Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 20, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CECO | ||
Entity Registrant Name | CAREER EDUCATION CORP | ||
Entity Central Index Key | 1046568 | ||
Current Fiscal Year End Date | -19 | ||
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 | 67,519,701 | ||
Entity Public Float | $277,781,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents, unrestricted | $93,832 | $318,468 |
Restricted cash | 22,938 | 12,564 |
Short-term investments | 122,858 | 31,592 |
Total cash and cash equivalents, restricted cash and short-term investments | 239,628 | 362,624 |
Student receivables, net of allowance for doubtful accounts of $12,398 and $14,500 as of December 31, 2014 and 2013, respectively | 24,564 | 27,995 |
Receivables, other, net | 18,925 | 27,198 |
Prepaid expenses | 14,679 | 16,723 |
Inventories | 3,305 | 4,593 |
Deferred income tax assets, net | 3,606 | |
Other current assets | 2,384 | 3,059 |
Assets of discontinued operations | 77,319 | 14,219 |
Total current assets | 380,804 | 460,017 |
NON-CURRENT ASSETS: | ||
Property and equipment, net | 73,083 | 112,095 |
Goodwill | 87,356 | 87,356 |
Intangible assets, net | 9,819 | 12,817 |
Student receivables, net of allowance for doubtful accounts of $2,119 and $3,070 as of December 31, 2014 and 2013, respectively | 2,926 | 3,276 |
Deferred income tax assets, net | 10,644 | |
Other assets | 18,571 | 17,132 |
Assets of discontinued operations | 975 | 101,708 |
TOTAL ASSETS | 573,534 | 805,045 |
CURRENT LIABILITIES: | ||
Short-term borrowings | 10,000 | |
Accounts payable | 21,968 | 22,826 |
Accrued expenses: | ||
Payroll and related benefits | 29,545 | 33,997 |
Advertising and production costs | 13,162 | 17,166 |
Income taxes | 1,633 | 14,994 |
Other | 21,440 | 37,985 |
Deferred tuition revenue | 37,572 | 44,769 |
Liabilities of discontinued operations | 65,863 | 35,695 |
Total current liabilities | 201,183 | 207,432 |
NON-CURRENT LIABILITIES: | ||
Deferred rent obligations | 48,381 | 54,236 |
Other liabilities | 19,178 | 24,797 |
Liabilities of discontinued operations | 22,859 | 63,196 |
Total non-current liabilities | 90,418 | 142,229 |
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; 82,336,689 and 81,889,907 shares issued, 67,521,038 and 67,170,522 shares outstanding as of December 31, 2014 and 2013, respectively | 823 | 819 |
Additional paid-in capital | 606,531 | 600,904 |
Accumulated other comprehensive loss | -853 | -503 |
Retained (deficit) earnings | -109,403 | 68,658 |
Cost of 14,815,651 and 14,719,385 shares in treasury as of December 31, 2014 and 2013, respectively | -215,165 | -214,494 |
Total stockholders' equity | 281,933 | 455,384 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $573,534 | $805,045 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Student receivables, allowance for doubtful accounts, current | $12,398 | $14,500 |
Student receivables, allowance for doubtful accounts, non-current | $2,119 | $3,070 |
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 | 82,336,689 | 81,889,907 |
Common stock, shares outstanding | 67,521,038 | 67,170,522 |
Treasury, Shares in treasury | 14,815,651 | 14,719,385 |
Consolidated_Statements_of_Los
Consolidated Statements of Loss and Comprehensive Loss (USD $) | 12 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
REVENUE: | |||||
Tuition and registration fees | $736,883 | $834,084 | $1,005,753 | ||
Other | 4,475 | 5,597 | 14,150 | ||
Total revenue | 741,358 | 839,681 | 1,019,903 | ||
OPERATING EXPENSES: | |||||
Educational services and facilities | 240,796 | 274,450 | 324,493 | ||
General and administrative | 520,361 | 592,236 | 630,142 | ||
Depreciation and amortization | 36,019 | 45,155 | 48,352 | ||
Goodwill and asset impairment | 16,898 | 8,681 | 86,606 | ||
Total operating expenses | 814,074 | 920,522 | 1,089,593 | ||
Operating loss | -72,716 | -80,841 | -69,690 | ||
OTHER (EXPENSE) INCOME: | |||||
Interest income | 851 | 1,359 | 1,191 | ||
Interest expense | -491 | -1,328 | -134 | ||
Loss on sale of business | -6,905 | ||||
Miscellaneous (expense) income | -148 | 134 | -156 | ||
Total other income (expense) | 212 | -6,740 | 901 | ||
PRETAX LOSS | -72,504 | -87,581 | -68,789 | ||
Provision for (benefit from) income taxes | 3,736 | 30,144 | -3,948 | ||
LOSS FROM CONTINUING OPERATIONS | -76,240 | -117,725 | -64,841 | ||
LOSS FROM DISCONTINUED OPERATIONS, net of tax | -101,923 | -46,538 | [1] | -77,955 | [2] |
NET LOSS | -178,163 | -164,263 | -142,796 | ||
OTHER COMPREHENSIVE INCOME (LOSS), net of tax: | |||||
Foreign currency translation adjustments | 4,295 | 503 | |||
Unrealized losses on investments | -350 | -13 | -152 | ||
Total other comprehensive (loss) income | -350 | 4,282 | 351 | ||
COMPREHENSIVE LOSS | ($178,513) | ($159,981) | ($142,445) | ||
NET LOSS PER SHARE - BASIC and DILUTED: | |||||
Loss from continuing operations | ($1.13) | ($1.76) | ($0.98) | ||
Loss from discontinued operations | ($1.52) | ($0.70) | ($1.17) | ||
Net loss per share | ($2.65) | ($2.46) | ($2.15) | ||
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||||
Basic and Diluted | 67,173 | 66,738 | 66,475 | ||
[1] | The income tax expense associated with the gain on sale of our International Segment approximates $87.9 million. | ||||
[2] | 2012 pretax loss includes income for non-profit entities within our International segment, which are not subject to income tax. |
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 [Member] | Retained Earnings (Deficit) [Member] |
In Thousands, except Share data, unless otherwise specified | ||||||
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 loss | -142,796 | -142,796 | ||||
Foreign currency translation gain | 503 | 503 | ||||
Unrealized loss on investments | -152 | -152 | ||||
COMPREHENSIVE 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 | 200,000 | 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 | 81,617,000 | |||||
BALANCE, shares at Dec. 31, 2012 | -14,547,000 | |||||
Net loss | -164,263 | -164,263 | ||||
Foreign currency translation gain | 4,295 | 4,295 | ||||
Unrealized loss on investments | -13 | -13 | ||||
COMPREHENSIVE 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 | 1,000 | ||||
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 | 400,000 | 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 | 81,890,000 | ||||
BALANCE, shares at Dec. 31, 2013 | 14,719,385 | -14,719,000 | ||||
Net loss | -178,163 | -178,163 | ||||
Unrealized loss on investments | -350 | -350 | ||||
COMPREHENSIVE LOSS | -178,513 | |||||
Share-based compensation expense: | ||||||
Stock option plans | 1,372 | 1,372 | ||||
Restricted stock award plans | 2,865 | 2,865 | ||||
Employee stock purchase plan | 40 | 40 | ||||
Common stock issued under: | ||||||
Stock option plans | 612 | 2 | 610 | |||
Stock option plans, shares | 225,000 | 225,000 | 0 | |||
Restricted stock award plans | -671 | 1 | -671 | -1 | ||
Restricted stock award plans, shares | 95,000 | -97,000 | ||||
Employee stock purchase plan | 742 | 1 | 741 | |||
Employee stock purchase plan, shares | 100,000 | 127,000 | ||||
Cumulative adjustment for change from cost method investment to equity method investment | 102 | 102 | ||||
BALANCE at Dec. 31, 2014 | $281,933 | $823 | ($215,165) | $606,531 | ($853) | ($109,403) |
BALANCE, shares at Dec. 31, 2014 | 82,336,689 | 82,337,000 | ||||
BALANCE, shares at Dec. 31, 2014 | 14,815,651 | -14,816,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | ($178,163) | ($164,263) | ($142,796) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Goodwill and asset impairment | 36,209 | 22,691 | 127,007 |
Loss on sale of student receivables | 720 | ||
Depreciation and amortization expense | 55,455 | 73,150 | 81,813 |
Bad debt expense | 14,841 | 28,892 | 40,022 |
Compensation expense related to share-based awards | 4,277 | 6,699 | 9,687 |
Loss (gain) on sale of businesses, net | 311 | -123,204 | |
Gain on bargain purchase | -669 | ||
Loss on disposition of property and equipment | 32 | 118 | 301 |
Deferred income taxes | 14,250 | 58,087 | -42,014 |
Changes in operating assets and liabilities | |||
Student receivables, gross | 13,281 | 56,072 | 17,913 |
Allowance for doubtful accounts | -23,812 | -39,766 | -57,908 |
Other receivables, net | 7,854 | -29,526 | -1,433 |
Inventories, prepaid expenses, and other current assets | -1,877 | 40,257 | 16,244 |
Deposits and other non-current assets | -1,166 | 12,244 | 1,654 |
Accounts payable | -830 | -8,463 | -11,984 |
Accrued expenses and deferred rent obligations | -52,972 | -4,885 | -19,473 |
Deferred tuition revenue | -6,314 | -13,907 | -35,882 |
Net cash used in operating activities | -118,624 | -85,804 | -16,798 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of available-for-sale investments | -157,425 | -40,842 | -147,085 |
Sales of available-for-sale investments | 64,920 | 73,070 | 246,464 |
Purchases of property and equipment | -13,156 | -19,636 | -37,944 |
Proceeds on the sale of business, net of cash divested | 156,816 | ||
Payments of cash upon sale of asset | -387 | -2,525 | |
Business acquisitions, net of acquired cash | -1,721 | ||
Purchase of equity method investment | -1,575 | ||
Other | -17 | -1,359 | |
Net cash (used in) provided by investing activities | -107,623 | 166,866 | 58,355 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Purchase of treasury stock | -56,431 | ||
Issuance of common stock | 1,354 | 998 | 1,599 |
Tax benefit associated with stock option exercises | 1 | ||
Payments of assumed loans upon business acquisition | -318 | ||
Payments of contingent consideration | -5,818 | ||
Borrowings from credit facility | 10,000 | 80,000 | |
Payments on borrowings | -80,000 | ||
Change in restricted cash | -10,374 | 85,314 | -97,878 |
Payments of capital lease obligations | -210 | -844 | |
Net cash provided by (used in) financing activities | 980 | 6,103 | -79,690 |
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS: | 156 | -8,844 | -1,837 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -225,111 | 78,321 | -39,970 |
DISCONTINUED OPERATIONS CASH ACTIVITY INCLUDED ABOVE: | |||
Add: Cash balance of discontinued operations, beginning of the year | 475 | 127,104 | 108,867 |
Less: Cash balance of discontinued operations, end of the year | 475 | 127,104 | |
CASH AND CASH EQUIVALENTS, beginning of the year | 318,468 | 113,518 | 171,725 |
CASH AND CASH EQUIVALENTS, end of the year | 93,832 | 318,468 | 113,518 |
Supplemental Cash Flow Information: | |||
Interest paid | 54 | 517 | 205 |
Income taxes paid | $17,528 | $5,106 | $19,102 |
Description_of_the_Company
Description of the Company | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Description of the Company | 1. DESCRIPTION OF THE COMPANY |
The colleges, institutions 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. In addition to its online offerings, Career Education serves students from campuses throughout the United States offering programs that lead to doctoral, master’s, bachelor’s and associate degrees, as well as to diplomas and certificates. | |
Our institutions include both universities that provide degree programs through the master or doctoral level and colleges that provide programs through the associate and bachelor level. The University group includes American InterContinental University (“AIU”) and Colorado Technical University (“CTU”) – predominantly serving students online with career-focused degree programs that meet the educational demands of today’s busy adults. The Career Colleges group offers career-centered education primarily through ground-based campuses and includes Briarcliffe College, Brooks Institute, Harrington College of Design, Missouri College and Sanford-Brown Institutes and Colleges (“SBI” and “SBC,” respectively). Through our colleges, institutions and universities, we are committed to providing high-quality education, enabling students to graduate and pursue rewarding career opportunities. | |
A detailed listing of individual campus locations and web links to Career Education’s colleges, institutions and universities can be found at www.careered.com. | |
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 “college,” “institution,” 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 colleges, institutions or universities. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
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. | |
We organize our business across four reporting segments: CTU, AIU (comprises University Group); Career Colleges; and Transitional Group. Campuses included in our Transitional Group segment are currently being taught out and no longer enroll new students. These campuses employ a gradual teach-out process, enabling them to continue to operate while current students complete their course of study. | |
b. Reclassifications | |
During 2014, we announced the teach-out of three additional Sanford-Brown campuses: Chicago, Las Vegas and Orlando. These campuses are now included in the Transitional Group segment. During the current year, we also completed the teach-out of 20 Transitional Group campuses and one CTU campus as well as sold two campuses (one previously reported in the Career Colleges segment and one previously reported in the Transitional Group segment). As a result, all current and prior periods reflect the sold and fully taught out campuses as components of discontinued operations. | |
Additionally, during the fourth quarter of 2014, our Board of Directors approved a plan to sell our 16 Culinary Arts campuses (“LCB”). Our decision to pursue the divestiture of LCB was the result of an ongoing portfolio review undertaken to evaluate the strategic direction of the Company. As a result of the decision to sell LCB, the assets and liabilities of the entities to be sold are classified as held for sale within discontinued operations as of December 31, 2014. | |
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, long-lived assets, and held for sale 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, 2014, 2013 and 2012, approximately 78%, 78% and 80% respectively, of our institutions’ 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,” of this Annual Report on Form 10-K 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 institutions 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. | |
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, and the 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, 2014, we have determined this investment is at risk for impairment due to the nature of the liquidity of the market over the past several years. 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 institutions, 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 institutions. For certain institutions, 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 institutions charge tuition at varying amounts, depending on the institution, the type of program and specific curriculum. A majority of our institutions 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, institutions that offer our culinary arts and our health programs earn tuition fees over the entire program while the remainder of our institutions 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 and comprehensive loss until the related refund provisions have lapsed. Based on the application of our refund policies, we may be entitled to incremental revenue on the day the student withdraws from one of our schools. Prior to fiscal 2014, we recorded this incremental revenue, any related student receivable and any estimate of the amount we did not expect to collect as bad debt expense during the quarter a student withdrew based on our analysis of the collectability on an aggregate student portfolio basis, for which we had significant historical experience. Beginning in fiscal 2014, we record revenue for students who withdraw when payment is received (i.e., on a cash basis) because collectability on a student by student basis is difficult to ascertain. This change had the effect of reducing net revenues by $9.4 million and bad debt expense by $7.5 million, which resulted in an increase to the loss from continuing operations of $1.9 million for the year ended December 31, 2014. Additionally, this change reduced net student receivables from continuing operations by $1.9 million. Prior year amounts were not restated because the effects were not material. | |
Our institutions’ academic year is generally at least 30 weeks in length but varies both by institution 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 institution and program. Academic terms are determined by start dates, which also vary by institution and program. Our students finance costs through a variety of funding sources, including, among others, federal loan and grant programs, institution payment plans, private loans and grants, private and institutional scholarships and cash payments. | |
Other revenue, which consists primarily of bookstore sales for institutions 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 under our credit agreement and additional restricted funds which provide collateral for letters of credit. See Note 11 “Credit Agreement” for further details of our current credit agreement. | |
Restricted cash balances as of December 31, 2014 and 2013 total $22.9 million and $12.6 million, respectively. Restricted cash balances were comprised of $12.9 million and $12.6 million of certificates of deposit to provide securitization of our letters of credit as of December 31, 2014 and 2013, respectively. Additionally, $10.0 million of restricted cash to provide securitization of borrowings under our credit agreement was included in restricted cash balances as of December 31, 2014. | |
Students at our institutions may receive grants, loans and work-study opportunities to fund their education under Title IV Programs. In certain instances, students may request that we retain a portion of their Title IV funds provided to them in excess of tuition billings. Students may authorize us to apply these funds to historical balances or future charges and/or distribute them directly to the student in certain cases. As of December 31, 2014, we held $12.2 million of these funds on behalf of students within our cash, cash equivalents, restricted cash and short term investments on our consolidated balance sheet. | |
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 five 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 and comprehensive loss. See Note 4 “Discontinued Operations” for further discussion. | |
k. Investments | |
Our investments, which primarily consist of non-governmental debt securities, treasury and federal agencies, and municipal bonds 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 (expense) income in our consolidated statements of loss and comprehensive loss. 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. | |
We use the equity method to account for our investment in equity securities if our investment gives us the ability to exercise significant influence over operating and financial policies of the investee. We include our proportionate share of earnings and/or losses of our equity method investee in other (expense) income within our consolidated statements of loss and comprehensive loss. The carrying value of our equity investment is reported within other non-current assets on our consolidated balance sheets. | |
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 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/or 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 Item 1A, “Risk Factors,” in this Annual Report on Form 10-K. | |
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 institutions to participate in Title IV Programs. | |
Our definite-lived intangible 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 9 “Goodwill and Other Intangible Assets” 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 7 “Property and Equipment” 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 12 “Contingencies” 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, 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, 2014. 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 14 “Share-Based Compensation” 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. Educational Services and Facilities Expense | |
Educational services and facilities expense includes costs directly attributable to the educational activities of our institutions, including: (1) salaries and benefits of faculty, academic administrators, and student support personnel, (2) costs of educational supplies and facilities, including rents on institution 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 institutions, 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 and comprehensive loss, were approximately $20.5 million, $29.1 million and $41.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |
u. 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 and comprehensive loss, were $212.4 million, $227.9 million and $247.2 million, for the years ended December 31, 2014, 2013 and 2012, respectively. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Accounting Changes and Error Corrections [Abstract] | ||||
Recent Accounting Pronouncements | 3. RECENT ACCOUNTING PRONOUNCEMENTS | |||
In January 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-01, Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. This ASU eliminates from GAAP the concept of extraordinary items. Subtopic 225-20 previously required that an entity separately classify, present, and disclose extraordinary events and transactions from the results of ordinary operations and show the items separately. The amendments in this ASU are effective for annual periods and interim periods within those annual periods, beginning after December 15, 2015; early adoption is permitted, for both public and all other entities. We are currently evaluating this guidance and do not believe the adoption will significantly impact the presentation of our financial condition, results of operations and disclosures. | ||||
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This ASU provides guidance to an organization’s management, intended to define management’s responsibility to evaluate whether there is a substantial doubt about an organization’s ability to continue as a going concern and to provide guidance regarding related footnote disclosure. In connection with preparing financial statements for each annual and interim reporting period, an entity’s management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. For all entities, ASU 2014-15 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2016; early adoption is permitted. We are currently evaluating the impact that the adoption of ASU 2014-15 will have on our financial condition, results of operations and disclosures. | ||||
In June 2014, the FASB issued ASU No. 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU standardizes the reporting for these awards by requiring that entities treat these performance targets as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. For all entities, ASU 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015; early adoption is permitted. We are currently evaluating the impact that the adoption of ASU 2014-11 will have on our financial condition, results of operations and disclosures. | ||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 is principles based guidance that can be applied to all contracts with customers, enhancing comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. The core principle of the guidance is that entities should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance details the steps entities should apply to achieve the core principle. For public entities, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period; early adoption is not permitted. We are currently evaluating the impact that the adoption of ASU 2014-09 will have on our financial condition, results of operations and disclosures. | ||||
