 03, 2014 | 13,222,539 | 13,222,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows(USD ($)) | 12 Months Ended | |
Oct. 03, 2014 | Sep. 27, 2013 | |
Cash flows - operating activities: | ||
Net (loss) income | $1,000 | ($8,719,000) |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||
Depreciation and amortization | 5,680,000 | 6,041,000 |
Stock-based compensation | 323,000 | 69,000 |
Deferred income taxes | -145,000 | 301,000 |
Allowance for doubtful accounts | 118,000 | 240,000 |
Accretion of asset retirement obligations | 94,000 | 99,000 |
Loss (gain) on disposals of equipment, property and leasehold improvements | -6,322,000 | 54,000 |
Unrealized foreign exchange losses (gains | -463,000 | 93,000 |
Gain on lease termination | 0 | -132,000 |
Settlement of asset retirement obligation | 186,000 | 2,929,000 |
Change in operating assets and liabilities: | ||
Trade accounts receivable | -2,761,000 | 2,508,000 |
Income taxes receivable / payable | 681,000 | 857,000 |
Prepaid expenses and other assets | 1,577,000 | 6,416,000 |
Trade accounts payable | 801,000 | -2,197,000 |
Other accrued liabilities | 1,190,000 | -2,564,000 |
Deferred revenues | -2,473,000 | -2,070,000 |
Asset retirement obligations | 0 | -29,000 |
Deferred facilities rent and other charges | -1,253,000 | -802,000 |
Net cash used in operating activities | -3,138,000 | -2,764,000 |
Cash flows - investing activities: | ||
Purchases of equipment, property and leasehold improvements | -1,593,000 | -2,451,000 |
Sales of available for sale securities | 0 | 6,118,000 |
Sales of equipment, property and leasehold improvements | 9,412,000 | 15,000 |
Net cash provided by investing activities | 7,819,000 | 3,682,000 |
Cash flows - financing activities: | ||
Shares surrendered in lieu of tax withholding | -2,000 | -20,000 |
Payment of cash dividends | 0 | -26,000 |
Net cash used in financing activities | -2,000 | -46,000 |
Effects of exchange rates on cash and cash equivalents | -184,000 | -73,000 |
Net increase in cash and cash equivalents | 4,495,000 | 799,000 |
Cash and cash equivalents at the beginning of the fiscal year | 26,583,000 | 25,784,000 |
Cash and cash equivalents at the end of the fiscal year | 31,078,000 | 26,583,000 |
Supplemental disclosures: | ||
Income taxes paid | 564,000 | 1,074,000 |
Interest paid | 0 | 0 |
Non-cash asset retirement obligation incurred | $0 | $1,022,000 |
Note_1_Nature_of_the_Business_
Note 1 - Nature of the Business and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Oct. 03, 2014 | |||||||||
Notes to Financial Statements | |||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | 1. NATURE OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||
a. Nature of the Business | |||||||||
Learning Tree International, Inc. and subsidiaries (“we,” “us,” or “our”) develop, market, and deliver a broad proprietary library of instructor-led classroom courses that are designed to meet the professional development needs of information technology (“IT”) professionals and managers worldwide. These courses are delivered primarily at our leased education centers located in the United States, the United Kingdom, Canada, France, Sweden and Japan. Such course events are also conducted in hotel and conference facilities and at customer sites throughout the world. Approximately 90% of our course titles are also available to individuals located worldwide through Learning Tree AnyWare™, our patent-pending live online learning interface that allows individuals at any location to attend a live instructor-led Learning Tree class via the Internet. Our courses provide both breadth and depth of education across a wide range of technical and management disciplines, including operating systems, databases, computer networks, computer and network security, web development, programming languages, software engineering, open source applications, project management, business skills, and leadership and professional development. | |||||||||
We follow a 52- or 53-week fiscal year, with our quarter-end dates on the Friday nearest the end of the calendar quarter and our year-end dates on the Friday nearest the end of September. Accordingly, our fiscal year 2013 ended on September 27, 2013, and our fiscal year 2014 ended on October 3, 2014. Thus, these consolidated financial statements report our consolidated financial position as of September 27, 2013, and October 3, 2014 and the related consolidated statements of operations and comprehensive income (loss), stockholders’ equity and cash flows for the fiscal years ended September 27, 2013 and October 3, 2014. Fiscal year 2013 was a 52-week year, while fiscal year 2014 was a 53-week year. | |||||||||
Certain items in the consolidated financial statements have been reclassified to conform to the current presentation. | |||||||||
b. Principles of Consolidation | |||||||||
The accompanying consolidated financial statements include the accounts of Learning Tree International, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated. The following is a list of our subsidiaries: | |||||||||
Learning Tree International USA, Inc. (U.S.) | |||||||||
Learning Tree International, K.K. (Japan) | |||||||||
Learning Tree International Ltd. (United Kingdom) | |||||||||
Learning Tree International S.A. (France) | |||||||||
Learning Tree International AB (Sweden) | |||||||||
Learning Tree International Inc. (Canada) | |||||||||
Advanced Technology Marketing, Inc. (U.S.) | |||||||||
AnyWare Live, Inc. (U.S.) | |||||||||
c. Revenue Recognition and Accounts Receivable | |||||||||
Our revenues are received from business entities and government agencies for the professional training of their employees. Course events range in length from one to five days, and average approximately three and a half days. As stated above, we follow a 52- or 53-week fiscal year. This method is used in order to better align our external financial reporting with the way we operate our business. Since all courses have a duration of five days or less, and all courses begin and end within the same calendar week, under the 52- or 53-week fiscal year method all revenues and related direct costs for each course event are recognized in the week and the fiscal quarter in which the event takes place. | |||||||||
We offer our customers a multiple-course sales discount referred to as a “Learning Tree Training Passport”. A Learning Tree Training Passport allows an individual Passport holder to attend up to a specified number of Learning Tree courses over a one or two-year period for a fixed price. During fiscal year 2012, we re-introduced for a limited time the Unlimited Training Passport which allowed an individual Passport holder to attend as many courses as they wanted by June 30, 2013. This Unlimited Passport program ended on June 30, 2013. For a Training Passport, the amount of revenue recognized for each attendance in a course is based upon the selling price of the Training Passport, the list price of the course taken, the weighted average list price of all courses taken and the estimated average number of courses Passport holders will actually attend. Upon expiration of each individual Training Passport, we record the difference, if any, between the revenues previously recognized and that specific Training Passport’s total invoiced price. The estimated attendance rate is based upon the historical experience of the average number of course events that Training Passport holders have been attending. The actual Training Passport attendance rate is reviewed at least semi-annually, and if the Training Passport attendance rates change, the revenue recognition rate for active Training Passports and for Training Passports sold thereafter is adjusted prospectively. | |||||||||
38 | |||||||||
We believe it is appropriate to recognize revenues on this basis in order to most closely match revenue and related costs, as the substantial majority of our Passport holders do not attend the maximum number of course events permitted under their Training Passport. We believe that the use of recent historical data is reasonable and appropriate because of the relative stability of the average actual number of course events attended by Passport holders. | |||||||||
The average attendance rate for all expired Training Passports has closely approximated the estimated rate we utilize. Although we have seen no material changes in the historical rates as the number of course titles has changed, we monitor such potential effects. In general, determining the estimated average number of course events that will be attended by a Training Passport holder is based on historical trends that may not continue in the future. These estimates could differ in the near term from amounts used in arriving at the reported revenue. If the estimates are wrong, we would record the difference between the revenues previously recognized for that Training Passport and the Training Passport selling price upon expiration of that Training Passport. Thus, the timing of revenue recognition may be affected by an inaccurate estimation, but the inaccuracy would have no effect on the aggregate revenue recognized over the one- to two-year life of each Training Passport. | |||||||||
For Passport products for which historical utilization data is not available, we assume that the estimated average number of courses to be attended is equal to the number of courses available on the Passport. For the Unlimited Training Passport program, we utilize historical data to estimate the expected number of courses that would be attended. Assumed utilization rates may be revised in future periods after sufficient time has passed to amass additional historical trends. | |||||||||
In addition to our Learning Tree Training Passports, we also offer a multiple-course sales discount referred to as Learning Tree Training Vouchers. With Learning Tree Training Vouchers, a customer buys the right to send a specified number of attendees to Learning Tree courses over a six to twelve-month period for a fixed price. Revenue is recognized on a pro rata basis for each attendance. For the majority of Training Vouchers with unused seats at the expiration of the Voucher, we record the pro rata selling price of the expired unused seats as revenue. At times we make a business decision to extend a Training Voucher beyond the normal twelve month expiration date. Training Vouchers purchased under government rate schedules have no expiration date. | |||||||||
Trade accounts receivable are reduced by an allowance for amounts that may become uncollectible in the future. We use estimates in determining the allowance for doubtful accounts receivable, based on our analysis of various factors, including our historical collection experience, current trends, specific identification of invoices which are considered doubtful, and a percentage of our past due accounts receivable. These estimates could differ from actual collection experience and are subject to adjustment. Our trade accounts receivable are written off when they are deemed uncollectible. | |||||||||
d. Stock-Based Compensation | |||||||||
We estimate the fair value of share-based option awards on the date of grant using an option-pricing model. We estimate the fair value of share-based restricted stock units and restricted stock grants using the closing price of our stock on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our consolidated statements of operations and comprehensive income (loss). Our determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by assumptions regarding a number of variables, including our expected stock price volatility, expected term, dividend yield and risk-free interest rates. | |||||||||
We analyzed our historical volatility to estimate the expected volatility. The risk-free interest rate assumption is based on the U.S. Treasury rate at the date of grant, which most closely resembles the expected life of our options. The estimated expected life represents the weighted-average period the stock options are expected to remain outstanding and has been determined based on the simplified method under Accounting Standards Codification (“ASC”) 718. We do not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. | |||||||||
39 | |||||||||
As stock-based compensation expense recognized in the consolidated statements of operations is based on awards ultimately expected to vest, it has been reduced for estimated pre-vesting forfeitures. Forfeitures were estimated based on historical experience. The estimated forfeiture rates used for fiscal years 2013 and 2014 were zero. | |||||||||
e. Course Development Costs | |||||||||
Course development costs are charged to operations in the period incurred. | |||||||||
f. Advertising | |||||||||
Advertising costs are charged to expense in the period incurred. Advertising costs totaled $1,057 and $814 in fiscal years 2013 and 2014, respectively. | |||||||||
g. Cash and Cash Equivalents, Available for Sale Securities, and Interest-bearing Investments | |||||||||
We consider highly liquid investments with remaining maturities of ninety days or less when purchased to be cash equivalents. | |||||||||
We classify certain of our investments in marketable securities as “available for sale”. We do not have any investments classified as “trading” or “held-to-maturity.” Our policy is to invest cash with issuers that have high credit ratings and to limit the amount of credit exposure to any one issuer. | |||||||||
As of October 3, 2014 and September 27, 2013, we had no available for sale securities. | |||||||||
Restricted interest-bearing investments at October 3, 2014 consisted of cash deposits of $2,297 (1,439 British Pounds), $209 (1,519 Swedish Kroner) and $725 which were pledged as collateral to secure our obligations under leases for education center facilities located in the United Kingdom, Sweden, and the United States, respectively. This compares to restricted interest-bearing investments of cash deposits of $2,725 (1,689 British Pounds) and $1,450 at September 27, 2013. The United Kingdom deposits are held in trust by the landlord with interest accruing to us and paid on an annual basis. The deposit will be released to us at the earlier of the end of the lease period or when certain financial ratios have been met. In the United States, the deposit is in a restricted account held by our bank and serves as collateral for a letter of credit issued to our landlord by our bank. | |||||||||
h. Marketing Expenses | |||||||||
Marketing expenses primarily include the external costs associated with the design, printing, postage, list rental and handling of direct mail advertising materials to be mailed in the future. These costs are charged to expense in the month in which the advertising materials are mailed since the benefit period for such costs is short and the amount of future benefit is not practically measurable. Marketing expenses for fiscal years 2013 and 2014 were $13,453 and $11,147 respectively. | |||||||||
i. Equipment, Property and Leasehold Improvements | |||||||||
Equipment, property and leasehold improvements are recorded at cost and depreciated or amortized using the straight-line method over the following estimated useful lives: | |||||||||
Education and office equipment years | 3 | to | 5 | ||||||
Transportation equipment years | 4 | ||||||||
Accounting software years | 7 | ||||||||
Leasehold improvements years | 20 | or the life of the lease, if shorter | |||||||
Building years | 30 | ||||||||
Software amortization amounted to $1 and $1 in fiscal years 2013 and 2014, respectively. Total depreciation and amortization expense amounted to $6,041 and $5,680 in fiscal years 2013 and 2014, respectively. Costs of normal maintenance and repairs and minor replacements are normally charged to expense as incurred. In those instances where we have determined we are contractually obligated to incur recurring repairs and maintenance costs related to our leased facilities, a provision is made in the financial statements at the earlier of the date the expense is incurred or the date of the obligation. The costs of assets sold or retired are eliminated from the accounts along with the related accumulated depreciation or amortization, and any resulting gain or loss is included in the statements of operations and comprehensive income (loss). | |||||||||
40 | |||||||||
In September 2014, we sold and leased back for one year, with options for two six-month extensions, our corporate headquarters, located at 1831 Michael Faraday Dr., Reston, Virginia, which is a 38,500 square foot office facility that we currently use for our corporate headquarters, as well as the sales, administrative and operations groups of our United States subsidiary. The Company’s carrying value of the headquarters property at the time of sale was approximately $3.6 million. | |||||||||
The sale and the leaseback were accounted for as separate transactions based on their respective terms since the lease is determined to be minor. As such, we recognized a gain on the sale of $6.3 million which is shown on the other operating items line of our consolidated statement of operations and comprehensive income (loss). | |||||||||
The fair value of a liability for an asset retirement obligation (“ARO”) associated with a leased facility is recorded as an asset (leasehold improvements) and a liability when there is a legal obligation associated with the retirement of a long-lived asset and the amount can be reasonably estimated. See also Note 2 relating to AROs. | |||||||||
j. Long-Lived Assets | |||||||||
