Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 14, 2014 | Jun. 28, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'CECO | ' | ' |
Entity Registrant Name | 'CAREER EDUCATION CORP | ' | ' |
Entity Central Index Key | '0001046568 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 67,149,898 | ' |
Entity Public Float | ' | ' | $148,522,000 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents, unrestricted | $318,943 | $112,884 |
Restricted cash | 12,564 | 97,878 |
Short-term investments | 31,592 | 63,876 |
Total cash and cash equivalents and short-term investments | 363,099 | 274,638 |
Student receivables, net of allowance for doubtful accounts of $21,197 and $27,900 as of December 31, 2013 and 2012, respectively | 34,650 | 54,194 |
Receivables, other, net | 27,440 | 2,084 |
Prepaid expenses | 20,750 | 38,225 |
Inventories | 6,741 | 8,361 |
Deferred income tax assets, net | 3,606 | 7,088 |
Other current assets | 3,468 | 4,393 |
Assets of discontinued operations | 263 | 154,578 |
Total current assets | 460,017 | 543,561 |
NON-CURRENT ASSETS: | ' | ' |
Property and equipment, net | 182,396 | 247,788 |
Goodwill | 87,356 | 87,356 |
Intangible assets, net | 40,117 | 56,006 |
Student receivables, net of allowance for doubtful accounts of $6,890 and $11,965 as of December 31, 2013 and 2012, respectively | 5,208 | 6,823 |
Deferred income tax assets, net | 10,644 | 47,349 |
Other assets, net | 18,107 | 30,276 |
Assets of discontinued operations | 1,200 | 103,544 |
TOTAL ASSETS | 805,045 | 1,122,703 |
CURRENT LIABILITIES: | ' | ' |
Short-term borrowings | ' | 80,000 |
Accounts payable | 24,651 | 32,070 |
Accrued expenses: | ' | ' |
Payroll and related benefits | 34,172 | 38,772 |
Advertising and production costs | 17,599 | 20,963 |
Income taxes | 14,994 | ' |
Other | 43,275 | 34,999 |
Deferred tuition revenue | 61,131 | 69,675 |
Liabilities of discontinued operations | 11,610 | 76,236 |
Total current liabilities | 207,432 | 352,715 |
NON-CURRENT LIABILITIES: | ' | ' |
Deferred rent obligations | 83,843 | 93,611 |
Other liabilities | 30,804 | 28,648 |
Liabilities of discontinued operations | 27,582 | 35,939 |
Total non-current liabilities | 142,229 | 158,198 |
STOCKHOLDERS' EQUITY: | ' | ' |
Preferred stock, $0.01 par value; 1,000,000 shares authorized; none issued or outstanding | ' | ' |
Common stock, $0.01 par value; 300,000,000 shares authorized; 81,889,907 and 81,616,987 shares issued, 67,170,522 and 67,069,734 shares outstanding as of December 31, 2013 and 2012, respectively | 819 | 816 |
Additional paid-in capital | 600,904 | 596,826 |
Accumulated other comprehensive loss | -503 | -4,785 |
Retained earnings | 68,658 | 232,921 |
Cost of 14,719,385 and 14,547,253 shares in treasury as of December 31, 2013 and 2012, respectively | -214,494 | -213,988 |
Total stockholders' equity | 455,384 | 611,790 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $805,045 | $1,122,703 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Student receivables, allowance for doubtful accounts, current | $21,197 | $27,900 |
Student receivables, allowance for doubtful accounts, current | $6,890 | $11,965 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 81,889,907 | 81,616,987 |
Common stock, shares outstanding | 67,170,522 | 67,069,734 |
Treasury, Shares in treasury | 14,719,385 | 14,547,253 |
CONSOLIDATED_STATEMENTS_OF_LOS
CONSOLIDATED STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
REVENUE: | ' | ' | ' |
Tuition and registration fees | $1,040,987 | $1,316,848 | $1,650,050 |
Other | 16,373 | 28,032 | 55,531 |
Total revenue | 1,057,360 | 1,344,880 | 1,705,581 |
OPERATING EXPENSES: | ' | ' | ' |
Educational services and facilities | 406,285 | 489,858 | 544,708 |
General and administrative | 774,432 | 851,757 | 881,735 |
Depreciation and amortization | 68,640 | 74,737 | 76,387 |
Goodwill and asset impairment | 22,687 | 125,529 | 191,524 |
Total operating expenses | 1,272,044 | 1,541,881 | 1,694,354 |
Operating (loss) income | -214,684 | -197,001 | 11,227 |
OTHER (EXPENSE) INCOME: | ' | ' | ' |
Interest income | 1,361 | 1,199 | 689 |
Interest expense | -1,354 | -147 | -155 |
Loss on sale of business | -6,905 | ' | ' |
Miscellaneous income (expense) | 242 | -156 | 1,985 |
Total other (expense) income | -6,656 | 896 | 2,519 |
PRETAX (LOSS) INCOME | -221,340 | -196,105 | 13,746 |
(Benefit from) provision for income taxes | -19,672 | -47,150 | 42,457 |
LOSS FROM CONTINUING OPERATIONS | -201,668 | -148,955 | -28,711 |
INCOME FROM DISCONTINUED OPERATIONS, net of tax | 37,405 | 6,159 | 47,284 |
NET (LOSS) INCOME | -164,263 | -142,796 | 18,573 |
OTHER COMPREHENSIVE INCOME (LOSS), net of tax: | ' | ' | ' |
Foreign currency translation adjustments | 4,295 | 503 | -5,015 |
Unrealized losses on investments | -13 | -152 | -40 |
Total other comprehensive income (loss) | 4,282 | 351 | -5,055 |
COMPREHENSIVE (LOSS) INCOME | ($159,981) | ($142,445) | $13,518 |
NET (LOSS) INCOME PER SHARE-BASIC and DILUTED: | ' | ' | ' |
Loss from continuing operations | ($3.02) | ($2.24) | ($0.39) |
Income from discontinued operations | $0.56 | $0.09 | $0.64 |
Net (loss) income per share | ($2.46) | ($2.15) | $0.25 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | ' | ' | ' |
Basic and Diluted | 66,738 | 66,475 | 74,498 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Retained Earnings [Member] |
In Thousands, except Share data, unless otherwise specified | ||||||
BALANCE at Dec. 31, 2010 | $934,537 | $812 | ($191) | $576,853 | ($81) | $357,144 |
BALANCE, shares at Dec. 31, 2010 | ' | 81,220,000 | ' | ' | ' | ' |
BALANCE, shares at Dec. 31, 2010 | ' | ' | -11,000 | ' | ' | ' |
Net income (loss) | 18,573 | ' | ' | ' | ' | 18,573 |
Foreign currency translation gain | -5,015 | ' | ' | ' | -5,015 | ' |
Unrealized loss on investments | -40 | ' | ' | ' | -40 | ' |
Total comprehensive income (loss) | 13,518 | ' | ' | ' | ' | ' |
Treasury stock purchased | -150,445 | ' | -150,445 | ' | ' | ' |
Treasury stock purchased, shares | ' | ' | -8,056,000 | ' | ' | ' |
Share-based compensation expense: | ' | ' | ' | ' | ' | ' |
Stock option plans | 5,453 | ' | ' | 5,453 | ' | ' |
Restricted stock award plans | 8,978 | ' | ' | 8,978 | ' | ' |
Employee stock purchase plan | 400 | ' | ' | 400 | ' | ' |
Common stock issued under: | ' | ' | ' | ' | ' | ' |
Stock option plans | 2,069 | 2 | ' | 2,067 | ' | ' |
Stock option plans, shares | 141,625 | 141,625 | ' | ' | ' | ' |
Restricted stock award plans | -5,639 | 4 | -5,639 | -4 | ' | ' |
Restricted stock award plans, shares | ' | 425,000 | -278,000 | ' | ' | ' |
Employee stock purchase plan | 2,301 | 2 | ' | 2,299 | ' | ' |
Employee stock purchase plan, shares | 180,000 | 180,000 | ' | ' | ' | ' |
Tax effect of options exercised and stock settlements | -5,081 | ' | ' | -5,081 | ' | ' |
BALANCE at Dec. 31, 2011 | 806,091 | 820 | -156,275 | 590,965 | -5,136 | 375,717 |
BALANCE, shares at Dec. 31, 2011 | ' | 81,967,000 | ' | ' | ' | ' |
BALANCE, shares at Dec. 31, 2011 | ' | ' | -8,345,000 | ' | ' | ' |
Net income (loss) | -142,796 | ' | ' | ' | ' | -142,796 |
Foreign currency translation gain | 503 | ' | ' | ' | 503 | ' |
Unrealized loss on investments | -152 | ' | ' | ' | -152 | ' |
Total comprehensive income (loss) | -142,445 | ' | ' | ' | ' | ' |
Treasury stock purchased | -56,431 | ' | -56,431 | ' | ' | ' |
Treasury stock purchased, shares | ' | ' | -6,072,000 | ' | ' | ' |
Share-based compensation expense: | ' | ' | ' | ' | ' | ' |
Stock option plans | 2,907 | ' | ' | 2,907 | ' | ' |
Restricted stock award plans | 6,637 | ' | ' | 6,637 | ' | ' |
Employee stock purchase plan | 143 | ' | ' | 143 | ' | ' |
Common stock issued under: | ' | ' | ' | ' | ' | ' |
Stock option plans, shares | ' | ' | ' | ' | ' | ' |
Restricted stock award plans | -1,282 | -6 | -1,282 | 6 | ' | ' |
Restricted stock award plans, shares | ' | -557,000 | -130,000 | ' | ' | ' |
Employee stock purchase plan | 1,599 | 2 | ' | 1,597 | ' | ' |
Employee stock purchase plan, shares | 207,000 | 207,000 | ' | ' | ' | ' |
Tax effect of options exercised and stock settlements | -5,429 | ' | ' | -5,429 | ' | ' |
BALANCE at Dec. 31, 2012 | 611,790 | 816 | -213,988 | 596,826 | -4,785 | 232,921 |
BALANCE, shares at Dec. 31, 2012 | 81,616,987 | 81,616,987 | ' | ' | ' | ' |
BALANCE, shares at Dec. 31, 2012 | -14,547,253 | ' | -14,547,253 | ' | ' | ' |
Net income (loss) | -164,263 | ' | ' | ' | ' | -164,263 |
Foreign currency translation gain | 4,295 | ' | ' | ' | 4,295 | ' |
Unrealized loss on investments | -13 | ' | ' | ' | -13 | ' |
Total comprehensive income (loss) | -159,981 | ' | ' | ' | ' | ' |
Share-based compensation expense: | ' | ' | ' | ' | ' | ' |
Stock option plans | 2,308 | ' | ' | 2,308 | ' | ' |
Restricted stock award plans | 4,339 | ' | ' | 4,339 | ' | ' |
Employee stock purchase plan | 52 | ' | ' | 52 | ' | ' |
Common stock issued under: | ' | ' | ' | ' | ' | ' |
Stock option plans | 4 | ' | ' | 4 | ' | ' |
Stock option plans, shares | 1,275 | 1,275 | ' | ' | ' | ' |
Restricted stock award plans | -506 | -1 | -506 | 1 | ' | ' |
Restricted stock award plans, shares | ' | -131,000 | -172,000 | ' | ' | ' |
Employee stock purchase plan | 994 | 4 | ' | 990 | ' | ' |
Employee stock purchase plan, shares | 403,000 | 403,000 | ' | ' | ' | ' |
Tax effect of options exercised and stock settlements | -3,616 | ' | ' | -3,616 | ' | ' |
BALANCE at Dec. 31, 2013 | $455,384 | $819 | ($214,494) | $600,904 | ($503) | $68,658 |
BALANCE, shares at Dec. 31, 2013 | 81,889,907 | 81,889,907 | ' | ' | ' | ' |
BALANCE, shares at Dec. 31, 2013 | -14,719,385 | ' | -14,719,385 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net (loss) income | ($164,263) | ($142,796) | $18,573 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ' | ' | ' |
Goodwill and asset impairment | 22,691 | 127,007 | 191,524 |
Loss on sale of student receivables | ' | 720 | ' |
Depreciation and amortization expense | 73,150 | 81,813 | 85,367 |
Bad debt expense | 28,892 | 40,022 | 55,721 |
Compensation expense related to share-based awards | 6,699 | 9,687 | 14,831 |
Gain on sale of businesses, net | -123,204 | ' | -27,085 |
Gain on bargain purchase | ' | -669 | ' |
Loss (gain) on disposition of property and equipment | 118 | 301 | -1,711 |
Deferred income taxes | 58,087 | -42,014 | 14,226 |
Changes in operating assets and liabilities | ' | ' | ' |
Student receivables, gross | 56,072 | 17,913 | 29,917 |
Allowance for doubtful accounts | -39,766 | -57,908 | -81,666 |
Other receivables, net | -29,526 | -1,433 | -738 |
Inventories, prepaid expenses, and other current assets | 40,257 | 16,244 | 3,418 |
Deposits and other non-current assets | 12,244 | 1,654 | 3,356 |
Accounts payable | -8,463 | -11,984 | -3,803 |
Accrued expenses and deferred rent obligations | -4,885 | -19,473 | -74,075 |
Deferred tuition revenue | -13,907 | -35,882 | 2,595 |
Net cash (used in) provided by operating activities | -85,804 | -16,798 | 230,450 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Purchases of available-for-sale investments | -40,842 | -147,085 | -189,258 |
Sales of available-for-sale investments | 73,070 | 246,464 | 188,322 |
Purchases of property and equipment | -19,636 | -37,944 | -78,333 |
Proceeds on the sale of assets | ' | ' | 6,259 |
Proceeds on the sale of business, net of cash divested | 156,816 | ' | 16,670 |
Payments of cash upon sale of asset | -2,525 | ' | ' |
Business acquisitions, net of acquired cash | ' | -1,721 | -9,851 |
Other | -17 | -1,359 | -40 |
Net cash provided by (used in) investing activities | 166,866 | 58,355 | -66,231 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Purchase of treasury stock | ' | -56,431 | -150,445 |
Issuance of common stock | 998 | 1,599 | 4,370 |
Tax benefit associated with stock option exercises | 1 | ' | 376 |
Payments of assumed loans upon business acquisition | ' | -318 | ' |
Payments of contingent consideration | ' | -5,818 | -16,355 |
Borrowings from credit facility | ' | 80,000 | ' |
Payments on borrowings | -80,000 | ' | ' |
Change in restricted cash | 85,314 | -97,878 | ' |
Payments of capital lease obligations | -210 | -844 | -989 |
Net cash provided by (used in) financing activities | 6,103 | -79,690 | -163,043 |
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS: | -8,844 | -1,837 | -10,066 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 78,321 | -39,970 | -8,890 |
DISCONTINUED OPERATIONS CASH ACTIVITY INCLUDED ABOVE: | ' | ' | ' |
Add: Cash balance of discontinued operations, beginning of the year | 127,738 | 109,371 | 116,945 |
Less: Cash balance of discontinued operations, end of the year | ' | 127,738 | 109,371 |
CASH AND CASH EQUIVALENTS, beginning of the year | 112,884 | 171,221 | 172,537 |
CASH AND CASH EQUIVALENTS, end of the year | 318,943 | 112,884 | 171,221 |
Supplemental Cash Flow Information: | ' | ' | ' |
Interest paid | 517 | 205 | 116 |
Income taxes paid | $5,106 | $19,102 | $40,188 |
DESCRIPTION_OF_THE_COMPANY
DESCRIPTION OF THE COMPANY | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
DESCRIPTION OF THE COMPANY | ' |
1. DESCRIPTION OF THE COMPANY | |
The schools and universities that are part of the Career Education Corporation (“CEC”) family offer high-quality education to a diverse student population in a variety of career-oriented disciplines through online, on-ground and hybrid learning program offerings. We serve students from campuses throughout the United States, offering doctoral, master’s, bachelor’s and associate degrees and diploma and certificate programs. | |
Our institutions include, among others, American InterContinental University (“AIU”); Brooks Institute; Colorado Technical University (“CTU”); Harrington College of Design; International Academy of Design & Technology (“IADT”); Le Cordon Bleu North America (“LCB”); and Sanford-Brown Institutes and Colleges (“SBI” and “SBC”, respectively). Through our schools, we are committed to providing high-quality education, enabling students to graduate and pursue rewarding career opportunities. | |
Our website address is www.careered.com. The website includes a detailed listing of individual campus locations and web links to our schools and universities. | |
As used in this Annual Report on Form 10-K, the terms “we,” “us,” “our,” “the Company” and “CEC” refer to Career Education Corporation and our wholly-owned subsidiaries. The terms “school” and “university” refer to an individual, branded, proprietary educational institution, owned by us and includes its campus locations. The term “campus” refers to an individual main or branch campus operated by one of our schools or universities. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
a. Principles of Consolidation and Basis of Presentation | |
These consolidated financial statements include the accounts of CEC and our wholly-owned subsidiaries (collectively “CEC”). All inter-company transactions and balances have been eliminated. The results of operations of all acquired businesses have been consolidated for all periods subsequent to the date of acquisition. | |
b. Reclassifications | |
During 2013, we completed the sale of our International Segment (see Note 3 “Dispositions” of the notes to our consolidated financial statements for further discussion). Accordingly, the results of operations for our International Segment are reported within discontinued operations. Our remaining six reporting segments are: CTU, AIU (comprises University Schools); Health Education, Culinary Arts, Design & Technology (comprises Career Schools); and Transitional Schools (see Note 18 “Segment Reporting” for additional information). | |
During 2013, we announced the teach-out of six additional campuses, including four campuses within Health Education and two campuses within Design & Technology. These campuses, which employ a gradual teach-out process and no longer enroll new students, are now included within the Transitional Schools segment. As schools within Transitional Schools complete their teach-out and cease operations, the results of operations for all periods presented will be reflected within discontinued operations. During 2013 we completed the teach-out of four campuses, SBC Hazelwood, SBI Landover, SBC Milwaukee and IADT Schaumburg; accordingly, the results of operations for these schools are now reported within discontinued operations. | |
All prior period results have been recast to reflect our reporting segments on a comparable basis. | |
c. Management’s Use of Estimates | |
The preparation of financial statements in conformity with generally accepted accounting principles in the U.S. (“GAAP”) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reported period. Significant estimates, among others, include the allowance for doubtful accounts, the allocation of purchase price to the fair value of net assets and liabilities acquired in connection with business combinations, the assumptions surrounding sublease income utilized in determining the fair value of remaining lease obligations, assumptions utilized in calculating income tax related matters including our deferred tax balances and any respective valuation allowance, fair values used in asset impairment evaluations including goodwill, intangible assets and long-lived assets, and the assumptions used in determining the fair value of accruals for severance and related costs. Although these estimates are based upon management’s best knowledge of current events and actions that we may undertake in the future, actual results could differ from these estimates. | |
d. Concentration of Credit Risk | |
A substantial portion of credit extended to students is repaid through the students’ participation in various federal financial aid programs authorized by Title IV of the Higher Education Act of 1965, as amended (“HEA”), which we refer to as “Title IV Programs.” For the years ended December 31, 2013, 2012 and 2011, approximately 78%, 80% and 83% respectively, of our schools’ cash receipts from tuition payments came from Title IV Program funding. | |
Transfers of funds received from Title IV Programs are made in accordance with the U.S. Department of Education’s (“ED”) requirements. Changes in ED funding of Title IV Programs could have a material impact on our ability to attract students and the realizability of our student receivables. See Item 1A, “Risk Factors,” for further discussion of the risks associated with Title IV Programs. | |
e. Allowance for Doubtful Accounts | |
We extend unsecured credit to a portion of the students who are enrolled at our schools for tuition and certain other educational costs. Based upon past experience and judgment, we establish an allowance for doubtful accounts with respect to student receivables which we estimate will ultimately not be collectible. As such, our results from operations only reflect the amount of revenue that is estimated to be reasonably collectible. Our standard allowance estimation methodology considers a number of factors that, based on our collections experience, we believe have an impact on our credit risk and the realizability of our student receivables. Among these factors are a student’s status (in-school or out-of-school), anticipated funding source (third party, internal short-term and extended payment plans), whether or not an out-of-school student has completed his or her program of study, and our overall collections history. Out-of-school students include students who have withdrawn from or completed their programs of study. All other students are classified as in-school students. | |
We monitor our collections and write-off experience to assess whether or not adjustments to our allowance percentage estimates are necessary. Changes in trends in any of the factors that we believe impact the realizability of our student receivables, as noted above, or modifications to our credit standards, collection practices, and other related policies may impact our estimate of our allowance for doubtful accounts and our results from operations. Additionally, we monitor certain internal and external factors, including changes in our academic programs, as well as changes in the current economic, legislative and regulatory environments. | |
f. Fair Value of Financial Instruments | |
The carrying amounts for cash and cash equivalents, short-term investments, current portion of accounts receivables and accounts payable reported in our consolidated balance sheets approximate fair value because of the nature of these financial instruments, as they generally have short maturity periods. | |
The fair value measure of accounting for financial instruments establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | |
Our investment in auction rate securities (“ARS”) is presented within other non-current assets on the consolidated balance sheets. As of December 31, 2013, we have determined this investment is at risk for impairment due to the nature of the liquidity of the market over the past year. We believe this impairment is temporary, as we do not intend to sell the investment and it is unlikely we will be required to sell the investment before recovery of its amortized cost basis. | |
Our student receivables with repayment periods greater than one year are presented within non-current assets on the consolidated balance sheets. It is not practicable to estimate the fair value of these financial instruments, since observable market data is not readily available, and no reasonable estimation methodology exists. | |
g. Revenue Recognition | |
Our revenue, which is derived primarily from academic programs taught to students who attend our schools, is generally segregated into two categories: (1) tuition and registration fees and (2) other. Tuition and registration fees represent costs to our students for educational services provided by our schools. For certain schools, we bill students a one-time registration fee at the beginning of their program and recognize the registration fee revenue on a straight-line basis over that program period, which includes any applicable externship period. Our schools charge tuition at varying amounts, depending on the school, the type of program and specific curriculum. A majority of our schools bill students a single charge that covers tuition and required program materials, such as textbooks and supplies, which we treat as a single accounting unit. Generally, we bill student tuition fees, including those treated as a single accounting unit, at the beginning of each academic period, and recognize the tuition fees as revenue on a straight-line basis over either the academic term or program period, which includes any applicable externship period. The tuition fees earnings method is determined by the type of program a student is enrolled in. Typically, schools that offer our culinary arts and our health programs earn tuition fees over the entire program while the remainder of our schools earns tuition fees over each academic term. The portion of tuition and registration fee payments received from students but not yet earned is recorded as deferred tuition revenue and reported as a current liability on our consolidated balance sheets, as we expect to earn these revenues within the next year. Deferred tuition revenue is stated net of outstanding student receivables on a student-by-student basis as of the end of the reporting period. If a student withdraws from one of our schools prior to the completion of the academic term or program period, we refund the portion of tuition and registration fees already paid that, pursuant to our refund policy and applicable federal and state law and accrediting agency standards, we are not entitled to retain. Generally, the amount to be refunded to a student is calculated based upon the period of time the student has attended classes and the amount of tuition and registration fees paid by the student as of their withdrawal date. These refunds typically reduce deferred tuition revenue and cash on our consolidated balance sheets as we generally do not recognize tuition revenue in our consolidated statements of (loss) income and comprehensive (loss) income until the related refund provisions have lapsed. The portion of deferred revenue we are entitled to retain once a student withdraws is immediately recognized as revenue with a corresponding charge to bad debt expense for any amount deemed to be uncollectible. | |
Our schools’ academic year is generally at least 30 weeks in length but varies both by school and program of study and is divided by academic terms or payment periods. Academic terms or payment periods are determined by regulatory requirements mandated by the federal government and/or appropriate accrediting body, which also vary by school and program. Academic terms are determined by start dates, which also vary by school and program. Our students finance costs through a variety of funding sources, including, among others, federal loan and grant programs, school payment plans, private loans and grants, private and institutional scholarships and cash payments. | |
Other revenue, which consists primarily of bookstore sales for schools not using single-charge billing and contract-training revenue, is billed and recognized as goods are delivered or services are performed. | |
h. Cash and Cash Equivalents | |
Cash equivalents include short-term investments with a term to maturity of less than 90 days at the date of purchase. Loans which are disbursed under our current Credit Agreement are secured by 100% cash collateral. The Company has funds which are restricted in use and provide collateral for letters of credit. See Note 12 “Credit Agreements” for further details of our current amended and restated credit agreement and the original credit agreement. | |
i. Student Receivables | |
Student receivables represent funds owed to us in exchange for the education services that we provided to a student. Student receivables are reported net of an allowance for doubtful accounts and net of deferred tuition revenue, as determined on a student-by-student basis as of the end of the reporting period. Student receivables which are due to be paid in less than one year are recorded as current assets within our consolidated balance sheets. Student receivables which are due to be paid at dates ranging from one to six years from the balance sheet date are reported as non-current assets within our consolidated balance sheets. | |
Generally, a student receivable balance is written off once it reaches greater than 90 days past due. Although we analyze past due receivables, it is not practical to provide an aging of our non-current student receivable balances as a result of the methodology utilized in determining our earned student receivable balances. Student receivables are recognized on our consolidated balance sheets as they are deemed earned over the course of a student’s program and/or term, and therefore cash collections are not applied against specifically dated transactions. | |
j. Discontinued Operations | |
Discontinued operations are accounted for in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Section 360-10-35 Property, Plant, and Equipment. In accordance with FASB ASC Section 360-10-35, the net assets of discontinued operations are recorded on our consolidated balance sheets at estimated fair value. The results of operations of discontinued operations are segregated from continuing operations and reported separately as discontinued operations in our consolidated statements of (loss) income and comprehensive (loss) income. See Note 5 “Discontinued Operations” of the notes to our consolidated financial statements for further discussion. | |
k. Investments | |
Our investments, which primarily consist of U.S. Treasury bills, are classified as “available-for-sale” and recorded at fair value. Any unrealized holding gains or temporary unrealized holding losses, net of income tax effects, are reported as a component of accumulated other comprehensive loss within stockholders’ equity. Realized gains and losses are computed on the basis of specific identification and are included in miscellaneous income (expense) in our consolidated statements of (loss) income and comprehensive (loss) income. Our investment in a municipal auction rate security has a stated term to maturity of greater than one year. As such, we classify this investment as non-current on our consolidated balance sheets within other assets. | |
l. Inventories | |
Inventories, consisting principally of program materials, textbooks, food, and supplies, are stated at the lower of cost, determined on a first-in, first-out basis, or market. The cost of inventory is reflected as a component of educational services and facilities expense as the items are used or sold. | |
m. Property and Equipment | |
Property and equipment are stated at cost less accumulated depreciation. Depreciation and amortization are recognized using the straight-line method over the estimated useful lives of the related assets for financial reporting purposes and an accelerated method for income tax reporting purposes. Leasehold improvements and assets recorded under capital leases are amortized on a straight-line basis over the shorter of the life of the lease or the useful life. Maintenance, repairs, minor renewals, and betterments are expensed as incurred, and major improvements, which extend the useful life of the asset, are capitalized. | |
n. Goodwill and Intangible Assets | |
Goodwill represents the excess of cost over fair market value of identifiable net assets acquired through business purchases. In accordance with FASB ASC Topic 350 – Intangibles-Goodwill and Other, we review goodwill for impairment on at least an annual basis by applying a fair-value-based test. In evaluating the recoverability of the carrying value of goodwill, we must make assumptions regarding the fair value of our reporting units, as defined under FASB ASC Topic 350. Goodwill is evaluated using a two-step impairment test at the reporting unit level. A reporting unit can be a strategic business unit or business within a strategic business unit. The first step compares the book value of a reporting unit, including goodwill, with its fair value, as determined by a combination of income and market approach valuation methodologies. If the book value of a reporting unit exceeds its fair value, we complete the second step to determine the amount of goodwill impairment loss that we should record. In the second step, we determine an implied fair value of the reporting unit’s goodwill by allocating the fair value of the reporting unit to all of the assets and liabilities other than goodwill (including any unrecognized intangible assets). The amount of impairment loss is equal to the excess of the book value of the goodwill over the implied fair value of goodwill. | |
In performing our annual review of goodwill balances for impairment, we estimate the fair value of each of our reporting units based on projected future operating results and cash flows, market assumptions and comparative market multiple methods. Determining fair value requires significant estimates and assumptions based on an evaluation of a number of factors, such as marketplace participants, relative market share, new student interest, student retention, future expansion or contraction expectations, amount and timing of future cash flows and the discount rate applied to the cash flows. Projected future operating results and cash flows used for valuation purposes do reflect improvements relative to recent historical periods with respect to, among other things, revenue growth and operating margins. Although we believe our projected future operating results and cash flows and related estimates regarding fair values are based on reasonable assumptions, historically projected operating results and cash flows have not always been achieved. The failure of one of our reporting units to achieve projected operating results and cash flows in the near term or long term may reduce the estimated fair value of the reporting unit below its carrying value and result in the recognition of a goodwill impairment charge. Significant management judgment is necessary to evaluate the impact of operating and macroeconomic changes and to estimate future cash flows. Assumptions used in our impairment evaluations, such as forecasted growth rates and our cost of capital, are based on the best available market information and are consistent with our internal forecasts and operating plans. In addition to cash flow estimates, our valuations are sensitive to the rate used to discount cash flows and future growth assumptions. These assumptions could be adversely impacted by certain of the risks discussed in “Risk Factors” in Item 1A. | |
Intangible assets include both indefinite and definite-lived assets. Indefinite-lived assets include our trade names and accreditation rights, which are recorded at fair market value upon acquisition and subsequently reviewed on an annual basis for impairment. Accreditation rights represent the ability of our schools to participate in Title IV Programs. | |
Our definite-lived assets include courseware, which represents the value of acquired curriculum, including lesson plans and syllabi, used to deliver educational services. Acquired courseware balances are amortized on a straight-line basis over their useful lives, which are estimated by management based upon, among other things, the expected future utilization period and the nature of the related academic programs. Other definite-lived intangible assets represent ownership related to renewable internet domain names and are amortized on a straight-line basis over the applicable renewal periods. | |
See Note 10 “Goodwill and Other Intangible Assets” of the notes to our consolidated financial statements for further discussion. | |
o. Impairment of Long-Lived Assets | |
We review property and equipment, definite-lived intangible assets, and other long-lived assets for impairment on an annual basis or whenever adverse events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. If such adverse events or changes in circumstances occur, we will recognize an impairment loss if the undiscounted future cash flows expected to be generated by the assets are less than the carrying value of the related assets. The impairment loss would reduce the carrying value of the assets to their estimated fair value. | |
See Note 8 “Property and Equipment” of the notes to our consolidated financial statements for further discussion. | |
p. Contingencies | |
During the ordinary course of business, we are subject to various claims and contingencies. In accordance with FASB ASC Topic 450 – Contingencies, when we become aware of a claim or potential claim, we assess the likelihood of any related loss or exposure. The probability of whether an asset has been impaired or a liability has been incurred, and whether the amount of loss can be reasonably estimated, is analyzed, and if the loss contingency is both probable and reasonably estimable, then we accrue for costs, including direct costs incurred, associated with the loss contingency. If no accrual is made but the loss contingency is reasonably possible, we disclose the nature of the contingency and the related estimate of possible loss or range of loss if such an estimate can be made. For all matters that are currently being reviewed, we expense legal fees, including defense costs, as they are incurred. Loss contingencies include, but are not limited to, possible losses related to legal proceedings and regulatory compliance matters, and our assessment of exposure requires subjective and judgmental assessment. Liabilities established to provide for contingencies are adjusted as further information develops, circumstances change, or contingencies are resolved. See Note 13 “Commitments and Contingencies” of the notes to our consolidated financial statements for additional information. | |
q. Income Taxes | |
We are subject to the income tax laws of the U.S. and various state, local and foreign jurisdictions. These tax laws are complex and subject to interpretation. As a result, significant judgments and interpretations are required in determining our income tax (benefits) provisions and evaluating our uncertain tax positions. | |
We account for income taxes in accordance with FASB ASC Topic 740 – Income Taxes. Topic 740 requires the recognition of deferred income tax assets and liabilities based upon the income tax consequences of temporary differences between financial reporting and income tax reporting by applying enacted statutory income tax rates applicable to future years to differences between the financial statement carrying amounts and the income tax basis of existing assets and liabilities. Topic 740 also requires that deferred income tax assets be reduced by a valuation allowance if it is more likely than not that some portion of the deferred income tax asset will not be realized. | |
In assessing the need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. Topic 740 provides that important factors in determining whether a deferred tax asset will be realized are whether there has been sufficient taxable income in recent years and whether sufficient taxable income is expected in future years in order to utilize the deferred tax asset. In evaluating the realizability of deferred income tax assets, we consider, among other things, historical levels of taxable income along with possible sources of future taxable income, which include: the expected timing of the reversals of existing temporary reporting differences, the existence of taxable income in prior carryback year(s), the expected impact of tax planning strategies that may be implemented to prevent the potential loss of future income tax benefits and expected future taxable income. Changes in, among other things, income tax legislation, statutory income tax rates, or future taxable income levels could materially impact our valuation of income tax assets and liabilities and could cause our income tax provision to vary significantly among financial reporting periods. If, based on the weight of available evidence, it is more likely than not the deferred tax assets will not be realized, with placing less weight on projections for future growth as projections for future growth are less objectively verifiable, we record a valuation allowance. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence may be objectively verified. A high degree of judgment is required to determine if, and the extent to which, valuation allowances should be recorded against deferred tax assets. A significant piece of objective negative evidence evaluated is the cumulative loss incurred over the three-year period ended December 31, 2013. Such objective evidence limits the ability to consider other subjective evidence such as our projections for future growth as projections for future growth are less objectively verifiable. | |
Topic 740 further clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in an income tax return. Topic 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. | |
r. Deferred Rent Obligations | |
Certain of the real estate operating lease agreements to which we are party contain rent escalation clauses or lease incentives, such as rent abatements or tenant improvement allowances. Rent escalation clauses and lease incentives are taken into account in determining total rent expense to be recognized during the term of the lease, which begins on the date that we take control of the leased space. Renewal options are considered when evaluating the overall term of the lease. In accordance with FASB ASC Topic 840 – Leases, differences between periodic rent expense and periodic cash rental payments, caused primarily by the recognition of rent expense on a straight-line basis and tenant improvement allowances due or received from lessors, are recorded as deferred rent obligations on our consolidated balance sheets. | |