In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This ASU limits discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. In addition, the amendments in this ASU require expanded disclosures for discontinued operations as well as for disposals that do not qualify as discontinued operations. For public entities, ASU 2014-08 is effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2014. We have evaluated the impact that the adoption of ASU 2014-08 will have on our financial condition, results of operation and disclosures and believe the impact to be material. Previously, campuses within our Transitional Group would be reclassified as discontinued operations upon the teach-out date. Under the new guidance, campuses that complete their teach-out will not meet the definition of discontinued operations, with the exception of those that meet the definition of a “strategic shift.” Therefore, revenues and any respective operating losses associated with these campuses that do not meet the definition of a “strategic shift” will remain within continuing operations for all periods presented. Additionally, we will provide increased disclosures surrounding discontinued operations as well as increased disclosures surrounding our campuses that will cease operations but not meet the requirements to be classified as discontinued operations. | ||||
We have evaluated and adopted the guidance of the following ASUs issued by the FASB in 2013; adopting these ASUs did not materially impact the presentation of our financial condition, results of operations and disclosures: | ||||
• | 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 issued in July 2013. ASU 2013-11 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. | |||
• | 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 issued in February 2013. 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. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||
Discontinued Operations | 4. DISCONTINUED OPERATIONS | ||||||||||||||||||||
As of December 31, 2014, the results of operations for campuses that have ceased operations, assets that are held for sale or institutions 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 2014, we completed the teach-out of twenty-one campuses, as well as completed the sale of two campuses, and accordingly, all current and prior period financial statements include the results of operations and financial position of these campuses as components of discontinued operations. | |||||||||||||||||||||
Assets Held for Sale | |||||||||||||||||||||
During the fourth quarter of 2014, we made the decision to commit to a plan of sale for our Le Cordon Bleu Culinary Arts institutions. Accordingly, the assets and liabilities for these institutions are included in the assets and liabilities of discontinued operations on our consolidated balance sheets and the results of operations are reported within discontinued operations in the consolidated statements of loss and comprehensive loss. As we anticipate the sale of these assets to be completed within one year, we have recorded the assets and liabilities related to these institutions within current assets and liabilities of discontinued operations as of December 31, 2014. | |||||||||||||||||||||
During the fourth quarter of 2014, and prior to the announcement of the plan of sale for our LCB institutions, we concluded that certain indicators, including the recent release of the gainful employment regulation, existed to suggest the long-lived assets were at risk of their carrying values exceeding their respective fair values. As a result of our analysis of fair value, we recorded $10.0 million of asset impairment charges related to the fixed assets at four of our LCB institutions. The fixed assets related to these institutions are expected to generate negative cash flows through their respective lease end dates and as such the carrying values were not deemed 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. | |||||||||||||||||||||
Disposition of 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 reflected 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, during 2013 within loss from discontinued operations on our consolidated statements of loss and comprehensive loss. This gain represented the difference between the proceeds received and the book value of the net assets sold. The income tax expense associated with the gain was approximately $87.9 million. | |||||||||||||||||||||
Results of Discontinued Operations | |||||||||||||||||||||
Combined summary results of operations for our discontinued operations for the years ended December 31, 2014, 2013 and 2012, were as follows (dollars in thousands): | |||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 (1) | 2012 (2) | |||||||||||||||||||
Revenue | $ | 177,314 | $ | 355,340 | $ | 470,661 | |||||||||||||||
Pretax loss | $ | (101,923 | ) | $ | (7,749 | ) | $ | (125,123 | ) | ||||||||||||
Income tax provision (benefit) | — | 38,789 | (47,168 | ) | |||||||||||||||||
Loss from discontinued operations, net of tax | $ | (101,923 | ) | $ | (46,538 | ) | $ | (77,955 | ) | ||||||||||||
Net loss per diluted share | $ | (1.52 | ) | $ | (0.70 | ) | $ | (1.17 | ) | ||||||||||||
-1 | The income tax expense associated with the gain on sale of our International Segment approximates $87.9 million. | ||||||||||||||||||||
-2 | 2012 pretax loss includes income for non-profit entities within our International segment, which are not subject to income tax. | ||||||||||||||||||||
The summary results of operations held for sale presented within results from discontinued operations above were (dollars in thousands): | |||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Asset Held For Sale: | |||||||||||||||||||||
Revenue | $ | 172,606 | $ | 177,549 | $ | 224,842 | |||||||||||||||
Loss from discontinued operations | $ | (66,322 | ) | $ | (81,242 | ) | $ | (33,865 | ) | ||||||||||||
Assets and Liabilities of Discontinued Operations | |||||||||||||||||||||
Assets and liabilities of discontinued operations on our consolidated balance sheets as of December 31, 2014 and 2013 include the following (dollars in thousands): | |||||||||||||||||||||
As of December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Assets: | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 475 | |||||||||||||||||
Receivables, net | 473 | 1,521 | |||||||||||||||||||
Other current assets | — | 1,344 | |||||||||||||||||||
Assets held for sale | 76,846 | 10,879 | |||||||||||||||||||
Total current assets | 77,319 | 14,219 | |||||||||||||||||||
Non-current assets: | |||||||||||||||||||||
Property and equipment, net | — | 2,731 | |||||||||||||||||||
Other assets, net | 975 | 1,507 | |||||||||||||||||||
Assets held for sale | — | 97,470 | |||||||||||||||||||
Total assets of discontinued operations | $ | 78,294 | $ | 115,927 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable and accrued expenses | $ | 579 | $ | 1,370 | |||||||||||||||||
Deferred tuition revenue | — | 1,522 | |||||||||||||||||||
Remaining lease obligations | 14,927 | 13,132 | |||||||||||||||||||
Liabilities held for sale | 50,357 | 19,671 | |||||||||||||||||||
Total current liabilities | 65,863 | 35,695 | |||||||||||||||||||
Non-current liabilities: | |||||||||||||||||||||
Remaining lease obligations | 22,689 | 30,952 | |||||||||||||||||||
Other | 170 | 6,512 | |||||||||||||||||||
Liabilities held for sale | — | 25,732 | |||||||||||||||||||
Total liabilities of discontinued operations | $ | 88,722 | $ | 98,891 | |||||||||||||||||
The major components of assets and liabilities held for sale presented above within discontinued operations were (dollars in thousands): | |||||||||||||||||||||
As of December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Assets: | |||||||||||||||||||||
Receivables, net (1) | $ | 8,303 | $ | 7,487 | |||||||||||||||||
Property and equipment, net (1) | 42,521 | 67,570 | |||||||||||||||||||
Other intangible assets (1) | 18,400 | 27,300 | |||||||||||||||||||
Other assets (1) | 7,622 | 5,992 | |||||||||||||||||||
Total assets held for sale | $ | 76,846 | $ | 108,349 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Accounts payable and accrued expenses | 12,410 | 4,831 | |||||||||||||||||||
Deferred revenue | 17,001 | 14,840 | |||||||||||||||||||
Remaining lease obligations (2) | 2,253 | 2,671 | |||||||||||||||||||
Other liabilities (2) | 18,693 | 23,061 | |||||||||||||||||||
Total liabilities held for sale | $ | 50,357 | $ | 45,403 | |||||||||||||||||
-1 | Property and equipment, net, other intangible assets and a portion of receivables, net and other assets are classified within non-current assets held for sale as of December 31, 2013. | ||||||||||||||||||||
-2 | Other liabilities and a portion of remaining lease obligations are classified within non-current liabilities held for sale as of December 31, 2013. | ||||||||||||||||||||
Remaining Lease Obligations | |||||||||||||||||||||
A number of the campuses that ceased operations or are held for sale have remaining lease obligations that expire over time with the latest expiration in 2022. 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, 2014, 2013 and 2012, 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, 2014 | $ | 46,755 | $ | 14,129 | $ | (26,546 | ) | $ | 5,531 | $ | 39,869 | ||||||||||
For the twelve months ended December 31, 2013 | $ | 49,392 | $ | 11,855 | $ | (14,780 | ) | $ | 288 | $ | 46,755 | ||||||||||
For the twelve months ended December 31, 2012 | $ | 53,877 | $ | 8,689 | $ | (13,174 | ) | $ | — | $ | 49,392 | ||||||||||
-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 8 “Leases” for the future minimum lease payments under operating leases for discontinued operations as of December 31, 2014. | ||||||||||||||||||||
-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. |
Investments
Investments | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Investments | 5. INVESTMENTS | ||||||||||||||||||||
Investments from our continuing operations consist of the following as of December 31, 2014 and 2013 (dollars in thousands): | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Gross Unrealized | |||||||||||||||||||||
Cost | Gain | (Loss) | Fair Value | ||||||||||||||||||
Short-term investments (available for sale): | |||||||||||||||||||||
Municipal bonds | $ | 6,880 | $ | 1 | $ | (56 | ) | $ | 6,825 | ||||||||||||
Non-governmental debt securities | 98,400 | 1 | (271 | ) | 98,130 | ||||||||||||||||
Treasury and federal agencies | 17,928 | 6 | (31 | ) | 17,903 | ||||||||||||||||
Total short-term investments | 123,208 | 8 | (358 | ) | 122,858 | ||||||||||||||||
Long-term investments (available for sale): | |||||||||||||||||||||
Municipal bond | 7,850 | — | (476 | ) | 7,374 | ||||||||||||||||
Total investments (available for sale) | $ | 131,058 | $ | 8 | $ | (834 | ) | $ | 130,232 | ||||||||||||
31-Dec-13 | |||||||||||||||||||||
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 | ||||||||||||
In the table above, unrealized holding losses as of December 31, 2014 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”). | |||||||||||||||||||||
Our long-term investment in a 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, 2014, we have determined this investment is at risk for impairment due to the nature of the liquidity of the market over the past several years. Cumulative unrealized losses as of December 31, 2014 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. | |||||||||||||||||||||
Our non-governmental debt securities primarily consist of corporate bonds and commercial paper. Our treasury and federal agencies primarily consist of U.S. Treasury bills and federal home loan debt securities. We do not intend to sell our investments in these securities and it is not likely that we will be required to sell these investments before recovery of the amortized cost basis. | |||||||||||||||||||||
A schedule of available-for-sale investments segregated by their original stated terms to maturity as of December 31, 2014 and 2013, 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, 2014 | $ | 77,177 | $ | 44,182 | $ | 211 | $ | 8,662 | $ | 130,232 | |||||||||||
Original stated term to maturity of available-for-sale-investments as of December 31, 2013 | $ | 31,592 | $ | — | $ | — | $ | 7,374 | $ | 38,966 | |||||||||||
Realized gains or losses resulting from sales of investments during the years ended December 31, 2014, 2013 and 2012 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, 2014, we held investments that are required to be measured at fair value on a recurring basis. These investments (available-for-sale) consist of non-governmental debt securities, treasury and federal agencies and municipal bonds that are publicly traded and for which market prices are readily available, and our investment in an ARS. Available for sale securities included in Level 2 are estimated based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. During the first quarter of 2014, we reclassified our investments in U.S Treasury bills from Level 1 classification to Level 2. The fair value for these investments was not based on identical assets as of March 31, 2014 which resulted in this reclassification. Our investment in an ARS is categorized as Level 3 and fair value is estimated utilizing a discounted cash flow analysis as of December 31, 2014 which considers, among other items, the collateralization underlying the security investment, the credit worthiness of the counterparty, the time of expected future cash flows, and the expectation of the next time the security is expected to have a successful auction. The auction event for our ARS investment has failed for multiple years. The 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 – Fair Value Measurements at December 31, 2014 and 2013 were as follows (dollars in thousands): | |||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Municipal bonds | $ | — | $ | 6,825 | $ | 7,374 | $ | 14,199 | |||||||||||||
Non-governmental debt securities | — | 98,130 | — | 98,130 | |||||||||||||||||
Treasury and federal agencies | — | 17,903 | — | 17,903 | |||||||||||||||||
Totals | $ | — | $ | 122,858 | $ | 7,374 | $ | 130,232 | |||||||||||||
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 | |||||||||||||
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, 2014 (dollars in thousands): | |||||||||||||||||||||
Balance at December 31, 2013 | $ | 7,374 | |||||||||||||||||||
Unrealized loss | — | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 7,374 | |||||||||||||||||||
See Note 7 “Property and Equipment” and Note 9 “Goodwill and Other Intangible Assets” for further information regarding non-recurring fair value measurements. | |||||||||||||||||||||
Equity Method Investment | |||||||||||||||||||||
Our investment in an equity affiliate, which is recorded within other noncurrent assets on our consolidated balance sheet, represents an international investment in a private company. As of December 31, 2014, our investment in an equity affiliate equated to a 30.7%, or $4.8 million, non-controlling interest in CCKF, a Dublin-based educational technology company providing intelligent adaptive systems to power the delivery of individualized and personalized learning. During the fourth quarter of 2014, we increased our investment in CCKF to 30.7% through a $3.2 million additional investment, thus requiring us to record this investment under the equity method. Prior to our additional investment, we accounted for our investment in CCKF as a cost method investment because we had less than a 20% interest and did not have significant influence. As a result of this increase in investment, we recorded a retroactive adjustment to account for the investment and applied the equity method for all prior periods in which the investment was held in accordance with ASC Topic 323 – Investments – Equity Method and Joint Ventures. Accordingly, we did not adjust prior period financial statements or information as the impact of the change in accounting method was not material to any individual year. The retroactive cumulative adjustment increased retained earnings as of January 1, 2014 by $0.1 million. Additionally, we recorded less than $0.1 million of income related to our proportionate investment in CCKF for the year ended December 31, 2014. |
Student_Receivables
Student Receivables | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Receivables [Abstract] | |||||||||||||||||
Student Receivables | 6. 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, 2014 and December 31, 2013, the amount of non-current student receivables under these programs, net of allowance for doubtful accounts and net of deferred tuition revenue, was $2.9 million and $3.3 million, respectively. | |||||||||||||||||
Student Receivables Valuation Allowance | |||||||||||||||||
Changes in our current and non-current receivables allowance for the years ended December 31, 2014, 2013 and 2012 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, 2014 | $ | 17,570 | $ | 15,850 | $ | (18,903 | ) | $ | 14,517 | ||||||||
For the year ended December 31, 2013 | $ | 21,524 | $ | 20,418 | $ | (24,372 | ) | $ | 17,570 | ||||||||
For the year ended December 31, 2012 | $ | 26,371 | $ | 21,914 | $ | (26,761 | ) | $ | 21,524 | ||||||||
-1 | Charges to expense include an offset for recoveries of amounts previously written off of $5.7 million, $5.1 million and $6.1 million for the years ended December 31, 2014, 2013 and 2012, 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, 2014 | |||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||
Property and Equipment | 7. PROPERTY AND EQUIPMENT | ||||||||||
The cost basis and estimated useful lives of property and equipment for continuing operations as of December 31, 2014 and 2013 are as follows (dollars in thousands): | |||||||||||
December 31, | |||||||||||
2014 | 2013 | Life | |||||||||
Leasehold improvements | $ | 174,026 | $ | 182,260 | Shorter of Life of Lease or Useful Life | ||||||
Computer hardware and software | 121,136 | 134,866 | 3 years | ||||||||
Furniture, fixtures and equipment | 90,671 | 94,493 | 5-10 years | ||||||||
Building and improvements | 8,656 | 8,625 | 15-35 years | ||||||||
Library materials | 3,840 | 4,004 | 10 years | ||||||||
Vehicles | 778 | 819 | 5 years | ||||||||
Construction in progress | 372 | 753 | |||||||||
399,479 | 425,820 | ||||||||||
Less-Accumulated depreciation | (326,396 | ) | (313,725 | ) | |||||||
Total property and equipment, net | $ | 73,083 | $ | 112,095 | |||||||
Depreciation expense for continuing operations for the years ended December 31, 2014, 2013 and 2012, was $35.2 million, $44.0 million and $47.1 million, respectively. Depreciation expense for discontinued operations, included in loss from discontinued operations, was $19.4 million, $27.8 million and $32.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||
Property and equipment was affected by asset impairment charges of approximately $14.7 million for the year ended December 31, 2014 and $7.0 million for the year ended December 31, 2013, as a result of the reduction in carrying values for campuses that are being taught out, decisions made to exit certain leased facilities, and for certain long-lived assets related to ongoing institutions 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. |
Leases
Leases | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||
Leases | 8. 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. | |||||||||||||||||||||
Rent expense, exclusive of related taxes, insurance, and maintenance costs, for continuing operations totaled approximately $48.5 million, $55.0 million and $58.5 million for the years ended December 31, 2014, 2013 and 2012, respectively, and is reflected in educational services and facilities expense in our consolidated statements of loss and comprehensive loss. Rent expense for discontinued operations, which is included in loss from discontinued operations, was approximately $34.5 million, $54.4 million and $51.8 million for the years ended December 31, 2014, 2013 and 2012, 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 and comprehensive loss. 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 exited space related to our continuing operations for the years ended December 31, 2014, 2013 and 2012 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, 2014 | $ | 4,588 | $ | 4,043 | $ | (3,783 | ) | $ | (7 | ) | $ | 4,841 | |||||||||
For the year ended December 31, 2013 | $ | 6,147 | $ | 1,905 | $ | (6,746 | ) | $ | 3,282 | $ | 4,588 | ||||||||||
For the year ended December 31, 2012 | $ | 4,915 | $ | 2,931 | $ | (1,699 | ) | $ | — | $ | 6,147 | ||||||||||
-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, 2014, 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 | ||||||||||||||||||||
2015 | $ | 47,467 | $ | 40,473 | $ | 87,940 | |||||||||||||||
2016 | 41,093 | 36,273 | 77,366 | ||||||||||||||||||
2017 | 36,754 | 29,403 | 66,157 | ||||||||||||||||||
2018 | 35,738 | 22,077 | 57,815 | ||||||||||||||||||
2019 | 27,850 | 13,116 | 40,966 | ||||||||||||||||||
2020 and thereafter | 35,917 | 11,009 | 46,926 | ||||||||||||||||||
Total | $ | 224,819 | $ | 152,351 | $ | 377,170 | |||||||||||||||
Of the remaining $224.8 million of lease payments for continuing operations, $40.3 million relates to our Transitional Group leases and of the remaining $152.4 million lease obligations for discontinued operations, $98.8 million relate to our assets held for sale. See Note 4 “Discontinued Operations” and Note 10 “Restructuring Charges” for further discussion. | |||||||||||||||||||||
As of December 31, 2014, future minimum sublease rental income under operating leases, which will decrease our future minimum lease payments presented above, for continuing and discontinued operations is as follows (dollars in thousands): | |||||||||||||||||||||
Operating Subleases | |||||||||||||||||||||
Continuing | Discontinued | Total | |||||||||||||||||||
Operations | Operations | ||||||||||||||||||||
2015 | $ | 2,376 | $ | 6,202 | $ | 8,578 | |||||||||||||||
2016 | 981 | 6,216 | 7,197 | ||||||||||||||||||
2017 | 796 | 6,206 | 7,002 | ||||||||||||||||||
2018 | 656 | 1,955 | 2,611 | ||||||||||||||||||
2019 | 674 | 1,147 | 1,821 | ||||||||||||||||||
2020 and thereafter | 691 | 376 | 1,067 | ||||||||||||||||||
Total | $ | 6,174 | $ | 22,102 | $ | 28,276 | |||||||||||||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Goodwill and Other Intangible Assets | 9. GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||||||||||||||
Changes in the carrying amount of goodwill for continuing operations during the years ended December 31, 2014 and 2013 are as follows by segment (dollars in thousands): | |||||||||||||||||||||||||
CTU | AIU | Career | Transitional | Total | |||||||||||||||||||||
Colleges | |||||||||||||||||||||||||
Goodwill balance as of December 31, 2012 (1) | $ | 45,938 | $ | 41,418 | $ | — | $ | — | $ | 87,356 | |||||||||||||||
Goodwill impairment | — | — | — | — | — | ||||||||||||||||||||
Goodwill balance as of December 31, 2013 and 2014 | $ | 45,938 | $ | 41,418 | $ | — | $ | — | $ | 87,356 | |||||||||||||||
-1 | Goodwill impairments of approximately $74.6 million were recorded during the year ended December 31, 2012. | ||||||||||||||||||||||||
We performed our annual impairment testing of goodwill as of October 1, 2014 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, 2014. | |||||||||||||||||||||||||
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, 2014 and 2013, the cost basis, accumulated amortization and net book value of intangible assets for continuing operations are as follows (dollars in thousands): | |||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Cost | Accumulated | Net Book | Cost | Accumulated | Net Book | ||||||||||||||||||||
Amortization | Value | Amortization | Value | ||||||||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||||||||||