We periodically review the carrying value of our long-lived assets, such as equipment, property and leasehold improvements for impairment or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In making such evaluations, we compare the expected future cash flows to the carrying amount of the assets. If the total of the expected future cash flows is less than the carrying amount of the assets, we are required to make estimates of the fair value of the long-lived assets in order to calculate the impairment loss equal to the difference between the fair value of the assets and their book value. We make significant assumptions and estimates in this process regarding matters that are inherently uncertain, such as estimating cash flows, remaining useful lives, discount rates and growth rates. The resulting cash flows are computed over an extended period of time, which subjects those assumptions and estimates to an even larger degree of uncertainty. While we believe that our estimates are reasonable, different assumptions regarding such cash flows could materially affect the valuation of long-lived assets. | |||||||||
k. Deferred Revenues | |||||||||
Deferred revenues primarily relate to unearned revenues associated with Training Passports, Training Vouchers and advance payments received from customers for course events to be held in the future. | |||||||||
l. Comprehensive Income (loss) | |||||||||
We report comprehensive income in the consolidated statements of operations and comprehensive income (loss). Other comprehensive income (loss) represents changes in stockholders’ equity from non-owner sources and is comprised of foreign currency translation adjustments. At the end of fiscal year 2014, accumulated other comprehensive income (loss) consisted of cumulative foreign currency translation adjustments of $(325) compared to cumulative foreign currency translation adjustments of $(139) in fiscal year 2013. | |||||||||
m. Income Taxes | |||||||||
We provide for income taxes under the provisions of Financial Accounting Standards Board (“FASB”) ASC 740, | |||||||||
Income Taxes | |||||||||
. Deferred income taxes result from temporary differences between the tax basis of assets and liabilities and the basis reported in our consolidated financial statements. Deferred tax assets and liabilities are determined based on the difference between financial statement and tax basis of assets and liabilities using enacted rates expected to be in effect during the year in which the differences reverse. Valuation allowances are provided against assets, including net operating losses, if it is anticipated that some or the entire asset may not be realized through future taxable earnings or implementation of tax planning strategies. | |||||||||
The tax effects of uncertain tax positions are recognized in the financial statements only if the position is more likely than not to be sustained on audit, based on the technical merits of the position. For tax positions meeting the more likely than not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized. It is our accounting policy to account for ASC 740-10 related penalties and interest as a component of the income tax provision in the consolidated statements of operations and comprehensive income (loss). | |||||||||
n. Foreign Currency | |||||||||
We translate the financial statements of our foreign subsidiaries from the local (functional) currencies to U.S. dollars. The rates of exchange at each fiscal year end are used for translating the assets and liabilities and the average monthly rates of exchange for each year are used for the consolidated statements of operations and comprehensive income (loss). Gains or losses arising from the translation of the foreign subsidiaries’ financial statements are included in the accompanying consolidated balance sheets as a separate component of stockholders’ equity. Gains or losses resulting from foreign currency transactions are included in the consolidated statements of operations and comprehensive income (loss). | |||||||||
41 | |||||||||
To date, we have not sought to hedge the risk associated with fluctuations in currency exchange rates, and therefore we continue to be subject to such risk. | |||||||||
o. Deferred Facilities Rent | |||||||||
Operating Lease Activities: | |||||||||
We lease education center and administrative office space under various operating lease agreements. Certain lease agreements include provisions that provide for cash incentives, graduated rent payments and other inducements. We recognize rent expense on a straight-line basis over the related terms of such leases. The value of lease incentives and/or inducements, along with the excess of the rent expense recognized over the rentals paid, is recorded as deferred facilities rent in the accompanying consolidated balance sheets. | |||||||||
Lease Termination Activities: | |||||||||
We record liabilities for costs that will be incurred under a contract without economic benefit at estimated fair value. We have vacated space in leased facilities subject to operating leases and recorded the estimated liability associated with future rentals at the cease-use date. The fair value of the liability at the cease-use date was determined based on the remaining cash flows for lease rentals, and minimum lease payments, reduced by estimated sublease rentals and certain subtenant reimbursements that could be reasonably obtained for the property, discounted using a credit-adjusted risk-free rate. The liability is adjusted for changes, if any, resulting from revisions to estimated cash flows after the cease-use date, measured using the original historical credit-adjusted risk-free rate. Changes due to the passage of time are recognized as an increase in the carrying amount of the liability and as accretion expense. | |||||||||
In September 2012, we announced our intention to close the Los Angeles, CA office facility effective December 2012. Our lease for these facilities runs through April 2016. We recorded a restructuring charge for the estimated liability associated with future rentals due under the property lease as of the cease use date. The fair value of the lease liability at the cease use date was determined based on the remaining cash flows for lease rentals, and minimum lease payments, reduced by estimated sublease rentals, discounted using a credit adjusted risk free rate. In addition, the estimated useful life of leasehold improvements was adjusted for the December 2012 closure date. In June 2014, we re-evaluated the estimated sublease rentals as we have been unable to find a subtenant for the facility. As a result, we recorded an additional $0.5 million restructuring charge in our third quarter of fiscal year 2014. | |||||||||
p. Fair Value of Financial Instruments | |||||||||
The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate their fair values because of the short-term nature of these instruments. | |||||||||
q. Use of Estimates | |||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make judgments, estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | |||||||||
r. Recently Issued Accounting Pronouncements | |||||||||
In May 2014, the FASB | |||||||||
issued ASU | |||||||||
No. 2014-09, “ | |||||||||
Revenue from Contracts with Customers (Topic 606) | |||||||||
” | |||||||||
(“ASU 2014-09”). The standard is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is not permitted. Accordingly, the standard is effective for us on September 30, 2017 using either a full retrospective or a modified retrospective approach. We are currently evaluating which transition approach to use and the impact that the standard will have on our financial statements. | |||||||||
42 | |||||||||
Other recent accounting pronouncements issued by the FASB (including the Emerging Issues Task Force), the American Institute of Certified Public Accountants and the SEC did not, or management believes will not, have a material impact on our present or future consolidated financial statements. |
Note_2_Asset_Retirement_Obliga
Note 2 - Asset Retirement Obligations | 12 Months Ended | ||||||||
Oct. 03, 2014 | |||||||||
Notes to Financial Statements | |||||||||
Asset Retirement Obligation Disclosure [Text Block] | 2. ASSET RETIREMENT OBLIGATIONS | ||||||||
We record a liability equal to the fair value of the estimated cost to retire an asset. The ARO liability is recorded in the period in which the obligation meets the definition of a liability, which is generally when the asset is placed in service and whereby we have contractual commitments to remove leasehold improvements and to return the leased facility back to a specified condition when the lease terminates. For a facility lease, this is typically at the inception of the lease. | |||||||||
When the ARO liability is initially recorded, we increase the carrying amount of the related long-lived asset (leasehold improvements) by an amount equal to the calculated liability. The liability is subsequently accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset, which is the lease term. The ARO liability is recorded at fair value, and accretion expense (included in general and administrative expenses) is recognized over time as the discounted liability is accreted to its expected settlement value. The fair value of the ARO liability is measured using the expected future cash outflows related to the lease and calculated by using inflation rates in effect at the time of adoption and incorporating a market-risk premium, and discounted at our credit-adjusted risk-free interest rate at the time of adoption. Any difference between costs incurred upon settlement of an asset retirement obligation and the recorded liability will be recognized as a gain or loss in our earnings. | |||||||||
Each ARO liability is based on a number of assumptions requiring judgment. We cannot predict the type of revisions to these assumptions that will be required in future periods due to the availability of additional information, technology changes, the price of labor costs and other factors. | |||||||||
The following table presents the activity for our ARO liabilities, which primarily consist of classroom facilities at our education centers: | |||||||||
Fiscal Year Ended | |||||||||
September 27, | October 3, | ||||||||
2013 | 2014 | ||||||||
ARO liabilities balance, beginning of year | $ | 3,907 | $ | 2,004 | |||||
Liabilities incurred | 1,022 | 0 | |||||||
Accretion expense | 99 | 94 | |||||||
Liabilities satisfied | (29 | ) | 0 | ||||||
Settlement of ARO liability | (2,929 | ) | (186 | ) | |||||
Foreign currency translation | (66 | ) | (32 | ) | |||||
ARO liabilities balance, end of year | $ | 2,004 | $ | 1,880 |
Note_3_Income_Taxes
Note 3 - Income Taxes | 12 Months Ended | ||||||||||||||||
Oct. 03, 2014 | |||||||||||||||||
Notes to Financial Statements | |||||||||||||||||
Income Tax Disclosure [Text Block] | 3. INCOME TAXES | ||||||||||||||||
We file a consolidated United States federal income tax return which includes all of our domestic operations. Our domestic subsidiaries also file income tax returns based on our operations in certain state and local jurisdictions. We file separate tax returns for each of our foreign subsidiaries in the countries in which they operate. | |||||||||||||||||
(Loss) income before provision for income taxes consists of the following: | |||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
September 27, | October 3, | ||||||||||||||||
2013 | 2014 | ||||||||||||||||
Domestic | $ | (9,581 | ) | $ | (1,258 | ) | |||||||||||
Foreign | 1,306 | 1,580 | |||||||||||||||
Total | $ | (8,275 | ) | $ | 322 | ||||||||||||
The provision for income taxes consists of the following: | |||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
September 27, | October 3, | ||||||||||||||||
2013 | 2014 | ||||||||||||||||
Current tax provision (benefit): | |||||||||||||||||
U.S. Federal | $ | (201 | ) | $ | 2 | ||||||||||||
State | 253 | (81 | ) | ||||||||||||||
Foreign | 91 | 545 | |||||||||||||||
143 | 466 | ||||||||||||||||
Deferred tax provision: | |||||||||||||||||
U.S. Federal | 274 | (25 | ) | ||||||||||||||
State | 0 | 0 | |||||||||||||||
Foreign | 27 | (120 | ) | ||||||||||||||
301 | (145 | ) | |||||||||||||||
Provision for income taxes | $ | 444 | $ | 321 | |||||||||||||
The following is a reconciliation of the provision for income taxes to the United States federal statutory tax rate: | |||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
September 27, | Effective | October 3, | Effective | ||||||||||||||
2013 | Tax rate | 2014 | Tax rate | ||||||||||||||
% | % | ||||||||||||||||
Income taxes at the U.S. statutory rate | $ | (2,896 | ) | 35 | % | $ | 112 | 35 | % | ||||||||
Equity compensation | 6 | (0.1 | ) | 171 | 53.1 | ||||||||||||
Penalties | 6 | (0.1 | ) | 0 | 0 | ||||||||||||
Other permanent differences | 356 | (4.3 | ) | 236 | 73.4 | ||||||||||||
Effects of foreign taxes and tax credits | 3,149 | (38.1 | ) | (1,235 | ) | (383.6 | ) | ||||||||||
State income taxes | (138 | ) | 1.7 | (63 | ) | (19.8 | ) | ||||||||||
Uncertain tax positions | 8 | (0.1 | ) | 115 | 35.6 | ||||||||||||
Change in valuation allowance | (174 | ) | 2.1 | 1,176 | 366 | ||||||||||||
Other | 127 | (1.5 | ) | (191 | ) | (59.7 | ) | ||||||||||
Total provision for income taxes | $ | 444 | (5.4 | ) | $ | 321 | 100 | % | |||||||||
% | |||||||||||||||||
Significant management judgment is required in determining our provision for income taxes and in determining whether any deferred tax assets will be realized in full or in part. When it is more likely than not that all or some portion of specific deferred tax assets such as net operating losses or foreign tax credit carry-forwards will not be realized, a valuation allowance must be established for the amount of the deferred tax assets that would not be realized. Realization will be based on our ability to generate sufficient future taxable income. In fiscal year 2012 we established a valuation allowance against our deferred tax assets in the United States and France due to current year and projected future pre-tax book losses. We continued to maintain this valuation allowance throughout fiscal years 2013 and 2014. As of October 3, 2014, we had a net deferred tax asset of $328. | |||||||||||||||||
44 | |||||||||||||||||
As of October 3, 2014, we had foreign tax credit carry-forwards of approximately $220, which expire, if unused in the years 2021-2023. | |||||||||||||||||
Deferred income tax assets and liabilities consist of the following: | |||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
September 27, | October 3, | ||||||||||||||||
2013 | 2014 | ||||||||||||||||
Domestic operations: | |||||||||||||||||
Deferred tax assets: | |||||||||||||||||
Deferred facilities rent charges | $ | 2,321 | $ | 1,946 | |||||||||||||
Deferred revenue | 1,840 | 2,084 | |||||||||||||||
Foreign tax credit carryforwards | 157 | 132 | |||||||||||||||
Alternative minimum tax credit carryforwards | 96 | 96 | |||||||||||||||
Accrued vacation | 426 | 487 | |||||||||||||||
Equity compensation | 48 | 16 | |||||||||||||||
Depreciation and amortization | 1,219 | 2,331 | |||||||||||||||
Other | 171 | 199 | |||||||||||||||
Net operating loss | 3,341 | 0 | |||||||||||||||
Deferred tax liabilities: | |||||||||||||||||
Prepaid expenses | (283 | ) | (313 | ) | |||||||||||||
481(a) adjustments | (230 | ) | 0 | ||||||||||||||
Undistributed earnings of foreign subsidiaries | (3,371 | ) | 0 | ||||||||||||||
Domestic net deferred tax assets | 5,735 | 6,978 | |||||||||||||||
Foreign operations: | |||||||||||||||||
Deferred tax assets: | |||||||||||||||||
Deferred benefits for uncertain positions | 0 | 0 | |||||||||||||||
Depreciation and other | 903 | 885 | |||||||||||||||
Deferred tax liabilities: | |||||||||||||||||
Depreciation and other | (258 | ) | (161 | ) | |||||||||||||
Foreign net deferred tax assets | 645 | 724 | |||||||||||||||
Domestic and foreign deferred tax assets | 6,380 | 7,702 | |||||||||||||||
Valuation allowances | (6,198 | ) | (7,374 | ) | |||||||||||||
Net deferred tax assets | $ | 182 | $ | 328 | |||||||||||||
We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense. For fiscal year 2014, we recognized an expense of $64 attributable to interest for uncertain tax positions. As of October 3, 2014 and September 27, 2013, we had $656 and $593 accrued, respectively for interest and penalties for uncertain tax positions. As of October 3, 2014, $874 of our total unrecognized tax benefits would favorably affect our effective tax rate if recognized. During 2014, we recorded an additional $51 of unrecognized tax benefits associated with certain intercompany transactions in foreign jurisdictions. We do not believe it is reasonably possible that the amount of unrecognized tax benefits will significantly change within the next 12 months due to changes in circumstances other than related to these intercompany transactions. We file income tax returns in the United States and various state, local, and foreign jurisdictions, and remain subject to examinations by these jurisdictions for fiscal years 2008 through 2014. | |||||||||||||||||
The aggregate change in the balance of gross unrecognized tax benefits, which excludes interest and penalties, is as follows: | |||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
September 27, | October 3, | ||||||||||||||||
2013 | 2014 | ||||||||||||||||
Balance, beginning of year | $ | 566 | $ | 563 | |||||||||||||
Increases related to tax positions taken during the current period | 183 | 43 | |||||||||||||||
Decreases related to expiration of the statute of limitations | (186 | ) | 0 | ||||||||||||||
Balance end of year | $ | 563 | $ | 606 | |||||||||||||
45 | |||||||||||||||||
In the fourth quarter of fiscal year 2013, we accrued a provision for income taxes on a portion of the undistributed earnings of our foreign subsidiaries based on our estimated future US cash needs that we anticipated would be funded through distributions from the foreign subsidiaries. We are subject to federal income and potentially foreign withholding taxes when the earnings are distributed. | |||||||||||||||||
In the second quarter of fiscal year 2014, we repatriated $1.2 million and $5.5 million from our subsidiaries in Sweden and the United Kingdom, respectively. There were no withholding taxes and the deferred tax liability that was established in fiscal year 2013 was reduced by the amount of the dividend. There was no impact on the fiscal year 2014 effective tax rate since the tax ramifications of this dividend were provided for in fiscal year 2013. | |||||||||||||||||