We record tenant improvement allowances as a deferred rent obligation on our consolidated balance sheets and as a cash inflow from operating activities in our consolidated statements of cash flows. We record capital expenditures funded by tenant improvement allowances received as a leasehold improvement on our consolidated balance sheets and as an investing activity within our consolidated statements of cash flows. | |
s. Share-Based Compensation | |
FASB ASC Topic 718 – Compensation-Stock Compensation requires that all share-based payments to employees and non-employee directors, including grants of stock options, shares or units of restricted stock, and the compensatory elements of employee stock purchase plans, be recognized in the financial statements based on the estimated fair value of the equity or liability instruments issued. | |
See Note 15 “Share-Based Compensation” of the notes to our consolidated financial statements for further discussion of our share-based compensation plans, the nature of share-based awards issued under the plans and our accounting for share-based awards. | |
t. Foreign Currency Translation | |
As of December 3, 2013, we sold and transferred control of our International Segment. For the years ended December 31, 2013, 2012 and 2011, revenues and expenses related to our foreign-based subsidiaries have been translated into U.S. dollars using average exchange rates during the reporting period, with transaction gains or losses included in net (loss) income. The aggregate transaction gains or losses included in net (loss) income for the years ended December 31, 2012 and 2011 were not significant. During 2013, we reclassified $10.0 million of cumulative translation adjustments from our International schools and AIU London as part of the gain (loss) on sale of those operations in accordance with FASB ASC Topic 810 – Consolidation. The assets and liabilities of our International subsidiaries remaining as of each balance sheet date have been translated into U.S. dollars using exchange rates in effect at the balance sheet dates, with gains and losses resulting from such translations included in accumulated other comprehensive loss. Accumulated other comprehensive loss included a comprehensive loss related to foreign currency translations of less than $0.1 million for the year ended December 31, 2013 and $4.3 million for the year ended December 31, 2012. The functional currency of each of our foreign subsidiaries is its local currency. See Note 3 “Dispositions” of the notes to our consolidated financial statements for additional information. | |
u. Educational Services and Facilities Expense | |
Educational services and facilities expense includes costs directly attributable to the educational activities of our schools, including: (1) salaries and benefits of faculty, academic administrators, and student support personnel, (2) costs of educational supplies and facilities, including rents on school leases, certain costs of establishing and maintaining computer laboratories, costs of student housing, and owned and leased facility costs, and (3) costs of other goods and services provided by our schools, including costs of textbooks, laptop computers, restaurant services and contract training. Costs of such other goods and services for continuing operations, included in educational services and facilities expense in our consolidated statements of (loss) income and comprehensive (loss) income, were approximately $39.7 million, $55.8 million and $79.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |
v. Advertising Costs | |
Advertising costs are expensed as incurred. Advertising costs for continuing operations, which are included in general and administrative expenses in our consolidated statements of (loss) income and comprehensive (loss) income, were $272.0 million, $302.0 million and $276.3 million, for the years ended December 31, 2013, 2012 and 2011, respectively. |
DISPOSITIONS
DISPOSITIONS | 12 Months Ended |
Dec. 31, 2013 | |
Text Block [Abstract] | ' |
DISPOSITIONS | ' |
3. DISPOSITIONS | |
International Segment | |
On December 3, 2013, we completed the sale and transfer of control of our International Segment, which consisted of our INSEEC schools and the International University of Monaco located in France and Monaco, respectively. This sale reflects our strategy to redeploy our assets to rebuild our domestic educational institutions and improve our options for accelerating growth. The total consideration for the International Segment pursuant to the Purchase Agreement was $305.0 million, less certain distributions and adjustments prior to closing, which resulted in a cash payment of $276.5 million received at closing. | |
We realized a gain on the sale of $130.1 million, net of approximately $8.9 million of transaction costs, which represents the difference between the proceeds received and the book value of the net assets sold. Included in the net assets of the International Segment was a $6.7 million cumulative translation loss resulting from the effects of foreign currency on the balance sheet. This loss had previously been recorded within accumulated other comprehensive loss as a component of stockholders’ equity. The income tax expense associated with the gain approximates $87.9 million, of which $39.9 million was recorded during the third quarter of 2013 once we determined that our investment in foreign subsidiaries was no longer permanent in duration. The $39.9 million represented the tax effect of the difference in basis for financial reporting versus tax reporting. The gain, net of tax, is included in income from discontinued operations, net of tax on our consolidated statements of (loss) income and comprehensive (loss) income. See Note 5 “Discontinued Operations” of the notes to our consolidated financial statements for further discussion. | |
AIU London | |
On April 1, 2013, we completed the sale of our AIU campus in London, England. AIU London is considered to be part of the AIU asset group and as such the sale has been reported within continuing operations in accordance with FASB ASC Topic 205 – Presentation of Financial Statements. We received no consideration for the sale of AIU London resulting in a fair market value of zero and recorded a loss on sale of $6.9 million for the year ended December 31, 2013. This loss is reported within other (expense) income on our statements of (loss) income and comprehensive (loss) income. The terms of the sales agreement provided that we make payments to offset future rent payments made by the buyer related to leases assigned to the buyer; accordingly, these amounts were included in the loss calculation. Also included in the loss on the sale was approximately $3.3 million of expense related to the cumulative translation loss resulting from the effects of foreign currency on AIU London’s balance sheet as of the date of sale. This loss had previously been recorded within accumulated other comprehensive loss as a component of stockholders’ equity. |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Changes And Error Corrections [Abstract] | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
4. RECENT ACCOUNTING PRONOUNCEMENTS | |
In July 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This ASU standardizes the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists; it does not require new recurring disclosures. ASU 2013-11 requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward unless specific criteria exist, in which case the unrecognized tax benefit should be presented as a liability and should not be combined with deferred tax assets. For public entities, ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013; early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date; retrospective application is permitted. We are currently evaluating this guidance and do not believe the adoption will significantly impact the presentation of our financial condition, results of operation and disclosures. | |
In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. ASU 2013-05 provides guidance on releasing cumulative translation adjustments (“CTA”) when an entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity, and also provides guidance on releasing CTA in partial sales of equity method investments and in step acquisitions. For public entities, ASU 2013-05 is effective prospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2013. If early adoption is elected, the guidance in this ASU should be applied as of the beginning of the entity’s fiscal year of adoption. We have evaluated this guidance and do not believe the adoption will significantly impact the presentation of our financial condition, results of operation and disclosures. | |
In February 2013, the FASB issued ASU No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date. The guidance in ASU 2013-04 requires entities to measure obligations resulting from joint and several liability arrangements, for which the total obligation amount is fixed at the reporting date, as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount it expects to pay on behalf of its co-obligors. ASU 2013-04 also specifies disclosure requirements. For public entities, ASU 2013-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 and should be applied retrospectively to all prior periods presented for obligations resulting from joint and several liability arrangements that exist at the beginning of the entity’s fiscal year of adoption. Early adoption is permitted. We have adopted this guidance which did not materially impact the presentation of our financial condition, results of operation and disclosures. | |
In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220) – Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in this ASU require entities to provide information about amounts reclassified out of accumulated other comprehensive income by component, and to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, or cross-reference to other disclosures, based on certain criteria. ASU 2013-02 is effective prospectively for reporting periods beginning after December 15, 2012; early adoption is permitted. We have adopted this guidance which did not materially impact the presentation of our financial condition, results of operation and disclosures. | |
In addition, we have evaluated and adopted the guidance of ASU No. 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment issued in July 2012. The amendments in this ASU give entities the option to first assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that an indefinite-lived intangible asset is impaired. If impairment is indicated, the fair value of the indefinite-lived intangible asset should be determined and the quantitative impairment test should be performed by comparing the fair value with the carrying amount in accordance with Subtopic 350-30; if impairment is not indicated, the entity is not required to take further action. The adoption of this ASU did not impact the presentation of our financial condition, results of operation and disclosures. |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | ' | ||||||||||||||||||||
DISCONTINUED OPERATIONS | ' | ||||||||||||||||||||
5. DISCONTINUED OPERATIONS | |||||||||||||||||||||
As of December 31, 2013, the results of operations for campuses that have ceased operations or schools that were sold, and are considered distinct operations as defined under FASB ASC Topic 205 — Presentation of Financial Statements, are presented within discontinued operations. During the fourth quarter of 2013, we completed the sale of our International Segment. See Note 3 “Dispositions” of the notes to our consolidated financial statements for further discussion. During 2013, we completed the teach-out of our SBC Hazelwood, SBI Landover, SBC Milwaukee and IADT Schaumburg campuses. All current and prior period financial statements include the results of operations and financial position of these campuses as components of discontinued operations. | |||||||||||||||||||||
Results of Discontinued Operations | |||||||||||||||||||||
Combined summary results of operations for our discontinued operations for the years ended December 31, 2013, 2012 and 2011, were as follows (dollars in thousands): | |||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2013 (1) | 2012 (2) | 2011 (3) | |||||||||||||||||||
Revenue | $ | 137,661 | $ | 145,684 | $ | 210,656 | |||||||||||||||
Pretax income | $ | 126,010 | $ | 2,193 | $ | 48,895 | |||||||||||||||
Income tax provision (benefit) | 88,605 | (3,966 | ) | 1,611 | |||||||||||||||||
Income from discontinued operations, net of tax | $ | 37,405 | $ | 6,159 | $ | 47,284 | |||||||||||||||
-1 | The income tax expense associated with the gain on sale of our International Segment approximates $87.9 million, of which $39.9 million was recorded during the third quarter of 2013 once we determined that our investment in foreign subsidiaries was no longer permanent in duration. The $39.9 million represented the tax effect of the difference in basis for financial reporting versus tax reporting. | ||||||||||||||||||||
-2 | 2012 pretax income includes income for non-profit entities within our International Schools, which are not subject to income tax. This income is partially offset with losses from our domestic schools, which are subject to income tax. As a result, a net tax benefit is reported for 2012. | ||||||||||||||||||||
-3 | During the year ended December 31, 2011, we completed the sale of our Istituto Marangoni schools in Milan, Paris and London resulting in a pretax gain of approximately $27.1 million. The income tax provision for fiscal 2011 included $0.3 million of income tax expense related to this sale. The tax gain related to this transaction was significantly less than the gain reflected within the income before income tax for fiscal 2011 due to the $20.2 million of goodwill which was allocated to the remainder of the International reporting unit for book purposes, but which was included in the net assets sold for purposes of calculating the taxable gain. | ||||||||||||||||||||
Assets and Liabilities of Discontinued Operations | |||||||||||||||||||||
Assets and liabilities of discontinued operations on our consolidated balance sheets as of December 31, 2013 and 2012 include the following (dollars in thousands): | |||||||||||||||||||||
As of December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Assets: | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 127,738 | |||||||||||||||||
Receivables, net | 213 | 16,928 | |||||||||||||||||||
Other current assets | 50 | 6,458 | |||||||||||||||||||
Deferred income tax assets, net | — | 3,454 | |||||||||||||||||||
Total current assets | 263 | 154,578 | |||||||||||||||||||
Non-current assets: | |||||||||||||||||||||
Property and equipment, net | — | 29,790 | |||||||||||||||||||
Goodwill | — | 45,669 | |||||||||||||||||||
Intangible assets, net | — | 5,675 | |||||||||||||||||||
Deferred income tax assets | — | 17,804 | |||||||||||||||||||
Other assets, net | 1,200 | 4,606 | |||||||||||||||||||
Total assets of discontinued operations | $ | 1,463 | $ | 258,122 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Current maturities of capital lease obligations | $ | — | $ | 211 | |||||||||||||||||
Accounts payable | 10 | 6,378 | |||||||||||||||||||
Accrued expenses | 325 | 18,110 | |||||||||||||||||||
Deferred tuition revenue | — | 42,363 | |||||||||||||||||||
Remaining lease obligations | 11,275 | 9,174 | |||||||||||||||||||
Total current liabilities | 11,610 | 76,236 | |||||||||||||||||||
Non-current liabilities: | |||||||||||||||||||||
Remaining lease obligations | 27,507 | 33,103 | |||||||||||||||||||
Other | 75 | 2,836 | |||||||||||||||||||
Total liabilities of discontinued operations | $ | 39,192 | $ | 112,175 | |||||||||||||||||
Remaining Lease Obligations | |||||||||||||||||||||
A number of the campuses that ceased operations have remaining lease obligations that expire over time with the latest expiration in 2019. A liability is recorded representing the fair value of the remaining lease obligation at the time the space is no longer being utilized. Changes in our future remaining lease obligations, which are reflected within current and non-current liabilities of discontinued operations on our consolidated balance sheets, for the years ended December 31, 2013, 2012 and 2011, were as follows (dollars in thousands): | |||||||||||||||||||||
Balance, | Charges | Net Cash | Other(3) | Balance, | |||||||||||||||||
Beginning | Incurred(1) | Payments(2) | End of | ||||||||||||||||||
of Period | Period | ||||||||||||||||||||
For the twelve months ended December 31, 2013 | $ | 42,277 | $ | 8,551 | $ | (12,323 | ) | $ | 277 | $ | 38,782 | ||||||||||
For the twelve months ended December 31, 2012 | $ | 45,961 | $ | 7,371 | $ | (11,055 | ) | $ | — | $ | 42,277 | ||||||||||
For the twelve months ended December 31, 2011 | $ | 50,827 | $ | 7,636 | $ | (11,035 | ) | $ | (1,467 | ) | $ | 45,961 | |||||||||
-1 | Includes charges for newly vacated spaces and subsequent adjustments for accretion, revised estimates, and variances between estimated and actual charges, net of any reversals for terminated lease obligations. | ||||||||||||||||||||
-2 | See Note 9 “Leases” of the notes to our consolidated financial statements for the future minimum lease payments under operating leases for discontinued operations as of December 31, 2013. | ||||||||||||||||||||
-3 | Includes existing prepaid rent and deferred rent liability balances for newly vacated spaces that are netted with the losses incurred in the period recorded. |
CASH_AND_CASH_EQUIVALENTS_AND_
CASH AND CASH EQUIVALENTS AND INVESTMENTS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Cash And Cash Equivalents [Abstract] | ' | ||||||||||||||||||||
CASH AND CASH EQUIVALENTS AND INVESTMENTS | ' | ||||||||||||||||||||
6. CASH AND CASH EQUIVALENTS AND INVESTMENTS | |||||||||||||||||||||
Cash and cash equivalents from our continuing operations consist of the following as of December 31, 2013 and 2012 (dollars in thousands): | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Cash | $ | 155,938 | $ | 112,763 | |||||||||||||||||
Money market funds | 163,005 | 121 | |||||||||||||||||||
Cash and cash equivalents, unrestricted | 318,943 | 112,884 | |||||||||||||||||||
Restricted cash | 12,564 | 97,878 | |||||||||||||||||||
Total cash and cash equivalents | $ | 331,507 | $ | 210,762 | |||||||||||||||||
Restricted cash balances as of December 31, 2013 and 2012 total $12.6 million and $97.9 million, respectively. Restricted cash balances were comprised of $12.6 million and $7.4 million of certificates of deposit to provide securitization of our letters of credit as of December 31, 2013 and 2012, respectively. Additionally, $88.0 million and $2.5 million of restricted cash to provide securitization of borrowings under our previous credit agreement and funds restricted for a legal matter, respectively, were included in restricted cash balances as of December 31, 2012. | |||||||||||||||||||||
Investments from our continuing operations consist of the following as of December 31, 2013 and 2012 (dollars in thousands): | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Gross Unrealized | |||||||||||||||||||||
Cost | Gain | (Loss) | Fair Value | ||||||||||||||||||
Short-term investments (available for sale): | |||||||||||||||||||||
U.S. Treasury bills | $ | 31,591 | $ | 1 | $ | — | $ | 31,592 | |||||||||||||
Long-term investments (available for sale): | |||||||||||||||||||||
Municipal bond | 7,850 | — | (476 | ) | 7,374 | ||||||||||||||||
Total investments (available for sale) | $ | 39,441 | $ | 1 | $ | (476 | ) | $ | 38,966 | ||||||||||||
December 31, 2012 | |||||||||||||||||||||
Gross Unrealized | |||||||||||||||||||||
Cost | Gain | (Loss) | Fair Value | ||||||||||||||||||
Short-term investments (available for sale): | |||||||||||||||||||||
U.S. Treasury bills | $ | 63,879 | $ | 4 | $ | (7 | ) | $ | 63,876 | ||||||||||||
Long-term investments (available for sale): | |||||||||||||||||||||
Municipal bond | 7,850 | — | (468 | ) | 7,382 | ||||||||||||||||
Total investments (available for sale) | $ | 71,729 | $ | 4 | $ | (475 | ) | $ | 71,258 | ||||||||||||
In the table above, unrealized holding losses as of December 31, 2013 relate to short-term investments that have been in a continuous unrealized loss position for less than one year. The table also includes an unrealized holding loss, greater than one year that relates to our long-term investment in a municipal bond, which is an auction rate security (“ARS”). When evaluating our investment for possible impairment, we review factors such as the length of time and extent to which fair value has been less than the cost basis, the financial condition of the investee, and our ability and intent to hold the investment for a period of time that may be sufficient for anticipated recovery in fair value. The unrealized loss attributable to our municipal bond at December 31, 2013 is attributable to the continued lack of activity in the ARS market, exposing this investment to liquidity risk. | |||||||||||||||||||||
Our municipal bond is comprised of debt obligations issued by states, cities, counties, and other governmental entities, which earn federally tax-exempt interest. Our investment in ARS has a stated term to maturity of greater than one year, and as such, we classify our investment in ARS as non-current on our consolidated balance sheets within other assets. Auctions can “fail” when the number of sellers of the security exceeds the buyers for that particular auction period. In the event that an auction fails, the interest rate resets at a rate based on a formula determined by the individual security. The ARS for which auctions have failed continues to accrue interest and is auctioned on a set interval until the auction succeeds, the issuer calls the security, or it matures. As of December 31, 2013, we have determined this investment is at risk for impairment due to the nature of the liquidity of the market over the past year. Cumulative unrealized losses as of December 31, 2013 amount to $0.5 million and are reflected within accumulated other comprehensive loss as a component of stockholders’ equity. We believe this impairment is temporary, as we do not intend to sell the investment and it is unlikely we will be required to sell the investment before recovery of its amortized cost basis. | |||||||||||||||||||||
A schedule of available-for-sale investments segregated by their original stated terms to maturity as of December 31, 2013 and 2012, are as follows (dollars in thousands): | |||||||||||||||||||||
Less than | One to five | Five to ten | Greater than | Total | |||||||||||||||||
one year | years | years | ten years | ||||||||||||||||||
Original stated term to maturity of available-for-sale-investments as of December 31, 2013 | $ | 31,592 | $ | — | $ | — | $ | 7,374 | $ | 38,966 | |||||||||||
Original stated term to maturity of available-for-sale-investments as of December 31, 2012 | $ | 63,876 | $ | — | $ | — | $ | 7,382 | $ | 71,258 | |||||||||||
Realized gains or losses resulting from sales of investments during the years ended December 31, 2013, 2012 and 2011 were not significant. | |||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||
FASB ASC Topic 820 – Fair Value Measurements establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | |||||||||||||||||||||
As of December 31, 2013, we held investments that are required to be measured at fair value on a recurring basis. These investments (available-for-sale) consist of U.S. Treasury bills that are publicly traded and for which market prices are readily available, and our investment in a municipal bond. The auction event for our municipal bond investment has failed for multiple years. The fair value of the municipal bond is estimated utilizing a discounted cash flow analysis as of December 31, 2013 which considers, among other items, the collateralization underlying the security investment, the credit worthiness of the counterparty, the timing of expected future cash flows, and the expectation of the next time the security is expected to have a successful auction. This security was also compared, when possible, to other observable market data with similar characteristics. | |||||||||||||||||||||
Investments measured at fair value on a recurring basis subject to the disclosure requirements of FASB ASC Topic 820 at December 31, 2013 and 2012 were as follows (dollars in thousands): | |||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
U.S. Treasury bills | $ | 31,592 | $ | — | $ | — | $ | 31,592 | |||||||||||||
Municipal bond | — | — | 7,374 | 7,374 | |||||||||||||||||
Totals | $ | 31,592 | $ | — | $ | 7,374 | $ | 38,966 | |||||||||||||
As of December 31, 2012 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
U.S. Treasury bills | $ | 63,876 | $ | — | $ | — | $ | 63,876 | |||||||||||||
Municipal bond | — | — | 7,382 | 7,382 | |||||||||||||||||
Totals | $ | 63,876 | $ | — | $ | 7,382 | $ | 71,258 | |||||||||||||
The following table presents a rollforward of our assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as defined in FASB ASC Topic 820 for the year to date ended December 31, 2013 (dollars in thousands): | |||||||||||||||||||||
Balance at December 31, 2012 | $ | 7,382 | |||||||||||||||||||
Unrealized loss | (8 | ) | |||||||||||||||||||
Balance at December 31, 2013 | $ | 7,374 | |||||||||||||||||||
STUDENT_RECEIVABLES
STUDENT RECEIVABLES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||
STUDENT RECEIVABLES | ' | ||||||||||||||||
7. STUDENT RECEIVABLES | |||||||||||||||||
Student receivables represent funds owed to us in exchange for the educational services provided to a student. Student receivables are reflected net of an allowance for doubtful accounts and net of deferred tuition revenue. Student receivables, net are reflected on our consolidated balance sheets as components of both current and non-current assets. We do not accrue interest on past due student receivables; interest is recorded only upon collection. | |||||||||||||||||
Generally, a student receivable balance is written off once it reaches greater than 90 days past due. Although we analyze past due receivables, it is not practical to provide an aging of our non-current student receivable balances as a result of the methodology utilized in determining our earned student receivable balances. Student receivables are recognized on our consolidated balance sheets as they are deemed earned over the course of a student’s program and/or term, and therefore cash collections are not applied against specifically dated transactions. | |||||||||||||||||
Our standard student receivable allowance estimation methodology considers a number of factors that, based on our collection experience, we believe have an impact on our repayment risk and ability to collect student receivables. Changes in the trends in any of these factors may impact our estimate of the allowance for doubtful accounts. These factors include, but are not limited to: internal repayment history, repayment practices of previous extended payment programs and information provided by a third-party institution who previously offered similar extended payment programs, changes in the current economic, legislative or regulatory environments and credit worthiness of our students. These factors are monitored and assessed on a regular basis. Overall, our allowance estimation process for student receivables is validated by trending analysis and comparing estimated and actual performance. The repayment risk associated with student receivables under extended payment plans is generally higher than those not related to extended payment plans; as such, the allowance for doubtful accounts for these student receivables as a percentage of outstanding student receivables is higher. | |||||||||||||||||
Student Receivables Under Extended Payment Plans and Recourse Loan Agreements | |||||||||||||||||
To assist students in completing their educational programs, we had previously provided extended payment plans to certain students and also had loan agreements with Sallie Mae and Stillwater National Bank and Trust Company (“Stillwater”) which required us to repurchase loans originated by them to our students after a certain period of time. We discontinued providing extended payment plans to students during the first quarter of 2011 and the recourse loan agreements with Sallie Mae and Stillwater ended in March 2008 and April 2007, respectively. | |||||||||||||||||
As of December 31, 2013 and December 31, 2012, the amount of non-current student receivables under these programs, net of allowance for doubtful accounts and net of deferred tuition revenue, was $5.2 million and $6.8 million, respectively. | |||||||||||||||||
Student Receivables Valuation Allowance | |||||||||||||||||
Changes in our current and non-current receivables allowance for the years ended December 31, 2013, 2012 and 2011 were as follows (dollars in thousands): | |||||||||||||||||
Balance, | Charges to | Amounts | Balance, | ||||||||||||||
Beginning | Expense (1) | Written-off | End of | ||||||||||||||
of Period | Period | ||||||||||||||||
For the year ended December 31, 2013 | $ | 39,865 | $ | 27,641 | $ | (39,419 | ) | $ | 28,087 | ||||||||
For the year ended December 31, 2012 | $ | 56,325 | $ | 37,949 | $ | (54,409 | ) | $ | 39,865 | ||||||||
For the year ended December 31, 2011 | $ | 83,028 | $ | 50,699 | $ | (77,402 | ) | $ | 56,325 | ||||||||
-1 | Charges to expense include an offset for recoveries of amounts previously written off of $7.5 million, $7.8 million and $8.8 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
The carrying amount reported in our consolidated balance sheets for the current portion of student receivables approximates fair value because of the nature of these financial instruments as they generally have short maturity periods. It is not practicable to estimate the fair value of the non-current portion of student receivables, since observable market data is not readily available, and no reasonable estimation methodology exists. |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||
PROPERTY AND EQUIPMENT | ' | ||||||||||
8. PROPERTY AND EQUIPMENT | |||||||||||
The cost basis and estimated useful lives of property and equipment for continuing operations as of December 31, 2013 and 2012 are as follows (dollars in thousands): | |||||||||||
December 31, | |||||||||||
2013 | 2012 | Life | |||||||||
Land | $ | 2,388 | $ | 2,388 | |||||||
Building and improvements | 8,547 | 8,534 | 15-35 years | ||||||||
Computer hardware and software | 148,927 | 152,910 | 3 years | ||||||||
Culinary equipment and library materials | 21,570 | 21,957 | 10 years | ||||||||
Furniture, fixtures and equipment | 127,471 | 135,276 | 5-10 years | ||||||||
Leasehold improvements | 370,769 | 383,068 | Shorter of Life of Lease | ||||||||
or Useful Life | |||||||||||
Vehicles | 868 | 906 | 5 years | ||||||||
Construction in progress | 1,032 | 1,838 | |||||||||
681,572 | 706,877 | ||||||||||
Less-Accumulated depreciation | (499,176 | ) | (459,089 | ) | |||||||
Total property and equipment, net | $ | 182,396 | $ | 247,788 | |||||||
Depreciation expense for continuing operations for the years ended December 31, 2013, 2012 and 2011, was $67.4 million, $73.3 million and $70.8 million, respectively. Depreciation expense for discontinued operations, included in income from discontinued operations, was $4.4 million, $6.1 million and $7.6 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||
Property and equipment was affected by asset impairment charges of approximately $8.0 million for the year ended December 31, 2013 and $29.5 million for the year ended December 31, 2012, of which $2.6 million and $28.5 million, respectively, related to asset impairment charges as a result of the reduction in carrying values for schools that are being taught out. An additional $2.7 million of impairment was recorded for certain long-lived assets related to ongoing schools which are expected to generate negative cash flows through the respective lease end dates and as such the carrying values were not recoverable. The fair value for these assets was determined based upon management’s assumptions regarding an estimated percentage of replacement value for similar assets and estimated salvage values. Because the determination of the estimated fair value of these assets requires significant estimation and assumptions, these fair value measurements are categorized as Level 3 per ASC Topic 820. | |||||||||||
In addition, we recorded $2.7 million and $1.0 million during the years ended December 31, 2013 and 2012 in asset impairment charges related to leased facilities as a result of decisions made to exit certain facilities. |
LEASES
LEASES | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Leases [Abstract] | ' | ||||||||||||||||||||
LEASES | ' | ||||||||||||||||||||
9. LEASES | |||||||||||||||||||||
We lease most of our administrative and educational facilities and certain equipment under non-cancelable operating leases expiring at various dates through 2023. Lease terms generally range from five to ten years with one to two renewal options for extended terms. In most cases, we are required to make additional payments under facility operating leases for taxes, insurance and other operating expenses incurred during the operating lease period. | |||||||||||||||||||||
Certain of our leases contain rent escalation clauses or lease incentives, including rent abatements and tenant improvement allowances. Rent escalation clauses and lease incentives are taken into account in determining total rent expense to be recognized during the term of the lease, which begins on the date we take control of the leased space. Renewal options are considered when determining the overall lease term. In accordance with FASB ASC Topic 840—Leases, differences between periodic rent expense and periodic cash rental payments, caused primarily by the recognition of rent expense on a straight-line basis and tenant improvement allowances due or received from lessors, are recorded as deferred rent obligations on our consolidated balance sheets. | |||||||||||||||||||||
In addition, we have financed the acquisition of certain equipment through capital lease arrangements. The cost basis of the assets recorded under capital leases from continuing operating activities, which are included in property and equipment, approximated $4.5 million, and were fully depreciated as of December 31, 2013. There was no depreciation expense for continuing operations recorded in connection with the assets recorded under capital leases for the year ended December 31, 2013, less than $0.1 million for December 31, 2012, and approximately $0.6 million was recorded for the year ended December 31, 2011. | |||||||||||||||||||||
Rent expense, exclusive of related taxes, insurance, and maintenance costs, for continuing operations totaled approximately $87.5 million, $89.0 million and $92.9 million for the years ended December 31, 2013, 2012 and 2011, respectively, and is reflected in educational services and facilities expense in our consolidated statements of (loss) income and comprehensive (loss) income. Rent expense for discontinued operations, which is included in income from discontinued operations, was approximately $21.9 million, $21.3 million and $27.0 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||
Remaining Lease Obligations | |||||||||||||||||||||
We have recorded lease exit costs associated with the exit of real estate space for certain campuses related to our continuing operations. These costs are recorded within educational services and facilities expense on our consolidated statements of (loss) income and comprehensive (loss) income. The current portion of the liability for these charges is reflected within other accrued expenses under current liabilities and the long-term portion of these charges are included in other liabilities under the non-current liabilities section of our consolidated balance sheets. Changes in our future minimum lease obligations for the years ended December 31, 2013, 2012 and 2011 were as follows (dollars in thousands): | |||||||||||||||||||||
Balance, | Charges | Net Cash | Other(2) | Balance, | |||||||||||||||||
Beginning | Incurred(1) | Payments | End of | ||||||||||||||||||
of Period | Period | ||||||||||||||||||||
For the year ended December 31, 2013 | $ | 13,262 | $ | 5,209 | $ | (9,202 | ) | $ | 3,292 | $ | 12,561 | ||||||||||
For the year ended December 31, 2012 | $ | 12,831 | $ | 4,249 | $ | (3,818 | ) | $ | — | $ | 13,262 | ||||||||||
For the year ended December 31, 2011 | $ | 17,770 | $ | 1,313 | $ | (6,544 | ) | $ | 292 | $ | 12,831 | ||||||||||
-1 | Includes charges for newly vacated spaces and subsequent adjustments for accretion, revised estimates and variances between estimated and actual charges, net of any reversals for terminated lease obligations. | ||||||||||||||||||||
-2 | Includes existing prepaid rent and deferred rent liability balances for newly vacated spaces that offset the losses incurred in the period recorded. | ||||||||||||||||||||
As of December 31, 2013, future minimum lease payments under operating leases for continuing and discontinued operations are as follows (dollars in thousands): | |||||||||||||||||||||
Operating Leases | |||||||||||||||||||||
Continuing | Discontinued | Total | |||||||||||||||||||
Operations | Operations | ||||||||||||||||||||
2014 | $ | 86,297 | $ | 14,519 | $ | 100,816 | |||||||||||||||
2015 | 79,602 | 13,660 | 93,262 | ||||||||||||||||||
2016 | 67,870 | 11,153 | 79,023 | ||||||||||||||||||
2017 | 56,878 | 10,326 | 67,204 | ||||||||||||||||||
2018 | 54,978 | 3,887 | 58,865 | ||||||||||||||||||
2019 and thereafter | 85,206 | 782 | 85,988 | ||||||||||||||||||
Total | $ | 430,831 | $ | 54,327 | $ | 485,158 | |||||||||||||||
Of the remaining $430.8 million lease obligations for continuing operations, $79.0 million relates to our Transitional school leases. See Note 11 “Restructuring Charges” for further discussion. | |||||||||||||||||||||
As of December 31, 2013, future minimum sublease rental income under operating leases for continuing and discontinued operations is as follows (dollars in thousands): | |||||||||||||||||||||
Operating Subleases | |||||||||||||||||||||
Continuing | Discontinued | Total | |||||||||||||||||||
Operations | Operations | ||||||||||||||||||||
2014 | $ | 2,324 | $ | 2,621 | 4,945 | ||||||||||||||||
2015 | 2,939 | 3,175 | 6,114 | ||||||||||||||||||
2016 | 1,649 | 3,217 | 4,866 | ||||||||||||||||||
2017 | 1,577 | 3,119 | 4,696 | ||||||||||||||||||
2018 | 1,356 | — | 1,356 | ||||||||||||||||||
2019 and thereafter | 1,513 | — | 1,513 | ||||||||||||||||||
Total | $ | 11,358 | $ | 12,132 | $ | 23,490 | |||||||||||||||
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | ||||||||||||||||||||||||||||
10. GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||||||||||||||||||||
Changes in the carrying amount of goodwill for continuing operations during the years ended December 31, 2013 and 2012 are as follows by segment (dollars in thousands): | |||||||||||||||||||||||||||||
CTU | AIU | Health | Culinary | Design & | Transitional | Total | |||||||||||||||||||||||
Education | Arts | Technology | |||||||||||||||||||||||||||