Courseware | $ | 9,656 | $ | (9,656 | ) | $ | — | $ | 9,656 | $ | (9,091 | ) | $ | 565 | |||||||||||
Trade name | 438 | (219 | ) | 219 | — | — | — | ||||||||||||||||||
Other | 96 | (96 | ) | — | 96 | (77 | ) | 19 | |||||||||||||||||
Amortizable intangible assets, net | $ | 10,190 | $ | (9,971 | ) | $ | 219 | $ | 9,752 | $ | (9,168 | ) | $ | 584 | |||||||||||
Non-amortizable intangible assets: | |||||||||||||||||||||||||
Accreditation, licensing, and Title IV Program participation rights | $ | 1,000 | $ | 1,000 | |||||||||||||||||||||
Trade names | 8,600 | 11,233 | |||||||||||||||||||||||
Non-amortizable intangible assets | 9,600 | 12,233 | |||||||||||||||||||||||
Intangible assets, net | $ | 9,819 | $ | 12,817 | |||||||||||||||||||||
Amortizable intangible assets are amortized on a straight-line basis over their estimated useful lives; remaining useful lives for these assets are one year as of December 31, 2014. During the first quarter of 2014, we made the decision to simplify our structure and began to consolidate many of our institutions under one brand. Accordingly, we determined that the trade name associated with Missouri College should no longer be classified as indefinite-lived, and was reclassified to definite-lived. We assigned a remaining useful life of 24 months based upon the timing of when the trade name for this institution was expected to change. Amortization expense from continuing operations was $0.8 million, $1.2 million and $1.3 million, for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
As of December 31, 2014, 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 2014, in conjunction with our quarterly review processes, we concluded that certain indicators, including variation from previously projected revenue results, existed to suggest the Sanford-Brown trade name was at risk of its carrying value exceeding its respective fair value. We calculated the fair value of our trade name in accordance with FASB ASC Topic 820 – Fair Value Measurement, by utilizing the relief from royalty method under the income approach. The determination of estimated fair value for trade name requires significant estimates and assumptions, and as such is categorized as Level 3 per ASC Topic 820. The assumptions utilized in determining the fair value of the Sanford-Brown trade name included utilizing projected revenue growth rates, a discount rate of approximating 25%, royalty rate of 0.5% and a terminal growth rate of approximately 2%. As a result of the assessment, we recorded a $0.7 million trade name impairment charge for Sanford-Brown. This impairment was recorded in the fourth quarter of 2014 and is in addition to impairment of $1.5 million recorded during the third quarter of 2014. The value of the Sanford-Brown trade names is $1.7 million as of December 31, 2014. | |||||||||||||||||||||||||
Additionally, we performed our annual impairment testing of indefinite-lived intangible asset balances as of October 1, 2014 and concluded that no indicators existed that would suggest that it is more likely than not that the remaining assets would be 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, a 100 basis point change in the discount rate utilized in the calculation would result in a change in the fair value of approximately $0.1 million. We continue to monitor the operating results and revenue projections related to our trade name 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, 2014 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||
Restructuring Charges | 10. RESTRUCTURING CHARGES | ||||||||||||||||||||
During the past several years, 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 Colleges segment and our corporate functions as we continue to align our overall management structure. The remaining Transitional Group campuses that are in the process of teaching out as of December 31, 2014 will cease operations at various dates through 2017. See Item 1, “Business,” for a listing of campuses that comprise our Transitional Group 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, 2014 and 2013 (dollars in thousands): | |||||||||||||||||||||
Balance, | Severance and | Payments | Non-cash | Balance, End | |||||||||||||||||
Beginning | related | adjustments (2) | of Period | ||||||||||||||||||
of Period | charges (1) | ||||||||||||||||||||
For the year ended December 31, 2014 | $ | 3,243 | $ | 3,524 | $ | (2,885 | ) | $ | (1,181 | ) | $ | 2,701 | |||||||||
For the year ended December 31, 2013 | $ | 5,574 | $ | 5,084 | $ | (6,665 | ) | $ | (750 | ) | $ | 3,243 | |||||||||
-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, 2014 and 2013 by reporting segment is as follows (dollars in thousands): | |||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
CTU | $ | 544 | $ | — | |||||||||||||||||
AIU | 103 | 213 | |||||||||||||||||||
Total University Group | 647 | 213 | |||||||||||||||||||
Career Colleges | 1,093 | 1,351 | |||||||||||||||||||
Corporate and Other | 1,087 | 2,088 | |||||||||||||||||||
Subtotal | 2,827 | 3,652 | |||||||||||||||||||
Transitional Group | 697 | 1,432 | |||||||||||||||||||
Total | $ | 3,524 | $ | 5,084 | |||||||||||||||||
The current portion of the accrual for severance and related charges was $1.7 million as of December 31, 2014 and 2013, which is recorded within current accrued expenses – payroll and related benefits; the long-term portion of $1.0 million and $1.5 million is recorded within other non-current liabilities on our consolidated balance sheets as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||
In addition, as of December 31, 2014, we have an accrual of approximately $0.7 million related to retention bonuses that have been offered to certain employees. These amounts are recorded ratably over the period the employees are retained; $0.9 million was recorded during the year ended December 31, 2014. | |||||||||||||||||||||
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 $12.0 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 8 “Leases” for details regarding our gross remaining lease obligations for our Transitional Group. |
Credit_Agreement
Credit Agreement | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Credit Agreement | 11. CREDIT AGREEMENT | ||||||||
On October 31, 2014, the Company; its wholly-owned subsidiary, CEC Educational Services, LLC (“CEC-ES”); and the subsidiary guarantors thereunder entered into a First Amendment (the “First Amendment”) to its Amended and Restated Credit Agreement dated as of December 30, 2013 (as amended, the “Credit Agreement”) with BMO Harris Bank N.A. (“BMO Harris”), 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, to among other things, increase the revolving credit facility to $120.0 million. The revolving credit facility under the Credit Agreement is scheduled to mature on June 30, 2016. The Credit Agreement requires that fees and interest are payable monthly and quarterly in arrears, respectively, and principal is payable at maturity. Any borrowings bear interest at fluctuating interest rates based on either the base rate or the London Interbank Offered Rate (LIBOR), 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 a three month average balance of cash, cash equivalents and permitted investments in our domestic accounts of at least $190.0 million at all times, subject to adjustment for certain cash payments made by the Company in connection with buyouts of leases for campus locations and other facilities. The loans and letter of credit obligations under the Credit Agreement are secured by 100% cash collateral. The agreement also contains 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. | |||||||||
We have $10.0 million outstanding as of December 31, 2014, pursuant to the revolving credit facility under the Credit Agreement. The full amount borrowed as of December 31, 2014 is classified as short-term borrowings on our consolidated balance sheet. | |||||||||
Selected details of our credit agreements as of and for the years ended December 31, 2014 and 2013 were as follows (dollars in thousands): | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Credit Agreement: | |||||||||
Credit facility remaining availability | $ | 98,437 | $ | 70,000 | |||||
Credit facility borrowings | $ | 10,000 | $ | — | |||||
Outstanding letters of credit (1)(2) | $ | 11,563 | $ | 12,318 | |||||
Availability of additional letters of credit (3) | $ | 8,437 | $ | 7,682 | |||||
Weighted average daily revolving credit borrowings for the year ended | $ | 9 | $ | 40 | |||||
Weighted average annual interest rate | 1.67 | % | 5.25 | % | |||||
Commitment fee rate | 0.25 | % | 0.25 | % | |||||
Letter of credit fee rate | 0.75 | % | 0.75 | % | |||||
-1 | Represents letters of credit which are fully collateralized with $11.6 million and $12.6 million of restricted cash as of December 31, 2014 and 2013, respectively. | ||||||||
-2 | As of December 31, 2014, outstanding letters of credit not related to the Credit Agreement totaled $1.3 million, which amount is fully collateralized with restricted cash, which is in addition to the $11.6 million reflected above. | ||||||||
-3 | The letters of credit sublimit of $20.0 million under the Credit Agreement is part of, not in addition to, the $120.0 million aggregate commitments. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 12. CONTINGENCIES |
An accrual for estimated legal fees and settlements of $2.3 million and $20.3 million at December 31, 2014 and December 31, 2013, respectively, is presented within other current liabilities on our consolidated balance sheets. This decrease was primarily a result of payment of $17.0 million for a legal settlement during 2014 which was included in our accrual balance as of December 31, 2013. | |
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. | |
Student Litigation | |
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 class purports to consist of persons who executed Parent Plus loans or co-signed loans for students who attended CCA at any time between January 1, 2003 and December 31, 2008. 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. A hearing on the motions was conducted on March 14, 2014. Thereafter, the Court issued two separate orders granting the motion to strike the class allegations and the motion to dismiss without leave to amend. Plaintiffs filed a motion seeking leave to file a third amended complaint and/or for reconsideration of the Court’s orders. On May 9, 2014, the Court denied plaintiffs’ motion to reconsider its order striking the class allegations and granted plaintiffs leave to file a third amended complaint as to some, but not all, of plaintiffs’ claims. On May 15, 2014, plaintiffs appealed the Court’s ruling with respect to the motion to strike the class allegations. The Court has stayed the case pending a ruling on the appeal. | |
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. (“WCI”) 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 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. On August 6, 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. The oral argument on the appeal was heard on May 9, 2014 and we are awaiting the Court’s decision. 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. | |
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 remained pending against defendants was 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. On September 29, 2014, the Court granted our motion for summary judgment and entered judgment in our favor. On October 2, 2014, relators filed a notice of appeal. | |
Because of the many questions of fact and law that may arise on appeal, 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 would receive a portion of the federal government’s recovery. An 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 the relator’s alleged claims. On March 17, 2014, the Court granted this motion in part, limiting the timeframe and geographical scope of the relator’s claims. On June 13, 2014, the Court granted the remaining Company defendants’ motion for summary judgment and entered judgment in their favor. On July 9, 2014, relator filed a notice of appeal. The oral argument on the appeal was heard on January 8, 2015, and we are awaiting the Court’s decision. | |
Because of the many questions of fact and law that may arise on appeal, 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. Accordingly, we have not recognized any liability associated with this action. | |
United States of America, ex rel. Ann Marie Rega v. Career Education Corporation, et al. On May 16, 2014, Relator Ann Marie Rega, a former employee of Sanford-Brown Iselin, filed an action in the U.S. District Court for the District of New Jersey against the Company and almost all of the Company’s individual schools on behalf of herself and the federal government. She alleges claims under 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. Relator failed to comply with the statutory requirement that all False Claims Act cases be filed under seal. On June 16, 2014, defendants filed a motion to dismiss the complaint with prejudice as to relator for failure to file her complaint under seal in accordance with the requirements of the False Claims Act. The motion is fully briefed and the parties are awaiting a ruling from the Court. | |
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 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. CEC has answered the complaint, and the parties have commenced fact discovery as to the issue of liability. The Court has ordered the parties to complete fact discovery as to that issue by January 30, 2015 and to file summary judgment motions by March 24, 2015. | |
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. | |
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 | |
The Attorney General of Connecticut is serving as the point of contact for inquiries received from the attorneys general of the following 16 states: Arkansas, Arizona, Connecticut, Idaho, Iowa, Kentucky, Missouri, Nebraska, North Carolina, Oregon, Pennsylvania, Washington (January 24, 2014); Illinois (December 9, 2011); Tennessee (February 7, 2014), Hawaii (May 28, 2014 ) and New Mexico (May 2014) (these 16 attorneys general are collectively referred to as the “Multi-State AGs”). In addition, the Company has received inquiries from the attorneys general of Florida (November 5, 2010), Massachusetts (September 27, 2012), Colorado (August 27, 2013) and Minnesota (September 18, 2014). 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. In this regard, over the past several months the Company has participated in several meetings with representatives of the Multi-State AGs about the Company’s business and to engage in a dialogue towards a resolution of these inquiries. | |
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. | |
Regulatory Matters | |
ED Inquiry and HCM1 Status | |
In December 2011, the U.S. Department of Education (“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 or reporting of placement rates or other disclosures to students or prospective students or finds any other basis in the materials we are providing, ED may revoke, limit, suspend, delay or deny the institution’s or all of the Company’s institutions Title IV eligibility, or impose fines. In addition, a majority of the Company’s institutions are currently in the process of seeking recertification from ED to participate in Title IV Programs. We cannot predict whether, or to what extent, ED’s inquiry might impact this recertification process. | |
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, impose some period of delay in the Company’s receipt of Title IV funds 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, 2014, the Company has a $0.8 million reserve recorded related to this matter. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | 13. INCOME TAXES | ||||||||||||
The components of pretax loss from continuing operations for the years ended December 31, 2014, 2013 and 2012 are as follows (dollars in thousands): | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S | $ | (72,504 | ) | $ | (88,103 | ) | $ | (64,913 | ) | ||||
Foreign | — | 522 | (3,876 | ) | |||||||||
Total | $ | (72,504 | ) | $ | (87,581 | ) | $ | (68,789 | ) | ||||
The provision for (benefit from) income taxes from continuing operations for the years ended December 31, 2014, 2013 and 2012 consists of the following (dollars in thousands): | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current (benefit) provision | |||||||||||||
Federal | $ | (10,168 | ) | $ | 31,010 | $ | 18,849 | ||||||
State and local | (346 | ) | 677 | 4,011 | |||||||||
Total current (benefit) provision | (10,514 | ) | 31,687 | 22,860 | |||||||||
Deferred provision (benefit) | |||||||||||||
Federal | 13,445 | 1,023 | (25,982 | ) | |||||||||
State and local | 805 | (2,566 | ) | (826 | ) | ||||||||
Total deferred provision (benefit) | 14,250 | (1,543 | ) | (26,808 | ) | ||||||||
Total provision for (benefit from) income taxes | $ | 3,736 | $ | 30,144 | $ | (3,948 | ) | ||||||
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, 2014, 2013 and 2012 is as follows (dollars in thousands): | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Statutory U.S. federal income tax rate | (35.0 | )% | (35.0 | )% | (35.0 | )% | |||||||
State and local income taxes | (4.3 | ) | (4.0 | ) | (4.1 | ) | |||||||
Nondeductible goodwill | 1.1 | 3.5 | 39.6 | ||||||||||
Valuation allowance | 39 | 86.2 | 2.4 | ||||||||||
Federal Audit Settlement | 4.5 | — | — | ||||||||||
Tax credits | — | (6.2 | ) | — | |||||||||
Other | (0.1 | ) | (10.1 | ) | (8.6 | ) | |||||||
Effective income tax rate | 5.2 | % | 34.4 | % | (5.7 | )% | |||||||
The effective tax rates for the years ended December 31, 2014 and 2013 decreased by 39.0% and 86.2%, respectively, due to valuation allowances of $71.8 million and $80.5 million, respectively. The 2014 effective tax rate was negatively impacted by the settlement of a federal income tax audit covering the years ended December 31, 2008 through December 31, 2012. The 2013 effective tax rate benefitted 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 13.2%. 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 39.6%. 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 6.8%. | |||||||||||||
A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits as of December 31, 2014, 2013 and 2012 is as follows (dollars in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Gross unrecognized tax benefits, beginning of the year | $ | 13,900 | $ | 24,479 | $ | 29,892 | |||||||
Additions for tax positions of prior years | 129 | 3,582 | — | ||||||||||
Reductions for tax positions of prior years | — | — | (3,548 | ) | |||||||||
Additions for tax positions related to the current year | 931 | 813 | 958 | ||||||||||
Reductions due to settlements | (4,064 | ) | (13,707 | ) | (2,531 | ) | |||||||
Reductions due to lapse of applicable statute of limitations | (1,578 | ) | (1,267 | ) | (292 | ) | |||||||
Subtotal | 9,318 | 13,900 | 24,479 | ||||||||||
Interest and penalties | 2,820 | 3,107 | 3,794 | ||||||||||
Total gross unrecognized tax benefits, end of the year | $ | 12,138 | $ | 17,007 | $ | 28,273 | |||||||
The total amount of net unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate in future periods was $8.0 million and $12.7 million for the years ended December 31, 2014 and 2013, respectively. At December 31, 2014, 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 $1.4 million and $7.9 million, respectively. We record interest and penalties related to unrecognized tax benefits within provision for (benefit from) income taxes on our consolidated statements of loss and comprehensive loss. The total amount of accrued interest and penalties resulting from such unrecognized tax benefits was $2.8 million and $3.1 million as of the years ended December 31, 2014 and 2013, respectively. For the years ended December 31, 2014, 2013, and 2012, we recognized less than $0.1 million of benefit, $0.7 million of benefit and $0.5 million of benefit, 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 and local jurisdictions. CEC and its subsidiaries are routinely examined by tax authorities in these jurisdictions. As of December 31, 2014, CEC had been examined by the Internal Revenue Service through our tax year ending December 31, 2012. In addition, a number of state and local examinations are currently ongoing. It is possible that these state examinations may be resolved within twelve months. Due to the potential for resolution of 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 $2.0 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, 2014 and 2013 are as follows (dollars in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred income tax assets: | |||||||||||||
Accrued occupancy | $ | 1,728 | $ | 1,633 | |||||||||
Deferred rent obligations | 9,248 | 10,095 | |||||||||||
Foreign tax credits | 32,998 | 12,026 | |||||||||||
Valuation allowance foreign tax credits | (6,264 | ) | (3,116 | ) | |||||||||
Compensation and employee benefits | 14,225 | 17,947 | |||||||||||
Tax net operating loss carry forwards | 34,067 | 7,220 | |||||||||||
Valuation allowance | (34,067 | ) | (7,220 | ) | |||||||||
Allowance for doubtful accounts | 2,269 | 1,201 | |||||||||||
Covenant not-to-compete | 37 | 70 | |||||||||||
Accrued settlements and legal | 828 | 1,904 | |||||||||||
Deferred compensation | 1,777 | 498 | |||||||||||
Accrued restructuring and severance | 1,070 | 2,057 | |||||||||||
Equity method for investments | 19 | — | |||||||||||
General business tax credits | 450 | — | |||||||||||
Depreciation and amortization | 142 | — | |||||||||||
Other | 822 | 1,575 | |||||||||||
Valuation allowance deferred tax assets | (55,995 | ) | (8,250 | ) | |||||||||
Total deferred income tax assets | 3,354 | 37,640 | |||||||||||
Deferred income tax liabilities: | |||||||||||||
Depreciation and amortization | — | 19,387 | |||||||||||
Other | 3,354 | 4,003 | |||||||||||
Total deferred income tax liabilities | 3,354 | 23,390 | |||||||||||
Net deferred income tax assets | $ | — | $ | 14,250 | |||||||||
Net deferred income tax assets for continuing operations as of December 31, 2014 and 2013 are reflected in the consolidated balance sheets as follows (dollars in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Current deferred income tax assets, net | $ | — | $ | 3,606 | |||||||||
Non-current deferred income tax assets, net | — | 10,644 | |||||||||||
Net deferred income tax assets | $ | — | $ | 14,250 | |||||||||
As of December 31, 2014, we have net operating loss carry forwards, for federal and state income tax purposes, of approximately $63.9 million and $247.9 million, respectively. These net operating loss carry forwards are available to offset various future taxable income, if any, and expire between 2015 and 2034. Additionally, we have federal and state net operating loss carrybacks approximating $97.5 million and $3.5 million, respectively. We intend to apply these carrybacks against prior year’s taxable income to generate a refund of federal and state tax of approximately $14.1 million and $0.2 million, respectively. The federal net operating loss carryback will also increase the overall domestic loss account balance by approximately $52.3 million and the foreign tax credit carryforward available to reduce the tax attributable to future domestic income by approximately $18.3 million. | |||||||||||||