In the fourth quarter of fiscal year 2014, we reevaluated our position regarding future needs to repatriate foreign earnings and taking into consideration the net proceeds received from the sale of our headquarters facility, we now believe that there is a reasonable basis for reinvesting the undistributed earnings of our foreign subsidiaries for the foreseeable future. Therefore, the remaining deferred taxes previously provided for foreign subsidiary earnings in fiscal year 2013 have been reversed during fiscal year 2014. |
Note_4_Commitments_and_Conting
Note 4 - Commitments and Contingencies | 12 Months Ended | ||||||||||||
Oct. 03, 2014 | |||||||||||||
Notes to Financial Statements | |||||||||||||
Commitments and Contingencies Disclosure [Text Block] | 4. COMMITMENTS AND CONTINGENCIES | ||||||||||||
a. Commitments | |||||||||||||
As of October 3, 2014, we had various non-cancelable operating leases for facilities that expire at various dates through 2021 and certain leases for office equipment requiring annual payments as follows: | |||||||||||||
Fiscal Year Ending | Minimum | Less | Net Lease | ||||||||||
Lease | Sublease | Commitments | |||||||||||
Payments | Proceeds | ||||||||||||
2015 | $ | 10,300 | $ | 110 | $ | 10,190 | |||||||
2016 | 9,188 | 46 | 9,142 | ||||||||||
2017 | 7,017 | 0 | 7,017 | ||||||||||
2018 | 4,627 | 0 | 4,627 | ||||||||||
2019 | 4,548 | 0 | 4,548 | ||||||||||
Thereafter | 9,352 | 0 | 9,352 | ||||||||||
$ | 45,032 | $ | 156 | $ | 44,876 | ||||||||
Rental expense, excluding sublease income, was $10,072 and $10,570 for fiscal years 2013 and 2014, respectively. Sublease rental income for fiscal years 2013 and 2014 was $387 and $48, respectively. | |||||||||||||
On November 14, 2012, we, together with our United Kingdom subsidiary, Learning Tree International Limited, and Laxton Properties Limited (the “Landlord”) surrendered our lease dated March 19, 1999 for Learning Tree International Limited’s Education Center facility in London (“Euston House”), which had been due to run through January, 2019. Learning Tree International Limited had been subleasing certain floors of the Euston House location to third-party subtenants. In conjunction with the surrender, the subleases reverted to the Landlord and Learning Tree International Limited entered into four new leases with the Landlord for just the space we needed to run our operations in London. We are party to each of the four new leases as guarantor for our subsidiary’s obligations. The four leases each became effective as of November 14, 2012 and cover the total rentable area of Euston House’s (1) ground and basement floors; (2) first floor; (3) second floor; and (4) part of the sixth floor. The first three leases run through November 13, 2022 and the fourth lease for part of the sixth floor runs through August 23, 2014. The aggregate annual minimum rent of the leases is £1.4 million ($2.3 million USD), compared to the original gross minimum rent of £2.85 million offset by £1.5 million in sublease rents for a net of £1.35 million under the prior lease. In connection with the early surrender of the original lease, we paid the landlord a £2.0 million ($3.2 million USD) surrender payment, we were released from our asset retirement obligation, estimated at £1.9 million ($3.0 million USD), to restore the leasehold to original condition, and the £5.0 million ($8.1 million USD) deposit that was being held in escrow as security against our default on the rental payments was released to Learning Tree International Limited by the Landlord. Under the terms of the new leases, deposits totaling £1.7 million ($2.7 million USD) have been placed with the Landlord as security against our default on the rental payments under the leases. The net impact to net loss for our fiscal year 2013, taking into account the surrender payment, the release of the asset retirement obligation, and reversal of deferred rents was less than £0.1 million ($0.1 million USD). | |||||||||||||
46 | |||||||||||||
On February 12, 2014, we, together with our Canadian subsidiary, Learning Tree International Inc., amended and extended the lease for our Education Center and Corporate Offices in Ottawa, Canada, reducing our overall amount of space by approximately 31% and extending the term for an additional five years ending June 30, 2019. | |||||||||||||
On June 17, 2014, our Swedish subsidiary, Learning Tree International AB, entered into an agreement with Forvaltningsbolaget Marievik HB (“the Landlord”) | |||||||||||||
whereby Learning Tree International AB agreed to the Landlord’s request to terminate the Rental Lease between Learning Tree International AB and the Landlord (“the Prior Lease Agreement”) as of December 31, 2014 in exchange for the Landlord’s assistance in obtaining a lease for a comparable commercial facility in Stockholm, Sweden. In connection with this termination of the Prior Lease Agreement, the Landlord agreed to pay SEK 3.74 million (or approximately US$0.6 million), of which SEK 1.0 million (or approximately US $0.1 million) has been paid in advance, to Learning Tree International AB, and was recorded as deferred other income as of October 3, 2014, with the remaining amounts to be paid toward the cost of building renovations and toward the cost of moving to the new facility. The payments received from the Landlord for agreeing to an early lease termination will be recognized as income once Learning Tree International AB vacates the premise in the second quarter of fiscal year 2015. In addition, the Landlord will provide SEK 3.0 million in funding to a new landlord such that the new facility will have the same standards and functionality as Learning Tree International AB’s current facility. In the event that the move to the new facility is delayed, the Landlord will extend Learning Tree International AB’s lease for its existing facility until February 28, 2015. | |||||||||||||
On June 17, 2014, we, together with our Swedish subsidiary, Learning Tree International AB, signed a new lease agreement (“the New Lease”) for 1060 square meters of space with Vasakronan (“the New Landlord”) located at Stockholm Lindhagensgatan 126. A summary of the materials terms of the New Lease are as follows: | |||||||||||||
● | Term: | January 1, 2015 to December 31, 2019. | |||||||||||
● | Basic rent: | SEK 2.65 million per year (or approximately US $0.4 million per year) | |||||||||||
● | Basic Supplemental rent: | SEK 0.49 million per year (or approximately US $0.1 million per year) | |||||||||||
● | Security Deposit: | SEK 1.5 million (or approximately US $0.2 million) | |||||||||||
In September 2014, our French subsidiary Learning Tree International S.A. gave notice to its landlord of our intent to not allow the space lease to automatically extend another three years from March 31, 2015. We have subsequently negotiated a three month extension of the space lease until June 30, 2015. | |||||||||||||
b. Contingencies | |||||||||||||
Currently, and from time to time, we are involved in litigation incidental to the conduct of our business. We are not a party to any lawsuit or proceeding that, in the opinion of management, is likely to have a material adverse effect on our consolidated financial position or results of operations. |
Note_5_Stockholders_Equity
Note 5 - Stockholders' Equity | 12 Months Ended |
Oct. 03, 2014 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 5. STOCKHOLDERS’ EQUITY |
We did not purchase any shares of our common stock during fiscal years 2013 and 2014. We may make purchases of common stock in the future, but we have no commitments to do so. |
Note_6_StockBased_Compensation
Note 6 - Stock-Based Compensation | 12 Months Ended | ||||||||||||||||
Oct. 03, 2014 | |||||||||||||||||
Notes to Financial Statements | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 6. STOCK-BASED COMPENSATION | ||||||||||||||||
Effective January 23, 2007, our stockholders approved the 2007 Equity Incentive Plan (our “2007 Plan”). Our 1999 Stock Option Plan terminated upon shareholder approval of our 2007 Plan, and no further grants of awards can be made under that plan although the rights of holders of options previously granted and outstanding under that plan were not affected. Our 2007 Plan is administered by the Compensation and Stock Option Committee of our Board of Directors. Our 2007 Plan permits the granting of nonqualified stock options, incentive stock options, stock appreciation rights (or SARs), restricted stock, restricted stock units, performance units and performance shares to our employees, officers, directors and consultants in an amount up to an aggregate of 1,000,000 shares of common stock. Option awards have been granted with an exercise price equal to the market price of our stock at the date of grant and generally vest one third per year over three years (in some instances, subject to achieving certain financial targets in the year with respect to which they are granted) and have five-year contractual terms. However, the exercise price, vesting schedule and period required for full exercisability of the options is at the discretion of the Compensation and Stock Option Committee of our Board of Directors. We recognize compensation cost for these awards on a straight-line basis (or, on a graded basis for those options with performance conditions) over the requisite service period for the entire award, which is equal to the vesting period. We have a policy of issuing new shares of common stock to satisfy share option exercises. | |||||||||||||||||
The fair value of each option award was estimated on the date of grant using a Black-Scholes option-pricing formula. Expected volatilities were based on the historical volatility of our stock measured over a period commensurate with the expected life of granted stock options. The expected term of options represented the period of time that options granted were expected to be outstanding and was determined based on the simplified method as discussed in ASC 718 “Compensation-Stock Compensation”, as we do not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The risk-free interest rate assumption was based on the U.S. Treasury rate at the date of the grant, which most closely resembled the expected life of options. The expected dividend yield was 0%. | |||||||||||||||||
47 | |||||||||||||||||
A summary of option activity under the 2007 Plan and previous plans during fiscal years 2013 and 2014 is presented | |||||||||||||||||
below: | |||||||||||||||||
Options | Shares | Weighted- | Weighted- | Aggregate | |||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
Outstanding at September 28, 2012 | 24,000 | $ | 17.97 | 0.2 | $ | 0 | |||||||||||
Options granted | 0 | $ | 0 | ||||||||||||||
Options exercised | 0 | $ | 0 | ||||||||||||||
Options forfeited, expired and unearned | (24,000 | ) | $ | 17.97 | |||||||||||||
Outstanding at September 27, 2013 | 0 | $ | 0 | 0 | $ | 0 | |||||||||||
Options granted | 200,000 | $ | 3.85 | 9 | $ | 0 | |||||||||||
Options exercised | 0 | $ | 0 | ||||||||||||||
Options forfeited, expired and unearned | 0 | $ | 0 | ||||||||||||||
Outstanding at October 3, 2014 | 200,000 | $ | 3.85 | 9 | $ | 0 | |||||||||||
Vested and expected to vest at October 3, 2014 | 200,000 | $ | 3.85 | 9 | $ | 0 | |||||||||||
Exercisable at October 3, 2014 | 50,000 | $ | 3.85 | 9 | |||||||||||||
There were no options granted in fiscal year 2013. There were no options exercised in fiscal years 2013 or 2014. | |||||||||||||||||
Stock-based compensation expense related to employee stock options is included in cost of revenues and operating expenses consistent with the respective employee salary costs. These costs totaled $0 and $68 for fiscal years 2013 and 2014, respectively. As stock-based compensation expense recognized in the consolidated statements of operations and comprehensive income (loss) is based on awards ultimately expected to vest, it has been reduced for estimated pre-vesting forfeitures. Prior to fiscal year 2013, we reduced the estimated forfeiture rate for executive personnel to zero. | |||||||||||||||||
If the non-vested stock options fully vest, they will result in future expense of $0.2 million over a weighted-average remaining amortization period of three years. The total income tax benefit relating to stock options and recognized in the consolidated statements of operations and comprehensive income was $0 for both fiscal years 2013 and 2014. | |||||||||||||||||
Restricted Stock | |||||||||||||||||
As noted above, our 2007 Plan permits us to grant shares of restricted stock. Grants of restricted stock awarded under the plan entitle the shareholder to all rights of common stock ownership except that the shares may not be sold, transferred, pledged, exchanged or otherwise disposed of during the restriction period, and may be repurchased by us for nominal consideration if the employee ceases to be employed by us during that period. The restriction period is determined by the Compensation and Stock Option Committee of our Board of Directors. | |||||||||||||||||
We did not issue any shares of restricted stock during fiscal years 2013 and 2014 and there were no shares of restricted stock outstanding as of the end of fiscal years 2013 and 2014. | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
As noted above, our 2007 Plan permits us to grant restricted stock units (RSU’s), which entitle holders to receive shares of common stock upon vesting. During fiscal year 2012, we granted 120,285 RSU’s to certain employees and outside directors. These stock units are subject to vesting requirements over three years. When originally granted, these RSU’s were also subject to certain financial performance targets during fiscal year 2012. However, in June 2012, the Board of Directors removed the financial performance targets and the RSU’s only remain subject to the three year vesting schedule. During fiscal year 2013, we granted 54,685 RSU’s to the outside directors. These stock units were subject to the three year vesting schedule. The compensation for the outside directors was changed during fiscal year 2013 to eliminate further grants of RSU’s and to replace it with an increased cash retainer. Outside directors holding unvested RSU’s were given an option to voluntarily forfeit their unvested RSU’s and transition immediately to the increased cash retainer or wait until all of the RSU’s had vested before transitioning to the increased cash retainer. All of the outside directors impacted by this change elected to voluntarily forfeit their unvested RSU’s. During fiscal year 2014, we did not grant any RSU’s. | |||||||||||||||||
48 | |||||||||||||||||
A summary of the restricted stock unit activity is as follows: | |||||||||||||||||
Restricted Stock | Weighted Average | ||||||||||||||||
Units | Grant Date Fair | ||||||||||||||||
Value | |||||||||||||||||
Nonvested at September 28, 2012 | 102,949 | $ | 7.86 | ||||||||||||||
Granted | 54,685 | $ | 5.49 | ||||||||||||||
Vested | (45,858 | ) | $ | 8.56 | |||||||||||||
Forfeited | (102,334 | ) | $ | 6.33 | |||||||||||||
Nonvested at September 27, 2013 | 9,442 | $ | 7.29 | ||||||||||||||
Granted | 0 | $ | 0 | ||||||||||||||
Vested | (5,742 | ) | $ | 7.93 | |||||||||||||
Forfeited | (1,890 | ) | $ | 6.31 | |||||||||||||
Nonvested at October 3, 2014 | 1,810 | $ | 6.31 | ||||||||||||||
For fiscal years 2013 and 2014 we recognized $69 and $110, respectively, in compensation costs related to RSU’s. If the non-vested RSU’s fully vest, they will result in future expense of less than $0.1 million over a weighted-average remaining amortization period of 1.2 years. |
Note_7_Employee_Benefit_Plans
Note 7 - Employee Benefit Plans | 12 Months Ended |
Oct. 03, 2014 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | 7. EMPLOYEE BENEFIT PLANS |
We have adopted a defined contribution plan for the benefit of our domestic employees who have met the eligibility requirements. The Learning Tree International 401(k) Plan (our “401(k) Plan”) is a profit-sharing plan qualifying under Section 401(k) of the Internal Revenue Code. | |
Qualified employees may elect to contribute to our 401(k) Plan on a pre-tax basis. The maximum amount of employee contribution is subject only to statutory limitations. Beginning April 1, 2009 we made contributions at a rate of 50% of the first 2% of employee compensation contributed. Starting September 30, 2011 we made contributions at a rate of 30% of the first 6% of employee compensation contributed. We contributed $324 and $53, net of forfeitures of $50 and $208, to our 401(k) Plan for fiscal years 2013 and 2014, respectively. | |
We have adopted or participate in country-sponsored defined contribution plans for the benefit of our employees of all of our foreign subsidiaries. Contributions to these plans are subject to tenure and compensation level criteria, as well as certain limitations. For fiscal years 2013 and 2014 our cost for these plans was approximately $591 and $587, respectively. |
Note_8_Income_Loss_Per_Share
Note 8 - Income (Loss) Per Share | 12 Months Ended | ||||||||
Oct. 03, 2014 | |||||||||
Notes to Financial Statements | |||||||||
Earnings Per Share [Text Block] | 8. INCOME (LOSS) PER SHARE | ||||||||
Income (loss) per share—basic is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Income (loss) per share—diluted includes the dilutive effect, if any, of nonvested restricted stock grants, nonvested restricted stock units and of outstanding options to purchase common stock, using the treasury stock method. For fiscal years 2013 and 2014, | |||||||||
0 and 200,000 stock options, respectively, were anti-dilutive and excluded from the income (loss) per share—diluted calculation. | |||||||||
49 | |||||||||
The following table sets forth the calculation of basic and diluted income (loss) per share: | |||||||||
Fiscal Year Ended | |||||||||
September 27, | October 3, | ||||||||
2013 | 2014 | ||||||||
Numerator: | |||||||||
Net income (loss) | $ | (8,719 | ) | $ | 1 | ||||
Denominator: | |||||||||
Weighted-average shares outstanding - basic | 13,210 | 13,221 | |||||||