Goodwill balance as of December 31, 2011(1) | $ | 45,938 | $ | 41,418 | $ | 41,293 | $ | — | $ | 40,752 | $ | 1,305 | $ | 170,706 | |||||||||||||||
Goodwill impairment(2) | — | — | (41,293 | ) | — | (40,752 | ) | (1,305 | ) | (83,350 | ) | ||||||||||||||||||
Goodwill balance as of December 31, 2012 and 2013 | $ | 45,938 | $ | 41,418 | $ | — | $ | — | $ | — | $ | — | $ | 87,356 | |||||||||||||||
-1 | Goodwill impairments of approximately $168.7 million were recorded during the year ended December 31, 2011. | ||||||||||||||||||||||||||||
-2 | Goodwill impairments were recorded during the year ended December 31, 2012. | ||||||||||||||||||||||||||||
We performed our annual impairment testing of goodwill as of October 1, 2013 and determined that none of our reporting units were at risk of failing the first step of the goodwill impairment test as of October 1, 2013. | |||||||||||||||||||||||||||||
In calculating the fair value for CTU and AIU, we performed extensive valuation analyses, utilizing both income and market approaches, in our goodwill assessment process. The following describes the valuation methodologies used to derive the fair value of our reporting units: | |||||||||||||||||||||||||||||
• | Income Approach: To determine the estimated fair value of each reporting unit, we discount the expected cash flows which are developed by management. We estimate our future cash flows after considering current economic conditions and trends, estimated future operating results, our views of growth rates and anticipated future economic and regulatory conditions. The discount rate used represents the estimated weighted average cost of capital, which reflects the overall level of inherent risk involved in our future expected cash flows and the rate of return an outside investor would expect to earn. To estimate cash flows beyond the final year of our models, we use a terminal value approach and incorporate the present value of the resulting terminal value into our estimate of fair value. | ||||||||||||||||||||||||||||
• | Market-Based Approach: To corroborate the results of the income approach described above, we estimate the fair value of our reporting units using several market-based approaches, including the guideline company method, which focuses on comparing our risk profile and growth prospects to select reasonably similar publicly traded companies. | ||||||||||||||||||||||||||||
The determination of estimated fair value of each reporting unit requires significant estimates and assumptions, and as such, these fair value measurements are categorized as Level 3 per ASC Topic 820. These estimates and assumptions primarily include, but are not limited to, the discount rate, terminal growth rates, operating cash flow projections and capital expenditure forecasts. Due to the inherent uncertainty involved in deriving those estimates, actual results could differ from those estimates. We evaluate the merits of each significant assumption used, both individually and in the aggregate, to determine the fair value of each reporting unit for reasonableness. | |||||||||||||||||||||||||||||
As of December 31, 2013 and 2012, the cost basis, accumulated amortization and net book value of intangible assets for continuing operations are as follows (dollars in thousands): | |||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Cost | Accumulated | Net Book | Cost | Accumulated | Net Book | ||||||||||||||||||||||||
Amortization | Value | Amortization | Value | ||||||||||||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||||||||||||||
Courseware | $ | 10,861 | $ | (10,297 | ) | $ | 564 | $ | 12,361 | $ | (10,576 | ) | $ | 1,785 | |||||||||||||||
Other | 96 | (76 | ) | 20 | 96 | (52 | ) | 44 | |||||||||||||||||||||
Amortizable intangible assets, net | $ | 10,957 | $ | (10,373 | ) | $ | 584 | $ | 12,457 | $ | (10,628 | ) | $ | 1,829 | |||||||||||||||
Non-amortizable intangible assets: | |||||||||||||||||||||||||||||
Accreditation, licensing, and Title IV Program participation rights | $ | 1,000 | $ | 1,000 | |||||||||||||||||||||||||
Trade names | 38,533 | 53,177 | |||||||||||||||||||||||||||
Non-amortizable intangible assets | 39,533 | 54,177 | |||||||||||||||||||||||||||
Intangible assets, net | $ | 40,117 | $ | 56,006 | |||||||||||||||||||||||||
Amortizable intangible assets are amortized on a straight-line basis over their estimated useful lives; remaining useful lives for these assets are less than one year as of December 31, 2013. Amortization expense from continuing operations was $1.2 million, $1.4 million and $5.6 million, for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||
As of December 31, 2013, net intangible assets include certain accreditation, licensing, and Title IV Program participation rights and trade names that are considered to have indefinite useful lives and, in accordance with FASB ASC Topic 350—Intangibles—Goodwill and Other, are not subject to amortization but rather reviewed for impairment on at least an annual basis by applying a fair-value-based test. During 2013, in conjunction with our quarterly review processes, we concluded that certain indicators, including variation from previously projected revenue results, existed to suggest the Le Cordon Bleu and Sanford-Brown trade names were at risk of their carrying values exceeding their respective fair values. | |||||||||||||||||||||||||||||
We calculated the fair value of each of our trade names in accordance with FASB ASC Topic 820—Fair Value Measurement, by utilizing the relief from royalty method under the income approach. The determinations of estimated fair value for trade names require significant estimates and assumptions, and as such are categorized as Level 3 per ASC Topic 820. The assumptions utilized in determining the fair value of the Le Cordon Bleu and Sanford-Brown trade names included utilizing projected revenue growth rates, discount rates approximating 30%, royalty rates of 4.5% and 1.0% for Le Cordon Bleu and Sanford-Brown, respectively, and terminal growth rates of approximately 3%. As a result of our assessments, we recorded $13.0 million of trade name impairment charges for Le Cordon Bleu and a $1.7 million trade name impairment charge for Sanford-Brown. | |||||||||||||||||||||||||||||
The values of the Le Cordon Bleu and Sanford-Brown trade names are $27.3 million and $3.9 million, respectively, as of December 31, 2013. Additionally, we performed our annual impairment testing of indefinite-lived intangible asset balances as of October 1, 2013 and concluded that no indicators existed that would suggest that it is more likely than not that the assets would be further impaired. Due to the inherent uncertainty involved in deriving those estimates, actual results could differ from those estimates. We evaluate the merits of each significant assumption used, both individually and in the aggregate, to determine the fair value for reasonableness. Although we believe our projected future operating results and cash flows and related estimates regarding fair value are based on reasonable assumptions, historically projected operating results and cash flows have not always been achieved. However, for sensitivity purposes, and with all other inputs remaining equal for our Le Cordon Bleu and Sanford-Brown trade names, a 0.5% change in the royalty rates assumed in the calculation would result in a change in the fair values of approximately $5.3 million. A 1% change in the discount rates utilized in the calculation would result in a change in the fair values of approximately $1.3 million. We continue to monitor the operating results and revenue projections related to our trade names on a quarterly basis for signs of possible further declines in estimated fair value and trade name impairment. |
RESTRUCTURING_CHARGES
RESTRUCTURING CHARGES | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||||||||||||||
RESTRUCTURING CHARGES | ' | ||||||||||||||||||||
11. RESTRUCTURING CHARGES | |||||||||||||||||||||
During 2013 and 2012, we have carried out reductions in force related to the continued reorganization of our corporate and campus functions to better align with current total enrollments and made decisions to teach out a number of campuses, meaning gradually close the campuses through an orderly process. Most notably, we have recorded charges within our Career Schools segments and our corporate functions as we continue to align our overall management structure. We anticipate that a majority of the campus closures will be completed by the third quarter of 2014. See Item 1, “Business,” for a listing of schools that comprise our Transitional Schools segment. | |||||||||||||||||||||
The following table details the changes in our accrual for severance and related costs associated with all of these restructuring events for our continuing operations during the years ended December 31, 2013 and 2012 (dollars in thousands): | |||||||||||||||||||||
Balance, | Severance and | Payments(1) | Non-cash | Balance, | |||||||||||||||||
Beginning | related charges | adjustments(2) | End of | ||||||||||||||||||
of Period | Period | ||||||||||||||||||||
For the year ended December 31, 2013 | $ | 9,860 | $ | 6,218 | $ | (9,120 | ) | $ | (1,233 | ) | $ | 5,725 | |||||||||
For the year ended December 31, 2012 | $ | 253 | $ | 13,996 | $ | (2,299 | ) | $ | (2,090 | ) | $ | 9,860 | |||||||||
-1 | Includes payments related to COBRA and outplacement services which are assumed to be completed by the third month following an employee’s departure. | ||||||||||||||||||||
-2 | Includes cancellations due to employee departures prior to agreed upon end dates, employee transfers to open positions within the organization and subsequent adjustments to severance and related costs. | ||||||||||||||||||||
Severance and related expenses for the years ended December 31, 2013 and 2012 by reporting segment is as follows (dollars in thousands): | |||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
CTU | $ | 19 | $ | 261 | |||||||||||||||||
AIU | 213 | 1,834 | |||||||||||||||||||
Total University Schools | 232 | 2,095 | |||||||||||||||||||
Health Education | 790 | 1,576 | |||||||||||||||||||
Culinary Arts | 472 | 598 | |||||||||||||||||||
Design & Technology | 579 | 1,376 | |||||||||||||||||||
Total Career Schools | 1,841 | 3,550 | |||||||||||||||||||
Corporate and Other | 2,087 | 1,620 | |||||||||||||||||||
Transitional Schools | 2,058 | 6,731 | |||||||||||||||||||
Total | $ | 6,218 | $ | 13,996 | |||||||||||||||||
The current portion of the accrual for severance and related charges was $4.0 million and $7.2 million as of December 31, 2013 and 2012, respectively, which is recorded within current accrued expenses — payroll and related benefits; the long-term portion of $1.7 million and $2.7 million is recorded within other non-current liabilities on our consolidated balance sheets as of December 31, 2013 and 2012, respectively. | |||||||||||||||||||||
In addition, as of December 31, 2013, we have an accrual of approximately $2.2 million related to retention bonuses that have been offered to certain employees. These amounts are recorded ratably over the period the employees are retained; $2.3 million was recorded during the year ended December 31, 2013. | |||||||||||||||||||||
In addition to the charges detailed above, a number of these campuses will have remaining lease obligations following the eventual campus closure, with the longest lease term being through 2021. The total estimated charge related to the remaining lease obligation for these leases, once the campus completes the close process, and adjusted for possible lease buyouts and sublease assumptions is approximately $30.0 to $35.0 million. The amount related to each campus will be recorded at each campus closure date based on current estimates and assumptions related to the amount and timing of sublease income. See Note 9 “Leases” for details regarding our gross remaining lease obligations for our Transitional Schools. |
CREDIT_AGREEMENTS
CREDIT AGREEMENTS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
CREDIT AGREEMENTS | ' | ||||||||
12. CREDIT AGREEMENTS | |||||||||
On December 30, 2013, we entered into a $70.0 million Amended and Restated Credit Agreement (the “Credit Agreement”) with BMO Harris Bank N.A., in its capacities as the initial lender and letter of credit issuer thereunder and the administrative agent for the lenders which from time to time may be parties to the Credit Agreement. The revolving credit facility under the Credit Agreement is scheduled to mature on June 30, 2016 and replaced the original credit agreement entered into in December 2012, which was due to expire on January 31, 2014. The Credit Agreement requires that interest and fees are payable quarterly in arrears and principal is payable at maturity. Any borrowings bear interest at fluctuating interest rates under either the Base Rate Loan or as determined by the London Interbank Offered Rate (LIBOR) for the relevant currency, plus the applicable rate based on the type of loan. | |||||||||
We may prepay amounts outstanding, or terminate or reduce the commitments, under the Credit Agreement upon three or five business days’ prior notice, respectively, in each case without premium or penalty. The Credit Agreement contains customary affirmative, negative and financial maintenance covenants, including a requirement to maintain cash and cash equivalents in our accounts of at least $200.0 million at all times. The loans and letter of credit obligations under the Credit Agreement are secured by 100% cash collateral. The agreements also contain customary representations and warranties, events of default, and rights and remedies upon the occurrence of any event of default, including rights to accelerate the loans, terminate the commitments and rights to realize upon the collateral securing the obligations under the Credit Agreement. | |||||||||
Selected details of our credit agreements as of and for the years ended December 31, 2013 and 2012 were as follows (dollars in thousands): | |||||||||
As of December 31, | |||||||||
2013(1) | 2012(2) | ||||||||
Credit Agreements: | |||||||||
Credit facility remaining availability(4) | $ | 70,000 | $ | — | |||||
Credit facility borrowings | $ | — | $ | 80,000 | |||||
Outstanding letters of credit(3) | $ | 12,318 | $ | 6,981 | |||||
Availability of additional letters of credit(4) | $ | 7,682 | $ | — | |||||
Average daily revolving credit borrowings for the year ended | $ | 219 | $ | 219 | |||||
Weighted average annual interest rate | 5.25 | % | 5.25 | % | |||||
Commitment fee rate | 0.25 | % | 0.25 | % | |||||
Letter of credit fee rate | 0.75 | % | 0.5 | % | |||||
-1 | Details reflect terms under our existing Credit Agreement which was entered into December 30, 2013, except for our outstanding letters of credit. | ||||||||
-2 | Details reflect terms under the original credit agreement which was replaced with our existing Credit Agreement, except for our outstanding letters of credit. | ||||||||
-3 | Represents letters of credit which are fully collateralized with $12.6 million and $7.4 million of restricted cash as of December 31, 2013 and 2012, respectively. | ||||||||
-4 | The letters of credit sublimit of $20.0 million under our existing Credit Agreement is part of, not in addition to, the $70.0 million aggregate commitments. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
13. COMMITMENTS AND CONTINGENCIES | |
An accrual for estimated legal fees and settlements of $20.3 million and $5.8 million at December 31, 2013 and December 31, 2012, respectively, is presented within other current liabilities on our consolidated balance sheets. | |
We record a liability when we believe that it is both probable that a loss will be incurred and the amount of loss can be reasonably estimated. We evaluate, at least quarterly, developments in our legal matters that could affect the amount of liability that was previously accrued, and make adjustments as appropriate. Significant judgment is required to determine both probability and the estimated amount. We may be unable to estimate a possible loss or range of possible loss due to various reasons, including, among others: (1) if the damages sought are indeterminate; (2) if the proceedings are in early stages; (3) if there is uncertainty as to the outcome of pending appeals, motions, or settlements; (4) if there are significant factual issues to be determined or resolved; and (5) if there are novel or unsettled legal theories presented. In such instances, there is considerable uncertainty regarding the ultimate resolution of such matters, including a possible eventual loss, if any. | |
Litigation | |
We are, or were, a party to the following legal proceedings that we consider to be outside the scope of ordinary routine litigation incidental to our business. Due to the inherent uncertainties of litigation, we cannot predict the ultimate outcome of these matters. An unfavorable outcome of any one or more of these matters could have a material adverse impact on our business, results of operations, cash flows and financial position. | |
Securities Litigation | |
Ross, et al. v. Career Education Corporation, et al. On January 13, 2012, a class action complaint was filed in the U.S. District Court for the Northern District of Illinois, naming the Company and various individuals as defendants and claiming that the defendants violated Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) by making material misstatements in and omitting material information from the Company’s public disclosures concerning its campuses’ job placement rates and its compliance with accreditation standards. The complaint further claimed that the individual defendants violated Section 20(a) of the Exchange Act by virtue of their positions as control persons of the Company. Plaintiff asks for unspecified amounts in damages, interest, and costs, as well as ancillary relief. On March 23, 2012, the Court appointed KBC Asset Management NV, the Oklahoma Police Pension & Retirement Systems, and the Oklahoma Law Enforcement Retirement System, as lead plaintiffs in the action. On May 3, 2012, lead plaintiffs filed a consolidated amended complaint, asserting the same claims alleged in the initial complaint, and naming the Company and two former executive officers as defendants. Lead plaintiffs seek damages on behalf of all persons who purchased the Company’s common stock between February 19, 2009 and November 21, 2011 (the “Class”). On October 30, 2012, the Court ruled on defendants’ motion to dismiss, granting it as to one of the former executive officer defendants and denying it as to the other defendants. On January 28, 2013, defendants filed answers to the consolidated amended complaint. Defendants have denied and continue to deny each and all of the claims and contentions alleged by plaintiffs in the action and all charges of wrongdoing or liability against them. | |
On June 12, 2013, the parties agreed to settle the litigation, subject to Court approval and settlement of the shareholder derivative actions and subsequent related claims described below (“Proposed Derivative Settlement”). Pursuant to the terms of the agreement, the Class will receive a total of $27.5 million in consideration of the proposed settlement and for the benefit of Class members participating in the settlement. The Company’s directors’ and officers’ liability insurers have paid $22.5 million of the settlement amount, subject to final Court approval, $10.0 million of which is to be funded pursuant to the terms of the Proposed Derivative Settlement, as to which the Company recorded a receivable in the second quarter of 2013. The Company paid the remaining $5.0 million for the benefit of the Class. However, the Company is seeking recovery of that amount from one of its insurers, Axis Insurance Company, but has not recorded a receivable for this additional amount as it is not deemed probable as of December 31, 2013. As described below, Axis Insurance Company is seeking a declaration of no coverage. In exchange for the $27.5 million cash consideration, among other things, upon final Court approval, the lead plaintiffs will dismiss the litigation with prejudice and the parties will release all claims. | |
On November 6, 2013, the Court entered an order preliminarily approving the settlement reached by the parties and providing that any Class member requests for exclusion from the settlement be mailed by March 22, 2014. A final approval hearing is currently set for April 16, 2014. | |
Axis Insurance Company v. Career Education Company, et al. On December 11, 2013, Axis Insurance Company filed a declaratory judgment action in the Circuit Court of Cook County, Chancery Division, naming the Company and various individuals as defendants in connection with coverage for the recently settled securities class action and Derivative Litigation. Axis seeks a declaration of no coverage. The Company and most of the individual defendants accepted service of the suit on January 10, 2014, and have until March 11, 2014 to respond to the complaint. | |
Shareholder Derivative Actions and Demands | |
On June 12, 2013, the parties to the derivative actions described below, including Bangari, Cook and Alex, and subsequent related claims (“Derivative Litigation”) agreed to the Proposed Derivative Settlement, subject to Court approval, pursuant to which the Company’s directors’ and officers’ liability insurers have paid the Company $20.0 million, $10.0 million of which will be applied to the settlement of the Ross securities litigation described above. With the remaining $10.0 million, the Company will be required to pay $5.0 million in attorneys’ fees and expenses to derivative plaintiffs’ counsel, subject to Court approval. The net recovery from the Proposed Derivative Settlement may be used by the Company for any purpose. On January 28, 2014, the U.S. District Court for the Northern District of Illinois finally approved the Proposed Derivative Settlement and dismissed the Cook and Alex actions described below with prejudice. | |
With respect to the Proposed Derivative Settlement, on May 24, 2013, the Company’s Board of Directors formed a Special Committee for the purpose of conducting an independent inquiry. The Board of Directors delegated to the Special Committee the full authority to take such actions as the Special Committee deems appropriate and in the best interests of the Company and its shareholders regarding such Proposed Derivative Settlement. On October 16, 2013, the Special Committee concluded that the Proposed Derivative Settlement described above was fair, reasonable and adequate, conferred substantial benefits upon the Company and its shareholders, and was in the best interests of the Company and its shareholders, and so directed its counsel to enter into the Proposed Derivative Settlement, subject to Court approval. | |
Bangari v. Lesnik, et al. On December 7, 2011, a derivative action was filed in the Circuit Court of Cook County, Chancery Division, on behalf of the Company naming the Company’s Board of Directors at that time as individual defendants and the Company as a nominal defendant. Plaintiff alleged breach of fiduciary duty and abuse of control by the individual defendants in connection with the Company’s alleged ongoing failure to have proper internal controls in place to appropriately determine its campuses’ placement rates or to comply with relevant accreditation standards regarding placement practices and determinations. Plaintiff asked for unspecified amounts in damages, interest, and costs, as well as ancillary relief. On November 5, 2013, the Court stayed the action pending the Proposed Derivative Settlement. On February 3, 2014, the Court dismissed this action with prejudice. | |
Cook v. McCullough, et al. On December 22, 2011, a derivative action was filed in the U.S. District Court for the Northern District of Illinois on behalf of the Company naming the Company’s Board of Directors at that time as well as various current and former officers as individual defendants and the Company as a nominal defendant. Plaintiff alleged breach of fiduciary duty, abuse of control and gross mismanagement by all of the individual defendants based on allegations similar to those asserted in Bangari, described above, and on defendants’ alleged failure to prevent the Company’s disclosure of allegedly misleading statements relating to placement rates. Plaintiff also asserted a claim of unjust enrichment against certain individual defendants due to their receipt of incentive-based compensation based on allegedly inflated short-term financial performance. Plaintiff asked for unspecified amounts in damages, interest, and costs, as well as ancillary relief. As mentioned above, on January 28, 2014, the Court entered an order finally approving the Proposed Derivative Settlement and dismissing this action with prejudice. | |
Alex v. McCullough, et al. On November 5, 2012, a derivative action was filed in the U.S. District Court for the Northern District of Illinois on behalf of the Company naming the Company’s Board of Directors at that time as well as various current and former officers as individual defendants and the Company as a nominal defendant. Plaintiff alleged breach of fiduciary duty, waste of corporate assets and unjust enrichment by all of the individual defendants based on allegations similar to those asserted in Bangari and Cook, described above. In addition, in connection with the Company’s reporting of placement rates, plaintiff also asserted violations of Sections 10(b) and 20(a) of the Exchange Act against certain individual defendants. Plaintiff asked for unspecified amounts in damages, interest, and costs, as well as ancillary relief. On January 28, 2014, the Court entered an order finally approving the Proposed Derivative Settlement and dismissing this action with prejudice. | |
Student Litigation | |
Abarca v. California Culinary Academy, Inc., et al. (filed June 3, 2011; 115 plaintiffs); Andrade, et al. v. California Culinary Academy, Inc., et al (filed June 15, 2011; 31 plaintiffs); Aprieto, et al. v. California Culinary Academy (filed August 12, 2011; five plaintiffs); Coleman, et al. v. California Culinary Academy (filed January 18, 2013; two plaintiffs). These four actions are pending in the San Francisco County Superior Court and generally allege: fraud, constructive fraud, violation of the California Unfair Competition Law, violation of the California Consumer Legal Remedies Act, breach of contract and violation of the repealed California Education Code. Plaintiffs contend that California Culinary Academy (“CCA”) made a variety of misrepresentations to them, primarily oral, during the admissions process. The alleged misrepresentations relate generally to the school’s reputation, the value of the education, the competitiveness of the admissions process, and the students’ employment prospects upon graduation, including the accuracy of statistics published by CCA. The plaintiffs in these actions seek damages, including consequential damages, punitive damages and attorneys’ fees. | |
All of the plaintiffs in these four actions either opted out of or did not fit the class definition in a previously settled class action captioned Amador, et al. v. California Culinary Academy and Career Education Corporation; Adams, et al. v. California Culinary Academy and Career Education Corporation. None of these four actions are being prosecuted as a class action. All of these cases have been deemed related and have been transferred to the same judge who handled the Amador case. | |
Currently there are 80 remaining plaintiffs who have not settled or dismissed their claims. CCA has filed answers to the complaints filed by the remaining 80 individual plaintiffs. The parties have agreed to participate in a mediation session in early April 2014. The Court has set a trial date on eight test cases for August 4, 2014. The test cases will be tried to the Court and not to a jury. | |
Because of the many questions of fact and law that may arise in the future, the outcome of the Abarca, Andrade, Aprieto and Coleman legal proceedings with respect to the remaining plaintiffs is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of potential loss, if any, for these actions because these matters are in their early stages and involve many unresolved issues of fact and law. Accordingly, we have not recognized any future liability associated with these actions. | |
Enea, et al. v. Career Education Corporation, California Culinary Academy, Inc., SLM Corporation, and Sallie Mae, Inc. Plaintiffs filed this putative class action in the Superior Court State of California, County of San Francisco, on or about June 27, 2013. Plaintiffs allege that CCA materially misrepresented the placement rates of its graduates, falsely stated that admission to the culinary school was competitive and that the school had an excellent reputation among restaurants and other food service providers, represented that the culinary schools were well-regarded institutions producing skilled graduates who employers eagerly hired, and lied by telling students that the school provided graduates with career placement services for life. The plaintiffs or putative class members here co-signed the loans for students to attend CCA, some of whom were Amadorclass members. Plaintiffs seek restitution, damages, civil penalties, and attorneys’ fees. | |
Defendants filed a motion to dismiss and to strike class action allegations on October 31, 2013. The motions are fully briefed and the Court has set a hearing date for March 14, 2014. Discovery is stayed pending a ruling on those motions. | |
Because of the many questions of fact and law that may arise in the future, the outcome of this legal proceeding is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of potential loss, if any, for this action because, among other things, our potential liability depends on whether a class is certified and, if so, the composition and size of any such class, as well as on an assessment of the appropriate measure of damages if we were to be found liable. Accordingly, we have not recognized any liability associated with this action. | |
Surrett, et al. v. Western Culinary Institute, Ltd. and Career Education Corporation. On March 5, 2008, a complaint was filed in Portland, Oregon in the Circuit Court of the State of Oregon in and for Multnomah County naming Western Culinary Institute, Ltd. and the Company as defendants. Plaintiffs filed the complaint individually and as a putative class action and alleged two claims for equitable relief: violation of Oregon’s Unlawful Trade Practices Act (“UTPA”) and unjust enrichment. Plaintiffs filed an amended complaint on April 10, 2008, which added two claims for money damages: fraud and breach of contract. Plaintiffs allege that Western Culinary Institute, Ltd. (“WCI”) made a variety of misrepresentations to them, relating generally to WCI’s placement statistics, students’ employment prospects upon graduation from WCI, the value and quality of an education at WCI, and the amount of tuition students could expect to pay as compared to salaries they could expect to earn after graduation. WCI subsequently moved to dismiss certain of plaintiffs’ claims under Oregon’s UTPA; that motion was granted on September 12, 2008. On February 5, 2010, the Court entered a formal Order granting class certification on part of plaintiff’s UTPA and fraud claims purportedly based on omissions, denying certification of the rest of those claims and denying certification of the breach of contract and unjust enrichment claims. The class consists of students who enrolled at WCI between March 5, 2006 and March 1, 2010, excluding those who dropped out or were dismissed from the school for academic reasons. | |
Plaintiffs filed a Fifth Amended Complaint on December 7, 2010, which included individual and class allegations by Nathan Surrett. Class notice was sent on April 22, 2011, and the opt-out period expired on June 20, 2011. The class consisted of approximately 2,600 members. They are seeking tuition refunds, interest and certain fees paid in connection with their enrollment at WCI. | |
On May 23, 2012, WCI filed a motion to compel arbitration of claims by 1,062 individual class members who signed enrollment agreements containing express class action waivers. The Court issued an Order denying the motion on July 27, 2012. WCI filed an appeal from the Court’s Order and on August 30, 2012, the Court of Appeals issued an Order granting WCI’s motion to compel the trial court to cease exercising jurisdiction in the case. Thus, all proceedings with the trial court have been stayed pending the outcome of the appeal. | |
Because of the many questions of fact and law that have already arisen and that may arise in the future, the outcome of this legal proceeding is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of potential loss, if any, for this action because of the inherent difficulty in assessing the appropriate measure of damages and the number of class members who might be entitled to recover damages, if we were to be found liable. Accordingly, we have not recognized any liability associated with this action. | |
Vasquez, et al. v. California School of Culinary Arts, Inc. and Career Education Corporation. On June 23, 2008, a putative class action lawsuit was filed in the Los Angeles County Superior Court entitled Daniel Vasquez and Cherish Herndon v. California School of Culinary Arts, Inc. and Career Education Corporation. The plaintiffs allege causes of action for fraud, constructive fraud, violation of the California Unfair Competition Law and violation of the California Consumer Legal Remedies Act. The plaintiffs allege improper conduct in connection with the admissions process during the alleged class period. The alleged class is defined as including “all persons who purchased educational services from California School of Culinary Arts, Inc. (“CSCA”), or graduated from CSCA, within the limitations periods applicable to the alleged causes of action (including, without limitation, the period following the filing of the action).” Defendants successfully demurred to the constructive fraud claim and the Court has dismissed it. Defendants also successfully demurred to plaintiffs’ claims based on alleged violations of California’s former Private Postsecondary and Vocational Educational Reform Act of 1989 (“the Reform Act”). Plaintiffs’ motion for class certification was denied by the Court on March 6, 2012. | |
Plaintiffs’ counsel have filed eight separate but related “multiple plaintiff actions” originally involving a total of approximately 1,000 former students entitled Banks, et al. v. California School of Culinary Arts; Abrica v. California School of Culinary Arts; Aguilar, et al. v. California School of Culinary Arts; Alday v. California School of Culinary Arts; Ackerman, et al. v. California School of Culinary Arts; Arechiga, et al. v. California School of Culinary Arts; Anderson, et al., v. California School of Culinary Arts; and Allen v. California School of Culinary Arts. All eight cases are pending in the Los Angeles County Superior Court and the allegations in these cases are essentially the same as those asserted in the Vasquez class action case. The individual plaintiffs in these cases seek compensatory and punitive damages, disgorgement and restitution of tuition monies received, attorneys’ fees, costs and injunctive relief. All of these cases have been deemed related to the Vasquez class action and therefore are pending before the same judge who is presiding over the Vasquez case. | |
On June 15, 2012, pursuant to a stipulation by the parties, the plaintiffs filed a consolidated amended complaint in the Vasquez action consolidating all eight of the separate actions referenced above. The complaint was thereafter amended to add additional Plaintiffs. As a result of these amendments, there were at one time approximately 1,438 plaintiffs, the majority of whom enrolled between 2003 and 2008 (about 10 of the plaintiffs enrolled in 2009 and 2010). | |
On June 22, 2012, defendants filed motions to compel arbitration of plaintiffs’ claims. On August 10, 2012, the Court granted the motions with respect to approximately 54 plaintiffs. Nine arbitration demands were filed before the American Arbitration Association, one of which was tried to a final award and eight of which were settled. The remaining plaintiffs’ claims were settled prior to arbitration demands being filed. The total liability for all of these claims was an immaterial amount. Following the resolution of these claims, other settlements, and the voluntary dismissal of certain claims, there are approximately 1,047 remaining plaintiffs in the consolidated action. | |
On January 24, 2014, defendants accepted a mediator’s proposal to settle the consolidated action, subject to the execution of a formal agreement memorializing the terms of the proposal and the terms of the settlement agreements to be entered into with each individual plaintiff. Pursuant to this settlement arrangement, defendants will pay a maximum of $17.5 million in the aggregate to fund the individual plaintiff settlements, attorneys’ fees and administrative costs of the settlement, subject to certain excluded costs which defendants will be separately responsible for. The settlement amounts for each individual plaintiff will be determined by a third party. If any plaintiff decides not to accept the settlement, then the amount allocated to that plaintiff will be returned to defendants. Defendants have the right not to proceed with the settlement if a specified number of plaintiffs do not accept the settlement. Defendants’ liability pursuant to the settlement is estimated to be $15.5 million to $17.5 million; however, defendants do not have a reasonable basis to estimate where in that range the liability is likely to be. Accordingly, for the quarter ended December 31, 2013, the Company recorded a reserve of $15.5 million based on its assessment that the settlement is probable. | |
False Claims Act | |
United States of America, ex rel. Melissa Simms Powell, et al. v. American InterContinental University, Inc., a Georgia Corporation, Career Education Corp., a Delaware Corporation and John Doe Nos. 1-100. On July 28, 2009, we were served with a complaint filed in the U.S. District Court for the Northern District of Georgia, Atlanta Division. The complaint was originally filed under seal on July 14, 2008 by four former employees of the Dunwoody campus of our American InterContinental University on behalf of themselves and the federal government. On July 27, 2009, the Court ordered the complaint unsealed and we were notified that the U.S. Department of Justice declined to intervene in the action. When the federal government declines to intervene in a False Claims Act action, as it has done in this case, the private plaintiffs (or “relators”) may elect to pursue the litigation on behalf of the federal government and, if they are successful, receive a portion of the federal government’s recovery. The action alleges violations of the False Claims Act and promissory fraud, including allegedly providing false certifications to the federal government regarding compliance with certain provisions of the Higher Education Act and accreditation standards. Relators claim that defendants’ conduct caused the government to pay federal funds to defendants and to make payments to third-party lenders, which the government would not have made if not for defendants’ alleged violation of the law. Relators seek treble damages plus civil penalties and attorneys’ fees. On July 12, 2012, the Court granted our motion to dismiss for a lack of jurisdiction, the claims related to incentive compensation and proof of graduation. Thus, the only claim that remains pending against defendants is based on relators’ contention that defendants misled the school’s accreditor, Southern Association of Colleges and Schools, during the accreditation process. On December 16, 2013, we filed a motion for summary judgment on a variety of substantive grounds. | |