In assessing the continued 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, 2014. 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, 2014, we continued to record a valuation allowance against our deferred tax assets and increased our valuation allowance by $67.5 million, bringing our cumulative valuation allowance to $150.4 million as of December 31, 2014. Valuation allowance expense of $80.5 million was recorded during the year ended December 31, 2013 within loss from continuing operations on our statement of loss and comprehensive loss, which increased the cumulative valuation allowance to $82.9 million. For the year ended December 31, 2014, gross valuation allowance expense of $71.8 million is reduced by $4.3 million for various deferred tax adjustments that would otherwise impact Stockholder’s Equity. Our total valuation allowance of $150.4 million recorded within our consolidated balance sheet as of December 31, 2014 consists of $96.3 million in continuing operations and $54.1 million from discontinued operations. Included in the valuation allowance total for continuing operations are $6.3 million and $34.1 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 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. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Share-Based Compensation | 14. 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, 2014, there were approximately 6.1 million shares of common stock available for future share-based awards under the 2008 Plan, which is net of 3.8 million shares issuable upon exercise of outstanding options. This amount does not reflect 0.6 million and 0.1 million shares underlying restricted stock units and deferred stock units, respectively, as of December 31, 2014, which will be settled in shares of our common stock if the vesting conditions are met 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. The vesting of all types of equity awards (stock options, stock appreciation rights, restricted stock awards and restricted stock units) is subject to possible acceleration in certain circumstances. Generally, if a plan participant terminates employment for any reason other than by death or disability during the vesting period, the right to unvested equity awards is forfeited. | |||||||||||||||||||||
As of December 31, 2014, we estimate that compensation expense of approximately $5.0 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 and deferred 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 and stock appreciation rights 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-fourth on the grant date and one-fourth for each of the first through third anniversary of the grant date. Grants of stock options are generally only subject to the service conditions discussed previously. | |||||||||||||||||||||
Stock option activity during the years ended December 31, 2014, 2013 and 2012, 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, 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 | ||||||||||||||||||
Granted | 746,318 | 6.89 | |||||||||||||||||||
Exercised | (225,000 | ) | 2.72 | $ | 721 | ||||||||||||||||
Forfeited | (299,577 | ) | 4.94 | ||||||||||||||||||
Cancelled | (340,212 | ) | 39.49 | ||||||||||||||||||
Outstanding as of December 31, 2014 | 3,781,964 | $ | 12.88 | 5.8 years | $ | 6,118 | |||||||||||||||
Exercisable as of December 31, 2014 | 2,138,086 | $ | 18.87 | 4.0 years | $ | 2,372 | |||||||||||||||
The following table summarizes information with respect to all outstanding and exercisable stock options under all of our plans as of December 31, 2014: | |||||||||||||||||||||
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 | 8.27 | 161,157 | $ | 2.2 | ||||||||||||||
$ 2.62 $ 2.65 | 96,729 | $ | 2.65 | 8.61 | 26,403 | $ | 2.64 | ||||||||||||||
$ 2.72 $ 2.72 | 403,504 | $ | 2.72 | 4.88 | 269,626 | $ | 2.72 | ||||||||||||||
$ 2.82 $ 6.81 | 628,327 | $ | 5.49 | 8.72 | 148,344 | $ | 4.62 | ||||||||||||||
$ 7.33 $ 8.63 | 590,500 | $ | 7.98 | 6.03 | 132,933 | $ | 8.63 | ||||||||||||||
$13.32 $22.04 | 503,112 | $ | 19.12 | 3.95 | 484,459 | $ | 19.02 | ||||||||||||||
$22.13 $30.67 | 413,564 | $ | 27.57 | 4.98 | 413,564 | $ | 27.57 | ||||||||||||||
$30.80 $34.70 | 454,350 | $ | 33.18 | 1.27 | 454,350 | $ | 33.18 | ||||||||||||||
$34.86 $37.76 | 46,750 | $ | 35.3 | 0.7 | 46,750 | $ | 35.3 | ||||||||||||||
$38.28 $38.28 | 500 | $ | 38.28 | 0.51 | 500 | $ | 38.28 | ||||||||||||||
3,781,964 | $ | 12.88 | 5.77 | 2,138,086 | $ | 18.87 | |||||||||||||||
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 25% per year over a four-year service period beginning on the date of grant. Certain awards to plan participants referred to as “performance-based” 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, 2014, 2013 and 2012: | |||||||||||||||||||||
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, 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 | ||||||||||||||
Granted | — | — | 318,940 | 6.57 | 318,940 | ||||||||||||||||
Vested | (136,133 | ) | 22.94 | (135,645 | ) | 8.61 | (271,778 | ) | |||||||||||||
Forfeited | (42,677 | ) | 20.87 | (165,776 | ) | 7.9 | (208,453 | ) | |||||||||||||
Outstanding as of December 31, 2014 | 42,752 | $ | 21.63 | 556,140 | $ | 7.35 | 598,892 | ||||||||||||||
Deferred Stock Units to be Settled in Stock. In the second quarter of 2014 and for the first time since inception of any of our plans, we granted deferred stock units to our non-employee directors. The deferred stock units are to be settled in shares of stock and generally vest one-third per year over a three-year service period beginning on the date of grant. Settlement of the deferred stock units and delivery of the underlying shares of stock to the plan participants does not occur until he or she ceases to provide services to the Company in the capacity of a director, employee or consultant. | |||||||||||||||||||||
The following table summarizes information with respect to all deferred stock units during the year to date ended December 31, 2014: | |||||||||||||||||||||
Deferred Stock | Weighted Average | ||||||||||||||||||||
Units to be Settled | Grant-Date Fair | ||||||||||||||||||||
in Shares | Value Per Unit | ||||||||||||||||||||
Outstanding as of December 31, 2013 | — | $ | — | ||||||||||||||||||
Granted | 116,952 | 4.39 | |||||||||||||||||||
Vested | — | — | |||||||||||||||||||
Forfeited | — | — | |||||||||||||||||||
Outstanding as of December 31, 2014 | 116,952 | $ | 4.39 | ||||||||||||||||||
Restricted Stock Units to be Settled in Cash. Restricted stock units to be settled in cash generally become fully vested 25% per year over a four-year service period beginning on the date of grant. 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 and comprehensive loss 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. | |||||||||||||||||||||
The following table summarizes information with respect to all cash-settled restricted stock units for the years ended December 31, 2014 and 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 | ||||||||||||||||||||
Granted | 981,136 | ||||||||||||||||||||
Vested | (755,656 | ) | |||||||||||||||||||
Forfeited | (671,940 | ) | |||||||||||||||||||
Outstanding as of December 31, 2014 | 1,842,455 | ||||||||||||||||||||
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 and recognized $4.8 million of expense for the year to date 2014 for all cash-settled restricted stock units. | |||||||||||||||||||||
Stock-Based Compensation Expense. Total stock-based compensation expense for the years ended December 31, 2014, 2013 and 2012 for all types of awards was as follows (dollars in thousands): | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
Award Type | 2014 | 2013 | 2012 | ||||||||||||||||||
Stock Options | $ | 1,372 | $ | 2,308 | $ | 2,907 | |||||||||||||||
Restricted stock or units settled in stock | 2,865 | 4,339 | 6,637 | ||||||||||||||||||
Restricted stock units settled in cash | 4,514 | 3,452 | — | ||||||||||||||||||
Stock appreciation rights settled in cash | 295 | 149 | — | ||||||||||||||||||
Total stock-based compensation expense | $ | 9,046 | $ | 10,248 | $ | 9,544 | |||||||||||||||
Performance Unit Awards. Performance unit awards granted during 2013 and 2014 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 and 2016, respectively. These awards are recorded as liabilities as the expense is recognized and fair value for these awards is revalued at each period end date with changes in fair value recorded in our statement of loss and comprehensive loss in the current period. We recorded $3.5 million and $1.1 million for expense related to these awards for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||||||
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 and comprehensive loss 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, 2014, 2013 and 2012 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, 2014, 2013 and 2012, and assumptions used to value stock options are as follows: | |||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Dividend yield | — | — | — | ||||||||||||||||||
Risk-free interest rate | 1.4 | % | 1.1 | % | 0.6 | % | |||||||||||||||
Weighted average volatility | 73 | % | 64.6 | % | 68.4 | % | |||||||||||||||
Expected life (in years) | 4.3 | 5.6 | 5.2 | ||||||||||||||||||
Weighted average grant date fair value per share of options granted | $ | 3.89 | $ | 1.47 | $ | 4.1 | |||||||||||||||
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, 2014, 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 72.9% to 74.0%. | |||||||||||||||||||||
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. |
Weighted_Average_Common_Shares
Weighted Average Common Shares | 12 Months Ended |
Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |
Weighted Average Common Shares | 15. WEIGHTED AVERAGE COMMON SHARES |
Basic net loss per share is calculated by dividing net loss by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net loss 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, 2014, 2013 and 2012, 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, 2014, 2013 and 2012. | |
In addition to the common stock issued upon the exercise of employee stock options, the granting of restricted stock and the vesting of restricted stock units to be settled in stock, we issued approximately 0.1 million, 0.4 million and 0.2 million shares for the years ended December 31, 2014, 2013 and 2012, 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, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 16. 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 2014 and 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 year ended December 31, 2012, 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, 2014, 2013 and 2012, we recorded expense for continuing and discontinued operations under this plan of approximately $3.8 million, $4.6 million, and $11.9 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, 2014, 3.1 million shares of common stock have been issued under the plan. | |
Share-based compensation expense recorded during the years ended December 31, 2014, 2013 and 2012, in connection with the compensatory elements of our employee stock purchase plan, was not significant. |
Segment_Reporting
Segment Reporting | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Segment Reporting | 17. 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 2014, we made the decision to commit to a plan of sale of our Le Cordon Bleu Culinary Arts institutions. As we anticipate the sale of these assets to be completed within one year, we have recorded the assets and liabilities related to these institutions within current assets and liabilities of discontinued operations as of December 31, 2014. See Note 4 “Discontinued Operations” to our consolidated financial statements. Accordingly, the results of operations for the Culinary Arts segment are now reported within discontinued operations. | |||||||||||||||||||||
During 2014, we announced the teach-out of three additional campuses within our Career Colleges segment. These campuses are now included within our Transitional Group segment. In addition, during 2014 we completed the teach-out of 21 campuses, and accordingly, the results of operations for these campuses are now reported within discontinued operations. | |||||||||||||||||||||
All prior period results have been recast to reflect our reporting segments on a comparable basis. Our four reporting segments are described below. | |||||||||||||||||||||
University Group: | |||||||||||||||||||||
Colorado Technical University (CTU) places a strong focus on providing industry-relevant degree programs to meet the needs of our students for employment and of employers for a well-educated workforce and collectively offers academic programs in the career-oriented disciplines of business studies, information systems and technologies, criminal justice, computer science and engineering, and health sciences. Students pursue their degrees through local campuses, fully-online programs through CTU Online and blended formats, which combine campus-based and online education. As of December 31, 2014, students enrolled at CTU represented approximately 49% of our total enrollments. Approximately 90% of CTU’s enrollments are fully online. | |||||||||||||||||||||
American InterContinental University (AIU) focuses on helping busy professionals get the degree they need to move forward in their career as efficiently as possible and collectively offers academic programs in the career-oriented disciplines of business studies, information technologies, criminal justice and design technologies. Students pursue their degrees through local campuses, fully-online programs through AIU Online and blended formats, which combine campus-based and online education. As of December 31, 2014, students enrolled at AIU represented approximately 28% of our total enrollments. Approximately 90% of AIU’s enrollments are fully online. | |||||||||||||||||||||
Career Colleges Group includes Briarcliffe College, Brooks Institute, Harrington College of Design, Missouri College and our Sanford-Brown institutions. The Career Colleges group collectively offers academic programs primarily in the career-oriented discipline of health education complemented by certain programs in business studies and information technology, as well as visual communications, fashion design, photography, interior design, graphic design and video production. Students pursue their degrees through local campuses, fully-online programs through SBC Online and blended formats, which combine campus-based and online education. As of December 31, 2014, students enrolled within our Career Colleges represented approximately 21% of our total enrollments. Approximately 15% of Career College’s enrollments are fully online. | |||||||||||||||||||||
Transitional Group includes our campuses that are currently being taught out. See the “Campus Locations” table in Item 1, “Business,” of this Annual Report on Form 10-K for a listing of campuses that comprise this segment. 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 12 remaining campuses within the Transitional Group as of December 31, 2014 will complete their teach-outs on varying dates through 2017. | |||||||||||||||||||||
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 (9) | ||||||||||||||||||
Income | Amortization | ||||||||||||||||||||
For the Year Ended December 31, 2014 (1) | |||||||||||||||||||||
CTU | $ | 336,573 | $ | 69,492 | $ | 2,627 | $ | 628 | $ | 73,458 | |||||||||||
AIU | 198,896 | (9,412 | ) | 2,329 | 916 | 51,755 | |||||||||||||||
Total University Group | 535,469 | 60,080 | 4,956 | 1,544 | 125,213 | ||||||||||||||||
Career Colleges (2) | 172,833 | (73,753 | ) | 9,227 | 4,620 | 29,365 | |||||||||||||||
Corporate and Other (3) | 230 | (21,169 | ) | 17,455 | 4,545 | 332,672 | |||||||||||||||
Subtotal | 708,532 | (34,842 | ) | 31,638 | 10,709 | 487,250 | |||||||||||||||
Transitional Group | 32,826 | (37,874 | ) | 4,381 | 155 | 7,990 | |||||||||||||||
Discontinued Operations | 2,292 | 78,294 | |||||||||||||||||||
Total | $ | 741,358 | $ | (72,716 | ) | $ | 36,019 | $ | 13,156 | $ | 573,534 | ||||||||||
For the Year Ended December 31, 2013 (1) | |||||||||||||||||||||
CTU | $ | 346,086 | $ | 65,078 | $ | 2,828 | $ | 158 | $ | 75,275 | |||||||||||
AIU | 231,606 | (5,556 | ) | 3,069 | 122 | 54,426 | |||||||||||||||
Total University Group | 577,692 | 59,522 | 5,897 | 280 | 129,701 | ||||||||||||||||
Career Colleges (4) | 196,990 | (68,652 | ) | 10,963 | 5,905 | 53,791 | |||||||||||||||
Corporate and Other | — | (33,600 | ) | 22,574 | 6,272 | 491,821 | |||||||||||||||
Subtotal | 774,682 | (42,730 | ) | 39,434 | 12,457 | 675,313 | |||||||||||||||
Transitional Group (5) | 64,999 | (38,111 | ) | 5,721 | 346 | 13,805 | |||||||||||||||
Discontinued Operations | 6,833 | 115,927 | |||||||||||||||||||
Total | $ | 839,681 | $ | (80,841 | ) | $ | 45,155 | $ | 19,636 | $ | 805,045 | ||||||||||
For the Year Ended December 31, 2012 (1) | |||||||||||||||||||||
CTU | $ | 360,369 | $ | 56,155 | $ | 3,321 | $ | 1,401 | |||||||||||||
AIU | 304,208 | 20,896 | 4,249 | 1,746 | |||||||||||||||||
Total University Group | 664,577 | 77,051 | 7,570 | 3,147 | |||||||||||||||||
Career Colleges (6) | 243,186 | (84,663 | ) | 11,468 | 4,431 | ||||||||||||||||
Corporate and Other (7) | 55 | (7,699 | ) | 22,639 | 16,481 | ||||||||||||||||
Subtotal | 907,818 | (15,311 | ) | 41,677 | 24,059 | ||||||||||||||||
Transitional Group (8) | 112,085 | (54,379 | ) | 6,675 | 2,412 | ||||||||||||||||
Discontinued Operations | 11,473 | ||||||||||||||||||||
Total | $ | 1,019,903 | $ | (69,690 | ) | $ | 48,352 | $ | 37,944 | ||||||||||||
-1 | The statement of loss and comprehensive loss balances including revenue, operating loss 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, 2014, segment results included: | |||||||||||||||||||||
-2 | Career Colleges: $14.5 million related to long-lived asset impairment and a $2.2 million trade name impairment charge. | ||||||||||||||||||||
-3 | Corporate and Other: $8.6 million of income related to an insurance recovery. | ||||||||||||||||||||
For the year ended December 31, 2013, segment results included: | |||||||||||||||||||||
-4 | Career Colleges: $4.7 million of trade name and asset impairment charges and $8.8 million related to the settlement of a legal matter. | ||||||||||||||||||||
-5 | Transitional Group: $3.1 million in asset impairment charges and $1.7 million related to the settlement of legal matter. | ||||||||||||||||||||
For the year ended December 31, 2012, segment results included: | |||||||||||||||||||||
-6 | Career Colleges: $53.0 million of goodwill and trade name impairment charges. | ||||||||||||||||||||
-7 | Corporate and Other: A $19.0 million insurance recovery related to the settlement of claims under certain insurance policies. | ||||||||||||||||||||
-8 | Transitional Group: $32.6 million of goodwill, trade name and asset impairment charges. | ||||||||||||||||||||
-9 | Total assets do not include intercompany receivable or payable activity between institutions and corporate and investments in subsidiaries. |
Quarterly_Financial_Summary_Un
Quarterly Financial Summary (Unaudited) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Quarterly Financial Summary (Unaudited) | 18. QUARTERLY FINANCIAL SUMMARY (UNAUDITED) | ||||||||||||||||||||
Summary financial information by quarter is as follows (dollars in thousands, except per share data): | |||||||||||||||||||||
Quarter | Total Year | ||||||||||||||||||||
2014 | First | Second (4) | Third (5) | Fourth (6) | |||||||||||||||||
Revenue (1) | $ | 198,154 | $ | 186,172 | $ | 182,825 | $ | 174,207 | $ | 741,358 | |||||||||||
Operating loss (1) | (21,949 | ) | (11,251 | ) | (31,732 | ) | (7,784 | ) | $ | (72,716 | ) | ||||||||||
Net loss | (58,143 | ) | (46,564 | ) | (47,968 | ) | (25,488 | ) | $ | (178,163 | ) | ||||||||||
Net loss per share (2) | |||||||||||||||||||||
Basic and Diluted | $ | (0.87 | ) | $ | (0.69 | ) | $ | (0.71 | ) | $ | (0.38 | ) | $ | (2.65 | ) | ||||||
Quarter | Total Year | ||||||||||||||||||||
2013 | First (3) | Second (4) | Third (5) | Fourth (6) | |||||||||||||||||
Revenue (1) | $ | 228,655 | $ | 212,574 | $ | 199,079 | $ | 199,373 | $ | 839,681 | |||||||||||
Operating loss (1) | (5,570 | ) | (30,279 | ) | (30,563 | ) | (14,429 | ) | $ | (80,841 | ) | ||||||||||
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 | ) | ||||||
-1 | As of December 31, 2014, the results of operations for our Culinary Arts campuses that are held for sale as well as campuses that were taught out or institutions that were sold during 2014 (see Note 2 “Summary of Significant Accounting Polices” for further information), along with our campuses that had previously ceased operations or were sold and are considered distinct operations, 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. | ||||||||||||||||||||
-4 | Second quarter of 2014 net loss included $7.4 million of trade name impairment charges within loss from discontinued operations. 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, of which $2.3 million was recorded within loss from discontinued operations. | ||||||||||||||||||||
-5 | Third quarter of 2014 net loss included $3.0 million of trade name impairments (of which $1.5 million was recorded within loss from discontinued operations), $11.5 million of asset impairment charges and $8.6 million of income related to an insurance recovery. Third quarter of 2013 net loss included $11.6 million of trade name and asset impairment charges, of which $10.7 million was recorded within loss from discontinued operations. | ||||||||||||||||||||
-6 | Fourth quarter of 2014 net loss included $14.2 million of trade name and asset impairment charges, of which $10.3 million was recorded within loss from discontinued operations. Additionally, the fourth quarter of 2014 included a decrease of $9.4 million of revenue, a decrease of $7.5 million of bad debt expense and a $0.5 million increase to the loss from discontinued operations for a cumulative adjustment related to revenue recognition for withdrawn students. See Note 2 “Summary of Significant Accounting Policies – g. Revenue Recognition” for more information. 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 recorded within loss from discontinued operations and $7.0 million in asset impairment charges of which $1.0 million was recorded within loss from discontinued operations. |
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Event | In the first quarter of 2015, Scott W. Steffey resigned from his positions as President and Chief Executive Officer and as a member of the Board of Directors (the “Board”) of Career Education Corporation and all other positions held at the Company and its affiliates. The Board appointed Ronald D. McCray, as Interim President and Chief Executive Officer of the Company. Mr. McCray will lead the Company while a search for a new President and Chief Executive Officer is conducted. Mr. McCray continues to serve as Chairman and as a member of the Board. |
In connection with the termination of his employment, Mr. Steffey and the Company entered into a Separation and Release Agreement (the “Separation Agreement”) effective as of February 12, 2015. Under the terms of the Separation Agreement, the Company will pay Mr. Steffey $2.5 million in consideration for the cancellation of Mr. Steffey’s outstanding or promised equity and incentive awards, vested and unvested, including but not limited to, stock options, cash-settled stock appreciation rights, cash-settled restricted stock units, restricted stock units and performance units. The $2.5 million payment takes into account Mr. Steffey’s vested equity grants; the acceleration of equity grants due to vest on March 14, 2015; and the 2014 Annual Incentive Plan Bonus, offset by Mr. Steffey’s repayment of the portion of the sign-on award provided under the terms of the Employment Agreement entered into between Mr. Steffey and the Company on April 1, 2013 (the “Employment Agreement”) and Mr. Steffey’s repayment of certain travel and other expenses due the Company. The $2.5 million payment is not expected to have a material impact on the Company’s 2015 financial performance or financial position as the majority of expenses related to the payment had been previously recorded as of December 31, 2014. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Valuation and Qualifying Accounts | Schedule II | ||||||||||||||||