Dilutive effect of stock options, restricted stock and restricted stock units | - | 3 | |||||||
Weighted-average shares outstanding - diluted | 13,210 | 13,224 | |||||||
Income Per Share: | |||||||||
Income (loss) per common share - basic | $ | (0.66 | ) | $ | 0 | ||||
Income (loss) per common share - diluted | $ | (0.66 | ) | $ | 0 |
Note_9_Operating_Segment_Infor
Note 9 - Operating Segment Information | 12 Months Ended | ||||||||
Oct. 03, 2014 | |||||||||
Notes to Financial Statements | |||||||||
Segment Reporting Disclosure [Text Block] | 9. OPERATING SEGMENT INFORMATION | ||||||||
Our worldwide operations involve the design and delivery of instructor-led classroom training courses and related services to business and government organizations. The training and education we offer is presented by our instructors in a virtually identical manner in every country in which we operate, regardless of whether presented in leased classroom space or external facilities, of the content of the class being taught, the language of the presentation or the printed course materials or of the location or method of distribution. We did not have sales to any one commercial customer or government agency that amounted to 10% or more of our revenues in fiscal years 2013 or 2014. | |||||||||
50 | |||||||||
We conduct and manage our business globally, and our management makes financial decisions and allocates resources based on the information we receive from our internal management systems. Our reportable segments are: the United States, Canada, the United Kingdom, France, Sweden and Japan. As a measure of segment performance, our Chief Operating Decision Maker reviews revenues and gross profit for each segment. Intersegment sales were $4,049 and $5,175 in fiscal years 2013 and 2014, respectively. Summarized financial information by reportable segment for fiscal years 2013 and 2014, is as follows: | |||||||||
Fiscal Year Ended | |||||||||
September 27, | October 3, | ||||||||
2013 | 2014 | ||||||||
Revenues: | |||||||||
United States | $ | 57,093 | $ | 59,452 | |||||
Canada | 12,710 | 11,113 | |||||||
North America Subtotal: | 69,803 | 70,565 | |||||||
United Kingdom | 27,371 | 28,009 | |||||||
France | 11,107 | 11,191 | |||||||
Sweden | 6,484 | 6,239 | |||||||
Japan | 2,045 | 2,244 | |||||||
Total | $ | 116,810 | $ | 118,248 | |||||
Gross profit: | |||||||||
United States | $ | 23,102 | $ | 22,640 | |||||
Canada | 7,515 | 6,547 | |||||||
North America Subtotal: | 30,617 | 29,187 | |||||||
United Kingdom | 12,271 | 11,898 | |||||||
France | 5,510 | 5,362 | |||||||
Sweden | 4,026 | 3,686 | |||||||
Japan | 1,376 | 1,541 | |||||||
Total | $ | 53,800 | $ | 51,674 | |||||
Depreciation and amortization: | |||||||||
United States | $ | 3,695 | $ | 3,223 | |||||
Canada | 330 | 298 | |||||||
North America Subtotal: | 4,025 | 3,521 | |||||||
United Kingdom | 1,278 | 1,448 | |||||||
France | 524 | 526 | |||||||
Sweden | 144 | 125 | |||||||
Japan | 70 | 60 | |||||||
Total | $ | 6,041 | $ | 5,680 | |||||
51 | |||||||||
Fiscal Year Ended | |||||||||
September 27, | October 3, | ||||||||
2013 | 2014 | ||||||||
Total assets: | |||||||||
United States | $ | 30,064 | $ | 36,565 | |||||
Canada | 4,111 | 3,717 | |||||||
North America Subtotal: | 34,175 | 40,282 | |||||||
United Kingdom | 21,077 | 14,597 | |||||||
France | 5,831 | 5,109 | |||||||
Sweden | 6,170 | 4,541 | |||||||
Japan | 1,709 | 1,671 | |||||||
Total | $ | 68,962 | $ | 66,200 | |||||
Long-lived assets: | |||||||||
United States | $ | 10,874 | $ | 4,901 | |||||
Canada | 666 | 456 | |||||||
North America Subtotal: | 11,540 | 5,357 | |||||||
United Kingdom | 4,505 | 3,398 | |||||||
France | 1,051 | 637 | |||||||
Sweden | 279 | 158 | |||||||
Japan | 154 | 86 | |||||||
Total | $ | 17,529 | $ | 9,636 | |||||
Capital expenditures: | |||||||||
United States | $ | 1,821 | $ | 864 | |||||
Canada | 184 | 137 | |||||||
North America Subtotal: | 2,005 | 1,001 | |||||||
United Kingdom | 133 | 415 | |||||||
France | 180 | 148 | |||||||
Sweden | 41 | 24 | |||||||
Japan | 92 | 5 | |||||||
Total | $ | 2,451 | $ | 1,593 |
Note_10_Deferred_Facilities_Re
Note 10 - Deferred Facilities Rent and Other | 12 Months Ended | ||||||||
Oct. 03, 2014 | |||||||||
Notes to Financial Statements | |||||||||
Deferred Facilities Rent and Other [Text Block] | 10. DEFERRED FACILITIES RENT AND OTHER | ||||||||
The following tables show details of the following line items in our consolidated balance sheets. | |||||||||
Current Portion of Deferred Facilities Rent and Other | |||||||||
Fiscal Year Ended | |||||||||
September 27, | October 3, | ||||||||
2013 | 2014 | ||||||||
Deferred rent | $ | 965 | $ | 1,050 | |||||
LA lease liability | 634 | 658 | |||||||
Sublease loss accruals | 64 | 0 | |||||||
$ | 1,663 | $ | 1,708 | ||||||
52 | |||||||||
Deferred Facilities Rent and Other | |||||||||
Fiscal Year Ended | |||||||||
September 27, | October 3, | ||||||||
2013 | 2014 | ||||||||
Deferred rent | $ | 4,362 | $ | 3,443 | |||||
LA lease liability | 398 | 301 | |||||||
$ | 4,760 | $ | 3,744 |
Note_11_Valuation_and_Qualifyi
Note 11 - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||
Oct. 03, 2014 | |||||||||
Notes to Financial Statements | |||||||||
Valuation and Qualifying Accounts [Text Block] | 11. VALUATION AND QUALIFYING ACCOUNTS | ||||||||
Activity with respect to our provision for doubtful accounts is summarized as follows: | |||||||||
September 27, | 3-Oct | ||||||||
2013 | 2014 | ||||||||
Beginning balance | $ | 235 | $ | 180 | |||||
Provision for doubtful accounts | 240 | 118 | |||||||
Charges against allowance | (290 | ) | (135 | ) | |||||
Other | (5 | ) | 5 | ||||||
Ending balance | $ | 180 | $ | 168 | |||||
Activity with respect to our valuation allowance for deferred tax assets is summarized as follows: | |||||||||
September 27, | 3-Oct | ||||||||
2013 | 2014 | ||||||||
Beginning balance | $ | 6,355 | $ | 6,198 | |||||
Provisions | 0 | 1,212 | |||||||
Charges against allowance | (157 | ) | (36 | ) | |||||
Ending balance | $ | 6,198 | $ | 7,374 | |||||
Activity with respect to our Los Angeles lease liability is summarized as follows: | |||||||||
September 27, | 3-Oct | ||||||||
2013 | 2014 | ||||||||
Beginning balance | $ | 0 | $ | 1,032 | |||||
Provisions | 1,522 | 529 | |||||||
Charges against allowance | (490 | ) | (602 | ) | |||||
Ending balance | $ | 1,032 | $ | 959 |
Note_12_Related_Party_Transact
Note 12 - Related Party Transactions | 12 Months Ended |
Oct. 03, 2014 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 12. RELATED PARTY TRANSACTIONS |
Dr. David C. Collins, our Chairman and Chief Executive Officer, oversees (with the concurrence of the Nominating and Governance Committee of our Board of Directors) a charitable program under which we donated $115 and $209 during fiscal years 2013 and 2014, respectively, to charitable organizations. |
Note_13_Quarterly_Data_Unaudit
Note 13 - Quarterly Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Oct. 03, 2014 | |||||||||||||||||
Notes to Financial Statements | |||||||||||||||||
Quarterly Financial Information [Text Block] | 13. QUARTERLY DATA (UNAUDITED) | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||
December 28, | March 29, | June 28, | September 27, | ||||||||||||||
2012 | 2013 | 2013 | 2013 | ||||||||||||||
Revenues | $ | 33,290 | $ | 26,933 | $ | 28,958 | $ | 27,629 | |||||||||
Cost of revenues | 16,421 | 14,859 | 16,141 | 15,589 | |||||||||||||
Gross profit | 16,869 | 12,074 | 12,817 | 12,040 | |||||||||||||
Operating expenses: | |||||||||||||||||
Course development | 2,101 | 1,930 | 1,998 | 1,812 | |||||||||||||
Sales and marketing | 7,805 | 7,312 | 6,764 | 6,735 | |||||||||||||
General and administrative | 8,327 | 6,667 | 5,043 | 5,492 | |||||||||||||
Total operating expenses | 18,233 | 15,909 | 13,805 | 14,039 | |||||||||||||
Income (loss) from operations before other operating items | (1,364 | ) | (3,835 | ) | (988 | ) | (1,999 | ) | |||||||||
Other operating items | 19 | 2 | 1 | (76 | ) | ||||||||||||
Income (loss) from operations | (1,345 | ) | (3,833 | ) | (987 | ) | (2,075 | ) | |||||||||
Other income, net | (38 | ) | 204 | 31 | (232 | ) | |||||||||||
Income (loss) before provision (benefit) for income taxes | (1,383 | ) | (3,629 | ) | (956 | ) | (2,307 | ) | |||||||||
Provision (benefit) for income taxes | 33 | 386 | 123 | (98 | ) | ||||||||||||
Net income (loss) | $ | (1,416 | ) | $ | (4,015 | ) | $ | (1,079 | ) | $ | (2,209 | ) | |||||
Income (loss) per common share - basic | $ | (0.11 | ) | $ | (0.30 | ) | $ | (0.08 | ) | $ | (0.17 | ) | |||||
Income (loss) per common share - diluted | $ | (0.11 | ) | $ | (0.30 | ) | $ | (0.08 | ) | $ | (0.17 | ) | |||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||
January 3, | March 28, | June 27, | October 3, | ||||||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||||||
Revenues | $ | 32,022 | $ | 25,004 | $ | 28,759 | $ | 32,463 | |||||||||
Cost of revenues | 17,348 | 15,711 | 16,132 | 17,383 | |||||||||||||
Gross profit | 14,674 | 9,293 | 12,627 | 15,080 | |||||||||||||
Operating expenses: | |||||||||||||||||
Course development | 1,937 | 1,839 | 1,950 | 1,920 | |||||||||||||
Sales and marketing | 6,156 | 6,195 | 6,283 | 6,887 | |||||||||||||
General and administrative | 5,633 | 5,571 | 7,086 | 6,142 | |||||||||||||
Total operating expenses | 13,726 | 13,605 | 15,319 | 14,949 | |||||||||||||
Income (loss) from operations before other operating items | 948 | (4,312 | ) | (2,692 | ) | 131 | |||||||||||
Other operating items | - | 12 | - | 6,310 | |||||||||||||
Income (loss) from operations | 948 | (4,300 | ) | (2,692 | ) | 6,441 | |||||||||||
Other income, net | (36 | ) | (59 | ) | 22 | (2 | ) | ||||||||||
Income (loss) before provision (benefit) for income taxes | 912 | (4,359 | ) | (2,670 | ) | 6,439 | |||||||||||
Provision (benefit) for income taxes | 183 | 244 | 76 | (182 | ) | ||||||||||||
Net income (loss) | $ | 729 | $ | (4,603 | ) | $ | (2,746 | ) | $ | 6,621 | |||||||
Income (loss) per common share - basic | $ | 0.06 | $ | (0.35 | ) | $ | (0.21 | ) | $ | 0.5 | |||||||
Income (loss) per common share - diluted | $ | 0.06 | $ | (0.35 | ) | $ | (0.21 | ) | $ | 0.5 | |||||||
We use the 52/53-week fiscal year method to better align our external financial reporting with the manner in which we operate our business. Under this method, each fiscal quarter ends on the Friday closest to the end of the calendar quarter. Since all courses have a duration of five days or less, and all courses begin and end within the same calendar week, under the 52/53 week fiscal year method all revenues and related direct costs for each course event are recognized in the week and the fiscal quarter in which the event takes place. In most years, including fiscal year 2013, each fiscal quarter has 13 weeks; however, fiscal year 2014 has 53 weeks, with 14, 12, 13, and 14 weeks in our first, second, third and fourth quarters, respectively. | |||||||||||||||||
54 | |||||||||||||||||
In our fourth quarter of fiscal year 2014, we sold and leased back for one year, with options for two six-month extensions, our corporate headquarters, which is a 38,500 square foot office facility that we currently use for our corporate headquarters, as well as the sales, administrative and operations groups of our United States subsidiary. The sale and the leaseback were accounted for as separate transactions based on their respective terms since the lease was determined to be minor. As such, we recognized a gain on the sale of $6.3 million which is shown on the other operating items line of the quarterly data tables. |
Note_14_Restructing_Activity
Note 14 - Restructing Activity | 12 Months Ended | ||||||||||||
Oct. 03, 2014 | |||||||||||||
Notes to Financial Statements | |||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | 14. RESTRUCTURING ACTIVITY | ||||||||||||
In September 2012, we announced a worldwide reduction in force involving approximately 40 employees and recorded a $1.3 million charge for employee severance and accelerated depreciation of leasehold improvements. In the first quarter of fiscal year 2013 we closed the Los Angeles, CA office facility. The closure of the office in Los Angeles completed the move of corporate functions to the Reston, VA corporate headquarters. In fiscal 2013, we recorded a restructuring charge of $1.3 million for the estimated liability associated with future rentals due under the property lease as of the cease use date and for employee severance costs for those employees who chose not to relocate to our offices in Virginia. The fair value of the lease liability at the cease use date was determined based on the remaining cash flows for lease rentals, and minimum lease payments, reduced by estimated sublease rentals, discounted using a credit adjusted risk free rate;. In June 2014, we re-evaluated the estimated sublease rentals as we have been unable to find a subtenant for the facility. As a result, we recorded an additional $0.5 million restructuring charge in our third quarter of fiscal year 2014. | |||||||||||||
Personnel | Facilities | Total | |||||||||||
Worldwide reduction in force | $ | 1,100 | $ | 0 | $ | 1,100 | |||||||
Accelerated depreciation leasehold improvements | 0 | 200 | 200 | ||||||||||
Balance at September 28, 2012 | 1,100 | 200 | 1,300 | ||||||||||
Additions: | |||||||||||||
Los Angeles, CA reduction in force | 200 | 0 | 200 | ||||||||||
Accelerated depreciation leasehold improvements | 0 | 400 | 400 | ||||||||||
Contractual lease payments net of estimated sublease receipts | 0 | 1,500 | 1,500 | ||||||||||
Deferred rent credits | 0 | (850 | ) | (850 | ) | ||||||||
Accretion expense | 0 | 50 | 50 | ||||||||||
200 | 1,100 | 1,300 | |||||||||||
Reductions: | |||||||||||||
Severance payouts | (1,270 | ) | 0 | (1,270 | ) | ||||||||
Accelerated depreciation leasehold improvements | 0 | (600 | ) | (600 | ) | ||||||||
Rent payments net of deferred rent | 0 | (300 | ) | (300 | ) | ||||||||
(1,270 | ) | (900 | ) | (2,170 | ) | ||||||||
Balance at September 27, 2013 | $ | 30 | $ | 400 | $ | 430 | |||||||
Additions: | |||||||||||||
Additional lease charge - Los Angeles, CA | 0 | 500 | 500 | ||||||||||
Accretion expense | 0 | 100 | 100 | ||||||||||
0 | 600 | 600 | |||||||||||
Reductions: | |||||||||||||
Severance payouts | (30 | ) | 0 | (30 | ) | ||||||||
Rent payments net of deferred rent | 0 | (400 | ) | (400 | ) | ||||||||
(30 | ) | (400 | ) | (430 | ) | ||||||||
Balance at October 3, 2014 | $ | 0 | $ | 600 | $ | 600 |
Note_15_Subsequent_Events
Note 15 - Subsequent Events | 12 Months Ended |
Oct. 03, 2014 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 15. SUBSEQUENT EVENTS |
We have evaluated all events subsequent to the balance sheet date of October 3, 2014 and have determined there are no subsequent events that require disclosure, except as noted below. | |
On November 5, 2014, we announced that the Company was seeking a strategic transaction involving our French subsidiary, Learning Tree International SA, which transaction may include the sale of the French company or its business. We have notified the employees of our French subsidiary, as required under French law, of the possibility of a strategic transaction. The lease on our Education Center and office in Paris expires at the end of June 2015. |
Significant_Accounting_Policie
Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||
Oct. 03, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Nature of Business [Policy Text Block] | a. Nature of the Business | ||||||||
Learning Tree International, Inc. and subsidiaries (“we,” “us,” or “our”) develop, market, and deliver a broad proprietary library of instructor-led classroom courses that are designed to meet the professional development needs of information technology (“IT”) professionals and managers worldwide. These courses are delivered primarily at our leased education centers located in the United States, the United Kingdom, Canada, France, Sweden and Japan. Such course events are also conducted in hotel and conference facilities and at customer sites throughout the world. Approximately 90% of our course titles are also available to individuals located worldwide through Learning Tree AnyWare™, our patent-pending live online learning interface that allows individuals at any location to attend a live instructor-led Learning Tree class via the Internet. Our courses provide both breadth and depth of education across a wide range of technical and management disciplines, including operating systems, databases, computer networks, computer and network security, web development, programming languages, software engineering, open source applications, project management, business skills, and leadership and professional development. | |||||||||
We follow a 52- or 53-week fiscal year, with our quarter-end dates on the Friday nearest the end of the calendar quarter and our year-end dates on the Friday nearest the end of September. Accordingly, our fiscal year 2013 ended on September 27, 2013, and our fiscal year 2014 ended on October 3, 2014. Thus, these consolidated financial statements report our consolidated financial position as of September 27, 2013, and October 3, 2014 and the related consolidated statements of operations and comprehensive income (loss), stockholders’ equity and cash flows for the fiscal years ended September 27, 2013 and October 3, 2014. Fiscal year 2013 was a 52-week year, while fiscal year 2014 was a 53-week year. | |||||||||
Certain items in the consolidated financial statements have been reclassified to conform to the current presentation. | |||||||||
Consolidation, Policy [Policy Text Block] | b. Principles of Consolidation | ||||||||
The accompanying consolidated financial statements include the accounts of Learning Tree International, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated. The following is a list of our subsidiaries: | |||||||||
Learning Tree International USA, Inc. (U.S.) | |||||||||
Learning Tree International, K.K. (Japan) | |||||||||
Learning Tree International Ltd. (United Kingdom) | |||||||||
Learning Tree International S.A. (France) | |||||||||
Learning Tree International AB (Sweden) | |||||||||