Because of the many questions of fact and law that may arise, the outcome of this legal proceeding is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of potential loss, if any, for this action because the complaint does not seek a specified amount of damages and it is unclear how damages would be calculated, if we were to be found liable. Moreover, the case presents novel legal issues. Accordingly, we have not recognized any liability associated with this action. | |
United States of America, ex rel. Brent M. Nelson v. Career Education Corporation, Sanford-Brown, Ltd., and Ultrasound Technical Services, Inc. On April 18, 2013, defendants were served with an amended complaint filed in the U.S. District Court for the Eastern District of Wisconsin. The original complaint was filed under seal on July 30, 2012 by a former employee of Sanford-Brown College Milwaukee on behalf of himself and the federal government. On February 27, 2013, the Court ordered the complaint unsealed and we were notified that the U.S. Department of Justice declined to intervene in the action. After the federal government declined to intervene in this case, the relator elected to pursue the litigation on behalf of the federal government. If he is successful he will receive a portion of the federal government’s recovery. The amended complaint was filed by the relator on April 12, 2013 and alleges violations of the False Claims Act, including allegedly providing false certifications to the federal government regarding compliance with certain provisions of the Higher Education Act and accreditation standards. Relator claims that defendants’ conduct caused the government to pay federal funds to defendants, and to make payments to third-party lenders, which the government would not have made if not for defendants’ alleged violation of the law. Relator seeks treble damages plus civil penalties and attorneys’ fees. On June 11, 2013, defendants filed a motion to dismiss the case on a variety of grounds. The Court ruled on that motion, dismissing CEC from the case and dismissing several of the Relator’s factual claims. On November 27, 2013, Sanford Brown, LTD., and Ultrasound Technical Services, Inc., the remaining Company defendants, filed a motion to dismiss the case for lack of subject matter jurisdiction due to prior public disclosures of Relator’s alleged claims and on January 3, 2014, the remaining Company defendants filed a motion for summary judgment on a variety of substantive grounds. The Court has set the case for jury trial beginning on April 14, 2014. | |
Because of the many questions of fact and law that may arise, the outcome of this legal proceeding is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of potential loss, if any, for this action because the complaint does not seek a specified amount of damages and it is unclear how damages would be calculated, if we were to be found liable. Moreover, the case presents novel legal issues. Accordingly, we have not recognized any liability associated with this action. | |
Employment Litigation | |
Wilson, et al. v. Career Education Corporation. On August 11, 2011, Riley Wilson, a former admissions representative based in Minnesota, filed a complaint in the U.S. District Court for the Northern District of Illinois. The two-count complaint asserts claims of breach of contract and unjust enrichment arising from our decision to terminate our Admissions Representative Supplemental Compensation (“ARSC”) Plan. In addition to his individual claims, Wilson also seeks to represent a nationwide class of similarly situated admissions representatives who also were affected by termination of the plan. On October 6, 2011, we filed a motion to dismiss the complaint. On April 13, 2012, the Court granted our motion to dismiss in its entirety and dismissed plaintiff’s complaint for failure to state a claim. The Court dismissed this action with prejudice on May 14, 2012. On June 11, 2012, plaintiff filed a Notice of Appeal with the U.S. Court of Appeals for the Seventh Circuit appealing the final judgment of the trial court. Briefing was completed on October 30, 2012, and oral argument was held on December 3, 2012. On August 30, 2013, the Seventh Circuit affirmed the district court’s ruling on plaintiff’s unjust enrichment claim but reversed and remanded for further proceedings on plaintiff’s breach of contract claim. On September 13, 2013, we filed a petition for rehearing to seek review of the panel’s decision on the breach of contract claim and for certification of question to the Illinois Supreme Court, but the petition was denied. | |
The case now is on remand to the district court for further proceedings on the sole question of whether CEC’s termination of the ARSC Plan violated the implied covenant of good faith and fair dealing. The parties are scheduled to appear for a status hearing on April 9, 2014. | |
Because the matter is in its early stages and because of the many questions of fact and law that may arise, the outcome of this legal proceeding is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of potential loss, if any, for this action. Accordingly, we have not recognized any liability associated with this action. | |
Nimely, et al. v. Randstad General Partners, Randstad USA, Randstad Inhouse Services L.P., and Career Education Corporation. On December 30, 2012, April R. Nimely, a former hourly, non-exempt call center employee based in Illinois filed a putative class and collective action complaint in the U.S. District Court for the Northern District of Illinois against the Company and various entities of the staffing firm Randstad, which the Company used to supplement its own staff at some of its call centers. The complaint asserts claims under the Fair Labor Standards Act, the Illinois Minimum Wage Law, and the Illinois Wage Payment and Collection Act (“IWPCA”) arising from the alleged failure to pay wages for work performed before and after shifts and during breaks. The putative collective class was defined as “[a]ll persons who worked for [d]efendants as telephone dedicated employees, however titled, who were compensated, in part or in full, on an hourly basis throughout the United States at any time between December 30, 2009 and the present who did not receive the full amount of overtime wages earned and owed to them.” | |
On February 27, 2013, defendants filed their answers to the complaint and motion to dismiss the IWPCA count of the complaint. On June 14, 2013, plaintiff filed her motion for class certification. The parties subsequently reached an agreement to settle the matter for an immaterial amount. On November 29, 2013, the Court entered an order granting preliminary approval of the settlement and setting March 25, 2014 for the final approval hearing. | |
Other Litigation | |
In addition to the legal proceedings and other matters described above, we are also subject to a variety of other claims, suits and investigations that arise from time to time out of the conduct of our business, including, but not limited to, claims involving students or graduates and routine employment matters. While we currently believe that such claims, individually or in aggregate, will not have a material adverse impact on our financial position, cash flows or results of operations, these other matters are subject to inherent uncertainties, and management’s view of these matters may change in the future. Were an unfavorable final outcome to occur in any one or more of these matters, there exists the possibility of a material adverse impact on our business, reputation, financial position, cash flows, and the results of operations for the period in which the effect becomes probable and reasonably estimable. | |
State Investigations | |
On January 24, 2014, the Company received inquiries from the Attorneys General of Arkansas, Arizona, Connecticut, Idaho, Iowa, Kentucky, Missouri, Nebraska, North Carolina, Oregon, Pennsylvania and Washington regarding the Company’s business practices, and on February 7, 2014 the Company received a related inquiry from the Attorney General of Tennessee. The Attorney General of Connecticut has informed the Company that it will serve as the point of contact for these 13 inquiries. In addition, the Company has received inquiries from the Attorneys General of Florida (November 5, 2010), Illinois (December 9, 2011), Massachusetts (September 27, 2012) and Colorado (August 27, 2013). The inquiries are civil investigative demands or subpoenas which relate to the investigation by the attorneys general of whether the Company and its schools have complied with certain state consumer protection laws, and generally focus on the Company’s practices relating to the recruitment of students, graduate placement statistics, graduate certification and licensing results and student lending activities, among other matters. Depending on the state, the documents and information sought by the attorneys general in connection with their investigations cover time periods as early as 2006 to the present. The Company intends to cooperate with the states involved with a view towards resolving these inquiries as promptly as possible. | |
We cannot predict the scope, duration or outcome of these attorney general investigations. At the conclusion of any of these matters, the Company or certain of its schools may be subject to claims of failure to comply with state laws or regulations and may be required to pay significant financial penalties and/or curtail or modify their operations. Other state attorneys general may also initiate inquiries into the Company or its schools. If any of the foregoing occurs, our business, reputation, financial position, cash flows and results of operations could be materially adversely affected. Based on information available to us at present, we cannot reasonably estimate a range of potential monetary or non-monetary impact these investigations might have on the Company because it is uncertain what remedies, if any, these regulators might ultimately seek in connection with these investigations. | |
SEC Inquiry and Other Information Requests | |
During the second quarter of 2012, the Company was advised by the Chicago Regional Office of the Securities and Exchange Commission (“SEC”) that it is conducting an inquiry pertaining to our previously reported 2011 investigation and review of student placement rate determination practices and related matters. We are cooperating fully with the inquiry. We cannot determine the eventual duration, scope or outcome of this matter. | |
The Company and its institutions have responded to requests for information regarding its 2011 investigation and review of placement determination practices and related matters from the Higher Learning Commission of the North Central Association of Colleges and Schools, Middle States Commission on Higher Education, Commonwealth of Pennsylvania Department of Education Division of Higher and Career Education, the Arizona State Board for Private Postsecondary Education, the Minnesota Office of Higher Education and the Florida Commission for Independent Education. Additionally, we have responded to follow-up requests from regulators for information regarding the terms of our August 2013 settlement with the New York Attorney General, including from the Higher Learning Commission of the North Central Association of Colleges and Schools and the Middle States Commission on Higher Education. We cannot predict the outcome of these information requests and any legal proceeding, claim or other matter that may arise relating thereto. | |
Regulatory Matters | |
ED Inquiry and HCM1 Status | |
In December 2011, ED advised the Company that it is conducting an inquiry concerning possible violations of ED misrepresentation regulations related to placement rates reported by certain of the Company’s institutions to accrediting bodies, students and potential students. This inquiry stems from the Company’s self-reporting to ED of its internal investigation into student placement determination practices at the Company’s Health Education segment campuses and review of placement determination practices at all of the Company’s other domestic campuses in 2011. The Company has been cooperating with ED in connection with this inquiry. If ED determines that the Company or any of its institutions violated ED misrepresentation regulations with regard to the publication of placement rates or other disclosures to students or prospective students, ED may revoke, limit, suspend or deny the institution’s Title IV eligibility, or impose fines. Any such action would first likely require reasonable prior notice and an opportunity for an administrative hearing (as recently confirmed by the U.S. Court of Appeals for the District of Columbia), and would be subject to appeal. | |
In December 2011, ED also moved all of the Company’s institutions from the “advance” method of payment of Title IV Program funds to cash monitoring status (referred to as Heightened Cash Monitoring 1, or HCM1, status). Although the Company’s prior practices substantially conformed to the requirements of this more restrictive method of drawing down students’ Title IV Program funds, if ED finds violations of the HEA or related regulations, ED may impose monetary or program level sanctions, or transfer the Company’s schools to the “reimbursement” or Heightened Cash Monitoring 2 (“HCM2”) methods of payment of Title IV Program funds. While on HCM2 status, an institution must disburse its own funds to students, document the students’ eligibility for Title IV Program funds and comply with certain waiting period requirements before receiving such funds from ED, which results in a significant delay in receiving those funds. The process of re-establishing a regular schedule of cash receipts for the Title IV Program funds if ED places our schools on “reimbursement” or HCM2 payment status could take several months, and would require us to fund ongoing operations substantially out of existing cash balances. If our existing cash balances are insufficient to sustain us through this transition period, we would need to pursue other sources of liquidity, which may not be available or may be costly. | |
OIG Audit | |
Our schools and universities are also subject to periodic audits by various regulatory bodies, including the U.S. Department of Education’s Office of Inspector General (“OIG”). The OIG audit services division commenced a compliance audit of CTU in June 2010, covering the period July 5, 2009 to May 16, 2010, to determine whether CTU had policies and procedures to ensure that CTU administered Title IV Program and other federal program funds in accordance with applicable federal law and regulation. On January 13, 2012, the OIG issued a draft report identifying three findings, including one regarding the documentation of attendance of students enrolled in online programs and one regarding the calculation of returns of Title IV Program funds arising from student withdrawals without official notice to the institution. CTU submitted a written response to the OIG, contesting these findings, on March 2, 2012. CTU disagreed with the OIG’s proposed determination of what constitutes appropriate documentation or verification of online academic activity during the time period covered by the audit. CTU’s response asserted that this finding was based on the retroactive application of standards adopted as part of the program integrity regulations that first went into effect on July 1, 2011. The OIG final report, along with CTU’s response to the draft report, was forwarded to ED’s Office of Federal Student Aid on September 21, 2012. On October 24, 2012, CTU provided a further response challenging the findings of the report directly to ED’s Office of Federal Student Aid. As a result of ED’s review of these materials, on January 31, 2013, CTU received a request from ED that it perform two file reviews to determine potential liability on two discrete issues associated with one of the above findings. The first file review relates to any potential aid awarded to students who engaged in virtual classroom attendance activities prior to the official start date of a course and for which no further attendance was registered during the official class term. The second file review relates to students that were awarded and paid Pell funds for enrollment in two concurrent courses, while only registering attendance in one of the two courses. The Company completed these file reviews and provided | |
supporting documentation to ED on April 10, 2013. As of December 31, 2013, the Company has a $0.8 million reserve recorded related to this matter. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
INCOME TAXES | ' | ||||||||||||
14. INCOME TAXES | |||||||||||||
The components of pretax (loss) income from continuing operations for the years ended December 31, 2013, 2012 and 2011 are as follows (dollars in thousands): | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S | $ | (221,862 | ) | $ | (192,229 | ) | $ | 16,612 | |||||
Foreign | 522 | (3,876 | ) | (2,866 | ) | ||||||||
Total | $ | (221,340 | ) | $ | (196,105 | ) | $ | 13,746 | |||||
The (benefit from) provision for income taxes from continuing operations for the years ended December 31, 2013, 2012 and 2011 consists of the following (dollars in thousands): | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current (benefit) provision | |||||||||||||
Federal | $ | (57,641 | ) | $ | (4,268 | ) | $ | 9,637 | |||||
State and local | (2,509 | ) | 1,080 | 1,742 | |||||||||
Foreign | 289 | (3,075 | ) | (1,225 | ) | ||||||||
Total current (benefit) provision | (59,861 | ) | (6,263 | ) | 10,154 | ||||||||
Deferred (benefit) provision | |||||||||||||
Federal | 39,312 | (39,242 | ) | 26,904 | |||||||||
State and local | 1,137 | (1,856 | ) | 5,346 | |||||||||
Foreign | (260 | ) | 211 | 53 | |||||||||
Total deferred (benefit) provision | 40,189 | (40,887 | ) | 32,303 | |||||||||
Total (benefit from) provision for income taxes | $ | (19,672 | ) | $ | (47,150 | ) | $ | 42,457 | |||||
A reconciliation of the statutory U.S. federal income tax rate to our effective income tax rate for continuing operations for the years ended December 31, 2013, 2012 and 2011 is as follows (dollars in thousands): | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory U.S. federal income tax rate | (35.0 | )% | (35.0 | )% | 35 | % | |||||||
State and local income taxes | (3.4 | ) | (3.3 | ) | 2.7 | ||||||||
Nondeductible goodwill | — | 14.4 | 351.2 | ||||||||||
Valuation allowance | 32.6 | 2.4 | 2 | ||||||||||
Foreign taxes | (0.5 | ) | — | — | |||||||||
Tax credits | (0.8 | ) | — | (24.6 | ) | ||||||||
Worthless stock | — | — | (11.2 | ) | |||||||||
Other | (1.8 | ) | (2.5 | ) | (46.2 | ) | |||||||
Effective income tax rate | (8.9 | )% | (24.0 | )% | 308.9 | % | |||||||
The effective tax rate for the year ended December 31, 2013 decreased by 32.6% due to a $72.2 million valuation allowance being recorded in the current year. The 2013 effective tax rate benefited from the settlement of various state income tax audits and reversal of one of our foreign operations as a disregarded entity which increased the effective tax rate by 3.9%. The effective income tax rate for the year ended December 31, 2012 included a $73.6 million non-deductible goodwill and asset impairment charge which decreased our negative effective tax rate by approximately 14.4%. The 2012 effective tax rate benefited from favorable tax adjustments related to the resolution of various state tax exposures and the expiration of the statute of limitations on other federal and state tax exposures which increased our negative effective tax rate by 2.5%. The effective tax rate for the year ended December 31, 2011 increased by approximately 351.2% due to $121.7 million of non-deductible goodwill and asset impairment charges. The 2011 effective tax rate benefited from both the conversion of a foreign operation to a disregarded entity for U.S. tax purposes and favorable tax credit adjustments which decreased the effective tax rate by 46.1%. | |||||||||||||
A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits as of December 31, 2013, 2012 and 2011 is as follows (dollars in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Gross unrecognized tax benefits, beginning of the year | $ | 24,479 | $ | 29,892 | $ | 28,316 | |||||||
Additions for tax positions of prior years | 3,582 | — | 1,894 | ||||||||||
Reductions for tax positions of prior years | — | (3,548 | ) | (1,748 | ) | ||||||||
Additions for tax positions related to the current year | 813 | 958 | 2,764 | ||||||||||
Reductions due to settlements | (13,707 | ) | (2,531 | ) | (690 | ) | |||||||
Reductions due to lapse of applicable statute of limitations | (1,267 | ) | (292 | ) | (644 | ) | |||||||
Subtotal | 13,900 | 24,479 | 29,892 | ||||||||||
Interest and penalties | 3,107 | 3,794 | 4,532 | ||||||||||
Total gross unrecognized tax benefits, end of the year | $ | 17,007 | $ | 28,273 | $ | 34,424 | |||||||
The total amount of net unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate in future periods was $12.7 million and $18.8 million for the years ended December 31, 2013 and 2012, respectively. At December 31, 2013, our short and long-term reserves, recorded within current accrued income taxes and other non-current liabilities, respectively, related to FASB’s interpretation No. 48 of ASC Topic 740-10, Accounting for Uncertainty in Income Taxes or (“FIN 48”), were $0.7 million and $13.2 million, respectively. We record interest and penalties related to unrecognized tax benefits within (benefit from) provision for income taxes on our consolidated statements of (loss) income and comprehensive (loss) income. The total amount of accrued interest and penalties resulting from such unrecognized tax benefits was $3.1 million and $3.8 million as of the years ended December 31, 2013 and 2012, respectively. For the years ended December 31, 2013, 2012, and 2011, we recognized $0.7 million of benefit, $0.5 million of benefit and $0.6 million of expense, respectively, related to interest and penalties from unrecognized tax benefits in our consolidated results of continuing operations. | |||||||||||||
CEC and its subsidiaries file income tax returns in the U.S. and in various state, local and foreign jurisdictions. CEC and its subsidiaries are routinely examined by tax authorities in these jurisdictions. As of December 31, 2013, CEC had been examined by the Internal Revenue Service through our tax year ending December 31, 2007. In addition, a number of federal, state and local examinations are currently ongoing. It is possible that these examinations may be resolved within twelve months. Due to the potential for resolution of federal and state examinations, and the expiration of various statutes of limitations, it is reasonably possible that CEC’s gross unrecognized tax benefits balance may change within the next twelve months by a range of zero to $1.1 million. | |||||||||||||
Deferred income tax assets and liabilities result primarily from temporary differences in the recognition of various expenses for tax and financial statement purposes, and from the recognition of the tax benefits of net operating loss carry forwards. Components of deferred income tax assets and liabilities for continuing operations as of December 31, 2013 and 2012 are as follows (dollars in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred income tax assets: | |||||||||||||
Accrued occupancy | $ | 4,001 | $ | 3,526 | |||||||||
Deferred rent obligations | 16,213 | 17,160 | |||||||||||
Foreign tax credits | 12,026 | 22,267 | |||||||||||
Valuation allowance foreign tax credits | (3,116 | ) | (607 | ) | |||||||||
Compensation and employee benefits | 18,001 | 13,946 | |||||||||||
Tax net operating loss carry forwards | 7,220 | 5,454 | |||||||||||
Valuation allowance | (7,220 | ) | (5,100 | ) | |||||||||
Allowance for doubtful accounts | 1,668 | 2,141 | |||||||||||
Covenant not-to-compete | 80 | 117 | |||||||||||
Accrued settlements and legal | 7,713 | 1,887 | |||||||||||
Deferred compensation | 498 | 130 | |||||||||||
Accrued restructuring and severance | 2,057 | 2,332 | |||||||||||
Depreciation and amortization | 11,655 | — | |||||||||||
Other | 1,711 | 1,980 | |||||||||||
Valuation allowance deferred tax assets | (54,193 | ) | — | ||||||||||
Total deferred income tax assets | 18,314 | 65,233 | |||||||||||
Deferred income tax liabilities: | |||||||||||||
Depreciation and amortization | — | 5,523 | |||||||||||
Other | 4,064 | 5,273 | |||||||||||
Total deferred income tax liabilities | 4,064 | 10,796 | |||||||||||
Net deferred income tax assets | $ | 14,250 | $ | 54,437 | |||||||||
Net deferred income tax assets for continuing operations as of December 31, 2013 and 2012 are reflected in the consolidated balance sheets as follows (dollars in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Current deferred income tax assets, net | $ | 3,606 | $ | 7,088 | |||||||||
Non-current deferred income tax assets, net | 10,644 | 47,349 | |||||||||||
Net deferred income tax assets | $ | 14,250 | $ | 54,437 | |||||||||
As of December 31, 2013, we have net operating loss carry forwards, for state income tax purposes, of approximately $187.7 million. These net operating loss carry forwards are available to offset various future state taxable income, if any, and expire between 2014 and 2033. | |||||||||||||
In assessing the need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. Topic 740 provides that important factors in determining whether a deferred tax asset will be realized are whether there has been sufficient taxable income in recent years and whether sufficient taxable income is expected in future years in order to utilize the deferred tax asset. In evaluating the realizability of deferred income tax assets, we consider, among other things, historical levels of taxable income along with possible sources of future taxable income, which include: the expected timing of the reversals of existing temporary reporting differences, the existence of taxable income in prior carryback year(s), the expected impact of tax planning strategies that may be implemented to prevent the potential loss of future income tax benefits and expected future taxable income. Changes in, among other things, income tax legislation, statutory income tax rates, or future taxable income levels could materially impact our valuation of income tax assets and liabilities and could cause our income tax provision to vary significantly among financial reporting periods. If, based on the weight of available evidence, it is more likely than not the deferred tax assets will not be realized, with placing less weight on projections for future growth as projections for future growth are less objectively verifiable, we record a valuation allowance. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence may be objectively verified. A high degree of judgment is required to determine if, and the extent to which, valuation allowances should be recorded against deferred tax assets. A significant piece of objective negative evidence evaluated is the cumulative loss incurred over the three-year period ended December 31, 2013. Such objective evidence limits the ability to consider other subjective evidence such as our projections for future growth as projections for future growth into the future are less objectively verifiable. | |||||||||||||
As a result of our assessment, as of December 31, 2013, a valuation allowance of $72.2 million has been recorded. The valuation allowance expense of $72.2 million was recorded within loss from continuing operations on our statement of (loss) income and comprehensive (loss) income in the current year; $18.0 million of this expense is related to assets from discontinued operations to reduce the deferred tax assets recorded within discontinued operations as of December 31, 2013. Our total valuation allowance of $82.5 million recorded within our consolidated balance sheet as of December 31, 2013 consists of $72.2 million, of which $18.0 million is recorded within our discontinued operations balance sheet as well as $3.1 million and $7.2 million recorded for foreign tax credits and net operating loss carryforwards, respectively. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased, if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth. We will continue to evaluate our valuation allowance in future years for any change in circumstances that causes a change in judgment about the realizability of the deferred tax asset. | |||||||||||||
See Note 5 “Discontinued Operations” of the notes to our consolidated financial statements for income tax expense disclosures related to the sale of our International Segment. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||
SHARE-BASED COMPENSATION | ' | ||||||||||||||||||||
15. SHARE-BASED COMPENSATION | |||||||||||||||||||||
Overview of Share-Based Compensation Plans | |||||||||||||||||||||
The Career Education Corporation 2008 Incentive Compensation Plan (the “2008 Plan”) authorizes awards of stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock, performance units, annual incentive awards, and substitute awards, which generally may be settled in cash or shares of our common stock. Any shares of our common stock that are subject to awards of stock options or stock appreciation rights payable in shares will be counted as 1.0 share for each share issued for purposes of the aggregate share limit and any shares of our common stock that are subject to any other form of award payable in shares will be counted as 1.67 shares for each share issued for purposes of the aggregate share limit. As of December 31, 2013, there were approximately 6.4 million shares of common stock available for future share-based awards under the 2008 Plan, which is net of 3.9 million shares issuable upon exercise of outstanding options. This amount does not reflect 0.5 million shares underlying restricted stock units as of December 31, 2013, which upon vesting will be settled in shares of our common stock and thus reduce the common stock available for future share-based awards under the 2008 Plan by the amount vested, multiplied by the applicable factor under the plan. | |||||||||||||||||||||
As of December 31, 2013, we estimate that compensation expense of approximately $6.0 million will be recognized over the next four years for all unvested share-based awards that have been granted to participants, including stock options, shares of restricted stock and restricted stock units to be settled in shares of stock but excluding restricted stock units to be settled in cash. | |||||||||||||||||||||
Stock Options. The exercise price of stock options granted under each of the plans is equal to the fair market value of our common stock on the date of grant. Employee stock options generally become exercisable 25% per year over a four-year service period beginning on the date of grant and expire ten years from the date of grant. Non-employee directors’ stock options expire ten years from the date of grant and generally become exercisable as follows: one-third on the grant date, one-third on the first anniversary of the grant date, and one-third on the second anniversary of the grant date, or, one-fourth on the grant date and one-fourth for each of the first through third anniversaries of the grant date. Both employee stock options and non-employee director stock options are subject to possible earlier vesting and termination in certain circumstances. Generally, if a plan participant terminates his or her employment for any reason other than by death or disability during the vesting period, he or she forfeits the right to unvested stock option awards. Grants of stock options are generally only subject to the service conditions discussed previously. | |||||||||||||||||||||
Stock option activity during the years ended December 31, 2013, 2012 and 2011, under all of our plans was as follows: | |||||||||||||||||||||
Options | Weighted Average | Weighted | Aggregate | ||||||||||||||||||
Exercise Price | Average | Intrinsic | |||||||||||||||||||
Remaining | Value (in | ||||||||||||||||||||
Contractual | thousands) | ||||||||||||||||||||
Term | |||||||||||||||||||||
Outstanding as of December 31, 2010 | 3,574,614 | $ | 28.29 | ||||||||||||||||||
Granted | 565,720 | 21.87 | |||||||||||||||||||
Exercised | (141,625 | ) | 14.6 | $ | 1,112 | ||||||||||||||||
Forfeited | (456,459 | ) | 24.69 | ||||||||||||||||||
Cancelled | (188,788 | ) | 36.94 | ||||||||||||||||||
Outstanding as of December 31, 2011 | 3,353,462 | $ | 27.79 | ||||||||||||||||||
Granted | 534,895 | 7.91 | |||||||||||||||||||
Exercised | — | — | $ | — | |||||||||||||||||
Forfeited | (196,400 | ) | 18.52 | ||||||||||||||||||
Cancelled | (1,100,070 | ) | 24.09 | ||||||||||||||||||
Outstanding as of December 31, 2012 | 2,591,887 | $ | 25.96 | ||||||||||||||||||
Granted | 1,934,005 | 2.58 | |||||||||||||||||||
Exercised | (1,275 | ) | 3.08 | $ | 3 | ||||||||||||||||
Forfeited | (261,366 | ) | 5.19 | ||||||||||||||||||
Cancelled | (362,816 | ) | 31.6 | ||||||||||||||||||
Outstanding as of December 31, 2013 | 3,900,435 | $ | 15.15 | 6.8 years | $ | 5,513 | |||||||||||||||
Exercisable as of December 31, 2013 | 2,203,417 | $ | 23.42 | 5.0 years | $ | 1,116 | |||||||||||||||
The following table summarizes information with respect to all outstanding and exercisable stock options under all of our plans as of December 31, 2013: | |||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Range of Exercise Prices | Number of Options | Weighted Average | Weighted Average | Number | Weighted Average | ||||||||||||||||
Outstanding | Exercise Price | Remaining | Exercisable | Exercise Price | |||||||||||||||||
Contractual Term | |||||||||||||||||||||
(in Years) | |||||||||||||||||||||
$ 2.20 $ 2.20 | 644,628 | $ | 2.2 | 9.27 | — | $ | 0 | ||||||||||||||
$ 2.62 $ 2.65 | 96,729 | $ | 2.65 | 9.61 | 2,221 | $ | 2.62 | ||||||||||||||
$ 2.72 $ 2.72 | 700,972 | $ | 2.72 | 9.17 | 337,500 | $ | 2.72 | ||||||||||||||
$ 2.82 $ 6.51 | 415,002 | $ | 3.79 | 9.21 | 84,648 | $ | 4.94 | ||||||||||||||
$ 8.63 $13.67 | 394,500 | $ | 9.81 | 7.13 | 223,804 | $ | 10.7 | ||||||||||||||
$14.96 $22.04 | 480,384 | $ | 20.31 | 4.83 | 437,192 | $ | 20.17 | ||||||||||||||
$22.13 $30.67 | 481,244 | $ | 27.67 | 5.91 | 431,076 | $ | 27.96 | ||||||||||||||
$30.80 $34.70 | 498,751 | $ | 33.31 | 2.16 | 498,751 | $ | 33.31 | ||||||||||||||
$34.86 $62.56 | 185,100 | $ | 54.94 | 0.72 | 185,100 | $ | 54.94 | ||||||||||||||
$68.24 $68.24 | 3,125 | $ | 68.24 | 0.43 | 3,125 | $ | 68.24 | ||||||||||||||
3,900,435 | $ | 15.15 | 6.76 | 2,203,417 | $ | 23.42 | |||||||||||||||
Restricted Stock and Restricted Stock Units to be Settled in Stock. Restricted stock and restricted stock units to be settled in shares of stock generally become fully vested either three years after the date of grant or 25% per year over a four-year service period beginning on the date of grant. Generally, if a plan participant terminates his or her employment for any reason other than by death or disability during the vesting period, he or she forfeits the right to the unvested restricted stock and restricted stock units. The vesting of restricted stock and restricted stock units is subject to possible acceleration in certain circumstances. Certain restricted stock awarded to plan participants referred to as “performance-based restricted stock” are subject to performance conditions that, even if the requisite service period is met, may reduce the number of shares or units of restricted stock that vest at the end of the requisite service period or result in all shares or units being forfeited. | |||||||||||||||||||||
The following table summarizes information with respect to all outstanding restricted stock and restricted stock units to be settled in shares of stock under our plans during the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||
Restricted Stock to be Settled in Shares of Stock | |||||||||||||||||||||
Shares | Weighted Average | Units | Weighted Average | Total | |||||||||||||||||
Grant-Date Fair | Grant-Date Fair | ||||||||||||||||||||
Value Per Share | Value Per Unit | ||||||||||||||||||||
Outstanding as of December 31, 2010 | 2,188,636 | $ | 23.17 | — | $ | — | 2,188,636 | ||||||||||||||
Granted | 1,266,170 | 21.83 | — | — | 1,266,170 | ||||||||||||||||
Vested | (816,017 | ) | 15.55 | — | — | (816,017 | ) | ||||||||||||||
Forfeited | (842,042 | ) | 25.19 | — | — | (842,042 | ) | ||||||||||||||
Outstanding as of December 31, 2011 | 1,796,747 | $ | 24.74 | — | $ | — | 1,796,747 | ||||||||||||||
Granted | — | — | 1,416,832 | 8.32 | 1,416,832 | ||||||||||||||||
Vested | (374,260 | ) | 24.74 | — | — | (374,260 | ) | ||||||||||||||
Forfeited | (568,196 | ) | 24.73 | (272,899 | ) | 8.53 | (841,095 | ) | |||||||||||||
Outstanding as of December 31, 2012 | 854,291 | $ | 24.74 | 1,143,933 | $ | 8.27 | 1,998,224 | ||||||||||||||
Granted | — | — | 43,313 | 2.72 | 43,313 | ||||||||||||||||
Vested | (208,461 | ) | 23.1 | (306,605 | ) | 8.6 | (515,066 | ) | |||||||||||||
Forfeited | (424,268 | ) | 27.01 | (342,020 | ) | 7.22 | (766,288 | ) | |||||||||||||
Outstanding as of December 31, 2013 | 221,562 | $ | 22.19 | 538,621 | $ | 8.3 | 760,183 | ||||||||||||||
2013 Annual Grants. During the first quarter of 2013, as part of our annual long term incentive grants to employees, we issued restricted stock units to be settled in cash and cash-based performance unit awards in addition to stock option grants. The cash-settled restricted stock units are recorded as liabilities as the expense is recognized and the fair value for these awards is determined at each period end date with changes in fair value recorded in our statement of (loss) income and comprehensive (loss) income in the current period. Cash-settled restricted stock units are settled with a cash payment for each unit vested equal to the closing price on the vesting date. Cash-settled restricted stock units are not included in common shares reserved for issuance or available for issuance under the 2008 Plan. For cash-settled restricted stock units granted in 2013, vesting is primarily 25% per year over the four year period beginning on the grant date. | |||||||||||||||||||||
The following table summarizes information with respect to all cash-settled restricted stock units during the year to date ended December 31, 2013: | |||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||
Units to be Settled | |||||||||||||||||||||
in Cash | |||||||||||||||||||||
Outstanding as of December 31, 2012 | — | ||||||||||||||||||||
Granted | 2,938,283 | ||||||||||||||||||||
Vested | — | ||||||||||||||||||||
Forfeited | (649,368 | ) | |||||||||||||||||||
Outstanding as of December 31, 2013 | 2,288,915 | ||||||||||||||||||||