Valuation and Qualifying Accounts | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Description | Balance, | Additions/Charges | Deductions/ | Balance, | |||||||||||||
Beginning of | to Expense | Other | End of | ||||||||||||||
Period | Period | ||||||||||||||||
Valuation allowance for deferred tax assets (1): | |||||||||||||||||
For the year ended December 31, 2014 | $ | 82,876 | $ | 71,826 | $ | (4,318 | ) | $ | 150,384 | ||||||||
For the year ended December 31, 2013 | $ | 6,057 | $ | 80,536 | $ | (3,717 | ) | $ | 82,876 | ||||||||
For the year ended December 31, 2012 | $ | 4,327 | $ | 4,955 | $ | (3,225 | ) | $ | 6,057 | ||||||||
Valuation allowance for accounts receivable: | |||||||||||||||||
For the year ended December 31, 2014 | $ | 17,570 | $ | 15,850 | $ | (18,903 | ) | $ | 14,517 | ||||||||
For the year ended December 31, 2013 | $ | 21,524 | $ | 20,418 | $ | (24,372 | ) | $ | 17,570 | ||||||||
For the year ended December 31, 2012 | $ | 26,371 | $ | 21,914 | $ | (26,761 | ) | $ | 21,524 | ||||||||
-1 | Amounts include both continuing and discontinued operations gross deferred tax balances. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
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. | |
We organize our business across four reporting segments: CTU, AIU (comprises University Group); Career Colleges; and Transitional Group. Campuses included in our Transitional Group segment are currently being taught out and no longer enroll new students. These campuses employ a gradual teach-out process, enabling them to continue to operate while current students complete their course of study. | |
Reclassifications | b. Reclassifications |
During 2014, we announced the teach-out of three additional Sanford-Brown campuses: Chicago, Las Vegas and Orlando. These campuses are now included in the Transitional Group segment. During the current year, we also completed the teach-out of 20 Transitional Group campuses and one CTU campus as well as sold two campuses (one previously reported in the Career Colleges segment and one previously reported in the Transitional Group segment). As a result, all current and prior periods reflect the sold and fully taught out campuses as components of discontinued operations. | |
Additionally, during the fourth quarter of 2014, our Board of Directors approved a plan to sell our 16 Culinary Arts campuses (“LCB”). Our decision to pursue the divestiture of LCB was the result of an ongoing portfolio review undertaken to evaluate the strategic direction of the Company. As a result of the decision to sell LCB, the assets and liabilities of the entities to be sold are classified as held for sale within discontinued operations as of December 31, 2014. | |
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, long-lived assets, and held for sale 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, 2014, 2013 and 2012, approximately 78%, 78% and 80% respectively, of our institutions’ 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,” of this Annual Report on Form 10-K 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 institutions 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. | |
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, and the 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, 2014, we have determined this investment is at risk for impairment due to the nature of the liquidity of the market over the past several years. 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 institutions, 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 institutions. For certain institutions, 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 institutions charge tuition at varying amounts, depending on the institution, the type of program and specific curriculum. A majority of our institutions 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, institutions that offer our culinary arts and our health programs earn tuition fees over the entire program while the remainder of our institutions 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 and comprehensive loss until the related refund provisions have lapsed. Based on the application of our refund policies, we may be entitled to incremental revenue on the day the student withdraws from one of our schools. Prior to fiscal 2014, we recorded this incremental revenue, any related student receivable and any estimate of the amount we did not expect to collect as bad debt expense during the quarter a student withdrew based on our analysis of the collectability on an aggregate student portfolio basis, for which we had significant historical experience. Beginning in fiscal 2014, we record revenue for students who withdraw when payment is received (i.e., on a cash basis) because collectability on a student by student basis is difficult to ascertain. This change had the effect of reducing net revenues by $9.4 million and bad debt expense by $7.5 million, which resulted in an increase to the loss from continuing operations of $1.9 million for the year ended December 31, 2014. Additionally, this change reduced net student receivables from continuing operations by $1.9 million. Prior year amounts were not restated because the effects were not material. | |
Our institutions’ academic year is generally at least 30 weeks in length but varies both by institution 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 institution and program. Academic terms are determined by start dates, which also vary by institution and program. Our students finance costs through a variety of funding sources, including, among others, federal loan and grant programs, institution payment plans, private loans and grants, private and institutional scholarships and cash payments. | |
Other revenue, which consists primarily of bookstore sales for institutions 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 under our credit agreement and additional restricted funds which provide collateral for letters of credit. See Note 11 “Credit Agreement” for further details of our current credit agreement. | |
Restricted cash balances as of December 31, 2014 and 2013 total $22.9 million and $12.6 million, respectively. Restricted cash balances were comprised of $12.9 million and $12.6 million of certificates of deposit to provide securitization of our letters of credit as of December 31, 2014 and 2013, respectively. Additionally, $10.0 million of restricted cash to provide securitization of borrowings under our credit agreement was included in restricted cash balances as of December 31, 2014. | |
Students at our institutions may receive grants, loans and work-study opportunities to fund their education under Title IV Programs. In certain instances, students may request that we retain a portion of their Title IV funds provided to them in excess of tuition billings. Students may authorize us to apply these funds to historical balances or future charges and/or distribute them directly to the student in certain cases. As of December 31, 2014, we held $12.2 million of these funds on behalf of students within our cash, cash equivalents, restricted cash and short term investments on our consolidated balance sheet. | |
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 five 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 | 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 and comprehensive loss. See Note 4 “Discontinued Operations” for further discussion. | |
Investments | k. Investments |
Our investments, which primarily consist of non-governmental debt securities, treasury and federal agencies, and municipal bonds 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 (expense) income in our consolidated statements of loss and comprehensive loss. 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. | |
We use the equity method to account for our investment in equity securities if our investment gives us the ability to exercise significant influence over operating and financial policies of the investee. We include our proportionate share of earnings and/or losses of our equity method investee in other (expense) income within our consolidated statements of loss and comprehensive loss. The carrying value of our equity investment is reported within other non-current assets on our consolidated balance sheets. | |
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 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/or 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 Item 1A, “Risk Factors,” in this Annual Report on Form 10-K. | |
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 institutions to participate in Title IV Programs. | |
Our definite-lived intangible 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 9 “Goodwill and Other Intangible Assets” 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 7 “Property and Equipment” 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 12 “Contingencies” 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, 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, 2014. 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 14 “Share-Based Compensation” 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. | |
Educational Services and Facilities Expense | t. Educational Services and Facilities Expense |
Educational services and facilities expense includes costs directly attributable to the educational activities of our institutions, including: (1) salaries and benefits of faculty, academic administrators, and student support personnel, (2) costs of educational supplies and facilities, including rents on institution 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 institutions, 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 and comprehensive loss, were approximately $20.5 million, $29.1 million and $41.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |
Advertising Costs | u. 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 and comprehensive loss, were $212.4 million, $227.9 million and $247.2 million, for the years ended December 31, 2014, 2013 and 2012, 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, 2014 | |||||||||||||||||||||
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, 2014, 2013 and 2012, were as follows (dollars in thousands): | ||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 (1) | 2012 (2) | |||||||||||||||||||
Revenue | $ | 177,314 | $ | 355,340 | $ | 470,661 | |||||||||||||||
Pretax loss | $ | (101,923 | ) | $ | (7,749 | ) | $ | (125,123 | ) | ||||||||||||
Income tax provision (benefit) | — | 38,789 | (47,168 | ) | |||||||||||||||||
Loss from discontinued operations, net of tax | $ | (101,923 | ) | $ | (46,538 | ) | $ | (77,955 | ) | ||||||||||||
Net loss per diluted share | $ | (1.52 | ) | $ | (0.70 | ) | $ | (1.17 | ) | ||||||||||||
-1 | The income tax expense associated with the gain on sale of our International Segment approximates $87.9 million. | ||||||||||||||||||||
-2 | 2012 pretax loss includes income for non-profit entities within our International segment, which are not subject to income tax. | ||||||||||||||||||||
Summary Results of Operations Held for Sale within Discontinued Operations | The summary results of operations held for sale presented within results from discontinued operations above were (dollars in thousands): | ||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Asset Held For Sale: | |||||||||||||||||||||
Revenue | $ | 172,606 | $ | 177,549 | $ | 224,842 | |||||||||||||||
Loss from discontinued operations | $ | (66,322 | ) | $ | (81,242 | ) | $ | (33,865 | ) | ||||||||||||
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, 2014 and 2013 include the following (dollars in thousands): | ||||||||||||||||||||
As of December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Assets: | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 475 | |||||||||||||||||
Receivables, net | 473 | 1,521 | |||||||||||||||||||
Other current assets | — | 1,344 | |||||||||||||||||||
Assets held for sale | 76,846 | 10,879 | |||||||||||||||||||
Total current assets | 77,319 | 14,219 | |||||||||||||||||||
Non-current assets: | |||||||||||||||||||||
Property and equipment, net | — | 2,731 | |||||||||||||||||||
Other assets, net | 975 | 1,507 | |||||||||||||||||||
Assets held for sale | — | 97,470 | |||||||||||||||||||
Total assets of discontinued operations | $ | 78,294 | $ | 115,927 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable and accrued expenses | $ | 579 | $ | 1,370 | |||||||||||||||||
Deferred tuition revenue | — | 1,522 | |||||||||||||||||||
Remaining lease obligations | 14,927 | 13,132 | |||||||||||||||||||
Liabilities held for sale | 50,357 | 19,671 | |||||||||||||||||||
Total current liabilities | 65,863 | 35,695 | |||||||||||||||||||
Non-current liabilities: | |||||||||||||||||||||
Remaining lease obligations | 22,689 | 30,952 | |||||||||||||||||||
Other | 170 | 6,512 | |||||||||||||||||||
Liabilities held for sale | — | 25,732 | |||||||||||||||||||
Total liabilities of discontinued operations | $ | 88,722 | $ | 98,891 | |||||||||||||||||
Components of Assets and Liabilities Held for Sale | The major components of assets and liabilities held for sale presented above within discontinued operations were (dollars in thousands): | ||||||||||||||||||||
As of December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Assets: | |||||||||||||||||||||
Receivables, net (1) | $ | 8,303 | $ | 7,487 | |||||||||||||||||
Property and equipment, net (1) | 42,521 | 67,570 | |||||||||||||||||||
Other intangible assets (1) | 18,400 | 27,300 | |||||||||||||||||||
Other assets (1) | 7,622 | 5,992 | |||||||||||||||||||
Total assets held for sale | $ | 76,846 | $ | 108,349 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Accounts payable and accrued expenses | 12,410 | 4,831 | |||||||||||||||||||
Deferred revenue | 17,001 | 14,840 | |||||||||||||||||||
Remaining lease obligations (2) | 2,253 | 2,671 | |||||||||||||||||||
Other liabilities (2) | 18,693 | 23,061 | |||||||||||||||||||
Total liabilities held for sale | $ | 50,357 | $ | 45,403 | |||||||||||||||||
-1 | Property and equipment, net, other intangible assets and a portion of receivables, net and other assets are classified within non-current assets held for sale as of December 31, 2013. | ||||||||||||||||||||
-2 | Other liabilities and a portion of remaining lease obligations are classified within non-current liabilities held for sale as of December 31, 2013. | ||||||||||||||||||||
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, 2014, 2013 and 2012, 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, 2014 | $ | 46,755 | $ | 14,129 | $ | (26,546 | ) | $ | 5,531 | $ | 39,869 | ||||||||||
For the twelve months ended December 31, 2013 | $ | 49,392 | $ | 11,855 | $ | (14,780 | ) | $ | 288 | $ | 46,755 | ||||||||||
For the twelve months ended December 31, 2012 | $ | 53,877 | $ | 8,689 | $ | (13,174 | ) | $ | — | $ | 49,392 | ||||||||||
-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 8 “Leases” for the future minimum lease payments under operating leases for discontinued operations as of December 31, 2014. | ||||||||||||||||||||
-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. |
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Investments from Continuing Operations | Investments from our continuing operations consist of the following as of December 31, 2014 and 2013 (dollars in thousands): | ||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Gross Unrealized | |||||||||||||||||||||
Cost | Gain | (Loss) | Fair Value | ||||||||||||||||||
Short-term investments (available for sale): | |||||||||||||||||||||
Municipal bonds | $ | 6,880 | $ | 1 | $ | (56 | ) | $ | 6,825 | ||||||||||||
Non-governmental debt securities | 98,400 | 1 | (271 | ) | 98,130 | ||||||||||||||||
Treasury and federal agencies | 17,928 | 6 | (31 | ) | 17,903 | ||||||||||||||||
Total short-term investments | 123,208 | 8 | (358 | ) | 122,858 | ||||||||||||||||
Long-term investments (available for sale): | |||||||||||||||||||||
Municipal bond | 7,850 | — | (476 | ) | 7,374 | ||||||||||||||||
Total investments (available for sale) | $ | 131,058 | $ | 8 | $ | (834 | ) | $ | 130,232 | ||||||||||||
31-Dec-13 | |||||||||||||||||||||
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 | ||||||||||||
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, 2014 and 2013, 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, 2014 | $ | 77,177 | $ | 44,182 | $ | 211 | $ | 8,662 | $ | 130,232 | |||||||||||
Original stated term to maturity of available-for-sale-investments as of December 31, 2013 | $ | 31,592 | $ | — | $ | — | $ | 7,374 | $ | 38,966 | |||||||||||
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 – Fair Value Measurements at December 31, 2014 and 2013 were as follows (dollars in thousands): | ||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Municipal bonds | $ | — | $ | 6,825 | $ | 7,374 | $ | 14,199 | |||||||||||||
Non-governmental debt securities | — | 98,130 | — | 98,130 | |||||||||||||||||
Treasury and federal agencies | — | 17,903 | — | 17,903 | |||||||||||||||||
Totals | $ | — | $ | 122,858 | $ | 7,374 | $ | 130,232 | |||||||||||||
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 | |||||||||||||
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, 2014 (dollars in thousands): | ||||||||||||||||||||
Balance at December 31, 2013 | $ | 7,374 | |||||||||||||||||||
Unrealized loss | — | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 7,374 | |||||||||||||||||||
Student_Receivables_Tables
Student Receivables (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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, 2014, 2013 and 2012 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, 2014 | $ | 17,570 | $ | 15,850 | $ | (18,903 | ) | $ | 14,517 | ||||||||
For the year ended December 31, 2013 | $ | 21,524 | $ | 20,418 | $ | (24,372 | ) | $ | 17,570 | ||||||||
For the year ended December 31, 2012 | $ | 26,371 | $ | 21,914 | $ | (26,761 | ) | $ | 21,524 | ||||||||
-1 | Charges to expense include an offset for recoveries of amounts previously written off of $5.7 million, $5.1 million and $6.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
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, 2014 and 2013 are as follows (dollars in thousands): | ||||||||||
December 31, | |||||||||||
2014 | 2013 | Life | |||||||||
Leasehold improvements | $ | 174,026 | $ | 182,260 | Shorter of Life of Lease or Useful Life | ||||||
Computer hardware and software | 121,136 | 134,866 | 3 years | ||||||||
Furniture, fixtures and equipment | 90,671 | 94,493 | 5-10 years | ||||||||
Building and improvements | 8,656 | 8,625 | 15-35 years | ||||||||
Library materials | 3,840 | 4,004 | 10 years | ||||||||
Vehicles | 778 | 819 | 5 years | ||||||||
Construction in progress | 372 | 753 | |||||||||
399,479 | 425,820 | ||||||||||
Less-Accumulated depreciation | (326,396 | ) | (313,725 | ) | |||||||
Total property and equipment, net | $ | 73,083 | $ | 112,095 | |||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||
Schedule of Changes in Future Minimum Lease Obligations | Changes in our future minimum lease obligations for exited space related to our continuing operations for the years ended December 31, 2014, 2013 and 2012 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, 2014 | $ | 4,588 | $ | 4,043 | $ | (3,783 | ) | $ | (7 | ) | $ | 4,841 | |||||||||
For the year ended December 31, 2013 | $ | 6,147 | $ | 1,905 | $ | (6,746 | ) | $ | 3,282 | $ | 4,588 | ||||||||||
For the year ended December 31, 2012 | $ | 4,915 | $ | 2,931 | $ | (1,699 | ) | $ | — | $ | 6,147 | ||||||||||
-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, 2014, 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 | ||||||||||||||||||||
2015 | $ | 47,467 | $ | 40,473 | $ | 87,940 | |||||||||||||||
2016 | 41,093 | 36,273 | 77,366 | ||||||||||||||||||
2017 | 36,754 | 29,403 | 66,157 | ||||||||||||||||||
2018 | 35,738 | 22,077 | 57,815 | ||||||||||||||||||
2019 | 27,850 | 13,116 | 40,966 | ||||||||||||||||||
2020 and thereafter | 35,917 | 11,009 | 46,926 | ||||||||||||||||||
Total | $ | 224,819 | $ | 152,351 | $ | 377,170 | |||||||||||||||
Schedule of Future Minimum Sublease Rental Income under Operating Leases for Continuing and Discontinued Operations | As of December 31, 2014, future minimum sublease rental income under operating leases, which will decrease our future minimum lease payments presented above, for continuing and discontinued operations is as follows (dollars in thousands): | ||||||||||||||||||||
Operating Subleases | |||||||||||||||||||||
Continuing | Discontinued | Total | |||||||||||||||||||
Operations | Operations | ||||||||||||||||||||
2015 | $ | 2,376 | $ | 6,202 | $ | 8,578 | |||||||||||||||
2016 | 981 | 6,216 | 7,197 | ||||||||||||||||||
2017 | 796 | 6,206 | 7,002 | ||||||||||||||||||
2018 | 656 | 1,955 | 2,611 | ||||||||||||||||||
2019 | 674 | 1,147 | 1,821 | ||||||||||||||||||
2020 and thereafter | 691 | 376 | 1,067 | ||||||||||||||||||
Total | $ | 6,174 | $ | 22,102 | $ | 28,276 | |||||||||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
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, 2014 and 2013 are as follows by segment (dollars in thousands): | ||||||||||||||||||||||||
CTU | AIU | Career | Transitional | Total | |||||||||||||||||||||
Colleges | |||||||||||||||||||||||||
Goodwill balance as of December 31, 2012 (1) | $ | 45,938 | $ | 41,418 | $ | — | $ | — | $ | 87,356 | |||||||||||||||
Goodwill impairment | — | — | — | — | — | ||||||||||||||||||||
Goodwill balance as of December 31, 2013 and 2014 | $ | 45,938 | $ | 41,418 | $ | — | $ | — | $ | 87,356 | |||||||||||||||
-1 | Goodwill impairments of approximately $74.6 million 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, 2014 and 2013, the cost basis, accumulated amortization and net book value of intangible assets for continuing operations are as follows (dollars in thousands): | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Cost | Accumulated | Net Book | Cost | Accumulated | Net Book | ||||||||||||||||||||
Amortization | Value | Amortization | Value | ||||||||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||||||||||
Courseware | $ | 9,656 | $ | (9,656 | ) | $ | — | $ | 9,656 | $ | (9,091 | ) | $ | 565 | |||||||||||
Trade name | 438 | (219 | ) | 219 | — | — | — | ||||||||||||||||||
Other | 96 | (96 | ) | — | 96 | (77 | ) | 19 | |||||||||||||||||
Amortizable intangible assets, net | $ | 10,190 | $ | (9,971 | ) | $ | 219 | $ | 9,752 | $ | (9,168 | ) | $ | 584 | |||||||||||
Non-amortizable intangible assets: | |||||||||||||||||||||||||
Accreditation, licensing, and Title IV Program participation rights | $ | 1,000 | $ | 1,000 | |||||||||||||||||||||
Trade names | 8,600 | 11,233 | |||||||||||||||||||||||
Non-amortizable intangible assets | 9,600 | 12,233 | |||||||||||||||||||||||
Intangible assets, net | $ | 9,819 | $ | 12,817 | |||||||||||||||||||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
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, 2014 and 2013 (dollars in thousands): | ||||||||||||||||||||
Balance, | Severance and | Payments | Non-cash | Balance, End | |||||||||||||||||
Beginning | related | adjustments (2) | of Period | ||||||||||||||||||
of Period | charges (1) | ||||||||||||||||||||
For the year ended December 31, 2014 | $ | 3,243 | $ | 3,524 | $ | (2,885 | ) | $ | (1,181 | ) | $ | 2,701 | |||||||||
For the year ended December 31, 2013 | $ | 5,574 | $ | 5,084 | $ | (6,665 | ) | $ | (750 | ) | $ | 3,243 | |||||||||
-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, 2014 and 2013 by reporting segment is as follows (dollars in thousands): | ||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
CTU | $ | 544 | $ | — | |||||||||||||||||
AIU | 103 | 213 | |||||||||||||||||||
Total University Group | 647 | 213 | |||||||||||||||||||
Career Colleges | 1,093 | 1,351 | |||||||||||||||||||
Corporate and Other | 1,087 | 2,088 | |||||||||||||||||||
Subtotal | 2,827 | 3,652 | |||||||||||||||||||
Transitional Group | 697 | 1,432 | |||||||||||||||||||