Learning Tree International Inc. (Canada) | |||||||||
Advanced Technology Marketing, Inc. (U.S.) | |||||||||
AnyWare Live, Inc. (U.S.) | |||||||||
Revenue Recognition, Policy [Policy Text Block] | c. Revenue Recognition and Accounts Receivable | ||||||||
Our revenues are received from business entities and government agencies for the professional training of their employees. Course events range in length from one to five days, and average approximately three and a half days. As stated above, we follow a 52- or 53-week fiscal year. This method is used in order to better align our external financial reporting with the way we operate our business. Since all courses have a duration of five days or less, and all courses begin and end within the same calendar week, under the 52- or 53-week fiscal year method all revenues and related direct costs for each course event are recognized in the week and the fiscal quarter in which the event takes place. | |||||||||
We offer our customers a multiple-course sales discount referred to as a “Learning Tree Training Passport”. A Learning Tree Training Passport allows an individual Passport holder to attend up to a specified number of Learning Tree courses over a one or two-year period for a fixed price. During fiscal year 2012, we re-introduced for a limited time the Unlimited Training Passport which allowed an individual Passport holder to attend as many courses as they wanted by June 30, 2013. This Unlimited Passport program ended on June 30, 2013. For a Training Passport, the amount of revenue recognized for each attendance in a course is based upon the selling price of the Training Passport, the list price of the course taken, the weighted average list price of all courses taken and the estimated average number of courses Passport holders will actually attend. Upon expiration of each individual Training Passport, we record the difference, if any, between the revenues previously recognized and that specific Training Passport’s total invoiced price. The estimated attendance rate is based upon the historical experience of the average number of course events that Training Passport holders have been attending. The actual Training Passport attendance rate is reviewed at least semi-annually, and if the Training Passport attendance rates change, the revenue recognition rate for active Training Passports and for Training Passports sold thereafter is adjusted prospectively. | |||||||||
We believe it is appropriate to recognize revenues on this basis in order to most closely match revenue and related costs, as the substantial majority of our Passport holders do not attend the maximum number of course events permitted under their Training Passport. We believe that the use of recent historical data is reasonable and appropriate because of the relative stability of the average actual number of course events attended by Passport holders. | |||||||||
The average attendance rate for all expired Training Passports has closely approximated the estimated rate we utilize. Although we have seen no material changes in the historical rates as the number of course titles has changed, we monitor such potential effects. In general, determining the estimated average number of course events that will be attended by a Training Passport holder is based on historical trends that may not continue in the future. These estimates could differ in the near term from amounts used in arriving at the reported revenue. If the estimates are wrong, we would record the difference between the revenues previously recognized for that Training Passport and the Training Passport selling price upon expiration of that Training Passport. Thus, the timing of revenue recognition may be affected by an inaccurate estimation, but the inaccuracy would have no effect on the aggregate revenue recognized over the one- to two-year life of each Training Passport. | |||||||||
For Passport products for which historical utilization data is not available, we assume that the estimated average number of courses to be attended is equal to the number of courses available on the Passport. For the Unlimited Training Passport program, we utilize historical data to estimate the expected number of courses that would be attended. Assumed utilization rates may be revised in future periods after sufficient time has passed to amass additional historical trends. | |||||||||
In addition to our Learning Tree Training Passports, we also offer a multiple-course sales discount referred to as Learning Tree Training Vouchers. With Learning Tree Training Vouchers, a customer buys the right to send a specified number of attendees to Learning Tree courses over a six to twelve-month period for a fixed price. Revenue is recognized on a pro rata basis for each attendance. For the majority of Training Vouchers with unused seats at the expiration of the Voucher, we record the pro rata selling price of the expired unused seats as revenue. At times we make a business decision to extend a Training Voucher beyond the normal twelve month expiration date. Training Vouchers purchased under government rate schedules have no expiration date. | |||||||||
Trade accounts receivable are reduced by an allowance for amounts that may become uncollectible in the future. We use estimates in determining the allowance for doubtful accounts receivable, based on our analysis of various factors, including our historical collection experience, current trends, specific identification of invoices which are considered doubtful, and a percentage of our past due accounts receivable. These estimates could differ from actual collection experience and are subject to adjustment. Our trade accounts receivable are written off when they are deemed uncollectible. | |||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | d. Stock-Based Compensation | ||||||||
We estimate the fair value of share-based option awards on the date of grant using an option-pricing model. We estimate the fair value of share-based restricted stock units and restricted stock grants using the closing price of our stock on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our consolidated statements of operations and comprehensive income (loss). Our determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by assumptions regarding a number of variables, including our expected stock price volatility, expected term, dividend yield and risk-free interest rates. | |||||||||
We analyzed our historical volatility to estimate the expected volatility. The risk-free interest rate assumption is based on the U.S. Treasury rate at the date of grant, which most closely resembles the expected life of our options. The estimated expected life represents the weighted-average period the stock options are expected to remain outstanding and has been determined based on the simplified method under Accounting Standards Codification (“ASC”) 718. We do not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. | |||||||||
As stock-based compensation expense recognized in the consolidated statements of operations is based on awards ultimately expected to vest, it has been reduced for estimated pre-vesting forfeitures. Forfeitures were estimated based on historical experience. The estimated forfeiture rates used for fiscal years 2013 and 2014 were zero. | |||||||||
In Process Research and Development, Policy [Policy Text Block] | e. Course Development Costs | ||||||||
Course development costs are charged to operations in the period incurred. | |||||||||
Advertising Costs, Policy [Policy Text Block] | f. Advertising | ||||||||
Advertising costs are charged to expense in the period incurred. Advertising costs totaled $1,057 and $814 in fiscal years 2013 and 2014, respectively. | |||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | g. Cash and Cash Equivalents, Available for Sale Securities, and Interest-bearing Investments | ||||||||
We consider highly liquid investments with remaining maturities of ninety days or less when purchased to be cash equivalents. | |||||||||
We classify certain of our investments in marketable securities as “available for sale”. We do not have any investments classified as “trading” or “held-to-maturity.” Our policy is to invest cash with issuers that have high credit ratings and to limit the amount of credit exposure to any one issuer. | |||||||||
As of October 3, 2014 and September 27, 2013, we had no available for sale securities. | |||||||||
Restricted interest-bearing investments at October 3, 2014 consisted of cash deposits of $2,297 (1,439 British Pounds), $209 (1,519 Swedish Kroner) and $725 which were pledged as collateral to secure our obligations under leases for education center facilities located in the United Kingdom, Sweden, and the United States, respectively. This compares to restricted interest-bearing investments of cash deposits of $2,725 (1,689 British Pounds) and $1,450 at September 27, 2013. The United Kingdom deposits are held in trust by the landlord with interest accruing to us and paid on an annual basis. The deposit will be released to us at the earlier of the end of the lease period or when certain financial ratios have been met. In the United States, the deposit is in a restricted account held by our bank and serves as collateral for a letter of credit issued to our landlord by our bank. | |||||||||
Selling, General and Administrative Expenses, Policy [Policy Text Block] | h. Marketing Expenses | ||||||||
Marketing expenses primarily include the external costs associated with the design, printing, postage, list rental and handling of direct mail advertising materials to be mailed in the future. These costs are charged to expense in the month in which the advertising materials are mailed since the benefit period for such costs is short and the amount of future benefit is not practically measurable. Marketing expenses for fiscal years 2013 and 2014 were $13,453 and $11,147 respectively. | |||||||||
Property, Plant and Equipment, Preproduction Design and Development Costs [Policy Text Block] | i. Equipment, Property and Leasehold Improvements | ||||||||
Equipment, property and leasehold improvements are recorded at cost and depreciated or amortized using the straight-line method over the following estimated useful lives: | |||||||||
Education and office equipment years | 3 | to | 5 | ||||||
Transportation equipment years | 4 | ||||||||
Accounting software years | 7 | ||||||||
Leasehold improvements years | 20 | or the life of the lease, if shorter | |||||||
Building years | 30 | ||||||||
Software amortization amounted to $1 and $1 in fiscal years 2013 and 2014, respectively. Total depreciation and amortization expense amounted to $6,041 and $5,680 in fiscal years 2013 and 2014, respectively. Costs of normal maintenance and repairs and minor replacements are normally charged to expense as incurred. In those instances where we have determined we are contractually obligated to incur recurring repairs and maintenance costs related to our leased facilities, a provision is made in the financial statements at the earlier of the date the expense is incurred or the date of the obligation. The costs of assets sold or retired are eliminated from the accounts along with the related accumulated depreciation or amortization, and any resulting gain or loss is included in the statements of operations and comprehensive income (loss). | |||||||||
In September 2014, we sold and leased back for one year, with options for two six-month extensions, our corporate headquarters, located at 1831 Michael Faraday Dr., Reston, Virginia, which is a 38,500 square foot office facility that we currently use for our corporate headquarters, as well as the sales, administrative and operations groups of our United States subsidiary. The Company’s carrying value of the headquarters property at the time of sale was approximately $3.6 million. | |||||||||
The sale and the leaseback were accounted for as separate transactions based on their respective terms since the lease is determined to be minor. As such, we recognized a gain on the sale of $6.3 million which is shown on the other operating items line of our consolidated statement of operations and comprehensive income (loss). | |||||||||
The fair value of a liability for an asset retirement obligation (“ARO”) associated with a leased facility is recorded as an asset (leasehold improvements) and a liability when there is a legal obligation associated with the retirement of a long-lived asset and the amount can be reasonably estimated. See also Note 2 relating to AROs. | |||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | j. Long-Lived Assets | ||||||||
We periodically review the carrying value of our long-lived assets, such as equipment, property and leasehold improvements for impairment or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In making such evaluations, we compare the expected future cash flows to the carrying amount of the assets. If the total of the expected future cash flows is less than the carrying amount of the assets, we are required to make estimates of the fair value of the long-lived assets in order to calculate the impairment loss equal to the difference between the fair value of the assets and their book value. We make significant assumptions and estimates in this process regarding matters that are inherently uncertain, such as estimating cash flows, remaining useful lives, discount rates and growth rates. The resulting cash flows are computed over an extended period of time, which subjects those assumptions and estimates to an even larger degree of uncertainty. While we believe that our estimates are reasonable, different assumptions regarding such cash flows could materially affect the valuation of long-lived assets. | |||||||||
Revenue Recognition, Deferred Revenue [Policy Text Block] | k. Deferred Revenues | ||||||||
Deferred revenues primarily relate to unearned revenues associated with Training Passports, Training Vouchers and advance payments received from customers for course events to be held in the future. | |||||||||
Comprehensive Income, Policy [Policy Text Block] | l. Comprehensive Income (loss) | ||||||||
We report comprehensive income in the consolidated statements of operations and comprehensive income (loss). Other comprehensive income (loss) represents changes in stockholders’ equity from non-owner sources and is comprised of foreign currency translation adjustments. At the end of fiscal year 2014, accumulated other comprehensive income (loss) consisted of cumulative foreign currency translation adjustments of $(325) compared to cumulative foreign currency translation adjustments of $(139) in fiscal year 2013. | |||||||||
Income Tax, Policy [Policy Text Block] | m. Income Taxes | ||||||||
We provide for income taxes under the provisions of Financial Accounting Standards Board (“FASB”) ASC 740, | |||||||||
Income Taxes | |||||||||
. Deferred income taxes result from temporary differences between the tax basis of assets and liabilities and the basis reported in our consolidated financial statements. Deferred tax assets and liabilities are determined based on the difference between financial statement and tax basis of assets and liabilities using enacted rates expected to be in effect during the year in which the differences reverse. Valuation allowances are provided against assets, including net operating losses, if it is anticipated that some or the entire asset may not be realized through future taxable earnings or implementation of tax planning strategies. | |||||||||
The tax effects of uncertain tax positions are recognized in the financial statements only if the position is more likely than not to be sustained on audit, based on the technical merits of the position. For tax positions meeting the more likely than not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized. It is our accounting policy to account for ASC 740-10 related penalties and interest as a component of the income tax provision in the consolidated statements of operations and comprehensive income (loss). | |||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | n. Foreign Currency | ||||||||
We translate the financial statements of our foreign subsidiaries from the local (functional) currencies to U.S. dollars. The rates of exchange at each fiscal year end are used for translating the assets and liabilities and the average monthly rates of exchange for each year are used for the consolidated statements of operations and comprehensive income (loss). Gains or losses arising from the translation of the foreign subsidiaries’ financial statements are included in the accompanying consolidated balance sheets as a separate component of stockholders’ equity. Gains or losses resulting from foreign currency transactions are included in the consolidated statements of operations and comprehensive income (loss). | |||||||||
To date, we have not sought to hedge the risk associated with fluctuations in currency exchange rates, and therefore we continue to be subject to such risk. | |||||||||
Deferred Charges, Policy [Policy Text Block] | o. Deferred Facilities Rent | ||||||||
Operating Lease Activities: | |||||||||
We lease education center and administrative office space under various operating lease agreements. Certain lease agreements include provisions that provide for cash incentives, graduated rent payments and other inducements. We recognize rent expense on a straight-line basis over the related terms of such leases. The value of lease incentives and/or inducements, along with the excess of the rent expense recognized over the rentals paid, is recorded as deferred facilities rent in the accompanying consolidated balance sheets. | |||||||||
Lease Termination Activities: | |||||||||