Upon vesting, based on the conditions set forth in the award agreements, these units will be settled in cash. We valued these units in accordance with the guidance set forth by FASB ASC Topic 718 – Compensation-Stock Compensation as of December 31, 2013 based upon our stock price as of December 31, 2013. The fair value for our outstanding cash-settled restricted stock units was $13.0 million as of December 31, 2013. The liability related to these outstanding units of $3.5 million was based on the number of days lapsed during the service period as of December 31, 2013. | |||||||||||||||||||||
The performance unit awards granted during 2013 are long-term incentive, cash-based awards. Payment of these awards is based upon a calculation of Total Shareholder Return (“TSR”) of CEC as compared to TSR across a specified peer group of our competitors over a three-year performance period ending primarily on December 31, 2015. These awards are recorded as liabilities and fair value for these awards is determined at each period end date with changes in fair value recorded in our statement of (loss) income and comprehensive (loss) income in the current period. The fair value of outstanding performance unit awards as of December 31, 2013 was $4.5 million. The liability for the outstanding performance unit awards of $1.1 million was based on the number of days lapsed during the service period as of December 31, 2013. | |||||||||||||||||||||
Stock Appreciation Rights. Stock Appreciation Rights (SAR) allow the recipient to receive stock or cash equal in value to the difference between the exercise price of the SAR and fair market value of our stock on the date of exercise. In the second quarter of 2013, and for the first time since inception of any of our plans, we granted approximately 0.2 million SARs to be settled in cash to our Chief Executive Officer with a grant date fair value of $0.2 million. These SARs vest 25% per year over a four year period beginning on the grant date and expire ten years from the date of grant. | |||||||||||||||||||||
Share-Based Awards Assumptions | |||||||||||||||||||||
In accordance with FASB ASC Topic 718, the fair value of each stock option award is estimated on the date of grant using the Black-Scholes-Merton option pricing model. We recognize the value of share-based compensation as expense in our consolidated statements of (loss) income and comprehensive (loss) income during the vesting periods of the underlying share-based awards using the straight-line method. FASB ASC Topic 718 requires companies to estimate forfeitures of share-based awards at the time of grant and revise such estimates in subsequent periods if actual forfeitures differ from original projections. | |||||||||||||||||||||
The fair value of each stock option award granted during the years ended December 31, 2013, 2012 and 2011 was estimated on the date of grant using the Black-Scholes-Merton option pricing model. Our determination of the fair value of each stock option is affected by our stock price on the date of grant, as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, our expected stock price volatility over the expected life of the awards and actual and projected stock option exercise behavior. The weighted average fair value per share of stock option awards granted during the years ended December 31, 2013, 2012 and 2011, and assumptions used to value stock options are as follows: | |||||||||||||||||||||
For the Year Ended | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Dividend yield | — | — | — | ||||||||||||||||||
Risk-free interest rate | 1.1 | % | 0.6 | % | 2.2 | % | |||||||||||||||
Weighted average volatility | 64.6 | % | 68.4 | % | 53.3 | % | |||||||||||||||
Expected life (in years) | 5.6 | 5.2 | 5.5 | ||||||||||||||||||
Weighted average grant date fair value per share of options granted | $ | 1.47 | $ | 4.1 | $ | 10.89 | |||||||||||||||
Volatility is calculated based on the actual historical daily prices of our common stock over the expected term of the stock option award. During the year ended December 31, 2013, we utilized a range of expected volatility assumptions for purposes of estimating the fair value of stock options awarded during the period. Such volatility assumptions ranged from 59.4% to 67.5%. | |||||||||||||||||||||
The expected life of each stock option award is estimated based primarily on our actual historical director and employee exercise behavior. | |||||||||||||||||||||
The fair value of each share of restricted stock and restricted stock units to be settled in stock is equal to the fair market value of our common stock as of the date of grant, which is the closing price per share of our common stock on NASDAQ. | |||||||||||||||||||||
Outstanding performance-based restricted stock awards generally have three-year vesting provided that performance conditions are met based on total company performance. Share-based compensation expense associated with performance-based restricted stock awards is recognized only to the extent that we believe performance conditions attributable to such awards will ultimately be satisfied. |
WEIGHTED_AVERAGE_COMMON_SHARES
WEIGHTED AVERAGE COMMON SHARES | 12 Months Ended |
Dec. 31, 2013 | |
Earnings Per Share [Abstract] | ' |
WEIGHTED AVERAGE COMMON SHARES | ' |
16. WEIGHTED AVERAGE COMMON SHARES | |
Basic net (loss) income per share is calculated by dividing net (loss) income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net (loss) income by the weighted average number of shares assuming dilution. Dilutive common shares outstanding is computed using the Treasury Stock Method and reflects the additional shares that would be outstanding if dilutive stock options were exercised and restricted stock and restricted stock units were settled for common shares during the period. | |
Due to the fact that we reported a loss from continuing operations for the years ended December 31, 2013, 2012 and 2011, potential common stock equivalents are excluded from the diluted common shares outstanding calculation. Per FASB ASC Topic 260 – Earnings Per Share, an entity that reports discontinued operations shall use income or loss from continuing operations as the benchmark for calculating diluted common shares outstanding, and as such, we have zero common stock equivalents since these shares would have an anti-dilutive effect on our net loss per share for the years ended December 31, 2013, 2012 and 2011. | |
In addition to the common stock issued upon the exercise of employee stock options and the granting of restricted stock, we issued approximately 0.4 million, 0.2 million and 0.2 million shares for the years ended December 31, 2013, 2012 and 2011, respectively, upon the purchase of common stock pursuant to our employee stock purchase plan. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2013 | |
Compensation And Retirement Disclosure [Abstract] | ' |
EMPLOYEE BENEFIT PLANS | ' |
17. EMPLOYEE BENEFIT PLANS | |
Retirement Savings and Profit Sharing Plan | |
We maintain a defined contribution 401(k) retirement savings plan which is available to all employees who work greater than 1,000 hours in a fiscal year. Under the plan, an eligible employee may elect to defer receipt of a portion of their annual pay, including salary and bonus. During 2013, we contributed this amount to the plan on the employee’s behalf and also made a matching contribution equal to 50% of the first 2% and 25% of the next 4% of the percentage of annual pay that the employee elected to defer. For the years ended December 31, 2012 and 2011, we made matching contributions equal to 100% of the first 2% and 50% of the next 4% of the percentage of annual pay that the employee elected to defer. A participant is 100% vested at all times in the amounts the employee defers from annual pay. A participant becomes 100% vested in our matching contributions after two years of credited employee service. During the years ended December 31, 2013, 2012 and 2011, we recorded expense for continuing and discontinued operations under this plan of approximately $4.6 million, $11.9 million, and $12.8 million, respectively, net of any forfeited employer matching contributions. | |
Employee Stock Purchase Plan | |
We maintain an employee stock purchase plan that allows substantially all full-time and part-time employees to acquire shares of our common stock through payroll deductions over three-month offering periods. The per share purchase price is equal to 95% of the fair market value of a share of our common stock on the last day of the offering period, and purchases are limited to 10% of an employee’s salary, up to a maximum of $25,000 per calendar year. We are authorized to issue up to 4.0 million shares of common stock under the employee stock purchase plan, and, as of December 31, 2013, 2.9 million shares of common stock have been issued under the plan. | |
Share-based compensation expense recorded during the years ended December 31, 2013, 2012 and 2011, in connection with the compensatory elements of our employee stock purchase plan, was not significant. |
SEGMENT_REPORTING
SEGMENT REPORTING | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
SEGMENT REPORTING | ' | ||||||||||||||||||||
18. SEGMENT REPORTING | |||||||||||||||||||||
Our segments are determined in accordance with FASB ASC Topic 280—Segment Reporting and are based upon how the Company analyzes performance and makes decisions. Each segment represents a group of postsecondary education providers that offer a variety of degree and non-degree academic programs. These segments are organized by key market segments to enhance brand focus and operational alignment within each segment to more effectively execute our strategic plan. | |||||||||||||||||||||
During the fourth quarter of 2013, we completed the sale and transfer of control of our International Segment, which consisted of our INSEEC schools and the International University of Monaco located in France and Monaco, respectively. See Note 3 “Dispositions” of the notes to our consolidated financial statements. Accordingly, the results of operations for the International Segment are now reported within discontinued operations. | |||||||||||||||||||||
During the third and fourth quarters of 2013, we announced the teach-out of six additional campuses, including four campuses within Health Education and two campuses within Design & Technology. These campuses are now included within our Transitional Schools segment. In addition, during 2013 we completed the teach-out of four campuses, SBC Hazelwood, SBI Landover, SBC Milwaukee and IADT Schaumburg, and accordingly, the results of operations for these schools are now reported within discontinued operations. | |||||||||||||||||||||
All prior period results have been recast to reflect our reporting segments on a comparable basis. Our six reporting segments are described below. | |||||||||||||||||||||
University Schools: | |||||||||||||||||||||
Colorado Technical University (CTU) schools collectively offer academic programs in the career-oriented disciplines of business studies, information systems and technologies, criminal justice, computer science and engineering, and health sciences in an online, classroom or laboratory setting. | |||||||||||||||||||||
American InterContinental University (AIU) schools collectively offer academic programs in the career-oriented disciplines of business studies, information technologies, criminal justice and design technologies in an online, classroom or laboratory setting. | |||||||||||||||||||||
Career Schools: | |||||||||||||||||||||
Health Education includes our Sanford-Brown schools, along with Brown College, Briarcliffe College and Missouri College. These schools collectively offer academic programs in the career-oriented disciplines of health education, complemented by certain programs in business studies and information technology in a classroom, laboratory or online setting. | |||||||||||||||||||||
Culinary Arts includes our Le Cordon Bleu schools in North America which collectively offer hands-on educational programs in the career-oriented disciplines of culinary arts and patisserie and baking in the commercial-grade kitchens of Le Cordon Bleu. Le Cordon Bleu also provides online programs in culinary arts and hotel and restaurant management. | |||||||||||||||||||||
Design & Technology includes IADT, Harrington College of Design and Brooks Institute schools. These schools collectively offer academic programs primarily in the career-oriented disciplines of visual communications, fashion design, photography, interior design, graphic design and video production in a classroom, laboratory or online setting as well as continuing education and short-term vocational programs in the area of energy conservation. | |||||||||||||||||||||
Transitional Schools includes our campuses that are currently being taught out. These campuses employ a gradual teach-out process, enabling them to continue to operate while current students complete their course of study; they no longer enroll new students. The results of operations for schools within the Transitional Schools segment will be reported within continuing operations for all periods presented until they complete their teach-out. As schools within Transitional Schools cease operations, the results of operation for all periods presented will be reflected within discontinued operations. | |||||||||||||||||||||
We evaluate segment performance based on operating results. Adjustments to reconcile segment results to consolidated results are included under the caption “Corporate and Other,” which primarily includes unallocated corporate activity and eliminations. | |||||||||||||||||||||
Summary financial information by reporting segment is as follows (dollars in thousands): | |||||||||||||||||||||
Revenue | Operating | Depreciation | Capital | Total | |||||||||||||||||
(Loss) | and | Expenditures | Assets (17) | ||||||||||||||||||
Income | Amortization | ||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||
CTU | $ | 347,255 | $ | 63,460 | $ | 2,919 | $ | 158 | $ | 75,441 | |||||||||||
AIU | 231,606 | (5,556 | ) | 3,069 | 122 | 54,426 | |||||||||||||||
Total University Schools | 578,861 | 57,904 | 5,988 | 280 | 129,867 | ||||||||||||||||
Health Education (2) | 125,845 | (50,480 | ) | 7,796 | 542 | 39,248 | |||||||||||||||
Culinary Arts (3) | 177,549 | (81,218 | ) | 17,083 | 705 | 108,349 | |||||||||||||||
Design & Technology (4) | 96,348 | (30,542 | ) | 4,934 | 5,691 | 19,470 | |||||||||||||||
Total Career Schools | 399,742 | (162,240 | ) | 29,813 | 6,938 | 167,067 | |||||||||||||||
Corporate and Other | — | (33,600 | ) | 22,574 | 6,272 | 491,674 | |||||||||||||||
Subtotal | 978,603 | (137,936 | ) | 58,375 | 13,490 | 788,608 | |||||||||||||||
Transitional Schools (5) | 78,757 | (76,748 | ) | 10,265 | 294 | 14,974 | |||||||||||||||
Discontinued Operations | 5,852 | 1,463 | |||||||||||||||||||
Total | $ | 1,057,360 | $ | (214,684 | ) | $ | 68,640 | $ | 19,636 | $ | 805,045 | ||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||
CTU (11) | $ | 363,935 | $ | 54,928 | $ | 3,476 | $ | 1,408 | $ | 72,554 | |||||||||||
AIU | 304,208 | 20,896 | 4,249 | 1,746 | 65,092 | ||||||||||||||||
Total University Schools | 668,143 | 75,824 | 7,725 | 3,154 | 137,646 | ||||||||||||||||
Health Education (6) | 153,441 | (70,888 | ) | 8,020 | 3,633 | 45,471 | |||||||||||||||
Culinary Arts (7) | 224,842 | (33,854 | ) | 17,670 | 2,535 | 173,477 | |||||||||||||||
Design & Technology (8) (14) | 124,611 | (56,747 | ) | 5,400 | 2,157 | 27,389 | |||||||||||||||
Total Career Schools | 502,894 | (161,489 | ) | 31,090 | 8,325 | 246,337 | |||||||||||||||
Corporate and Other (9) | 55 | (7,699 | ) | 22,640 | 16,481 | 433,152 | |||||||||||||||
Subtotal | 1,171,092 | (93,364 | ) | 61,455 | 27,960 | 817,135 | |||||||||||||||
Transitional Schools (10) | 173,788 | (103,637 | ) | 13,282 | 3,450 | 47,446 | |||||||||||||||
Discontinued Operations | 6,534 | 258,122 | |||||||||||||||||||
Total | $ | 1,344,880 | $ | (197,001 | ) | $ | 74,737 | $ | 37,944 | $ | 1,122,703 | ||||||||||
For the Year Ended December 31, 2011 | |||||||||||||||||||||
CTU (11) | $ | 415,411 | $ | 111,119 | $ | 3,425 | $ | 4,553 | |||||||||||||
AIU | 365,203 | 72,738 | 4,830 | 3,208 | |||||||||||||||||
Total University Schools | 780,614 | 183,857 | 8,255 | 7,761 | |||||||||||||||||
Health Education (12) | 211,177 | (44,602 | ) | 9,782 | 17,205 | ||||||||||||||||
Culinary Arts (13) | 303,135 | (63,452 | ) | 19,357 | 3,646 | ||||||||||||||||
Design & Technology (14) | 162,410 | 11,500 | 6,414 | 2,477 | |||||||||||||||||
Total Career Schools | 676,722 | (96,554 | ) | 35,553 | 23,328 | ||||||||||||||||
Corporate and Other (15) | (399 | ) | (30,194 | ) | 19,736 | 28,643 | |||||||||||||||
Subtotal | 1,456,937 | 57,109 | 63,544 | 59,732 | |||||||||||||||||
Transitional Schools (16) | 248,644 | (45,882 | ) | 12,843 | 14,132 | ||||||||||||||||
Discontinued Operations | 4,469 | ||||||||||||||||||||
Total | $ | 1,705,581 | $ | 11,227 | $ | 76,387 | $ | 78,333 | |||||||||||||
-1 | The statement of (loss) income and comprehensive (loss) income balances including revenue, operating (loss) income and depreciation and amortization are presented above on a continuing operations basis. Total assets and capital expenditures are presented on a consolidated basis including continuing and discontinued operations. | ||||||||||||||||||||
For the year ended December 31, 2013, segment results included: | |||||||||||||||||||||
-2 | Health Education: $8.8 million related to the settlement of a legal matter and a $1.7 million trade name impairment charge. | ||||||||||||||||||||
-3 | Culinary Arts: $15.5 million related to a pending legal settlement and a $13.0 million trade name impairment charge. | ||||||||||||||||||||
-4 | Design & Technology: $4.1 million in asset impairments, related to long-lived assets for our ongoing schools ($2.3) and decisions made to exit certain leased facilities ($1.8). | ||||||||||||||||||||
-5 | Transitional Schools: $2.6 million in asset impairments and $1.7 million related to the settlement of a legal matter. | ||||||||||||||||||||
For the year ended December 31, 2012, segment results included: | |||||||||||||||||||||
-6 | Health Education: $44.8 million of goodwill and trade name impairment charges. | ||||||||||||||||||||
-7 | Culinary Arts: An $8.1 million trade name impairment charge. | ||||||||||||||||||||
-8 | Design & Technology: A $40.8 million goodwill impairment charge. | ||||||||||||||||||||
-9 | Corporate and Other: A $19.0 million insurance recovery related to the settlement of claims under certain insurance policies. | ||||||||||||||||||||
-10 | Transitional Schools: $30.7 million in goodwill and asset impairment charges. | ||||||||||||||||||||
For the year ended December 31, 2011, segment results included: | |||||||||||||||||||||
-11 | During 2011, CTU recorded an accrual of $5.0 million within administrative expense for an estimate for potential reimbursements of government funds, which was subsequently settled for $3.6 million during the third quarter of 2012. | ||||||||||||||||||||
-12 | Health Education: $59.9 million of goodwill and intangible asset impairment charges. | ||||||||||||||||||||
-13 | Culinary Arts: $94.1 million of goodwill and trade name impairment charges. | ||||||||||||||||||||
-14 | Design & Technology: $6.0 million of legal expense related to the potential settlement of a legal matter, which was subsequently settled for $4.8 million during the fourth quarter of 2012. | ||||||||||||||||||||
-15 | Corporate and Other: A $7.0 million insurance recovery related to previously settled legal matters. | ||||||||||||||||||||
-16 | Transitional Schools: $37.3 million of goodwill and asset impairment charges. | ||||||||||||||||||||
-17 | Total assets do not include intercompany receivable or payable activity between schools and corporate and investments in subsidiaries. |
QUARTERLY_FINANCIAL_SUMMARY_UN
QUARTERLY FINANCIAL SUMMARY (UNAUDITED) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||
QUARTERLY FINANCIAL SUMMARY (UNAUDITED) | ' | ||||||||||||||||||||
19. QUARTERLY FINANCIAL SUMMARY (UNAUDITED) | |||||||||||||||||||||
Summary financial information by quarter is as follows (dollars in thousands, except per share data): | |||||||||||||||||||||
Quarter | |||||||||||||||||||||
2013 | First (3) | Second (4) | Third (5) | Fourth (6) | Total Year | ||||||||||||||||
Revenue (1) | $ | 290,203 | $ | 268,839 | $ | 251,224 | $ | 247,094 | $ | 1,057,360 | |||||||||||
Operating loss (1) | (29,625 | ) | (58,825 | ) | (67,209 | ) | (59,025 | ) | $ | (214,684 | ) | ||||||||||
Net loss | (15,203 | ) | (31,390 | ) | (87,064 | ) | (30,606 | ) | $ | (164,263 | ) | ||||||||||
Net loss per share (2) | |||||||||||||||||||||
Basic and Diluted | $ | (0.23 | ) | $ | (0.47 | ) | $ | (1.30 | ) | $ | (0.46 | ) | $ | (2.46 | ) | ||||||
Quarter | |||||||||||||||||||||
2012 | First (3) | Second (4) | Third | Fourth (6) | Total Year | ||||||||||||||||
Revenue (1) | $ | 383,701 | $ | 343,013 | $ | 314,890 | $ | 303,276 | $ | 1,344,880 | |||||||||||
Operating income (loss) (1) | 34,951 | (100,863 | ) | (39,562 | ) | (91,527 | ) | $ | (197,001 | ) | |||||||||||
Net income (loss) | 52,076 | (100,234 | ) | (33,146 | ) | (61,492 | ) | $ | (142,796 | ) | |||||||||||
Net income (loss) per share (2) | |||||||||||||||||||||
Basic and Diluted | $ | 0.78 | $ | (1.52 | ) | $ | (0.50 | ) | $ | (0.93 | ) | $ | (2.15 | ) | |||||||
-1 | As of December 31, 2013, the results of operations for campuses that were taught out or schools that were sold during 2013, (see Note 2 “Summary of Significant Accounting Polices” of the notes to our consolidated financial statements for further information) along with our campuses that had previously ceased operations or were sold, are presented within discontinued operations for all periods presented. | ||||||||||||||||||||
-2 | Basic and diluted earnings per share are calculated independently for each of the quarters presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree with the annual earnings per share amount for the corresponding year. | ||||||||||||||||||||
-3 | First quarter of 2013 net loss included a $6.7 million loss on sale of AIU London. First quarter of 2012 net income included a $19.0 million insurance recovery related to the settlement of claims under certain insurance policies. | ||||||||||||||||||||
-4 | Second quarter of 2013 net loss included $10.0 million related to the settlement of a legal matter and $4.0 million in trade name impairment charges. Second quarter of 2012 net loss included $85.6 million in goodwill and asset impairment charges, of which $1.0 million was recorded within loss from discontinued operations. | ||||||||||||||||||||
-5 | Third quarter of 2013 net loss included $11.6 million of trade name and asset impairment charges. | ||||||||||||||||||||
-6 | Fourth quarter of 2013 net loss included a $130.1 million gain related to the sale of our International Segment, a $72.2 million valuation allowance recorded against our deferred tax assets, $15.5 million for a pending legal settlement and $7.0 million in asset impairment charges. Fourth quarter of 2012 net loss included $40.8 million in asset impairment charges and $13.1 million in severance and related charges in conjunction with a reduction in force and campus closure announcements for our continuing operations. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Principles of Consolidation & Basis of Presentation | ' |
a. Principles of Consolidation and Basis of Presentation | |
These consolidated financial statements include the accounts of CEC and our wholly-owned subsidiaries (collectively “CEC”). All inter-company transactions and balances have been eliminated. The results of operations of all acquired businesses have been consolidated for all periods subsequent to the date of acquisition. | |
Reclassifications | ' |
b. Reclassifications | |
During 2013, we completed the sale of our International Segment (see Note 3 “Dispositions” of the notes to our consolidated financial statements for further discussion). Accordingly, the results of operations for our International Segment are reported within discontinued operations. Our remaining six reporting segments are: CTU, AIU (comprises University Schools); Health Education, Culinary Arts, Design & Technology (comprises Career Schools); and Transitional Schools (see Note 18 “Segment Reporting” for additional information). | |
During 2013, we announced the teach-out of six additional campuses, including four campuses within Health Education and two campuses within Design & Technology. These campuses, which employ a gradual teach-out process and no longer enroll new students, are now included within the Transitional Schools segment. As schools within Transitional Schools complete their teach-out and cease operations, the results of operations for all periods presented will be reflected within discontinued operations. During 2013 we completed the teach-out of four campuses, SBC Hazelwood, SBI Landover, SBC Milwaukee and IADT Schaumburg; accordingly, the results of operations for these schools are now reported within discontinued operations. | |
All prior period results have been recast to reflect our reporting segments on a comparable basis. | |
Management's Use of Estimates | ' |
c. Management’s Use of Estimates | |
The preparation of financial statements in conformity with generally accepted accounting principles in the U.S. (“GAAP”) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reported period. Significant estimates, among others, include the allowance for doubtful accounts, the allocation of purchase price to the fair value of net assets and liabilities acquired in connection with business combinations, the assumptions surrounding sublease income utilized in determining the fair value of remaining lease obligations, assumptions utilized in calculating income tax related matters including our deferred tax balances and any respective valuation allowance, fair values used in asset impairment evaluations including goodwill, intangible assets and long-lived assets, and the assumptions used in determining the fair value of accruals for severance and related costs. Although these estimates are based upon management’s best knowledge of current events and actions that we may undertake in the future, actual results could differ from these estimates. | |
Concentration of Credit Risk | ' |
d. Concentration of Credit Risk | |
A substantial portion of credit extended to students is repaid through the students’ participation in various federal financial aid programs authorized by Title IV of the Higher Education Act of 1965, as amended (“HEA”), which we refer to as “Title IV Programs.” For the years ended December 31, 2013, 2012 and 2011, approximately 78%, 80% and 83% respectively, of our schools’ cash receipts from tuition payments came from Title IV Program funding. | |
Transfers of funds received from Title IV Programs are made in accordance with the U.S. Department of Education’s (“ED”) requirements. Changes in ED funding of Title IV Programs could have a material impact on our ability to attract students and the realizability of our student receivables. See Item 1A, “Risk Factors,” for further discussion of the risks associated with Title IV Programs. | |
Allowance for Doubtful Accounts | ' |
e. Allowance for Doubtful Accounts | |
We extend unsecured credit to a portion of the students who are enrolled at our schools for tuition and certain other educational costs. Based upon past experience and judgment, we establish an allowance for doubtful accounts with respect to student receivables which we estimate will ultimately not be collectible. As such, our results from operations only reflect the amount of revenue that is estimated to be reasonably collectible. Our standard allowance estimation methodology considers a number of factors that, based on our collections experience, we believe have an impact on our credit risk and the realizability of our student receivables. Among these factors are a student’s status (in-school or out-of-school), anticipated funding source (third party, internal short-term and extended payment plans), whether or not an out-of-school student has completed his or her program of study, and our overall collections history. Out-of-school students include students who have withdrawn from or completed their programs of study. All other students are classified as in-school students. | |
We monitor our collections and write-off experience to assess whether or not adjustments to our allowance percentage estimates are necessary. Changes in trends in any of the factors that we believe impact the realizability of our student receivables, as noted above, or modifications to our credit standards, collection practices, and other related policies may impact our estimate of our allowance for doubtful accounts and our results from operations. Additionally, we monitor certain internal and external factors, including changes in our academic programs, as well as changes in the current economic, legislative and regulatory environments. | |
Fair Value of Financial Instruments | ' |
f. Fair Value of Financial Instruments | |
The carrying amounts for cash and cash equivalents, short-term investments, current portion of accounts receivables and accounts payable reported in our consolidated balance sheets approximate fair value because of the nature of these financial instruments, as they generally have short maturity periods. | |
The fair value measure of accounting for financial instruments establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | |
Our investment in auction rate securities (“ARS”) is presented within other non-current assets on the consolidated balance sheets. As of December 31, 2013, we have determined this investment is at risk for impairment due to the nature of the liquidity of the market over the past year. We believe this impairment is temporary, as we do not intend to sell the investment and it is unlikely we will be required to sell the investment before recovery of its amortized cost basis. | |
Our student receivables with repayment periods greater than one year are presented within non-current assets on the consolidated balance sheets. It is not practicable to estimate the fair value of these financial instruments, since observable market data is not readily available, and no reasonable estimation methodology exists. | |
Revenue Recognition | ' |
g. Revenue Recognition | |
Our revenue, which is derived primarily from academic programs taught to students who attend our schools, is generally segregated into two categories: (1) tuition and registration fees and (2) other. Tuition and registration fees represent costs to our students for educational services provided by our schools. For certain schools, we bill students a one-time registration fee at the beginning of their program and recognize the registration fee revenue on a straight-line basis over that program period, which includes any applicable externship period. Our schools charge tuition at varying amounts, depending on the school, the type of program and specific curriculum. A majority of our schools bill students a single charge that covers tuition and required program materials, such as textbooks and supplies, which we treat as a single accounting unit. Generally, we bill student tuition fees, including those treated as a single accounting unit, at the beginning of each academic period, and recognize the tuition fees as revenue on a straight-line basis over either the academic term or program period, which includes any applicable externship period. The tuition fees earnings method is determined by the type of program a student is enrolled in. Typically, schools that offer our culinary arts and our health programs earn tuition fees over the entire program while the remainder of our schools earns tuition fees over each academic term. The portion of tuition and registration fee payments received from students but not yet earned is recorded as deferred tuition revenue and reported as a current liability on our consolidated balance sheets, as we expect to earn these revenues within the next year. Deferred tuition revenue is stated net of outstanding student receivables on a student-by-student basis as of the end of the reporting period. If a student withdraws from one of our schools prior to the completion of the academic term or program period, we refund the portion of tuition and registration fees already paid that, pursuant to our refund policy and applicable federal and state law and accrediting agency standards, we are not entitled to retain. Generally, the amount to be refunded to a student is calculated based upon the period of time the student has attended classes and the amount of tuition and registration fees paid by the student as of their withdrawal date. These refunds typically reduce deferred tuition revenue and cash on our consolidated balance sheets as we generally do not recognize tuition revenue in our consolidated statements of (loss) income and comprehensive (loss) income until the related refund provisions have lapsed. The portion of deferred revenue we are entitled to retain once a student withdraws is immediately recognized as revenue with a corresponding charge to bad debt expense for any amount deemed to be uncollectible. | |
Our schools’ academic year is generally at least 30 weeks in length but varies both by school and program of study and is divided by academic terms or payment periods. Academic terms or payment periods are determined by regulatory requirements mandated by the federal government and/or appropriate accrediting body, which also vary by school and program. Academic terms are determined by start dates, which also vary by school and program. Our students finance costs through a variety of funding sources, including, among others, federal loan and grant programs, school payment plans, private loans and grants, private and institutional scholarships and cash payments. | |
Other revenue, which consists primarily of bookstore sales for schools not using single-charge billing and contract-training revenue, is billed and recognized as goods are delivered or services are performed. | |
Cash and Cash Equivalents | ' |
h. Cash and Cash Equivalents | |
Cash equivalents include short-term investments with a term to maturity of less than 90 days at the date of purchase. Loans which are disbursed under our current Credit Agreement are secured by 100% cash collateral. The Company has funds which are restricted in use and provide collateral for letters of credit. See Note 12 “Credit Agreements” for further details of our current amended and restated credit agreement and the original credit agreement. | |
Student Receivables | ' |
i. Student Receivables | |
Student receivables represent funds owed to us in exchange for the education services that we provided to a student. Student receivables are reported net of an allowance for doubtful accounts and net of deferred tuition revenue, as determined on a student-by-student basis as of the end of the reporting period. Student receivables which are due to be paid in less than one year are recorded as current assets within our consolidated balance sheets. Student receivables which are due to be paid at dates ranging from one to six years from the balance sheet date are reported as non-current assets within our consolidated balance sheets. | |
Generally, a student receivable balance is written off once it reaches greater than 90 days past due. Although we analyze past due receivables, it is not practical to provide an aging of our non-current student receivable balances as a result of the methodology utilized in determining our earned student receivable balances. Student receivables are recognized on our consolidated balance sheets as they are deemed earned over the course of a student’s program and/or term, and therefore cash collections are not applied against specifically dated transactions. | |
Discontinued Operations | ' |
Discontinued Operations | |
Discontinued operations are accounted for in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Section 360-10-35 Property, Plant, and Equipment. In accordance with FASB ASC Section 360-10-35, the net assets of discontinued operations are recorded on our consolidated balance sheets at estimated fair value. The results of operations of discontinued operations are segregated from continuing operations and reported separately as discontinued operations in our consolidated statements of (loss) income and comprehensive (loss) income. See Note 5 “Discontinued Operations” of the notes to our consolidated financial statements for further discussion. | |
Investments | ' |
k. Investments | |
Our investments, which primarily consist of U.S. Treasury bills, are classified as “available-for-sale” and recorded at fair value. Any unrealized holding gains or temporary unrealized holding losses, net of income tax effects, are reported as a component of accumulated other comprehensive loss within stockholders’ equity. Realized gains and losses are computed on the basis of specific identification and are included in miscellaneous income (expense) in our consolidated statements of (loss) income and comprehensive (loss) income. Our investment in a municipal auction rate security has a stated term to maturity of greater than one year. As such, we classify this investment as non-current on our consolidated balance sheets within other assets. | |
Inventories | ' |
l. Inventories | |
Inventories, consisting principally of program materials, textbooks, food, and supplies, are stated at the lower of cost, determined on a first-in, first-out basis, or market. The cost of inventory is reflected as a component of educational services and facilities expense as the items are used or sold. | |
Property and Equipment | ' |
m. Property and Equipment | |
Property and equipment are stated at cost less accumulated depreciation. Depreciation and amortization are recognized using the straight-line method over the estimated useful lives of the related assets for financial reporting purposes and an accelerated method for income tax reporting purposes. Leasehold improvements and assets recorded under capital leases are amortized on a straight-line basis over the shorter of the life of the lease or the useful life. Maintenance, repairs, minor renewals, and betterments are expensed as incurred, and major improvements, which extend the useful life of the asset, are capitalized. | |
Goodwill and Intangible Assets | ' |
n. Goodwill and Intangible Assets | |
Goodwill represents the excess of cost over fair market value of identifiable net assets acquired through business purchases. In accordance with FASB ASC Topic 350 – Intangibles-Goodwill and Other, we review goodwill for impairment on at least an annual basis by applying a fair-value-based test. In evaluating the recoverability of the carrying value of goodwill, we must make assumptions regarding the fair value of our reporting units, as defined under FASB ASC Topic 350. Goodwill is evaluated using a two-step impairment test at the reporting unit level. A reporting unit can be a strategic business unit or business within a strategic business unit. The first step compares the book value of a reporting unit, including goodwill, with its fair value, as determined by a combination of income and market approach valuation methodologies. If the book value of a reporting unit exceeds its fair value, we complete the second step to determine the amount of goodwill impairment loss that we should record. In the second step, we determine an implied fair value of the reporting unit’s goodwill by allocating the fair value of the reporting unit to all of the assets and liabilities other than goodwill (including any unrecognized intangible assets). The amount of impairment loss is equal to the excess of the book value of the goodwill over the implied fair value of goodwill. | |