Total | $ | 3,524 | $ | 5,084 | |||||||||||||||||
Credit_Agreement_Tables
Credit Agreement (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Schedule of U.S. Credit Agreement | Selected details of our credit agreements as of and for the years ended December 31, 2014 and 2013 were as follows (dollars in thousands): | ||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Credit Agreement: | |||||||||
Credit facility remaining availability | $ | 98,437 | $ | 70,000 | |||||
Credit facility borrowings | $ | 10,000 | $ | — | |||||
Outstanding letters of credit (1)(2) | $ | 11,563 | $ | 12,318 | |||||
Availability of additional letters of credit (3) | $ | 8,437 | $ | 7,682 | |||||
Weighted average daily revolving credit borrowings for the year ended | $ | 9 | $ | 40 | |||||
Weighted average annual interest rate | 1.67 | % | 5.25 | % | |||||
Commitment fee rate | 0.25 | % | 0.25 | % | |||||
Letter of credit fee rate | 0.75 | % | 0.75 | % | |||||
-1 | Represents letters of credit which are fully collateralized with $11.6 million and $12.6 million of restricted cash as of December 31, 2014 and 2013, respectively. | ||||||||
-2 | As of December 31, 2014, outstanding letters of credit not related to the Credit Agreement totaled $1.3 million, which amount is fully collateralized with restricted cash, which is in addition to the $11.6 million reflected above. | ||||||||
-3 | The letters of credit sublimit of $20.0 million under the Credit Agreement is part of, not in addition to, the $120.0 million aggregate commitments. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Components of Pretax (Loss) Income from Continuing Operations | The components of pretax loss from continuing operations for the years ended December 31, 2014, 2013 and 2012 are as follows (dollars in thousands): | ||||||||||||
For the Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S | $ | (72,504 | ) | $ | (88,103 | ) | $ | (64,913 | ) | ||||
Foreign | — | 522 | (3,876 | ) | |||||||||
Total | $ | (72,504 | ) | $ | (87,581 | ) | $ | (68,789 | ) | ||||
Schedule of (Benefits from) Provision for Income Taxes from Continuing Operations | The provision for (benefit from) income taxes from continuing operations for the years ended December 31, 2014, 2013 and 2012 consists of the following (dollars in thousands): | ||||||||||||
For the Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current (benefit) provision | |||||||||||||
Federal | $ | (10,168 | ) | $ | 31,010 | $ | 18,849 | ||||||
State and local | (346 | ) | 677 | 4,011 | |||||||||
Total current (benefit) provision | (10,514 | ) | 31,687 | 22,860 | |||||||||
Deferred provision (benefit) | |||||||||||||
Federal | 13,445 | 1,023 | (25,982 | ) | |||||||||
State and local | 805 | (2,566 | ) | (826 | ) | ||||||||
Total deferred provision (benefit) | 14,250 | (1,543 | ) | (26,808 | ) | ||||||||
Total provision for (benefit from) income taxes | $ | 3,736 | $ | 30,144 | $ | (3,948 | ) | ||||||
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, 2014, 2013 and 2012 is as follows (dollars in thousands): | ||||||||||||
For the Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Statutory U.S. federal income tax rate | (35.0 | )% | (35.0 | )% | (35.0 | )% | |||||||
State and local income taxes | (4.3 | ) | (4.0 | ) | (4.1 | ) | |||||||
Nondeductible goodwill | 1.1 | 3.5 | 39.6 | ||||||||||
Valuation allowance | 39 | 86.2 | 2.4 | ||||||||||
Federal Audit Settlement | 4.5 | — | — | ||||||||||
Tax credits | — | (6.2 | ) | — | |||||||||
Other | (0.1 | ) | (10.1 | ) | (8.6 | ) | |||||||
Effective income tax rate | 5.2 | % | 34.4 | % | (5.7 | )% | |||||||
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, 2014, 2013 and 2012 is as follows (dollars in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Gross unrecognized tax benefits, beginning of the year | $ | 13,900 | $ | 24,479 | $ | 29,892 | |||||||
Additions for tax positions of prior years | 129 | 3,582 | — | ||||||||||
Reductions for tax positions of prior years | — | — | (3,548 | ) | |||||||||
Additions for tax positions related to the current year | 931 | 813 | 958 | ||||||||||
Reductions due to settlements | (4,064 | ) | (13,707 | ) | (2,531 | ) | |||||||
Reductions due to lapse of applicable statute of limitations | (1,578 | ) | (1,267 | ) | (292 | ) | |||||||
Subtotal | 9,318 | 13,900 | 24,479 | ||||||||||
Interest and penalties | 2,820 | 3,107 | 3,794 | ||||||||||
Total gross unrecognized tax benefits, end of the year | $ | 12,138 | $ | 17,007 | $ | 28,273 | |||||||
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, 2014 and 2013 are as follows (dollars in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred income tax assets: | |||||||||||||
Accrued occupancy | $ | 1,728 | $ | 1,633 | |||||||||
Deferred rent obligations | 9,248 | 10,095 | |||||||||||
Foreign tax credits | 32,998 | 12,026 | |||||||||||
Valuation allowance foreign tax credits | (6,264 | ) | (3,116 | ) | |||||||||
Compensation and employee benefits | 14,225 | 17,947 | |||||||||||
Tax net operating loss carry forwards | 34,067 | 7,220 | |||||||||||
Valuation allowance | (34,067 | ) | (7,220 | ) | |||||||||
Allowance for doubtful accounts | 2,269 | 1,201 | |||||||||||
Covenant not-to-compete | 37 | 70 | |||||||||||
Accrued settlements and legal | 828 | 1,904 | |||||||||||
Deferred compensation | 1,777 | 498 | |||||||||||
Accrued restructuring and severance | 1,070 | 2,057 | |||||||||||
Equity method for investments | 19 | — | |||||||||||
General business tax credits | 450 | — | |||||||||||
Depreciation and amortization | 142 | — | |||||||||||
Other | 822 | 1,575 | |||||||||||
Valuation allowance deferred tax assets | (55,995 | ) | (8,250 | ) | |||||||||
Total deferred income tax assets | 3,354 | 37,640 | |||||||||||
Deferred income tax liabilities: | |||||||||||||
Depreciation and amortization | — | 19,387 | |||||||||||
Other | 3,354 | 4,003 | |||||||||||
Total deferred income tax liabilities | 3,354 | 23,390 | |||||||||||
Net deferred income tax assets | $ | — | $ | 14,250 | |||||||||
Schedule of Net Deferred Income Tax Assets for Continuing Operations | Net deferred income tax assets for continuing operations as of December 31, 2014 and 2013 are reflected in the consolidated balance sheets as follows (dollars in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Current deferred income tax assets, net | $ | — | $ | 3,606 | |||||||||
Non-current deferred income tax assets, net | — | 10,644 | |||||||||||
Net deferred income tax assets | $ | — | $ | 14,250 | |||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
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, 2014: | ||||||||||||||||||||
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 | 8.27 | 161,157 | $ | 2.2 | ||||||||||||||
$ 2.62 $ 2.65 | 96,729 | $ | 2.65 | 8.61 | 26,403 | $ | 2.64 | ||||||||||||||
$ 2.72 $ 2.72 | 403,504 | $ | 2.72 | 4.88 | 269,626 | $ | 2.72 | ||||||||||||||
$ 2.82 $ 6.81 | 628,327 | $ | 5.49 | 8.72 | 148,344 | $ | 4.62 | ||||||||||||||
$ 7.33 $ 8.63 | 590,500 | $ | 7.98 | 6.03 | 132,933 | $ | 8.63 | ||||||||||||||
$13.32 $22.04 | 503,112 | $ | 19.12 | 3.95 | 484,459 | $ | 19.02 | ||||||||||||||
$22.13 $30.67 | 413,564 | $ | 27.57 | 4.98 | 413,564 | $ | 27.57 | ||||||||||||||
$30.80 $34.70 | 454,350 | $ | 33.18 | 1.27 | 454,350 | $ | 33.18 | ||||||||||||||
$34.86 $37.76 | 46,750 | $ | 35.3 | 0.7 | 46,750 | $ | 35.3 | ||||||||||||||
$38.28 $38.28 | 500 | $ | 38.28 | 0.51 | 500 | $ | 38.28 | ||||||||||||||
3,781,964 | $ | 12.88 | 5.77 | 2,138,086 | $ | 18.87 | |||||||||||||||
Schedule of Deferred Stock Units to be Settled in Shares | The following table summarizes information with respect to all deferred stock units during the year to date ended December 31, 2014: | ||||||||||||||||||||
Deferred Stock | Weighted Average | ||||||||||||||||||||
Units to be Settled | Grant-Date Fair | ||||||||||||||||||||
in Shares | Value Per Unit | ||||||||||||||||||||
Outstanding as of December 31, 2013 | — | $ | — | ||||||||||||||||||
Granted | 116,952 | 4.39 | |||||||||||||||||||
Vested | — | — | |||||||||||||||||||
Forfeited | — | — | |||||||||||||||||||
Outstanding as of December 31, 2014 | 116,952 | $ | 4.39 | ||||||||||||||||||
Schedule of Restricted Stock Units to be Settled in Cash | The following table summarizes information with respect to all cash-settled restricted stock units for the years ended December 31, 2014 and 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 | ||||||||||||||||||||
Granted | 981,136 | ||||||||||||||||||||
Vested | (755,656 | ) | |||||||||||||||||||
Forfeited | (671,940 | ) | |||||||||||||||||||
Outstanding as of December 31, 2014 | 1,842,455 | ||||||||||||||||||||
Summary of Total Stock Based Compensation Expense | Stock-Based Compensation Expense. Total stock-based compensation expense for the years ended December 31, 2014, 2013 and 2012 for all types of awards was as follows (dollars in thousands): | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
Award Type | 2014 | 2013 | 2012 | ||||||||||||||||||
Stock Options | $ | 1,372 | $ | 2,308 | $ | 2,907 | |||||||||||||||
Restricted stock or units settled in stock | 2,865 | 4,339 | 6,637 | ||||||||||||||||||
Restricted stock units settled in cash | 4,514 | 3,452 | — | ||||||||||||||||||
Stock appreciation rights settled in cash | 295 | 149 | — | ||||||||||||||||||
Total stock-based compensation expense | $ | 9,046 | $ | 10,248 | $ | 9,544 | |||||||||||||||
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, 2014, 2013 and 2012, and assumptions used to value stock options are as follows: | ||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Dividend yield | — | — | — | ||||||||||||||||||
Risk-free interest rate | 1.4 | % | 1.1 | % | 0.6 | % | |||||||||||||||
Weighted average volatility | 73 | % | 64.6 | % | 68.4 | % | |||||||||||||||
Expected life (in years) | 4.3 | 5.6 | 5.2 | ||||||||||||||||||
Weighted average grant date fair value per share of options granted | $ | 3.89 | $ | 1.47 | $ | 4.1 | |||||||||||||||
Employee Stock Option [Member] | |||||||||||||||||||||
Summary of Stock Option Activity | Stock option activity during the years ended December 31, 2014, 2013 and 2012, 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, 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 | ||||||||||||||||||
Granted | 746,318 | 6.89 | |||||||||||||||||||
Exercised | (225,000 | ) | 2.72 | $ | 721 | ||||||||||||||||
Forfeited | (299,577 | ) | 4.94 | ||||||||||||||||||
Cancelled | (340,212 | ) | 39.49 | ||||||||||||||||||
Outstanding as of December 31, 2014 | 3,781,964 | $ | 12.88 | 5.8 years | $ | 6,118 | |||||||||||||||
Exercisable as of December 31, 2014 | 2,138,086 | $ | 18.87 | 4.0 years | $ | 2,372 | |||||||||||||||
Restricted Stock Shares [Member] | |||||||||||||||||||||
Schedule of Information with Respect to all Outstanding 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, 2014, 2013 and 2012: | ||||||||||||||||||||
Restricted Stock to be Settled in Shares of Stock | |||||||||||||||||||||
Shares | Weighted | Units | Weighted | Total | |||||||||||||||||
Average | Average | ||||||||||||||||||||
Grant-Date | Grant-Date | ||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||
Per Share | Per Unit | ||||||||||||||||||||
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 | ||||||||||||||
Granted | — | — | 318,940 | 6.57 | 318,940 | ||||||||||||||||
Vested | (136,133 | ) | 22.94 | (135,645 | ) | 8.61 | (271,778 | ) | |||||||||||||
Forfeited | (42,677 | ) | 20.87 | (165,776 | ) | 7.9 | (208,453 | ) | |||||||||||||
Outstanding as of December 31, 2014 | 42,752 | $ | 21.63 | 556,140 | $ | 7.35 | 598,892 | ||||||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Summary Financial Information by Reporting Segment | Summary financial information by quarter is as follows (dollars in thousands, except per share data): | ||||||||||||||||||||
Quarter | Total Year | ||||||||||||||||||||
2014 | First | Second (4) | Third (5) | Fourth (6) | |||||||||||||||||
Revenue (1) | $ | 198,154 | $ | 186,172 | $ | 182,825 | $ | 174,207 | $ | 741,358 | |||||||||||
Operating loss (1) | (21,949 | ) | (11,251 | ) | (31,732 | ) | (7,784 | ) | $ | (72,716 | ) | ||||||||||
Net loss | (58,143 | ) | (46,564 | ) | (47,968 | ) | (25,488 | ) | $ | (178,163 | ) | ||||||||||
Net loss per share (2) | |||||||||||||||||||||
Basic and Diluted | $ | (0.87 | ) | $ | (0.69 | ) | $ | (0.71 | ) | $ | (0.38 | ) | $ | (2.65 | ) | ||||||
Quarter | Total Year | ||||||||||||||||||||
2013 | First (3) | Second (4) | Third (5) | Fourth (6) | |||||||||||||||||
Revenue (1) | $ | 228,655 | $ | 212,574 | $ | 199,079 | $ | 199,373 | $ | 839,681 | |||||||||||
Operating loss (1) | (5,570 | ) | (30,279 | ) | (30,563 | ) | (14,429 | ) | $ | (80,841 | ) | ||||||||||
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 | ) | ||||||
-1 | As of December 31, 2014, the results of operations for our Culinary Arts campuses that are held for sale as well as campuses that were taught out or institutions that were sold during 2014 (see Note 2 “Summary of Significant Accounting Polices” for further information), along with our campuses that had previously ceased operations or were sold and are considered distinct operations, 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. | ||||||||||||||||||||
-4 | Second quarter of 2014 net loss included $7.4 million of trade name impairment charges within loss from discontinued operations. 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, of which $2.3 million was recorded within loss from discontinued operations. | ||||||||||||||||||||
-5 | Third quarter of 2014 net loss included $3.0 million of trade name impairments (of which $1.5 million was recorded within loss from discontinued operations), $11.5 million of asset impairment charges and $8.6 million of income related to an insurance recovery. Third quarter of 2013 net loss included $11.6 million of trade name and asset impairment charges, of which $10.7 million was recorded within loss from discontinued operations. | ||||||||||||||||||||
-6 | Fourth quarter of 2014 net loss included $14.2 million of trade name and asset impairment charges, of which $10.3 million was recorded within loss from discontinued operations. Additionally, the fourth quarter of 2014 included a decrease of $9.4 million of revenue, a decrease of $7.5 million of bad debt expense and a $0.5 million increase to the loss from discontinued operations for a cumulative adjustment related to revenue recognition for withdrawn students. See Note 2 “Summary of Significant Accounting Policies – g. Revenue Recognition” for more information. 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 recorded within loss from discontinued operations and $7.0 million in asset impairment charges of which $1.0 million was recorded within loss from discontinued operations. |
Quarterly_Financial_Summary_Un1
Quarterly Financial Summary (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Schedule of Quarterly Financial Summary | Summary financial information by quarter is as follows (dollars in thousands, except per share data): | ||||||||||||||||||||
Quarter | Total Year | ||||||||||||||||||||
2014 | First | Second (4) | Third (5) | Fourth (6) | |||||||||||||||||
Revenue (1) | $ | 198,154 | $ | 186,172 | $ | 182,825 | $ | 174,207 | $ | 741,358 | |||||||||||
Operating loss (1) | (21,949 | ) | (11,251 | ) | (31,732 | ) | (7,784 | ) | $ | (72,716 | ) | ||||||||||
Net loss | (58,143 | ) | (46,564 | ) | (47,968 | ) | (25,488 | ) | $ | (178,163 | ) | ||||||||||
Net loss per share (2) | |||||||||||||||||||||
Basic and Diluted | $ | (0.87 | ) | $ | (0.69 | ) | $ | (0.71 | ) | $ | (0.38 | ) | $ | (2.65 | ) | ||||||
Quarter | Total Year | ||||||||||||||||||||
2013 | First (3) | Second (4) | Third (5) | Fourth (6) | |||||||||||||||||
Revenue (1) | $ | 228,655 | $ | 212,574 | $ | 199,079 | $ | 199,373 | $ | 839,681 | |||||||||||
Operating loss (1) | (5,570 | ) | (30,279 | ) | (30,563 | ) | (14,429 | ) | $ | (80,841 | ) | ||||||||||
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 | ) | ||||||
-1 | As of December 31, 2014, the results of operations for our Culinary Arts campuses that are held for sale as well as campuses that were taught out or institutions that were sold during 2014 (see Note 2 “Summary of Significant Accounting Polices” for further information), along with our campuses that had previously ceased operations or were sold and are considered distinct operations, 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. | ||||||||||||||||||||
-4 | Second quarter of 2014 net loss included $7.4 million of trade name impairment charges within loss from discontinued operations. 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, of which $2.3 million was recorded within loss from discontinued operations. | ||||||||||||||||||||
-5 | Third quarter of 2014 net loss included $3.0 million of trade name impairments (of which $1.5 million was recorded within loss from discontinued operations), $11.5 million of asset impairment charges and $8.6 million of income related to an insurance recovery. Third quarter of 2013 net loss included $11.6 million of trade name and asset impairment charges, of which $10.7 million was recorded within loss from discontinued operations. | ||||||||||||||||||||
-6 | Fourth quarter of 2014 net loss included $14.2 million of trade name and asset impairment charges, of which $10.3 million was recorded within loss from discontinued operations. Additionally, the fourth quarter of 2014 included a decrease of $9.4 million of revenue, a decrease of $7.5 million of bad debt expense and a $0.5 million increase to the loss from discontinued operations for a cumulative adjustment related to revenue recognition for withdrawn students. See Note 2 “Summary of Significant Accounting Policies – g. Revenue Recognition” for more information. 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 recorded within loss from discontinued operations and $7.0 million in asset impairment charges of which $1.0 million was recorded within loss from discontinued operations. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Campus | |||
Segment | |||
Accounting Policies [Line Items] | |||
Number of Reporting Segments | 4 | ||
Number of teach out campuses sold | 2 | ||
Number of additional campuses | 21 | ||
Decrease in Revenue | $9,400,000 | ||
Expense for bad debts | 7,500,000 | ||
Loss from Continuing Operations | 1,900,000 | ||
Loans disbursed under Credit Agreement secured by cash, percentage | 100.00% | ||
Restricted cash and cash Equivalents | 22,938,000 | 12,564,000 | |
Certificates of Deposit, at Carrying Value | 12,900,000 | 12,600,000 | |
Additional restricted cash for securitization | 10,000,000 | ||
Number of days past due to write off student receivables | Greater than 90 days | ||
Costs of other goods and services included in educational services and facilities expense | 20,500,000 | 29,100,000 | 41,300,000 |
Advertising costs | 212,400,000 | 227,900,000 | 247,200,000 |
Maximum [Member] | |||
Accounting Policies [Line Items] | |||
Maturity period of Cash equivalents including short-term investments | 90 days | ||
Career Colleges Segment [Member] | |||
Accounting Policies [Line Items] | |||
Number of campuses | 3 | ||
Number of teach out campuses sold | 1 | ||
Transitional Group Segment [Member] | |||
Accounting Policies [Line Items] | |||
Number of teach out campuses sold | 1 | ||
Transitional Group [Member] | |||
Accounting Policies [Line Items] | |||
Number of additional campuses | 20 | ||
Culinary Arts [Member] | |||
Accounting Policies [Line Items] | |||
Number of Campuses | 16 | ||
Cash Receipts [Member] | |||
Accounting Policies [Line Items] | |||
Percentage of cash receipts from Title IV Program funding | 78.00% | 78.00% | 80.00% |
Title IV Programs [Member] | |||
Accounting Policies [Line Items] | |||
Student fund portion in cash, cash equivalents, restricted cash and short term investments | 12,200,000 | ||
Student Loans [Member] | |||
Accounting Policies [Line Items] | |||
decrease in student receivables | $1,900,000 | ||
Student Loans [Member] | Minimum [Member] | |||
Accounting Policies [Line Items] | |||
Student receivables period | 1 year | ||
Student Loans [Member] | Current Assets [Member] | Maximum [Member] | |||
Accounting Policies [Line Items] | |||
Student receivables period | 1 year | ||
Student Loans [Member] | Non Current Assets [Member] | Minimum [Member] | |||
Accounting Policies [Line Items] | |||
Student receivables period | 1 year | ||
Student Loans [Member] | Non Current Assets [Member] | Maximum [Member] | |||
Accounting Policies [Line Items] | |||
Student receivables period | 5 years |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 03, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 03, 2013 |
Campus | Campus | |||
Discontinued Operations and Disposal Groups [Abstract] | ||||
Number of campuses completed teach out activities | 21 | 21 | ||
Number of campus sold | 2 | |||
Asset impairment charges | $10 | |||
Number of LCB institutions resulting in impairment | 4 | |||
Sale agreement amount | 305 | |||
Cash received on sale | 276.5 | |||
Gain on sale of business | 130.1 | |||
Transaction costs | 8.9 | |||
Income tax expense | $87.90 | $87.90 | ||
Lease expiration year | 2022 |
Discontinued_Operations_Summar
Discontinued Operations - Summary Results of Operations for Discontinued Operations (Detail) (USD $) | 12 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Discontinued Operations and Disposal Groups [Abstract] | |||||
Revenue | $177,314 | $355,340 | [1] | $470,661 | [2] |
Pretax loss | -101,923 | -7,749 | [1] | -125,123 | [2] |
Income tax provision (benefit) | 38,789 | [1] | -47,168 | [2] | |
Loss from discontinued operations, net of tax | ($101,923) | ($46,538) | [1] | ($77,955) | [2] |
Net loss per diluted share | ($1.52) | ($0.70) | [1] | ($1.17) | [2] |
[1] | The income tax expense associated with the gain on sale of our International Segment approximates $87.9 million. | ||||
[2] | 2012 pretax loss includes income for non-profit entities within our International segment, which are not subject to income tax. |
Discontinued_Operations_Summar1
Discontinued Operations - Summary Results of Operations for Discontinued Operations (Parenthetical) (Detail) (USD $) | 0 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 03, 2013 | Dec. 31, 2014 |
Discontinued Operations and Disposal Groups [Abstract] | ||
Income tax expense | $87.90 | $87.90 |
Discontinued_Operations_Summar2
Discontinued Operations - Summary Results of Operations Held for Sale within Discontinued Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Asset Held For Sale: | |||
Revenue | $172,606 | $177,549 | $224,842 |
Loss from discontinued operations | ($66,322) | ($81,242) | ($33,865) |
Discontinued_Operations_Assets
Discontinued Operations - Assets and Liabilities of Discontinued Operations on Consolidated Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ||||
Cash and cash equivalents | $475 | $127,104 | $108,867 | |
Receivables, net | 473 | 1,521 | ||
Other current assets | 1,344 | |||
Assets held for sale | 76,846 | 10,879 | ||
Total current assets | 77,319 | 14,219 | ||
Property and equipment, net | 2,731 | |||
Other assets, net | 975 | 1,507 | ||
Assets held for sale | 97,470 | |||
Total assets of discontinued operations | 78,294 | 115,927 | ||
Accounts payable and accrued expenses | 579 | 1,370 | ||
Deferred tuition revenue | 1,522 | |||
Remaining lease obligations | 14,927 | 13,132 | ||
Liabilities held for sale | 50,357 | 19,671 | ||
Total current liabilities | 65,863 | 35,695 | ||
Remaining lease obligations | 22,689 | 30,952 | ||
Other | 170 | 6,512 | ||
Liabilities held for sale | 25,732 | |||
Total liabilities of discontinued operations | $88,722 | $98,891 |
Discontinued_Operations_Compon
Discontinued Operations - Components of Assets and Liabilities Held for Sale (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Assets: | ||||
Receivables, net | $8,303 | [1] | $7,487 | [1] |