We record liabilities for costs that will be incurred under a contract without economic benefit at estimated fair value. We have vacated space in leased facilities subject to operating leases and recorded the estimated liability associated with future rentals at the cease-use date. The fair value of the liability at the cease-use date was determined based on the remaining cash flows for lease rentals, and minimum lease payments, reduced by estimated sublease rentals and certain subtenant reimbursements that could be reasonably obtained for the property, discounted using a credit-adjusted risk-free rate. The liability is adjusted for changes, if any, resulting from revisions to estimated cash flows after the cease-use date, measured using the original historical credit-adjusted risk-free rate. Changes due to the passage of time are recognized as an increase in the carrying amount of the liability and as accretion expense. | |||||||||
In September 2012, we announced our intention to close the Los Angeles, CA office facility effective December 2012. Our lease for these facilities runs through April 2016. We recorded a restructuring charge for the estimated liability associated with future rentals due under the property lease as of the cease use date. The fair value of the lease liability at the cease use date was determined based on the remaining cash flows for lease rentals, and minimum lease payments, reduced by estimated sublease rentals, discounted using a credit adjusted risk free rate. In addition, the estimated useful life of leasehold improvements was adjusted for the December 2012 closure date. In June 2014, we re-evaluated the estimated sublease rentals as we have been unable to find a subtenant for the facility. As a result, we recorded an additional $0.5 million restructuring charge in our third quarter of fiscal year 2014. | |||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | p. Fair Value of Financial Instruments | ||||||||
The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate their fair values because of the short-term nature of these instruments. | |||||||||
Use of Estimates, Policy [Policy Text Block] | |||||||||
q. Use of Estimates | |||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make judgments, estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | |||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | r. Recently Issued Accounting Pronouncements | ||||||||
In May 2014, the FASB | |||||||||
issued ASU | |||||||||
No. 2014-09, “ | |||||||||
Revenue from Contracts with Customers (Topic 606) | |||||||||
” | |||||||||
(“ASU 2014-09”). The standard is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is not permitted. Accordingly, the standard is effective for us on September 30, 2017 using either a full retrospective or a modified retrospective approach. We are currently evaluating which transition approach to use and the impact that the standard will have on our financial statements. | |||||||||
Other recent accounting pronouncements issued by the FASB (including the Emerging Issues Task Force), the American Institute of Certified Public Accountants and the SEC did not, or management believes will not, have a material impact on our present or future consolidated financial statements. |
Note_1_Nature_of_the_Business_1
Note 1 - Nature of the Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Oct. 03, 2014 | |||||||||
Notes Tables | |||||||||
Property, Plant and Equipment [Table Text Block] | Education and office equipment years | 3 | to | 5 | |||||
Transportation equipment years | 4 | ||||||||
Accounting software years | 7 | ||||||||
Leasehold improvements years | 20 | or the life of the lease, if shorter | |||||||
Building years | 30 |
Note_2_Asset_Retirement_Obliga1
Note 2 - Asset Retirement Obligations (Tables) | 12 Months Ended | ||||||||
Oct. 03, 2014 | |||||||||
Notes Tables | |||||||||
Schedule of Change in Asset Retirement Obligation [Table Text Block] | Fiscal Year Ended | ||||||||
September 27, | October 3, | ||||||||
2013 | 2014 | ||||||||
ARO liabilities balance, beginning of year | $ | 3,907 | $ | 2,004 | |||||
Liabilities incurred | 1,022 | 0 | |||||||
Accretion expense | 99 | 94 | |||||||
Liabilities satisfied | (29 | ) | 0 | ||||||
Settlement of ARO liability | (2,929 | ) | (186 | ) | |||||
Foreign currency translation | (66 | ) | (32 | ) | |||||
ARO liabilities balance, end of year | $ | 2,004 | $ | 1,880 |
Note_3_Income_Taxes_Tables
Note 3 - Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 03, 2014 | |||||||||||||||||
Notes Tables | |||||||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Fiscal Year Ended | ||||||||||||||||
September 27, | October 3, | ||||||||||||||||
2013 | 2014 | ||||||||||||||||
Domestic | $ | (9,581 | ) | $ | (1,258 | ) | |||||||||||
Foreign | 1,306 | 1,580 | |||||||||||||||
Total | $ | (8,275 | ) | $ | 322 | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Fiscal Year Ended | ||||||||||||||||
September 27, | October 3, | ||||||||||||||||
2013 | 2014 | ||||||||||||||||
Current tax provision (benefit): | |||||||||||||||||
U.S. Federal | $ | (201 | ) | $ | 2 | ||||||||||||
State | 253 | (81 | ) | ||||||||||||||
Foreign | 91 | 545 | |||||||||||||||
143 | 466 | ||||||||||||||||
Deferred tax provision: | |||||||||||||||||
U.S. Federal | 274 | (25 | ) | ||||||||||||||
State | 0 | 0 | |||||||||||||||
Foreign | 27 | (120 | ) | ||||||||||||||
301 | (145 | ) | |||||||||||||||
Provision for income taxes | $ | 444 | $ | 321 | |||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Fiscal Year Ended | ||||||||||||||||
September 27, | Effective | October 3, | Effective | ||||||||||||||
2013 | Tax rate | 2014 | Tax rate | ||||||||||||||
% | % | ||||||||||||||||
Income taxes at the U.S. statutory rate | $ | (2,896 | ) | 35 | % | $ | 112 | 35 | % | ||||||||
Equity compensation | 6 | (0.1 | ) | 171 | 53.1 | ||||||||||||
Penalties | 6 | (0.1 | ) | 0 | 0 | ||||||||||||
Other permanent differences | 356 | (4.3 | ) | 236 | 73.4 | ||||||||||||
Effects of foreign taxes and tax credits | 3,149 | (38.1 | ) | (1,235 | ) | (383.6 | ) | ||||||||||
State income taxes | (138 | ) | 1.7 | (63 | ) | (19.8 | ) | ||||||||||
Uncertain tax positions | 8 | (0.1 | ) | 115 | 35.6 | ||||||||||||
Change in valuation allowance | (174 | ) | 2.1 | 1,176 | 366 | ||||||||||||
Other | 127 | (1.5 | ) | (191 | ) | (59.7 | ) | ||||||||||
Total provision for income taxes | $ | 444 | (5.4 | ) | $ | 321 | 100 | % | |||||||||
% | |||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Fiscal Year Ended | ||||||||||||||||
September 27, | October 3, | ||||||||||||||||
2013 | 2014 | ||||||||||||||||
Domestic operations: | |||||||||||||||||
Deferred tax assets: | |||||||||||||||||
Deferred facilities rent charges | $ | 2,321 | $ | 1,946 | |||||||||||||
Deferred revenue | 1,840 | 2,084 | |||||||||||||||
Foreign tax credit carryforwards | 157 | 132 | |||||||||||||||
Alternative minimum tax credit carryforwards | 96 | 96 | |||||||||||||||
Accrued vacation | 426 | 487 | |||||||||||||||
Equity compensation | 48 | 16 | |||||||||||||||
Depreciation and amortization | 1,219 | 2,331 | |||||||||||||||
Other | 171 | 199 | |||||||||||||||
Net operating loss | 3,341 | 0 | |||||||||||||||
Deferred tax liabilities: | |||||||||||||||||
Prepaid expenses | (283 | ) | (313 | ) | |||||||||||||
481(a) adjustments | (230 | ) | 0 | ||||||||||||||
Undistributed earnings of foreign subsidiaries | (3,371 | ) | 0 | ||||||||||||||
Domestic net deferred tax assets | 5,735 | 6,978 | |||||||||||||||
Foreign operations: | |||||||||||||||||
Deferred tax assets: | |||||||||||||||||
Deferred benefits for uncertain positions | 0 | 0 | |||||||||||||||
Depreciation and other | 903 | 885 | |||||||||||||||
Deferred tax liabilities: | |||||||||||||||||
Depreciation and other | (258 | ) | (161 | ) | |||||||||||||
Foreign net deferred tax assets | 645 | 724 | |||||||||||||||
Domestic and foreign deferred tax assets | 6,380 | 7,702 | |||||||||||||||
Valuation allowances | (6,198 | ) | (7,374 | ) | |||||||||||||
Net deferred tax assets | $ | 182 | $ | 328 | |||||||||||||
Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward [Table Text Block] | Fiscal Year Ended | ||||||||||||||||
September 27, | October 3, | ||||||||||||||||
2013 | 2014 | ||||||||||||||||
Balance, beginning of year | $ | 566 | $ | 563 | |||||||||||||
Increases related to tax positions taken during the current period | 183 | 43 | |||||||||||||||
Decreases related to expiration of the statute of limitations | (186 | ) | 0 | ||||||||||||||
Balance end of year | $ | 563 | $ | 606 |
Note_4_Commitments_and_Conting1
Note 4 - Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||
Oct. 03, 2014 | |||||||||||||
Notes Tables | |||||||||||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Fiscal Year Ending | Minimum | Less | Net Lease | |||||||||
Lease | Sublease | Commitments | |||||||||||
Payments | Proceeds | ||||||||||||
2015 | $ | 10,300 | $ | 110 | $ | 10,190 | |||||||
2016 | 9,188 | 46 | 9,142 | ||||||||||
2017 | 7,017 | 0 | 7,017 | ||||||||||
2018 | 4,627 | 0 | 4,627 | ||||||||||
2019 | 4,548 | 0 | 4,548 | ||||||||||
Thereafter | 9,352 | 0 | 9,352 | ||||||||||
$ | 45,032 | $ | 156 | $ | 44,876 |
Note_6_StockBased_Compensation1
Note 6 - Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 03, 2014 | |||||||||||||||||
Notes Tables | |||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Options | Shares | Weighted- | Weighted- | Aggregate | ||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
Outstanding at September 28, 2012 | 24,000 | $ | 17.97 | 0.2 | $ | 0 | |||||||||||
Options granted | 0 | $ | 0 | ||||||||||||||
Options exercised | 0 | $ | 0 | ||||||||||||||
Options forfeited, expired and unearned | (24,000 | ) | $ | 17.97 | |||||||||||||
Outstanding at September 27, 2013 | 0 | $ | 0 | 0 | $ | 0 | |||||||||||
Options granted | 200,000 | $ | 3.85 | 9 | $ | 0 | |||||||||||
Options exercised | 0 | $ | 0 | ||||||||||||||
Options forfeited, expired and unearned | 0 | $ | 0 | ||||||||||||||
Outstanding at October 3, 2014 | 200,000 | $ | 3.85 | 9 | $ | 0 | |||||||||||
Vested and expected to vest at October 3, 2014 | 200,000 | $ | 3.85 | 9 | $ | 0 | |||||||||||
Exercisable at October 3, 2014 | 50,000 | $ | 3.85 | 9 | |||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Restricted Stock | Weighted Average | |||||||||||||||
Units | Grant Date Fair | ||||||||||||||||
Value | |||||||||||||||||
Nonvested at September 28, 2012 | 102,949 | $ | 7.86 | ||||||||||||||
Granted | 54,685 | $ | 5.49 | ||||||||||||||
Vested | (45,858 | ) | $ | 8.56 | |||||||||||||
Forfeited | (102,334 | ) | $ | 6.33 | |||||||||||||
Nonvested at September 27, 2013 | 9,442 | $ | 7.29 | ||||||||||||||
Granted | 0 | $ | 0 | ||||||||||||||
Vested | (5,742 | ) | $ | 7.93 | |||||||||||||
Forfeited | (1,890 | ) | $ | 6.31 | |||||||||||||
Nonvested at October 3, 2014 | 1,810 | $ | 6.31 |
Note_8_Income_Loss_Per_Share_T
Note 8 - Income (Loss) Per Share (Tables) | 12 Months Ended | ||||||||
Oct. 03, 2014 | |||||||||
Notes Tables | |||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Fiscal Year Ended | ||||||||
September 27, | October 3, | ||||||||
2013 | 2014 | ||||||||
Numerator: | |||||||||
Net income (loss) | $ | (8,719 | ) | $ | 1 | ||||
Denominator: | |||||||||
Weighted-average shares outstanding - basic | 13,210 | 13,221 | |||||||
Dilutive effect of stock options, restricted stock and restricted stock units | - | 3 | |||||||
Weighted-average shares outstanding - diluted | 13,210 | 13,224 | |||||||
Income Per Share: | |||||||||
Income (loss) per common share - basic | $ | (0.66 | ) | $ | 0 | ||||
Income (loss) per common share - diluted | $ | (0.66 | ) | $ | 0 |
Note_9_Operating_Segment_Infor1
Note 9 - Operating Segment Information (Tables) | 12 Months Ended | ||||||||
Oct. 03, 2014 | |||||||||
Notes Tables | |||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Fiscal Year Ended | ||||||||
September 27, | October 3, | ||||||||
2013 | 2014 | ||||||||
Revenues: | |||||||||
United States | $ | 57,093 | $ | 59,452 | |||||
Canada | 12,710 | 11,113 | |||||||
North America Subtotal: | 69,803 | 70,565 | |||||||
United Kingdom | 27,371 | 28,009 | |||||||
France | 11,107 | 11,191 | |||||||
Sweden | 6,484 | 6,239 | |||||||
Japan | 2,045 | 2,244 | |||||||
Total | $ | 116,810 | $ | 118,248 | |||||
Gross profit: | |||||||||
United States | $ | 23,102 | $ | 22,640 | |||||
Canada | 7,515 | 6,547 | |||||||
North America Subtotal: | 30,617 | 29,187 | |||||||
United Kingdom | 12,271 | 11,898 | |||||||
France | 5,510 | 5,362 | |||||||
Sweden | 4,026 | 3,686 | |||||||
Japan | 1,376 | 1,541 | |||||||
Total | $ | 53,800 | $ | 51,674 | |||||
Depreciation and amortization: | |||||||||
United States | $ | 3,695 | $ | 3,223 | |||||
Canada | 330 | 298 | |||||||
North America Subtotal: | 4,025 | 3,521 | |||||||
United Kingdom | 1,278 | 1,448 | |||||||
France | 524 | 526 | |||||||
Sweden | 144 | 125 | |||||||
Japan | 70 | 60 | |||||||
Total | $ | 6,041 | $ | 5,680 | |||||
Fiscal Year Ended | |||||||||
September 27, | October 3, | ||||||||
2013 | 2014 | ||||||||
Total assets: | |||||||||
United States | $ | 30,064 | $ | 36,565 | |||||
Canada | 4,111 | 3,717 | |||||||
North America Subtotal: | 34,175 | 40,282 | |||||||
United Kingdom | 21,077 | 14,597 | |||||||
France | 5,831 | 5,109 | |||||||
Sweden | 6,170 | 4,541 | |||||||
Japan | 1,709 | 1,671 | |||||||
Total | $ | 68,962 | $ | 66,200 | |||||
Long-lived assets: | |||||||||
United States | $ | 10,874 | $ | 4,901 | |||||
Canada | 666 | 456 | |||||||
North America Subtotal: | 11,540 | 5,357 | |||||||
United Kingdom | 4,505 | 3,398 | |||||||
France | 1,051 | 637 | |||||||
Sweden | 279 | 158 | |||||||
Japan | 154 | 86 | |||||||
Total | $ | 17,529 | $ | 9,636 | |||||
Capital expenditures: | |||||||||
United States | $ | 1,821 | $ | 864 | |||||
Canada | 184 | 137 | |||||||
North America Subtotal: | 2,005 | 1,001 | |||||||
United Kingdom | 133 | 415 | |||||||
France | 180 | 148 | |||||||
Sweden | 41 | 24 | |||||||
Japan | 92 | 5 | |||||||
Total | $ | 2,451 | $ | 1,593 |
Note_10_Deferred_Facilities_Re1
Note 10 - Deferred Facilities Rent and Other (Tables) | 12 Months Ended | ||||||||
Oct. 03, 2014 | |||||||||
Notes Tables | |||||||||
Schedule of Current Portion of Deferred Facilities Rent and Other [Table Text Block] | Fiscal Year Ended | ||||||||
September 27, | October 3, | ||||||||
2013 | 2014 | ||||||||
Deferred rent | $ | 965 | $ | 1,050 | |||||
LA lease liability | 634 | 658 | |||||||
Sublease loss accruals | 64 | 0 | |||||||
$ | 1,663 | $ | 1,708 | ||||||
Schedule of Long Term Portion of Deferred Facilities Rent and Other [Table Text Block] | Fiscal Year Ended | ||||||||
September 27, | October 3, | ||||||||
2013 | 2014 | ||||||||
Deferred rent | $ | 4,362 | $ | 3,443 | |||||
LA lease liability | 398 | 301 | |||||||
$ | 4,760 | $ | 3,744 |
Note_11_Valuation_and_Qualifyi1
Note 11 - Valuation and Qualifying Accounts (Tables) | 12 Months Ended | ||||||||
Oct. 03, 2014 | |||||||||
Notes Tables | |||||||||
Schedule of Activity With Respect to Our Provision for Doubtful Accounts [Table Text Block] | September 27, | 3-Oct | |||||||
2013 | 2014 | ||||||||
Beginning balance | $ | 235 | $ | 180 | |||||
Provision for doubtful accounts | 240 | 118 | |||||||
Charges against allowance | (290 | ) | (135 | ) | |||||
Other | (5 | ) | 5 | ||||||
Ending balance | $ | 180 | $ | 168 | |||||
Summary of Valuation Allowance [Table Text Block] | September 27, | 3-Oct | |||||||
2013 | 2014 | ||||||||
Beginning balance | $ | 6,355 | $ | 6,198 | |||||
Provisions | 0 | 1,212 | |||||||
Charges against allowance | (157 | ) | (36 | ) | |||||
Ending balance | $ | 6,198 | $ | 7,374 | |||||
Summary of Lease Liability [Table Text Block] | September 27, | 3-Oct | |||||||
2013 | 2014 | ||||||||
Beginning balance | $ | 0 | $ | 1,032 | |||||
Provisions | 1,522 | 529 | |||||||
Charges against allowance | (490 | ) | (602 | ) | |||||
Ending balance | $ | 1,032 | $ | 959 |
Note_13_Quarterly_Data_Unaudit1
Note 13 - Quarterly Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 03, 2014 | |||||||||||||||||
Notes Tables | |||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | Q1 | Q2 | Q3 | Q4 | |||||||||||||
December 28, | March 29, | June 28, | September 27, | ||||||||||||||
2012 | 2013 | 2013 | 2013 | ||||||||||||||
Revenues | $ | 33,290 | $ | 26,933 | $ | 28,958 | $ | 27,629 | |||||||||
Cost of revenues | 16,421 | 14,859 | 16,141 | 15,589 | |||||||||||||
Gross profit | 16,869 | 12,074 | 12,817 | 12,040 | |||||||||||||
Operating expenses: | |||||||||||||||||
Course development | 2,101 | 1,930 | 1,998 | 1,812 | |||||||||||||
Sales and marketing | 7,805 | 7,312 | 6,764 | 6,735 | |||||||||||||
General and administrative | 8,327 | 6,667 | 5,043 | 5,492 | |||||||||||||
Total operating expenses | 18,233 | 15,909 | 13,805 | 14,039 | |||||||||||||
Income (loss) from operations before other operating items | (1,364 | ) | (3,835 | ) | (988 | ) | (1,999 | ) | |||||||||
Other operating items | 19 | 2 | 1 | (76 | ) | ||||||||||||
Income (loss) from operations | (1,345 | ) | (3,833 | ) | (987 | ) | (2,075 | ) | |||||||||
Other income, net | (38 | ) | 204 | 31 | (232 | ) | |||||||||||
Income (loss) before provision (benefit) for income taxes | (1,383 | ) | (3,629 | ) | (956 | ) | (2,307 | ) | |||||||||
Provision (benefit) for income taxes | 33 | 386 | 123 | (98 | ) | ||||||||||||
Net income (loss) | $ | (1,416 | ) | $ | (4,015 | ) | $ | (1,079 | ) | $ | (2,209 | ) | |||||
Income (loss) per common share - basic | $ | (0.11 | ) | $ | (0.30 | ) | $ | (0.08 | ) | $ | (0.17 | ) | |||||
Income (loss) per common share - diluted | $ | (0.11 | ) | $ | (0.30 | ) | $ | (0.08 | ) | $ | (0.17 | ) | |||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||
January 3, | March 28, | June 27, | October 3, | ||||||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||||||
Revenues | $ | 32,022 | $ | 25,004 | $ | 28,759 | $ | 32,463 | |||||||||
Cost of revenues | 17,348 | 15,711 | 16,132 | 17,383 | |||||||||||||
Gross profit | 14,674 | 9,293 | 12,627 | 15,080 | |||||||||||||
Operating expenses: | |||||||||||||||||
Course development | 1,937 | 1,839 | 1,950 | 1,920 | |||||||||||||
Sales and marketing | 6,156 | 6,195 | 6,283 | 6,887 | |||||||||||||
General and administrative | 5,633 | 5,571 | 7,086 | 6,142 | |||||||||||||
Total operating expenses | 13,726 | 13,605 | 15,319 | 14,949 | |||||||||||||
Income (loss) from operations before other operating items | 948 | (4,312 | ) | (2,692 | ) | 131 | |||||||||||