In performing our annual review of goodwill balances for impairment, we estimate the fair value of each of our reporting units based on projected future operating results and cash flows, market assumptions and comparative market multiple methods. Determining fair value requires significant estimates and assumptions based on an evaluation of a number of factors, such as marketplace participants, relative market share, new student interest, student retention, future expansion or contraction expectations, amount and timing of future cash flows and the discount rate applied to the cash flows. Projected future operating results and cash flows used for valuation purposes do reflect improvements relative to recent historical periods with respect to, among other things, revenue growth and operating margins. Although we believe our projected future operating results and cash flows and related estimates regarding fair values are based on reasonable assumptions, historically projected operating results and cash flows have not always been achieved. The failure of one of our reporting units to achieve projected operating results and cash flows in the near term or long term may reduce the estimated fair value of the reporting unit below its carrying value and result in the recognition of a goodwill impairment charge. Significant management judgment is necessary to evaluate the impact of operating and macroeconomic changes and to estimate future cash flows. Assumptions used in our impairment evaluations, such as forecasted growth rates and our cost of capital, are based on the best available market information and are consistent with our internal forecasts and operating plans. In addition to cash flow estimates, our valuations are sensitive to the rate used to discount cash flows and future growth assumptions. These assumptions could be adversely impacted by certain of the risks discussed in “Risk Factors” in Item 1A. | |
Intangible assets include both indefinite and definite-lived assets. Indefinite-lived assets include our trade names and accreditation rights, which are recorded at fair market value upon acquisition and subsequently reviewed on an annual basis for impairment. Accreditation rights represent the ability of our schools to participate in Title IV Programs. | |
Our definite-lived assets include courseware, which represents the value of acquired curriculum, including lesson plans and syllabi, used to deliver educational services. Acquired courseware balances are amortized on a straight-line basis over their useful lives, which are estimated by management based upon, among other things, the expected future utilization period and the nature of the related academic programs. Other definite-lived intangible assets represent ownership related to renewable internet domain names and are amortized on a straight-line basis over the applicable renewal periods. | |
See Note 10 “Goodwill and Other Intangible Assets” of the notes to our consolidated financial statements for further discussion. | |
Impairment of Long-Lived Assets | ' |
o. Impairment of Long-Lived Assets | |
We review property and equipment, definite-lived intangible assets, and other long-lived assets for impairment on an annual basis or whenever adverse events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. If such adverse events or changes in circumstances occur, we will recognize an impairment loss if the undiscounted future cash flows expected to be generated by the assets are less than the carrying value of the related assets. The impairment loss would reduce the carrying value of the assets to their estimated fair value. | |
See Note 8 “Property and Equipment” of the notes to our consolidated financial statements for further discussion. | |
Contingencies | ' |
p. Contingencies | |
During the ordinary course of business, we are subject to various claims and contingencies. In accordance with FASB ASC Topic 450 – Contingencies, when we become aware of a claim or potential claim, we assess the likelihood of any related loss or exposure. The probability of whether an asset has been impaired or a liability has been incurred, and whether the amount of loss can be reasonably estimated, is analyzed, and if the loss contingency is both probable and reasonably estimable, then we accrue for costs, including direct costs incurred, associated with the loss contingency. If no accrual is made but the loss contingency is reasonably possible, we disclose the nature of the contingency and the related estimate of possible loss or range of loss if such an estimate can be made. For all matters that are currently being reviewed, we expense legal fees, including defense costs, as they are incurred. Loss contingencies include, but are not limited to, possible losses related to legal proceedings and regulatory compliance matters, and our assessment of exposure requires subjective and judgmental assessment. Liabilities established to provide for contingencies are adjusted as further information develops, circumstances change, or contingencies are resolved. See Note 13 “Commitments and Contingencies” of the notes to our consolidated financial statements for additional information. | |
Income Taxes | ' |
q. Income Taxes | |
We are subject to the income tax laws of the U.S. and various state, local and foreign jurisdictions. These tax laws are complex and subject to interpretation. As a result, significant judgments and interpretations are required in determining our income tax (benefits) provisions and evaluating our uncertain tax positions. | |
We account for income taxes in accordance with FASB ASC Topic 740 – Income Taxes. Topic 740 requires the recognition of deferred income tax assets and liabilities based upon the income tax consequences of temporary differences between financial reporting and income tax reporting by applying enacted statutory income tax rates applicable to future years to differences between the financial statement carrying amounts and the income tax basis of existing assets and liabilities. Topic 740 also requires that deferred income tax assets be reduced by a valuation allowance if it is more likely than not that some portion of the deferred income tax asset will not be realized. | |
In assessing the need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. Topic 740 provides that important factors in determining whether a deferred tax asset will be realized are whether there has been sufficient taxable income in recent years and whether sufficient taxable income is expected in future years in order to utilize the deferred tax asset. In evaluating the realizability of deferred income tax assets, we consider, among other things, historical levels of taxable income along with possible sources of future taxable income, which include: the expected timing of the reversals of existing temporary reporting differences, the existence of taxable income in prior carryback year(s), the expected impact of tax planning strategies that may be implemented to prevent the potential loss of future income tax benefits and expected future taxable income. Changes in, among other things, income tax legislation, statutory income tax rates, or future taxable income levels could materially impact our valuation of income tax assets and liabilities and could cause our income tax provision to vary significantly among financial reporting periods. If, based on the weight of available evidence, it is more likely than not the deferred tax assets will not be realized, with placing less weight on projections for future growth as projections for future growth are less objectively verifiable, we record a valuation allowance. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence may be objectively verified. A high degree of judgment is required to determine if, and the extent to which, valuation allowances should be recorded against deferred tax assets. A significant piece of objective negative evidence evaluated is the cumulative loss incurred over the three-year period ended December 31, 2013. Such objective evidence limits the ability to consider other subjective evidence such as our projections for future growth as projections for future growth are less objectively verifiable. | |
Topic 740 further clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in an income tax return. Topic 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. | |
Deferred Rent Obligations | ' |
r. Deferred Rent Obligations | |
Certain of the real estate operating lease agreements to which we are party contain rent escalation clauses or lease incentives, such as rent abatements or tenant improvement allowances. Rent escalation clauses and lease incentives are taken into account in determining total rent expense to be recognized during the term of the lease, which begins on the date that we take control of the leased space. Renewal options are considered when evaluating the overall term of the lease. In accordance with FASB ASC Topic 840 – Leases, differences between periodic rent expense and periodic cash rental payments, caused primarily by the recognition of rent expense on a straight-line basis and tenant improvement allowances due or received from lessors, are recorded as deferred rent obligations on our consolidated balance sheets. | |
We record tenant improvement allowances as a deferred rent obligation on our consolidated balance sheets and as a cash inflow from operating activities in our consolidated statements of cash flows. We record capital expenditures funded by tenant improvement allowances received as a leasehold improvement on our consolidated balance sheets and as an investing activity within our consolidated statements of cash flows. | |
Share-Based Compensation | ' |
s. Share-Based Compensation | |
FASB ASC Topic 718 – Compensation-Stock Compensation requires that all share-based payments to employees and non-employee directors, including grants of stock options, shares or units of restricted stock, and the compensatory elements of employee stock purchase plans, be recognized in the financial statements based on the estimated fair value of the equity or liability instruments issued. | |
See Note 15 “Share-Based Compensation” of the notes to our consolidated financial statements for further discussion of our share-based compensation plans, the nature of share-based awards issued under the plans and our accounting for share-based awards. | |
Foreign Currency Translation | ' |
t. Foreign Currency Translation | |
As of December 3, 2013, we sold and transferred control of our International Segment. For the years ended December 31, 2013, 2012 and 2011, revenues and expenses related to our foreign-based subsidiaries have been translated into U.S. dollars using average exchange rates during the reporting period, with transaction gains or losses included in net (loss) income. The aggregate transaction gains or losses included in net (loss) income for the years ended December 31, 2012 and 2011 were not significant. During 2013, we reclassified $10.0 million of cumulative translation adjustments from our International schools and AIU London as part of the gain (loss) on sale of those operations in accordance with FASB ASC Topic 810 – Consolidation. The assets and liabilities of our International subsidiaries remaining as of each balance sheet date have been translated into U.S. dollars using exchange rates in effect at the balance sheet dates, with gains and losses resulting from such translations included in accumulated other comprehensive loss. Accumulated other comprehensive loss included a comprehensive loss related to foreign currency translations of less than $0.1 million for the year ended December 31, 2013 and $4.3 million for the year ended December 31, 2012. The functional currency of each of our foreign subsidiaries is its local currency. See Note 3 “Dispositions” of the notes to our consolidated financial statements for additional information. | |
Educational Services and Facilities Expense | ' |
u. Educational Services and Facilities Expense | |
Educational services and facilities expense includes costs directly attributable to the educational activities of our schools, including: (1) salaries and benefits of faculty, academic administrators, and student support personnel, (2) costs of educational supplies and facilities, including rents on school leases, certain costs of establishing and maintaining computer laboratories, costs of student housing, and owned and leased facility costs, and (3) costs of other goods and services provided by our schools, including costs of textbooks, laptop computers, restaurant services and contract training. Costs of such other goods and services for continuing operations, included in educational services and facilities expense in our consolidated statements of (loss) income and comprehensive (loss) income, were approximately $39.7 million, $55.8 million and $79.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |
Advertising Costs | ' |
v. Advertising Costs | |
Advertising costs are expensed as incurred. Advertising costs for continuing operations, which are included in general and administrative expenses in our consolidated statements of (loss) income and comprehensive (loss) income, were $272.0 million, $302.0 million and $276.3 million, for the years ended December 31, 2013, 2012 and 2011, respectively. | |
Fair Value Measurements | ' |
Fair Value Measurements | |
FASB ASC Topic 820 – Fair Value Measurements establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. |
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | ' | ||||||||||||||||||||
Summary Results of Operations for Discontinued Operations | ' | ||||||||||||||||||||
Combined summary results of operations for our discontinued operations for the years ended December 31, 2013, 2012 and 2011, were as follows (dollars in thousands): | |||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2013 (1) | 2012 (2) | 2011 (3) | |||||||||||||||||||
Revenue | $ | 137,661 | $ | 145,684 | $ | 210,656 | |||||||||||||||
Pretax income | $ | 126,010 | $ | 2,193 | $ | 48,895 | |||||||||||||||
Income tax provision (benefit) | 88,605 | (3,966 | ) | 1,611 | |||||||||||||||||
Income from discontinued operations, net of tax | $ | 37,405 | $ | 6,159 | $ | 47,284 | |||||||||||||||
-1 | The income tax expense associated with the gain on sale of our International Segment approximates $87.9 million, of which $39.9 million was recorded during the third quarter of 2013 once we determined that our investment in foreign subsidiaries was no longer permanent in duration. The $39.9 million represented the tax effect of the difference in basis for financial reporting versus tax reporting. | ||||||||||||||||||||
-2 | 2012 pretax income includes income for non-profit entities within our International Schools, which are not subject to income tax. This income is partially offset with losses from our domestic schools, which are subject to income tax. As a result, a net tax benefit is reported for 2012. | ||||||||||||||||||||
-3 | During the year ended December 31, 2011, we completed the sale of our Istituto Marangoni schools in Milan, Paris and London resulting in a pretax gain of approximately $27.1 million. The income tax provision for fiscal 2011 included $0.3 million of income tax expense related to this sale. The tax gain related to this transaction was significantly less than the gain reflected within the income before income tax for fiscal 2011 due to the $20.2 million of goodwill which was allocated to the remainder of the International reporting unit for book purposes, but which was included in the net assets sold for purposes of calculating the taxable gain. | ||||||||||||||||||||
Assets and Liabilities of Discontinued Operations on Consolidated Balance Sheets | ' | ||||||||||||||||||||
Assets and liabilities of discontinued operations on our consolidated balance sheets as of December 31, 2013 and 2012 include the following (dollars in thousands): | |||||||||||||||||||||
As of December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Assets: | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 127,738 | |||||||||||||||||
Receivables, net | 213 | 16,928 | |||||||||||||||||||
Other current assets | 50 | 6,458 | |||||||||||||||||||
Deferred income tax assets, net | — | 3,454 | |||||||||||||||||||
Total current assets | 263 | 154,578 | |||||||||||||||||||
Non-current assets: | |||||||||||||||||||||
Property and equipment, net | — | 29,790 | |||||||||||||||||||
Goodwill | — | 45,669 | |||||||||||||||||||
Intangible assets, net | — | 5,675 | |||||||||||||||||||
Deferred income tax assets | — | 17,804 | |||||||||||||||||||
Other assets, net | 1,200 | 4,606 | |||||||||||||||||||
Total assets of discontinued operations | $ | 1,463 | $ | 258,122 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Current maturities of capital lease obligations | $ | — | $ | 211 | |||||||||||||||||
Accounts payable | 10 | 6,378 | |||||||||||||||||||
Accrued expenses | 325 | 18,110 | |||||||||||||||||||
Deferred tuition revenue | — | 42,363 | |||||||||||||||||||
Remaining lease obligations | 11,275 | 9,174 | |||||||||||||||||||
Total current liabilities | 11,610 | 76,236 | |||||||||||||||||||
Non-current liabilities: | |||||||||||||||||||||
Remaining lease obligations | 27,507 | 33,103 | |||||||||||||||||||
Other | 75 | 2,836 | |||||||||||||||||||
Total liabilities of discontinued operations | $ | 39,192 | $ | 112,175 | |||||||||||||||||
Changes in Future Remaining Lease Obligations Discontinued Operations | ' | ||||||||||||||||||||
Changes in our future remaining lease obligations, which are reflected within current and non-current liabilities of discontinued operations on our consolidated balance sheets, for the years ended December 31, 2013, 2012 and 2011, were as follows (dollars in thousands): | |||||||||||||||||||||
Balance, | Charges | Net Cash | Other(3) | Balance, | |||||||||||||||||
Beginning | Incurred(1) | Payments(2) | End of | ||||||||||||||||||
of Period | Period | ||||||||||||||||||||
For the twelve months ended December 31, 2013 | $ | 42,277 | $ | 8,551 | $ | (12,323 | ) | $ | 277 | $ | 38,782 | ||||||||||
For the twelve months ended December 31, 2012 | $ | 45,961 | $ | 7,371 | $ | (11,055 | ) | $ | — | $ | 42,277 | ||||||||||
For the twelve months ended December 31, 2011 | $ | 50,827 | $ | 7,636 | $ | (11,035 | ) | $ | (1,467 | ) | $ | 45,961 | |||||||||
-1 | Includes charges for newly vacated spaces and subsequent adjustments for accretion, revised estimates, and variances between estimated and actual charges, net of any reversals for terminated lease obligations. | ||||||||||||||||||||
-2 | See Note 9 “Leases” of the notes to our consolidated financial statements for the future minimum lease payments under operating leases for discontinued operations as of December 31, 2013. | ||||||||||||||||||||
-3 | Includes existing prepaid rent and deferred rent liability balances for newly vacated spaces that are netted with the losses incurred in the period recorded. |
CASH_AND_CASH_EQUIVALENTS_AND_1
CASH AND CASH EQUIVALENTS AND INVESTMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Cash And Cash Equivalents [Abstract] | ' | ||||||||||||||||||||
Cash and Cash Equivalents and Investments from Continuing Operations | ' | ||||||||||||||||||||
Cash and cash equivalents from our continuing operations consist of the following as of December 31, 2013 and 2012 (dollars in thousands): | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Cash | $ | 155,938 | $ | 112,763 | |||||||||||||||||
Money market funds | 163,005 | 121 | |||||||||||||||||||
Cash and cash equivalents, unrestricted | 318,943 | 112,884 | |||||||||||||||||||
Restricted cash | 12,564 | 97,878 | |||||||||||||||||||
Total cash and cash equivalents | $ | 331,507 | $ | 210,762 | |||||||||||||||||
Investments from Continuing Operations | ' | ||||||||||||||||||||
Investments from our continuing operations consist of the following as of December 31, 2013 and 2012 (dollars in thousands): | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Gross Unrealized | |||||||||||||||||||||
Cost | Gain | (Loss) | Fair Value | ||||||||||||||||||
Short-term investments (available for sale): | |||||||||||||||||||||
U.S. Treasury bills | $ | 31,591 | $ | 1 | $ | — | $ | 31,592 | |||||||||||||
Long-term investments (available for sale): | |||||||||||||||||||||
Municipal bond | 7,850 | — | (476 | ) | 7,374 | ||||||||||||||||
Total investments (available for sale) | $ | 39,441 | $ | 1 | $ | (476 | ) | $ | 38,966 | ||||||||||||
December 31, 2012 | |||||||||||||||||||||
Gross Unrealized | |||||||||||||||||||||
Cost | Gain | (Loss) | Fair Value | ||||||||||||||||||
Short-term investments (available for sale): | |||||||||||||||||||||
U.S. Treasury bills | $ | 63,879 | $ | 4 | $ | (7 | ) | $ | 63,876 | ||||||||||||
Long-term investments (available for sale): | |||||||||||||||||||||
Municipal bond | 7,850 | — | (468 | ) | 7,382 | ||||||||||||||||
Total investments (available for sale) | $ | 71,729 | $ | 4 | $ | (475 | ) | $ | 71,258 | ||||||||||||
Schedule of Available-for-Sale Investments | ' | ||||||||||||||||||||
A schedule of available-for-sale investments segregated by their original stated terms to maturity as of December 31, 2013 and 2012, are as follows (dollars in thousands): | |||||||||||||||||||||
Less than | One to five | Five to ten | Greater than | Total | |||||||||||||||||
one year | years | years | ten years | ||||||||||||||||||
Original stated term to maturity of available-for-sale-investments as of December 31, 2013 | $ | 31,592 | $ | — | $ | — | $ | 7,374 | $ | 38,966 | |||||||||||
Original stated term to maturity of available-for-sale-investments as of December 31, 2012 | $ | 63,876 | $ | — | $ | — | $ | 7,382 | $ | 71,258 | |||||||||||
Investments Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||
Investments measured at fair value on a recurring basis subject to the disclosure requirements of FASB ASC Topic 820 at December 31, 2013 and 2012 were as follows (dollars in thousands): | |||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
U.S. Treasury bills | $ | 31,592 | $ | — | $ | — | $ | 31,592 | |||||||||||||
Municipal bond | — | — | 7,374 | 7,374 | |||||||||||||||||
Totals | $ | 31,592 | $ | — | $ | 7,374 | $ | 38,966 | |||||||||||||
As of December 31, 2012 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
U.S. Treasury bills | $ | 63,876 | $ | — | $ | — | $ | 63,876 | |||||||||||||
Municipal bond | — | — | 7,382 | 7,382 | |||||||||||||||||
Totals | $ | 63,876 | $ | — | $ | 7,382 | $ | 71,258 | |||||||||||||
Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ||||||||||||||||||||
The following table presents a rollforward of our assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as defined in FASB ASC Topic 820 for the year to date ended December 31, 2013 (dollars in thousands): | |||||||||||||||||||||
Balance at December 31, 2012 | $ | 7,382 | |||||||||||||||||||
Unrealized loss | (8 | ) | |||||||||||||||||||
Balance at December 31, 2013 | $ | 7,374 | |||||||||||||||||||
STUDENT_RECEIVABLES_Tables
STUDENT RECEIVABLES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||
Changes in Current and Non-Current Receivables Allowance | ' | ||||||||||||||||
Changes in our current and non-current receivables allowance for the years ended December 31, 2013, 2012 and 2011 were as follows (dollars in thousands): | |||||||||||||||||
Balance, | Charges to | Amounts | Balance, | ||||||||||||||
Beginning | Expense (1) | Written-off | End of | ||||||||||||||
of Period | Period | ||||||||||||||||
For the year ended December 31, 2013 | $ | 39,865 | $ | 27,641 | $ | (39,419 | ) | $ | 28,087 | ||||||||
For the year ended December 31, 2012 | $ | 56,325 | $ | 37,949 | $ | (54,409 | ) | $ | 39,865 | ||||||||
For the year ended December 31, 2011 | $ | 83,028 | $ | 50,699 | $ | (77,402 | ) | $ | 56,325 | ||||||||
-1 | Charges to expense include an offset for recoveries of amounts previously written off of $7.5 million, $7.8 million and $8.8 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||
Schedule of Cost Basis and Estimated Useful Lives of Property and Equipment | ' | ||||||||||
The cost basis and estimated useful lives of property and equipment for continuing operations as of December 31, 2013 and 2012 are as follows (dollars in thousands): | |||||||||||
December 31, | |||||||||||
2013 | 2012 | Life | |||||||||
Land | $ | 2,388 | $ | 2,388 | |||||||
Building and improvements | 8,547 | 8,534 | 15-35 years | ||||||||
Computer hardware and software | 148,927 | 152,910 | 3 years | ||||||||
Culinary equipment and library materials | 21,570 | 21,957 | 10 years | ||||||||
Furniture, fixtures and equipment | 127,471 | 135,276 | 5-10 years | ||||||||
Leasehold improvements | 370,769 | 383,068 | Shorter of Life of Lease | ||||||||
or Useful Life | |||||||||||
Vehicles | 868 | 906 | 5 years | ||||||||
Construction in progress | 1,032 | 1,838 | |||||||||
681,572 | 706,877 | ||||||||||
Less-Accumulated depreciation | (499,176 | ) | (459,089 | ) | |||||||
Total property and equipment, net | $ | 182,396 | $ | 247,788 | |||||||
LEASES_Tables
LEASES (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Leases [Abstract] | ' | ||||||||||||||||||||
Schedule of Changes in Future Minimum Lease Obligations | ' | ||||||||||||||||||||
Changes in our future minimum lease obligations for the years ended December 31, 2013, 2012 and 2011 were as follows (dollars in thousands): | |||||||||||||||||||||
Balance, | Charges | Net Cash | Other(2) | Balance, | |||||||||||||||||
Beginning | Incurred(1) | Payments | End of | ||||||||||||||||||
of Period | Period | ||||||||||||||||||||
For the year ended December 31, 2013 | $ | 13,262 | $ | 5,209 | $ | (9,202 | ) | $ | 3,292 | $ | 12,561 | ||||||||||
For the year ended December 31, 2012 | $ | 12,831 | $ | 4,249 | $ | (3,818 | ) | $ | — | $ | 13,262 | ||||||||||
For the year ended December 31, 2011 | $ | 17,770 | $ | 1,313 | $ | (6,544 | ) | $ | 292 | $ | 12,831 | ||||||||||
-1 | Includes charges for newly vacated spaces and subsequent adjustments for accretion, revised estimates and variances between estimated and actual charges, net of any reversals for terminated lease obligations. | ||||||||||||||||||||
-2 | Includes existing prepaid rent and deferred rent liability balances for newly vacated spaces that offset the losses incurred in the period recorded. | ||||||||||||||||||||
Schedule of Future Minimum Lease Payments under Capital Leases and Operating Leases for Continuing Operations and Discontinued Operations | ' | ||||||||||||||||||||
As of December 31, 2013, future minimum lease payments under operating leases for continuing and discontinued operations are as follows (dollars in thousands): | |||||||||||||||||||||
Operating Leases | |||||||||||||||||||||
Continuing | Discontinued | Total | |||||||||||||||||||
Operations | Operations | ||||||||||||||||||||
2014 | $ | 86,297 | $ | 14,519 | $ | 100,816 | |||||||||||||||
2015 | 79,602 | 13,660 | 93,262 | ||||||||||||||||||
2016 | 67,870 | 11,153 | 79,023 | ||||||||||||||||||
2017 | 56,878 | 10,326 | 67,204 | ||||||||||||||||||
2018 | 54,978 | 3,887 | 58,865 | ||||||||||||||||||
2019 and thereafter | 85,206 | 782 | 85,988 | ||||||||||||||||||
Total | $ | 430,831 | $ | 54,327 | $ | 485,158 | |||||||||||||||
Schedule of Future Minimum Sublease Rental Income under Operating Leases for Continuing and Discontinued Operations | ' | ||||||||||||||||||||
As of December 31, 2013, future minimum sublease rental income under operating leases for continuing and discontinued operations is as follows (dollars in thousands): | |||||||||||||||||||||
Operating Subleases | |||||||||||||||||||||
Continuing | Discontinued | Total | |||||||||||||||||||
Operations | Operations | ||||||||||||||||||||
2014 | $ | 2,324 | $ | 2,621 | 4,945 | ||||||||||||||||
2015 | 2,939 | 3,175 | 6,114 | ||||||||||||||||||
2016 | 1,649 | 3,217 | 4,866 | ||||||||||||||||||
2017 | 1,577 | 3,119 | 4,696 | ||||||||||||||||||
2018 | 1,356 | — | 1,356 | ||||||||||||||||||
2019 and thereafter | 1,513 | — | 1,513 | ||||||||||||||||||
Total | $ | 11,358 | $ | 12,132 | $ | 23,490 | |||||||||||||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Changes in Carrying Amount of Goodwill | ' | ||||||||||||||||||||||||||||
Changes in the carrying amount of goodwill for continuing operations during the years ended December 31, 2013 and 2012 are as follows by segment (dollars in thousands): | |||||||||||||||||||||||||||||
CTU | AIU | Health | Culinary | Design & | Transitional | Total | |||||||||||||||||||||||
Education | Arts | Technology | |||||||||||||||||||||||||||
Goodwill balance as of December 31, 2011(1) | $ | 45,938 | $ | 41,418 | $ | 41,293 | $ | — | $ | 40,752 | $ | 1,305 | $ | 170,706 | |||||||||||||||
Goodwill impairment(2) | — | — | (41,293 | ) | — | (40,752 | ) | (1,305 | ) | (83,350 | ) | ||||||||||||||||||
Goodwill balance as of December 31, 2012 and 2013 | $ | 45,938 | $ | 41,418 | $ | — | $ | — | $ | — | $ | — | $ | 87,356 | |||||||||||||||
-1 | Goodwill impairments of approximately $168.7 million were recorded during the year ended December 31, 2011. | ||||||||||||||||||||||||||||
-2 | Goodwill impairments were recorded during the year ended December 31, 2012 | ||||||||||||||||||||||||||||
Schedule of Cost Basis, Accumulated Amortization Net Book Value of Intangible Assets | ' | ||||||||||||||||||||||||||||
As of December 31, 2013 and 2012, the cost basis, accumulated amortization and net book value of intangible assets for continuing operations are as follows (dollars in thousands): | |||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Cost | Accumulated | Net Book | Cost | Accumulated | Net Book | ||||||||||||||||||||||||
Amortization | Value | Amortization | Value | ||||||||||||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||||||||||||||
Courseware | $ | 10,861 | $ | (10,297 | ) | $ | 564 | $ | 12,361 | $ | (10,576 | ) | $ | 1,785 | |||||||||||||||
Other | 96 | (76 | ) | 20 | 96 | (52 | ) | 44 | |||||||||||||||||||||
Amortizable intangible assets, net | $ | 10,957 | $ | (10,373 | ) | $ | 584 | $ | 12,457 | $ | (10,628 | ) | $ | 1,829 | |||||||||||||||
Non-amortizable intangible assets: | |||||||||||||||||||||||||||||
Accreditation, licensing, and Title IV Program participation rights | $ | 1,000 | $ | 1,000 | |||||||||||||||||||||||||
Trade names | 38,533 | 53,177 | |||||||||||||||||||||||||||
Non-amortizable intangible assets | 39,533 | 54,177 | |||||||||||||||||||||||||||
Intangible assets, net | $ | 40,117 | $ | 56,006 | |||||||||||||||||||||||||
RESTRUCTURING_CHARGES_Tables
RESTRUCTURING CHARGES (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||||||||||||||
Accrual for Severance and Related Costs | ' | ||||||||||||||||||||
The following table details the changes in our accrual for severance and related costs associated with all of these restructuring events for our continuing operations during the years ended December 31, 2013 and 2012 (dollars in thousands): | |||||||||||||||||||||
Balance, | Severance and | Payments(1) | Non-cash | Balance, | |||||||||||||||||
Beginning | related charges | adjustments(2) | End of | ||||||||||||||||||
of Period | Period | ||||||||||||||||||||
For the year ended December 31, 2013 | $ | 9,860 | $ | 6,218 | $ | (9,120 | ) | $ | (1,233 | ) | $ | 5,725 | |||||||||
For the year ended December 31, 2012 | $ | 253 | $ | 13,996 | $ | (2,299 | ) | $ | (2,090 | ) | $ | 9,860 | |||||||||
-1 | Includes payments related to COBRA and outplacement services which are assumed to be completed by the third month following an employee’s departure. | ||||||||||||||||||||
-2 | Includes cancellations due to employee departures prior to agreed upon end dates, employee transfers to open positions within the organization and subsequent adjustments to severance and related costs. | ||||||||||||||||||||
Restructuring Charges by Segment | ' | ||||||||||||||||||||
Severance and related expenses for the years ended December 31, 2013 and 2012 by reporting segment is as follows (dollars in thousands): | |||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
CTU | $ | 19 | $ | 261 | |||||||||||||||||
AIU | 213 | 1,834 | |||||||||||||||||||
Total University Schools | 232 | 2,095 | |||||||||||||||||||
Health Education | 790 | 1,576 | |||||||||||||||||||
Culinary Arts | 472 | 598 | |||||||||||||||||||
Design & Technology | 579 | 1,376 | |||||||||||||||||||
Total Career Schools | 1,841 | 3,550 | |||||||||||||||||||
Corporate and Other | 2,087 | 1,620 | |||||||||||||||||||
Transitional Schools | 2,058 | 6,731 | |||||||||||||||||||
Total | $ | 6,218 | $ | 13,996 | |||||||||||||||||
CREDIT_AGREEMENTS_Tables
CREDIT AGREEMENTS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of U.S. Credit Agreement | ' | ||||||||
Selected details of our credit agreements as of and for the years ended December 31, 2013 and 2012 were as follows (dollars in thousands): | |||||||||
As of December 31, | |||||||||
2013(1) | 2012(2) | ||||||||
Credit Agreements: | |||||||||
Credit facility remaining availability(4) | $ | 70,000 | $ | — | |||||
Credit facility borrowings | $ | — | $ | 80,000 | |||||
Outstanding letters of credit(3) | $ | 12,318 | $ | 6,981 | |||||
Availability of additional letters of credit(4) | $ | 7,682 | $ | — | |||||
Average daily revolving credit borrowings for the year ended | $ | 219 | $ | 219 | |||||
Weighted average annual interest rate | 5.25 | % | 5.25 | % | |||||
Commitment fee rate | 0.25 | % | 0.25 | % | |||||
Letter of credit fee rate | 0.75 | % | 0.5 | % | |||||
-1 | Details reflect terms under our existing Credit Agreement which was entered into December 30, 2013, except for our outstanding letters of credit. | ||||||||
-2 | Details reflect terms under the original credit agreement which was replaced with our existing Credit Agreement, except for our outstanding letters of credit. | ||||||||
-3 | Represents letters of credit which are fully collateralized with $12.6 million and $7.4 million of restricted cash as of December 31, 2013 and 2012, respectively. | ||||||||
-4 | The letters of credit sublimit of $20.0 million under our existing Credit Agreement is part of, not in addition to, the $70.0 million aggregate commitments. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Components of Pretax (Loss) Income from Continuing Operations | ' | ||||||||||||
The components of pretax (loss) income from continuing operations for the years ended December 31, 2013, 2012 and 2011 are as follows (dollars in thousands): | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S | $ | (221,862 | ) | $ | (192,229 | ) | $ | 16,612 | |||||
Foreign | 522 | (3,876 | ) | (2,866 | ) | ||||||||
Total | $ | (221,340 | ) | $ | (196,105 | ) | $ | 13,746 | |||||
Schedule of (Benefits from) Provision for Income Taxes from Continuing Operations | ' | ||||||||||||
The (benefit from) provision for income taxes from continuing operations for the years ended December 31, 2013, 2012 and 2011 consists of the following (dollars in thousands): | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current (benefit) provision | |||||||||||||
Federal | $ | (57,641 | ) | $ | (4,268 | ) | $ | 9,637 | |||||
State and local | (2,509 | ) | 1,080 | 1,742 | |||||||||
Foreign | 289 | (3,075 | ) | (1,225 | ) | ||||||||
Total current (benefit) provision | (59,861 | ) | (6,263 | ) | 10,154 | ||||||||
Deferred (benefit) provision | |||||||||||||
Federal | 39,312 | (39,242 | ) | 26,904 | |||||||||
State and local | 1,137 | (1,856 | ) | 5,346 | |||||||||
Foreign | (260 | ) | 211 | 53 | |||||||||
Total deferred (benefit) provision | 40,189 | (40,887 | ) | 32,303 | |||||||||
Total (benefit from) provision for income taxes | $ | (19,672 | ) | $ | (47,150 | ) | $ | 42,457 | |||||
Schedule of Reconciliation of the Statutory U.S. Federal Income Tax Rate to Effective Income Tax Rate for Continuing Operations | ' | ||||||||||||
A reconciliation of the statutory U.S. federal income tax rate to our effective income tax rate for continuing operations for the years ended December 31, 2013, 2012 and 2011 is as follows (dollars in thousands): | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory U.S. federal income tax rate | (35.0 | )% | (35.0 | )% | 35 | % | |||||||
State and local income taxes | (3.4 | ) | (3.3 | ) | 2.7 | ||||||||
Nondeductible goodwill | — | 14.4 | 351.2 | ||||||||||
Valuation allowance | 32.6 | 2.4 | 2 | ||||||||||
Foreign taxes | (0.5 | ) | — | — | |||||||||
Tax credits | (0.8 | ) | — | (24.6 | ) | ||||||||
Worthless stock | — | — | (11.2 | ) | |||||||||
Other | (1.8 | ) | (2.5 | ) | (46.2 | ) | |||||||
Effective income tax rate | (8.9 | )% | (24.0 | )% | 308.9 | % | |||||||
Schedule of Reconciliation of the Beginning and Ending Amount of Gross Unrecognized Tax Benefits | ' | ||||||||||||
A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits as of December 31, 2013, 2012 and 2011 is as follows (dollars in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Gross unrecognized tax benefits, beginning of the year | $ | 24,479 | $ | 29,892 | $ | 28,316 | |||||||
Additions for tax positions of prior years | 3,582 | — | 1,894 | ||||||||||
Reductions for tax positions of prior years | — | (3,548 | ) | (1,748 | ) | ||||||||
Additions for tax positions related to the current year | 813 | 958 | 2,764 | ||||||||||
Reductions due to settlements | (13,707 | ) | (2,531 | ) | (690 | ) | |||||||
Reductions due to lapse of applicable statute of limitations | (1,267 | ) | (292 | ) | (644 | ) | |||||||
Subtotal | 13,900 | 24,479 | 29,892 | ||||||||||
Interest and penalties | 3,107 | 3,794 | 4,532 | ||||||||||
Total gross unrecognized tax benefits, end of the year | $ | 17,007 | $ | 28,273 | $ | 34,424 | |||||||
Schedule of Components of Deferred Income Tax Assets and Liabilities for Continuing Operation | ' | ||||||||||||
Components of deferred income tax assets and liabilities for continuing operations as of December 31, 2013 and 2012 are as follows (dollars in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred income tax assets: | |||||||||||||
Accrued occupancy | $ | 4,001 | $ | 3,526 | |||||||||
Deferred rent obligations | 16,213 | 17,160 | |||||||||||
Foreign tax credits | 12,026 | 22,267 | |||||||||||
Valuation allowance foreign tax credits | (3,116 | ) | (607 | ) | |||||||||
Compensation and employee benefits | 18,001 | 13,946 | |||||||||||
Tax net operating loss carry forwards | 7,220 | 5,454 | |||||||||||
Valuation allowance | (7,220 | ) | (5,100 | ) | |||||||||
Allowance for doubtful accounts | 1,668 | 2,141 | |||||||||||
Covenant not-to-compete | 80 | 117 | |||||||||||
Accrued settlements and legal | 7,713 | 1,887 | |||||||||||
Deferred compensation | 498 | 130 | |||||||||||
Accrued restructuring and severance | 2,057 | 2,332 | |||||||||||
Depreciation and amortization | 11,655 | — | |||||||||||
Other | 1,711 | 1,980 | |||||||||||
Valuation allowance deferred tax assets | (54,193 | ) | — | ||||||||||
Total deferred income tax assets | 18,314 | 65,233 | |||||||||||
Deferred income tax liabilities: | |||||||||||||
Depreciation and amortization | — | 5,523 | |||||||||||
Other | 4,064 | 5,273 | |||||||||||
Total deferred income tax liabilities | 4,064 | 10,796 | |||||||||||
Net deferred income tax assets | $ | 14,250 | $ | 54,437 | |||||||||
Schedule of Net Deferred Income Tax Assets for Continuing Operations | ' | ||||||||||||
Net deferred income tax assets for continuing operations as of December 31, 2013 and 2012 are reflected in the consolidated balance sheets as follows (dollars in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Current deferred income tax assets, net | $ | 3,606 | $ | 7,088 | |||||||||