Property and equipment, net | 42,521 | [1] | 67,570 | [1] |
Other intangible assets | 18,400 | [1] | 27,300 | [1] |
Other assets | 7,622 | [1] | 5,992 | [1] |
Total assets held for sale | 76,846 | 108,349 | ||
Liabilities: | ||||
Accounts payable and accrued expenses | 12,410 | 4,831 | ||
Deferred revenue | 17,001 | 14,840 | ||
Remaining lease obligations | 2,253 | [2] | 2,671 | [2] |
Other liabilities | 18,693 | [2] | 23,061 | [2] |
Total liabilities held for sale | $50,357 | $45,403 | ||
[1] | Property and equipment, net, other intangible assets and a portion of receivables, net and other assets are classified within non-current assets held for sale as of December 31, 2013. | |||
[2] | Other liabilities and a portion of remaining lease obligations are classified within non-current liabilities held for sale as of December 31, 2013. |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Discontinued Operations and Disposal Groups [Abstract] | ||||||
Balance, Beginning of Period | $46,755 | $49,392 | $53,877 | |||
Charges Incurred | 14,129 | [1] | 11,855 | [1] | 8,689 | [1] |
Net Cash Payments | -26,546 | [2] | -14,780 | [2] | -13,174 | [2] |
Other | 5,531 | [3] | 288 | [3] | ||
Balance, End of Period | $39,869 | $46,755 | $49,392 | |||
[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 8 "Leases" for the future minimum lease payments under operating leases for discontinued operations as of December 31, 2014. | |||||
[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. |
Investments_Investments_from_C
Investments - Investments from Continuing Operations (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | $131,058 | $39,441 |
Total investments (available for sale), Gross Unrealized Gain | 8 | 1 |
Total investments (available for sale), Gross Unrealized (Loss) | -834 | -476 |
Total investments (available for sale), Fair value | 130,232 | 38,966 |
Municipal Bond [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Fair value | 14,199 | 7,374 |
Non-governmental Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Fair value | 98,130 | |
Treasury and Federal Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Fair value | 17,903 | |
Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | 123,208 | |
Total investments (available for sale), Gross Unrealized Gain | 8 | |
Total investments (available for sale), Gross Unrealized (Loss) | -358 | |
Total investments (available for sale), Fair value | 122,858 | |
Short-term Investments [Member] | Municipal Bond [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | 6,880 | |
Total investments (available for sale), Gross Unrealized Gain | 1 | |
Total investments (available for sale), Gross Unrealized (Loss) | -56 | |
Total investments (available for sale), Fair value | 6,825 | |
Short-term Investments [Member] | Non-governmental Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | 98,400 | |
Total investments (available for sale), Gross Unrealized Gain | 1 | |
Total investments (available for sale), Gross Unrealized (Loss) | -271 | |
Total investments (available for sale), Fair value | 98,130 | |
Short-term Investments [Member] | Treasury and Federal Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | 17,928 | |
Total investments (available for sale), Gross Unrealized Gain | 6 | |
Total investments (available for sale), Gross Unrealized (Loss) | -31 | |
Total investments (available for sale), Fair value | 17,903 | |
Short-term Investments [Member] | U.S. Treasury Bills [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | 31,591 | |
Total investments (available for sale), Gross Unrealized Gain | 1 | |
Total investments (available for sale), Fair value | 31,592 | |
Long Term Investments [Member] | Municipal Bond [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investments (available for sale), Cost | 7,850 | 7,850 |
Total investments (available for sale), Gross Unrealized (Loss) | -476 | -476 |
Total investments (available for sale), Fair value | $7,374 | $7,374 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Financial Instruments [Line Items] | |||
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 | ($350,000) | ($13,000) | ($152,000) |
CCKF [Member] | |||
Financial Instruments [Line Items] | |||
Non controlling interest | 4,800,000 | ||
Percentage of investment in equity affiliate | 30.70% | ||
Equity method investment percentage | 30.70% | ||
Additional investment in affiliate | 3,200,000 | ||
Retained earnings | 100,000 | ||
Maximum [Member] | CCKF [Member] | |||
Financial Instruments [Line Items] | |||
Percentage of investment in interest | 20.00% | ||
Income from investment in affiliate | 100,000 | ||
Municipal Bond [Member] | |||
Financial Instruments [Line Items] | |||
Period debt obligations mature, years, maximum | 1 year | ||
Cumulative unrealized income (loss) on municipal bonds | $500,000 |
Investments_Schedule_of_Availa
Investments - Schedule of Available-for-Sale Investments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
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 | $77,177 | $31,592 |
Original stated term to maturity of available-for-sale- investments, One to five years | 44,182 | |
Original stated term to maturity of available-for-sale- investments, Five to ten years | 211 | |
Original stated term to maturity of available-for-sale- investments, Greater than ten years | 8,662 | 7,374 |
Original stated term to maturity of available-for-sale- investments, Total | $130,232 | $38,966 |
Investments_Investments_Measur
Investments - Investments Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | $130,232 | $38,966 |
Municipal Bond [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 14,199 | 7,374 |
Non-governmental Debt Securities [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 98,130 | |
Treasury and Federal Agencies [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 17,903 | |
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 | |
Level 1 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 31,592 | |
Level 1 [Member] | Municipal Bond [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 0 | |
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 | |
Level 2 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 122,858 | 0 |
Level 2 [Member] | Municipal Bond [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 6,825 | 0 |
Level 2 [Member] | Non-governmental Debt Securities [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 98,130 | |
Level 2 [Member] | Treasury and Federal Agencies [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 17,903 | |
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 | 0 | |
Level 3 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total investments at fair value | 7,374 | 7,374 |
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 | 7,374 |
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 | $0 |
Investments_Assets_Measured_at
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, 2014 |
Investments, Debt and Equity Securities [Abstract] | |
Beginning balance | $7,374 |
Unrealized loss | 0 |
Ending balance | $7,374 |
Student_Receivables_Additional
Student Receivables - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
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 | $2.90 | $3.30 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Receivables [Abstract] | ||||||
Balance, Beginning of Period | $17,570 | $21,524 | $26,371 | |||
Charges to Expense | 15,850 | [1] | 20,418 | [1] | 21,914 | [1] |
Amounts Written-off | -18,903 | -24,372 | -26,761 | |||
Balance, End of Period | $14,517 | $17,570 | $21,524 | |||
[1] | Charges to expense include an offset for recoveries of amounts previously written off of $5.7 million, $5.1 million and $6.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Receivables [Abstract] | |||
Recoveries of amounts previously written off | $5.70 | $5.10 | $6.10 |
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, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Leasehold improvements | 174,026 | $182,260 |
Computer hardware and software | 121,136 | 134,866 |
Furniture, fixtures and equipment | 90,671 | 94,493 |
Building and improvements | 8,656 | 8,625 |
Library materials | 3,840 | 4,004 |
Vehicles | 778 | 819 |
Construction in progress | 372 | 753 |
Property plant and equipment, Total | 399,479 | 425,820 |
Less-Accumulated depreciation | -326,396 | -313,725 |
Total property and equipment, net | 73,083 | $112,095 |
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 | |
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 | |
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 | |
Library Materials [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life (in years) | 10 years | |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense for continuing operations | $35.20 | $44 | $47.10 |
Depreciation expense for discontinued operations | 19.4 | 27.8 | 32.3 |
Property and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Asset impairment charges | $14.70 | $7 |
Leases_Additional_Information_
Leases - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property Subject to or Available for Operating Lease [Line Items] | |||
Operating leases expiration date | 2023 | ||
Operating leases obligation | $377,170,000 | ||
Assets Held for Sale [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Operating leases obligation | 98,800,000 | ||
Discontinued Operations [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Rent expense, exclusive of related taxes | 34,500,000 | 54,400,000 | 51,800,000 |
Operating leases obligation | 152,351,000 | ||
Continuing Operation [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Rent expense, exclusive of related taxes | 48,500,000 | 55,000,000 | 58,500,000 |
Operating leases obligation | 224,819,000 | ||
Transitional Group [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Operating leases obligation | $40,300,000 | ||
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 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Leases [Abstract] | |||
Balance, Beginning of Period | $4,588 | $6,147 | $4,915 |
Charges Incurred | 4,043 | 1,905 | 2,931 |
Net Cash Payments | -3,783 | -6,746 | -1,699 |
Other | -7 | 3,282 | |
Balance, End of Period | $4,841 | $4,588 | $6,147 |
Leases_Schedule_of_Future_Mini
Leases - Schedule of Future Minimum Lease Payments under Capital Leases and Operating Leases for Continuing and Discontinued Operations (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Property Subject to or Available for Operating Lease [Line Items] | |
Operating Leases, 2015 | $87,940 |
Operating Leases, 2016 | 77,366 |
Operating Leases, 2017 | 66,157 |
Operating Leases, 2018 | 57,815 |
Operating Leases, 2019 | 40,966 |
Operating Leases, 2020 and thereafter | 46,926 |
Operating Leases, Total | 377,170 |
Operating Subleases, 2015 | 8,578 |
Operating Subleases, 2016 | 7,197 |
Operating Subleases, 2017 | 7,002 |
Operating Subleases, 2018 | 2,611 |
Operating Subleases, 2019 | 1,821 |
Operating Subleases, 2020 and thereafter | 1,067 |
Operating Subleases, Total | 28,276 |
Continuing Operation [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Operating Leases, 2015 | 47,467 |
Operating Leases, 2016 | 41,093 |
Operating Leases, 2017 | 36,754 |
Operating Leases, 2018 | 35,738 |
Operating Leases, 2019 | 27,850 |
Operating Leases, 2020 and thereafter | 35,917 |
Operating Leases, Total | 224,819 |
Operating Subleases, 2015 | 2,376 |
Operating Subleases, 2016 | 981 |
Operating Subleases, 2017 | 796 |
Operating Subleases, 2018 | 656 |
Operating Subleases, 2019 | 674 |
Operating Subleases, 2020 and thereafter | 691 |
Operating Subleases, Total | 6,174 |
Discontinued Operations [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Operating Leases, 2015 | 40,473 |
Operating Leases, 2016 | 36,273 |
Operating Leases, 2017 | 29,403 |
Operating Leases, 2018 | 22,077 |
Operating Leases, 2019 | 13,116 |
Operating Leases, 2020 and thereafter | 11,009 |
Operating Leases, Total | 152,351 |
Operating Subleases, 2015 | 6,202 |
Operating Subleases, 2016 | 6,216 |
Operating Subleases, 2017 | 6,206 |
Operating Subleases, 2018 | 1,955 |
Operating Subleases, 2019 | 1,147 |
Operating Subleases, 2020 and thereafter | 376 |
Operating Subleases, Total | $22,102 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |||
Goodwill [Line Items] | |||||
Goodwill, beginning balance | $87,356,000 | [1] | $87,356,000 | ||
Goodwill impairment | -74,600,000 | ||||
Goodwill ending balance | 87,356,000 | 87,356,000 | [1] | 87,356,000 | |
CTU [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, beginning balance | 45,938,000 | [1] | 45,938,000 | ||
Goodwill impairment | |||||
Goodwill ending balance | 45,938,000 | 45,938,000 | |||
AIU [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, beginning balance | 41,418,000 | [1] | 41,418,000 | ||
Goodwill impairment | |||||
Goodwill ending balance | 41,418,000 | 41,418,000 | |||
Career Colleges [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, beginning balance | [1] | ||||
Goodwill impairment | |||||
Goodwill ending balance | |||||
Transitional Schools [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, beginning balance | [1] | ||||
Goodwill impairment | |||||
Goodwill ending balance | |||||
[1] | Goodwill impairments of approximately $74.6 million were recorded during the year ended December 31, 2012. |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill impairment | $74.60 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Schedule of Cost Basis, Accumulated Amortization Net Book Value of Intangible Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Intangible Assets Net Excluding Goodwill [Line Items] | ||
Cost | $10,190 | $9,752 |
Accumulated Amortization | -9,971 | -9,168 |
Net Book Value of Amortizable intangible assets, net | 219 | 584 |
Non-amortizable intangible assets | 9,600 | 12,233 |
Intangible assets, net | 9,819 | 12,817 |
Courseware [Member] | ||
Intangible Assets Net Excluding Goodwill [Line Items] | ||
Cost | 9,656 | 9,656 |
Accumulated Amortization | -9,656 | -9,091 |
Net Book Value of Amortizable intangible assets, net | 565 | |
Trade names [Member] | ||
Intangible Assets Net Excluding Goodwill [Line Items] | ||
Cost | 438 | |
Accumulated Amortization | -219 | |
Net Book Value of Amortizable intangible assets, net | 219 | |
Other [Member] | ||
Intangible Assets Net Excluding Goodwill [Line Items] | ||
Cost | 96 | 96 |
Accumulated Amortization | -96 | -77 |
Net Book Value of Amortizable intangible assets, net | 19 | |
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 | $8,600 | $11,233 |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||
Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Sep. 30, 2014 | |
Impairment Charges [Line Items] | |||||||
Amortization expense from continuing operations | $800,000 | $1,200,000 | $1,300,000 | ||||
Trade name impairment charge | 11,600,000 | 10,000,000 | 36,209,000 | 22,691,000 | 127,007,000 | ||
Fair value of trade name impairment charge | 9,819,000 | 12,817,000 | 9,819,000 | ||||
Percentage change in discount rate | 1.00% | ||||||
Discount Rate [Member] | |||||||
Impairment Charges [Line Items] | |||||||
Change in fair value | 100,000 | ||||||
Maximum [Member] | |||||||
Impairment Charges [Line Items] | |||||||
Estimated useful lives of intangible assets, in years | 1 year | ||||||
Sanford-Brown Trade Name [Member] | |||||||
Impairment Charges [Line Items] | |||||||
Determining fair value of discount rates | 25.00% | ||||||
Royalty rates | 0.50% | ||||||
Fair value terminal growth rates | 2.00% | ||||||
Trade name impairment charge | 700,000 | 1,500,000 | |||||
Fair value of trade name impairment charge | $1,700,000 | $1,700,000 |
Restructuring_Charges_Accrual_
Restructuring Charges - Accrual for Severance and Related Costs (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Restructuring and Related Activities [Abstract] | ||||
Beginning of Period | $3,243 | $5,574 | ||
Severance and related charges | 3,524 | [1] | 5,084 | [1] |
Payments | -2,885 | -6,665 | ||
Non-cash adjustments | -1,181 | [2] | -750 | [2] |
End of Period | $2,701 | $3,243 | ||
[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, 2014 | Dec. 31, 2013 | ||
Restructuring Acquisition And Integration Charges [Line Items] | ||||
Severance and related expenses | $3,524 | [1] | $5,084 | [1] |
CTU [Member] | ||||
Restructuring Acquisition And Integration Charges [Line Items] | ||||
Severance and related expenses | 544 | |||
AIU [Member] | ||||
Restructuring Acquisition And Integration Charges [Line Items] | ||||
Severance and related expenses | 103 | 213 | ||
University Group [Member] | ||||
Restructuring Acquisition And Integration Charges [Line Items] | ||||
Severance and related expenses | 647 | 213 | ||
Career Colleges [Member] | ||||
Restructuring Acquisition And Integration Charges [Line Items] | ||||
Severance and related expenses | 1,093 | 1,351 | ||
Corporate and Other [Member] | ||||
Restructuring Acquisition And Integration Charges [Line Items] | ||||
Severance and related expenses | 1,087 | 2,088 | ||
Subtotal [Member] | ||||
Restructuring Acquisition And Integration Charges [Line Items] | ||||
Severance and related expenses | 2,827 | 3,652 | ||
Transitional Group [Member] | ||||
Restructuring Acquisition And Integration Charges [Line Items] | ||||
Severance and related expenses | $697 | $1,432 | ||
[1] | Includes payments related to COBRA and outplacement services which are assumed to be completed by the third month following an employee's departure. |
Restructuring_Charges_Addition
Restructuring Charges - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restructuring and Related Activities [Abstract] | ||
Accrual for severance and related charges | $1.70 | $1.70 |
Long term amount | 1 | 1.5 |
Accrued retention bonuses | 0.7 | |
Amount recorded ratably over the period retained | 0.9 | |
Gross remaining lease obligations | $12 | |
Lease expiration teach out campuses | 2021 |
Credit_Agreement_Additional_In
Credit Agreement - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Oct. 31, 2014 | |
Debt Disclosure [Abstract] | ||
Revolving credit facility | $120,000,000 | $120,000,000 |
Revolving credit facility maturity date | 30-Jun-16 | |
Number of days for pre-payment notice | 3 days | |
Number of days for termination notice | 5 days | |
Minimum cash under covenant term | 190,000,000 | |
Loans disbursed under Credit Agreement secured by cash, percentage | 100.00% | |
Credit facility borrowings | $10,000,000 |
Credit_Agreement_Schedule_of_U
Credit Agreement - Schedule of U.S. Credit Agreement (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Credit Agreement: | ||||
Credit facility borrowings | $10,000 | |||
U.S. Credit Agreement [Member] | ||||
Credit Agreement: | ||||
Credit facility remaining availability | 98,437 | 70,000 | ||
Credit facility borrowings | 10,000 | |||
Outstanding letters of credit | 11,563 | [1],[2] | 12,318 | [1],[2] |
Availability of additional letters of credit | 8,437 | [3] | 7,682 | [3] |
Weighted average daily revolving credit borrowings for the year ended | $9 | $40 | ||
Weighted average annual interest rate | 1.67% | 5.25% | ||
Commitment fee rate | 0.25% | 0.25% | ||
Letter of credit fee rate | 0.75% | 0.75% | ||
[1] | Represents letters of credit which are fully collateralized with $11.6 million and $12.6 million of restricted cash as of December 31, 2014 and 2013, respectively. | |||
[2] | As of December 31, 2014, outstanding letters of credit not related to the Credit Agreement totaled $1.4 million, which amount is fully collateralized with restricted cash, which is in addition to the $11.6 million reflected above. | |||
[3] | The letters of credit sublimit of $20.0 million under the Credit Agreement is part of, not in addition to, the $120.0 million aggregate commitments. |
Credit_Agreement_Schedule_of_U1
Credit Agreement - Schedule of U.S. Credit Agreement (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Oct. 31, 2014 | Dec. 31, 2013 |
Line of Credit Facility [Line Items] | |||
Letter of credit collateralized of restricted cash | $11,600,000 | $12,600,000 | |
Letters of credit sub limited | 120,000,000 | 120,000,000 | |
Letter of credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Letters of credit outstanding | 1,300,000 | ||
Letters of credit sub limited | $20,000,000 |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Apr. 22, 2011 | Dec. 31, 2013 | Jan. 13, 2012 | 23-May-12 | Apr. 10, 2008 | Mar. 05, 2008 | Jul. 14, 2008 |
Student | Findings | Members | Claim | Claim | Employees | |||
Loss Contingencies [Line Items] | ||||||||
Accrual for legal fees and settlements | $2.30 | $20.30 | ||||||
Payment for legal settlement | 17 | |||||||
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 | |||||||
Surrett [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
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 | 6/20/11 | |||||||
Number of individuals WCI file motion to compel arbitration | 1,062 | |||||||
False Claims Act [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of former employees who filed complaint | 4 | |||||||
OIG Audit [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Potential liability related to audit | $0.80 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
U.S | ($72,504) | ($88,103) | ($64,913) |
Foreign | 522 | -3,876 | |
PRETAX LOSS | ($72,504) | ($87,581) | ($68,789) |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Federal | ($10,168) | $31,010 | $18,849 |
State and local | -346 | 677 | 4,011 |
Total current (benefit) provision | -10,514 | 31,687 | 22,860 |
Federal | 13,445 | 1,023 | -25,982 |
State and local | 805 | -2,566 | -826 |
Total deferred provision (benefit) | 14,250 | -1,543 | -26,808 |
Total provision for (benefit from) income taxes | $3,736 | $30,144 | ($3,948) |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
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 | -4.30% | -4.00% | -4.10% |
Nondeductible goodwill | 1.10% | 3.50% | 39.60% |
Valuation allowance | 39.00% | 86.20% | 2.40% |
Federal Audit Settlement | 4.50% | ||
Tax credits | -6.20% | ||
Other | -0.10% | -10.10% | -8.60% |
Effective income tax rate | 5.20% | 34.40% | -5.70% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Contingency [Line Items] | |||
Decrease in effective tax rate due to valuation allowance, percentage | 39.00% | 86.20% | 2.40% |
Decrease in effective tax rate due to valuation allowance, amount | $71,800,000 | $80,500,000 | |
Increase in effective tax rate | 13.20% | 6.80% | |
Effective income tax rate include non-deductible goodwill and asset impairment charge | 73,600,000 | ||
Nondeductible goodwill | 1.10% | 3.50% | 39.60% |
Unrecognized tax benefits that would impact effective tax rate | 8,000,000 | 12,700,000 | |
Short-term reserves | 1,400,000 | ||
Long-term reserves | 7,900,000 | ||
Interest and penalties | 2,820,000 | 3,107,000 | 3,794,000 |
Gross unrecognized tax benefits change range, minimum | 0 | ||
Gross unrecognized tax benefits change range, maximum | 2,000,000 | ||
Net operating loss carry forwards, for state income tax purposes | 247,900,000 | ||
Net operating loss carry forwards, for federal income tax purposes | 63,900,000 | ||
Increase in deferred tax valuation allowance | 67,500,000 | 82,900,000 | |
Total deferred tax valuation allowance | 71,800,000 | 72,200,000 | |
Foreign tax credit | 6,300,000 | ||
Operating loss carry forwards | 34,067,000 | 7,220,000 | |
Total valuation allowance | 150,400,000 | ||
Decrease in valuation allowance deferred tax adjustments | 4,300,000 | ||
Domestic Country [Member] | |||
Income Tax Contingency [Line Items] | |||
Operating loss carrybacks | 97,500,000 | ||
Tax refund due to carryback of losses | 14,100,000 | ||
Increase in overall domestic loss account | 52,300,000 | ||
Foreign Tax Authority [Member] | |||
Income Tax Contingency [Line Items] | |||
Reduction in tax attributable to future domestic income | 18,300,000 | ||
State and Local Jurisdiction [Member] | |||
Income Tax Contingency [Line Items] | |||
Operating loss carrybacks | 3,500,000 | ||
Tax refund due to carryback of losses | 200,000 | ||
Maximum [Member] | |||
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest benefit/expense recognized | 100,000 | 700,000 | 500,000 |
Continuing Operation [Member] | |||
Income Tax Contingency [Line Items] | |||
Total valuation allowance | 96,300,000 | ||
Discontinued Operation [Member] | |||
Income Tax Contingency [Line Items] | |||
Total valuation allowance | $54,100,000 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Gross unrecognized tax benefits, beginning of the year | $13,900 | $24,479 | $29,892 |
Additions for tax positions of prior years | 129 | 3,582 | |
Reductions for tax positions of prior years | -3,548 | ||
Additions for tax positions related to the current year | 931 | 813 | 958 |
Reductions due to settlements | -4,064 | -13,707 | -2,531 |
Reductions due to lapse of applicable statute of limitations | -1,578 | -1,267 | -292 |
Subtotal | 9,318 | 13,900 | 24,479 |
Interest and penalties | 2,820 | 3,107 | 3,794 |
Total gross unrecognized tax benefits, end of the year | $12,138 | $17,007 | $28,273 |
Income_Taxes_Schedule_of_Compo
Income Taxes - Schedule of Components of Deferred Income Tax Assets and Liabilities for Continuing Operations (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Accrued occupancy | $1,728 | $1,633 |
Deferred rent obligations | 9,248 | 10,095 |
Foreign tax credits | 32,998 | 12,026 |
Valuation allowance foreign tax credits | -6,264 | -3,116 |
Compensation and employee benefits | 14,225 | 17,947 |
Tax net operating loss carry forwards | 34,067 | 7,220 |
Valuation allowance | -34,067 | -7,220 |
Allowance for doubtful accounts | 2,269 | 1,201 |
Covenant not-to-compete | 37 | 70 |
Accrued settlements and legal | 828 | 1,904 |
Deferred compensation | 1,777 | 498 |
Accrued restructuring and severance | 1,070 | 2,057 |
Equity method for investments | 19 | |
General business tax credits | 450 | |
Depreciation and amortization | 142 | |
Other | 822 | 1,575 |
Valuation allowance deferred tax assets | -55,995 | -8,250 |
Total deferred income tax assets | 3,354 | 37,640 |
Depreciation and amortization | 19,387 | |
Other | 3,354 | 4,003 |
Total deferred income tax liabilities | 3,354 | 23,390 |
Net deferred income tax assets | $14,250 |
Income_Taxes_Schedule_of_Net_D
Income Taxes - Schedule of Net Deferred Income Tax Assets for Continuing Operations (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Income Tax Disclosure [Abstract] | |
Current deferred income tax assets, net | $3,606 |
Non-current deferred income tax assets, net | 10,644 |
Net deferred income tax assets | $14,250 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 6 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issuable upon exercise of outstanding options | 3,781,964 | 3,900,435 | 2,591,887 | 3,353,462 | |
Number of shares to reduce shares available to grant by upon vesting of restricted stock units | 598,892 | 760,183 | 1,998,224 | 1,796,747 | |
Number of shares to reduce shares available to grant by upon vesting of deferred stock units | 116,952 | 0 | |||
Estimated pretax compensation expense | $5 | ||||
Estimated pretax compensation expenses expiration, years | 4 years | ||||
Service period in years | 4 years | ||||
Restricted stock awards settled in stock exercisable in percentage | 25.00% | ||||
Restricted stock awards settled in cash exercisable in percentage | 25.00% | ||||
Stock compensation and recognized liability | 4.8 | ||||
Long-term incentive, cash-based awards | 3 years | ||||
Performance unit award expenses | $3.50 | $1.10 | |||
Volatility assumptions for estimating the fair value of stock options minimum | 72.90% | ||||
Volatility assumptions for estimating the fair value of stock options maximum | 74.00% | ||||
2008 Incentive Compensation Plan [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 | 6,100,000 | ||||
Shares issuable upon exercise of outstanding options | 3,800,000 | ||||
Non-Employee Directors' Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period in years | 10 years | ||||
Vesting period in years | 4 | ||||
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee stock options exercisable in percentage | 25.00% | ||||
Service period in years | 4 years | ||||
Expiration period in years | 10 years | ||||
Restricted Stock Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares to reduce shares available to grant by upon vesting of restricted stock units | 42,752 | 221,562 | 854,291 | 1,796,747 | |
Service period in years | 4 years | ||||
Deferred Stock Units to be Settled in Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Service period in years | 3 years | ||||
Restricted Stock Units RSU [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares to reduce shares available to grant by upon vesting of restricted stock units | 556,140 | 538,621 | 1,143,933 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Beginning balance of Outstanding, Options | 3,900,435 | 2,591,887 | 3,353,462 |
Granted, Options | 746,318 | 1,934,005 | 534,895 |
Exercised, Options | -225,000 | -1,275 | |
Forfeited, Options | -299,577 | -261,366 | -196,400 |
Cancelled, Options | -340,212 | -362,816 | -1,100,070 |
Ending balance of Outstanding, Options | 3,781,964 | 3,900,435 | 2,591,887 |
Beginning balance of Outstanding, Weighted Average Exercise Price | $15.15 | $25.96 | $27.79 |
Exercisable, Options | 2,138,086 | ||
Granted, Weighted Average Exercise Price | $6.89 | $2.58 | $7.91 |
Exercised, Weighted Average Exercise Price | $2.72 | $3.08 | |
Forfeited, Weighted Average Exercise Price | $4.94 | $5.19 | $18.52 |
Cancelled, Weighted Average Exercise Price | $39.49 | $31.60 | $24.09 |
Ending balance of Outstanding, Weighted Average Exercise Price | $12.88 | $15.15 | $25.96 |
Exercisable, Weighted Average Exercise Price | $18.87 | ||
Outstanding, Weighted Average Remaining Contractual Term | 5 years 9 months 18 days | ||
Exercisable, Weighted Average Remaining Contractual Term | 4 years | ||
Exercised, Aggregate Intrinsic Value | $721 | $3 | |
Outstanding, Aggregate Intrinsic Value | 6,118 | ||
Exercisable, Aggregate Intrinsic Value | $2,372 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Number of Options Outstanding | 3,781,964 | 3,900,435 | 2,591,887 | 3,353,462 |
Options Outstanding, Weighted Average Exercise Price | $12.88 | $15.15 | $25.96 | $27.79 |
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 5 years 9 months 18 days | |||
Options Exercisable, Number Exercisable | 2,138,086 | |||
Options Exercisable, Weighted Average Exercise Price | $18.87 | |||
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) | 8 years 3 months 7 days | |||
Options Exercisable, Number Exercisable | 161,157 | |||
Options Exercisable, Weighted Average Exercise Price | $2.20 | |||
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) | 8 years 7 months 10 days | |||
Options Exercisable, Number Exercisable | 26,403 | |||
Options Exercisable, Weighted Average Exercise Price | $2.64 | |||
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 | 403,504 | |||
Options Outstanding, Weighted Average Exercise Price | $2.72 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 4 years 10 months 17 days | |||
Options Exercisable, Number Exercisable | 269,626 | |||
Options Exercisable, Weighted Average Exercise Price | $2.72 | |||
Range of Exercise Prices $2.82 - $6.81 [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 | $6.81 | |||
Options Outstanding, Number of Options Outstanding | 628,327 | |||
Options Outstanding, Weighted Average Exercise Price | $5.49 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 8 years 8 months 19 days | |||
Options Exercisable, Number Exercisable | 148,344 | |||
Options Exercisable, Weighted Average Exercise Price | $4.62 | |||
Range of Exercise Prices $7.33 - $8.63 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | $7.33 | |||
Range of Exercise Prices, Maximum | $8.63 | |||
Options Outstanding, Number of Options Outstanding | 590,500 | |||
Options Outstanding, Weighted Average Exercise Price | $7.98 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 6 years 11 days | |||
Options Exercisable, Number Exercisable | 132,933 | |||
Options Exercisable, Weighted Average Exercise Price | $8.63 | |||
Range of Exercise Prices $13.32 - $22.04 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | $13.32 | |||
Range of Exercise Prices, Maximum | $22.04 | |||
Options Outstanding, Number of Options Outstanding | 503,112 | |||
Options Outstanding, Weighted Average Exercise Price | $19.12 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 3 years 11 months 12 days | |||
Options Exercisable, Number Exercisable | 484,459 | |||
Options Exercisable, Weighted Average Exercise Price | $19.02 | |||
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 | 413,564 | |||
Options Outstanding, Weighted Average Exercise Price | $27.57 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 4 years 11 months 23 days | |||
Options Exercisable, Number Exercisable | 413,564 | |||
Options Exercisable, Weighted Average Exercise Price | $27.57 | |||
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 | 454,350 | |||
Options Outstanding, Weighted Average Exercise Price | $33.18 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 1 year 3 months 7 days | |||
Options Exercisable, Number Exercisable | 454,350 | |||
Options Exercisable, Weighted Average Exercise Price | $33.18 | |||
Range of Exercise Prices $34.86 - $37.76 [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 | $37.76 | |||
Options Outstanding, Number of Options Outstanding | 46,750 | |||
Options Outstanding, Weighted Average Exercise Price | $35.30 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 8 months 12 days | |||
Options Exercisable, Number Exercisable | 46,750 | |||
Options Exercisable, Weighted Average Exercise Price | $35.30 | |||
Range of Exercise Prices $38.28 - $38.28 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Minimum | $38.28 | |||
Range of Exercise Prices, Maximum | $38.28 | |||
Options Outstanding, Number of Options Outstanding | 500 | |||
Options Outstanding, Weighted Average Exercise Price | $38.28 | |||
Options Outstanding, Weighted Average Remaining Contractual Term (in Years) | 6 months 4 days | |||
Options Exercisable, Number Exercisable | 500 | |||
Options Exercisable, Weighted Average Exercise Price | $38.28 |
ShareBased_Compensation_Schedu
Share-Based Compensation - Schedule of Information with Respect to all Outstanding Restricted Stock (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance of Outstanding Shares | 760,183 | 1,998,224 | 1,796,747 |
Granted, Shares | 318,940 | 43,313 | 1,416,832 |
Vested, Shares | -271,778 | -515,066 | -374,260 |
Forfeited, Shares | -208,453 | -766,288 | -841,095 |
Ending balance of Outstanding Shares | 598,892 | 760,183 | 1,998,224 |
Restricted Stock Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance of Outstanding Shares | 221,562 | 854,291 | 1,796,747 |
Vested, Shares | -136,133 | -208,461 | -374,260 |
Forfeited, Shares | -42,677 | -424,268 | -568,196 |
Ending balance of Outstanding Shares | 42,752 | 221,562 | 854,291 |
Beginning balance of Outstanding, Weighted Average Grant-Date Fair Value Per Share | 22.19 | 24.74 | 24.74 |
Vested, Weighted Average Grant-Date Fair Value Per Share | 22.94 | 23.1 | 24.74 |
Forfeited, Weighted Average Grant-Date Fair Value Per Share | 20.87 | 27.01 | 24.73 |
Ending balance of Outstanding, Weighted Average Grant-Date Fair Value Per Share | 21.63 | 22.19 | 24.74 |
Restricted Stock Units RSU [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance of Outstanding Shares | 538,621 | 1,143,933 | |
Granted, Shares | 318,940 | 43,313 | 1,416,832 |
Vested, Shares | -135,645 | -306,605 | |
Forfeited, Shares | -165,776 | -342,020 | -272,899 |
Ending balance of Outstanding Shares | 556,140 | 538,621 | 1,143,933 |
Beginning balance of Outstanding, Weighted Average Grant-Date Fair Value Per Share | 8.3 | 8.27 | |
Granted, Weighted Average Grant-Date Fair Value Per Share | 6.57 | 2.72 | 8.32 |
Vested, Weighted Average Grant-Date Fair Value Per Share | 8.61 | 8.6 | |
Forfeited, Weighted Average Grant-Date Fair Value Per Share | 7.9 | 7.22 | 8.53 |
Ending balance of Outstanding, Weighted Average Grant-Date Fair Value Per Share | 7.35 | 8.3 | 8.27 |
ShareBased_Compensation_Schedu1
Share-Based Compensation - Schedule of Deferred Stock Units to be Settled in Shares (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Beginning balance of Outstanding Shares | 0 |
Granted, Shares | 116,952 |
Vested, Shares | 0 |
Forfeited, Shares | 0 |
Ending balance of Outstanding Shares | 116,952 |
Beginning balance of Weighted Average Grant-Date Fair Value Per Unit | $0 |
Granted, Weighted Average Grant-Date Fair Value Per Unit | $4.39 |
Vested, Weighted Average Grant-Date Fair Value Per Unit | $0 |
Forfeited, Weighted Average Grant-Date Fair Value Per Unit | $0 |
Ending balance of Weighted Average Grant-Date Fair Value Per Unit | $4.39 |
ShareBased_Compensation_Schedu2
Share-Based Compensation - Schedule of Restricted Stock Units to be Settled in Cash (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Beginning balance of Outstanding, Stock Units to be Settled in Cash | 2,288,915 | |
Stock Units to be Settled in Cash, Granted | 981,136 | 2,938,283 |
Stock Units to be Settled in Cash, Vested | -755,656 | |
Stock Units to be Settled in Cash, Forfeited | -671,940 | -649,368 |
Ending balance of Outstanding, Stock Units to be Settled in Cash | 1,842,455 | 2,288,915 |
ShareBased_Compensation_Summar1
Share-Based Compensation - Summary of Stock Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation expense | $9,046 | $10,248 | $9,544 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation expense | 1,372 | 2,308 | 2,907 |
Restricted Stock or Units Settled in Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation expense | 2,865 | 4,339 | 6,637 |
Restricted Stock Units to be Settled in Cash [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation expense | 4,514 | 3,452 | |
Stock Appreciation Rights Settled in Cash [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation expense | $295 | $149 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.40% | 1.10% | 0.60% |
Weighted average volatility | 73.00% | 64.60% | 68.40% |
Expected life (in years) | 4 years 3 months 18 days | 5 years 7 months 6 days | 5 years 2 months 12 days |
Weighted average grant date fair value per share of options granted | $3.89 | $1.47 | $4.10 |
Weighted_Average_Common_Shares1
Weighted Average Common Shares - Additional Information (Detail) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||
Anti-dilutive awards excluded from computations of diluted earnings per share | 0 | 0 | 0 |
Weighted average number of shares issued | 0.1 | 0.4 | 0.2 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
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 | $3,800,000 | $4,600,000 | $11,900,000 |
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 | 3.1 | ||
0-2% Contribution [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of amount contributed to defined contribution retirement savings plan | 50.00% | 50.00% | 100.00% |
2-4% Contribution [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of amount contributed to defined contribution retirement savings plan | 25.00% | 25.00% | 50.00% |
Minimum number of hours worked | 1000 hours | ||
Employee Stock Purchase Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Authorized to grant the common stock under the employee stock purchase plan | 4 |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | Dec. 31, 2014 |
CTU [Member] | |
Sales Information [Line Items] | |
Students enrolled expressed as percentage of enrollment | 49.00% |
AIU [Member] | |
Sales Information [Line Items] | |
Students enrolled expressed as percentage of enrollment | 28.00% |
Career Colleges [Member] | |
Sales Information [Line Items] | |
Students enrolled expressed as percentage of enrollment | 21.00% |
Fully Online [Member] | CTU [Member] | |
Sales Information [Line Items] | |
Percentage of enrollment | 90.00% |
Fully Online [Member] | AIU [Member] | |
Sales Information [Line Items] | |
Percentage of enrollment | 90.00% |
Fully Online [Member] | Career Colleges [Member] | |
Sales Information [Line Items] | |
Percentage of enrollment | 15.00% |
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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $174,207 | $182,825 | $186,172 | $198,154 | $199,373 | $199,079 | $212,574 | $228,655 | $741,358 | $839,681 | $1,019,903 |
Operating (loss) income | -7,784 | -31,732 | -11,251 | -21,949 | -14,429 | -30,563 | -30,279 | -5,570 | -72,716 | -80,841 | -69,690 |
Depreciation and amortization | 36,019 | 45,155 | 48,352 | ||||||||
Capital Expenditures | 13,156 | 19,636 | 37,944 | ||||||||
Total Assets | 573,534 | 805,045 | 573,534 | 805,045 | |||||||
CTU [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 336,573 | 346,086 | 360,369 | ||||||||
Operating (loss) income | 69,492 | 65,078 | 56,155 | ||||||||
Depreciation and amortization | 2,627 | 2,828 | 3,321 | ||||||||
Capital Expenditures | 628 | 158 | 1,401 | ||||||||
Total Assets | 73,458 | 75,275 | 73,458 | 75,275 | |||||||
AIU [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 198,896 | 231,606 | 304,208 | ||||||||
Operating (loss) income | -9,412 | -5,556 | 20,896 | ||||||||
Depreciation and amortization | 2,329 | 3,069 | 4,249 | ||||||||
Capital Expenditures | 916 | 122 | 1,746 | ||||||||
Total Assets | 51,755 | 54,426 | 51,755 | 54,426 | |||||||
University Group [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 535,469 | 577,692 | 664,577 | ||||||||
Operating (loss) income | 60,080 | 59,522 | 77,051 | ||||||||
Depreciation and amortization | 4,956 | 5,897 | 7,570 | ||||||||
Capital Expenditures | 1,544 | 280 | 3,147 | ||||||||
Total Assets | 125,213 | 129,701 | 125,213 | 129,701 | |||||||
Career Colleges [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 172,833 | 196,990 | 243,186 | ||||||||
Operating (loss) income | -73,753 | -68,652 | -84,663 | ||||||||
Depreciation and amortization | 9,227 | 10,963 | 11,468 | ||||||||
Capital Expenditures | 4,620 | 5,905 | 4,431 | ||||||||
Total Assets | 29,365 | 53,791 | 29,365 | 53,791 | |||||||
Corporate and Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 230 | 55 | |||||||||
Operating (loss) income | -21,169 | -33,600 | -7,699 | ||||||||
Depreciation and amortization | 17,455 | 22,574 | 22,639 | ||||||||
Capital Expenditures | 4,545 | 6,272 | 16,481 | ||||||||
Total Assets | 332,672 | 491,821 | 332,672 | 491,821 | |||||||
Subtotal [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 708,532 | 774,682 | 907,818 | ||||||||
Operating (loss) income | -34,842 | -42,730 | -15,311 | ||||||||
Depreciation and amortization | 31,638 | 39,434 | 41,677 | ||||||||
Capital Expenditures | 10,709 | 12,457 | 24,059 | ||||||||
Total Assets | 487,250 | 675,313 | 487,250 | 675,313 | |||||||
Transitional Group [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 32,826 | 64,999 | 112,085 | ||||||||
Operating (loss) income | -37,874 | -38,111 | -54,379 | ||||||||
Depreciation and amortization | 4,381 | 5,721 | 6,675 | ||||||||
Capital Expenditures | 155 | 346 | 2,412 | ||||||||
Total Assets | 7,990 | 13,805 | 7,990 | 13,805 | |||||||
Discontinued Operation [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Capital Expenditures | 2,292 | 6,833 | 11,473 | ||||||||
Total Assets | $78,294 | $115,927 | $78,294 | $115,927 |
Segment_Reporting_Summary_Fina1
Segment Reporting - Summary Financial Information by Reporting Segment (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information [Line Items] | |||||||
Asset impairment charge | $11,500,000 | $7,000,000 | $16,898,000 | $8,681,000 | $86,606,000 | ||
Goodwill , trade name and asset impairment charges | 11,600,000 | 10,000,000 | 36,209,000 | 22,691,000 | 127,007,000 | ||
Income from insurance recovery | 8,600,000 | ||||||
Settlement of a legal matter | 15,500,000 | ||||||
Career Colleges [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Asset impairment charge | 14,500,000 | ||||||
Goodwill , trade name and asset impairment charges | 2,200,000 | 4,700,000 | 53,000,000 | ||||
Settlement of a legal matter | 8,800,000 | ||||||
Corporate and Other [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Income from insurance recovery | 8,600,000 | 19,000,000 | |||||
Transitional Group [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Goodwill , trade name and asset impairment charges | 3,100,000 | 32,600,000 | |||||
Settlement of a legal matter | $1,700,000 |
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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue (1) | $174,207 | $182,825 | $186,172 | $198,154 | $199,373 | $199,079 | $212,574 | $228,655 | $741,358 | $839,681 | $1,019,903 |
Operating loss (1) | -7,784 | -31,732 | -11,251 | -21,949 | -14,429 | -30,563 | -30,279 | -5,570 | -72,716 | -80,841 | -69,690 |
Net loss | ($25,488) | ($47,968) | ($46,564) | ($58,143) | ($30,606) | ($87,064) | ($31,390) | ($15,203) | ($178,163) | ($164,263) | ($142,796) |
Net loss per share (2) Basic and Diluted | ($0.38) | ($0.71) | ($0.69) | ($0.87) | ($0.46) | ($1.30) | ($0.47) | ($0.23) | ($2.65) | ($2.46) | ($2.15) |
Quarterly_Financial_Summary_Un3
Quarterly Financial Summary (Unaudited) - Schedule of Quarterly Financial Summary (Parenthetical) (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 03, 2013 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | |
Schedule Of Quarterly Financial Summary [Line Items] | |||||||||||
Trade name impairment charges | $14,200,000 | $3,000,000 | $4,000,000 | $14,200,000 | |||||||
Loss on sale of business | 6,700,000 | -6,905,000 | |||||||||
Goodwill and asset impairment charges, discontinued operations | 10,300,000 | 1,500,000 | 1,000,000 | 10,700,000 | 2,300,000 | 10,300,000 | 1,000,000 | 7,400,000 | |||
Decrease in revenue | 9,400,000 | ||||||||||
Expense for bad debts | 7,500,000 | ||||||||||
Loss from Discontinuing Operations | 500,000 | ||||||||||
Valuation allowances against deferred tax assets | 71,800,000 | 72,200,000 | 71,800,000 | 72,200,000 | |||||||
Amount from legal settlement | 15,500,000 | ||||||||||
Asset impairment charges | 11,500,000 | 7,000,000 | 16,898,000 | 8,681,000 | 86,606,000 | ||||||
Realized gain on sale | 130,100,000 | ||||||||||
Insurance recovery | 8,600,000 | ||||||||||
Goodwill and asset impairment charges | 11,600,000 | 10,000,000 | 36,209,000 | 22,691,000 | 127,007,000 | ||||||
International Segment Sale [Member] | |||||||||||
Schedule Of Quarterly Financial Summary [Line Items] | |||||||||||
Realized gain on sale | $130,100,000 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 12, 2015 |
Schedule of Reverse Stock Split [Line Items] | ||||
Amount paid in consideration for cancellation of employment | $9,046 | $10,248 | $9,544 | |
Separation Agreement [Member] | Subsequent Event [Member] | ||||
Schedule of Reverse Stock Split [Line Items] | ||||
Amount paid in consideration for cancellation of employment | $2,500 |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation Allowance for Deferred Tax Assets [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation allowance, Beginning balance | $82,876 | $6,057 | $4,327 |
Valuation allowance, Additions/Charges to Expense | 71,826 | 80,536 | 4,955 |
Valuation allowance, Deductions/ Other | -4,318 | -3,717 | -3,225 |
Valuation allowance, Ending balance | 150,384 | 82,876 | 6,057 |
Valuation Allowance for Accounts Receivable [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation allowance, Beginning balance | 17,570 | 21,524 | 26,371 |
Valuation allowance, Additions/Charges to Expense | 15,850 | 20,418 | 21,914 |
Valuation allowance, Deductions/ Other | -18,903 | -24,372 | -26,761 |
Valuation allowance, Ending balance | $14,517 | $17,570 | $21,524 |