Other operating items | - | 12 | - | 6,310 | |||||||||||||
Income (loss) from operations | 948 | (4,300 | ) | (2,692 | ) | 6,441 | |||||||||||
Other income, net | (36 | ) | (59 | ) | 22 | (2 | ) | ||||||||||
Income (loss) before provision (benefit) for income taxes | 912 | (4,359 | ) | (2,670 | ) | 6,439 | |||||||||||
Provision (benefit) for income taxes | 183 | 244 | 76 | (182 | ) | ||||||||||||
Net income (loss) | $ | 729 | $ | (4,603 | ) | $ | (2,746 | ) | $ | 6,621 | |||||||
Income (loss) per common share - basic | $ | 0.06 | $ | (0.35 | ) | $ | (0.21 | ) | $ | 0.5 | |||||||
Income (loss) per common share - diluted | $ | 0.06 | $ | (0.35 | ) | $ | (0.21 | ) | $ | 0.5 |
Note_14_Restructing_Activity_T
Note 14 - Restructing Activity (Tables) | 12 Months Ended | ||||||||||||
Oct. 03, 2014 | |||||||||||||
Notes Tables | |||||||||||||
Restructuring and Related Costs [Table Text Block] | Personnel | Facilities | Total | ||||||||||
Worldwide reduction in force | $ | 1,100 | $ | 0 | $ | 1,100 | |||||||
Accelerated depreciation leasehold improvements | 0 | 200 | 200 | ||||||||||
Balance at September 28, 2012 | 1,100 | 200 | 1,300 | ||||||||||
Additions: | |||||||||||||
Los Angeles, CA reduction in force | 200 | 0 | 200 | ||||||||||
Accelerated depreciation leasehold improvements | 0 | 400 | 400 | ||||||||||
Contractual lease payments net of estimated sublease receipts | 0 | 1,500 | 1,500 | ||||||||||
Deferred rent credits | 0 | (850 | ) | (850 | ) | ||||||||
Accretion expense | 0 | 50 | 50 | ||||||||||
200 | 1,100 | 1,300 | |||||||||||
Reductions: | |||||||||||||
Severance payouts | (1,270 | ) | 0 | (1,270 | ) | ||||||||
Accelerated depreciation leasehold improvements | 0 | (600 | ) | (600 | ) | ||||||||
Rent payments net of deferred rent | 0 | (300 | ) | (300 | ) | ||||||||
(1,270 | ) | (900 | ) | (2,170 | ) | ||||||||
Balance at September 27, 2013 | $ | 30 | $ | 400 | $ | 430 | |||||||
Additions: | |||||||||||||
Additional lease charge - Los Angeles, CA | 0 | 500 | 500 | ||||||||||
Accretion expense | 0 | 100 | 100 | ||||||||||
0 | 600 | 600 | |||||||||||
Reductions: | |||||||||||||
Severance payouts | (30 | ) | 0 | (30 | ) | ||||||||
Rent payments net of deferred rent | 0 | (400 | ) | (400 | ) | ||||||||
(30 | ) | (400 | ) | (430 | ) | ||||||||
Balance at October 3, 2014 | $ | 0 | $ | 600 | $ | 600 |
Note_1_Nature_of_the_Business_2
Note 1 - Nature of the Business and Summary of Significant Accounting Policies (Details Textual) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||
Sep. 30, 2012 | Jun. 27, 2014 | Oct. 03, 2014 | Sep. 27, 2013 | Sep. 30, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Sep. 27, 2013 | Sep. 27, 2013 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Sep. 27, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | Company Headquarters [Member] | Company Headquarters [Member] | Interest-bearing Deposits [Member] | Interest-bearing Deposits [Member] | Interest-bearing Deposits [Member] | Interest-bearing Deposits [Member] | Interest-bearing Deposits [Member] | Interest-bearing Deposits [Member] | Interest-bearing Deposits [Member] | Interest-bearing Deposits [Member] | |
USD ($) | sqft | G B [Member] | G B [Member] | G B [Member] | G B [Member] | Sweden [Member] | Sweden [Member] | United States [Member] | United States [Member] | |||||
USD ($) | GBP (£) | USD ($) | GBP (£) | USD ($) | SEK | USD ($) | USD ($) | |||||||
Accounting Policies [Abstract] | ||||||||||||||
Percentage of Course Titles Offered to Individuals Through Online Learning Platform | 90.00% | |||||||||||||
Advertising Expense | $814,000 | $1,057,000 | ||||||||||||
Available-for-sale Securities | 0 | 0 | ||||||||||||
Restricted Cash and Cash Equivalents Pledged as Collateral | 2,297,000 | 1,439,000 | 2,725,000 | 1,689,000 | 209,000 | 1,519,000 | 725,000 | 1,450,000 | ||||||
Marketing Expense | 11,147,000 | 13,453,000 | ||||||||||||
Amortization of Intangible Assets | 1,000 | 1,000 | ||||||||||||
Depreciation, Depletion and Amortization | 5,680,000 | 6,041,000 | ||||||||||||
Area of Real Estate Property | 38,500 | |||||||||||||
Property, Plant and Equipment, Disposals | 3,600,000 | |||||||||||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 6,300,000 | |||||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | -325,000 | -139,000 | ||||||||||||
Restructuring Charges | $1,300,000 | $500,000 | $600,000 | $1,300,000 |
Note_1_Nature_of_the_Business_3
Note 1 - Nature of the Business and Summary of Significant Accounting Policies - Equipment Property and Leasehold Improvements Estimated Useful Life (Details) | 12 Months Ended |
Oct. 03, 2014 | |
Building [Member] | |
Transportation equipment years | 30 |
Leasehold Improvements [Member] | |
Transportation equipment years | 20 or the life of the lease, if shorter |
Transportation Equipment [Member] | |
Education and office equipment years | 4 years |
Transportation equipment years | 4 |
Accounting Software [Member] | |
Transportation equipment years | 7 |
Education and Office Equipment [Member] | Maximum [Member] | |
Education and office equipment years | 5 years |
Education and Office Equipment [Member] | Minimum [Member] | |
Education and office equipment years | 3 years |
Note_2_Asset_Retirement_Obliga2
Note 2 - Asset Retirement Obligations - Asset Retirement Obligations Liabilities Activity (Details) (USD $) | 12 Months Ended | |
Oct. 03, 2014 | Sep. 27, 2013 | |
ARO liabilities balance, beginning of year | $2,004,000 | $3,907,000 |
Non-cash asset retirement obligation incurred | 0 | 1,022,000 |
Accretion of asset retirement obligations | 94,000 | 99,000 |
Liabilities satisfied | 0 | -29,000 |
Settlement of asset retirement obligation | 186,000 | 2,929,000 |
Foreign currency translation | -32,000 | -66,000 |
ARO liabilities balance, end of year | $1,880,000 | $2,004,000 |
Note_3_Income_Taxes_Details_Te
Note 3 - Income Taxes (Details Textual) (USD $) | 12 Months Ended | 3 Months Ended | |
Oct. 03, 2014 | Mar. 28, 2014 | Sep. 27, 2013 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $874,000 | ||
Deferred Tax Assets, Net | 328,000 | 182,000 | |
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 220,000 | ||
Recognized Expense Attributable to Interest for Uncertain Tax Positions | 64,000 | ||
Unrecognized Tax Benefits, Period Increase (Decrease) | 51,000 | ||
Release of Uncertain Tax Positions [Member] | |||
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 656,000 | 593,000 | |
SWEDEN | |||
Income Tax Disclosure [Abstract] | |||
Foreign Earnings Repatriated | 1,200,000 | ||
G B [Member] | |||
Income Tax Disclosure [Abstract] | |||
Foreign Earnings Repatriated | $5,500,000 |
Note_3_Income_Taxes_Income_Los
Note 3 - Income Taxes - Income (Loss) Before Provision for Income Taxes (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Oct. 03, 2014 | Sep. 27, 2013 |
Domestic | ($1,258) | ($9,581) |
Foreign | 1,580 | 1,306 |
Total | $322 | ($8,275) |
Note_3_Income_Taxes_Components
Note 3 - Income Taxes - Components of Provision (Benefit) for Income Taxes (Details) (USD $) | 12 Months Ended | |
Oct. 03, 2014 | Sep. 27, 2013 | |
Current tax provision (benefit): | ||
U.S. Federal | $2,000 | ($201,000) |
State | -81,000 | 253,000 |
Foreign | 545,000 | 91,000 |
466,000 | 143,000 | |
Deferred tax provision: | ||
U.S. Federal | -25,000 | 274,000 |
State | 0 | 0 |
Foreign | -120,000 | 27,000 |
-145,000 | 301,000 | |
Provision for income taxes | $321,000 | $444,000 |
Note_3_Income_Taxes_Reconcilia
Note 3 - Income Taxes - Reconciliation of the Provision for Income Taxes (Details) (USD $) | 12 Months Ended | |
Oct. 03, 2014 | Sep. 27, 2013 | |
Income taxes at the U.S. statutory rate | $112,000 | ($2,896,000) |
Income taxes at the U.S. statutory rate | 35.00% | 35.00% |
Equity compensation | 171,000 | 6,000 |
Equity compensation | 53.10% | -0.10% |
Penalties | 0 | 6,000 |
Penalties | 0.00% | -0.10% |
Other permanent differences | 236,000 | 356,000 |
Other permanent differences | 73.40% | -4.30% |
Effects of foreign taxes and tax credits | -1,235,000 | 3,149,000 |
Effects of foreign taxes and tax credits | -383.60% | -38.10% |
State income taxes | -63,000 | -138,000 |
State income taxes | -19.80% | 1.70% |
Uncertain tax positions | 115,000 | 8,000 |
Uncertain tax positions | 35.60% | -0.10% |
Change in valuation allowance | 1,176,000 | -174,000 |
Change in valuation allowance | 366.00% | 2.10% |
Other | -191,000 | 127,000 |
Other | -59.70% | -1.50% |
Total provision for income taxes | $321,000 | $444,000 |
Total provision for income taxes | 100.00% | -5.40% |
Note_3_Income_Taxes_Deferred_I
Note 3 - Income Taxes - Deferred Income Tax Assets and Liabilities (Details) (USD $) | Oct. 03, 2014 | Sep. 27, 2013 |
Deferred tax assets: | ||
Foreign tax credit carryforwards | $220,000 | |
Deferred tax liabilities: | ||
Domestic net deferred tax assets | 7,702,000 | 6,380,000 |
Foreign net deferred tax assets | 7,702,000 | 6,380,000 |
Domestic and foreign deferred tax assets | 7,702,000 | 6,380,000 |
Valuation allowances | -7,374,000 | -6,198,000 |
Net deferred tax assets | 328,000 | 182,000 |
Domestic Tax Authority [Member] | ||
Deferred tax assets: | ||
Deferred facilities rent charges | 1,946,000 | 2,321,000 |
Deferred revenue | 2,084,000 | 1,840,000 |
Foreign tax credit carryforwards | 132,000 | 157,000 |
Alternative minimum tax credit carryforwards | 96,000 | 96,000 |
Accrued vacation | 487,000 | 426,000 |
Equity compensation | 16,000 | 48,000 |
Depreciation and amortization | 2,331,000 | 1,219,000 |
Other | 199,000 | 171,000 |
Net operating loss | 0 | 3,341,000 |
Deferred tax liabilities: | ||
Prepaid expenses | -313,000 | -283,000 |
481(a) adjustments | 0 | -230,000 |
Undistributed earnings of foreign subsidiaries | 0 | -3,371,000 |
Domestic net deferred tax assets | 6,978,000 | 5,735,000 |
Foreign net deferred tax assets | 6,978,000 | 5,735,000 |
Domestic and foreign deferred tax assets | 6,978,000 | 5,735,000 |
Foreign Tax Authority [Member] | ||
Deferred tax assets: | ||
Deferred benefits for uncertain positions | 0 | 0 |
Depreciation and other | 885,000 | 903,000 |
Deferred tax liabilities: | ||
Domestic net deferred tax assets | 724,000 | 645,000 |
Depreciation and other | -161,000 | -258,000 |
Foreign net deferred tax assets | 724,000 | 645,000 |
Domestic and foreign deferred tax assets | $724,000 | $645,000 |
Note_3_Income_Taxes_Aggregate_
Note 3 - Income Taxes - Aggregate Change in The Balance of Gross Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | |
Oct. 03, 2014 | Sep. 27, 2013 | |
Balance, beginning of year | $563,000 | $566,000 |
Increases related to tax positions taken during the current period | 43,000 | 183,000 |
Decreases related to expiration of the statute of limitations | 0 | -186,000 |
Balance end of year | $606,000 | $563,000 |
Note_4_Commitments_and_Conting2
Note 4 - Commitments and Contingencies (Details Textual) | 12 Months Ended | 1 Months Ended | |||||||||||||
Oct. 03, 2014 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | |
USD ($) | USD ($) | GBP (£) | Original Rent Amount [Member] | Forvaltningsbolaget Marievik HB [Member] | Forvaltningsbolaget Marievik HB [Member] | Forvaltningsbolaget Marievik HB [Member] | Forvaltningsbolaget Marievik HB [Member] | Forvaltningsbolaget Marievik HB [Member] | Vasakronan [Member] | Vasakronan [Member] | Vasakronan [Member] | Vasakronan [Member] | Vasakronan [Member] | Vasakronan [Member] | |
GBP (£) | USD ($) | SEK | Additional Funding [Member] | Paid In Advance [Member] | Paid In Advance [Member] | Basic Rent Amount [Member] | Basic Rent Amount [Member] | Basic Supplemental Rent [Member] | Basic Supplemental Rent [Member] | Security Deposit [Member] | Security Deposit [Member] | ||||
SEK | USD ($) | SEK | USD ($) | SEK | USD ($) | SEK | USD ($) | SEK | |||||||
Operating Leases, Rent Expense, Minimum Rentals | $10,570,000 | $10,072,000 | |||||||||||||
Operating Leases, Rent Expense, Sublease Rentals | 48,000 | 387,000 | |||||||||||||
Aggregate Annual Minimum Rent of Leases | 2,300,000 | 1,400,000 | 2,850,000 | ||||||||||||
Aggregate Annual Minimum Rent of Leases | 2,300,000 | 1,400,000 | 2,850,000 | ||||||||||||
Annual Minimum Sublease Rentals | 1,500,000 | ||||||||||||||
Aggregate Annual Minimum Rent of Leases Net of Sublease Rentals | 1,350,000 | ||||||||||||||
Lease Surrender Value | 3,200,000 | 2,000,000 | |||||||||||||
Increase (Decrease) in Asset Retirement Obligations | 0 | -29,000 | -1,900,000 | ||||||||||||
Escrow Deposit | 8,100,000 | 5,000,000 | |||||||||||||
Security Deposit | 2,700,000 | 1,700,000 | |||||||||||||
Operating Leases, Rent Expense | 100,000 | 100,000 | |||||||||||||
Proceeds from Lease Termination | 600,000 | 3,740,000 | 3,000,000 | 100,000 | 1,000,000 | ||||||||||
Operating Leases, Future Minimum Payments Due | $45,032,000 | $400,000 | 2,650,000 | $100,000 | 490,000 | $200,000 | 1,500,000 |
Recovered_Sheet1
Note 4 - Commitments And Contingencies - Future Minimum Lease Payments (Details) (USD $) | Oct. 03, 2014 |
2015 | $10,300,000 |
2015 | 110,000 |
2015 | 10,190,000 |
2016 | 9,188,000 |
2016 | 46,000 |
2016 | 9,142,000 |
2017 | 7,017,000 |
2017 | 0 |
2017 | 7,017,000 |
2018 | 4,627,000 |
2018 | 0 |
2018 | 4,627,000 |
2019 | 4,548,000 |
2019 | 0 |
2019 | 4,548,000 |
Thereafter | 9,352,000 |
Thereafter | 0 |
Thereafter | 9,352,000 |
45,032,000 | |
156,000 | |
$44,876,000 |
Note_6_StockBased_Compensation2
Note 6 - Stock-Based Compensation (Details Textual) (USD $) | 12 Months Ended | ||||||
Oct. 03, 2014 | Sep. 27, 2013 | Oct. 03, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 28, 2012 | Jan. 27, 2007 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 200,000 | 0 | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 0 | 0 | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 9 years | 0 years | 73 days | ||||
Share-based Compensation Arrangement by Share Based Payment Award Options Estimated Forfeiture Rate | 0.00% | ||||||
Equity Incentive Plan 2007 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,000,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||
Employee Stock Option [Member] | |||||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 0 | 0 | |||||
Allocated Share-based Compensation Expense | 68,000 | 0 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 200,000 | 200,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 73 days | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | 54,685 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 100,000 | 100,000 | |||||
Restricted Stock Units (RSUs) [Member] | Equity Incentive Plan 2007 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||
Allocated Share-based Compensation Expense | 110,000 | 69,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 54,685 | 120,285 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Note_6_StockBased_Compensation3
Note 6 - Stock-Based Compensation - Option Activity (Details) (USD $) | 12 Months Ended | ||||
Oct. 03, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | Oct. 03, 2014 | Sep. 27, 2013 | |
Outstanding at September 28, 2012 (in shares) | 200,000 | 0 | 24,000 | 200,000 | 0 |
Outstanding at September 28, 2012 Weighted Average Exercise Price (in dollars per share) | $3.85 | $0 | $17.97 | $3.85 | $0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 9 years | 0 years | 73 days | ||
Outstanding at September 28, 2012 Aggregate Intrinsic Value | $0 | $0 | $0 | $0 | $0 |
Options granted (in shares) | 200,000 | 0 | 0 | ||
Options granted Weighted Average Exercise Price (in dollars per share) | $3.85 | $0 | |||
Options exercised (in shares) | 0 | 0 | 0 | 0 | |
Options exercised Weighted Average Exercise Price (in dollars per share) | $0 | $0 | |||
Options forfeited, expired and unearned (in shares) | 0 | -24,000 | |||
Options forfeited, expired and unearned Weighted Average Exercise Price (in dollars per share) | $0 | $17.97 | |||
Options granted Weighted Average Remaining Term | 9 years | ||||
Vested and expected to vest at October 3, 2014 (in shares) | 200,000 | 200,000 | |||
Vested and expected to vest at October 3, 2014 Weighted Average Exercise Price (in dollars per share) | $3.85 | $3.85 | |||
Vested and expected to vest at October 3, 2014 Weighted Average Remaining Term | 9 years | ||||
Vested and expected to vest at October 3, 2014 Aggregate Intrinsic Value | $0 | $0 | |||
Exercisable at October 3, 2014 (in shares) | 50,000 | 50,000 | |||
Exercisable at October 3, 2014 Weighted Average Exercise Price (in dollars per share) | $3.85 | $3.85 | |||
Exercisable at October 3, 2014 Weighted Average Remaining Term | 9 years |
Note_6_StockBased_Compensation4
Note 6 - Stock-Based Compensation - Restricted Stock and RSU Activity (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended | ||
Oct. 03, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | |
Restricted Stock Units (RSUs) [Member] | |||
Nonvested at September 28, 2012 (in shares) | 1,810 | 9,442 | 102,949 |
Nonvested at September 28, 2012 (in dollars per share) | $6.31 | $7.29 | $7.86 |
Granted (in shares) | 0 | 54,685 | |
Granted (in dollars per share) | $0 | $5.49 | |
Vested (in shares) | -5,742 | -45,858 | |
Vested (in dollars per share) | $7.93 | $8.56 | |
Forfeited (in shares) | -1,890 | -102,334 | |
Forfeited (in dollars per share) | $6.31 | $6.33 | |
Nonvested at September 27, 2013 (in shares) | 1,810 | 9,442 | 102,949 |
Nonvested at September 27, 2013 (in dollars per share) | $6.31 | $7.29 | $7.86 |
Note_7_Employee_Benefit_Plans_
Note 7 - Employee Benefit Plans (Details Textual) (The Learning Tree International 401K Plan [Member], USD $) | 1 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2011 | Apr. 30, 2009 | Oct. 03, 2014 | Sep. 27, 2013 |
The Learning Tree International 401K Plan [Member] | ||||
Defined Contribution Plan Employer Contribution as Percentage of Employee Contribution | 30.00% | 50.00% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 6.00% | 2.00% | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $53 | $324 | ||
Defined Contribution Plan Forfeitures | 208 | 50 | ||
Defined Contribution Plan, Cost Recognized | $587 | $591 |
Note_8_Income_Loss_Per_Share_D
Note 8 - Income (Loss) Per Share (Details Textual) (Equity Option [Member]) | 12 Months Ended | |
Oct. 03, 2014 | Sep. 27, 2013 | |
Equity Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 200,000 | 0 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 200,000 | 0 |
Note_8_Income_Loss_Per_Share_B
Note 8 - Income (Loss) Per Share - Basic and Diluted Earnings Per Share (Details) (USD $) | 12 Months Ended | |
Oct. 03, 2014 | Sep. 27, 2013 | |
Numerator: | ||
Net loss | $1,000 | ($8,719,000) |
Weighted-average shares outstanding - basic (in shares) | 13,221,000 | 13,210,000 |
Dilutive effect of stock options, restricted stock and restricted stock units (in shares) | 3,000 | 0 |
Weighted-average shares outstanding - diluted (in shares) | 13,224,000 | 13,210,000 |
Income (loss) per common share - basic (in dollars per share) | $0 | ($0.66) |
Income (loss) per common share - diluted (in dollars per share) | $0 | ($0.66) |
Note_9_Operating_Segment_Infor2
Note 9 - Operating Segment Information (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Oct. 03, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Jan. 03, 2014 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Oct. 03, 2014 | Sep. 27, 2013 |
Revenues | $32,463 | $28,759 | $25,004 | $32,022 | $27,629 | $28,958 | $26,933 | $33,290 | $118,248 | $116,810 |
Revenues | 32,463 | 28,759 | 25,004 | 32,022 | 27,629 | 28,958 | 26,933 | 33,290 | 118,248 | 116,810 |
Intersegment Sales [Member] | ||||||||||
Revenues | 5,175 | 4,049 | ||||||||
Revenues | $5,175 | $4,049 |
Note_9_Operating_Segment_Infor3
Note 9 - Operating Segment Information - Financial Information by Reportable Segment (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Oct. 03, 2014 | Sep. 27, 2013 | Oct. 03, 2014 | Sep. 27, 2013 | |
Revenues: | ||||
Revenues | $32,463,000 | $27,629,000 | $118,248,000 | $116,810,000 |
Gross profit: | ||||
United States-Gross Profit | 15,080,000 | 12,040,000 | 51,674,000 | 53,800,000 |
Depreciation and amortization: | ||||
Depreciation, Depletion and Amortization | 5,680,000 | 6,041,000 | ||
Assets | ||||
United States-Assets | 66,200,000 | 68,962,000 | 66,200,000 | 68,962,000 |
Long-lived assets: | ||||
United States-Long Lived Assets | 9,636,000 | 17,529,000 | 9,636,000 | 17,529,000 |
Total-Long Lived Assets | 9,636,000 | 17,529,000 | 9,636,000 | 17,529,000 |
Capital expenditures: | ||||
United States-Capital expenditure | 1,593,000 | 2,451,000 | ||
FRANCE | ||||
Revenues: | ||||
Revenues | 11,191,000 | 11,107,000 | ||
Gross profit: | ||||
United States-Gross Profit | 5,362,000 | 5,510,000 | ||
Depreciation and amortization: | ||||
Depreciation, Depletion and Amortization | 526,000 | 524,000 | ||
Assets | ||||
United States-Assets | 5,109,000 | 5,831,000 | 5,109,000 | 5,831,000 |
Long-lived assets: | ||||
United States-Long Lived Assets | 637,000 | 1,051,000 | 637,000 | 1,051,000 |
Total-Long Lived Assets | 637,000 | 1,051,000 | 637,000 | 1,051,000 |
Capital expenditures: | ||||
United States-Capital expenditure | 148,000 | 180,000 | ||
UNITED KINGDOM | ||||
Revenues: | ||||
Revenues | 28,009,000 | 27,371,000 | ||
Gross profit: | ||||
United States-Gross Profit | 11,898,000 | 12,271,000 | ||
Depreciation and amortization: | ||||
Depreciation, Depletion and Amortization | 1,448,000 | 1,278,000 | ||
Assets | ||||
United States-Assets | 14,597,000 | 21,077,000 | 14,597,000 | 21,077,000 |
Long-lived assets: | ||||
United States-Long Lived Assets | 3,398,000 | 4,505,000 | 3,398,000 | 4,505,000 |
Total-Long Lived Assets | 3,398,000 | 4,505,000 | 3,398,000 | 4,505,000 |
Capital expenditures: | ||||
United States-Capital expenditure | 415,000 | 133,000 | ||
JAPAN | ||||
Revenues: | ||||
Revenues | 2,244,000 | 2,045,000 | ||
Gross profit: | ||||
United States-Gross Profit | 1,541,000 | 1,376,000 | ||
Depreciation and amortization: | ||||
Depreciation, Depletion and Amortization | 60,000 | 70,000 | ||
Assets | ||||
United States-Assets | 1,671,000 | 1,709,000 | 1,671,000 | 1,709,000 |
Long-lived assets: | ||||
United States-Long Lived Assets | 86,000 | 154,000 | 86,000 | 154,000 |
Total-Long Lived Assets | 86,000 | 154,000 | 86,000 | 154,000 |
Capital expenditures: | ||||
United States-Capital expenditure | 5,000 | 92,000 | ||
North America [Member] | ||||
Revenues: | ||||
Revenues | 70,565,000 | 69,803,000 | ||
Gross profit: | ||||
United States-Gross Profit | 29,187,000 | 30,617,000 | ||
Depreciation and amortization: | ||||
Depreciation, Depletion and Amortization | 3,521,000 | 4,025,000 | ||
Assets | ||||
United States-Assets | 40,282,000 | 34,175,000 | 40,282,000 | 34,175,000 |
Long-lived assets: | ||||
United States-Long Lived Assets | 5,357,000 | 11,540,000 | 5,357,000 | 11,540,000 |
Total-Long Lived Assets | 5,357,000 | 11,540,000 | 5,357,000 | 11,540,000 |
Capital expenditures: | ||||
United States-Capital expenditure | 1,001,000 | 2,005,000 | ||
SWEDEN | ||||
Revenues: | ||||
Revenues | 6,239,000 | 6,484,000 | ||
Gross profit: | ||||
United States-Gross Profit | 3,686,000 | 4,026,000 | ||
Depreciation and amortization: | ||||
Depreciation, Depletion and Amortization | 125,000 | 144,000 | ||
Assets | ||||
United States-Assets | 4,541,000 | 6,170,000 | 4,541,000 | 6,170,000 |
Long-lived assets: | ||||
United States-Long Lived Assets | 158,000 | 279,000 | 158,000 | 279,000 |
Total-Long Lived Assets | 158,000 | 279,000 | 158,000 | 279,000 |
Capital expenditures: | ||||
United States-Capital expenditure | 24,000 | 41,000 | ||
UNITED STATES | ||||
Revenues: | ||||
Revenues | 59,452,000 | 57,093,000 | ||
Gross profit: | ||||
United States-Gross Profit | 22,640,000 | 23,102,000 | ||
Depreciation and amortization: | ||||
Depreciation, Depletion and Amortization | 3,223,000 | 3,695,000 | ||
Assets | ||||
United States-Assets | 36,565,000 | 30,064,000 | 36,565,000 | 30,064,000 |
Long-lived assets: | ||||
United States-Long Lived Assets | 4,901,000 | 10,874,000 | 4,901,000 | 10,874,000 |
Total-Long Lived Assets | 4,901,000 | 10,874,000 | 4,901,000 | 10,874,000 |
Capital expenditures: | ||||
United States-Capital expenditure | 864,000 | 1,821,000 | ||
Canada [Member] | ||||
Revenues: | ||||
Revenues | 11,113,000 | 12,710,000 | ||
Gross profit: | ||||
United States-Gross Profit | 6,547,000 | 7,515,000 | ||
Depreciation and amortization: | ||||
Depreciation, Depletion and Amortization | 298,000 | 330,000 | ||
Assets | ||||
United States-Assets | 3,717,000 | 4,111,000 | 3,717,000 | 4,111,000 |
Long-lived assets: | ||||
United States-Long Lived Assets | 456,000 | 666,000 | 456,000 | 666,000 |
Total-Long Lived Assets | 456,000 | 666,000 | 456,000 | 666,000 |
Capital expenditures: | ||||
United States-Capital expenditure | $137,000 | $184,000 |
Note_10_Deferred_Facilities_Re2
Note 10 - Deferred Facilities Rent And Other - Current Portion of Deferred Facilities Rent and Other (Details) (USD $) | Oct. 03, 2014 | Sep. 27, 2013 |
Deferred rent | $1,050,000 | $965,000 |
LA lease liability | 658,000 | 634,000 |
Sublease loss accruals | 0 | 64,000 |
$1,708,000 | $1,663,000 |
Note_10_Deferred_Facilities_Re3
Note 10 - Deferred Facilities Rent And Other - Deferred Facilities Rent and Other (Details) (USD $) | Oct. 03, 2014 | Sep. 27, 2013 |
Deferred rent | $3,443,000 | $4,362,000 |
LA lease liability | 301,000 | 398,000 |
$3,744,000 | $4,760,000 |
Note_11_Valuation_and_Qualifyi2
Note 11 - Valuation and Qualifying Accounts - Provision for Doubtful Accounts Activity (Details) (USD $) | 12 Months Ended | |
Oct. 03, 2014 | Sep. 27, 2013 | |
Allowance for doubtful accounts | $118,000 | $240,000 |
Allowance for Doubtful Accounts [Member] | ||
Beginning balance | 180,000 | 235,000 |
Allowance for doubtful accounts | 118,000 | 240,000 |
Charges against allowance | -135,000 | -290,000 |
Other | 5,000 | -5,000 |
Ending Balance | $168,000 | $180,000 |
Note_11_Valuation_and_Qualifyi3
Note 11 - Valuation and Qualifying Accounts - Valuation Allowance for Deferred Tax Assets Activity (Details) (Valuation Allowance of Deferred Tax Assets [Member], USD $) | 12 Months Ended | |
Oct. 03, 2014 | Sep. 27, 2013 | |
Valuation Allowance of Deferred Tax Assets [Member] | ||
Beginning balance | $6,198,000 | $6,355,000 |
Provisions | 1,212,000 | 0 |
Charges against allowance | -36,000 | -157,000 |
Ending Balance | $7,374,000 | $6,198,000 |
Note_11_Valuation_and_Qualifyi4
Note 11 - Valuation and Qualifying Accounts - Los Angeles Lease Liability (Details) (Los Angeles Lease Liability [Member], USD $) | 12 Months Ended | |
Oct. 03, 2014 | Sep. 27, 2013 | |
Los Angeles Lease Liability [Member] | ||
Beginning balance | $1,032,000 | $0 |
Provisions | 529,000 | 1,522,000 |
Charges against allowance | -602,000 | -490,000 |
Ending Balance | $959,000 | $1,032,000 |
Note_12_Related_Party_Transact1
Note 12 - Related Party Transactions (Details Textual) (USD $) | 12 Months Ended | |
Oct. 03, 2014 | Sep. 27, 2013 | |
Charitable Donations Monetary | $209 | $115,000 |
Charitable Donations Monetary | $209 | $115,000 |
Note_13_Quarterly_Data_Unaudit2
Note 13 - Quarterly Data (Unaudited) (Details Textual) (USD $) | 12 Months Ended | |
Oct. 03, 2014 | Sep. 27, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | ||
Gain (Loss) on Disposition of Property Plant Equipment | $6,322,000 | ($54,000) |
Corporate Headquarters [Member] | ||
Quarterly Financial Information Disclosure [Abstract] | ||
Area of Real Estate Property | 38,500 |
Note_13_Quarterly_Data_Unaudit3
Note 13 - Quarterly Data (Unaudited) - Quarterly Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 03, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Jan. 03, 2014 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Oct. 03, 2014 | Sep. 27, 2013 | |
Revenues | $32,463,000 | $28,759,000 | $25,004,000 | $32,022,000 | $27,629,000 | $28,958,000 | $26,933,000 | $33,290,000 | $118,248,000 | $116,810,000 |
Cost of revenues | 17,383,000 | 16,132,000 | 15,711,000 | 17,348,000 | 15,589,000 | 16,141,000 | 14,859,000 | 16,421,000 | 66,574,000 | 63,010,000 |
United States-Gross Profit | 15,080,000 | 12,627,000 | 9,293,000 | 14,674,000 | 12,040,000 | 12,817,000 | 12,074,000 | 16,869,000 | 51,674,000 | 53,800,000 |
Course development | 1,920,000 | 1,950,000 | 1,839,000 | 1,937,000 | 1,812,000 | 1,998,000 | 1,930,000 | 2,101,000 | 7,646,000 | 7,841,000 |
Sales and marketing | 6,887,000 | 6,283,000 | 6,195,000 | 6,156,000 | 6,735,000 | 6,764,000 | 7,312,000 | 7,805,000 | 25,521,000 | 28,616,000 |
General and administrative | 6,142,000 | 7,086,000 | 5,571,000 | 5,633,000 | 5,492,000 | 5,043,000 | 6,667,000 | 8,327,000 | 24,432,000 | 25,529,000 |
Total operating expenses | 14,949,000 | 15,319,000 | 13,605,000 | 13,726,000 | 14,039,000 | 13,805,000 | 15,909,000 | 18,233,000 | 57,599,000 | 61,986,000 |
Income (loss) from operations before other operating items | 131,000 | -2,692,000 | -4,312,000 | 948,000 | -1,999,000 | -988,000 | -3,835,000 | -1,364,000 | -5,925,000 | -8,186,000 |
Other operating items | 6,310,000 | 12,000 | -76,000 | 1,000 | 2,000 | 19,000 | 6,322,000 | -54,000 | ||
Income (loss) from operations | 6,441,000 | -2,692,000 | -4,300,000 | 948,000 | -2,075,000 | -987,000 | -3,833,000 | -1,345,000 | 397,000 | -8,240,000 |
Other income, net | -2,000 | 22,000 | -59,000 | -36,000 | -232,000 | 31,000 | 204,000 | -38,000 | -75,000 | -35,000 |
Income (loss) before provision (benefit) for income taxes | 6,439,000 | -2,670,000 | -4,359,000 | 912,000 | -2,307,000 | -956,000 | -3,629,000 | -1,383,000 | 322,000 | -8,275,000 |
Provision (benefit) for income taxes | -182,000 | 76,000 | 244,000 | 183,000 | -98,000 | 123,000 | 386,000 | 33,000 | 321,000 | 444,000 |
Net loss | $6,621,000 | ($2,746,000) | ($4,603,000) | $729,000 | ($2,209,000) | ($1,079,000) | ($4,015,000) | ($1,416,000) | $1,000 | ($8,719,000) |
Income (loss) per common share - basic (in dollars per share) | $0.50 | ($0.21) | ($0.35) | $0.06 | ($0.17) | ($0.08) | ($0.30) | ($0.11) | $0 | ($0.66) |
Income (loss) per common share - diluted (in dollars per share) | $0.50 | ($0.21) | ($0.35) | $0.06 | ($0.17) | ($0.08) | ($0.30) | ($0.11) | $0 | ($0.66) |
Note_14_Restructing_Activity_D
Note 14 - Restructing Activity (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2012 | Jun. 27, 2014 | Oct. 03, 2014 | Sep. 27, 2013 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring and Related Cost, Number of Positions Eliminated | 40 | |||
Restructuring Charges | $1,300,000 | $500,000 | $600,000 | $1,300,000 |
Restructuring Charges | $1,300,000 | $500,000 | $600,000 | $1,300,000 |
Note_14_Restructing_Activity_R
Note 14 - Restructing Activity - Restructuring Activity (Details) (USD $) | 12 Months Ended | ||
Oct. 03, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | |
Worldwide reduction in force | $600,000 | $430,000 | $1,300,000 |
Additions: | |||
Restructuring Charges | 600,000 | 1,300,000 | |
Restructuring Charges | 600,000 | 1,300,000 | |
Accretion expense | 600,000 | 1,300,000 | |
Reductions: | |||
Severance payouts | -430,000 | -2,170,000 | |
Worldwide reduction in force | 600,000 | 430,000 | 1,300,000 |
Employee Severance [Member] | |||
Worldwide reduction in force | 0 | 30,000 | 1,100,000 |
Additions: | |||
Restructuring Charges | 0 | 200,000 | |
Restructuring Charges | 0 | 200,000 | |
Accretion expense | 0 | 200,000 | |
Reductions: | |||
Severance payouts | -30,000 | -1,270,000 | |
Worldwide reduction in force | 0 | 30,000 | 1,100,000 |
Facility Closing [Member] | |||
Worldwide reduction in force | 600,000 | 400,000 | 200,000 |
Additions: | |||
Restructuring Charges | 600,000 | 1,100,000 | |
Restructuring Charges | 600,000 | 1,100,000 | |
Accretion expense | 600,000 | 1,100,000 | |
Reductions: | |||
Severance payouts | -400,000 | -900,000 | |
Worldwide reduction in force | 600,000 | 400,000 | 200,000 |
Accelerated Depreciation Leasehold Improvements [Member] | |||
Worldwide reduction in force | 200,000 | ||
Additions: | |||
Restructuring Charges | 400,000 | ||
Restructuring Charges | 400,000 | ||
Accretion expense | 400,000 | ||
Reductions: | |||
Severance payouts | -600,000 | ||
Worldwide reduction in force | 200,000 | ||
Accelerated Depreciation Leasehold Improvements [Member] | Employee Severance [Member] | |||
Worldwide reduction in force | 0 | ||
Additions: | |||
Restructuring Charges | 0 | ||
Restructuring Charges | 0 | ||
Accretion expense | 0 | ||
Reductions: | |||
Severance payouts | 0 | ||
Worldwide reduction in force | 0 | ||
Accelerated Depreciation Leasehold Improvements [Member] | Facility Closing [Member] | |||
Worldwide reduction in force | 200,000 | ||
Additions: | |||
Restructuring Charges | 400,000 | ||
Restructuring Charges | 400,000 | ||
Accretion expense | 400,000 | ||
Reductions: | |||
Severance payouts | -600,000 | ||
Worldwide reduction in force | 200,000 | ||
Accretion Expense 1 [Member] | |||
Additions: | |||
Restructuring Charges | 100,000 | 50,000 | |
Restructuring Charges | 100,000 | 50,000 | |
Accretion expense | 100,000 | 50,000 | |
Accretion Expense 1 [Member] | Employee Severance [Member] | |||
Additions: | |||
Restructuring Charges | 0 | 0 | |
Restructuring Charges | 0 | 0 | |
Accretion expense | 0 | 0 | |
Accretion Expense 1 [Member] | Facility Closing [Member] | |||
Additions: | |||
Restructuring Charges | 100,000 | 50,000 | |
Restructuring Charges | 100,000 | 50,000 | |
Accretion expense | 100,000 | 50,000 | |
Additional Lease Charge [Member] | |||
Additions: | |||
Restructuring Charges | 500,000 | ||
Restructuring Charges | 500,000 | ||
Accretion expense | 500,000 | ||
Additional Lease Charge [Member] | Employee Severance [Member] | |||
Additions: | |||
Restructuring Charges | 0 | ||
Restructuring Charges | 0 | ||
Accretion expense | 0 | ||
Additional Lease Charge [Member] | Facility Closing [Member] | |||
Additions: | |||
Restructuring Charges | 500,000 | ||
Restructuring Charges | 500,000 | ||
Accretion expense | 500,000 | ||
Contractual Lease Payments [Member] | |||
Additions: | |||
Restructuring Charges | 1,500,000 | ||
Restructuring Charges | 1,500,000 | ||
Accretion expense | 1,500,000 | ||
Contractual Lease Payments [Member] | Employee Severance [Member] | |||
Additions: | |||
Restructuring Charges | 0 | ||
Restructuring Charges | 0 | ||
Accretion expense | 0 | ||
Contractual Lease Payments [Member] | Facility Closing [Member] | |||
Additions: | |||
Restructuring Charges | 1,500,000 | ||
Restructuring Charges | 1,500,000 | ||
Accretion expense | 1,500,000 | ||
Deferred Rent Credits [Member] | |||
Additions: | |||
Restructuring Charges | -850,000 | ||
Restructuring Charges | -850,000 | ||
Accretion expense | -850,000 | ||
Deferred Rent Credits [Member] | Employee Severance [Member] | |||
Additions: | |||
Restructuring Charges | 0 | ||
Restructuring Charges | 0 | ||
Accretion expense | 0 | ||
Deferred Rent Credits [Member] | Facility Closing [Member] | |||
Additions: | |||
Restructuring Charges | -850,000 | ||
Restructuring Charges | -850,000 | ||
Accretion expense | -850,000 | ||
Reduction In Force [Member] | |||
Worldwide reduction in force | 1,100,000 | ||
Additions: | |||
Restructuring Charges | 200,000 | ||
Restructuring Charges | 200,000 | ||
Accretion expense | 200,000 | ||
Reductions: | |||
Severance payouts | -30,000 | -1,270,000 | |
Worldwide reduction in force | 1,100,000 | ||
Reduction In Force [Member] | Employee Severance [Member] | |||
Worldwide reduction in force | 1,100,000 | ||
Additions: | |||
Restructuring Charges | 200,000 | ||
Restructuring Charges | 200,000 | ||
Accretion expense | 200,000 | ||
Reductions: | |||
Severance payouts | -30,000 | -1,270,000 | |
Worldwide reduction in force | 1,100,000 | ||
Reduction In Force [Member] | Facility Closing [Member] | |||
Worldwide reduction in force | 0 | ||
Additions: | |||
Restructuring Charges | 0 | ||
Restructuring Charges | 0 | ||
Accretion expense | 0 | ||
Reductions: | |||
Severance payouts | 0 | 0 | |
Worldwide reduction in force | 0 | ||
Rent Payments [Member] | |||
Reductions: | |||
Severance payouts | -400,000 | -300,000 | |
Rent Payments [Member] | Employee Severance [Member] | |||
Reductions: | |||
Severance payouts | 0 | 0 | |
Rent Payments [Member] | Facility Closing [Member] | |||
Reductions: | |||
Severance payouts | ($400,000) | ($300,000) |