Non-current deferred income tax assets, net | 10,644 | 47,349 | |||||||||||
Net deferred income tax assets | $ | 14,250 | $ | 54,437 | |||||||||
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Schedule of Information with Respect to Outstanding and Exercisable Stock Options | ' | ||||||||||||||||||||
The following table summarizes information with respect to all outstanding and exercisable stock options under all of our plans as of December 31, 2013: | |||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Range of Exercise Prices | Number of Options | Weighted Average | Weighted Average | Number | Weighted Average | ||||||||||||||||
Outstanding | Exercise Price | Remaining | Exercisable | Exercise Price | |||||||||||||||||
Contractual Term | |||||||||||||||||||||
(in Years) | |||||||||||||||||||||
$ 2.20 $ 2.20 | 644,628 | $ | 2.2 | 9.27 | — | $ | 0 | ||||||||||||||
$ 2.62 $ 2.65 | 96,729 | $ | 2.65 | 9.61 | 2,221 | $ | 2.62 | ||||||||||||||
$ 2.72 $ 2.72 | 700,972 | $ | 2.72 | 9.17 | 337,500 | $ | 2.72 | ||||||||||||||
$ 2.82 $ 6.51 | 415,002 | $ | 3.79 | 9.21 | 84,648 | $ | 4.94 | ||||||||||||||
$ 8.63 $13.67 | 394,500 | $ | 9.81 | 7.13 | 223,804 | $ | 10.7 | ||||||||||||||
$14.96 $22.04 | 480,384 | $ | 20.31 | 4.83 | 437,192 | $ | 20.17 | ||||||||||||||
$22.13 $30.67 | 481,244 | $ | 27.67 | 5.91 | 431,076 | $ | 27.96 | ||||||||||||||
$30.80 $34.70 | 498,751 | $ | 33.31 | 2.16 | 498,751 | $ | 33.31 | ||||||||||||||
$34.86 $62.56 | 185,100 | $ | 54.94 | 0.72 | 185,100 | $ | 54.94 | ||||||||||||||
$68.24 $68.24 | 3,125 | $ | 68.24 | 0.43 | 3,125 | $ | 68.24 | ||||||||||||||
3,900,435 | $ | 15.15 | 6.76 | 2,203,417 | $ | 23.42 | |||||||||||||||
Schedule of Restricted Stock Units to be Settled in Cash | ' | ||||||||||||||||||||
The following table summarizes information with respect to all cash-settled restricted stock units during the year to date ended December 31, 2013: | |||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||
Units to be Settled | |||||||||||||||||||||
in Cash | |||||||||||||||||||||
Outstanding as of December 31, 2012 | — | ||||||||||||||||||||
Granted | 2,938,283 | ||||||||||||||||||||
Vested | — | ||||||||||||||||||||
Forfeited | (649,368 | ) | |||||||||||||||||||
Outstanding as of December 31, 2013 | 2,288,915 | ||||||||||||||||||||
Schedule of Fair Value of Stock Option Award Granted Estimated on Date of Grant Using the Black-Scholes-Merton Option Pricing Model | ' | ||||||||||||||||||||
The weighted average fair value per share of stock option awards granted during the years ended December 31, 2013, 2012 and 2011, and assumptions used to value stock options are as follows: | |||||||||||||||||||||
For the Year Ended | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Dividend yield | — | — | — | ||||||||||||||||||
Risk-free interest rate | 1.1 | % | 0.6 | % | 2.2 | % | |||||||||||||||
Weighted average volatility | 64.6 | % | 68.4 | % | 53.3 | % | |||||||||||||||
Expected life (in years) | 5.6 | 5.2 | 5.5 | ||||||||||||||||||
Weighted average grant date fair value per share of options granted | $ | 1.47 | $ | 4.1 | $ | 10.89 | |||||||||||||||
Employee Stock Option [Member] | ' | ||||||||||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||||||
Stock option activity during the years ended December 31, 2013, 2012 and 2011, under all of our plans was as follows: | |||||||||||||||||||||
Options | Weighted Average | Weighted | Aggregate | ||||||||||||||||||
Exercise Price | Average | Intrinsic | |||||||||||||||||||
Remaining | Value (in | ||||||||||||||||||||
Contractual | thousands) | ||||||||||||||||||||
Term | |||||||||||||||||||||
Outstanding as of December 31, 2010 | 3,574,614 | $ | 28.29 | ||||||||||||||||||
Granted | 565,720 | 21.87 | |||||||||||||||||||
Exercised | (141,625 | ) | 14.6 | $ | 1,112 | ||||||||||||||||
Forfeited | (456,459 | ) | 24.69 | ||||||||||||||||||
Cancelled | (188,788 | ) | 36.94 | ||||||||||||||||||
Outstanding as of December 31, 2011 | 3,353,462 | $ | 27.79 | ||||||||||||||||||
Granted | 534,895 | 7.91 | |||||||||||||||||||
Exercised | — | — | $ | — | |||||||||||||||||
Forfeited | (196,400 | ) | 18.52 | ||||||||||||||||||
Cancelled | (1,100,070 | ) | 24.09 | ||||||||||||||||||
Outstanding as of December 31, 2012 | 2,591,887 | $ | 25.96 | ||||||||||||||||||
Granted | 1,934,005 | 2.58 | |||||||||||||||||||
Exercised | (1,275 | ) | 3.08 | $ | 3 | ||||||||||||||||
Forfeited | (261,366 | ) | 5.19 | ||||||||||||||||||
Cancelled | (362,816 | ) | 31.6 | ||||||||||||||||||
Outstanding as of December 31, 2013 | 3,900,435 | $ | 15.15 | 6.8 years | $ | 5,513 | |||||||||||||||
Exercisable as of December 31, 2013 | 2,203,417 | $ | 23.42 | 5.0 years | $ | 1,116 | |||||||||||||||
Restricted Stock Shares [Member] | ' | ||||||||||||||||||||
Schedule of Information with Respect to Outstanding Shares of Restricted Stock | ' | ||||||||||||||||||||
The following table summarizes information with respect to all outstanding restricted stock and restricted stock units to be settled in shares of stock under our plans during the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||
Restricted Stock to be Settled in Shares of Stock | |||||||||||||||||||||
Shares | Weighted Average | Units | Weighted Average | Total | |||||||||||||||||
Grant-Date Fair | Grant-Date Fair | ||||||||||||||||||||
Value Per Share | Value Per Unit | ||||||||||||||||||||
Outstanding as of December 31, 2010 | 2,188,636 | $ | 23.17 | — | $ | — | 2,188,636 | ||||||||||||||
Granted | 1,266,170 | 21.83 | — | — | 1,266,170 | ||||||||||||||||
Vested | (816,017 | ) | 15.55 | — | — | (816,017 | ) | ||||||||||||||
Forfeited | (842,042 | ) | 25.19 | — | — | (842,042 | ) | ||||||||||||||
Outstanding as of December 31, 2011 | 1,796,747 | $ | 24.74 | — | $ | — | 1,796,747 | ||||||||||||||
Granted | — | — | 1,416,832 | 8.32 | 1,416,832 | ||||||||||||||||
Vested | (374,260 | ) | 24.74 | — | — | (374,260 | ) | ||||||||||||||
Forfeited | (568,196 | ) | 24.73 | (272,899 | ) | 8.53 | (841,095 | ) | |||||||||||||
Outstanding as of December 31, 2012 | 854,291 | $ | 24.74 | 1,143,933 | $ | 8.27 | 1,998,224 | ||||||||||||||
Granted | — | — | 43,313 | 2.72 | 43,313 | ||||||||||||||||
Vested | (208,461 | ) | 23.1 | (306,605 | ) | 8.6 | (515,066 | ) | |||||||||||||
Forfeited | (424,268 | ) | 27.01 | (342,020 | ) | 7.22 | (766,288 | ) | |||||||||||||
Outstanding as of December 31, 2013 | 221,562 | $ | 22.19 | 538,621 | $ | 8.3 | 760,183 | ||||||||||||||
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Summary Financial Information by Reporting Segment | ' | ||||||||||||||||||||
Summary financial information by reporting segment is as follows (dollars in thousands): | |||||||||||||||||||||
Revenue | Operating | Depreciation | Capital | Total | |||||||||||||||||
(Loss) | and | Expenditures | Assets (17) | ||||||||||||||||||
Income | Amortization | ||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||
CTU | $ | 347,255 | $ | 63,460 | $ | 2,919 | $ | 158 | $ | 75,441 | |||||||||||
AIU | 231,606 | (5,556 | ) | 3,069 | 122 | 54,426 | |||||||||||||||
Total University Schools | 578,861 | 57,904 | 5,988 | 280 | 129,867 | ||||||||||||||||
Health Education (2) | 125,845 | (50,480 | ) | 7,796 | 542 | 39,248 | |||||||||||||||
Culinary Arts (3) | 177,549 | (81,218 | ) | 17,083 | 705 | 108,349 | |||||||||||||||
Design & Technology (4) | 96,348 | (30,542 | ) | 4,934 | 5,691 | 19,470 | |||||||||||||||
Total Career Schools | 399,742 | (162,240 | ) | 29,813 | 6,938 | 167,067 | |||||||||||||||
Corporate and Other | — | (33,600 | ) | 22,574 | 6,272 | 491,674 | |||||||||||||||
Subtotal | 978,603 | (137,936 | ) | 58,375 | 13,490 | 788,608 | |||||||||||||||
Transitional Schools (5) | 78,757 | (76,748 | ) | 10,265 | 294 | 14,974 | |||||||||||||||
Discontinued Operations | 5,852 | 1,463 | |||||||||||||||||||
Total | $ | 1,057,360 | $ | (214,684 | ) | $ | 68,640 | $ | 19,636 | $ | 805,045 | ||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||
CTU (11) | $ | 363,935 | $ | 54,928 | $ | 3,476 | $ | 1,408 | $ | 72,554 | |||||||||||
AIU | 304,208 | 20,896 | 4,249 | 1,746 | 65,092 | ||||||||||||||||
Total University Schools | 668,143 | 75,824 | 7,725 | 3,154 | 137,646 | ||||||||||||||||
Health Education (6) | 153,441 | (70,888 | ) | 8,020 | 3,633 | 45,471 | |||||||||||||||
Culinary Arts (7) | 224,842 | (33,854 | ) | 17,670 | 2,535 | 173,477 | |||||||||||||||
Design & Technology (8) (14) | 124,611 | (56,747 | ) | 5,400 | 2,157 | 27,389 | |||||||||||||||
Total Career Schools | 502,894 | (161,489 | ) | 31,090 | 8,325 | 246,337 | |||||||||||||||
Corporate and Other (9) | 55 | (7,699 | ) | 22,640 | 16,481 | 433,152 | |||||||||||||||
Subtotal | 1,171,092 | (93,364 | ) | 61,455 | 27,960 | 817,135 | |||||||||||||||
Transitional Schools (10) | 173,788 | (103,637 | ) | 13,282 | 3,450 | 47,446 | |||||||||||||||
Discontinued Operations | 6,534 | 258,122 | |||||||||||||||||||
Total | $ | 1,344,880 | $ | (197,001 | ) | $ | 74,737 | $ | 37,944 | $ | 1,122,703 | ||||||||||
For the Year Ended December 31, 2011 | |||||||||||||||||||||
CTU (11) | $ | 415,411 | $ | 111,119 | $ | 3,425 | $ | 4,553 | |||||||||||||
AIU | 365,203 | 72,738 | 4,830 | 3,208 | |||||||||||||||||
Total University Schools | 780,614 | 183,857 | 8,255 | 7,761 | |||||||||||||||||
Health Education (12) | 211,177 | (44,602 | ) | 9,782 | 17,205 | ||||||||||||||||
Culinary Arts (13) | 303,135 | (63,452 | ) | 19,357 | 3,646 | ||||||||||||||||
Design & Technology (14) | 162,410 | 11,500 | 6,414 | 2,477 | |||||||||||||||||
Total Career Schools | 676,722 | (96,554 | ) | 35,553 | 23,328 | ||||||||||||||||
Corporate and Other (15) | (399 | ) | (30,194 | ) | 19,736 | 28,643 | |||||||||||||||
Subtotal | 1,456,937 | 57,109 | 63,544 | 59,732 | |||||||||||||||||
Transitional Schools (16) | 248,644 | (45,882 | ) | 12,843 | 14,132 | ||||||||||||||||
Discontinued Operations | 4,469 | ||||||||||||||||||||
Total | $ | 1,705,581 | $ | 11,227 | $ | 76,387 | $ | 78,333 | |||||||||||||
-1 | The statement of (loss) income and comprehensive (loss) income balances including revenue, operating (loss) income and depreciation and amortization are presented above on a continuing operations basis. Total assets and capital expenditures are presented on a consolidated basis including continuing and discontinued operations. | ||||||||||||||||||||
For the year ended December 31, 2013, segment results included: | |||||||||||||||||||||
-2 | Health Education: $8.8 million related to the settlement of a legal matter and a $1.7 million trade name impairment charge. | ||||||||||||||||||||
-3 | Culinary Arts: $15.5 million related to a pending legal settlement and a $13.0 million trade name impairment charge. | ||||||||||||||||||||
-4 | Design & Technology: $4.1 million in asset impairments, related to long-lived assets for our ongoing schools ($2.3) and decisions made to exit certain leased facilities ($1.8). | ||||||||||||||||||||
-5 | Transitional Schools: $2.6 million in asset impairments and $1.7 million related to the settlement of a legal matter. | ||||||||||||||||||||
For the year ended December 31, 2012, segment results included: | |||||||||||||||||||||
-6 | Health Education: $44.8 million of goodwill and trade name impairment charges. | ||||||||||||||||||||
-7 | Culinary Arts: An $8.1 million trade name impairment charge. | ||||||||||||||||||||
-8 | Design & Technology: A $40.8 million goodwill impairment charge. | ||||||||||||||||||||
-9 | Corporate and Other: A $19.0 million insurance recovery related to the settlement of claims under certain insurance policies. | ||||||||||||||||||||
-10 | Transitional Schools: $30.7 million in goodwill and asset impairment charges. | ||||||||||||||||||||
For the year ended December 31, 2011, segment results included: | |||||||||||||||||||||
-11 | During 2011, CTU recorded an accrual of $5.0 million within administrative expense for an estimate for potential reimbursements of government funds, which was subsequently settled for $3.6 million during the third quarter of 2012. | ||||||||||||||||||||
-12 | Health Education: $59.9 million of goodwill and intangible asset impairment charges. | ||||||||||||||||||||
-13 | Culinary Arts: $94.1 million of goodwill and trade name impairment charges. | ||||||||||||||||||||
-14 | Design & Technology: $6.0 million of legal expense related to the potential settlement of a legal matter, which was subsequently settled for $4.8 million during the fourth quarter of 2012. | ||||||||||||||||||||
-15 | Corporate and Other: A $7.0 million insurance recovery related to previously settled legal matters. | ||||||||||||||||||||
-16 | Transitional Schools: $37.3 million of goodwill and asset impairment charges. | ||||||||||||||||||||
-17 | Total assets do not include intercompany receivable or payable activity between schools and corporate and investments in subsidiaries. |
QUARTERLY_FINANCIAL_SUMMARY_UN1
QUARTERLY FINANCIAL SUMMARY (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of Quarterly Financial Summary | ' | ||||||||||||||||||||
Quarter | |||||||||||||||||||||
2013 | First (3) | Second (4) | Third (5) | Fourth (6) | Total Year | ||||||||||||||||
Revenue (1) | $ | 290,203 | $ | 268,839 | $ | 251,224 | $ | 247,094 | $ | 1,057,360 | |||||||||||
Operating loss (1) | (29,625 | ) | (58,825 | ) | (67,209 | ) | (59,025 | ) | $ | (214,684 | ) | ||||||||||
Net loss | (15,203 | ) | (31,390 | ) | (87,064 | ) | (30,606 | ) | $ | (164,263 | ) | ||||||||||
Net loss per share (2) | |||||||||||||||||||||
Basic and Diluted | $ | (0.23 | ) | $ | (0.47 | ) | $ | (1.30 | ) | $ | (0.46 | ) | $ | (2.46 | ) | ||||||
Quarter | |||||||||||||||||||||
2012 | First (3) | Second (4) | Third | Fourth (6) | Total Year | ||||||||||||||||
Revenue (1) | $ | 383,701 | $ | 343,013 | $ | 314,890 | $ | 303,276 | $ | 1,344,880 | |||||||||||
Operating income (loss) (1) | 34,951 | (100,863 | ) | (39,562 | ) | (91,527 | ) | $ | (197,001 | ) | |||||||||||
Net income (loss) | 52,076 | (100,234 | ) | (33,146 | ) | (61,492 | ) | $ | (142,796 | ) | |||||||||||
Net income (loss) per share (2) | |||||||||||||||||||||
Basic and Diluted | $ | 0.78 | $ | (1.52 | ) | $ | (0.50 | ) | $ | (0.93 | ) | $ | (2.15 | ) | |||||||
-1 | As of December 31, 2013, the results of operations for campuses that were taught out or schools that were sold during 2013, (see Note 2 “Summary of Significant Accounting Polices” of the notes to our consolidated financial statements for further information) along with our campuses that had previously ceased operations or were sold, are presented within discontinued operations for all periods presented. | ||||||||||||||||||||
-2 | Basic and diluted earnings per share are calculated independently for each of the quarters presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree with the annual earnings per share amount for the corresponding year. | ||||||||||||||||||||
-3 | First quarter of 2013 net loss included a $6.7 million loss on sale of AIU London. First quarter of 2012 net income included a $19.0 million insurance recovery related to the settlement of claims under certain insurance policies. | ||||||||||||||||||||
-4 | Second quarter of 2013 net loss included $10.0 million related to the settlement of a legal matter and $4.0 million in trade name impairment charges. Second quarter of 2012 net loss included $85.6 million in goodwill and asset impairment charges, of which $1.0 million was recorded within loss from discontinued operations. | ||||||||||||||||||||
-5 | Third quarter of 2013 net loss included $11.6 million of trade name and asset impairment charges. | ||||||||||||||||||||
-6 | Fourth quarter of 2013 net loss included a $130.1 million gain related to the sale of our International Segment, a $72.2 million valuation allowance recorded against our deferred tax assets, $15.5 million for a pending legal settlement and $7.0 million in asset impairment charges. Fourth quarter of 2012 net loss included $40.8 million in asset impairment charges and $13.1 million in severance and related charges in conjunction with a reduction in force and campus closure announcements for our continuing operations. |
Recovered_Sheet1
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment | |||
Campus | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Number of reporting segment | 6 | ' | ' |
Number of campuses | 6 | ' | ' |
Number of additional campuses | 4 | ' | ' |
Percentage of cash receipts from Title IV Program funding | 78.00% | 80.00% | 83.00% |
Loans disbursed under Credit Agreement secured by cash, percentage | 100.00% | ' | ' |
Number of days past due to write off student receivables | 'Greater than 90 days | ' | ' |
Cumulative translation adjustments | $10 | ' | ' |
Accumulated other comprehensive gain (loss) included a comprehensive loss related to foreign currency translations | ' | 4.3 | ' |
Costs of other goods and services included in educational services and facilities expense | 39.7 | 55.8 | 79.9 |
Advertising costs | 272 | 302 | 276.3 |
Maximum [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Maturity period of Cash equivalents including short-term investments | '90 days | ' | ' |
Accumulated other comprehensive gain (loss) included a comprehensive loss related to foreign currency translations | $0.10 | ' | ' |
Health Education [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Number of campuses | 4 | ' | ' |
Design & Technology [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Number of campuses | 2 | ' | ' |
Student Loans [Member] | Minimum [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Student receivables period | '1 year | ' | ' |
Student Loans [Member] | Maximum [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Student receivables period | '1 year | ' | ' |
Non Current Assets [Member] | Student Loans [Member] | Minimum [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Student receivables period | '1 year | ' | ' |
Non Current Assets [Member] | Student Loans [Member] | Maximum [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Student receivables period | '6 years | ' | ' |
Dispositions_Additional_Inform
Dispositions - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 03, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
International Segment Sale [Member] | International Segment Sale [Member] | AIU London [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Total consideration to purchase agreement | $305,000,000 | ' | ' | ' | ' | ' | ' |
Cash payment after pre-closing distributions and adjustments | 276,500,000 | ' | ' | ' | ' | ' | ' |
Realized gain on sale | ' | ' | ' | 130,100,000 | 130,100,000 | ' | ' |
Transaction costs | ' | ' | ' | 8,900,000 | ' | ' | ' |
Cumulative translation adjustments | ' | ' | ' | 10,000,000 | ' | 6,700,000 | 3,300,000 |
Income tax expense | ' | 39,900,000 | ' | 87,900,000 | ' | ' | ' |
Fair market value | ' | ' | ' | 0 | ' | ' | ' |
Loss on pending sale of business | ' | ' | $6,700,000 | ($6,905,000) | ' | ' | ' |
Discontinued_Operations_Summar
Discontinued Operations - Summary Results of Operations for Discontinued Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Discontinued Operations And Disposal Groups [Abstract] | ' | ' | ' |
Revenue | $137,661 | $145,684 | $210,656 |
Pretax income | 126,010 | 2,193 | 48,895 |
Income tax provision (benefit) | 88,605 | -3,966 | 1,611 |
Income from discontinued operations, net of tax | $37,405 | $6,159 | $47,284 |
Discontinued_Operations_Summar1
Discontinued Operations - Summary Results of Operations for Discontinued Operations (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | |
Discontinued Operations And Disposal Groups [Abstract] | ' | ' | ' |
Income tax expense | $39,900,000 | $87,900,000 | ' |
Gain on sale of business | ' | -123,204,000 | -27,085,000 |
Income tax expense related to sale of schools | ' | ' | 300,000 |
Goodwill allocated | ' | ' | $20,200,000 |
Discontinued_Operations_Assets
Discontinued Operations - Assets and Liabilities of Discontinued Operations on Consolidated Balance Sheets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Disposal Group Including Discontinued Operation Balance Sheet Disclosures [Abstract] | ' | ' | ' | ' |
Cash and cash equivalents | ' | $127,738 | $109,371 | $116,945 |
Receivables, net | 213 | 16,928 | ' | ' |
Other current assets | 50 | 6,458 | ' | ' |
Deferred income tax assets, net | ' | 3,454 | ' | ' |
Total current assets | 263 | 154,578 | ' | ' |
Property and equipment, net | ' | 29,790 | ' | ' |
Goodwill | ' | 45,669 | ' | ' |
Intangible assets, net | ' | 5,675 | ' | ' |
Deferred income tax assets | ' | 17,804 | ' | ' |
Other assets, net | 1,200 | 4,606 | ' | ' |
Total assets of discontinued operations | 1,463 | 258,122 | ' | ' |
Current maturities of capital lease obligations | ' | 211 | ' | ' |
Accounts payable | 10 | 6,378 | ' | ' |
Accrued expenses | 325 | 18,110 | ' | ' |
Deferred tuition revenue | ' | 42,363 | ' | ' |
Remaining lease obligations | 11,275 | 9,174 | ' | ' |
Total current liabilities | 11,610 | 76,236 | ' | ' |
Remaining lease obligations | 27,507 | 33,103 | ' | ' |
Other | 75 | 2,836 | ' | ' |
Total liabilities of discontinued operations | $39,192 | $112,175 | ' | ' |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Discontinued Operations And Disposal Groups [Abstract] | ' |
Lease expiration year | '2019 |
Discontinued_Operations_Change
Discontinued Operations - Changes in Future Remaining Lease Obligations Discontinued Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Discontinued Operations And Disposal Groups [Abstract] | ' | ' | ' |
Balance, Beginning of Period | $42,277 | $45,961 | $50,827 |
Charges Incurred | 8,551 | 7,371 | 7,636 |
Net Cash Payments | -12,323 | -11,055 | -11,035 |
Other | 277 | ' | -1,467 |
Balance, End of Period | $38,782 | $42,277 | $45,961 |
Recovered_Sheet2
Cash and Cash Equivalents and Investments - Cash and Cash Equivalents and Investments from Continuing Operations (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Cash And Cash Equivalents [Abstract] | ' | ' | ' | ' |
Cash | $155,938 | $112,763 | ' | ' |
Money market funds | 163,005 | 121 | ' | ' |
Cash and cash equivalents, unrestricted | 318,943 | 112,884 | 171,221 | 172,537 |
Restricted cash | 12,564 | 97,878 | ' | ' |
Total cash and cash equivalents | $331,507 | $210,762 | ' | ' |
Recovered_Sheet3
Cash and Cash Equivalents and Investments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Investment Holdings [Line Items] | ' | ' | ' |
Restricted cash | $12,564 | $97,878 | ' |
Period cash equivalents and short-term investments have been in continuous unrealized loss position, years, maximum | '1 year | ' | ' |
Period cash equivalents and long-term investments have been in continuous unrealized loss position, years, minimum | '1 year | ' | ' |
Cumulative unrealized income (loss) on municipal bonds | -13 | -152 | -40 |
Letter of credit [Member] | ' | ' | ' |
Investment Holdings [Line Items] | ' | ' | ' |
Restricted cash | 12,600 | 7,400 | ' |
Credit Agreement [Member] | ' | ' | ' |
Investment Holdings [Line Items] | ' | ' | ' |
Restricted cash | ' | 88,000 | ' |
Funds restricted for legal matter [Member] | ' | ' | ' |
Investment Holdings [Line Items] | ' | ' | ' |
Restricted cash | ' | 2,500 | ' |
Municipal bond [Member] | ' | ' | ' |
Investment Holdings [Line Items] | ' | ' | ' |
Period debt obligations mature, years, maximum | '1 year | ' | ' |
Cumulative unrealized income (loss) on municipal bonds | $500 | ' | ' |
Cash_and_Cash_Equivalents_and_2
Cash and Cash Equivalents and Investments - Investments from Continuing Operations (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total investments (available for sale), Cost | $39,441 | $71,729 |
Short-term investments (available-for-sale), Gross Unrealized, Gain | 1 | 4 |
Short-term investments (available-for-sale), Gross Unrealized (Loss) | -476 | -475 |
Short-term investments (available-for-sale), Fair value | 38,966 | 71,258 |
U.S. Treasury bills [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Short-term investments (available-for-sale), Cost | 31,591 | 63,879 |
Short-term investments (available-for-sale), Gross Unrealized, Gain | 1 | 4 |
Short-term investments (available-for-sale), Gross Unrealized (Loss) | ' | -7 |
Short-term investments (available-for-sale), Fair value | 31,592 | 63,876 |
Municipal bond [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Long-term investments (available-for-sale), Cost | 7,850 | 7,850 |
Long-term investments (available-for-sale), Gross Unrealized, Gain | ' | ' |
Long-term investments (available-for-sale), Gross Unrealized (Loss) | -476 | -468 |
Short-term investments (available-for-sale), Fair value | 7,374 | 7,382 |
Long-term investments (available-for-sale), Fair value | $7,374 | $7,382 |
Cash_and_Cash_Equivalents_and_3
Cash and Cash Equivalents and Investments - Schedule of Available-for-Sale Investments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Amortized Cost And Fair Value Debt Securities [Abstract] | ' | ' |
Original stated term to maturity of available-for-sale- investments, Less than one year | $31,592 | $63,876 |
Original stated term to maturity of available-for-sale- investments, One to five years | ' | ' |
Original stated term to maturity of available-for-sale- investments, Five to ten years | ' | ' |
Original stated term to maturity of available-for-sale- investments, Greater than ten years | 7,374 | 7,382 |
Original stated term to maturity of available-for-sale- investments, Total | $38,966 | $71,258 |
Cash_and_Cash_Equivalents_and_4
Cash and Cash Equivalents and Investments - Investments Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' |
Total investments at fair value | $38,966 | $71,258 |
U.S. Treasury bills [Member] | ' | ' |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' |
Total investments at fair value | 31,592 | 63,876 |
Municipal bond [Member] | ' | ' |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' |
Total investments at fair value | 7,374 | 7,382 |
Level 1 [Member] | ' | ' |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' |
Total investments at fair value | 31,592 | 63,876 |
Level 1 [Member] | U.S. Treasury bills [Member] | ' | ' |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' |
Total investments at fair value | 31,592 | 63,876 |
Level 1 [Member] | Municipal bond [Member] | ' | ' |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' |
Total investments at fair value | ' | ' |
Level 2 [Member] | ' | ' |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' |
Total investments at fair value | ' | ' |
Level 2 [Member] | U.S. Treasury bills [Member] | ' | ' |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' |
Total investments at fair value | ' | ' |
Level 2 [Member] | Municipal bond [Member] | ' | ' |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' |
Total investments at fair value | ' | ' |
Level 3 [Member] | ' | ' |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' |
Total investments at fair value | 7,374 | 7,382 |
Level 3 [Member] | U.S. Treasury bills [Member] | ' | ' |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' |
Total investments at fair value | ' | ' |
Level 3 [Member] | Municipal bond [Member] | ' | ' |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' |
Total investments at fair value | $7,374 | $7,382 |
Cash_and_Cash_Equivalents_and_5
Cash and Cash Equivalents and Investments - Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level3) (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Investments Debt And Equity Securities [Abstract] | ' |
Balance | $7,382 |
Unrealized loss | -8 |
Balance | $7,374 |
Student_Receivables_Additional
Student Receivables - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Receivables [Abstract] | ' | ' |
Student receivables write-off period, days past due | 'Greater than 90 days | ' |
Student receivables, net of allowance for doubtful accounts and net of deferred tuition revenue | $5.20 | $6.80 |
Student_Receivables_Changes_in
Student Receivables - Changes in Current and Non-Current Receivables Allowance (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Receivables [Abstract] | ' | ' | ' |
Balance, Beginning of Period | $39,865 | $56,325 | $83,028 |
Charges to Expense | 27,641 | 37,949 | 50,699 |
Amounts Written-off | -39,419 | -54,409 | -77,402 |
Balance, End of Period | $28,087 | $39,865 | $56,325 |
Student_Receivables_Changes_in1
Student Receivables - Changes in Current and Non-Current Receivables Allowance (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Receivables [Abstract] | ' | ' | ' |
Recoveries of amounts previously written off | $7.50 | $7.80 | $8.80 |
Property_and_Equipment_Schedul
Property and Equipment - Schedule of Cost Basis and Estimated Useful Lives of Property and Equipment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Land | $2,388 | $2,388 |
Building and improvements | 8,547 | 8,534 |
Computer hardware and software | 148,927 | 152,910 |
Culinary equipment and library materials | 21,570 | 21,957 |
Furniture, fixtures and equipment | 127,471 | 135,276 |
Leasehold improvements | 370,769 | 383,068 |
Vehicles | 868 | 906 |
Construction in progress | 1,032 | 1,838 |
Property, Plant and Equipment, Gross, Total | 681,572 | 706,877 |
Less-Accumulated depreciation | -499,176 | -459,089 |
Total property and equipment, net | $182,396 | $247,788 |
Property and equipment, estimated useful life (in years) | '10 years | ' |
Building and Improvements [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, estimated useful life (in years) | '15 years | ' |
Building and Improvements [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, estimated useful life (in years) | '35 years | ' |
Computer Hardware and Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, estimated useful life (in years) | '3 years | ' |
Furniture, Fixtures And Equipment [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, estimated useful life (in years) | '5 years | ' |
Furniture, Fixtures And Equipment [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, estimated useful life (in years) | '10 years | ' |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, estimated useful life (in years) | 'Shorter of Life of Lease or Useful Life | ' |
Vehicles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, estimated useful life (in years) | '5 years | ' |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation expense for continuing operations | $67.40 | $73.30 | $70.80 |
Depreciation expense for discontinued operations | 4.4 | 6.1 | 7.6 |
Leased Facilities And Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Asset impairment charges | 2.7 | ' | ' |
Leased Facilities [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Asset impairment charges | 2.7 | 1 | ' |
Property and Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Asset impairment charges | 8 | 29.5 | ' |
Teach Out Schools [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Asset impairment charges | $2.60 | $28.50 | ' |
Leases_Additional_Information_
Leases - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property Subject to or Available for Operating Lease [Line Items] | ' | ' | ' |
Operating leases expiration date | '2023 | ' | ' |
Depreciation expense for continuing operations | $67,400,000 | $73,300,000 | $70,800,000 |
Operating leases obligation | 485,158,000 | ' | ' |
Assets Under Capital Lease [Member] | ' | ' | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' | ' | ' |
Depreciation expense for continuing operations | 0 | ' | 600,000 |
Assets recorded under capital leases from continuing operation | 4,500,000 | ' | ' |
Continuing Operations [Member] | ' | ' | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' | ' | ' |
Rent expense, exclusive of related taxes | 87,500,000 | 89,000,000 | 92,900,000 |
Operating leases obligation | 430,831,000 | ' | ' |
Discontinued Operations [Member] | ' | ' | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' | ' | ' |
Rent expense, exclusive of related taxes | 21,900,000 | 21,300,000 | 27,000,000 |
Operating leases obligation | 54,327,000 | ' | ' |
Transitional Schools [Member] | ' | ' | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' | ' | ' |
Operating leases obligation | 79,000,000 | ' | ' |
Minimum [Member] | ' | ' | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' | ' | ' |
Lease term range, years | '5 years | ' | ' |
Number of renewal options for extended terms | '1 year | ' | ' |
Maximum [Member] | ' | ' | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' | ' | ' |
Lease term range, years | '10 years | ' | ' |
Number of renewal options for extended terms | '2 years | ' | ' |
Maximum [Member] | Assets Under Capital Lease [Member] | ' | ' | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' | ' | ' |
Depreciation expense for continuing operations | ' | $100,000 | ' |
Leases_Schedule_of_Changes_in_
Leases - Schedule of Changes in Future Minimum Lease Obligations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Leases [Abstract] | ' | ' | ' |
Balance, Beginning of Period | $13,262 | $12,831 | $17,770 |
Charges Incurred | 5,209 | 4,249 | 1,313 |
Net Cash Payments | -9,202 | -3,818 | -6,544 |
Other | 3,292 | ' | 292 |
Balance, End of Period | $12,561 | $13,262 | $12,831 |
Leases_Schedule_of_Future_Mini
Leases - Schedule of Future Minimum Lease Payments under Capital Leases and Operating Leases for Continuing Operations and Discontinued Operations (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Operating Leases, 2014 | $100,816 |
Operating Leases, 2015 | 93,262 |
Operating Leases, 2016 | 79,023 |
Operating Leases, 2017 | 67,204 |
Operating Leases, 2018 | 58,865 |
Operating Leases, 2019 and thereafter | 85,988 |
Operating Leases, Total | 485,158 |
Continuing Operations [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Operating Leases, 2014 | 86,297 |
Operating Leases, 2015 | 79,602 |
Operating Leases, 2016 | 67,870 |
Operating Leases, 2017 | 56,878 |
Operating Leases, 2018 | 54,978 |
Operating Leases, 2019 and thereafter | 85,206 |
Operating Leases, Total | 430,831 |
Discontinued Operations [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Operating Leases, 2014 | 14,519 |
Operating Leases, 2015 | 13,660 |
Operating Leases, 2016 | 11,153 |
Operating Leases, 2017 | 10,326 |
Operating Leases, 2018 | 3,887 |
Operating Leases, 2019 and thereafter | 782 |
Operating Leases, Total | $54,327 |
Leases_Schedule_of_Future_Mini1
Leases - Schedule of Future Minimum Sublease Rental Income under Operating Leases for Continuing and Discontinued Operations (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Operating Subleases, 2014 | $4,945 |
Operating Subleases, 2015 | 6,114 |
Operating Subleases, 2016 | 4,866 |
Operating Subleases, 2017 | 4,696 |
Operating Subleases, 2018 | 1,356 |
Operating Subleases, 2019 and thereafter | 1,513 |
Operating Subleases, Total | 23,490 |
Continuing Operations [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Operating Subleases, 2014 | 2,324 |
Operating Subleases, 2015 | 2,939 |
Operating Subleases, 2016 | 1,649 |
Operating Subleases, 2017 | 1,577 |
Operating Subleases, 2018 | 1,356 |
Operating Subleases, 2019 and thereafter | 1,513 |
Operating Subleases, Total | 11,358 |
Discontinued Operations [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Operating Subleases, 2014 | 2,621 |
Operating Subleases, 2015 | 3,175 |
Operating Subleases, 2016 | 3,217 |
Operating Subleases, 2017 | 3,119 |
Operating Subleases, 2018 | ' |
Operating Subleases, 2019 and thereafter | ' |
Operating Subleases, Total | $12,132 |
Recovered_Sheet4
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, beginning balance | $170,706 | ' | $87,356 |
Goodwill impairment | -83,350 | -168,700 | ' |
Goodwill ending balance | 87,356 | 170,706 | 87,356 |
CTU [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, beginning balance | 45,938 | ' | 45,938 |
Goodwill impairment | ' | ' | ' |
Goodwill ending balance | 45,938 | ' | 45,938 |
AIU [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, beginning balance | 41,418 | ' | 41,418 |
Goodwill impairment | ' | ' | ' |
Goodwill ending balance | 41,418 | ' | 41,418 |
Health Education [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, beginning balance | 41,293 | ' | ' |
Goodwill impairment | -41,293 | ' | ' |
Goodwill ending balance | ' | ' | ' |
Culinary Arts [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, beginning balance | ' | ' | ' |
Goodwill impairment | ' | ' | ' |
Goodwill ending balance | ' | ' | ' |
Design & Technology [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, beginning balance | 40,752 | ' | ' |
Goodwill impairment | -40,752 | ' | ' |
Goodwill ending balance | ' | ' | ' |
Transitional Schools [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, beginning balance | 1,305 | ' | ' |
Goodwill impairment | -1,305 | ' | ' |
Goodwill ending balance | ' | ' | ' |
Recovered_Sheet5
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' |
Goodwill Impairment | $83,350 | $168,700 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Schedule of Cost Basis, Accumulated Amortization Net Book Value of Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Intangible Assets Net Excluding Goodwill [Line Items] | ' | ' |
Cost | $10,957 | $12,457 |
Accumulated Amortization | -10,373 | -10,628 |
Net Book Value of Amortizable intangible assets, net | 584 | 1,829 |
Non-amortizable intangible assets | 39,533 | 54,177 |
Intangible assets, net | 40,117 | 56,006 |
Courseware [Member] | ' | ' |
Intangible Assets Net Excluding Goodwill [Line Items] | ' | ' |
Cost | 10,861 | 12,361 |
Accumulated Amortization | -10,297 | -10,576 |
Net Book Value of Amortizable intangible assets, net | 564 | 1,785 |
Other [Member] | ' | ' |
Intangible Assets Net Excluding Goodwill [Line Items] | ' | ' |
Cost | 96 | 96 |
Accumulated Amortization | -76 | -52 |
Net Book Value of Amortizable intangible assets, net | 20 | 44 |
Accreditation, licensing, and Title IV Program participation rights [Member] | ' | ' |
Intangible Assets Net Excluding Goodwill [Line Items] | ' | ' |
Non-amortizable intangible assets | 1,000 | 1,000 |
Trade names [Member] | ' | ' |
Intangible Assets Net Excluding Goodwill [Line Items] | ' | ' |
Non-amortizable intangible assets | $38,533 | $53,177 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Impairment Charges [Line Items] | ' | ' | ' |
Amortization expense from continuing operations | $1,200,000 | $1,400,000 | $5,600,000 |
Determining fair value discount rates | 30.00% | ' | ' |
Fair value terminal growth rates | 3.00% | ' | ' |
Fair value of trade name impairment charge | 40,117,000 | 56,006,000 | ' |
Percentage change in royalty rate | 0.50% | ' | ' |
Percentage change in discount rate | 1.00% | ' | ' |
Maximum [Member] | ' | ' | ' |
Impairment Charges [Line Items] | ' | ' | ' |
Estimated useful lives of intangible assets, in years | '1 year | ' | ' |
Le Cordon Bleu Trade Name [Member] | ' | ' | ' |
Impairment Charges [Line Items] | ' | ' | ' |
Royalty rates | 4.50% | ' | ' |
Trade name impairment charge | 13,000,000 | ' | ' |
Fair value of trade name impairment charge | 27,300,000 | ' | ' |
Sanford Brown Trade Name [Member] | ' | ' | ' |
Impairment Charges [Line Items] | ' | ' | ' |
Royalty rates | 1.00% | ' | ' |
Trade name impairment charge | 1,700,000 | ' | ' |
Fair value of trade name impairment charge | 3,900,000 | ' | ' |
Royalty Rate [Member] | ' | ' | ' |
Impairment Charges [Line Items] | ' | ' | ' |
Change in fair value | 5,300,000 | ' | ' |
Discount Rate [Member] | ' | ' | ' |
Impairment Charges [Line Items] | ' | ' | ' |
Change in fair value | $1,300,000 | ' | ' |
Restructuring_Charges_Accrual_
Restructuring Charges - Accrual for Severance and Related Costs (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Restructuring And Related Activities [Abstract] | ' | ' | ||
Beginning of Period | $9,860 | $253 | ||
Severance and related charges | 6,218 | 13,996 | ||
Payments | -9,120 | [1] | -2,299 | [1] |
Non-cash adjustments | -1,233 | [2] | -2,090 | [2] |
End of Period | $5,725 | $9,860 | ||
[1] | Includes payments related to COBRA and outplacement services which are assumed to be completed by the third month following an employee's departure. | |||
[2] | Includes cancellations due to employee departures prior to agreed upon end dates, employee transfers to open positions within the organization and subsequent adjustments to severance and related costs. |
Restructuring_Charges_Restruct
Restructuring Charges - Restructuring Charges by Segment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Acquisition And Integration Charges [Line Items] | ' | ' |
Severance and related expenses | $6,218 | $13,996 |
CTU [Member] | ' | ' |
Restructuring Acquisition And Integration Charges [Line Items] | ' | ' |
Severance and related expenses | 19 | 261 |
AIU [Member] | ' | ' |
Restructuring Acquisition And Integration Charges [Line Items] | ' | ' |
Severance and related expenses | 213 | 1,834 |
University Schools [Member] | ' | ' |
Restructuring Acquisition And Integration Charges [Line Items] | ' | ' |
Severance and related expenses | 232 | 2,095 |
Health Education [Member] | ' | ' |
Restructuring Acquisition And Integration Charges [Line Items] | ' | ' |
Severance and related expenses | 790 | 1,576 |
Culinary Arts [Member] | ' | ' |
Restructuring Acquisition And Integration Charges [Line Items] | ' | ' |
Severance and related expenses | 472 | 598 |
Design & Technology [Member] | ' | ' |
Restructuring Acquisition And Integration Charges [Line Items] | ' | ' |
Severance and related expenses | 579 | 1,376 |
Career Schools [Member] | ' | ' |
Restructuring Acquisition And Integration Charges [Line Items] | ' | ' |
Severance and related expenses | 1,841 | 3,550 |
Corporate and Other [Member] | ' | ' |
Restructuring Acquisition And Integration Charges [Line Items] | ' | ' |
Severance and related expenses | 2,087 | 1,620 |
Transitional Schools [Member] | ' | ' |
Restructuring Acquisition And Integration Charges [Line Items] | ' | ' |
Severance and related expenses | $2,058 | $6,731 |
Restructuring_Charges_Addition
Restructuring Charges - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Accrual for severance and related charges | $4 | $7.20 |
Long term amount | 1.7 | 2.7 |
Accrued retention bonuses | 2.2 | ' |
Amount recorded ratably over the period retained | 2.3 | ' |
Minimum [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Gross remaining lease obligations | 30 | ' |
Maximum [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Gross remaining lease obligations | $35 | ' |
Credit_Agreement_Additional_In
Credit Agreement - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Disclosure [Abstract] | ' | ' |
Revolving credit facility | $70 | ' |
Revolving credit facility maturity date | 30-Jun-16 | 31-Jan-14 |
Number of days for pre-payment notice | '3 days | ' |
Number of days for termination notice | '5 days | ' |
Minimum cash under covenant term | $200 | ' |
Loans disbursed under Credit Agreement secured by cash, percentage | 100.00% | ' |
Credit_Agreement_Schedule_of_U
Credit Agreement - Schedule of U.S. Credit Agreement (Detail) (U.S. Credit Agreement [Member], USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
U.S. Credit Agreement [Member] | ' | ' | ||
Credit Agreements: | ' | ' | ||
Credit facility remaining availability | $70,000 | [1],[2] | ' | |
Credit facility borrowings | ' | 80,000 | [3] | |
Outstanding letters of credit | 12,318 | [1],[4] | 6,981 | [3],[4] |
Availability of additional letters of credit | 7,682 | [1],[2] | ' | |
Average daily revolving credit borrowings for the year ended | $219 | [1] | $219 | [3] |
Weighted average annual interest rate | 5.25% | [1] | 5.25% | [3] |
Commitment fee rate | 0.25% | [1] | 0.25% | [3] |
Letter of credit fee rate | 0.75% | [1] | 0.50% | [3] |
[1] | Details reflect terms under our existing Credit Agreement which was entered into December 30, 2013, except for our outstanding letters of credit. | |||
[2] | The letters of credit sublimit of $20.0 million under our existing Credit Agreement is part of, not in addition to, the $70.0 million aggregate commitments. | |||
[3] | Details reflect terms under the original credit agreement which was replaced with our existing Credit Agreement, except for our outstanding letters of credit. | |||
[4] | Represents letters of credit which are fully collateralized with $12.6 million and $7.4 million of restricted cash as of December 31, 2013 and 2012, respectively. |
Credit_Agreement_Schedule_of_U1
Credit Agreement - Schedule of U.S. Credit Agreement (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Line of Credit Facility [Line Items] | ' | ' |
Letter of credit collateralized of restricted cash | $12.60 | $7.40 |
Letters of credit sub limited | 70 | ' |
Letter of credit [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Letters of credit sub limited | $20 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 6 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 13, 2012 | Jun. 12, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | 3-May-12 | Jun. 15, 2012 | Dec. 31, 2013 | Aug. 10, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | 23-May-12 | Apr. 10, 2008 | Mar. 05, 2008 | Jul. 14, 2008 | Jun. 03, 2011 | Jun. 15, 2011 | Aug. 12, 2011 | Jan. 18, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Plaintiff | Findings | Derivatives [Member] | Maximum [Member] | Minimum [Member] | Ross [Member] | Ross [Member] | Vasquez [Member] | Vasquez [Member] | Vasquez [Member] | Code of Civil Procedure [Member] | Surrett [Member] | Surrett [Member] | Surrett [Member] | Surrett [Member] | False Claims Act Lawsuit [Member] | Abarca [Member] | Andrade [Member] | Aprieto [Member] | Coleman case [Member] | Amador [Member] | Amador and California Education Code [Member] | OIG Audit [Member] | ||
Inquiry | Defendant | Plaintiff | Plaintiff | Arbitration | Plaintiff | Student | Members | Claim | Claim | Employees | Person | Person | Person | Person | Lawsuits | Complaints | ||||||||
Person | Plaintiff | |||||||||||||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrual for legal fees and settlements | $20.30 | $5.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of executive officers as defendants | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency range of possible loss maximum | ' | ' | ' | ' | ' | ' | 27.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.8 |
Insurance recovery pending settlement of legal matters | ' | ' | ' | 20 | ' | ' | 22.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Insurance recovery to be transferred | ' | ' | ' | 10 | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining settlement amount to be paid | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Insurance recovery to be allocated to other liabilities | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Attorney fees and expenses | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of opt-out Individuals | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 115 | 31 | 5 | 2 | ' | ' | ' |
Number of suits prosecuted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' |
Number of complaints related and transferred to judge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' |
Number of plaintiffs who have not settled | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80 | ' | ' |
Number of test cases to be tried to the court | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of alleged claims for equitable relief | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of claims added for money damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of students in class | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Opt-out period expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2011-06-20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of individuals WCI file motion to compel arbitration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,062 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of mass action filed | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of student plaintiffs | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of plaintiffs | ' | ' | ' | ' | ' | ' | ' | ' | 1,438 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of individuals that signed arbitration agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of individuals have filed arbitration demands | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of arbitrations which have been tried to final award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of arbitrations which have settled | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of active plaintiffs in consolidated action | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,047 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement amount to be paid | ' | ' | ' | ' | 17.5 | 15.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount recorded as reserve for settlement | $15.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of former employees who filed complaint | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' |
Number of inquiries attorney general will act as point of contact | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of OIG Findings | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of documentation of attendance of students enrolled in CTU's | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of calculation of returns of Title IV Program funds | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Components_of_Pre
Income Taxes - Components of Pretax (Loss) Income from Continuing Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
U.S | ($221,862) | ($192,229) | $16,612 |
Foreign | 522 | -3,876 | -2,866 |
PRETAX (LOSS) INCOME | ($221,340) | ($196,105) | $13,746 |
Income_Taxes_Schedule_of_Benef
Income Taxes - Schedule of (Benefits from) Provision for Income Taxes from Continuing Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Federal | ($57,641) | ($4,268) | $9,637 |
State and local | -2,509 | 1,080 | 1,742 |
Foreign | 289 | -3,075 | -1,225 |
Total current (benefit) provision | -59,861 | -6,263 | 10,154 |
Federal | 39,312 | -39,242 | 26,904 |
State and local | 1,137 | -1,856 | 5,346 |
Foreign | -260 | 211 | 53 |
Total deferred (benefit) provision | 40,189 | -40,887 | 32,303 |
Total (benefit from) provision for income taxes | ($19,672) | ($47,150) | $42,457 |
Income_Taxes_Schedule_of_Recon
Income Taxes - Schedule of Reconciliation of Statutory U.S. Federal Income Tax Rate to Effective Income Tax Rate for Continuing Operations (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation | ' | ' | ' |
Statutory U.S. federal income tax rate | -35.00% | -35.00% | 35.00% |
State and local income taxes | -3.40% | -3.30% | 2.70% |
Nondeductible goodwill | ' | 14.40% | 351.20% |
Valuation allowance | 32.60% | 2.40% | 2.00% |
Foreign taxes | -0.50% | ' | ' |
Tax credits | -0.80% | ' | -24.60% |
Worthless stock | ' | ' | -11.20% |
Other | -1.80% | -2.50% | -46.20% |
Effective income tax rate | -8.90% | -24.00% | 308.90% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Contingency [Line Items] | ' | ' | ' |
Decrease in effective tax rate due to valuation allowance, percentage | 32.60% | 2.40% | 2.00% |
Decrease in effective tax rate due to valuation allowance, amount | $82,500,000 | ' | ' |
Increase in effective tax rate | 3.90% | 2.50% | ' |
Nondeductible goodwill | ' | 14.40% | 351.20% |
Effective income tax rate include non-deductible goodwill and asset impairment charge | ' | 73,600,000 | 121,700,000 |
Effective tax rate includes favorable tax adjustment | ' | ' | 46.10% |
Unrecognized tax benefits that would impact effective tax rate | 12,700,000 | 18,800,000 | ' |
Short-term reserves | 700,000 | ' | ' |
Long-term reserves | 13,200,000 | ' | ' |
Interest and penalties | 3,107,000 | 3,794,000 | 4,532,000 |
Unrecognized tax benefits, income tax penalties and interest benefit/expense recognized | 700,000 | 500,000 | 600,000 |
Gross unrecognized tax benefits change range, minimum | 0 | ' | ' |
Gross unrecognized tax benefits change range, maximum | 1,100,000 | ' | ' |
Net operating loss carry forwards, for state income tax purposes | 187,700,000 | ' | ' |
Deferred income tax expense from discontinued operations | 18,000,000 | ' | ' |
Q4 2013 Assessment Continuing & Discontinued [Member] | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Decrease in effective tax rate due to valuation allowance, amount | 72,200,000 | ' | ' |
Valuation Allowance Foreign Tax Credits [Member] | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Decrease in effective tax rate due to valuation allowance, amount | 3,100,000 | ' | ' |
Valuation Allowance Net Operating Loss Carryforwards [Member] | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Decrease in effective tax rate due to valuation allowance, amount | $7,200,000 | ' | ' |
Income_Taxes_Schedule_of_Recon1
Income Taxes - Schedule of Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Gross unrecognized tax benefits, beginning of the year | $24,479 | $29,892 | $28,316 |
Additions for tax positions of prior years | 3,582 | ' | 1,894 |
Reductions for tax positions of prior years | ' | -3,548 | -1,748 |
Additions for tax positions related to the current year | 813 | 958 | 2,764 |
Reductions due to settlements | -13,707 | -2,531 | -690 |
Reductions due to lapse of applicable statute of limitations | -1,267 | -292 | -644 |
Subtotal | 13,900 | 24,479 | 29,892 |
Interest and penalties | 3,107 | 3,794 | 4,532 |
Total gross unrecognized tax benefits, end of the year | $17,007 | $28,273 | $34,424 |
Income_Taxes_Schedule_of_Compo
Income Taxes - Schedule of Components of Deferred Income Tax Assets and Liabilities for Continuing Operations (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Accrued occupancy | $4,001 | $3,526 |
Deferred rent obligations | 16,213 | 17,160 |
Foreign tax credits | 12,026 | 22,267 |
Valuation allowance foreign tax credits | -3,116 | -607 |
Compensation and employee benefits | 18,001 | 13,946 |
Tax net operating loss carry forwards | 7,220 | 5,454 |
Valuation allowance | -7,220 | -5,100 |
Allowance for doubtful accounts | 1,668 | 2,141 |
Covenant not-to-compete | 80 | 117 |
Accrued settlements and legal | 7,713 | 1,887 |
Deferred compensation | 498 | 130 |
Accrued restructuring and severance | 2,057 | 2,332 |
Depreciation and amortization | 11,655 | ' |
Other | 1,711 | 1,980 |
Valuation allowance deferred tax assets | -54,193 | ' |
Total deferred income tax assets | 18,314 | 65,233 |
Depreciation and amortization | ' | 5,523 |
Other | 4,064 | 5,273 |
Total deferred income tax liabilities | 4,064 | 10,796 |
Net deferred income tax assets | $14,250 | $54,437 |
Income_Taxes_Schedule_of_Net_D
Income Taxes - Schedule of Net Deferred Income Tax Assets for Continuing Operations (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Current deferred income tax assets, net | $3,606 | $7,088 |
Non-current deferred income tax assets, net | 10,644 | 47,349 |
Net deferred income tax assets | $14,250 | $54,437 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | |
Non-Employee Directors' Stock Options [Member] | Non-Employee Directors' Stock Options [Member] | Non-Employee Directors' Stock Options [Member] | Performance Based Restricted Stock [Member] | 2008 Incentive Compensation Plan [Member] | Employee Stock Option [Member] | Restricted Stock Shares [Member] | Stock Appreciation Rights (SARs) [Member] | Restricted Stock Units to be Settled in Cash [Member] | ||
Scenario One [Member] | Scenario Two [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock subject to awards of stock options or stock appreciation rights payable in shares | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' |
Common stock subject to any other form of award | ' | ' | ' | ' | ' | 1.67 | ' | ' | ' | ' |
Common stock available for future share-based awards | ' | ' | ' | ' | ' | 6,400,000 | ' | ' | ' | ' |
Shares issuable upon exercise of outstanding options | ' | ' | ' | ' | ' | 3,900,000 | ' | ' | ' | ' |
Number of shares to reduce shares available to grant by upon vesting of restricted stock units | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated pretax compensation expense | $6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated pretax compensation expenses expiration, years | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee stock options exercisable in percentage | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' |
Service period in years | '4 years | ' | ' | ' | ' | ' | '4 years | '4 years | ' | ' |
Expiration period in years | ' | '10 years | ' | ' | ' | ' | '10 years | ' | '10 years | ' |
Vesting period in years | ' | ' | '3 | '4 | ' | ' | ' | ' | ' | ' |
Restricted stock awards exercisable in percentage | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' |
Long-term incentive, cash-based awards | '3 years | ' | ' | ' | '3 years | ' | ' | '3 years | '4 years | ' |
Restricted stock awards exercisable in percentage | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of outstanding cash settlement on RSU's | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13 |
Compensation-Stock Compensation and recognized a liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 |
Grant date fair value of the performance unit awards granted during the first quarter | 4,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the liability incurred through | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SARs to be settled in cash granted | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' |
Grant date fair value of SARs to be settled in cash | ' | ' | ' | ' | ' | ' | ' | ' | $200,000 | ' |
SARs vesting rate | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' |
Volatility assumptions for estimating the fair value of stock options minimum | 59.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Volatility assumptions for estimating the fair value of stock options maximum | 67.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ShareBased_Compensation_Summar
Share-Based Compensation - Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Beginning balance of Outstanding, Options | 2,591,887 | 3,353,462 | 3,574,614 |
Granted, Options | 1,934,005 | 534,895 | 565,720 |
Exercised, Options | -1,275 | ' | -141,625 |
Forfeited, Options | -261,366 | -196,400 | -456,459 |
Cancelled, Options | -362,816 | -1,100,070 | -188,788 |
Ending balance of Outstanding, Options | 3,900,435 | 2,591,887 | 3,353,462 |
Outstanding, Beginning, Weighted Average Exercise Price | $25.96 | $27.79 | $28.29 |
Exercisable, Options | 2,203,417 | ' | ' |
Granted, Weighted Average Exercise Price | $2.58 | $7.91 | $21.87 |
Exercised, Weighted Average Exercise Price | $3.08 | ' | $14.60 |
Forfeited, Weighted Average Exercise Price | $5.19 | $18.52 | $24.69 |
Cancelled, Weighted Average Exercise Price | $31.60 | $24.09 | $36.94 |
Outstanding, Weighted Average Exercise Price | $15.15 | $25.96 | $27.79 |
Exercisable, Weighted Average Exercise Price | $23.42 | ' | ' |
Outstanding, Weighted Average Remaining Contractual Term | '6 years 9 months 18 days | ' | ' |
Exercisable, Weighted Average Remaining Contractual Term | '5 years | ' | ' |
Exercised, Aggregate Intrinsic Value | $3 | ' | $1,112 |
Outstanding, Aggregate Intrinsic Value | 5,513 | ' | ' |
Exercisable, Aggregate Intrinsic Value | $1,116 | ' | ' |
Share_Based_Compensation_Sched
Share Based Compensation - Schedule of Information with Respect to Outstanding and Exercisable Stock Options (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Options Outstanding, Number of Options Outstanding | 3,900,435 | 2,591,887 | 3,353,462 | 3,574,614 |
Options Outstanding, Weighted Average Exercise Price | $15.15 | $25.96 | $27.79 | $28.29 |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | '6 years 9 months 18 days | ' | ' | ' |
Options Exercisable, Number Exercisable | 2,203,417 | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $23.42 | ' | ' | ' |
Range of Exercise Prices $2.20 - $2.20 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Minimum | $2.20 | ' | ' | ' |
Range of Exercise Prices, Maximum | $2.20 | ' | ' | ' |
Options Outstanding, Number of Options Outstanding | 644,628 | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $2.20 | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | '9 years 3 months 7 days | ' | ' | ' |
Options Exercisable, Number Exercisable | ' | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $0 | ' | ' | ' |
Range of Exercise Prices $2.62 - $2.65 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Minimum | $2.62 | ' | ' | ' |
Range of Exercise Prices, Maximum | $2.65 | ' | ' | ' |
Options Outstanding, Number of Options Outstanding | 96,729 | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $2.65 | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | '9 years 7 months 10 days | ' | ' | ' |
Options Exercisable, Number Exercisable | 2,221 | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $2.62 | ' | ' | ' |
Range of Exercise Prices $2.72 - $2.72 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Minimum | $2.72 | ' | ' | ' |
Range of Exercise Prices, Maximum | $2.72 | ' | ' | ' |
Options Outstanding, Number of Options Outstanding | 700,972 | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $2.72 | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | '9 years 2 months 1 day | ' | ' | ' |
Options Exercisable, Number Exercisable | 337,500 | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $2.72 | ' | ' | ' |
Range of Exercise Prices $2.82 - $6.51 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Minimum | $2.82 | ' | ' | ' |
Range of Exercise Prices, Maximum | $6.51 | ' | ' | ' |
Options Outstanding, Number of Options Outstanding | 415,002 | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $3.79 | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | '9 years 2 months 16 days | ' | ' | ' |
Options Exercisable, Number Exercisable | 84,648 | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $4.94 | ' | ' | ' |
Range of Exercise Prices $8.63 - $13.67 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Minimum | $8.63 | ' | ' | ' |
Range of Exercise Prices, Maximum | $13.67 | ' | ' | ' |
Options Outstanding, Number of Options Outstanding | 394,500 | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $9.81 | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | '7 years 1 month 17 days | ' | ' | ' |
Options Exercisable, Number Exercisable | 223,804 | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $10.70 | ' | ' | ' |
Range of Exercise Prices $14.96 - $22.04 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Minimum | $14.96 | ' | ' | ' |
Range of Exercise Prices, Maximum | $22.04 | ' | ' | ' |
Options Outstanding, Number of Options Outstanding | 480,384 | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $20.31 | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | '4 years 9 months 29 days | ' | ' | ' |
Options Exercisable, Number Exercisable | 437,192 | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $20.17 | ' | ' | ' |
Range of Exercise Prices $22.13 - $30.67 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Minimum | $22.13 | ' | ' | ' |
Range of Exercise Prices, Maximum | $30.67 | ' | ' | ' |
Options Outstanding, Number of Options Outstanding | 481,244 | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $27.67 | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | '5 years 10 months 28 days | ' | ' | ' |
Options Exercisable, Number Exercisable | 431,076 | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $27.96 | ' | ' | ' |
Range of Exercise Prices $30.80 - $34.70 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Minimum | $30.80 | ' | ' | ' |
Range of Exercise Prices, Maximum | $34.70 | ' | ' | ' |
Options Outstanding, Number of Options Outstanding | 498,751 | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $33.31 | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | '2 years 1 month 28 days | ' | ' | ' |
Options Exercisable, Number Exercisable | 498,751 | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $33.31 | ' | ' | ' |
Range of Exercise Prices $34.86 - $62.56 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Minimum | $34.86 | ' | ' | ' |
Range of Exercise Prices, Maximum | $62.56 | ' | ' | ' |
Options Outstanding, Number of Options Outstanding | 185,100 | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $54.94 | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | '8 months 19 days | ' | ' | ' |
Options Exercisable, Number Exercisable | 185,100 | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $54.94 | ' | ' | ' |
Range of Exercise Prices $68.24 - $68.24 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Minimum | $68.24 | ' | ' | ' |
Range of Exercise Prices, Maximum | $68.24 | ' | ' | ' |
Options Outstanding, Number of Options Outstanding | 3,125 | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $68.24 | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | '5 months 5 days | ' | ' | ' |
Options Exercisable, Number Exercisable | 3,125 | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $68.24 | ' | ' | ' |
ShareBased_Compensation_Schedu
Share-Based Compensation - Schedule of Information with Respect to all Outstanding Restricted Stock (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Beginning balance of Outstanding Shares | 1,998,224 | 1,796,747 | 2,188,636 |
Granted, Shares | 43,313 | 1,416,832 | 1,266,170 |
Vested, Shares | -515,066 | -374,260 | -816,017 |
Forfeited, Shares | -766,288 | -841,095 | -842,042 |
Ending balance of Outstanding Shares | 760,183 | 1,998,224 | 1,796,747 |
Restricted Stock Shares [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Beginning balance of Outstanding Shares | 854,291 | 1,796,747 | 2,188,636 |
Granted, Shares | ' | ' | 1,266,170 |
Vested, Shares | -208,461 | -374,260 | -816,017 |
Forfeited, Shares | -424,268 | -568,196 | -842,042 |
Ending balance of Outstanding Shares | 221,562 | 854,291 | 1,796,747 |
Outstanding, Beginning Weighted Average Grant-Date Fair Value Per Share | 24.74 | 24.74 | 23.17 |
Granted, Weighted Average Grant-Date Fair Value Per Share | ' | ' | 21.83 |
Vested, Weighted Average Grant-Date Fair Value Per Share | 23.1 | 24.74 | 15.55 |
Forfeited, Weighted Average Grant-Date Fair Value Per Share | 27.01 | 24.73 | 25.19 |
Outstanding, Weighted Average Grant-Date Fair Value Per Share | 22.19 | 24.74 | 24.74 |
Restricted Stock Units RSU [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Beginning balance of Outstanding Shares | 1,143,933 | ' | ' |
Granted, Shares | 43,313 | 1,416,832 | ' |
Vested, Shares | -306,605 | ' | ' |
Forfeited, Shares | -342,020 | -272,899 | ' |
Ending balance of Outstanding Shares | 538,621 | 1,143,933 | ' |
Outstanding, Beginning Weighted Average Grant-Date Fair Value Per Share | 8.27 | ' | ' |
Granted, Weighted Average Grant-Date Fair Value Per Share | 2.72 | 8.32 | ' |
Vested, Weighted Average Grant-Date Fair Value Per Share | 8.6 | ' | ' |
Forfeited, Weighted Average Grant-Date Fair Value Per Share | 7.22 | 8.53 | ' |
Outstanding, Weighted Average Grant-Date Fair Value Per Share | 8.3 | 8.27 | ' |
ShareBased_Compensation_Schedu1
Share-Based Compensation - Schedule of Restricted Stock Units to be Settled in Cash (Detail) (Restricted Stock Units to be Settled in Cash [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
Restricted Stock Units to be Settled in Cash [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Outstanding as of December 31, 2012, Stock Units to be Settled in Cash | ' |
Stock Units to be Settled in Cash, Granted | 2,938,283 |
Stock Units to be Settled in Cash, Vested | ' |
Stock Units to be Settled in Cash, Forfeited | -649,368 |
Outstanding as of September 30, 2013, Stock Units to be Settled in Cash | 2,288,915 |
Share_Based_Compensation_Sched1
Share Based Compensation - Schedule of Fair Value of Stock Option Award Granted Estimated on Date of Grant Using the Black-Scholes-Merton Option Pricing Model (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Dividend yield | ' | ' | ' |
Risk-free interest rate | 1.10% | 0.60% | 2.20% |
Weighted average volatility | 64.60% | 68.40% | 53.30% |
Expected life (in years) | '5 years 7 months 6 days | '5 years 2 months 12 days | '5 years 6 months |
Weighted average grant date fair value per share of options granted | $1.47 | $4.10 | $10.89 |
Recovered_Sheet6
Weighted Average Common Shares - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings Per Share [Abstract] | ' | ' | ' |
Anti-dilutive awards excluded from computations of diluted earnings per share | 0 | 0 | 0 |
Weighted average number of shares issued | 403,000 | 207,000 | 180,000 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Percentage of amount vested to defined contribution retirement savings plan | 100.00% | ' | ' |
Expense for continuing and discontinued operations under employee benefit plan | $4,600,000 | $11,900,000 | $12,800,000 |
Percentage of fair market value of common stock | 95.00% | ' | ' |
Percentage of shares limited to an employee under employee stock purchase plan | 10.00% | ' | ' |
Maximum salary of employee allowed to purchase shares under employee stock purchase plan | $25,000 | ' | ' |
Common stock issued under employee stock purchase plan | 2.9 | ' | ' |
Employee Stock Purchase Plan [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Authorized to grant the common stock under the employee stock purchase plan | 4 | ' | ' |
0-2% Contribution [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Percentage of amount contributed to defined contribution retirement savings plan | 50.00% | 100.00% | 100.00% |
2-4% Contribution [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Percentage of amount contributed to defined contribution retirement savings plan | 25.00% | 50.00% | 50.00% |
Minimum number of hours worked | '1000 hours | ' | ' |
Segment_Reporting_Summary_Fina
Segment Reporting - Summary Financial Information by Reporting Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $247,094 | $251,224 | $268,839 | $290,203 | $303,276 | $314,890 | $343,013 | $383,701 | $1,057,360 | $1,344,880 | $1,705,581 |
Operating (loss) income | -59,025 | -67,209 | -58,825 | -29,625 | -91,527 | -39,562 | -100,863 | 34,951 | -214,684 | -197,001 | 11,227 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 68,640 | 74,737 | 76,387 |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 19,636 | 37,944 | 78,333 |
Total Assets | 805,045 | ' | ' | ' | 1,122,703 | ' | ' | ' | 805,045 | 1,122,703 | ' |
CTU [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 347,255 | 363,935 | 415,411 |
Operating (loss) income | ' | ' | ' | ' | ' | ' | ' | ' | 63,460 | 54,928 | 111,119 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 2,919 | 3,476 | 3,425 |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 158 | 1,408 | 4,553 |
Total Assets | 75,441 | ' | ' | ' | 72,554 | ' | ' | ' | 75,441 | 72,554 | ' |
AIU [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 231,606 | 304,208 | 365,203 |
Operating (loss) income | ' | ' | ' | ' | ' | ' | ' | ' | -5,556 | 20,896 | 72,738 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 3,069 | 4,249 | 4,830 |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 122 | 1,746 | 3,208 |
Total Assets | 54,426 | ' | ' | ' | 65,092 | ' | ' | ' | 54,426 | 65,092 | ' |
University Schools [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 578,861 | 668,143 | 780,614 |
Operating (loss) income | ' | ' | ' | ' | ' | ' | ' | ' | 57,904 | 75,824 | 183,857 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 5,988 | 7,725 | 8,255 |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 280 | 3,154 | 7,761 |
Total Assets | 129,867 | ' | ' | ' | 137,646 | ' | ' | ' | 129,867 | 137,646 | ' |
Health Education [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 125,845 | ' | ' |
Operating (loss) income | ' | ' | ' | ' | ' | ' | ' | ' | -50,480 | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 7,796 | ' | ' |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 542 | ' | ' |
Total Assets | 39,248 | ' | ' | ' | ' | ' | ' | ' | 39,248 | ' | ' |
Culinary Arts [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 177,549 | ' | ' |
Operating (loss) income | ' | ' | ' | ' | ' | ' | ' | ' | -81,218 | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 17,083 | ' | ' |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 705 | ' | ' |
Total Assets | 108,349 | ' | ' | ' | ' | ' | ' | ' | 108,349 | ' | ' |
Design & Technology [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 96,348 | 124,611 | 162,410 |
Operating (loss) income | ' | ' | ' | ' | ' | ' | ' | ' | -30,542 | -56,747 | 11,500 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 4,934 | 5,400 | 6,414 |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 5,691 | 2,157 | 2,477 |
Total Assets | 19,470 | ' | ' | ' | 27,389 | ' | ' | ' | 19,470 | 27,389 | ' |
Career Schools [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 399,742 | 502,894 | 676,722 |
Operating (loss) income | ' | ' | ' | ' | ' | ' | ' | ' | -162,240 | -161,489 | -96,554 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 29,813 | 31,090 | 35,553 |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 6,938 | 8,325 | 23,328 |
Total Assets | 167,067 | ' | ' | ' | 246,337 | ' | ' | ' | 167,067 | 246,337 | ' |
Corporate and Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating (loss) income | ' | ' | ' | ' | ' | ' | ' | ' | -33,600 | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 22,574 | ' | ' |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 6,272 | ' | ' |
Total Assets | 491,674 | ' | ' | ' | ' | ' | ' | ' | 491,674 | ' | ' |
Subtotal [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 978,603 | 1,171,092 | 1,456,937 |
Operating (loss) income | ' | ' | ' | ' | ' | ' | ' | ' | -137,936 | -93,364 | 57,109 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 58,375 | 61,455 | 63,544 |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 13,490 | 27,960 | 59,732 |
Total Assets | 788,608 | ' | ' | ' | 817,135 | ' | ' | ' | 788,608 | 817,135 | ' |
Transitional Schools [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 78,757 | ' | ' |
Operating (loss) income | ' | ' | ' | ' | ' | ' | ' | ' | -76,748 | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 10,265 | ' | ' |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 294 | ' | ' |
Total Assets | 14,974 | ' | ' | ' | ' | ' | ' | ' | 14,974 | ' | ' |
Discontinued Operations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating (loss) income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 5,852 | 6,534 | 4,469 |
Total Assets | $1,463 | ' | ' | ' | $258,122 | ' | ' | ' | $1,463 | $258,122 | ' |
Segment_Reporting_Summary_Fina1
Segment Reporting - Summary Financial Information by Reporting Segment (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | |
CTU [Member] | CTU [Member] | CTU [Member] | Health Education [Member] | Health Education [Member] | Health Education [Member] | Culinary Arts [Member] | Culinary Arts [Member] | Culinary Arts [Member] | Design & Technology [Member] | Design & Technology [Member] | Design & Technology [Member] | Design & Technology [Member] | Corporate and Other [Member] | Corporate and Other [Member] | Transitional Schools [Member] | Transitional Schools [Member] | Transitional Schools [Member] | DTEG Ongoing Schools [Member] | DTEG Facilities [Member] | ||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill and asset impairment | ' | ' | $85,600,000 | ' | $22,691,000 | $127,007,000 | $191,524,000 | ' | ' | ' | $1,700,000 | $44,800,000 | ' | $13,000,000 | $8,100,000 | $94,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | $37,300,000 | ' | ' |
Preliminary settlement legal matters | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000 | ' | ' | ' | ' |
Pending legal settlement | 15,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset impairments charges | 7,000,000 | 40,800,000 | ' | ' | 22,687,000 | 125,529,000 | 191,524,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,100,000 | ' | ' | ' | ' | 2,600,000 | ' | ' | -2,300,000 | -1,800,000 |
Goodwill Impairment | ' | ' | ' | ' | ' | 83,350,000 | 168,700,000 | ' | ' | ' | ' | 41,293,000 | ' | ' | ' | ' | ' | ' | 40,752,000 | ' | ' | ' | ' | 1,305,000 | ' | ' | ' |
Insurance recovery related to the settlement of claims under certain insurance policies | ' | ' | ' | 19,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,000,000 | 7,000,000 | ' | ' | ' | ' | ' |
Goodwill and asset impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 59,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,700,000 | ' | ' | ' |
Administrative expense for an estimate for potential reimbursements of government funds | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement of administrative expense | ' | ' | ' | ' | ' | ' | ' | 3,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | 4,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Legal expense related to the settlements of legal matters | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,000,000 | ' | ' | ' | ' | ' | ' | ' |
QUARTERLY_FINANCIAL_SUMMARY_UN2
QUARTERLY FINANCIAL SUMMARY (UNAUDITED) - Schedule of Quarterly Financial Summary (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $247,094 | $251,224 | $268,839 | $290,203 | $303,276 | $314,890 | $343,013 | $383,701 | $1,057,360 | $1,344,880 | $1,705,581 |
Operating income (loss) | -59,025 | -67,209 | -58,825 | -29,625 | -91,527 | -39,562 | -100,863 | 34,951 | -214,684 | -197,001 | 11,227 |
Net (loss) income | ($30,606) | ($87,064) | ($31,390) | ($15,203) | ($61,492) | ($33,146) | ($100,234) | $52,076 | ($164,263) | ($142,796) | $18,573 |
Net (loss) income per share, Basic and Diluted | ($0.46) | ($1.30) | ($0.47) | ($0.23) | ($0.93) | ($0.50) | ($1.52) | $0.78 | ($2.46) | ($2.15) | $0.25 |
QUARTERLY_FINANCIAL_SUMMARY_UN3
QUARTERLY FINANCIAL SUMMARY (UNAUDITED) - Schedule of Quarterly Financial Summary (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | |
Schedule Of Quarterly Financial Summary [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Insurance recovery | ' | ' | ' | ' | ' | $19,000,000 | ' | ' | ' | ' |
Loss on sale of business | ' | ' | 6,700,000 | ' | ' | ' | -6,905,000 | ' | ' | ' |
Legal costs related to regulatory matters | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill and asset impairment charges | ' | ' | ' | ' | 85,600,000 | ' | 22,691,000 | 127,007,000 | 191,524,000 | ' |
Trade name impairment charges | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | 11,600,000 |
Goodwill and asset impairment charges, discontinued operation | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' |
Realized gain on sale | ' | ' | ' | ' | ' | ' | 130,100,000 | ' | ' | ' |
Valuation allowances against deferred tax assets | 72,200,000 | ' | ' | ' | ' | ' | 72,200,000 | ' | ' | ' |
Amount from legal settlement | 15,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset impairment charges | 7,000,000 | ' | ' | 40,800,000 | ' | ' | 22,687,000 | 125,529,000 | 191,524,000 | ' |
Severance expense | ' | ' | ' | 13,100,000 | ' | ' | ' | ' | ' | ' |
International Segment Sale [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Quarterly Financial Summary [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Realized gain on sale | $130,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |