Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Oct. 16, 2014 | Dec. 31, 2013 |
Document And Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'Education Management Corporation | ' | ' |
Entity Central Index Key | '0000880059 | ' | ' |
Current Fiscal Year End Date | '--06-30 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 126,046,466 | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $200.70 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $270,567 | $130,695 |
Restricted cash | 271,681 | 271,340 |
Total cash, cash equivalents and restricted cash | 542,248 | 402,035 |
Student receivables, net of allowances of $143,335 and $174,760 (Note 6) | 210,182 | 206,406 |
Notes, advances and other receivables | 57,908 | 32,547 |
Deferred income taxes (Note 11) | 24,502 | 76,927 |
Prepaid income taxes | 5,283 | 20,854 |
Other current assets | 35,843 | 32,850 |
Total current assets | 875,966 | 771,619 |
Property and equipment, net (Note 4) | 429,457 | 525,625 |
Goodwill (Note 5) | 343,406 | 777,153 |
Intangible assets, net (Note 5) | 169,823 | 300,435 |
Other long-term assets | 58,384 | 48,524 |
Total assets | 1,877,036 | 2,423,356 |
Current liabilities: | ' | ' |
Revolving credit facility (Note 8) | 219,890 | 75,000 |
Current portion of long-term debt (Note 8) | 11,875 | 12,076 |
Accounts payable | 38,553 | 32,559 |
Accrued liabilities (Note 7) | 167,282 | 157,417 |
Unearned tuition | 115,869 | 113,371 |
Advance payments | 81,856 | 95,675 |
Total current liabilities | 635,325 | 486,098 |
Long-term debt, less current portion (Note 8) | 1,271,586 | 1,273,164 |
Deferred income taxes (Note 11) | 58,577 | 72,622 |
Deferred rent | 185,795 | 201,202 |
Other long-term liabilities | 10,626 | 34,414 |
Shareholders’ (deficit) equity: | ' | ' |
Common stock, at par | 1,452 | 1,435 |
Additional paid-in capital | 1,815,860 | 1,794,846 |
Treasury stock, at cost | -331,877 | -328,605 |
Accumulated deficit | -1,762,096 | -1,098,179 |
Accumulated other comprehensive loss | -8,212 | -13,641 |
Total shareholders' (deficit) equity | -284,873 | 355,856 |
Total liabilities and shareholders’ (deficit) equity | $1,877,036 | $2,423,356 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Allowances for student receivables | $143,335 | $174,760 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | $503,481 | $595,202 | $593,673 | $580,380 | $595,236 | $638,903 | $654,895 | $609,565 | $639,185 | $702,499 | $737,188 | $682,095 | ' | $2,272,736 | $2,498,599 | $2,760,967 |
Costs and expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Educational services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,373,699 | 1,447,097 | 1,502,356 |
General and administrative | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 667,567 | 689,143 | 762,863 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 152,501 | 164,712 | 158,663 |
Long-lived asset impairments (Notes 4 and 5) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 568,216 | 300,104 | 1,662,288 |
Total costs and expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,761,983 | 2,601,056 | 4,086,170 |
Loss before interest and income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -489,247 | -102,457 | -1,325,203 |
Interest expense, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 128,033 | 124,663 | 110,330 |
Loss on debt refinancing (Note 8) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,200 | 0 | 5,232 | 9,474 |
Loss before income taxes | -95,023 | -499,926 | -2,383 | -19,948 | -9,487 | -254,111 | 53,064 | -21,818 | -1,174,569 | -417,844 | 103,291 | 44,115 | ' | -617,280 | -232,352 | -1,445,007 |
Income tax expense (benefit) (Note 11) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46,637 | 12,038 | -11,437 |
Net (loss) income | ($187,846) | ($467,646) | $1,089 | ($9,514) | ($2,035) | ($260,408) | $31,144 | ($13,091) | ($1,128,725) | ($394,926) | $63,127 | $26,954 | ' | ($663,917) | ($244,390) | ($1,433,570) |
Loss per share: (Note 3) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($5.29) | ($1.96) | ($11.32) |
Diluted (dollars per share) | ($0.69) | ($3.71) | $0.01 | ($0.08) | ($0.02) | ($2.09) | $0.25 | ($0.11) | ($9.51) | ($2.69) | $0.49 | $0.21 | ' | ($5.29) | ($1.96) | ($11.32) |
Weighted average number of shares outstanding: (Note 3) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,504 | 124,560 | 126,659 |
Diluted (shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,504 | 124,560 | 126,659 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Consolidated Statements of Comphrensive Income [Abstract] | ' | ' | ' |
Net loss | ($663,917) | ($244,390) | ($1,433,570) |
Net change in interest rate swaps: | ' | ' | ' |
Periodic revaluation of interest rate swaps, net of tax benefit of $1,252, $1,545 and $8,049 | -1,799 | -2,619 | -13,646 |
Reclassification adjustment for interest recognized in consolidated statements of operations, net of tax expense of $4,658, $4,448 and $4,988 | 7,898 | 7,542 | 8,457 |
Net change in unrecognized loss on interest rate swaps, net of tax | 6,099 | 4,923 | -5,189 |
Foreign currency translation loss | -670 | -527 | -658 |
Other comprehensive income (loss) | 5,429 | 4,396 | -5,847 |
Other comprehensive income (loss) | ($658,488) | ($239,994) | ($1,439,417) |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Consolidated Statements of Comprehensive Income [Abstract] | ' | ' | ' |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | $1,252 | $1,545 | $8,049 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Derivative Interest Included in Net Income, Tax | $4,658 | $4,448 | $4,988 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Cash flows from operating activities: | ' | ' | ' |
Net loss | ($663,917) | ($244,390) | ($1,433,570) |
Adjustments to reconcile net loss to net cash flows from operating activities: | ' | ' | ' |
Depreciation and amortization of property and equipment | 146,158 | 157,871 | 151,023 |
Amortization of intangible assets | 6,343 | 6,841 | 7,640 |
Bad debt expense | 141,946 | 171,850 | 163,926 |
Long-lived asset impairments (Notes 4 and 5) | 568,216 | 300,104 | 1,662,288 |
Amortization of debt issuance costs | 14,160 | 8,460 | 1,071 |
Loss on debt refinancing | 0 | 5,232 | 9,474 |
Share-based compensation | 16,419 | 17,112 | 13,290 |
Non cash adjustments related to deferred rent | -18,654 | -17,477 | -12,956 |
Amortization of deferred gains on sale-leaseback transactions | -2,252 | -1,575 | 0 |
Deferred income taxes | 36,274 | -18,840 | -130,194 |
Changes in assets and liabilities: | ' | ' | ' |
Restricted cash | -341 | -3,460 | -220,367 |
Receivables | -174,163 | -195,336 | -220,319 |
Reimbursements for tenant improvements | 2,457 | 10,054 | 15,307 |
Inventory | -469 | 2,505 | 1,203 |
Other assets | 7,338 | 15,151 | -3,856 |
Accounts Payable | 4,404 | -19,596 | -1,637 |
Accrued liabilities, including income taxes | -1,998 | 6,092 | 20,454 |
Unearned tuition | 2,497 | -2,906 | -23,873 |
Advance payments | -13,772 | -6,385 | -9,754 |
Total adjustments | 734,563 | 435,697 | 1,422,720 |
Net cash flows provided by operating activities | 70,646 | 191,307 | -10,850 |
Cash flows from investing activities: | ' | ' | ' |
Expenditures for long-lived assets | -73,760 | -83,241 | -93,546 |
Proceeds from sale of fixed assets | 9,565 | 65,065 | 0 |
Reimbursements for tenant improvements | -2,457 | -10,054 | -15,307 |
Other | 0 | 2,418 | 0 |
Net cash flows used in investing activities | -66,652 | -25,812 | -108,853 |
Cash flows from financing activities: | ' | ' | ' |
Borrowings under revolving credit facility | 219,890 | 75,000 | 111,300 |
Payments under revolving credit facility | -75,000 | -111,300 | -79,000 |
Repayments of Debt | 0 | -171,953 | 0 |
Principal payments on long-term debt | -12,051 | -12,155 | -11,025 |
Debt issuance costs | 0 | -5,232 | -11,928 |
Issuance of common stock as a result of stock-option exercises | 2,968 | 3 | 2,355 |
Gross excess tax benefit from share-based compensation | 3,417 | 0 | 263 |
Minimum tax withholding requirements upon restricted stock unit vesting | -3,272 | 0 | 0 |
Common stock repurchased for treasury | 0 | 0 | -104,073 |
Net cash flows used in financing activities | 135,952 | -225,637 | -92,108 |
Effect of exchange rate changes on cash and cash equivalents | -74 | -171 | -405 |
Net change in cash and cash equivalents | 139,872 | -60,313 | -212,216 |
Cash and cash equivalents, beginning of period | 130,695 | 191,008 | 403,224 |
Cash and cash equivalents, end of period | 270,567 | 130,695 | 191,008 |
Cash paid (received) during the period for: | ' | ' | ' |
Interest (including swap settlement) | 116,639 | 111,396 | 116,014 |
Income taxes, net of refunds | -1,464 | 46,699 | 114,629 |
Noncash investing activities: | ' | ' | ' |
Capital expenditures in current liabilities | $13,780 | $9,022 | $13,201 |
Consolidated_Statements_Of_Sha
Consolidated Statements Of Shareholders' Equity (USD $) | Total | Common Stock at Par Value | Additional Paid-in Capital | Treasury Stock, at cost | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive Loss | |||
In Thousands, unless otherwise specified | |||||||||
Balance at Jun. 30, 2011 | $2,103,944 | $1,431 | [1] | $1,761,848 | ($226,926) | [1] | $579,781 | ($12,190) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | |||
Net loss | -1,433,570 | 0 | [1] | 0 | 0 | [1] | -1,433,570 | 0 | |
Share-based compensation | 13,290 | 0 | [1] | 13,290 | 0 | [1] | 0 | 0 | |
Exercise of stock-options including net excess tax benefit | 2,597 | 3 | [1] | 2,594 | 0 | [1] | 0 | 0 | |
Common stock repurchased for treasury | -101,679 | 0 | [1] | 0 | -101,679 | [1] | 0 | 0 | |
Other comprehensive income | -5,847 | 0 | [1] | 0 | 0 | [1] | 0 | -5,847 | |
Balance at Jun. 30, 2012 | 578,735 | 1,434 | [1] | 1,777,732 | -328,605 | [1] | -853,789 | -18,037 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | |||
Net loss | -244,390 | 0 | [1] | 0 | 0 | [1] | -244,390 | 0 | |
Share-based compensation | 17,112 | 1 | [1] | 17,111 | 0 | [1] | 0 | 0 | |
Exercise of stock-options | 3 | 0 | [1] | 3 | 0 | [1] | 0 | 0 | |
Other comprehensive income | 4,396 | 0 | [1] | 0 | 0 | [1] | 0 | 4,396 | |
Balance at Jun. 30, 2013 | 355,856 | 1,435 | [1] | 1,794,846 | -328,605 | [1] | -1,098,179 | -13,641 | [2] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | |||
Net loss | -663,917 | 0 | [1] | 0 | 0 | [1] | ' | 0 | |
Share-based compensation | 16,419 | 0 | [1] | 16,419 | 0 | [1] | 0 | 0 | |
Exercise of stock-options | 2,968 | 17 | [1] | 2,951 | 0 | [1] | 0 | 0 | |
Net excess tax benefit from share-based compensation | 1,644 | 0 | [1] | 1,644 | 0 | [1] | 0 | 0 | |
Minimum tax withholding requirements for restricted stock units | -3,272 | 0 | [1] | 0 | -3,272 | [1] | 0 | 0 | |
Other comprehensive income | 5,429 | 0 | [1] | 0 | 0 | [1] | 0 | 5,429 | |
Balance at Jun. 30, 2014 | ($284,873) | $1,452 | [1] | $1,815,860 | ($331,877) | [1] | ($1,762,096) | ($8,212) | [2] |
[1] | There were 600,000,000 authorized shares of $0.01 par value common stock at June 30, 2014 and 2013. Common stock outstanding and treasury stock balances and activity were as follows for the periods indicated: Treasury Shares Net Shares OutstandingJune 30, 201113,333,972 129,811,749Repurchased for treasury5,568,168 (5,568,168)Issued for stock-based compensation plans— 234,226June 30, 201218,902,140 124,477,807Issued for stock-based compensation plans— 123,717June 30, 201318,902,140 124,601,524Issued for stock-based compensation plans— 1,716,419Minimum tax withholding requirements for restricted stock units274,644 (274,644)June 30, 201419,176,784 126,043,299 | ||||||||
[2] | The balance in accumulated other comprehensive loss at June 30, 2014 and 2013 was comprised of $6.6 million and $12.7 million of cumulative unrealized losses on interest rate swaps, net of tax, respectively and $1.6 million and $0.9 million of cumulative foreign currency translation losses, respectively. |
Consolidated_Statements_Of_Sha1
Consolidated Statements Of Shareholders' Equity (Parenthetical) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
In Millions, except Share data, unless otherwise specified | Treasury Stock, at cost | Treasury Stock, at cost | Common Stock | Common Stock | Common Stock | ||
Comprehensive income: | ' | ' | ' | ' | ' | ' | ' |
Cumulative loss on interest rate swaps, tax benefit | $6.60 | $12.70 | ' | ' | ' | ' | ' |
Foreign currency translation loss | $1.60 | $0.90 | ' | ' | ' | ' | ' |
Common stock, shares authorized | 600,000,000 | 600,000,000 | ' | ' | ' | ' | ' |
Common stock, par value | $0.01 | $0.01 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Treasury Stock, Number of Shares Held, Beginning of Period | ' | ' | 18,902,140 | 13,333,972 | ' | ' | ' |
Common Stock, Shares, Outstanding, Beginning of Period | ' | ' | ' | ' | 124,601,524 | 124,477,807 | 129,811,749 |
Repurchased for treasury | ' | ' | ' | 5,568,168 | ' | ' | ' |
Stock Repurchased During Period, Shares | ' | ' | ' | ' | ' | ' | -5,568,168 |
Issued for stock-based compensation plans | ' | ' | ' | ' | 1,716,419 | 123,717 | 234,226 |
Shares Paid for Tax Withholding for Share Based Compensation | ' | ' | 274,644 | ' | -274,644 | ' | ' |
Treasury Stock, Number of Shares Held, End of Period | ' | ' | 19,176,784 | 18,902,140 | ' | ' | ' |
Common Stock, Shares, Outstanding, End of Period | ' | ' | ' | ' | 126,043,299 | 124,601,524 | 124,477,807 |
Basis_of_Presentation
Basis of Presentation | 12 Months Ended |
Jun. 30, 2014 | |
DESCRIPTION OF BUSINESS AND CHANGE IN OWNERSHIP [Abstract] | ' |
Description of Business and Change in Ownership | ' |
DESCRIPTION OF BUSINESS AND CHANGE IN OWNERSHIP | |
Description of Business | |
Education Management Corporation ("EDMC" and collectively with its subsidiaries, the “Company”) is among the largest providers of post-secondary education in North America, with approximately 125,560 enrolled students as of October 2013. The Company offers campus-based education through four different education systems and through online platforms at three of the four education systems, or through a combination of both. These four education systems comprise the Company's reportable segments, which are The Art Institutes, Argosy University, Brown Mackie Colleges and South University. Refer to Note 17, "Segment Reporting" for additional information. | |
The Company is committed to offering quality academic programs and strives to improve the learning experience for its students to help them achieve their educational goals across the spectrum of in-demand careers. The Company's innovative academic programs are designed with an emphasis on employment-focused content and technology that advances education, and are taught primarily by faculty members who, in addition to having appropriate academic credentials, offer practical and relevant professional experience in their respective fields. | |
Ownership | |
On June 1, 2006, the Company was acquired by a consortium of private equity investment funds led by Providence Equity Partners, Goldman Sachs Capital Partners and Leeds Equity Partners (collectively, the “Sponsors”). The acquisition was accomplished through the merger of EM Acquisition Corporation into EDMC, with EDMC surviving the merger (the "Transaction") and was financed by equity invested by the Sponsors and other investors, cash on hand and secured and unsecured borrowings. Refer to Note 8, "Short-Term and Long-Term Debt" for more information. | |
In October 2009, EDMC completed an initial public offering of 23.0 million shares of its common stock, $0.01 par value per share ("Common Stock"), at a per share price of $18.00 (the "Initial Public Offering"). The Sponsors did not sell any of their shares in connection with the Initial Public Offering. | |
In June 2010, the Company’s Board of Directors approved a stock repurchase program under which it could purchase its common stock in the open market, in privately negotiated transactions, through accelerated repurchase programs or in structured share repurchase programs. From the inception of the stock repurchase program through its expiration on December 31, 2012, the Company repurchased 18.9 million shares of its common stock for a total cost of $328.6 million. | |
Government Regulations | |
Each of the Company’s schools located in the United States is recognized by accreditation agencies and by the U.S. Department of Education, enabling students to access federal student loans, grants and other forms of public and private financial aid. Participating institutions are required to administer Title IV program funds in accordance with the Higher Education Act of 1965, as amended (“HEA”), and U.S. Department of Education regulations and must use diligence in approving and disbursing funds and servicing loans. In the event a participating institution does not comply with federal requirements or if student loan default rates are at a level that exceeds certain thresholds set by statute and regulation, that institution could lose its eligibility to participate in Title IV programs or could be required to repay funds determined to have been improperly disbursed. Most of the students who attend the Company’s institutions participate in federal and state financial aid and assistance programs. The percentage of net revenues derived from Title IV programs ranged from approximately 55% to 81%, with a weighted average of approximately 76% in fiscal 2014 compared to a range of 56% to 82%, with a weighted average of approximately 76% in fiscal 2013. | |
Revisions and Reclassifications | |
The goodwill impairment charges from fiscal 2013 and 2012 have been adjusted as further described in Note 5, "Goodwill and Intangible Assets" under "Correction of Immaterial Errors." In addition, certain amounts in prior periods have been reclassified to conform to the fiscal 2014 presentation, with no effect on previously reported net income or shareholders' equity. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Summary of Significant Accounting Policies [Abstract] | ' | |||||||
Summary of Significant Accounting Policies | ' | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||
Basis of Presentation (Including Debt Restructuring) | ||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated. Unless otherwise specified, any reference to a “year” is to a fiscal year ended June 30. | ||||||||
The Company has experienced deteriorating results from operations over the last several fiscal years, which coupled with the use of cash, created uncertainty as to the Company's ability to continue as a going concern. The Company has entered into the following agreements and taken the following actions to mitigate these risks: | ||||||||
• | an amendment agreement dated September 5, 2014 (the "Amendment Agreement"), with the holders of in excess of 98% of the term loan facilities and 100% of the revolving credit facility (collectively, the "Consenting Lenders") pursuant to which, among other things, (i) the maturity on the revolving credit facility was extended from June 1, 2015 to July 2, 2015, (ii) the Consenting Lenders under the revolving credit facility agreed to accept payment of interest in kind rather than cash through June 30, 2015, (iii) the Consenting Lenders holding term loans agreed that no amortization payments will be payable through June 30, 2015 and to accept the payment of interest in kind rather than cash through June 30, 2015, (iv) EDMC became a guarantor and granted a lien on substantially all of its assets to secure the obligations under the agreement, (v) compliance with the financial covenants was waived through June 30, 2015, and (vi) the security agreement governing the credit facility was amended such that the collateral proceeds “waterfall” set forth therein now provides that obligations owing to any lenders that are not Consenting Lenders shall be paid only after satisfaction in full of obligations owing to Consenting Lenders and swap counterparties who have executed the RSA (as defined below); | |||||||
• | a supplemental indenture dated September 5, 2014 (the "Supplemental Indenture"), pursuant to which the Indenture governing the cash pay/PIK notes due 2018 (the "Cash Pay/PIK Notes") was amended (i) to require the Company to offer all holders of the Cash Pay/PIK Notes the opportunity to receive the same consideration in the Debt Restructuring (as defined below) as holders of the Interim Notes (as defined below), (ii) to provide for (a) the release of EDMC’s guarantee and (b) the termination of certain covenants and certain events of default, in each case upon the completion of the exchange of Cash Pay/PIK Notes and Interim Notes contemplated by the Debt Restructuring and (iii) to provide that if Education Management LLC is no longer subject to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, it will not be required to file reports with the Securities and Exchange Commission but instead will be required to distribute annual, quarterly and current reports to the trustee under the Indenture and hold a conference call within 20 business days of furnishing required annual and quarterly reports; | |||||||
• | an exchange agreement dated September 5, 2014 (the "Exchange Agreement"), pursuant to which the holders of 86% of the outstanding Cash Pay/PIK Notes exchanged their Cash Pay/PIK Notes for a like principal amount of new Senior PIK Toggle Notes due 2018 (the "Interim Notes" and together with the Cash Pay/PIK Notes, the "Notes"), whose terms are substantially similar to those of the Cash Pay/PIK Notes, except that their interest is payable entirely in kind for the two interest periods ending September 30, 2014 and March 30, 2015; | |||||||
• | a new indenture dated September 5, 2014 (the "New Indenture"), pursuant to which the Interim Notes were issued; and | |||||||
• | a Restructuring Support Agreement dated September 4, 2014 (the "RSA"), pursuant to which the Consenting Lenders, holders of in excess of 65% of the outstanding Notes (the "Consenting Noteholders"), certain of the Company's swap counter-parties and holders of in excess of 72% of the Company's outstanding common stock (the "Consenting Shareholders") agreed to support a comprehensive debt restructuring ("Debt Restructuring") as described below. | |||||||
Pursuant to the Debt Restructuring: | ||||||||
• | $150 million of revolving loans under the existing revolving credit facility will be repaid in cash at par, with such amount available for re-borrowing under a new revolving credit facility; | |||||||
• | the remaining portion of the Company's $1.5 billion of outstanding indebtedness, including the Interim Notes, will be exchanged for two first lien senior secured term loans due July 2, 2020 in the aggregate principal amount of $400 million, mandatorily convertible preferred stock, optionally convertible preferred stock and warrants for common stock; and | |||||||
• | the Company’s current shareholders will retain their outstanding common stock, which in aggregate will equal 4% of the Company’s outstanding common stock after giving effect to the conversion of all of the preferred stock described above and subject to further dilution by a management incentive plan (the "MIP") and warrants (including those described in the next sentence) to be awarded pursuant to the Debt Restructuring. In addition, current shareholders will receive warrants for 5% of the Company’s common stock (subject to dilution by the MIP). | |||||||
In addition to these actions, management has developed a plan to reduce cash outflows in fiscal 2015 in order to maintain sufficient liquidity to allow the Company to meet its obligations as they become due. While no assurance can be given that management’s plan will be fully implemented in fiscal 2015, based on the agreements executed and management’s projected cash flows for fiscal 2015, management believes that cash flow from operations and available cash on hand, supplemented from time to time with borrowings under the revolving credit facility, will provide adequate funds for ongoing operations, required debt service and other obligations as they become due during the next twelve months. | ||||||||
The accompanying consolidated financial statements have been prepared on the assumption that the Company will continue to operate as a going concern and do not include any adjustments that might result from the Company not being able to continue as a going concern. Accordingly, assets and liabilities are recorded on the basis that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. | ||||||||
Use of Estimates | ||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases these estimates on assumptions that it believes to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. | ||||||||
Cash and Cash Equivalents and Restricted Cash | ||||||||
The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. These investments are stated at cost, which approximates fair value. | ||||||||
The Company’s institutions hold funds from the United States government under various student aid grant and loan programs in separate bank accounts, and serve as trustee for the U.S. Department of Education or respective lender or student borrower, as applicable. The Company does not record funds held in these bank accounts as cash or restricted cash until the authorization and disbursement process has occurred. Once the authorization and disbursement process to the student has been completed, the funds are transferred to unrestricted accounts and become available for use in current operations, except as noted in footnote two to the table below. This transfer generally occurs for the period of the academic term for which such funds were authorized, with no term being more than 16 weeks in length. | ||||||||
Restricted cash consisted of the following at June 30 (in thousands): | ||||||||
2014 | 2013 | |||||||
Cash secured letters of credit (1) | $ | 210,000 | $ | 210,000 | ||||
Title IV funds received in excess of charges applied (2) | 50,406 | 56,595 | ||||||
Surety bonds (3) | 7,275 | — | ||||||
Escrowed in connection with student lending program (4) | 2,500 | 2,500 | ||||||
Endowments (5) | 1,500 | 1,500 | ||||||
Escrowed in connection with operating lease | — | 745 | ||||||
Restricted cash | $ | 271,681 | $ | 271,340 | ||||
(1) Includes liens on certain of the Company's cash deposits, which equal 105% of the aggregate $200.0 million of outstanding letters of credit under the Company's cash secured letter of credit facilities further explained in Note 8, "Short-Term and Long-Term Debt." Such cash is not available for any purpose other than to reimburse drawings under the letters of credit or to pay related fees and obligations. | ||||||||
(2) U.S. Department of Education regulations require Title IV program funds received by the Company’s educational institutions in excess of the charges applied to the relevant students at that time to be, with these students’ permission, maintained and classified as restricted. In addition, some states have similar requirements. Such funds are recorded as restricted cash due to legal restrictions on the use of the funds and as advance payments on the Company’s consolidated balance sheets. The balances also include $35.1 million and $39.3 million at June 30, 2014 and 2013, respectively, related to Title IV amounts that the Company has already received for courses that fully-online students attending Argosy University and South University have not begun. Since these students take classes under a non-term academic structure, the cash is classified as restricted because the Company does not intend to use the funds for operating purposes until a student successfully demonstrates academic progress with respect to each course the student attends in the student’s program of study. | ||||||||
(3) Relates to amounts required to be maintained on deposit in connection with surety bonds primarily provided to state regulatory agencies as described in Note 14, "Commitments and Contingencies." | ||||||||
(4) Relates to an account required to be maintained in connection with the Company's student lending program further described in Note 6, "Student Receivables." | ||||||||
(5) Relates to endowments required by state law at certain of the Company's schools. | ||||||||
Revenue Recognition | ||||||||
The Company’s net revenues consist primarily of tuition and fees, student housing fees, bookstore sales, restaurant sales in connection with culinary programs, workshop fees and sales of related study materials. Net revenues are reduced for student refunds and scholarships. The Company derived approximately 93% of its net revenues from tuition and fees in each of the fiscal years ended June 30, 2014, 2013 and 2012. | ||||||||
The Company bills tuition and housing revenues at the beginning of an academic term and recognizes the revenue on a pro rata basis over the term of instruction or occupancy. Some of the Company’s academic terms have starting and ending dates that differ from the Company’s fiscal quarters. Therefore, at the end of each fiscal quarter, the Company has tuition from academic terms with respect to which the associated revenue has not yet been earned. Such amounts are recorded as unearned tuition, which is a current liability in the accompanying consolidated balance sheets. Advance payments are generally refundable and relate to payments received for future academic periods and are also recorded as a current liability in the accompanying consolidated balance sheets. | ||||||||
If a student withdraws from one of the Company’s schools, the extent of his or her obligation for tuition and fees depends on when that student withdraws during an academic term. The Company reduces the student's obligation depending upon its refund policies, which vary by state and institution and take into account the refund requirements of the U.S. Department of Education, most state education authorities that regulate the Company’s schools, the accrediting commissions that accredit the Company’s schools and the Company’s institutional policies (collectively, “Refund Policies”). In the vast majority of situations, if a student withdrew from school after attending classes for at least 60.0% of a term of instruction, he or she would not be eligible for any reduction in tuition under the Company's Refund Policies. Accordingly, the student would have to pay the Company the balance of tuition and fees that has not been received already either in the form of financial aid or payments from the student. However, if a student withdraws from school prior to attending classes for at least 60.0% of a term of instruction, the Company may reduce the amount of a student's obligation for tuition and fees based on a tiered approach under which, in general, the greater the portion of the academic term that has elapsed at the time the student withdraws, the greater the student’s obligation is to the school for the tuition and fees related to that academic term. | ||||||||
Based on the application of its refund policies, the Company may be entitled to incremental revenue on the day the student withdraws from one of its schools. Prior to fiscal 2014, the Company recorded this incremental revenue, related student receivable and an estimate of the amount it did not expect to collect as bad debt expense during the fiscal quarter a student withdrew. Effective in fiscal 2014, the Company reassesses collectability when a student withdraws from the institution (i.e., is no longer enrolled) and records incremental revenue after a student's withdrawal from school based on cash received. This correction in policy had the effect of reducing net revenues and student receivables by $36.7 million and bad debt expense and the corresponding allowance for doubtful accounts by $33.2 million, which resulted in an increase to the loss before taxes of $3.5 million in the fiscal year ended June 30, 2014. Prior year amounts were not corrected because the effects were not material. | ||||||||
Student Receivables | ||||||||
The Company records student receivables at cost less an estimated allowance for doubtful accounts, which is determined on a quarterly basis based on the likelihood of collection considering students' enrollment status and historical payment experience. Historical collection experience is analyzed by disaggregating the student receivable balances based on predominant risk characteristics, such as whether the student is currently in-school, recently withdrew from school, or has not made a payment for a longer period of time. This level of disaggregation of student receivables results in individual pools of receivables which management believes appropriately differentiates credit risk in the portfolio and provides a reasonable basis to compute the estimate of loss. When certain criteria are met, which is generally when receivables age past the due date by more than four months, and internal collection measures have been taken without success, the accounts of former students are placed with a collection agency. Student accounts that have been placed with a collection agency are almost fully reserved and are written off after collection attempts have been unsuccessful. | ||||||||
During fiscal 2013, the Company reduced the number of days since last payment after which accounts placed with a collection agency are written off. This change did not impact the statement of operations or net student receivables as the applicable accounts were already fully reserved. Refer to Note 6, "Student Receivables," for more information. | ||||||||
Inventories | ||||||||
Inventories consist mainly of textbooks and supplies held for sale to students enrolled in the Company’s educational programs and are presented in other current assets in the accompanying consolidated balance sheets. Cost is determined using the average cost method and inventories are valued at the lower of cost or market. | ||||||||
Leases | ||||||||
The Company leases certain classroom, dormitory and office space, as well as equipment and automobiles under operating leases. Before entering into a new lease, an analysis is performed to determine whether a lease should be classified as capital or operating. | ||||||||
Certain of the Company’s lease agreements include tenant improvement allowances. Once the lease agreement is signed, these tenant improvement allowances are recorded as other current assets with the offset to deferred rent liabilities on the consolidated balance sheets. Concurrent with the expenditures for lease improvements, the Company records increases to leasehold improvement assets in property and equipment. Other current assets are reduced once the landlord reimburses the Company. The deferred rent liabilities related to tenant improvements are amortized over the term of the lease as a reduction to rent expense upon possession of the lease space. | ||||||||
Many of the Company’s lease agreements contain escalation clauses under which, if fixed and determinable, rent expense is recognized on a straight-line basis over the lives of the leases, which generally range from five to 15 years with one or more renewal options. For leases with renewal options, the Company records rent expense over the original lease term, exclusive of the renewal period. When a renewal occurs, the Company records rent expense over the new lease term. | ||||||||
Property and Equipment and Finite-Lived Intangible Assets | ||||||||
Property and equipment is recorded at its cost less accumulated depreciation. Depreciation policies for such assets are as follows: | ||||||||
• | Buildings are depreciated over an estimated useful life of 30 years using the straight-line method; | |||||||
• | Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term, exclusive of any renewal periods, or their estimated useful lives; and | |||||||
• | The remainder of the Company’s property and equipment is depreciated over estimated useful lives ranging from three to 10 years using the straight-line method, depending on the asset. | |||||||
Finite-lived intangible assets primarily relate to curriculum developed for fully-online courses which are amortized over a two-year useful life. | ||||||||
The Company records impairment losses on property and equipment and finite-lived intangible assets when events and circumstances indicate that the undiscounted cash flows estimated to be generated by those assets or asset groups are less than their carrying amounts. Events and circumstances that could trigger an impairment review include changes in the regulatory environment, deteriorating economic conditions or poor operating performance at individual campus locations. Any resulting impairment loss would be measured as the difference between the fair value of the assets or asset groups and their carrying value with the loss recorded as an operating expense in the consolidated statement of operations in the period incurred. Refer to Note 4, "Property and Equipment," for more information. | ||||||||
Goodwill and Indefinite-Lived Intangible Assets | ||||||||
In connection with the Transaction, property, equipment, intangible assets other than goodwill and other assets and liabilities were recorded at fair value. The excess of the amount paid to acquire the Company at the time of the Transaction over the fair values of these net assets represented the intrinsic value of the Company beyond its tangible and identifiable intangible net assets and was assigned to goodwill. | ||||||||
The Company formally evaluates the carrying amount of goodwill for each of its reporting units on April 1 of each fiscal year. In addition, the Company performs an evaluation on an interim basis if it determines that recent events or prevailing conditions indicate a potential impairment of goodwill. A significant amount of judgment is involved in determining whether an indicator of impairment has occurred between annual impairment tests. These indicators include, but are not limited to, overall financial performance such as adverse changes in recent forecasts of operating results, industry and market considerations, a sustained decrease in the price of a share of EDMC Common Stock, updated business plans and regulatory and legal developments. | ||||||||
Goodwill is impaired when the carrying amount of a reporting unit’s goodwill exceeds its implied fair value, as determined under a two-step approach. In the first step, the Company determines the fair value of each reporting unit and compares that fair value to each reporting unit’s carrying value. The Company estimates the fair value of its reporting units using a combination of the discounted cash flow method (income approach) and the guideline public company method (market approach), which takes into account the invested capital and associated earnings multiples of publicly-traded peer companies. If the results of the first step indicate the carrying amount of a reporting unit is higher than its fair value, a second step must be performed, which requires the Company to determine the implied fair value of goodwill in the same manner as if it had acquired the reporting unit in an arm’s length transaction as of the testing date. This second step is performed by deducting the estimated fair value of all tangible and identifiable intangible net assets of the reporting unit from the estimated fair value of the reporting unit. If the recorded amount of goodwill exceeds this implied fair value, an impairment charge is recorded for the difference as an operating expense in the period incurred. | ||||||||
Indefinite-lived intangible assets, consisting of the licensing, accreditation and Title IV program participation assets for all reporting units and The Art Institute trade name, are also evaluated annually on April 1 for impairment and on an interim basis if events or changes in circumstances between annual tests indicate that the asset might be impaired. Trade names are valued by the relief from royalty method (income approach), which focuses on the level of royalty payments that the user of an intangible asset would have to pay a third party for the use of the asset if it were not owned by the user. The Company uses a combination of the cost and income approaches to establish the asset value of licenses, accreditation and Title IV program participation assets. On the impairment testing date, if the fair value of the intangible asset is less than its carrying value, an impairment loss is recognized for an amount equal to the difference. The intangible asset is then carried at its new fair value. | ||||||||
Income Taxes | ||||||||
The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities result from (i) temporary differences in the recognition of income and expense for financial and income tax reporting requirements, and (ii) differences between the recorded value of assets acquired in business combinations accounted for as purchases for financial reporting purposes and their corresponding tax bases. Deferred income tax assets are 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. | ||||||||
The Company recognizes the tax benefit from an uncertain tax position only if it is at least more-likely-than-not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. The amount of the tax benefit that is recognized is measured as the largest amount of benefit that is more-likely-than-not to be realized upon effective settlement. The Company classifies interest and penalties accrued in connection with unrecognized tax benefits as income tax expense in its consolidated statement of operations. | ||||||||
Refer to Note 11, "Income Taxes," for more information. | ||||||||
Derivative Financial Instruments | ||||||||
Education Management LLC ("EM LLC"), an indirect wholly-owned subsidiary of the Company, utilizes interest rate swap agreements, which are contractual agreements to exchange payments based on underlying interest rates, to manage a portion of its floating rate term debt. The swaps are accounted for as an asset or a liability in the consolidated balance sheets at fair value. The Company uses “Level Two” inputs to value its interest rate swaps, which are defined in Note 10, "Fair Value of Financial Instruments." The application of these Level Two inputs is based on LIBOR forward curves and an assessment of non-performance risk based upon published market data. If interest rate swap agreements are deemed highly effective for accounting purposes and are designated as cash flow hedges, the changes in their fair values are recorded in other comprehensive income (loss), net of tax. If they are not deemed highly effective, the changes in their fair values are recorded in interest expense in the consolidated statements of operations. The Company does not use derivative financial instruments for trading or speculative purposes. Refer to Note 9, "Derivative Instruments," for more information. | ||||||||
Foreign Currency Translation | ||||||||
The financial position and results of operations of the Company’s foreign subsidiary are initially measured at its functional currency, which is the Canadian dollar. Accordingly, the assets and liabilities of the foreign subsidiary are translated to U.S. dollars using the exchange rates in effect at the balance sheet date. Revenues and expenses are translated into U.S. dollars using average monthly exchange rates. Translation adjustments resulting from this process are recorded as a separate component of equity designated as accumulated other comprehensive income (loss) in the consolidated balance sheets. Translation gains and losses were not material in fiscal 2014, 2013 or 2012. | ||||||||
Share-Based Compensation | ||||||||
The Black-Scholes-Merton option pricing model is used to determine the fair value of all of the Company’s stock-options at the grant date. The Company recognizes compensation costs on time-based options and restricted stock units on a straight-line basis over the requisite service period, which is generally the vesting term, net of expected forfeitures. See Note 12, “Share-Based Compensation,” for more information. | ||||||||
Contingencies | ||||||||
The Company accrues for contingent obligations when it is probable that a liability has been incurred and the amount is reasonably estimable. As facts concerning contingencies evolve and become known, management reassesses the likelihood of probable loss and makes appropriate adjustments to its financial statements. | ||||||||
Costs and Expenses | ||||||||
Educational services expense consists primarily of costs related to the development, delivery and administration of the Company’s education programs. Major cost components are faculty compensation, administrative salaries, facility occupancy costs, bad debt expense, costs of educational materials and information systems costs. These costs are expensed as services are provided to the Company or as incurred. | ||||||||
General and administrative expense consists of marketing and student admissions expenses and certain central staff costs such as executive management, finance and accounting, legal and consulting services, corporate development and other departments that do not provide direct services to the Company’s students. These costs are expensed as services are provided to the Company or as incurred. | ||||||||
Marketing costs are expensed in the fiscal year incurred and are classified as general and administrative expense in the accompanying consolidated statements of operations. The Company’s marketing expense was $255.9 million, $255.0 million and $296.9 million during the fiscal years ended June 30, 2014, 2013 and 2012, respectively. | ||||||||
Recent Accounting Pronouncements | ||||||||
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, “Revenue from Contracts with Customers." The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is not permitted. The Company is currently evaluating the impact that the standard will have on its financial condition, results of operations, and disclosures. | ||||||||
In April 2014, the FASB issued amendments to guidance for reporting discontinued operations and disposals of components of an entity. The amended guidance requires that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations and add new disclosures for individually significant dispositions that do not qualify as discontinued operations. The amendments are effective prospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2014 (early adoption is permitted only for disposals that have not been previously reported). The implementation of the amended guidance is not expected to have a material impact on the Company's consolidated financial statements. | ||||||||
In July 2013, the FASB clarified the presentation of an unrecognized tax benefit when a net operating loss or tax credit carryforward exists. The clarification requires that an unrecognized tax benefit be presented as a reduction of a deferred tax asset for a net operating loss or tax credit carryforward when settlement of the unrecognized tax benefit using those carryforwards is available pursuant to existing tax law. The Company's adoption of the FASB clarification had no impact on its consolidated financial statements. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings Per Share | ' | |||||||||||
3 | EARNINGS PER SHARE | |||||||||||
Basic earnings per share (“EPS”) is computed using the weighted average number of shares outstanding during the period. The Company uses the treasury stock method to compute diluted EPS, which assumes that restricted stock units were converted into common stock and that outstanding stock options that are in-the-money were exercised and the resulting proceeds (which includes unrecognized compensation expense and excess tax benefits) were used to acquire shares of common stock at its average market price during the reporting period. | ||||||||||||
Basic and diluted EPS were calculated as follows (in thousands, except per share amounts): | ||||||||||||
For the Fiscal Year Ended June 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net loss | $ | (663,917 | ) | $ | (244,390 | ) | $ | (1,433,570 | ) | |||
Weighted average number of shares outstanding: | ||||||||||||
Basic | 125,504 | 124,560 | 126,659 | |||||||||
Effect of stock-based awards | — | — | — | |||||||||
Diluted | 125,504 | 124,560 | 126,659 | |||||||||
Loss per share: | ||||||||||||
Basic | $ | (5.29 | ) | $ | (1.96 | ) | $ | (11.32 | ) | |||
Diluted | $ | (5.29 | ) | $ | (1.96 | ) | $ | (11.32 | ) | |||
All outstanding time-based stock options and restricted stock units were excluded from the computation of diluted EPS for the fiscal years ended June 30, 2014, 2013 and 2012 because the Company recorded a net loss, which made all awards anti-dilutive. |
Property_And_Equipment
Property And Equipment | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment | ' | |||||||
4 | PROPERTY AND EQUIPMENT | |||||||
Property and equipment consisted of the following at June 30 (in thousands): | ||||||||
Asset Class | 2014 | 2013 | ||||||
Leasehold improvements | $ | 577,537 | $ | 570,286 | ||||
Technology | 329,361 | 324,403 | ||||||
Furniture and equipment | 162,872 | 163,595 | ||||||
Software | 120,242 | 98,537 | ||||||
Library books | 44,604 | 44,248 | ||||||
Construction in progress | 16,683 | 19,601 | ||||||
Buildings and improvements | 5,798 | 25,566 | ||||||
Land | 3,605 | 5,495 | ||||||
Total | 1,260,702 | 1,251,731 | ||||||
Less accumulated depreciation | (831,245 | ) | (726,106 | ) | ||||
Property and equipment, net | $ | 429,457 | $ | 525,625 | ||||
Depreciation and amortization expense related to property and equipment was $146.2 million, $157.9 million and $151.0 million, respectively, for the fiscal years ended June 30, 2014, 2013 and 2012. Included in these amounts is amortization expense on software of $18.3 million, $20.2 million and $14.7 million, respectively. Amortization expense on software assets for the year ended June 30, 2013 included $4.6 million in accelerated amortization resulting from the write off of a software asset that no longer had a useful life. | ||||||||
Sale-Leaseback Transactions | ||||||||
The Company completed six sale-leaseback transactions with unrelated third parties for net proceeds of $9.6 million and $65.1 million in fiscal 2014 and 2013, respectively, which are classified as an investing activity in the consolidated statement of cash flows. The transactions resulted in net losses of $3.5 million and $3.9 million recorded in educational services expense upon closing the transactions. In connection with the prior year sale-leaseback transactions, gains of $17.8 million were deferred, of which $14.3 million remains at June 30, 2014. The deferred gains are classified within deferred rent on the consolidated balance sheet and are being recognized over the initial terms of the new leases as a reduction to educational services expense. At the time of closing for all transactions, the Company entered into agreements to lease all of these properties back from the purchasers over initial lease terms ranging from three to 15 years. The Company classified these leases as operating and considers them normal leasebacks with no other continuing involvement. Refer to Note 18, "Subsequent Events," for a description of an additional sale-leaseback transaction that occurred in August 2014. | ||||||||
Lease Abandonment and Restructuring | ||||||||
During fiscal 2014, management determined it would not begin admitting students for one of its start-up Art | ||||||||
Institute locations as was previously anticipated. As a result, the Company recorded a $6.3 million lease abandonment charge in educational services expense during the fiscal year ended June 30, 2014 which was comprised of existing construction-in-progress assets (which resulted in a reduction to property and equipment) and accelerated rent expense based on the remaining minimum obligations under the existing lease, net of expected sublease income. In addition, in connection with restructuring plans across the organization intended to improve operational efficiencies and align costs with student enrollment levels as further described in Note 7, "Accrued Liabilities," the Company recorded lease restructuring charges during fiscal 2014, 2013 and 2012 of $5.8 million, $2.0 million and $2.5 million, respectively, which primarily comprised of existing leasehold improvement assets (which resulted in a reduction to property and equipment) and accelerated rent expense. | ||||||||
Impairments | ||||||||
During fiscal 2014 and 2013, the Company recorded charges of $6.1 million and $1.2 million in long-lived asset impairments in the consolidated statements of operations as estimated future cash flows at three of the Company's Brown Mackie College locations and one of the Company's Argosy University locations, respectively, were insufficient to support the carrying values of their property and equipment, which primarily consisted of leasehold improvement assets. These charges were calculated using an income valuation approach. |
Goodwill_And_Intangible_Assets
Goodwill And Intangible Assets | 12 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Schedule of indefinite-lived intangible assets [Abstract] | ' | ||||||||||||||||||||
Goodwill And Intangible Assets | ' | ||||||||||||||||||||
5 | GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||||||||
In connection with the Transaction on June 1, 2006, the Company recorded approximately $2.6 billion of goodwill, which was allocated to its four reporting units: The Art Institutes, Argosy University, Brown Mackie Colleges and South University. The goodwill balance attributed to the Brown Mackie Colleges reporting unit was fully written off in connection with an impairment charge incurred during fiscal 2012. Including the effects of the immaterial errors that were corrected during the following periods, which are described below, a roll forward of the Company's consolidated goodwill balance from June 30, 2011 to June 30, 2014 is as follows (in thousands): | |||||||||||||||||||||
The Art Institutes | Argosy University | Brown Mackie Colleges | South University | Total | |||||||||||||||||
Balance Sheet as of June 30, 2011: | |||||||||||||||||||||
Gross | $ | 1,984,688 | $ | 219,350 | $ | 254,561 | $ | 123,400 | $ | 2,581,999 | |||||||||||
Accumulated impairments | — | — | — | — | — | ||||||||||||||||
Goodwill | 1,984,688 | 219,350 | 254,561 | 123,400 | 2,581,999 | ||||||||||||||||
Statement of Operations for the Fiscal Year Ended June 30, 2012: | |||||||||||||||||||||
Impairment charge | (1,063,088 | ) | (139,361 | ) | (254,561 | ) | (76,962 | ) | (1,533,972 | ) | |||||||||||
Balance Sheet as of June 30, 2012: | |||||||||||||||||||||
Gross | 1,984,688 | 219,350 | 254,561 | 123,400 | 2,581,999 | ||||||||||||||||
Accumulated impairments | (1,063,088 | ) | (139,361 | ) | (254,561 | ) | (76,962 | ) | (1,533,972 | ) | |||||||||||
Goodwill | 921,600 | 79,989 | — | 46,438 | 1,048,027 | ||||||||||||||||
Statement of Operations for the Fiscal Year Ended June 30, 2013: | |||||||||||||||||||||
Impairment charge | (270,874 | ) | — | — | — | (270,874 | ) | ||||||||||||||
Balance Sheet as of June 30, 2013: | |||||||||||||||||||||
Gross | 1,984,688 | 219,350 | 254,561 | 123,400 | 2,581,999 | ||||||||||||||||
Accumulated impairments | (1,333,962 | ) | (139,361 | ) | (254,561 | ) | (76,962 | ) | (1,804,846 | ) | |||||||||||
Goodwill | 650,726 | 79,989 | — | 46,438 | 777,153 | ||||||||||||||||
Statement of Operations for the Fiscal Year Ended June 30, 2014: | |||||||||||||||||||||
Impairment charge | (433,747 | ) | — | — | — | (433,747 | ) | ||||||||||||||
Balance Sheet as of June 30, 2014: | |||||||||||||||||||||
Gross | 1,984,688 | 219,350 | 254,561 | 123,400 | 2,581,999 | ||||||||||||||||
Accumulated impairments | (1,767,709 | ) | (139,361 | ) | (254,561 | ) | (76,962 | ) | (2,238,593 | ) | |||||||||||
Goodwill | $ | 216,979 | $ | 79,989 | $ | — | $ | 46,438 | $ | 343,406 | |||||||||||
Correction of Immaterial Errors | |||||||||||||||||||||
During the quarter ended March 31, 2014, the Company identified errors in prior periods in the calculation of deferred taxes that is required in connection with the hypothetical purchase price allocation performed in the step two portion of the goodwill impairment test. The errors in calculating the deferred taxes affected the magnitude of the goodwill impairment charges previously recorded during the fiscal years ended June 30, 2013 and 2012, and as a result, the goodwill impairment charges in the fiscal years ended June 30, 2013 and 2012 were decreased by $23.6 million and $84.5 million, respectively, and decreased previously reported net losses by $23.6 million (net of tax) and $82.2 million (net of tax). In connection with these revisions, the Company's consolidated goodwill balance increased by $108.1 million at June 30, 2013. The impact of these errors was not material to any prior period; however, the aggregate pre-tax amount of the prior period errors of $108.1 million would have been material to the Company's consolidated statements of operations for the fiscal year ended June 30, 2014. Consequently, the Company has corrected the errors by revising the impacted prior period balances on the accompanying consolidated financial statements and related notes. These revisions do not impact EBITDA excluding certain expenses as presented in Note 17, "Segment Reporting" nor do they affect the Company’s past compliance with debt covenants. | |||||||||||||||||||||
The following table summarizes the previously reported and corrected amounts of the impacted balances presented in the accompanying consolidated financial statements (in thousands except per share data). | |||||||||||||||||||||
As Previously Reported | Adjustments | As Adjusted | |||||||||||||||||||
Statement of Operations and Comprehensive Loss for the Fiscal Year Ended June 30, 2012 | |||||||||||||||||||||
Long-lived asset impairments | $ | 1,746,765 | $ | (84,477 | ) | $ | 1,662,288 | ||||||||||||||
Loss before interest, loss on debt refinancing and income taxes | (1,409,680 | ) | 84,477 | (1,325,203 | ) | ||||||||||||||||
Loss before taxes | (1,529,484 | ) | 84,477 | (1,445,007 | ) | ||||||||||||||||
Income tax benefit | (13,743 | ) | 2,306 | (11,437 | ) | ||||||||||||||||
Net loss | (1,515,741 | ) | 82,171 | (1,433,570 | ) | ||||||||||||||||
Basic & diluted loss per share | (11.97 | ) | 0.65 | (11.32 | ) | ||||||||||||||||
Comprehensive loss | (1,521,588 | ) | 82,171 | (1,439,417 | ) | ||||||||||||||||
Statement of Shareholders' Equity for the Fiscal Year Ended June 30, 2012 | |||||||||||||||||||||
Accumulated deficit at June 30, 2012 | (935,960 | ) | 82,171 | (853,789 | ) | ||||||||||||||||
Total shareholders' equity at June 30, 2012 | 496,564 | 82,171 | 578,735 | ||||||||||||||||||
Balance Sheet as of June 30, 2013 | |||||||||||||||||||||
Goodwill | 669,090 | 108,063 | 777,153 | ||||||||||||||||||
Total assets | 2,315,293 | 108,063 | 2,423,356 | ||||||||||||||||||
Deferred income taxes liability | 70,316 | 2,306 | 72,622 | ||||||||||||||||||
Accumulated deficit | (1,203,936 | ) | 105,757 | (1,098,179 | ) | ||||||||||||||||
Total shareholders' equity | 250,099 | 105,757 | 355,856 | ||||||||||||||||||
Total liabilities and shareholders' equity | 2,315,293 | 108,063 | 2,423,356 | ||||||||||||||||||
Statement of Operations and Comprehensive Loss for the Fiscal Year Ended June 30, 2013 | |||||||||||||||||||||
Long-lived asset impairments | 323,690 | (23,586 | ) | 300,104 | |||||||||||||||||
Loss before interest, loss on debt refinancing and income taxes | (126,043 | ) | 23,586 | (102,457 | ) | ||||||||||||||||
Loss before taxes | (255,938 | ) | 23,586 | (232,352 | ) | ||||||||||||||||
Net loss | (267,976 | ) | 23,586 | (244,390 | ) | ||||||||||||||||
Basic & diluted loss per share | (2.15 | ) | 0.19 | (1.96 | ) | ||||||||||||||||
Comprehensive loss | (263,580 | ) | 23,586 | (239,994 | ) | ||||||||||||||||
Statement of Shareholders' Equity for the Fiscal Year Ended June 30, 2013 | |||||||||||||||||||||
Accumulated deficit at June 30, 2013 | (1,203,936 | ) | 105,757 | (1,098,179 | ) | ||||||||||||||||
Total shareholders' equity at June 30, 2013 | 250,099 | 105,757 | 355,856 | ||||||||||||||||||
Goodwill Impairment Charges | |||||||||||||||||||||
As previously disclosed, during the second quarter of fiscal 2014, the Company observed declining application trends for future academic terms, particularly at The Art Institutes reporting unit, and performed a sensitivity analysis of its fair value using the most recently completed long range forecast and available earnings multiples of the Company's peer group. This sensitivity analysis resulted in management concluding that none of its reporting units experienced a triggering event that would have required a step one interim goodwill impairment analysis at December 31, 2013. Additionally, The Art Institutes had positive year-over-year growth in new student enrollment during the second fiscal quarter. | |||||||||||||||||||||
During the quarter ended March 31, 2014, new students decreased approximately 16% at The Art Institutes compared to the prior year quarter. Due primarily to lower than anticipated application production for future periods at The Art Institutes together with a significant deterioration in the Company's market capitalization and credit rating downgrades during the third fiscal quarter resulted in management no longer believing that it was more-likely-than-not that the fair values of each of its reporting units exceeded their carrying values at March 31, 2014. As a result, management revised its long-term projections and performed a step one interim goodwill impairment test for each of its reporting units. | |||||||||||||||||||||
The results indicated that the Argosy University and South University reporting units had fair values in excess of their carrying values. However, the test indicated that the fair value of The Art Institutes fell below its carrying value as of March 31, 2014. Therefore, a step two test was required to be performed for The Art Institutes reporting unit, which yielded a goodwill impairment charge of $433.7 million in the quarter ended March 31, 2014. None of this charge was deductible for income tax purposes. | |||||||||||||||||||||
The step one interim impairment tests performed as of March 31, 2014 used cash flow projections and market data as of that date. The Company does not believe that cash flow projections or the earnings multiples of its publicly-traded peer companies changed materially between March 31, 2014 and the Company's annual assessment date, which is April 1, 2014. In addition, management considered the change in the Company's stock price between these dates and concluded that based on all the available evidence, the impairment test performed as of March 31, 2014 was appropriate to use as the Company's annual April 1, 2014 test. | |||||||||||||||||||||
During the quarter ended June 30, 2014, management made several decisions that materially affected the short-term projections at The Art Institutes and revised consolidated projections accordingly. In addition, the Company continued to experience significant deterioration in the market capitalization of its stock and declines in the fair values of its publicly-traded debt. These facts and circumstances, among others, resulted in the Company performing a step one interim goodwill impairment test for each of its reporting units at June 30, 2014, the results of which indicated that all reporting units had fair values in excess of their carrying values at June 30, 2014 by more than 25%. | |||||||||||||||||||||
At March 31 and June 30, 2014, the Company estimated the fair value of its reporting units in step one using a combination of the traditional discounted cash flow method (income approach) and the guideline public company method (market approach), which takes into account the relative price and associated earnings multiples of publicly-traded peer companies. Accordingly, these step one interim impairment tests used cash flow projections and market data as of March 31, 2014 and June 30, 2014. | |||||||||||||||||||||
The valuation of the Company's reporting units under the traditional discounted cash flow method requires the use of internal business plans that are based on judgments and estimates, which account for expected future economic conditions, demand and pricing for the Company's educational services, costs, inflation and discount rates, and other factors. The use of judgments and estimates involves inherent uncertainties. The Company's measurement of the fair values of its reporting units is dependent on the accuracy of the assumptions used and how the Company's estimates compare to future operating performance. The key assumptions used are, but not limited to, the following: | |||||||||||||||||||||
• | Future cash flow assumptions — The Company's projections are based on organic growth and are derived from historical experience and assumptions regarding future growth and profitability trends. These projections also take into account the current economic climate and the extent to which the regulatory environment is expected to impact future growth opportunities. The Company's analysis incorporated an assumed period of cash flows of ten years with a terminal value determined using the Gordon Growth Model. | ||||||||||||||||||||
• | Discount rate — The discount rate is based on each reporting unit’s estimated weighted average cost of capital ("WACC"). The three components of WACC are the cost of equity, cost of debt and capital structure, each of which requires judgment by management to estimate. The Company develops its cost of equity estimate using the Capital Asset Pricing Model based on perceived risks and predictability of each reporting unit’s future cash flows. The cost of debt component represents a market participant’s estimated cost of borrowing, which the Company estimates using the average return on corporate bonds as of the valuation date, adjusted for taxes. At March 31, 2014, the WACC used to estimate the fair value of The Art Institutes reporting unit was 15.0%, and the Argosy University and South University reporting units were valued using a WACC of 17.5%. At June 30, 2014, the WACC used to estimate the fair value of The Art Institutes reporting unit was 15.5%, and the Argosy University and South University reporting units were valued using a WACC of 18.0%. The increase in the WACC for all three reporting units from March 31, 2013 to June 30, 2014 was the result of an increase in the industry-specific beta component of the WACC. | ||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||
Intangible assets other than goodwill consisted of the following amounts (in thousands): | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Gross | Accumulated | Gross | Accumulated | ||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Tradename-Art Institute | $ | 73,200 | $ | — | $ | 190,000 | $ | — | |||||||||||||
Licensing, accreditation and Title IV program participation | 87,862 | — | 95,862 | — | |||||||||||||||||
Curriculum and programs | 21,420 | (14,379 | ) | 43,575 | (32,596 | ) | |||||||||||||||
Student contracts, applications and relationships | 10,510 | (9,492 | ) | 39,511 | (37,381 | ) | |||||||||||||||
Favorable leases and other | 6,057 | (5,355 | ) | 19,424 | (17,960 | ) | |||||||||||||||
Total intangible assets | $ | 199,049 | $ | (29,226 | ) | $ | 388,372 | $ | (87,937 | ) | |||||||||||
During the fiscal year ended June 30, 2014, the Company disposed of approximately $69 million of intangible assets that no longer had a useful life. Because these assets were fully amortized, this write-off had no impact to the consolidated statement of operations. | |||||||||||||||||||||
Trade names are often considered to have useful lives similar to that of the overall business, which generally means such assets are assigned an indefinite life for accounting purposes. State licenses and accreditations of the Company’s schools as well as their eligibility for Title IV program participation are periodically renewed in cycles ranging from every year to up to every ten years depending upon government and accreditation regulations. Because the Company considers these renewal processes to be a routine aspect of the overall business, these assets are assigned indefinite lives. A roll forward of the Company's consolidated indefinite-lived intangible assets balances from June 30, 2011 to June 30, 2014 is as follows (in thousands): | |||||||||||||||||||||
Tradename-Art Institute | Licensing, accreditation and Title IV program participation | ||||||||||||||||||||
Balance Sheet at June 30, 2011: | |||||||||||||||||||||
Gross | $ | 330,000 | $ | 112,179 | |||||||||||||||||
Accumulated impairments | — | — | |||||||||||||||||||
Net balance | 330,000 | 112,179 | |||||||||||||||||||
Statement of Operations for the Fiscal Year Ended June 30, 2012: | |||||||||||||||||||||
Impairment charge | (112,000 | ) | (16,317 | ) | |||||||||||||||||
Balance Sheet at June 30, 2012: | |||||||||||||||||||||
Gross | 330,000 | 112,179 | |||||||||||||||||||
Accumulated impairments | (112,000 | ) | (16,317 | ) | |||||||||||||||||
Net balance | 218,000 | 95,862 | |||||||||||||||||||
Statement of Operations for the Fiscal Year Ended June 30, 2013: | |||||||||||||||||||||
Impairment charge | (28,000 | ) | — | ||||||||||||||||||
Balance Sheet at June 30, 2013: | |||||||||||||||||||||
Gross | 330,000 | 112,179 | |||||||||||||||||||
Accumulated impairments | (140,000 | ) | (16,317 | ) | |||||||||||||||||
Net balance | 190,000 | 95,862 | |||||||||||||||||||
Statement of Operations for the Fiscal Year Ended June 30, 2014: | |||||||||||||||||||||
Impairment charge | (116,800 | ) | (8,000 | ) | |||||||||||||||||
Balance Sheet at June 30, 2014: | |||||||||||||||||||||
Gross | 330,000 | 112,179 | |||||||||||||||||||
Accumulated impairments | (256,800 | ) | (24,317 | ) | |||||||||||||||||
Net balance | $ | 73,200 | $ | 87,862 | |||||||||||||||||
Intangible Asset Impairments | |||||||||||||||||||||
In connection with the goodwill analyses performed as of March 31, 2014 and June 30, 2014 described above, the Company also performed impairment analyses with respect to indefinite-lived intangible assets at these dates. The fair value of The Art Institutes trade name was determined under the relief from royalty method (income approach), which is the same method the Company used to value this asset at the Transaction date. The relief from royalty method focuses on the level of royalty payments that the user of an intangible asset would have to pay a third party for the use of the asset if it were not owned by the user. | |||||||||||||||||||||
The Company recorded two impairments of The Art Institutes trade name totaling $116.8 million during the fiscal year ended June 30, 2014, utilizing the following key assumptions: | |||||||||||||||||||||
• | a 15.5% discount rate and 1.5% royalty rate at March 31, 2014; and | ||||||||||||||||||||
• | a 16.0% discount rate and a 1.0% royalty rate at June 30, 2014. | ||||||||||||||||||||
In the fiscal 2013 analysis, the Company used a royalty rate of 2.0%. The royalty rate decreased throughout the year due primarily to reductions in long term revenue forecasts at The Art Institutes compared to the prior year long range projections. The increase in the discount rate was consistent with the increase in the WACC used in the goodwill impairment analysis for The Art Institutes. | |||||||||||||||||||||
The Company also revalued the licensing, accreditation and Title IV program participation assets for all reporting units at March 31, 2014 and June 30, 2014 using the same approaches used to value these assets as of the date of the Transaction, which resulted in an $8.0 million impairment at The Art Institutes. A $16.3 million impairment of these assets was recorded during fiscal 2012, which consisted of $15.0 million at The Art Institutes and $1.3 million at Argosy University. These assets were valued by a combination of the cost and income approaches. The cost approach is used for the licensing and accreditation portions of this asset. Numerous factors are considered in order to estimate the Title IV portion of the asset, including the estimated amount of time it would take for an institution to qualify for Title IV funds as a new operation, the number of students currently receiving federal financial aid, the amount schools would have to lend students during the estimated time it would take to qualify for Title IV funds and the present value of projected cash flows. | |||||||||||||||||||||
During the fiscal year ended June 30, 2014, the Company recorded a $3.6 million charge in long-lived asset impairments in the consolidated statement of operations relating to definite-lived curriculum intangible assets at Argosy University as the estimated future cash flows could not support the carrying value of the asset. The charge was calculated using an income valuation approach. | |||||||||||||||||||||
Amortization of Intangible Assets | |||||||||||||||||||||
Amortization of intangible assets was $6.3 million, $6.8 million and $7.6 million during the fiscal years ended June 30, 2014, 2013 and 2012, respectively. Total estimated amortization of the Company’s intangible assets for each of the years ending June 30, 2015 through 2019 was as follows at June 30, 2014 (in thousands): | |||||||||||||||||||||
Fiscal years | Amortization | ||||||||||||||||||||
Expense | |||||||||||||||||||||
2015 | $ | 5,434 | |||||||||||||||||||
2016 | 2,936 | ||||||||||||||||||||
2017 | 340 | ||||||||||||||||||||
2018 | 51 | ||||||||||||||||||||
Student_Receivables
Student Receivables | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Student Receivables | ' | |||||||
6 | STUDENT RECEIVABLES | |||||||
The Company offers three types of financial arrangements to its students to assist with the obligation associated with tuition and fees, which helps students fund the difference between total tuition and fees and the amount covered by various sources of financial aid, including amounts awarded under Title IV programs, private loans and cash payments: due and payable amounts; a tuition payment plan; and lines of credit. Due and payable amounts are short-term extensions of credit for typically small balances which are repayable upon demand by the Company. Tuition payment plans are short-term credit extensions for 12 months or less. Lines of credit are extensions of credit which include a monthly minimum payment amount and permit students to repay amounts borrowed over a period of up to 42 months after graduation. During fiscal 2013, the Company extended the repayment period for financing made available to students from a maximum of 36 months beyond graduation to a maximum of 42 months beyond graduation. The majority of applicable line of credit accounts incur interest charges that accrue each month on unpaid balances except for those accounts that have been placed into collections. Student receivables include $29.3 million (net of $32.2 million allowance) and $24.3 million (net of $27.9 million allowance) recorded in other long-term assets on the accompanying balance sheets related to lines of credit to students for amounts due beyond one year. | ||||||||
The Company monitors its student receivables based on enrollment status. Receivables from former students who are in collections are reserved for at a very high rate. Receivables from former students that are out-of-school are reserved for at a higher rate than the receivables from students that are in-school. The gross current and non-current student receivables, which excludes loans awarded under the student lending program further described below, by student status were as follows at June 30 (in thousands): | ||||||||
2014 | 2013 | |||||||
In-school | $ | 236,144 | $ | 194,062 | ||||
Out-of-school (1) | 63,624 | 128,375 | ||||||
Collections | 115,293 | 110,955 | ||||||
Gross student receivables | $ | 415,061 | $ | 433,392 | ||||
A roll forward of the Company's total allowance for doubtful accounts and loan loss reserves from June 30, 2011 to June 30, 2014 is as follows (in thousands): | ||||||||
Balance June 30, 2011 | $ | 199,357 | ||||||
Bad debt expense | 163,926 | |||||||
Amounts written off | (113,001 | ) | ||||||
Balance June 30, 2012 | 250,282 | |||||||
Bad debt expense | 171,850 | |||||||
Amounts written off (2) | (213,884 | ) | ||||||
Balance June 30, 2013 | 208,248 | |||||||
Bad debt expense (1) | 141,946 | |||||||
Amounts written off | (156,354 | ) | ||||||
Balance June 30, 2014 | $ | 193,840 | ||||||
(1) Refer to Note 2, "Summary of Significant Accounting Policies," for details with respect to a correction in the Company's policy regarding the recognition of incremental revenue recorded when students withdraw. | ||||||||
(2) As explained in Note 2, "Summary of Significant Accounting Policies," the Company reduced the number of days after which accounts in collections are written off during fiscal 2013. | ||||||||
The amounts set forth above are recorded within student receivables, net and other long-term assets on the consolidated balance sheets. Recoveries of amounts previously written off were not significant in any period presented. | ||||||||
The Company commenced a new student lending program in fiscal 2013 under which it purchases loans awarded and disbursed to its students from a private lender. The loans purchased under this program are included in other long-term assets, net of an allowance, at an amount of $8.7 million and $0.4 million at June 30, 2014 and 2013, respectively, on the accompanying consolidated balance sheets. |
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Accrued Liabilities [Abstract] | ' | |||||||||||
Accrued Liabilities | ' | |||||||||||
7 | ACCRUED LIABILITIES | |||||||||||
Accrued liabilities consisted of the following at June 30 (in thousands): | ||||||||||||
2014 | 2013 | |||||||||||
Payroll and related taxes | $ | 35,918 | $ | 39,330 | ||||||||
Advertising | 25,597 | 33,010 | ||||||||||
Benefits | 15,345 | 16,235 | ||||||||||
Interest | 7,900 | 10,416 | ||||||||||
Capital expenditures | 7,387 | 4,113 | ||||||||||
Other | 75,135 | 54,313 | ||||||||||
Total accrued liabilities | $ | 167,282 | $ | 157,417 | ||||||||
Over the past several fiscal years, the Company has completed restructuring plans across the organization intended to improve operational efficiencies and align costs with student enrollment levels. During the fiscal years ended June 30, the Company recorded the following restructuring expenses in educational services expense and general and administrative expense (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Employee severance and other | $ | 21,141 | $ | 11,877 | $ | 11,633 | ||||||
Leases | 5,811 | 2,043 | 2,500 | |||||||||
Total restructuring expense | $ | 26,952 | $ | 13,920 | $ | 14,133 | ||||||
At June 30, 2014, the remaining liability for all restructuring plans was $13.7 million, consisting of employee severance of $5.8 million recorded in accrued liabilities in which the significant majority will be paid through June 30, 2015 and net rent charges of $7.9 million recorded in deferred rent that will be paid through the remaining lease terms through 2022. | ||||||||||||
As further described in Note 14, "Commitments and Contingencies," the Company is involved in multiple legal matters. The increase in other accrued liabilities since June 30, 2013 primarily relates to amounts that have been recorded for such matters, the majority of which is offset by receivables from the Company's insurers that have been recorded in other current assets in the accompanying consolidated balance sheet. |
ShortTerm_And_LongTerm_Debt
Short-Term And Long-Term Debt | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Short-Term and Long-Term Debt | ' | |||||||
SHORT-TERM AND LONG-TERM DEBT | ||||||||
Debt Restructuring | ||||||||
Refer to Note 2, "Summary of Significant Accounting Policies," under "Basis of Presentation" for a description of the debt restructuring in September 2014. | ||||||||
U.S. Department of Education Letters of Credit: | ||||||||
The Company had outstanding letters of credit of $307.6 million at June 30, 2014, the largest of which is issued to the U.S. Department of Education, which requires that the Company maintain a letter of credit due to its failure to satisfy certain regulatory financial ratios after giving effect to the Transaction. In January 2014, the U.S. Department of Education decreased the amount of the required letter of credit from $348.6 million to $302.2 million, which equals 15% of the total Title IV aid received by students attending the Company’s institutions during the fiscal year ended June 30, 2013. | ||||||||
During fiscal 2012, the Company entered into two cash secured letter of credit facilities pursuant to which the lenders agreed to issue letters of credit at any time to the U.S. Department of Education in an aggregate face amount of up to $200.0 million. The Company's obligations with respect to such letters of credit are secured by liens in favor of the lenders on certain of the Company's cash deposits, which must total at least 105% of the aggregate face amount of any outstanding letters of credit. The cash secured letter of credit facilities were amended in April 2014 to extend their maturities from July 8, 2014 to June 1, 2015 or earlier if the existing revolving credit facility is terminated. Any future reduction in the usage of the cash secured letter of credit facilities will reduce the amount of cash that is classified as restricted cash on the consolidated balance sheet. | ||||||||
As of June 30, 2014, in order to fund its current letter of credit obligation to the U.S. Department of Education, the Company used all $200.0 million of capacity under the cash secured letter of credit facilities, in connection with which the Company classifies $210.0 million as restricted cash to satisfy the 105% collateralization requirement described above and utilized $102.2 million letter of credit capacity under its revolving credit facility. Any future reduction in the usage of the cash secured letter of credit facilities will reduce the amount of cash that is classified as restricted cash on the consolidated balance sheet. | ||||||||
Short-Term Debt: | ||||||||
At June 30, 2014 and 2013, the Company had $219.9 million and $75.0 million, respectively, of borrowings outstanding under the $328.3 million revolving credit facility, which currently expires in July 2015 after giving effect to the pre-restructuring amendments to existing debt further described in Note 2, "Significant Accounting Policies." These borrowings existed in order to satisfy year-end regulatory financial ratios as well as aid in the ongoing negotiations with the Company's lenders. Outstanding balances under the revolving credit facility are classified as short-term debt on the consolidated balance sheets. After adjusting for outstanding letters of credit under the revolving credit facility, which decrease its availability for borrowings, the Company had $0.8 million additional capacity under the revolving credit facility at June 30, 2014 available for borrowings or issuance of letters of credit. | ||||||||
The interest rate on amounts outstanding at June 30, 2014 and 2013 under the revolving credit facility was 4.25%, which equals LIBOR plus a margin of 4.00%. The applicable margin for borrowings under the revolving credit facility can change dependent on certain leverage ratios and credit ratings. EM LLC is obligated to pay a per annum commitment fee on undrawn amounts under the revolving credit facility, which is currently 0.375% and varies based on certain leverage ratios. The Company must also pay customary letter of credit fees for outstanding letters of credit under the revolving credit facility, which is secured by certain of the Company's assets and is subject to the Company's satisfaction of certain covenants and financial ratios described below. | ||||||||
Long-Term Debt: | ||||||||
The Company’s long-term debt consisted of the following at June 30 (in thousands): | ||||||||
2014 | 2013 | |||||||
Senior secured term loan facility, due in June 2016 ("Tranche C-2 Loan") | $ | 728,369 | $ | 736,454 | ||||
Senior secured term loan facility, due in March 2018, net of discount of $2,288 and $2,898 ("Tranche C-3 Loan") | 339,183 | 342,364 | ||||||
Senior cash pay/PIK notes due 2018, net of discount of $22,335 and $27,712 ("Cash Pay/PIK Notes") | 215,909 | 206,242 | ||||||
Other | — | 180 | ||||||
Total long-term debt | 1,283,461 | 1,285,240 | ||||||
Less current portion | (11,875 | ) | (12,076 | ) | ||||
Total long-term debt, less current portion | $ | 1,271,586 | $ | 1,273,164 | ||||
At June 30, 2014, future annual principal payments on long-term debt and the revolving credit facility were as follows for the fiscal years ending June 30 (in thousands): | ||||||||
Fiscal year: | Amount | |||||||
2015 | $ | 231,765 | ||||||
2016 | 724,072 | |||||||
2017 | 3,753 | |||||||
2018 | 330,140 | |||||||
2019 | 255,944 | |||||||
Total | $ | 1,545,674 | ||||||
These amounts are presented gross of the $2.3 million discount on the senior secured term loan facility due in March 2018 and the $22.3 million discount on the Cash Pay/PIK Notes and include $17.7 million of unamortized PIK interest that is capitalized to the principal balance of the Cash Pay/PIK Notes through its maturity in July 2018. The amendment to the senior credit facility and the terms of the new Indenture were effective upon execution on September 5, 2014 and therefore, eliminate a significant portion of principal payments for fiscal 2015 and beyond. Refer to Note 2, "Significant Accounting Policies," under "Basis of Presentation" for more information. | ||||||||
Senior Secured Credit Facilities: | ||||||||
The Tranche C-3 Loan bears interest at a rate equal to the greater of three-month LIBOR or 1.25%, plus a margin of 7.0%, or 8.25% at June 30, 2014 and 2013. The Tranche C-2 Loan bears interest at a rate equal to three-month LIBOR plus a margin of 4.00%, or 4.25% and 4.31% at June 30, 2014 and June 30, 2013, respectively. | ||||||||
On March 30, 2012, EM LLC completed a refinancing of the $348.6 million portion of the $1.1 billion term loan under its senior secured credit facility that was due to expire in June 2013 by replacing it with $350.0 million of new term debt under the same credit agreement and recorded a loss on debt refinancing of $9.5 million. | ||||||||
Senior Cash Pay/PIK Notes | ||||||||
On March 5, 2013, EM LLC and Education Management Finance Corp. (a wholly-owned subsidiary of EM LLC) completed a private exchange offer (the "Exchange Offer") in which they offered to exchange their 8.75% senior notes due June 1, 2014 ("Old Notes") for (i) new Senior Cash Pay/PIK Notes due July 1, 2018 ("Cash Pay/PIK Notes") and (ii) cash. In connection with the Exchange Offer, a simultaneous private exchange on the same terms and an extinguishment at par of the Old Notes not tendered in the Exchange Offer, the Company issued $203.0 million of Cash Pay/PIK Notes and paid down $172.0 million of Old Notes with cash on hand. Included in the $365.3 million of Old Notes tendered for exchange was $4.0 million owned by an affiliate of one of the Sponsors. The Company incurred $5.2 million of fees to third parties in connection with this transaction that were reported as a loss on debt refinancing in the consolidated statement of operations in the fiscal year ended June 30, 2013. Included in these third party fees was $2.9 million paid to affiliates of one of the Sponsors. | ||||||||
Cash interest on the Cash Pay/PIK Notes accrues at the rate of 15% per annum and is payable semi-annually on March 30 and September 30, commencing on September 30, 2013. For any interest period after March 30, 2014 up to and including July 1, 2018, interest in addition to the cash interest payable will be paid by increasing the principal amount of the outstanding PIK Notes (“PIK Interest”). Additionally, the Cash Pay/PIK Notes are required to be paid at a premium of 13% at their contractual maturity, which is recorded as an original issuance discount. Including PIK interest and the original issuance discount, the annual effective interest rate on the Cash Pay/PIK Notes is 19.8%. |
Derivative_Instruments
Derivative Instruments | 12 Months Ended |
Jun. 30, 2014 | |
Derivative Instruments and Hedges, Assets [Abstract] | ' |
Derivative Instruments | ' |
DERIVATIVE INSTRUMENTS | |
In April 2011, the Company entered into three new interest rate swap agreements for an aggregate notional amount of $950.0 million, each of which became effective on July 1, 2011. One swap agreement, which expired on June 1, 2013, was for a notional amount of $325.0 million and effectively fixed future interest payments at a maximum rate of 9.44%. The other two swap agreements, one of which was entered into with an affiliate of one of the Sponsors, are for notional amounts of $312.5 million each and effectively fix future interest payments at a rate of 6.26% through June 1, 2015. The fair values of the interest rate swap liabilities were $11.2 million and $20.2 million at June 30, 2014 and 2013, and recorded in accrued liabilities and other long-term liabilities, respectively. | |
Historically, both interest rate swaps were highly effective for accounting purposes and have qualified for cash flow hedge accounting treatment. Accordingly, changes in their fair values have been recorded in other comprehensive income or loss. On September 4, 2014, in connection with the Debt Restructuring described in Note 2, "Summary of Significant Accounting Policies," under "Basis of Presentation," EM LLC entered into agreements to terminate its interest rate swaps at termination values payable to the counter-parties in the form of a combination of term loans and preferred stock. As a result, approximately $7 million will be reclassified from other comprehensive loss to the statement of operations, net of tax, during the first quarter of fiscal 2015. |
Fair_Value_Of_Financial_Instru
Fair Value Of Financial Instruments | 12 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||||||||||||
The Company determines the fair value of assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. The fair value hierarchy is based on whether the inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's own assumptions of what market participants would use. The fair value hierarchy includes three levels of inputs that may be used to measure fair value as described below. | ||||||||||||||||||||||||||
Level One - Quoted prices for identical instruments in active markets. | ||||||||||||||||||||||||||
Level Two - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations for which all significant inputs are observable market data. | ||||||||||||||||||||||||||
Level Three - Unobservable inputs significant to the fair value measurement supported by little or no market activity. | ||||||||||||||||||||||||||
In some cases, the inputs used to measure fair value may meet the definition of more than one level of fair value hierarchy. The lowest level input that is significant to the fair value measurement in its totality determines the applicable level in the fair value hierarchy. | ||||||||||||||||||||||||||
The following table presents the carrying amounts and fair values of the interest rate swap liabilities, which are measured at fair value on a recurring basis based on the framework described in Note 9, "Derivative Instruments," and the fair values of the Company's debt, which is recorded at carrying value (in thousands): | ||||||||||||||||||||||||||
30-Jun-14 | 30-Jun-13 | |||||||||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Carrying Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Recurring: | ||||||||||||||||||||||||||
Interest rate swap liability | $ | 11,223 | $ | — | $ | 11,223 | $ | — | $ | 20,232 | $ | — | $ | 20,232 | $ | — | ||||||||||
Disclosure only: | ||||||||||||||||||||||||||
Variable rate debt | 1,067,552 | — | 824,715 | — | 1,078,818 | — | 962,134 | — | ||||||||||||||||||
Fixed rate debt | 215,909 | — | — | 232,102 | 206,422 | — | — | 206,422 | ||||||||||||||||||
The fair values of the Company’s variable rate debt at the dates presented above were based on each instrument’s trading value in markets that are not active. The Company's fixed rate debt is comprised of the Company's Cash Pay/PIK Notes, on which there is currently no observable trading; therefore, the fair value of the Cash Pay/PIK Notes at June 30, 2014 was estimated using a premium of 107.5, which is the current call price. Cash and cash equivalents, restricted cash, student accounts receivable, notes receivable, the revolving credit facility, accounts payable and accrued expenses have fair values that approximate their carrying values. | ||||||||||||||||||||||||||
As described in Note 4, "Property and Equipment" and Note 5, "Goodwill and Intangible Assets," the Company recorded asset impairments during fiscal 2014 and fiscal 2013. This resulted in the following assets being measured at fair value on a non-recurring basis using Level Three inputs: | ||||||||||||||||||||||||||
• | goodwill at The Art Institutes reporting unit at March 31, 2014 and March 31, 2013; | |||||||||||||||||||||||||
• | the trade name for The Art Institutes reporting unit at June 30, 2014, March 31, 2014 and March 31, 2013; | |||||||||||||||||||||||||
• | the licensing, accreditation and Title IV program participation assets at The Art Institutes reporting units at June 30, 2014; | |||||||||||||||||||||||||
• | certain long-lived assets at the Brown Mackie Colleges and Argosy University reporting units. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
11 | INCOME TAXES | |||||||||||
The composition of (loss) income before taxes from domestic and foreign locations was as follows for the fiscal years ended June 30 (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Domestic | $ | (619,243 | ) | $ | (233,153 | ) | $ | (1,446,575 | ) | |||
Foreign | 1,963 | 801 | 1,568 | |||||||||
Loss before taxes | $ | (617,280 | ) | $ | (232,352 | ) | $ | (1,445,007 | ) | |||
The components of income tax expense (benefit) reflected in the accompanying consolidated statements of operations were as follows for the fiscal years ended June 30 (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current taxes: | ||||||||||||
Federal | $ | 7,472 | $ | 32,441 | $ | 104,730 | ||||||
State and local | 2,891 | (1,563 | ) | 14,027 | ||||||||
Total current tax expense | 10,363 | 30,878 | 118,757 | |||||||||
Deferred tax expense (benefit) | 36,274 | (18,840 | ) | (130,194 | ) | |||||||
Income tax expense (benefit) | $ | 46,637 | $ | 12,038 | $ | (11,437 | ) | |||||
Income tax expense (benefit) reflected in the accompanying consolidated statements of operations varies from the amounts that would have been provided by applying the United States federal statutory income tax rate to earnings before income taxes as shown below for the fiscal years ended June 30 (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S. federal statutory income tax | $ | (216,048 | ) | $ | (81,323 | ) | $ | (505,752 | ) | |||
State and local income taxes, net of federal benefit | (10,708 | ) | (196 | ) | (6,741 | ) | ||||||
Increase in valuation allowance | 127,738 | 151 | 3,069 | |||||||||
State tax settlements, net of federal benefit | — | (3,808 | ) | — | ||||||||
Permanent items | 1,880 | 2,913 | 1,477 | |||||||||
Nondeductible goodwill | 151,812 | 94,805 | 497,991 | |||||||||
Uncertain tax positions | (2,956 | ) | (490 | ) | (602 | ) | ||||||
Other items, net | (5,081 | ) | (14 | ) | (879 | ) | ||||||
Income tax expense (benefit) | $ | 46,637 | $ | 12,038 | $ | (11,437 | ) | |||||
The effective tax rates in the current and prior fiscal years were significantly impacted by goodwill impairment charges, the majority of which were not deductible for income tax purposes. | ||||||||||||
Net deferred income tax assets and liabilities consisted of the following at June 30 (in thousands): | ||||||||||||
2014 | 2013 | |||||||||||
Current deferred tax assets: | ||||||||||||
Allowance for doubtful accounts | $ | 71,689 | $ | 71,769 | ||||||||
Accrued wages | 3,481 | 6,872 | ||||||||||
Interest rate swap | 4,887 | — | ||||||||||
Other | 9,069 | 3,434 | ||||||||||
Gross current deferred tax assets | 89,126 | 82,075 | ||||||||||
Less valuation allowance | (64,624 | ) | (5,148 | ) | ||||||||
Total current deferred tax assets | $ | 24,502 | $ | 76,927 | ||||||||
Noncurrent deferred tax assets: | ||||||||||||
Interest rate swap | $ | — | $ | 8,819 | ||||||||
Deferred liabilities | 30,045 | 35,683 | ||||||||||
Foreign and state net operating losses | 12,834 | 7,990 | ||||||||||
Property and equipment | 7,847 | — | ||||||||||
Share-based compensation | 25,493 | 24,023 | ||||||||||
Other | 35,910 | 26,981 | ||||||||||
Gross noncurrent deferred tax assets | 112,129 | 103,496 | ||||||||||
Less valuation allowance | (87,639 | ) | (19,677 | ) | ||||||||
Total noncurrent deferred tax assets | 24,490 | 83,819 | ||||||||||
Noncurrent deferred tax liabilities: | ||||||||||||
Intangible assets | 82,569 | 130,491 | ||||||||||
Property and equipment | — | 25,657 | ||||||||||
Other | 498 | 293 | ||||||||||
Total noncurrent deferred tax liabilities | 83,067 | 156,441 | ||||||||||
Total net noncurrent deferred tax liabilities | $ | 58,577 | $ | 72,622 | ||||||||
As discussed in Note 5, "Goodwill and Intangible Assets," the Company incurred long-lived asset impairment charges of $568.2 million, of which $433.7 million related to goodwill that was not deductible, and $300.1 million, of which $270.9 million related to goodwill that was not deductible, in fiscal 2014 and 2013, respectively. These impairment charges were a significant factor contributing to the Company being in a cumulative pre-tax loss position for the past three years. However, even if the goodwill impairment charges are excluded, the Company is still nonetheless in a cumulative pre-tax loss position for the past three years. Management considered the cumulative loss for book purposes as well as sources of taxable income and concluded that it was not more-likely-than-not that the Company’s deferred tax assets would be fully realized. As such, the Company recorded a broader valuation allowance against both its federal and state deferred tax assets as of June 30, 2014. In contrast, as of June 30, 2013, the Company had recorded a valuation allowance only against certain state deferred tax assets. | ||||||||||||
At June 30, 2014, the Company had state net operating loss carryforwards of approximately $250.0 million available to offset future taxable income and a related deferred tax asset of $12.8 million. The carry forwards expire at varying dates beginning in fiscal 2025 through fiscal 2034. The Company has determined that it is currently more-likely-than-not that the deferred tax assets associated with $245.2 million of its state net operating loss carryforwards will not be realized and has established a valuation allowance equal to the gross deferred tax asset balance of $12.6 million related to these net operating loss carryforwards. In addition, certain of the Company’s state net operating losses may be subject to annual limitations due to these states’ adoption of the ownership change limitations imposed by Internal Revenue Code Section 382 or similar state provisions, which could result in the expiration of the state net operating loss carryforwards before they can be utilized. | ||||||||||||
The recognition and measurement of tax benefits associated with uncertain income tax positions requires the use of judgment and estimates by management, which are inherently subjective. Changes in judgment about uncertain tax positions taken in previous periods may result from new information concerning an uncertain tax position, completion of an audit or the expiration of statutes of limitation. These changes may create volatility in the Company’s effective tax rate in future periods. | ||||||||||||
A reconciliation of the beginning and ending balance of unrecognized tax benefits, excluding interest expense and the indirect benefits of state taxes, for the fiscal years ended June 30 is as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Unrecognized tax benefits, beginning of year | $ | 3,962 | $ | 4,523 | $ | 5,438 | ||||||
(Decrease) in prior year unrecognized tax benefits | — | — | (93 | ) | ||||||||
Increase in current year unrecognized tax benefits | — | 127 | 58 | |||||||||
(Decrease) in unrecognized tax benefits due to the expiration of statutes of limitation | (2,926 | ) | (688 | ) | (880 | ) | ||||||
Unrecognized tax benefits, end of year | $ | 1,036 | $ | 3,962 | $ | 4,523 | ||||||
All of the Company’s $1.0 million in unrecognized tax benefits, excluding interest expense and the indirect benefit of state taxes, would affect the annual effective tax rate if recognized. It is reasonably possible that the total amount of unrecognized tax benefits will decrease by $0.8 million within the next twelve months due to the expiration of certain statutes of limitation. The resulting benefit, if recognized, would affect the tax rate as a discrete item in the quarter ending March 31, 2015. Interest expense and penalties accrued in connection with unrecognized tax benefits were not significant in fiscal 2014, 2013 and 2012. | ||||||||||||
The statutes of limitation for the Company’s U.S. income tax returns are closed for years through fiscal 2010. The Company's U.S. income tax return for fiscal 2011 was examined by the Internal Revenue Service. The Internal Revenue Service closed the examination without making any adjustments to the return. The statutes of limitation for the Company’s state and local income tax returns for prior periods vary by jurisdiction. However, the statutes of limitation with respect to the major jurisdictions in which the Company files state and local tax returns are generally closed for years through fiscal 2009. | ||||||||||||
During the current fiscal year, the state of Pennsylvania enacted legislation which, among other things, changed how revenues from the sale of services are sourced for Pennsylvania income tax purposes effective for tax years beginning after December 31, 2013, which for the Company is fiscal 2015. The Company recorded the impact of this law change, which management estimated will result in a deferred tax benefit of approximately $3.2 million, as a discrete item in the first quarter of fiscal 2014. In addition, the state of New York enacted legislation during the current fiscal year which, among other things, changed the state’s corporate income tax rate, the tax filing methodology, and how revenues from the sales are services are sourced for New York income tax purposes. The Company recorded the impact of this law change, which management estimated will result in a deferred tax benefit of approximately $3.3 million, as a discrete item in the third quarter of fiscal 2014. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Share-Based Compensation | ' | ||||||||||||
12 | SHARE-BASED COMPENSATION | ||||||||||||
Overview | |||||||||||||
The Company awards share-based compensation under the Education Management Corporation 2012 Omnibus Long-Term Incentive Plan (the “2012 Omnibus Plan”), which replaced the Education Management Corporation Omnibus Long-Term Incentive Plan (the "2009 Omnibus Plan") that became effective upon the completion of the Initial Public Offering. The 2009 Omnibus Plan and the 2006 Stock Option Plan, which it replaced, are now frozen. The 2012 Omnibus Plan may be used to issue stock options, stock appreciation rights, restricted stock, restricted stock units and other forms of long-term incentive compensation. | |||||||||||||
The Company amended the 2012 Omnibus Plan in November 2013 to increase the number of shares of Common Stock authorized for issuance by 4.0 million and to allow the Company the ability to grant future cash and stock-based awards that generally have a performance period of one year. As of June 30, 2014, approximately 7.7 million shares of Common Stock remain reserved for issuance under the 2012 Omnibus Plan. | |||||||||||||
The Company recognized $16.4 million, $17.1 million and $13.3 million of share-based compensation expense related to outstanding time-based stock options, restricted stock and other awards during fiscal 2014, 2013 and 2012, respectively. Compensation expense for fiscal 2014 and 2013 includes additional expense recognized upon the termination of former employees who are were no longer required to provide services to obtain certain awards in accordance with the terms of their employment agreements. | |||||||||||||
During the fiscal year ended June 30, 2014, the Company issued 1.7 million shares of Common Stock related to share-based compensation activity that resulted in gross excess tax benefits of $3.4 million and stock-option exercise proceeds of $3.0 million. The Company received approximately $2.4 million from option holders in fiscal 2012 from the exercise of stock options, on which the excess tax benefit was $0.3 million. Share-based compensation activity was not significant in fiscal 2013. Gross excess tax benefits and stock-option exercise proceeds are classified as cash inflows from financing activities in the accompanying consolidated statement of cash flows. | |||||||||||||
In connection with the vesting of restricted stock units that occurred in the fiscal year ended June 30, 2014, the Company paid $3.3 million in minimum tax withholdings on behalf of its employees, which is classified as a cash outflow from financing activities. In exchange, the Company retained 0.3 million shares, which was equal to the value of the required tax withholding payments on the vesting dates. | |||||||||||||
Time-based Stock Options | |||||||||||||
The Company utilizes the Black-Scholes-Merton method to estimate the fair value of time-based options. The expected term of the Company's options is determined using a simplified method based on the average of the weighted vesting terms and the contractual term of the options. Expected volatility is determined using the historical volatility of a six-company peer group, all of which have publicly traded stock. The risk-free interest rate assumption is determined using the yield on a zero-coupon U.S. Treasury strip by extrapolating to a forward-yield curve. The Company has not historically declared dividends and does not intend to do so in the foreseeable future; therefore, a dividend yield of zero is used. Finally, the forfeiture rate at the date of grant (as depicted in the table below) is generally determined using a historical rate based on actual experience; however, management reviews actual forfeitures on a periodic basis and updates actual and estimated future compensation expense accordingly. Below is a summary of the weighted-average assumptions used for time-based options granted during the years ended June 30, which excludes the replacement options granted in fiscal 2013 in connection with the Options Exchange that is explained separately below: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average fair value of options | $ | 7.66 | $ | 2.76 | $ | 9.29 | |||||||
Expected dividend yield | — | % | — | % | — | % | |||||||
Expected volatility | 64 | % | 78.6 | % | 45 | % | |||||||
Risk-free interest rate | 1.9 | % | 1.2 | % | 1.5 | % | |||||||
Expected forfeiture rate at the date of grant | 12.9 | % | — | % | 7.3 | % | |||||||
Expected term | 6.25 years | 7.5 years | 6.25 years | ||||||||||
Vesting periods | 4 years | 4 years | 4 years | ||||||||||
A roll forward of time-based option activity during fiscal 2014 is presented below. | |||||||||||||
Options (in thousands) | Weighted | Weighted | Aggregate | ||||||||||
Average | Average | Intrinsic | |||||||||||
Exercise Price | Remaining | Value (in | |||||||||||
Contractual | thousands) | ||||||||||||
Life | |||||||||||||
Outstanding at June 30, 2013 | 10,989 | $ | 4.06 | 7.5 years | $ | 17,120 | |||||||
Granted | 1,534 | $ | 12.74 | ||||||||||
Forfeited | (911 | ) | $ | 5.54 | |||||||||
Exercised | (753 | ) | $ | 3.58 | |||||||||
Expired | (159 | ) | $ | 3.57 | |||||||||
Outstanding at June 30, 2014 | 10,700 | $ | 4.81 | 6.9 years | |||||||||
Exercisable at June 30, 2014 | 4,498 | $ | 3.61 | 4.7 years | $ | — | |||||||
Restricted Stock Units | |||||||||||||
A roll forward of restricted stock units ("RSU") activity during fiscal 2014 is presented below. | |||||||||||||
RSUs (in thousands) | Weighted | ||||||||||||
Average Share Price | |||||||||||||
Outstanding at June 30, 2013 | 3,020 | $ | 3.47 | ||||||||||
Granted | 668 | $ | 12.74 | ||||||||||
Vested | (968 | ) | $ | 3.64 | |||||||||
Forfeited | (648 | ) | $ | 4.45 | |||||||||
Outstanding at June 30, 2014 | 2,072 | $ | 6.04 | ||||||||||
During fiscal 2014, the Company used a weighted average expected forfeiture rate for restricted stock units on their grant dates of 15.2%. | |||||||||||||
Performance-based Stock Options | |||||||||||||
Performance-based stock options vest upon the greater of the percentage of the Company’s common stock sold by certain investment funds affiliated with Providence Equity Partners and Goldman Sachs Capital Partners (together, the “Principal Stockholders”) or on certain return on investment hurdles achieved by the Principal Stockholders. No performance-based options have been granted since fiscal 2009 except for the replacement options granted in connection with the Options Exchange in fiscal 2013 explained below. At June 30, 2014, approximately 920,000 performance-based stock options with a weighted average exercise price of $3.59 per share and expiration dates ranging from August 2016 through October 2018 remain outstanding. | |||||||||||||
Long-Term Incentive Compensation Plan | |||||||||||||
In fiscal 2007, EDMC adopted the Long-Term Incentive Compensation Plan (the “LTIC Plan”). The LTIC Plan consists of a bonus pool that is valued based on returns to Providence Equity Partners and Goldman Sachs Capital Partners in connection with a change in control of EDMC. Out of a total of 1,000,000 units authorized, approximately 367,000 units remain outstanding under the LTIC Plan at June 30, 2014. Each unit represents the right to receive a payment based on the value of the bonus pool. Because the contingent future events that would result in value to the unit-holders are less than probable, no compensation expense has been recognized by the Company during any of the periods following the Transaction. The LTIC Plan is being accounted for as an equity-based plan as the units may be settled in stock or cash at the Company’s discretion, and it is the Company’s intent to settle any future payment out of the LTIC Plan by issuing common stock. At June 30, 2014, there is less than $1 million in unrecognized compensation expense related to the LTIC Plan. | |||||||||||||
Unrecognized Compensation Expense | |||||||||||||
Net of expected forfeitures, the Company's unrecognized compensation expense was as follows at June 30, 2014 for each type of award outstanding (in thousands): | |||||||||||||
Time-based stock options | $ | 19,149 | |||||||||||
Restricted stock units | 8,627 | ||||||||||||
Performance-based stock options | 2,019 | ||||||||||||
Total unrecognized compensation expense | $ | 29,795 | |||||||||||
Compensation expense on time-based stock options and restricted stock units will be recognized over the remaining vesting period for each applicable grant. Compensation expense on performance-based stock options and the LTIC Plan will be recognized once the performance conditions described above become probable of being met. However, pursuant to the debt restructuring described in Note 2, "Significant Accounting Policies," under "Basis of Presentation," any future change in control of EDMC would cause all outstanding stock-options to become fully vested, which would result in the unrecognized compensation expense at the date of a change in control being recognized immediately at this time. | |||||||||||||
Option Exchange | |||||||||||||
In August 2012, the Company's Board of Directors authorized a program (the "Option Exchange") to allow eligible option holders the opportunity to exchange their existing EDMC stock options for replacement stock options having an exercise price of $3.59 per share, which was the closing price for a share of the Company's Common Stock on the Nasdaq Global Select Market ("NASDAQ") on September 13, 2012, the date on which the offer expired. | |||||||||||||
In connection with the Option Exchange, the Company granted approximately 6.3 million time-based and 2.0 million performance-based replacement stock options in return for the cancellation of approximately 8.5 million time-based and 3.0 million performance-based stock options. The Option Exchange was accounted for as a modification of the original awards. Consequently, incremental value to the option holders was calculated using a Black-Scholes-Merton pricing model by taking the value of all time-based stock options on September 13, 2012 using the original option award terms and comparing that to the value of the modified time-based stock options using the new option award terms on September 13, 2012. Because the original awards had exercise prices well in excess of the price of a share of Common Stock on the modification date, the Company used a lattice model to determine the appropriate expected term to use in the Black-Scholes-Merton model. The modification of the original awards resulted in $2.2 million of incremental compensation expense for time-based options, net of expected forfeitures, that is being recognized over the applicable employee service periods, which range from one year to four years. |
Other_Employee_Benefit_Plans
Other Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ' |
Other Employee Benefit Plans | ' |
OTHER EMPLOYEE BENEFIT PLANS | |
At June 30, 2014, the Company sponsors a 401(k) plan that covers substantially all employees under which the Company matches employee contributions to the retirement plan dollar for dollar up to 6%. All participants in the plan vest in the Company’s matching contributions immediately. The Company recorded expense related to the retirement plan of approximately $26.0 million, $27.1 million and $28.5 million for the fiscal years ended June 30, 2014, 2013 and 2012, respectively. Effective September 20, 2014, the Company will suspend its matching program indefinitely. |
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments And Contingencies | ' | |||
14 | COMMITMENTS AND CONTINGENCIES | |||
Qui Tam Matters | ||||
Washington v. Education Management Corporation. On May 3, 2011, a qui tam action captioned United States of America, and the States of California, Florida, Illinois, Indiana, Massachusetts, Minnesota, Montana, New Jersey, New Mexico, New York and Tennessee, and the District of Columbia, each ex rel. Lynntoya Washington and Michael T. Mahoney v. Education Management Corporation, et al. (“Washington”) filed under the federal False Claims Act in April 2007 was unsealed due to the U.S. Department of Justice's decision to intervene in the case. Five of the states listed on the case caption joined the case based on qui tam actions filed under their respective False Claims Acts. The Court granted the Company's motion to dismiss the District of Columbia from the case and denied the Commonwealth of Kentucky's motion to intervene in the case under its consumer protection laws. | ||||
The case, which is pending in federal district court in the Western District of Pennsylvania, relates to whether the Company's compensation plans for admission representatives violated the HEA and U.S. Department of Education regulations prohibiting an institution participating in Title IV programs from providing any commission, bonus or other incentive payment based directly or indirectly on success in securing enrollments to any person or entity engaged in any student recruitment or admissions activity during the period of July 1, 2003 through June 30, 2011. The complaint was initially filed by a former admissions representative at The Art Institute of Pittsburgh Online Division and a former director of training at EDMC Online Higher Education and asserts the relators are entitled to recover treble the amount of actual damages allegedly sustained by the federal government as a result of the alleged activity, plus civil monetary penalties. The complaint does not specify the amount of damages sought but claims that the Company and/or students attending the Company's schools received over $11 billion in funds from participation in Title IV programs and state financial aid programs during the period of alleged wrongdoing. | ||||
On May 11, 2012, the Court ruled on the Company's motion to dismiss the case for failure to state a claim upon which relief can be granted, dismissing the claims that the design of the Company's compensation plan for admissions representatives, which included both quantitative and qualitative factors, violated the incentive compensation rule and allowing common law claims and the allegations that the plan as implemented violated the rule to continue to discovery. On May 8, 2014, the Court denied the Company’s motion for summary judgment based on a statistical analysis of the salary adjustments for admissions representatives under the compensation plan. The Company believes the case to be without merit and intends to vigorously defend itself. From time to time, the Company engages in settlement discussions with respect to this case. At this time, the Company is unable to estimate the amount of any reasonably possible loss related to this matter because of the status of current settlement negotiations and the fact that the Company is only willing to settle the case if a settlement can be negotiated in an amount that the Company believes is reasonable. There can be no assurance that the settlement conversations will lead to a settlement acceptable to all parties and approved by all parties. There can also be no assurance that any settlement will be within amounts currently accrued or be covered by insurance or not be material to the Company. | ||||
In July 2014, our excess insurer filed a declaratory judgment action in federal district court in the Western District of Pennsylvania seeking a ruling that it has no liability to provide coverage to us in connection with Washington and the other qui tam litigation matters. Because of the many questions of fact and law that may arise, the outcome of this legal proceeding is uncertain at this point. | ||||
Sobek v. Education Management Corporation. On March 13, 2012, a qui tam action captioned United States of America, ex rel. Jason Sobek v. Education Management Corporation, et al. filed under the federal False Claims Act on January 28, 2010 was unsealed after the U.S. Department of Justice declined to intervene in the case. The case, which is pending in the federal district court in the Western District of Pennsylvania, alleges that the defendants violated the U.S. Department of Education's regulation prohibiting institutions from making substantial misrepresentations to prospective students, did not adequately track student academic progress and violated the U.S. Department of Education's prohibition on the payment of incentive compensation to admissions representatives. The complaint was filed by a former project associate director of admissions at EDMC Online Higher Education who worked for South University and asserts the relator is entitled to recover treble the amount of actual damages allegedly sustained by the federal government as a result of the alleged activity, plus civil monetary penalties. The complaint does not specify the amount of damages sought but claims that the Company's institutions were ineligible to participate in Title IV programs during the period of alleged wrongdoing. | ||||
In August 2013, the parties to the action, along with the U.S. Department of Justice, participated in a private mediation in which the relator and defendants reached an agreement in principle regarding the financial terms of a potential settlement. The agreement between the parties remains subject to approval by the U.S. Department of Justice. Significant terms remain to be negotiated, and there is no certainty that a final agreement will be reached. The settlement amount agreed to by the parties under the terms of the agreement in principle would be paid by the Company's insurer and the Company would pay an immaterial amount of attorneys' fees incurred by the relator. The ultimate dismissal of the action, should a final settlement be reached, is subject to the Court's approval. | ||||
In the course of settlement discussions regarding the Sobek matter, the U.S. Department of Justice informed the Company that it is the subject of an investigation related to a claim under the federal false claims act by the U. S. Attorney’s Office for the Middle District of Tennessee. Additionally, in March 2014 the U.S. Department of Justice informed the Company that it is the subject of an investigation related to a claim under the federal false claims act by the U.S. Attorney's Office for the Western District of Pennsylvania. The Company plans to cooperate with the U.S. Department of Justice with regard to these matters. However, the Company cannot predict the eventual scope, duration or outcome of the investigations at this time nor can it estimate any amount of a reasonably possible loss related to these investigations because of their status. | ||||
Shareholder Derivative Lawsuits | ||||
On May 21, 2012, a shareholder derivative class action captioned Oklahoma Law Enforcement Retirement System v. Todd S. Nelson, et al. was filed against the directors of the Company in state court located in Pittsburgh, PA. The Company is named as a nominal defendant in the case. The complaint alleges that the defendants violated their fiduciary obligations to the Company's shareholders due to the Company's violation of the U.S. Department of Education's prohibition on paying incentive compensation to admissions representatives, engaging in improper recruiting tactics in violation of Title IV of the HEA and accrediting agency standards, improper classification of job placement data for graduates of its schools and failure to satisfy the U.S. Department of Education's financial responsibility standards. The Company previously received two demand letters from the plaintiff which were investigated by a Special Litigation Committee of the EDMC Board of Directors and found to be without merit. | ||||
The Company and the director defendants filed a motion to dismiss the case with prejudice on August 13, 2012. In response, the plaintiffs filed an amended complaint making substantially the same allegations as the initial complaint on September 27, 2012. The Company and the director defendants filed a motion to dismiss the amended complaint on October 17, 2012. On July 16, 2013, the Court dismissed the claims that the Company engaged in improper recruiting tactics and mismanaged the Company's financial well-being with prejudice and found that the Special Litigation Committee could conduct a supplemental investigation of the plaintiff's claims related to incentive compensation paid to admissions representatives and graduate placement statistics. The Special Litigation Committee filed supplemental reports on October 15, 2013, January 9, 2014 and February 28, 2014, finding no support for the incentive compensation and graduate placement statistic claims. The Court held a hearing on the defendants' supplemental motion to dismiss the case on January 29, 2014 and granted the plaintiff’s request for limited discovery on June 11, 2014. | ||||
On August 3, 2012, a shareholder derivative class action captioned Stephen Bushansky v. Todd S. Nelson, et al. was filed against certain of the directors of the Company in federal district court in the Western District of Pennsylvania. The Company is named as a nominal defendant in the case. The complaint alleges that the defendants violated their fiduciary obligations to the Company's shareholders due to the Company's use of improper recruiting, enrollment admission and financial aid practices and violation of the U.S. Department of Education's prohibition on the payment of incentive compensation to admissions representatives. The Company previously received a demand letter from the plaintiff which was investigated by a Special Litigation Committee of the EDMC Board of Directors and found to be without merit. The Company believes that the claims set forth in the complaint are without merit and intends to vigorously defend itself. The Company and the named director defendants filed a motion to stay the litigation pending the resolution of the Oklahoma Law Enforcement Retirement System shareholder derivative case or, alternatively, dismiss the case on October 19, 2012. On August 5, 2013, the Court granted the Company's motion to stay the case in light of the ruling on the defendants' motion to dismiss the Oklahoma Law Enforcement Retirement System case. | ||||
Because of the many questions of fact and law that may arise, the outcome of these legal proceedings is uncertain at this point. Based on the information presently available, the Company cannot reasonably estimate a range of loss for these actions and, accordingly, has not accrued any liability associated with these actions. | ||||
Securities Class Action | ||||
On September 19, 2014, a securities class action complaint captioned Robb v. Education Management Corporation, et. al was filed against the Company and certain of its executive officers. The complaint alleges violations of Sections 10(b) and 20(a) of the Exchange Act of 1934 and rule 10b-5 promulgated thereunder due to allegedly materially false and misleading statements made by the Company during the period of August 8, 2012 through September 16, 2014 in connection with the Company’s filings with the SEC, press releases and other statements and documents. 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 the information available to us at present, we cannot reasonably estimate a range of loss for this action and, accordingly, we have not accrued any liability associated with this action. | ||||
OIG Subpoena | ||||
On May 24, 2013, the Company received a subpoena from the Office of Inspector General of the U.S. Department of Education requesting policies and procedures related to Argosy University's attendance, withdrawal and return to Title IV policies during the period of July 1, 2010 through December 31, 2011 and detailed information on a number of students who enrolled in Argosy University's Bachelor's of Psychology degree program. The Company plans to cooperate with the Office of Inspector General in connection with its investigation. However, the Company cannot predict the eventual scope, duration or outcome of the investigation at this time nor can it estimate any amount of a reasonably possible loss related to the investigation because of its status. | ||||
State Attorneys General Investigations | ||||
The Company received inquiries from 13 states in January 2014 and an additional state in March 2014 regarding the Company’s business practices. The Attorney General of the Commonwealth of Pennsylvania informed the Company that it will serve as the point of contact for the inquiries related to the Company. The inquiries 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. Several other companies in the proprietary education industry have disclosed that they received similar inquiries. The Company has cooperated with the states involved and, from time to time, engaged in preliminary discussions designed to lead to a settlement of the investigation. However, the Company is unable to estimate the amount of any reasonably possible loss related to this matter or the eventual scope, duration or outcome of the investigation due to the nature and status of the preliminary discussions. | ||||
In January 2013, The New England Institute of Art received a civil investigative demand from the Commonwealth of Massachusetts Attorney General requesting information for the period from January 1, 2010 to the present pursuant to an investigation of practices by the school in connection with marketing and advertising job placement and student outcomes, the recruitment of students and the financing of education. The Company previously responded to a similar request that The New England Institute of Art received in June 2007 and intends to continue to cooperate with the Attorney General in connection with its investigation. However, the Company cannot predict the eventual scope, duration or outcome of the investigation at this time nor can it estimate any amount of a reasonably possible loss related to the investigation because of its status. | ||||
In August 2011, the Company received a subpoena from the Attorney General of the State of New York requesting documents and detailed information for the time period of January 1, 2000 through the present. The Art Institute of New York City is the Company's only school located in New York though the subpoena also addresses fully-online students who reside in the State. The subpoena is primarily related to the Company's compensation of admissions representatives and recruiting activities. The relators in the Washington qui tam case filed the complaint under the State of New York's False Claims Act though the state has not announced an intention to intervene in the matter. The Company intends to continue to cooperate with the investigation. However, the Company cannot predict the eventual scope, duration or outcome of the investigation at this time nor can it estimate any amount of a reasonably possible loss related to the investigation because of its status. | ||||
In December 2010, the Company received a subpoena from the Office of Consumer Protection of the Attorney General of the Commonwealth of Kentucky requesting documents and detailed information for the time period of January 1, 2008 through December 31, 2010. The Company has three Brown Mackie College locations in Kentucky. The Kentucky Attorney General announced an investigation of the business practices of proprietary post-secondary schools and that subpoenas were issued to six proprietary colleges that do business in Kentucky in connection with the investigation. The Company intends to continue to cooperate with the investigation. However, the Company cannot predict the eventual scope, duration or outcome of the investigation at this time nor can it estimate any amount of a reasonably possible loss related to the investigation because of its status. | ||||
In October 2010, Argosy University received a subpoena from the Florida Attorney General's office seeking a wide range of documents related to the Company's institutions, including the nine institutions located in Florida, from January 2, 2006 to the present. The Florida Attorney General has announced that it is investigating potential misrepresentations in recruitment, financial aid and other areas. The Company is cooperating with the investigation, but has also filed a suit to quash or limit the subpoena and to protect information sought that constitutes proprietary or trade secret information. The Company cannot predict the eventual scope, duration or outcome of the investigation at this time nor can it estimate any amount of a reasonably possible loss related to the investigation because of its status. | ||||
Argosy University, Seattle APA Program Accreditation Lawsuits | ||||
In August 2013, a petition was filed in the Superior Court of the State of Washington (King County) in the case of Winters, et al. v. Argosy Education Group, et al. by 20 former students in the Clinical Psychology program offered by the Seattle campus of Argosy University. In December 2013, a similar petition was filed in the same court in the case of McMath, et al. v. Argosy Education Group, et al. by nine former students in the Clinical Psychology program offered by the Seattle campus of Argosy University. Both cases allege negligent misrepresentation due to the failure of the Clinical Psychology program to obtain accreditation from the American Psychology Association ("APA"), breach of contract, violation of the Washington State Consumer Protection Act, negligent infliction of emotional distress, negligence and lack of institutional control, negligent misrepresentation, breach of fiduciary duty, negligent failure to disclose and fraud. The Seattle campus of Argosy University announced that it was teaching-out (i.e., not accepting new students into the program) the Clinical Psychology program in November 2011 due to the inability to obtain APA accreditation. The Company believes the claims in the lawsuits to be without merit and intends to vigorously defend itself. Because of the many questions of fact and law that may arise, the outcome of these legal proceedings is uncertain at this point. Based on the information presently available, the Company cannot reasonably estimate a range of loss for these actions and, accordingly, has not accrued any liability associated with these actions. | ||||
Other Matters | ||||
The Company is a defendant in certain other legal proceedings arising out of the conduct of its business. Additionally, the Company is subject to compliance reviews by various state and federal agencies which provide student financial aid programs, of which noncompliance may result in liability for educational benefits paid as well as fines and other corrective action. In the opinion of management, based upon an investigation of these matters and discussion with legal counsel, the ultimate outcome of such other legal proceedings and compliance reviews, individually and in the aggregate, is not expected to have a material adverse effect on the Company’s financial position, results of operations or liquidity. | ||||
Lease Commitments | ||||
The Company leases certain classroom, dormitory and office space as well as equipment and automobiles under operating leases that expire on various future dates. Rent expense under these leases was $215.9 million, $202.3 million and $191.8 million for the fiscal years ended June 30, 2014, 2013 and 2012, respectively. Rent expense also includes short-term commitments for student housing of $50.1 million, $47.9 million and $51.4 million during the fiscal years ended June 30, 2014, 2013 and 2012, respectively. Certain of the Company’s operating leases contain provisions for escalating payments and options for renewal. | ||||
As of June 30, 2014, the annual minimum future commitments under non-cancelable, long-term operating leases were as follows for the fiscal years ending June 30, 2015 to 2019 and thereafter (in thousands): | ||||
2015 | $ | 184,954 | ||
2016 | 149,890 | |||
2017 | 142,686 | |||
2018 | 125,514 | |||
2019 | 110,384 | |||
Thereafter | 303,765 | |||
Other Commitments | ||||
At June 30, 2014, the Company has provided $19.3 million of surety bonds primarily provided to state regulatory agencies. The Company is required to maintain a deposit in a collateral account for a portion of the bond amount outstanding, which has resulted in $7.3 million being classified as restricted cash at June 30, 2014. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |
Jun. 30, 2014 | ||
Related Party Transactions [Abstract] | ' | |
Related Party Transactions | ' | |
15 | RELATED PARTY TRANSACTIONS | |
South University LLC, a wholly-owned subsidiary of the Company, leased facilities under a long-term arrangement from two separate entities owned by John T. South, one of the Company’s executive officers. Total rental payments under these arrangements approximated $0.5 million and $2.1 million in fiscal 2013 and 2012, respectively. The facilities were sold to an unrelated third party in September 2012. Mr. South paid the Company $0.8 million in connection with the closing of the sale of the properties due to the Company's renegotiation of the leases prior to the sale. | ||
In connection with the March 2013 and March 2012 refinancings described in Note 8, "Short-Term and Long-Term Debt," the Company paid $2.9 million and $0.7 million, respectively, to affiliates of Goldman Sachs Capital Partners, one of the Sponsors. The Company utilized United States Security Associates ("USSA") for security services for several of its schools through the first half of fiscal 2013, for which an affiliate of one of Goldman Sachs Capital Partners owns a significant equity stake. Fees paid to USSA were approximately $1.4 million and $2.7 million during fiscal 2013 and 2012, respectively. | ||
The Company does business with two companies affiliated with Leeds Equity Partners, one of the Sponsors. The Company licenses student information system software from Campus Management Corp (“CMC”). The Company paid licensing, maintenance and consulting fees to CMC of approximately $2.8 million, $3.2 million and $2.1 million in the fiscal years ended June 30, 2014, 2013 and 2012, respectively. The Company also uses PeopleScout, Inc., d/b/a StudentScout for contact management services when processing some of its inquiries from prospective students. During fiscal 2014, 2013 and 2012, the Company paid servicing fees to StudentScout of approximately $0.9 million, $1.8 million and $3 million, respectively. The Company also utilizes Ex Libris for information technology maintenance, which was owned by Leeds Equity Partners through November 2012. The Company paid Ex Libris $0.3 million in each of the fiscal years ended June 30, 2013 and 2012. | ||
The Company also does business with several companies affiliated with Providence Equity Partners, one of the Sponsors. The Company purchases software and related supplies from CDW Corporation and its affiliates, the largest of which is CDW Government, Inc. (collectively, “CDW”). During fiscal 2014, 2013 and 2012, the Company purchased approximately $4.4 million, $0.7 million and $0.3 million, respectively, of equipment from CDW. The Company also uses Assessment Technologies Institute, LLC for computer software that tests the skills of the Company’s students in various academic fields. During fiscal 2014, 2013 and 2012, the Company paid Assessment Technologies Institute, LLC approximately $0.8 million, $0.7 million and $0.5 million, respectively. The Company has also engaged Kroll Ontrack for litigation management and electronic discovery document retention. Total fees paid to Kroll Ontrack related to such services approximated $5.2 million, $0.5 million and $0.4 million in fiscal 2014, 2013 and 2012, respectively. |
Guarantor_Subsidiaries_Financi
Guarantor Subsidiaries Financial Information | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Guarantor Subsidiaries Financial Information [Abstract] | ' | ||||||||||||||||||||||||
Guarantor Subsidiaries Financial Information | ' | ||||||||||||||||||||||||
16 | GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION | ||||||||||||||||||||||||
The Cash Pay/PIK Notes described in Note 8, "Short-Term and Long-Term Debt" are fully and unconditionally guaranteed by EDMC and all of EM LLC’s existing direct and indirect domestic restricted subsidiaries, other than any subsidiary that directly owns or operates a school, or has been formed for such purposes, and subsidiaries that have no material assets (collectively, the “Guarantor Subsidiaries”). All other subsidiaries of EM LLC, either direct or indirect, (the “Non-Guarantor Subsidiaries”) do not guarantee the Cash Pay/PIK Notes. The following legal entities, which are wholly owned by EM LLC, became part of the Guarantor Subsidiaries after June 30, 2014: | |||||||||||||||||||||||||
•Brown Mackie Education Corporation; | |||||||||||||||||||||||||
•Education Finance II LLC; | |||||||||||||||||||||||||
•South University Research Corporation; and | |||||||||||||||||||||||||
•The Art Institutes International LLC. | |||||||||||||||||||||||||
The following tables present the condensed consolidated financial position of EM LLC, the Guarantor Subsidiaries, the Non-Guarantor Subsidiaries and EDMC as of June 30, 2014 and 2013. The results of operations and comprehensive loss and the condensed statements of cash flows for the fiscal years ended June 30, 2014, 2013 and 2012 are also presented for EM LLC, the Guarantor Subsidiaries, the Non-Guarantor Subsidiaries and EDMC. | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEET | |||||||||||||||||||||||||
June 30, 2014 (In thousands) | |||||||||||||||||||||||||
EM LLC | Guarantor | Non-Guarantor | Eliminations | EM LLC | EDMC | Eliminations | EDMC | ||||||||||||||||||
Subsidiaries | Subsidiaries | Consolidated | Consolidated | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | (14,680 | ) | $ | 83 | $ | 234,478 | $ | — | $ | 219,881 | $ | 50,686 | $ | — | $ | 270,567 | ||||||||
Restricted cash | 42,916 | — | 221,490 | — | 264,406 | 7,275 | — | 271,681 | |||||||||||||||||
Student and other receivables, net | 442 | 144 | 267,504 | — | 268,090 | — | — | 268,090 | |||||||||||||||||
Other current assets | 30,049 | 888 | 34,691 | — | 65,628 | — | — | 65,628 | |||||||||||||||||
Total current assets | 58,727 | 1,115 | 758,163 | — | 818,005 | 57,961 | — | 875,966 | |||||||||||||||||
Property and equipment, net | 66,901 | 5,804 | 356,752 | — | 429,457 | — | — | 429,457 | |||||||||||||||||
Goodwill | 7,328 | — | 336,078 | — | 343,406 | — | — | 343,406 | |||||||||||||||||
Intangible assets, net | 901 | 19 | 168,903 | — | 169,823 | — | — | 169,823 | |||||||||||||||||
Investment in subsidiaries | 356,375 | — | — | (356,375 | ) | — | (471,203 | ) | 471,203 | — | |||||||||||||||
Intercompany balances | 668,366 | (34,161 | ) | (761,313 | ) | — | (127,108 | ) | 127,108 | — | — | ||||||||||||||
Other long-term assets | 25,314 | — | 33,070 | — | 58,384 | — | — | 58,384 | |||||||||||||||||
Total assets | $ | 1,183,912 | $ | (27,223 | ) | $ | 891,653 | $ | (356,375 | ) | $ | 1,691,967 | $ | (286,134 | ) | $ | 471,203 | $ | 1,877,036 | ||||||
Liabilities and shareholders’ equity (deficit) | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Current portion of long-term debt and revolving credit facility | $ | 231,765 | $ | — | $ | — | $ | — | $ | 231,765 | $ | — | $ | — | $ | 231,765 | |||||||||
Other current liabilities | 129,892 | 2,913 | 270,755 | — | 403,560 | — | — | 403,560 | |||||||||||||||||
Total current liabilities | 361,657 | 2,913 | 270,755 | — | 635,325 | — | — | 635,325 | |||||||||||||||||
Long-term debt, less current portion | 1,271,586 | — | — | — | 1,271,586 | — | — | 1,271,586 | |||||||||||||||||
Other long-term liabilities | 21,695 | 119 | 174,607 | — | 196,421 | — | — | 196,421 | |||||||||||||||||
Deferred income taxes | 177 | 120 | 59,541 | — | 59,838 | (1,261 | ) | — | 58,577 | ||||||||||||||||
Total liabilities | 1,655,115 | 3,152 | 504,903 | — | 2,163,170 | (1,261 | ) | — | 2,161,909 | ||||||||||||||||
Total shareholders’ equity (deficit) | (471,203 | ) | (30,375 | ) | 386,750 | (356,375 | ) | (471,203 | ) | (284,873 | ) | 471,203 | (284,873 | ) | |||||||||||
Total liabilities and shareholders’ equity (deficit) | $ | 1,183,912 | $ | (27,223 | ) | $ | 891,653 | $ | (356,375 | ) | $ | 1,691,967 | $ | (286,134 | ) | $ | 471,203 | $ | 1,877,036 | ||||||
CONDENSED CONSOLIDATED BALANCE SHEET | |||||||||||||||||||||||||
June 30, 2013 (In thousands) | |||||||||||||||||||||||||
EM LLC | Guarantor | Non-Guarantor | Eliminations | EM LLC | EDMC | Eliminations | EDMC | ||||||||||||||||||
Subsidiaries | Subsidiaries | Consolidated | Consolidated | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | (10,777 | ) | $ | 139 | $ | 141,110 | $ | — | $ | 130,472 | $ | 223 | $ | — | $ | 130,695 | ||||||||
Restricted cash | 46,982 | — | 224,358 | — | 271,340 | — | — | 271,340 | |||||||||||||||||
Student and other receivables, net | 134 | 253 | 238,565 | — | 238,952 | 1 | — | 238,953 | |||||||||||||||||
Other current assets | 27,488 | 570 | 102,573 | — | 130,631 | — | — | 130,631 | |||||||||||||||||
Total current assets | 63,827 | 962 | 706,606 | — | 771,395 | 224 | — | 771,619 | |||||||||||||||||
Property and equipment, net | 65,018 | 5,984 | 454,623 | — | 525,625 | — | — | 525,625 | |||||||||||||||||
Goodwill | 7,328 | — | 769,825 | — | 777,153 | — | — | 777,153 | |||||||||||||||||
Intangible assets, net | 1,101 | 28 | 299,306 | — | 300,435 | — | — | 300,435 | |||||||||||||||||
Investment in subsidiaries | 846,826 | — | — | (846,826 | ) | — | 187,289 | (187,289 | ) | — | |||||||||||||||
Intercompany balances | 653,504 | (31,016 | ) | (791,213 | ) | — | (168,725 | ) | 168,725 | — | — | ||||||||||||||
Other long-term assets | 5,059 | — | 43,465 | — | 48,524 | — | — | 48,524 | |||||||||||||||||
Total assets | $ | 1,642,663 | $ | (24,042 | ) | $ | 1,482,612 | $ | (846,826 | ) | $ | 2,254,407 | $ | 356,238 | $ | (187,289 | ) | $ | 2,423,356 | ||||||
Liabilities and shareholders’ equity (deficit) | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Current portion of long-term debt and revolving credit facility | $ | 86,850 | $ | — | $ | 226 | $ | — | $ | 87,076 | $ | — | $ | — | $ | 87,076 | |||||||||
Other current liabilities | 51,558 | 3,018 | 344,397 | — | 398,973 | 49 | — | 399,022 | |||||||||||||||||
Total current liabilities | 138,408 | 3,018 | 344,623 | — | 486,049 | 49 | — | 486,098 | |||||||||||||||||
Long-term debt, less current portion | 1,273,214 | — | — | — | 1,273,214 | (50 | ) | — | 1,273,164 | ||||||||||||||||
Other long-term liabilities | 41,519 | 248 | 193,849 | — | 235,616 | — | — | 235,616 | |||||||||||||||||
Deferred income taxes | 2,233 | 399 | 69,607 | — | 72,239 | 383 | — | 72,622 | |||||||||||||||||
Total liabilities | 1,455,374 | 3,665 | 608,079 | — | 2,067,118 | 382 | — | 2,067,500 | |||||||||||||||||
Total shareholders’ equity (deficit) | 187,289 | (27,707 | ) | 874,533 | (846,826 | ) | 187,289 | 355,856 | (187,289 | ) | 355,856 | ||||||||||||||
Total liabilities and shareholders’ equity (deficit) | $ | 1,642,663 | $ | (24,042 | ) | $ | 1,482,612 | $ | (846,826 | ) | $ | 2,254,407 | $ | 356,238 | $ | (187,289 | ) | $ | 2,423,356 | ||||||
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS | |||||||||||||||||||||||||
For the Fiscal Year Ended June 30, 2014 (In thousands) | |||||||||||||||||||||||||
EM LLC | Guarantor Subsidiaries | Non-Guarantor | Eliminations | EM LLC | EDMC | Eliminations | EDMC | ||||||||||||||||||
Subsidiaries | Consolidated | Consolidated | |||||||||||||||||||||||
Net revenues | $ | — | $ | 7,684 | $ | 2,265,052 | $ | — | $ | 2,272,736 | $ | — | $ | — | $ | 2,272,736 | |||||||||
Costs and expenses: | |||||||||||||||||||||||||
Educational services | 65,655 | 10,285 | 1,297,758 | — | 1,373,698 | 1 | — | 1,373,699 | |||||||||||||||||
General and administrative | (61,141 | ) | (751 | ) | 729,459 | — | 667,567 | — | — | 667,567 | |||||||||||||||
Depreciation and amortization | 28,744 | 631 | 123,126 | — | 152,501 | — | — | 152,501 | |||||||||||||||||
Long-lived asset impairments | — | — | 568,216 | 568,216 | 568,216 | ||||||||||||||||||||
Total costs and expenses | 33,258 | 10,165 | 2,718,559 | — | 2,761,982 | 1 | — | 2,761,983 | |||||||||||||||||
Loss before interest and income taxes | (33,258 | ) | (2,481 | ) | (453,507 | ) | — | (489,246 | ) | (1 | ) | — | (489,247 | ) | |||||||||||
Interest expense (income), net | 128,650 | — | (609 | ) | — | 128,041 | (8 | ) | — | 128,033 | |||||||||||||||
Deficit in loss of subsidiaries | (489,781 | ) | — | — | 489,781 | — | (663,921 | ) | 663,921 | — | |||||||||||||||
Loss before income taxes | (651,689 | ) | (2,481 | ) | (452,898 | ) | 489,781 | (617,287 | ) | (663,914 | ) | 663,921 | (617,280 | ) | |||||||||||
Income tax expense | 12,232 | 187 | 34,215 | — | 46,634 | 3 | — | 46,637 | |||||||||||||||||
Net loss | $ | (663,921 | ) | $ | (2,668 | ) | $ | (487,113 | ) | $ | 489,781 | $ | (663,921 | ) | $ | (663,917 | ) | $ | 663,921 | $ | (663,917 | ) | |||
Net change in unrecognized loss on interest rate swaps, net of tax | $ | 6,099 | $ | — | $ | — | $ | — | $ | 6,099 | $ | 6,099 | $ | (6,099 | ) | $ | 6,099 | ||||||||
Foreign currency translation loss | (670 | ) | — | (670 | ) | 670 | (670 | ) | (670 | ) | 670 | (670 | ) | ||||||||||||
Other comprehensive income | 5,429 | — | (670 | ) | 670 | 5,429 | 5,429 | (5,429 | ) | 5,429 | |||||||||||||||
Comprehensive loss | $ | (658,492 | ) | $ | (2,668 | ) | $ | (487,783 | ) | $ | 490,451 | $ | (658,492 | ) | $ | (658,488 | ) | $ | 658,492 | $ | (658,488 | ) | |||
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS | |||||||||||||||||||||||||
For the Fiscal Year Ended June 30, 2013 (In thousands) | |||||||||||||||||||||||||
EM LLC | Guarantor Subsidiaries | Non-Guarantor | Eliminations | EM LLC | EDMC | Eliminations | EDMC | ||||||||||||||||||
Subsidiaries | Consolidated | Consolidated | |||||||||||||||||||||||
Net revenues | $ | — | $ | 8,392 | $ | 2,490,207 | $ | — | $ | 2,498,599 | $ | — | $ | — | $ | 2,498,599 | |||||||||
Costs and expenses: | |||||||||||||||||||||||||
Educational services | 116,094 | 9,287 | 1,321,716 | — | 1,447,097 | — | — | 1,447,097 | |||||||||||||||||
General and administrative | (101,570 | ) | (545 | ) | 791,258 | — | 689,143 | — | — | 689,143 | |||||||||||||||
Depreciation and amortization | 32,552 | 605 | 131,555 | — | 164,712 | — | — | 164,712 | |||||||||||||||||
Long-lived asset impairments | — | — | 300,104 | — | 300,104 | — | — | 300,104 | |||||||||||||||||
Total costs and expenses | 47,076 | 9,347 | 2,544,633 | — | 2,601,056 | — | — | 2,601,056 | |||||||||||||||||
Loss before interest, loss on debt refinancing and income taxes | (47,076 | ) | (955 | ) | (54,426 | ) | — | (102,457 | ) | — | — | (102,457 | ) | ||||||||||||
Interest expense (income), net | 122,297 | — | 2,387 | — | 124,684 | (21 | ) | — | 124,663 | ||||||||||||||||
Loss on debt refinancing | 5,232 | — | — | — | 5,232 | — | — | 5,232 | |||||||||||||||||
Deficit in loss of subsidiaries | (61,469 | ) | — | — | 61,469 | — | (244,020 | ) | 244,020 | — | |||||||||||||||
Loss before income taxes | (236,074 | ) | (955 | ) | (56,813 | ) | 61,469 | (232,373 | ) | (243,999 | ) | 244,020 | (232,352 | ) | |||||||||||
Income tax expense | 7,946 | 43 | 3,658 | — | 11,647 | 391 | — | 12,038 | |||||||||||||||||
Net loss | (244,020 | ) | (998 | ) | (60,471 | ) | 61,469 | (244,020 | ) | (244,390 | ) | 244,020 | (244,390 | ) | |||||||||||
Net change in unrecognized loss on interest rate swaps, net of tax | $ | 4,923 | $ | — | $ | — | $ | — | $ | 4,923 | $ | 4,923 | $ | (4,923 | ) | $ | 4,923 | ||||||||
Foreign currency translation loss | (527 | ) | — | (527 | ) | 527 | (527 | ) | (527 | ) | 527 | (527 | ) | ||||||||||||
Other comprehensive loss | 4,396 | — | (527 | ) | 527 | 4,396 | 4,396 | (4,396 | ) | 4,396 | |||||||||||||||
Comprehensive loss | $ | (239,624 | ) | $ | (998 | ) | $ | (60,998 | ) | $ | 61,996 | $ | (239,624 | ) | $ | (239,994 | ) | $ | 239,624 | $ | (239,994 | ) | |||
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||
For the Fiscal Year Ended June 30, 2012 (In thousands) | |||||||||||||||||||||||||
EM LLC | Guarantor | Non-Guarantor | Eliminations | EM LLC | EDMC | Eliminations | EDMC | ||||||||||||||||||
Subsidiaries | Subsidiaries | Consolidated | Consolidated | ||||||||||||||||||||||
Net revenues | $ | — | $ | 9,000 | $ | 2,751,967 | $ | — | $ | 2,760,967 | $ | — | $ | — | $ | 2,760,967 | |||||||||
Costs and expenses: | |||||||||||||||||||||||||
Educational services | 93,322 | 10,554 | 1,398,480 | — | 1,502,356 | — | — | 1,502,356 | |||||||||||||||||
General and administrative | (82,634 | ) | (352 | ) | 845,573 | — | 762,587 | 276 | — | 762,863 | |||||||||||||||
Depreciation and amortization | 26,637 | 500 | 131,526 | — | 158,663 | — | — | 158,663 | |||||||||||||||||
Long-lived asset impairments | — | — | 1,662,288 | 1,662,288 | 1,662,288 | ||||||||||||||||||||
Total costs and expenses | 37,325 | 10,702 | 4,037,867 | — | 4,085,894 | 276 | — | 4,086,170 | |||||||||||||||||
Loss before interest, loss on debt refinancing and income taxes | (37,325 | ) | (1,702 | ) | (1,285,900 | ) | — | (1,324,927 | ) | (276 | ) | — | (1,325,203 | ) | |||||||||||
Interest expense (income), net | 107,772 | — | 2,565 | — | 110,337 | (7 | ) | — | 110,330 | ||||||||||||||||
Loss on debt refinancing | 9,474 | — | — | — | 9,474 | — | — | 9,474 | |||||||||||||||||
Deficit in loss of subsidiaries | (1,280,207 | ) | — | — | 1,280,207 | — | (1,433,398 | ) | 1,433,398 | — | |||||||||||||||
Loss before income taxes | (1,434,778 | ) | (1,702 | ) | (1,288,465 | ) | 1,280,207 | (1,444,738 | ) | (1,433,667 | ) | 1,433,398 | (1,445,007 | ) | |||||||||||
Income tax benefit | (1,380 | ) | (15 | ) | (9,945 | ) | — | (11,340 | ) | (97 | ) | — | (11,437 | ) | |||||||||||
Net loss | $ | (1,433,398 | ) | $ | (1,687 | ) | $ | (1,278,520 | ) | $ | 1,280,207 | $ | (1,433,398 | ) | $ | (1,433,570 | ) | $ | 1,433,398 | $ | (1,433,570 | ) | |||
Net change in unrecognized loss on interest rate swaps, net of tax | $ | (5,189 | ) | $ | — | $ | — | $ | — | $ | (5,189 | ) | $ | (5,189 | ) | $ | 5,189 | $ | (5,189 | ) | |||||
Foreign currency translation gain | (658 | ) | — | (658 | ) | 658 | (658 | ) | (658 | ) | 658 | (658 | ) | ||||||||||||
Other comprehensive loss | (5,847 | ) | — | (658 | ) | 658 | (5,847 | ) | (5,847 | ) | 5,847 | (5,847 | ) | ||||||||||||
Comprehensive loss | $ | (1,439,245 | ) | $ | (1,687 | ) | $ | (1,279,178 | ) | $ | 1,280,865 | $ | (1,439,245 | ) | $ | (1,439,417 | ) | $ | 1,439,245 | $ | (1,439,417 | ) | |||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
For the Fiscal Year Ended June 30, 2014 (In thousands) | |||||||||||||||||||||||||
EM LLC | Guarantor | Non-Guarantor | EM LLC | EDMC | EDMC | ||||||||||||||||||||
Subsidiaries | Subsidiaries | Consolidated | Consolidated | ||||||||||||||||||||||
Net cash flows provided by (used in) operations | $ | (105,944 | ) | $ | (2,505 | ) | $ | 179,091 | $ | 70,642 | $ | 4 | $ | 70,646 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||
Expenditures for long-lived assets | (11,490 | ) | (997 | ) | (61,273 | ) | (73,760 | ) | — | (73,760 | ) | ||||||||||||||
Proceeds from sale of fixed assets | — | — | 9,565 | 9,565 | — | 9,565 | |||||||||||||||||||
Other investing activities | — | — | (2,457 | ) | (2,457 | ) | — | (2,457 | ) | ||||||||||||||||
Net cash flows used in investing activities | (11,490 | ) | (997 | ) | (54,165 | ) | (66,652 | ) | — | (66,652 | ) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||
Net repayments of debt and other | 133,065 | — | (226 | ) | 132,839 | — | 132,839 | ||||||||||||||||||
Share-based payment activities | — | — | — | — | 3,113 | 3,113 | |||||||||||||||||||
Intercompany transactions | (19,534 | ) | 3,446 | (31,258 | ) | (47,346 | ) | 47,346 | — | ||||||||||||||||
Net cash flows provided by (used in) financing activities | 113,531 | 3,446 | (31,484 | ) | 85,493 | 50,459 | 135,952 | ||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (74 | ) | (74 | ) | — | (74 | ) | ||||||||||||||||
Net change in cash and cash equivalents | (3,903 | ) | (56 | ) | 93,368 | 89,409 | 50,463 | 139,872 | |||||||||||||||||
Beginning cash and cash equivalents | (10,777 | ) | 139 | 141,110 | 130,472 | 223 | 130,695 | ||||||||||||||||||
Ending cash and cash equivalents | $ | (14,680 | ) | $ | 83 | $ | 234,478 | $ | 219,881 | $ | 50,686 | $ | 270,567 | ||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
For the Fiscal Year Ended June 30, 2013 (In thousands) | |||||||||||||||||||||||||
EM LLC | Guarantor | Non-Guarantor | EM LLC | EDMC | EDMC | ||||||||||||||||||||
Subsidiaries | Subsidiaries | Consolidated | Consolidated | ||||||||||||||||||||||
Net cash flows provided by (used in) operations | $ | (168,316 | ) | $ | (5,632 | ) | $ | 365,231 | $ | 191,283 | $ | 24 | $ | 191,307 | |||||||||||
Cash flows from investing activities | |||||||||||||||||||||||||
Expenditures for long-lived assets | (10,297 | ) | (947 | ) | (71,997 | ) | (83,241 | ) | — | (83,241 | ) | ||||||||||||||
Proceeds from sale of fixed assets | — | — | 65,065 | 65,065 | — | 65,065 | |||||||||||||||||||
Other investing activities | (858 | ) | — | (6,778 | ) | (7,636 | ) | — | (7,636 | ) | |||||||||||||||
Net cash flows used in investing activities | (11,155 | ) | (947 | ) | (13,710 | ) | (25,812 | ) | — | (25,812 | ) | ||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||||
Net repayments of debt and other | (225,406 | ) | — | (234 | ) | (225,640 | ) | 3 | (225,637 | ) | |||||||||||||||
Intercompany transactions | 420,349 | 6,620 | (423,966 | ) | 3,003 | (3,003 | ) | — | |||||||||||||||||
Net cash flows provided by (used in) financing activities | 194,943 | 6,620 | (424,200 | ) | (222,637 | ) | (3,000 | ) | (225,637 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (171 | ) | (171 | ) | — | (171 | ) | ||||||||||||||||
Net change in cash and cash equivalents | 15,472 | 41 | (72,850 | ) | (57,337 | ) | (2,976 | ) | (60,313 | ) | |||||||||||||||
Beginning cash and cash equivalents | (26,249 | ) | 98 | 213,960 | 187,809 | 3,199 | 191,008 | ||||||||||||||||||
Ending cash and cash equivalents | $ | (10,777 | ) | $ | 139 | $ | 141,110 | $ | 130,472 | $ | 223 | $ | 130,695 | ||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
For the Fiscal Year Ended June 30, 2012 (In thousands) | |||||||||||||||||||||||||
EM LLC | Guarantor | Non-Guarantor | EM LLC | EDMC | EDMC | ||||||||||||||||||||
Subsidiaries | Subsidiaries | Consolidated | Consolidated | ||||||||||||||||||||||
Net cash flows provided by (used in) operations | $ | (35,071 | ) | $ | 4,015 | $ | 17,140 | $ | (13,916 | ) | $ | 3,066 | $ | (10,850 | ) | ||||||||||
Cash flows from investing activities | |||||||||||||||||||||||||
Expenditures for long-lived assets | (10,373 | ) | (1,127 | ) | (82,046 | ) | (93,546 | ) | — | (93,546 | ) | ||||||||||||||
Other investing activities | (375 | ) | — | (14,932 | ) | (15,307 | ) | — | (15,307 | ) | |||||||||||||||
Net cash flows used in investing activities | (10,748 | ) | (1,127 | ) | (96,978 | ) | (108,853 | ) | — | (108,853 | ) | ||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||||
Net repayments of debt and other | 9,610 | — | (263 | ) | 9,347 | — | 9,347 | ||||||||||||||||||
Common stock repurchased and stock option exercises | — | — | — | — | (101,455 | ) | (101,455 | ) | |||||||||||||||||
Intercompany transactions | 26,776 | (3,060 | ) | (75,171 | ) | (51,455 | ) | 51,455 | — | ||||||||||||||||
Net cash flows provided by (used in) financing activities | 36,386 | (3,060 | ) | (75,434 | ) | (42,108 | ) | (50,000 | ) | (92,108 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (405 | ) | (405 | ) | — | (405 | ) | ||||||||||||||||
Net change in cash and cash equivalents | (9,433 | ) | (172 | ) | (155,677 | ) | (165,282 | ) | (46,934 | ) | (212,216 | ) | |||||||||||||
Beginning cash and cash equivalents | (16,816 | ) | 270 | 369,637 | 353,091 | 50,133 | 403,224 | ||||||||||||||||||
Ending cash and cash equivalents | $ | (26,249 | ) | $ | 98 | $ | 213,960 | $ | 187,809 | $ | 3,199 | $ | 191,008 | ||||||||||||
Segment_Reporting
Segment Reporting | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment Reporting | ' | |||||||||||
17. SEGMENT REPORTING | ||||||||||||
The Company's principal business is providing post-secondary education. The Company manages its operations through four reportable segments, which are The Art Institutes, Argosy University, Brown Mackie Colleges and South University. A summary of each reportable segment is below. | ||||||||||||
• | The Art Institutes. The Art Institutes focus on applied arts in creative professions such as graphic design, media arts and animation, culinary arts, photography, digital filmmaking and video production, interior design, audio production, fashion design, game art and design, baking and pastry, and fashion marketing. The Art Institutes offer Associate’s, Bachelor’s and Master’s degree programs, as well as selective non-degree diploma programs. Students pursue their degrees through local campuses, fully-online programs through The Art Institute of Pittsburgh, Online Division and blended formats, which combine campus-based and online education. As of June 30, 2014, there were 51 Art Institutes campuses in 25 U.S. states and in Canada. As of October 2013, students enrolled at The Art Institutes represented approximately 53% of the Company's total enrollments. | |||||||||||
• | Argosy University. Argosy University offers academic programs in psychology and behavioral sciences, business, legal, education and health sciences disciplines. Argosy University offers Doctoral, Master’s and undergraduate degrees through local campuses, fully-online programs and blended formats. Argosy University’s academic programs largely focus on graduate students seeking advanced credentials as a prerequisite to initial licensing, career advancement and/or structured pay increases. As of June 30, 2014, there were 20 Argosy University schools in 13 U.S. states. As of October 2013, students enrolled at Argosy University represented approximately 19% of the Company's total enrollments. This segment includes Western State College of Law, which offers Juris Doctor degrees, and the Ventura Group, which provides courses and materials for post-graduate licensure examinations in the behavioral sciences fields and continuing education courses for K-12 educators. | |||||||||||
• | Brown Mackie Colleges. Brown Mackie Colleges offer flexible Associate’s and non-degree diploma programs that enable students to develop skills for entry-level positions in high demand vocational specialties and Bachelor’s degree programs that assist students to advance within the workplace. Brown Mackie Colleges offer programs in fields such as medical assisting, business, criminal justice, occupational therapy assistant, healthcare administration, and veterinary technology. As of June 30, 2014, there were 28 Brown Mackie College campuses in 15 U.S. states. As of October 2013, students enrolled at Brown Mackie Colleges represented approximately 13% of the Company's total enrollments. | |||||||||||
• | South University. South University offers academic programs in health profession and business disciplines, including business administration, health sciences, nursing, criminal justice, psychology, information technology, and healthcare management. South University offers Doctoral, Master’s, Bachelor’s and Associate’s degrees through local campuses, fully-online programs and blended formats. As of June 30, 2014, there were 11 South University campuses in nine U.S. states. As of October 2013, students enrolled at South University represented approximately 15% of the Company's total enrollments. | |||||||||||
During fiscal 2013, the Company created "The Center", which provides support services to its four education systems through the centralization and automation of certain non-student facing activities, including financial aid packaging, the qualification and transfer of prospective students to school admissions teams, student billing services, certain registrar services, support call center services for students and employees, and remote student advising services. Effective July 1, 2013, The Center allocates costs to each reportable segment based primarily on the level of transaction volume. In the prior fiscal year, similar costs were allocated to each reportable segment based primarily on net revenues. To ensure comparability among periods, EBITDA excluding certain expenses for each segment has been recast to report results for the fiscal years ended June 30, 2013 and 2012 as if The Center existed in those periods and allocated its costs in a manner consistent with the fiscal 2014 methodology. The creation of The Center and changes in the allocation methodology had no impact on previously reported EBITDA excluding certain expenses for total EDMC. | ||||||||||||
EBITDA excluding certain expenses, the measure used by the chief operating decision maker to evaluate segment performance and allocate resources, is defined as net income (loss) before interest expense, income tax expense (benefit), depreciation and amortization and certain other expenses presented below. EBITDA excluding certain expenses is not a recognized term under GAAP and does not purport to be an alternative to net income as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Additionally, EBITDA excluding certain expenses is not intended to be a measure of free cash flow available for management’s discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements. Management believes EBITDA excluding certain expenses is helpful in highlighting trends because EBITDA excluding certain expenses excludes the results of decisions that are outside the control of operating management and can differ significantly from company to company depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate and capital investments. Management compensates for the limitations of using non-GAAP financial measures by using them to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. Because not all companies use identical calculations, the Company's presentation of EBITDA excluding certain expenses may not be comparable to similarly titled measures of other companies. Adjustments to reconcile segment results to consolidated results are included under the caption “Corporate and other,” which primarily includes unallocated corporate activity. As well as other summary financial information by reportable segment, a reconciliation of EBITDA excluding certain expenses by reportable segment to consolidated income (loss) before income taxes is presented below (in thousands): | ||||||||||||
For the Fiscal Year Ended June 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net revenues: | ||||||||||||
The Art Institutes | $ | 1,386,729 | $ | 1,543,385 | $ | 1,738,542 | ||||||
Argosy University | 321,118 | 356,544 | 397,458 | |||||||||
Brown Mackie Colleges | 265,606 | 298,175 | 314,801 | |||||||||
South University | 299,283 | 300,495 | 310,166 | |||||||||
Total EDMC | $ | 2,272,736 | $ | 2,498,599 | $ | 2,760,967 | ||||||
EBITDA excluding certain expenses: | ||||||||||||
The Art Institutes | $ | 268,530 | $ | 352,036 | $ | 480,518 | ||||||
Argosy University | 29,880 | 39,068 | 57,346 | |||||||||
Brown Mackie Colleges | 22,007 | 32,154 | 55,755 | |||||||||
South University | 41,260 | 46,613 | 10,560 | |||||||||
Corporate and other | (85,538 | ) | (89,654 | ) | (94,298 | ) | ||||||
Total EDMC | 276,139 | 380,217 | 509,881 | |||||||||
Reconciliation to loss before income taxes: | ||||||||||||
Long-lived asset impairments | 568,216 | 300,104 | 1,662,288 | |||||||||
Restructuring and other | 26,952 | 13,920 | 14,133 | |||||||||
Lease abandonment charge | 6,367 | — | — | |||||||||
Settlement-related costs | 7,859 | — | — | |||||||||
Loss on sale-leaseback transactions | 3,491 | 3,938 | — | |||||||||
Loss on debt refinancing | — | 5,232 | 9,474 | |||||||||
Depreciation and amortization | 152,501 | 164,712 | 158,663 | |||||||||
Net interest expense | 128,033 | 124,663 | 110,330 | |||||||||
Loss before income taxes | $ | (617,280 | ) | $ | (232,352 | ) | $ | (1,445,007 | ) | |||
Expenditures for long-lived assets: | ||||||||||||
The Art Institutes | $ | 30,829 | $ | 39,778 | $ | 42,970 | ||||||
Argosy University | 5,712 | 6,719 | 6,573 | |||||||||
Brown Mackie Colleges | 2,847 | 9,049 | 11,906 | |||||||||
South University | 4,960 | 7,648 | 9,056 | |||||||||
Corporate and other | 29,412 | 20,047 | 23,041 | |||||||||
Total EDMC | $ | 73,760 | $ | 83,241 | $ | 93,546 | ||||||
As of June 30, | ||||||||||||
Assets: * | 2014 | 2013 | ||||||||||
The Art Institutes | $ | 953,003 | $ | 1,521,597 | ||||||||
Argosy University | 297,320 | 274,151 | ||||||||||
Brown Mackie Colleges | 210,154 | 231,225 | ||||||||||
South University | 229,336 | 233,993 | ||||||||||
Corporate and other | 187,223 | 162,390 | ||||||||||
Total EDMC | $ | 1,877,036 | $ | 2,423,356 | ||||||||
* Excludes inter-company activity. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
SUBSEQUENT EVENTS | |
Debt Restructuring | |
Refer to Note 2, "Summary of Significant Accounting Policies," under "Basis of Presentation" for a description of the debt restructuring that occurred in September 2014. The Company will account for this transaction as a troubled debt restructuring and record cancellation of debt income in fiscal 2015. Refer to Note 9, "Derivative Instruments," for details regarding the termination of the Company's interest rate swaps in connection with the debt restructuring. | |
Sale-Leaseback Transaction | |
In August 2014, the Company completed a sale-leaseback of one of its buildings with an unrelated third party for net proceeds totaling $1.2 million. At the time of closing, the Company entered into an agreement to lease the facility for one year. The Company recorded a net loss from the sale of the building of approximately $7 million in the quarter ended September 30, 2014. |
Schedule_IIValuation_and_Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||
Schedule II-Valuation and Qualifying Accounts | ' | |||||||||||||||
SCHEDULE II | ||||||||||||||||
EDUCATION MANAGEMENT CORPORATION AND SUBSIDIARIES | ||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance at | Additions | Deductions/ | Balance at | |||||||||||||
Beginning | Charged to | Other | End of | |||||||||||||
of Period | Expenses | Period | ||||||||||||||
Year ended June 30, 2012 | ||||||||||||||||
Uncollectible accounts receivable | $ | 194,264 | $ | 163,926 | $ | 113,001 | $ | 245,189 | ||||||||
Estimated future loan losses | 5,093 | — | — | 5,093 | ||||||||||||
Deferred tax asset valuation allowance | 21,667 | 3,600 | — | 25,267 | ||||||||||||
Year ended June 30, 2013 | ||||||||||||||||
Uncollectible accounts receivable | $ | 245,189 | $ | 171,306 | $ | 213,884 | $ | 202,611 | ||||||||
Estimated future loan losses | 5,093 | 544 | — | 5,637 | ||||||||||||
Deferred tax asset valuation allowance | 25,267 | (442 | ) | — | 24,825 | |||||||||||
Year ended June 30, 2014 | ||||||||||||||||
Uncollectible accounts receivable | $ | 202,611 | $ | 129,261 | $ | 156,354 | $ | 175,518 | ||||||||
Estimated future loan losses | 5,637 | 12,685 | — | 18,322 | ||||||||||||
Deferred tax asset valuation allowance | 24,825 | 127,438 | — | 152,263 | ||||||||||||
Supplemental_Quarterly_Informa
Supplemental Quarterly Information | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||
Supplemental Quarterly Information | ' | |||||||||||||||
SUPPLEMENTAL QUARTERLY INFORMATION (Unaudited) | ||||||||||||||||
The Company’s quarterly net revenues and income fluctuate primarily as a result of the pattern of student enrollments. The seasonality of the Company’s business has decreased over the last several years due to an increased percentage of students enrolling in online programs, which generally experience less seasonal fluctuations than campus-based programs. The Company’s first fiscal quarter is typically its lowest revenue recognition quarter due to student vacations. | ||||||||||||||||
The following table sets forth the Company's quarterly results for fiscal years ended June 30, 2014, 2013 and 2012 (in thousands except per share data): | ||||||||||||||||
Quarter Ended | ||||||||||||||||
30-Sep | 31-Dec | 31-Mar | June 30 (1) | |||||||||||||
Fiscal 2014: (1) | ||||||||||||||||
Revenue | $ | 580,380 | $ | 593,673 | $ | 595,202 | $ | 503,481 | ||||||||
Loss before income taxes | $ | (19,948 | ) | $ | (2,383 | ) | $ | (499,926 | ) | $ | (95,023 | ) | ||||
Net (loss) income | $ | (9,514 | ) | $ | 1,089 | $ | (467,646 | ) | $ | (187,846 | ) | |||||
Diluted EPS | $ | (0.08 | ) | $ | 0.01 | $ | (3.71 | ) | $ | (0.69 | ) | |||||
Fiscal 2013: ((2) | ||||||||||||||||
Revenue | $ | 609,565 | $ | 654,895 | $ | 638,903 | $ | 595,236 | ||||||||
(Loss) income before income taxes | $ | (21,818 | ) | $ | 53,064 | $ | (254,111 | ) | $ | (9,487 | ) | |||||
Net (loss) income | $ | (13,091 | ) | $ | 31,144 | $ | (260,408 | ) | $ | (2,035 | ) | |||||
Diluted EPS | $ | (0.11 | ) | $ | 0.25 | $ | (2.09 | ) | $ | (0.02 | ) | |||||
Fiscal 2012: (2) | ||||||||||||||||
Revenue | $ | 682,095 | $ | 737,188 | $ | 702,499 | $ | 639,185 | ||||||||
Income (loss) before income taxes | $ | 44,115 | $ | 103,291 | $ | (417,844 | ) | $ | (1,174,569 | ) | ||||||
Net (loss) income | $ | 26,954 | $ | 63,127 | $ | (394,926 | ) | $ | (1,128,725 | ) | ||||||
Diluted EPS | $ | 0.21 | $ | 0.49 | $ | (2.69 | ) | $ | (9.51 | ) | ||||||
(1) Refer to Note 2, "Summary of Significant Accounting Policies," for details with respect to a correction in the Company's policy regarding the recognition of incremental revenue recorded when students withdraw. This correction had the effect of reducing net revenues by $36.7 million and bad debt expense by $33.2 million, which resulted in an increase to the loss before taxes of $3.5 million in the fiscal quarter ended June 30, 2014. Previously reported amounts have not been corrected as the impact was deemed to be immaterial. | ||||||||||||||||
(2) The goodwill impairment charges in fiscal 2012 and fiscal 2013 have been revised as further described in Item 8, "Financial Statements and Supplementary Data," Note 5, "Goodwill and Intangible Assets" under “Correction of Immaterial Errors," which has resulted in (loss) income before income taxes, net (loss) income and diluted EPS being revised as compared to the originally reported amounts. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Summary of Significant Accounting Policies [Abstract] | ' | |||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | |||||||
Recent Accounting Pronouncements | ||||||||
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, “Revenue from Contracts with Customers." The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is not permitted. The Company is currently evaluating the impact that the standard will have on its financial condition, results of operations, and disclosures. | ||||||||
In April 2014, the FASB issued amendments to guidance for reporting discontinued operations and disposals of components of an entity. The amended guidance requires that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations and add new disclosures for individually significant dispositions that do not qualify as discontinued operations. The amendments are effective prospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2014 (early adoption is permitted only for disposals that have not been previously reported). The implementation of the amended guidance is not expected to have a material impact on the Company's consolidated financial statements. | ||||||||
In July 2013, the FASB clarified the presentation of an unrecognized tax benefit when a net operating loss or tax credit carryforward exists. The clarification requires that an unrecognized tax benefit be presented as a reduction of a deferred tax asset for a net operating loss or tax credit carryforward when settlement of the unrecognized tax benefit using those carryforwards is available pursuant to existing tax law. The Company's adoption of the FASB clarification had no impact on its consolidated financial statements. | ||||||||
Basis of Presentation | ' | |||||||
Basis of Presentation (Including Debt Restructuring) | ||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated. Unless otherwise specified, any reference to a “year” is to a fiscal year ended June 30. | ||||||||
The Company has experienced deteriorating results from operations over the last several fiscal years, which coupled with the use of cash, created uncertainty as to the Company's ability to continue as a going concern. The Company has entered into the following agreements and taken the following actions to mitigate these risks: | ||||||||
• | an amendment agreement dated September 5, 2014 (the "Amendment Agreement"), with the holders of in excess of 98% of the term loan facilities and 100% of the revolving credit facility (collectively, the "Consenting Lenders") pursuant to which, among other things, (i) the maturity on the revolving credit facility was extended from June 1, 2015 to July 2, 2015, (ii) the Consenting Lenders under the revolving credit facility agreed to accept payment of interest in kind rather than cash through June 30, 2015, (iii) the Consenting Lenders holding term loans agreed that no amortization payments will be payable through June 30, 2015 and to accept the payment of interest in kind rather than cash through June 30, 2015, (iv) EDMC became a guarantor and granted a lien on substantially all of its assets to secure the obligations under the agreement, (v) compliance with the financial covenants was waived through June 30, 2015, and (vi) the security agreement governing the credit facility was amended such that the collateral proceeds “waterfall” set forth therein now provides that obligations owing to any lenders that are not Consenting Lenders shall be paid only after satisfaction in full of obligations owing to Consenting Lenders and swap counterparties who have executed the RSA (as defined below); | |||||||
• | a supplemental indenture dated September 5, 2014 (the "Supplemental Indenture"), pursuant to which the Indenture governing the cash pay/PIK notes due 2018 (the "Cash Pay/PIK Notes") was amended (i) to require the Company to offer all holders of the Cash Pay/PIK Notes the opportunity to receive the same consideration in the Debt Restructuring (as defined below) as holders of the Interim Notes (as defined below), (ii) to provide for (a) the release of EDMC’s guarantee and (b) the termination of certain covenants and certain events of default, in each case upon the completion of the exchange of Cash Pay/PIK Notes and Interim Notes contemplated by the Debt Restructuring and (iii) to provide that if Education Management LLC is no longer subject to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, it will not be required to file reports with the Securities and Exchange Commission but instead will be required to distribute annual, quarterly and current reports to the trustee under the Indenture and hold a conference call within 20 business days of furnishing required annual and quarterly reports; | |||||||
• | an exchange agreement dated September 5, 2014 (the "Exchange Agreement"), pursuant to which the holders of 86% of the outstanding Cash Pay/PIK Notes exchanged their Cash Pay/PIK Notes for a like principal amount of new Senior PIK Toggle Notes due 2018 (the "Interim Notes" and together with the Cash Pay/PIK Notes, the "Notes"), whose terms are substantially similar to those of the Cash Pay/PIK Notes, except that their interest is payable entirely in kind for the two interest periods ending September 30, 2014 and March 30, 2015; | |||||||
• | a new indenture dated September 5, 2014 (the "New Indenture"), pursuant to which the Interim Notes were issued; and | |||||||
• | a Restructuring Support Agreement dated September 4, 2014 (the "RSA"), pursuant to which the Consenting Lenders, holders of in excess of 65% of the outstanding Notes (the "Consenting Noteholders"), certain of the Company's swap counter-parties and holders of in excess of 72% of the Company's outstanding common stock (the "Consenting Shareholders") agreed to support a comprehensive debt restructuring ("Debt Restructuring") as described below. | |||||||
Pursuant to the Debt Restructuring: | ||||||||
• | $150 million of revolving loans under the existing revolving credit facility will be repaid in cash at par, with such amount available for re-borrowing under a new revolving credit facility; | |||||||
• | the remaining portion of the Company's $1.5 billion of outstanding indebtedness, including the Interim Notes, will be exchanged for two first lien senior secured term loans due July 2, 2020 in the aggregate principal amount of $400 million, mandatorily convertible preferred stock, optionally convertible preferred stock and warrants for common stock; and | |||||||
• | the Company’s current shareholders will retain their outstanding common stock, which in aggregate will equal 4% of the Company’s outstanding common stock after giving effect to the conversion of all of the preferred stock described above and subject to further dilution by a management incentive plan (the "MIP") and warrants (including those described in the next sentence) to be awarded pursuant to the Debt Restructuring. In addition, current shareholders will receive warrants for 5% of the Company’s common stock (subject to dilution by the MIP). | |||||||
In addition to these actions, management has developed a plan to reduce cash outflows in fiscal 2015 in order to maintain sufficient liquidity to allow the Company to meet its obligations as they become due. While no assurance can be given that management’s plan will be fully implemented in fiscal 2015, based on the agreements executed and management’s projected cash flows for fiscal 2015, management believes that cash flow from operations and available cash on hand, supplemented from time to time with borrowings under the revolving credit facility, will provide adequate funds for ongoing operations, required debt service and other obligations as they become due during the next twelve months. | ||||||||
The accompanying consolidated financial statements have been prepared on the assumption that the Company will continue to operate as a going concern and do not include any adjustments that might result from the Company not being able to continue as a going concern. Accordingly, assets and liabilities are recorded on the basis that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. | ||||||||
Use of Estimates | ' | |||||||
Use of Estimates | ||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases these estimates on assumptions that it believes to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. | ||||||||
Cash and Cash Equivalents and Restricted Cash | ' | |||||||
Cash and Cash Equivalents and Restricted Cash | ||||||||
The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. These investments are stated at cost, which approximates fair value. | ||||||||
The Company’s institutions hold funds from the United States government under various student aid grant and loan programs in separate bank accounts, and serve as trustee for the U.S. Department of Education or respective lender or student borrower, as applicable. The Company does not record funds held in these bank accounts as cash or restricted cash until the authorization and disbursement process has occurred. Once the authorization and disbursement process to the student has been completed, the funds are transferred to unrestricted accounts and become available for use in current operations, except as noted in footnote two to the table below. This transfer generally occurs for the period of the academic term for which such funds were authorized, with no term being more than 16 weeks in length. | ||||||||
Restricted cash consisted of the following at June 30 (in thousands): | ||||||||
2014 | 2013 | |||||||
Cash secured letters of credit (1) | $ | 210,000 | $ | 210,000 | ||||
Title IV funds received in excess of charges applied (2) | 50,406 | 56,595 | ||||||
Surety bonds (3) | 7,275 | — | ||||||
Escrowed in connection with student lending program (4) | 2,500 | 2,500 | ||||||
Endowments (5) | 1,500 | 1,500 | ||||||
Escrowed in connection with operating lease | — | 745 | ||||||
Restricted cash | $ | 271,681 | $ | 271,340 | ||||
(1) Includes liens on certain of the Company's cash deposits, which equal 105% of the aggregate $200.0 million of outstanding letters of credit under the Company's cash secured letter of credit facilities further explained in Note 8, "Short-Term and Long-Term Debt." Such cash is not available for any purpose other than to reimburse drawings under the letters of credit or to pay related fees and obligations. | ||||||||
(2) U.S. Department of Education regulations require Title IV program funds received by the Company’s educational institutions in excess of the charges applied to the relevant students at that time to be, with these students’ permission, maintained and classified as restricted. In addition, some states have similar requirements. Such funds are recorded as restricted cash due to legal restrictions on the use of the funds and as advance payments on the Company’s consolidated balance sheets. The balances also include $35.1 million and $39.3 million at June 30, 2014 and 2013, respectively, related to Title IV amounts that the Company has already received for courses that fully-online students attending Argosy University and South University have not begun. Since these students take classes under a non-term academic structure, the cash is classified as restricted because the Company does not intend to use the funds for operating purposes until a student successfully demonstrates academic progress with respect to each course the student attends in the student’s program of study. | ||||||||
(3) Relates to amounts required to be maintained on deposit in connection with surety bonds primarily provided to state regulatory agencies as described in Note 14, "Commitments and Contingencies." | ||||||||
(4) Relates to an account required to be maintained in connection with the Company's student lending program further described in Note 6, "Student Receivables." | ||||||||
(5) Relates to endowments required by state law at certain of the Company's schools. | ||||||||
Revenue Recognition | ' | |||||||
Revenue Recognition | ||||||||
The Company’s net revenues consist primarily of tuition and fees, student housing fees, bookstore sales, restaurant sales in connection with culinary programs, workshop fees and sales of related study materials. Net revenues are reduced for student refunds and scholarships. The Company derived approximately 93% of its net revenues from tuition and fees in each of the fiscal years ended June 30, 2014, 2013 and 2012. | ||||||||
The Company bills tuition and housing revenues at the beginning of an academic term and recognizes the revenue on a pro rata basis over the term of instruction or occupancy. Some of the Company’s academic terms have starting and ending dates that differ from the Company’s fiscal quarters. Therefore, at the end of each fiscal quarter, the Company has tuition from academic terms with respect to which the associated revenue has not yet been earned. Such amounts are recorded as unearned tuition, which is a current liability in the accompanying consolidated balance sheets. Advance payments are generally refundable and relate to payments received for future academic periods and are also recorded as a current liability in the accompanying consolidated balance sheets. | ||||||||
If a student withdraws from one of the Company’s schools, the extent of his or her obligation for tuition and fees depends on when that student withdraws during an academic term. The Company reduces the student's obligation depending upon its refund policies, which vary by state and institution and take into account the refund requirements of the U.S. Department of Education, most state education authorities that regulate the Company’s schools, the accrediting commissions that accredit the Company’s schools and the Company’s institutional policies (collectively, “Refund Policies”). In the vast majority of situations, if a student withdrew from school after attending classes for at least 60.0% of a term of instruction, he or she would not be eligible for any reduction in tuition under the Company's Refund Policies. Accordingly, the student would have to pay the Company the balance of tuition and fees that has not been received already either in the form of financial aid or payments from the student. However, if a student withdraws from school prior to attending classes for at least 60.0% of a term of instruction, the Company may reduce the amount of a student's obligation for tuition and fees based on a tiered approach under which, in general, the greater the portion of the academic term that has elapsed at the time the student withdraws, the greater the student’s obligation is to the school for the tuition and fees related to that academic term. | ||||||||
Student Receivables | ' | |||||||
Student Receivables | ||||||||
The Company records student receivables at cost less an estimated allowance for doubtful accounts, which is determined on a quarterly basis based on the likelihood of collection considering students' enrollment status and historical payment experience. Historical collection experience is analyzed by disaggregating the student receivable balances based on predominant risk characteristics, such as whether the student is currently in-school, recently withdrew from school, or has not made a payment for a longer period of time. This level of disaggregation of student receivables results in individual pools of receivables which management believes appropriately differentiates credit risk in the portfolio and provides a reasonable basis to compute the estimate of loss. When certain criteria are met, which is generally when receivables age past the due date by more than four months, and internal collection measures have been taken without success, the accounts of former students are placed with a collection agency. Student accounts that have been placed with a collection agency are almost fully reserved and are written off after collection attempts have been unsuccessful. | ||||||||
During fiscal 2013, the Company reduced the number of days since last payment after which accounts placed with a collection agency are written off. This change did not impact the statement of operations or net student receivables as the applicable accounts were already fully reserved. Refer to Note 6, "Student Receivables," for more information. | ||||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories consist mainly of textbooks and supplies held for sale to students enrolled in the Company’s educational programs and are presented in other current assets in the accompanying consolidated balance sheets. Cost is determined using the average cost method and inventories are valued at the lower of cost or market. | ||||||||
Leases | ' | |||||||
Leases | ||||||||
The Company leases certain classroom, dormitory and office space, as well as equipment and automobiles under operating leases. Before entering into a new lease, an analysis is performed to determine whether a lease should be classified as capital or operating. | ||||||||
Certain of the Company’s lease agreements include tenant improvement allowances. Once the lease agreement is signed, these tenant improvement allowances are recorded as other current assets with the offset to deferred rent liabilities on the consolidated balance sheets. Concurrent with the expenditures for lease improvements, the Company records increases to leasehold improvement assets in property and equipment. Other current assets are reduced once the landlord reimburses the Company. The deferred rent liabilities related to tenant improvements are amortized over the term of the lease as a reduction to rent expense upon possession of the lease space. | ||||||||
Many of the Company’s lease agreements contain escalation clauses under which, if fixed and determinable, rent expense is recognized on a straight-line basis over the lives of the leases, which generally range from five to 15 years with one or more renewal options. For leases with renewal options, the Company records rent expense over the original lease term, exclusive of the renewal period. When a renewal occurs, the Company records rent expense over the new lease term. | ||||||||
Property and Equipment and Finite-Lived Intangible Assets | ' | |||||||
Property and Equipment and Finite-Lived Intangible Assets | ||||||||
Property and equipment is recorded at its cost less accumulated depreciation. Depreciation policies for such assets are as follows: | ||||||||
• | Buildings are depreciated over an estimated useful life of 30 years using the straight-line method; | |||||||
• | Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term, exclusive of any renewal periods, or their estimated useful lives; and | |||||||
• | The remainder of the Company’s property and equipment is depreciated over estimated useful lives ranging from three to 10 years using the straight-line method, depending on the asset. | |||||||
Finite-lived intangible assets primarily relate to curriculum developed for fully-online courses which are amortized over a two-year useful life. | ||||||||
The Company records impairment losses on property and equipment and finite-lived intangible assets when events and circumstances indicate that the undiscounted cash flows estimated to be generated by those assets or asset groups are less than their carrying amounts. Events and circumstances that could trigger an impairment review include changes in the regulatory environment, deteriorating economic conditions or poor operating performance at individual campus locations. Any resulting impairment loss would be measured as the difference between the fair value of the assets or asset groups and their carrying value with the loss recorded as an operating expense in the consolidated statement of operations in the period incurred. Refer to Note 4, "Property and Equipment," for more information. | ||||||||
Goodwill and Indefinite-Lived Intangible Assets, Intangible Assets | ' | |||||||
Goodwill and Indefinite-Lived Intangible Assets | ||||||||
In connection with the Transaction, property, equipment, intangible assets other than goodwill and other assets and liabilities were recorded at fair value. The excess of the amount paid to acquire the Company at the time of the Transaction over the fair values of these net assets represented the intrinsic value of the Company beyond its tangible and identifiable intangible net assets and was assigned to goodwill. | ||||||||
The Company formally evaluates the carrying amount of goodwill for each of its reporting units on April 1 of each fiscal year. In addition, the Company performs an evaluation on an interim basis if it determines that recent events or prevailing conditions indicate a potential impairment of goodwill. A significant amount of judgment is involved in determining whether an indicator of impairment has occurred between annual impairment tests. These indicators include, but are not limited to, overall financial performance such as adverse changes in recent forecasts of operating results, industry and market considerations, a sustained decrease in the price of a share of EDMC Common Stock, updated business plans and regulatory and legal developments. | ||||||||
Goodwill is impaired when the carrying amount of a reporting unit’s goodwill exceeds its implied fair value, as determined under a two-step approach. In the first step, the Company determines the fair value of each reporting unit and compares that fair value to each reporting unit’s carrying value. The Company estimates the fair value of its reporting units using a combination of the discounted cash flow method (income approach) and the guideline public company method (market approach), which takes into account the invested capital and associated earnings multiples of publicly-traded peer companies. If the results of the first step indicate the carrying amount of a reporting unit is higher than its fair value, a second step must be performed, which requires the Company to determine the implied fair value of goodwill in the same manner as if it had acquired the reporting unit in an arm’s length transaction as of the testing date. This second step is performed by deducting the estimated fair value of all tangible and identifiable intangible net assets of the reporting unit from the estimated fair value of the reporting unit. If the recorded amount of goodwill exceeds this implied fair value, an impairment charge is recorded for the difference as an operating expense in the period incurred. | ||||||||
Indefinite-lived intangible assets, consisting of the licensing, accreditation and Title IV program participation assets for all reporting units and The Art Institute trade name, are also evaluated annually on April 1 for impairment and on an interim basis if events or changes in circumstances between annual tests indicate that the asset might be impaired. Trade names are valued by the relief from royalty method (income approach), which focuses on the level of royalty payments that the user of an intangible asset would have to pay a third party for the use of the asset if it were not owned by the user. The Company uses a combination of the cost and income approaches to establish the asset value of licenses, accreditation and Title IV program participation assets. On the impairment testing date, if the fair value of the intangible asset is less than its carrying value, an impairment loss is recognized for an amount equal to the difference. The intangible asset is then carried at its new fair value. | ||||||||
Income Taxes | ' | |||||||
Income Taxes | ||||||||
The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities result from (i) temporary differences in the recognition of income and expense for financial and income tax reporting requirements, and (ii) differences between the recorded value of assets acquired in business combinations accounted for as purchases for financial reporting purposes and their corresponding tax bases. Deferred income tax assets are 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. | ||||||||
The Company recognizes the tax benefit from an uncertain tax position only if it is at least more-likely-than-not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. The amount of the tax benefit that is recognized is measured as the largest amount of benefit that is more-likely-than-not to be realized upon effective settlement. The Company classifies interest and penalties accrued in connection with unrecognized tax benefits as income tax expense in its consolidated statement of operations. | ||||||||
Refer to Note 11, "Income Taxes," for more information. | ||||||||
Derivative Financial Instruments | ' | |||||||
Derivative Financial Instruments | ||||||||
Education Management LLC ("EM LLC"), an indirect wholly-owned subsidiary of the Company, utilizes interest rate swap agreements, which are contractual agreements to exchange payments based on underlying interest rates, to manage a portion of its floating rate term debt. The swaps are accounted for as an asset or a liability in the consolidated balance sheets at fair value. The Company uses “Level Two” inputs to value its interest rate swaps, which are defined in Note 10, "Fair Value of Financial Instruments." The application of these Level Two inputs is based on LIBOR forward curves and an assessment of non-performance risk based upon published market data. If interest rate swap agreements are deemed highly effective for accounting purposes and are designated as cash flow hedges, the changes in their fair values are recorded in other comprehensive income (loss), net of tax. If they are not deemed highly effective, the changes in their fair values are recorded in interest expense in the consolidated statements of operations. The Company does not use derivative financial instruments for trading or speculative purposes. Refer to Note 9, "Derivative Instruments," for more information. | ||||||||
Foreign Currency Translation | ' | |||||||
Foreign Currency Translation | ||||||||
The financial position and results of operations of the Company’s foreign subsidiary are initially measured at its functional currency, which is the Canadian dollar. Accordingly, the assets and liabilities of the foreign subsidiary are translated to U.S. dollars using the exchange rates in effect at the balance sheet date. Revenues and expenses are translated into U.S. dollars using average monthly exchange rates. Translation adjustments resulting from this process are recorded as a separate component of equity designated as accumulated other comprehensive income (loss) in the consolidated balance sheets. Translation gains and losses were not material in fiscal 2014, 2013 or 2012. | ||||||||
Share-based Compensation | ' | |||||||
Share-Based Compensation | ||||||||
The Black-Scholes-Merton option pricing model is used to determine the fair value of all of the Company’s stock-options at the grant date. The Company recognizes compensation costs on time-based options and restricted stock units on a straight-line basis over the requisite service period, which is generally the vesting term, net of expected forfeitures. See Note 12, “Share-Based Compensation,” for more information. | ||||||||
Contingencies | ' | |||||||
Contingencies | ||||||||
The Company accrues for contingent obligations when it is probable that a liability has been incurred and the amount is reasonably estimable. As facts concerning contingencies evolve and become known, management reassesses the likelihood of probable loss and makes appropriate adjustments to its financial statements. | ||||||||
Selling, General and Administrative Expenses, Policy [Policy Text Block] | ' | |||||||
Costs and Expenses | ||||||||
Educational services expense consists primarily of costs related to the development, delivery and administration of the Company’s education programs. Major cost components are faculty compensation, administrative salaries, facility occupancy costs, bad debt expense, costs of educational materials and information systems costs. These costs are expensed as services are provided to the Company or as incurred. | ||||||||
General and administrative expense consists of marketing and student admissions expenses and certain central staff costs such as executive management, finance and accounting, legal and consulting services, corporate development and other departments that do not provide direct services to the Company’s students. These costs are expensed as services are provided to the Company or as incurred. | ||||||||
Marketing costs are expensed in the fiscal year incurred and are classified as general and administrative expense in the accompanying consolidated statements of operations. The Company’s marketing expense was $255.9 million, $255.0 million and $296.9 million during the fiscal years ended June 30, 2014, 2013 and 2012, respectively. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies Restricted Cash (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Summary of Significant Accounting Policies [Abstract] | ' | |||||||
Schedule of Restricted Cash and Cash Equivalents | ' | |||||||
Restricted cash consisted of the following at June 30 (in thousands): | ||||||||
2014 | 2013 | |||||||
Cash secured letters of credit (1) | $ | 210,000 | $ | 210,000 | ||||
Title IV funds received in excess of charges applied (2) | 50,406 | 56,595 | ||||||
Surety bonds (3) | 7,275 | — | ||||||
Escrowed in connection with student lending program (4) | 2,500 | 2,500 | ||||||
Endowments (5) | 1,500 | 1,500 | ||||||
Escrowed in connection with operating lease | — | 745 | ||||||
Restricted cash | $ | 271,681 | $ | 271,340 | ||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | |||||||||||
Basic and diluted EPS were calculated as follows (in thousands, except per share amounts): | ||||||||||||
For the Fiscal Year Ended June 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net loss | $ | (663,917 | ) | $ | (244,390 | ) | $ | (1,433,570 | ) | |||
Weighted average number of shares outstanding: | ||||||||||||
Basic | 125,504 | 124,560 | 126,659 | |||||||||
Effect of stock-based awards | — | — | — | |||||||||
Diluted | 125,504 | 124,560 | 126,659 | |||||||||
Loss per share: | ||||||||||||
Basic | $ | (5.29 | ) | $ | (1.96 | ) | $ | (11.32 | ) | |||
Diluted | $ | (5.29 | ) | $ | (1.96 | ) | $ | (11.32 | ) |
Property_And_Equipment_Tables
Property And Equipment (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment | ' | |||||||
Property and equipment consisted of the following at June 30 (in thousands): | ||||||||
Asset Class | 2014 | 2013 | ||||||
Leasehold improvements | $ | 577,537 | $ | 570,286 | ||||
Technology | 329,361 | 324,403 | ||||||
Furniture and equipment | 162,872 | 163,595 | ||||||
Software | 120,242 | 98,537 | ||||||
Library books | 44,604 | 44,248 | ||||||
Construction in progress | 16,683 | 19,601 | ||||||
Buildings and improvements | 5,798 | 25,566 | ||||||
Land | 3,605 | 5,495 | ||||||
Total | 1,260,702 | 1,251,731 | ||||||
Less accumulated depreciation | (831,245 | ) | (726,106 | ) | ||||
Property and equipment, net | $ | 429,457 | $ | 525,625 | ||||
Goodwill_And_Intangible_Assets1
Goodwill And Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Schedule of indefinite-lived intangible assets [Abstract] | ' | ||||||||||||||||||||
Schedule of Goodwill | ' | ||||||||||||||||||||
Including the effects of the immaterial errors that were corrected during the following periods, which are described below, a roll forward of the Company's consolidated goodwill balance from June 30, 2011 to June 30, 2014 is as follows (in thousands): | |||||||||||||||||||||
The Art Institutes | Argosy University | Brown Mackie Colleges | South University | Total | |||||||||||||||||
Balance Sheet as of June 30, 2011: | |||||||||||||||||||||
Gross | $ | 1,984,688 | $ | 219,350 | $ | 254,561 | $ | 123,400 | $ | 2,581,999 | |||||||||||
Accumulated impairments | — | — | — | — | — | ||||||||||||||||
Goodwill | 1,984,688 | 219,350 | 254,561 | 123,400 | 2,581,999 | ||||||||||||||||
Statement of Operations for the Fiscal Year Ended June 30, 2012: | |||||||||||||||||||||
Impairment charge | (1,063,088 | ) | (139,361 | ) | (254,561 | ) | (76,962 | ) | (1,533,972 | ) | |||||||||||
Balance Sheet as of June 30, 2012: | |||||||||||||||||||||
Gross | 1,984,688 | 219,350 | 254,561 | 123,400 | 2,581,999 | ||||||||||||||||
Accumulated impairments | (1,063,088 | ) | (139,361 | ) | (254,561 | ) | (76,962 | ) | (1,533,972 | ) | |||||||||||
Goodwill | 921,600 | 79,989 | — | 46,438 | 1,048,027 | ||||||||||||||||
Statement of Operations for the Fiscal Year Ended June 30, 2013: | |||||||||||||||||||||
Impairment charge | (270,874 | ) | — | — | — | (270,874 | ) | ||||||||||||||
Balance Sheet as of June 30, 2013: | |||||||||||||||||||||
Gross | 1,984,688 | 219,350 | 254,561 | 123,400 | 2,581,999 | ||||||||||||||||
Accumulated impairments | (1,333,962 | ) | (139,361 | ) | (254,561 | ) | (76,962 | ) | (1,804,846 | ) | |||||||||||
Goodwill | 650,726 | 79,989 | — | 46,438 | 777,153 | ||||||||||||||||
Statement of Operations for the Fiscal Year Ended June 30, 2014: | |||||||||||||||||||||
Impairment charge | (433,747 | ) | — | — | — | (433,747 | ) | ||||||||||||||
Balance Sheet as of June 30, 2014: | |||||||||||||||||||||
Gross | 1,984,688 | 219,350 | 254,561 | 123,400 | 2,581,999 | ||||||||||||||||
Accumulated impairments | (1,767,709 | ) | (139,361 | ) | (254,561 | ) | (76,962 | ) | (2,238,593 | ) | |||||||||||
Goodwill | $ | 216,979 | $ | 79,989 | $ | — | $ | 46,438 | $ | 343,406 | |||||||||||
Schedule of Error Corrections and Prior Period Adjustments | ' | ||||||||||||||||||||
The following table summarizes the previously reported and corrected amounts of the impacted balances presented in the accompanying consolidated financial statements (in thousands except per share data). | |||||||||||||||||||||
As Previously Reported | Adjustments | As Adjusted | |||||||||||||||||||
Statement of Operations and Comprehensive Loss for the Fiscal Year Ended June 30, 2012 | |||||||||||||||||||||
Long-lived asset impairments | $ | 1,746,765 | $ | (84,477 | ) | $ | 1,662,288 | ||||||||||||||
Loss before interest, loss on debt refinancing and income taxes | (1,409,680 | ) | 84,477 | (1,325,203 | ) | ||||||||||||||||
Loss before taxes | (1,529,484 | ) | 84,477 | (1,445,007 | ) | ||||||||||||||||
Income tax benefit | (13,743 | ) | 2,306 | (11,437 | ) | ||||||||||||||||
Net loss | (1,515,741 | ) | 82,171 | (1,433,570 | ) | ||||||||||||||||
Basic & diluted loss per share | (11.97 | ) | 0.65 | (11.32 | ) | ||||||||||||||||
Comprehensive loss | (1,521,588 | ) | 82,171 | (1,439,417 | ) | ||||||||||||||||
Statement of Shareholders' Equity for the Fiscal Year Ended June 30, 2012 | |||||||||||||||||||||
Accumulated deficit at June 30, 2012 | (935,960 | ) | 82,171 | (853,789 | ) | ||||||||||||||||
Total shareholders' equity at June 30, 2012 | 496,564 | 82,171 | 578,735 | ||||||||||||||||||
Balance Sheet as of June 30, 2013 | |||||||||||||||||||||
Goodwill | 669,090 | 108,063 | 777,153 | ||||||||||||||||||
Total assets | 2,315,293 | 108,063 | 2,423,356 | ||||||||||||||||||
Deferred income taxes liability | 70,316 | 2,306 | 72,622 | ||||||||||||||||||
Accumulated deficit | (1,203,936 | ) | 105,757 | (1,098,179 | ) | ||||||||||||||||
Total shareholders' equity | 250,099 | 105,757 | 355,856 | ||||||||||||||||||
Total liabilities and shareholders' equity | 2,315,293 | 108,063 | 2,423,356 | ||||||||||||||||||
Statement of Operations and Comprehensive Loss for the Fiscal Year Ended June 30, 2013 | |||||||||||||||||||||
Long-lived asset impairments | 323,690 | (23,586 | ) | 300,104 | |||||||||||||||||
Loss before interest, loss on debt refinancing and income taxes | (126,043 | ) | 23,586 | (102,457 | ) | ||||||||||||||||
Loss before taxes | (255,938 | ) | 23,586 | (232,352 | ) | ||||||||||||||||
Net loss | (267,976 | ) | 23,586 | (244,390 | ) | ||||||||||||||||
Basic & diluted loss per share | (2.15 | ) | 0.19 | (1.96 | ) | ||||||||||||||||
Comprehensive loss | (263,580 | ) | 23,586 | (239,994 | ) | ||||||||||||||||
Statement of Shareholders' Equity for the Fiscal Year Ended June 30, 2013 | |||||||||||||||||||||
Accumulated deficit at June 30, 2013 | (1,203,936 | ) | 105,757 | (1,098,179 | ) | ||||||||||||||||
Total shareholders' equity at June 30, 2013 | 250,099 | 105,757 | 355,856 | ||||||||||||||||||
Schedule of Intangible Assets | ' | ||||||||||||||||||||
Intangible assets other than goodwill consisted of the following amounts (in thousands): | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Gross | Accumulated | Gross | Accumulated | ||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Tradename-Art Institute | $ | 73,200 | $ | — | $ | 190,000 | $ | — | |||||||||||||
Licensing, accreditation and Title IV program participation | 87,862 | — | 95,862 | — | |||||||||||||||||
Curriculum and programs | 21,420 | (14,379 | ) | 43,575 | (32,596 | ) | |||||||||||||||
Student contracts, applications and relationships | 10,510 | (9,492 | ) | 39,511 | (37,381 | ) | |||||||||||||||
Favorable leases and other | 6,057 | (5,355 | ) | 19,424 | (17,960 | ) | |||||||||||||||
Total intangible assets | $ | 199,049 | $ | (29,226 | ) | $ | 388,372 | $ | (87,937 | ) | |||||||||||
Schedule of Indefinite-Lived Intangible Assets | ' | ||||||||||||||||||||
A roll forward of the Company's consolidated indefinite-lived intangible assets balances from June 30, 2011 to June 30, 2014 is as follows (in thousands): | |||||||||||||||||||||
Tradename-Art Institute | Licensing, accreditation and Title IV program participation | ||||||||||||||||||||
Balance Sheet at June 30, 2011: | |||||||||||||||||||||
Gross | $ | 330,000 | $ | 112,179 | |||||||||||||||||
Accumulated impairments | — | — | |||||||||||||||||||
Net balance | 330,000 | 112,179 | |||||||||||||||||||
Statement of Operations for the Fiscal Year Ended June 30, 2012: | |||||||||||||||||||||
Impairment charge | (112,000 | ) | (16,317 | ) | |||||||||||||||||
Balance Sheet at June 30, 2012: | |||||||||||||||||||||
Gross | 330,000 | 112,179 | |||||||||||||||||||
Accumulated impairments | (112,000 | ) | (16,317 | ) | |||||||||||||||||
Net balance | 218,000 | 95,862 | |||||||||||||||||||
Statement of Operations for the Fiscal Year Ended June 30, 2013: | |||||||||||||||||||||
Impairment charge | (28,000 | ) | — | ||||||||||||||||||
Balance Sheet at June 30, 2013: | |||||||||||||||||||||
Gross | 330,000 | 112,179 | |||||||||||||||||||
Accumulated impairments | (140,000 | ) | (16,317 | ) | |||||||||||||||||
Net balance | 190,000 | 95,862 | |||||||||||||||||||
Statement of Operations for the Fiscal Year Ended June 30, 2014: | |||||||||||||||||||||
Impairment charge | (116,800 | ) | (8,000 | ) | |||||||||||||||||
Balance Sheet at June 30, 2014: | |||||||||||||||||||||
Gross | 330,000 | 112,179 | |||||||||||||||||||
Accumulated impairments | (256,800 | ) | (24,317 | ) | |||||||||||||||||
Net balance | $ | 73,200 | $ | 87,862 | |||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | ||||||||||||||||||||
Total estimated amortization of the Company’s intangible assets for each of the years ending June 30, 2015 through 2019 was as follows at June 30, 2014 (in thousands): | |||||||||||||||||||||
Fiscal years | Amortization | ||||||||||||||||||||
Expense | |||||||||||||||||||||
2015 | $ | 5,434 | |||||||||||||||||||
2016 | 2,936 | ||||||||||||||||||||
2017 | 340 | ||||||||||||||||||||
2018 | 51 | ||||||||||||||||||||
Student_Receivables_Tables
Student Receivables (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Schedule of Student Receivables, Gross | ' | |||||||
The gross current and non-current student receivables, which excludes loans awarded under the student lending program further described below, by student status were as follows at June 30 (in thousands): | ||||||||
2014 | 2013 | |||||||
In-school | $ | 236,144 | $ | 194,062 | ||||
Out-of-school (1) | 63,624 | 128,375 | ||||||
Collections | 115,293 | 110,955 | ||||||
Gross student receivables | $ | 415,061 | $ | 433,392 | ||||
Schedule of Allowance for Doubtful Accounts | ' | |||||||
A roll forward of the Company's total allowance for doubtful accounts and loan loss reserves from June 30, 2011 to June 30, 2014 is as follows (in thousands): | ||||||||
Balance June 30, 2011 | $ | 199,357 | ||||||
Bad debt expense | 163,926 | |||||||
Amounts written off | (113,001 | ) | ||||||
Balance June 30, 2012 | 250,282 | |||||||
Bad debt expense | 171,850 | |||||||
Amounts written off (2) | (213,884 | ) | ||||||
Balance June 30, 2013 | 208,248 | |||||||
Bad debt expense (1) | 141,946 | |||||||
Amounts written off | (156,354 | ) | ||||||
Balance June 30, 2014 | $ | 193,840 | ||||||
(1) Refer to Note 2, "Summary of Significant Accounting Policies," for details with respect to a correction in the Company's policy regarding the recognition of incremental revenue recorded when students withdraw. | ||||||||
(2) As explained in Note 2, "Summary of Significant Accounting Policies," the Company reduced the number of days after which accounts in collections are written off during fiscal 2013. |
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Accrued Liabilities [Abstract] | ' | |||||||||||
Restructuring and Related Costs | ' | |||||||||||
During the fiscal years ended June 30, the Company recorded the following restructuring expenses in educational services expense and general and administrative expense (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Employee severance and other | $ | 21,141 | $ | 11,877 | $ | 11,633 | ||||||
Leases | 5,811 | 2,043 | 2,500 | |||||||||
Total restructuring expense | $ | 26,952 | $ | 13,920 | $ | 14,133 | ||||||
Schedule of Accrued Liabilities | ' | |||||||||||
Accrued liabilities consisted of the following at June 30 (in thousands): | ||||||||||||
2014 | 2013 | |||||||||||
Payroll and related taxes | $ | 35,918 | $ | 39,330 | ||||||||
Advertising | 25,597 | 33,010 | ||||||||||
Benefits | 15,345 | 16,235 | ||||||||||
Interest | 7,900 | 10,416 | ||||||||||
Capital expenditures | 7,387 | 4,113 | ||||||||||
Other | 75,135 | 54,313 | ||||||||||
Total accrued liabilities | $ | 167,282 | $ | 157,417 | ||||||||
ShortTerm_And_LongTerm_Debt_Ta
Short-Term And Long-Term Debt (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Long-term Debt Instruments | ' | |||||||
The Company’s long-term debt consisted of the following at June 30 (in thousands): | ||||||||
2014 | 2013 | |||||||
Senior secured term loan facility, due in June 2016 ("Tranche C-2 Loan") | $ | 728,369 | $ | 736,454 | ||||
Senior secured term loan facility, due in March 2018, net of discount of $2,288 and $2,898 ("Tranche C-3 Loan") | 339,183 | 342,364 | ||||||
Senior cash pay/PIK notes due 2018, net of discount of $22,335 and $27,712 ("Cash Pay/PIK Notes") | 215,909 | 206,242 | ||||||
Other | — | 180 | ||||||
Total long-term debt | 1,283,461 | 1,285,240 | ||||||
Less current portion | (11,875 | ) | (12,076 | ) | ||||
Total long-term debt, less current portion | $ | 1,271,586 | $ | 1,273,164 | ||||
Schedule of Maturities of Long-term Debt | ' | |||||||
At June 30, 2014, future annual principal payments on long-term debt and the revolving credit facility were as follows for the fiscal years ending June 30 (in thousands): | ||||||||
Fiscal year: | Amount | |||||||
2015 | $ | 231,765 | ||||||
2016 | 724,072 | |||||||
2017 | 3,753 | |||||||
2018 | 330,140 | |||||||
2019 | 255,944 | |||||||
Total | $ | 1,545,674 | ||||||
Fair_Value_Of_Financial_Instru1
Fair Value Of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | |||||||||||||||||||||||||
The following table presents the carrying amounts and fair values of the interest rate swap liabilities, which are measured at fair value on a recurring basis based on the framework described in Note 9, "Derivative Instruments," and the fair values of the Company's debt, which is recorded at carrying value (in thousands): | ||||||||||||||||||||||||||
30-Jun-14 | 30-Jun-13 | |||||||||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Carrying Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Recurring: | ||||||||||||||||||||||||||
Interest rate swap liability | $ | 11,223 | $ | — | $ | 11,223 | $ | — | $ | 20,232 | $ | — | $ | 20,232 | $ | — | ||||||||||
Disclosure only: | ||||||||||||||||||||||||||
Variable rate debt | 1,067,552 | — | 824,715 | — | 1,078,818 | — | 962,134 | — | ||||||||||||||||||
Fixed rate debt | 215,909 | — | — | 232,102 | 206,422 | — | — | 206,422 | ||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | ' | |||||||||||
The composition of (loss) income before taxes from domestic and foreign locations was as follows for the fiscal years ended June 30 (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Domestic | $ | (619,243 | ) | $ | (233,153 | ) | $ | (1,446,575 | ) | |||
Foreign | 1,963 | 801 | 1,568 | |||||||||
Loss before taxes | $ | (617,280 | ) | $ | (232,352 | ) | $ | (1,445,007 | ) | |||
Schedule of Components of Income Tax Expense (Benefit) | ' | |||||||||||
The components of income tax expense (benefit) reflected in the accompanying consolidated statements of operations were as follows for the fiscal years ended June 30 (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current taxes: | ||||||||||||
Federal | $ | 7,472 | $ | 32,441 | $ | 104,730 | ||||||
State and local | 2,891 | (1,563 | ) | 14,027 | ||||||||
Total current tax expense | 10,363 | 30,878 | 118,757 | |||||||||
Deferred tax expense (benefit) | 36,274 | (18,840 | ) | (130,194 | ) | |||||||
Income tax expense (benefit) | $ | 46,637 | $ | 12,038 | $ | (11,437 | ) | |||||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||||||||||
Income tax expense (benefit) reflected in the accompanying consolidated statements of operations varies from the amounts that would have been provided by applying the United States federal statutory income tax rate to earnings before income taxes as shown below for the fiscal years ended June 30 (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S. federal statutory income tax | $ | (216,048 | ) | $ | (81,323 | ) | $ | (505,752 | ) | |||
State and local income taxes, net of federal benefit | (10,708 | ) | (196 | ) | (6,741 | ) | ||||||
Increase in valuation allowance | 127,738 | 151 | 3,069 | |||||||||
State tax settlements, net of federal benefit | — | (3,808 | ) | — | ||||||||
Permanent items | 1,880 | 2,913 | 1,477 | |||||||||
Nondeductible goodwill | 151,812 | 94,805 | 497,991 | |||||||||
Uncertain tax positions | (2,956 | ) | (490 | ) | (602 | ) | ||||||
Other items, net | (5,081 | ) | (14 | ) | (879 | ) | ||||||
Income tax expense (benefit) | $ | 46,637 | $ | 12,038 | $ | (11,437 | ) | |||||
Schedule of Deferred Tax Assets and Liabilities | ' | |||||||||||
Net deferred income tax assets and liabilities consisted of the following at June 30 (in thousands): | ||||||||||||
2014 | 2013 | |||||||||||
Current deferred tax assets: | ||||||||||||
Allowance for doubtful accounts | $ | 71,689 | $ | 71,769 | ||||||||
Accrued wages | 3,481 | 6,872 | ||||||||||
Interest rate swap | 4,887 | — | ||||||||||
Other | 9,069 | 3,434 | ||||||||||
Gross current deferred tax assets | 89,126 | 82,075 | ||||||||||
Less valuation allowance | (64,624 | ) | (5,148 | ) | ||||||||
Total current deferred tax assets | $ | 24,502 | $ | 76,927 | ||||||||
Noncurrent deferred tax assets: | ||||||||||||
Interest rate swap | $ | — | $ | 8,819 | ||||||||
Deferred liabilities | 30,045 | 35,683 | ||||||||||
Foreign and state net operating losses | 12,834 | 7,990 | ||||||||||
Property and equipment | 7,847 | — | ||||||||||
Share-based compensation | 25,493 | 24,023 | ||||||||||
Other | 35,910 | 26,981 | ||||||||||
Gross noncurrent deferred tax assets | 112,129 | 103,496 | ||||||||||
Less valuation allowance | (87,639 | ) | (19,677 | ) | ||||||||
Total noncurrent deferred tax assets | 24,490 | 83,819 | ||||||||||
Noncurrent deferred tax liabilities: | ||||||||||||
Intangible assets | 82,569 | 130,491 | ||||||||||
Property and equipment | — | 25,657 | ||||||||||
Other | 498 | 293 | ||||||||||
Total noncurrent deferred tax liabilities | 83,067 | 156,441 | ||||||||||
Total net noncurrent deferred tax liabilities | $ | 58,577 | $ | 72,622 | ||||||||
Schedule of Unrecognized Tax Benefits Roll Forward | ' | |||||||||||
A reconciliation of the beginning and ending balance of unrecognized tax benefits, excluding interest expense and the indirect benefits of state taxes, for the fiscal years ended June 30 is as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Unrecognized tax benefits, beginning of year | $ | 3,962 | $ | 4,523 | $ | 5,438 | ||||||
(Decrease) in prior year unrecognized tax benefits | — | — | (93 | ) | ||||||||
Increase in current year unrecognized tax benefits | — | 127 | 58 | |||||||||
(Decrease) in unrecognized tax benefits due to the expiration of statutes of limitation | (2,926 | ) | (688 | ) | (880 | ) | ||||||
Unrecognized tax benefits, end of year | $ | 1,036 | $ | 3,962 | $ | 4,523 | ||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | ' | ||||||||||||
Below is a summary of the weighted-average assumptions used for time-based options granted during the years ended June 30, which excludes the replacement options granted in fiscal 2013 in connection with the Options Exchange that is explained separately below: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average fair value of options | $ | 7.66 | $ | 2.76 | $ | 9.29 | |||||||
Expected dividend yield | — | % | — | % | — | % | |||||||
Expected volatility | 64 | % | 78.6 | % | 45 | % | |||||||
Risk-free interest rate | 1.9 | % | 1.2 | % | 1.5 | % | |||||||
Expected forfeiture rate at the date of grant | 12.9 | % | — | % | 7.3 | % | |||||||
Expected term | 6.25 years | 7.5 years | 6.25 years | ||||||||||
Vesting periods | 4 years | 4 years | 4 years | ||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | ||||||||||||
Net of expected forfeitures, the Company's unrecognized compensation expense was as follows at June 30, 2014 for each type of award outstanding (in thousands): | |||||||||||||
Time-based stock options | $ | 19,149 | |||||||||||
Restricted stock units | 8,627 | ||||||||||||
Performance-based stock options | 2,019 | ||||||||||||
Total unrecognized compensation expense | $ | 29,795 | |||||||||||
A roll forward of time-based option activity during fiscal 2014 is presented below. | |||||||||||||
Options (in thousands) | Weighted | Weighted | Aggregate | ||||||||||
Average | Average | Intrinsic | |||||||||||
Exercise Price | Remaining | Value (in | |||||||||||
Contractual | thousands) | ||||||||||||
Life | |||||||||||||
Outstanding at June 30, 2013 | 10,989 | $ | 4.06 | 7.5 years | $ | 17,120 | |||||||
Granted | 1,534 | $ | 12.74 | ||||||||||
Forfeited | (911 | ) | $ | 5.54 | |||||||||
Exercised | (753 | ) | $ | 3.58 | |||||||||
Expired | (159 | ) | $ | 3.57 | |||||||||
Outstanding at June 30, 2014 | 10,700 | $ | 4.81 | 6.9 years | |||||||||
Exercisable at June 30, 2014 | 4,498 | $ | 3.61 | 4.7 years | $ | — | |||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | ' | ||||||||||||
Restricted Stock Units | |||||||||||||
A roll forward of restricted stock units ("RSU") activity during fiscal 2014 is presented below. | |||||||||||||
RSUs (in thousands) | Weighted | ||||||||||||
Average Share Price | |||||||||||||
Outstanding at June 30, 2013 | 3,020 | $ | 3.47 | ||||||||||
Granted | 668 | $ | 12.74 | ||||||||||
Vested | (968 | ) | $ | 3.64 | |||||||||
Forfeited | (648 | ) | $ | 4.45 | |||||||||
Outstanding at June 30, 2014 | 2,072 | $ | 6.04 | ||||||||||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 12 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||
As of June 30, 2014, the annual minimum future commitments under non-cancelable, long-term operating leases were as follows for the fiscal years ending June 30, 2015 to 2019 and thereafter (in thousands): | ||||
2015 | $ | 184,954 | ||
2016 | 149,890 | |||
2017 | 142,686 | |||
2018 | 125,514 | |||
2019 | 110,384 | |||
Thereafter | 303,765 | |||
Guarantor_Subsidiaries_Financi1
Guarantor Subsidiaries Financial Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Guarantor Subsidiaries Financial Information [Abstract] | ' | ||||||||||||||||||||||||
Condensed Balance Sheet | ' | ||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEET | |||||||||||||||||||||||||
June 30, 2013 (In thousands) | |||||||||||||||||||||||||
EM LLC | Guarantor | Non-Guarantor | Eliminations | EM LLC | EDMC | Eliminations | EDMC | ||||||||||||||||||
Subsidiaries | Subsidiaries | Consolidated | Consolidated | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | (10,777 | ) | $ | 139 | $ | 141,110 | $ | — | $ | 130,472 | $ | 223 | $ | — | $ | 130,695 | ||||||||
Restricted cash | 46,982 | — | 224,358 | — | 271,340 | — | — | 271,340 | |||||||||||||||||
Student and other receivables, net | 134 | 253 | 238,565 | — | 238,952 | 1 | — | 238,953 | |||||||||||||||||
Other current assets | 27,488 | 570 | 102,573 | — | 130,631 | — | — | 130,631 | |||||||||||||||||
Total current assets | 63,827 | 962 | 706,606 | — | 771,395 | 224 | — | 771,619 | |||||||||||||||||
Property and equipment, net | 65,018 | 5,984 | 454,623 | — | 525,625 | — | — | 525,625 | |||||||||||||||||
Goodwill | 7,328 | — | 769,825 | — | 777,153 | — | — | 777,153 | |||||||||||||||||
Intangible assets, net | 1,101 | 28 | 299,306 | — | 300,435 | — | — | 300,435 | |||||||||||||||||
Investment in subsidiaries | 846,826 | — | — | (846,826 | ) | — | 187,289 | (187,289 | ) | — | |||||||||||||||
Intercompany balances | 653,504 | (31,016 | ) | (791,213 | ) | — | (168,725 | ) | 168,725 | — | — | ||||||||||||||
Other long-term assets | 5,059 | — | 43,465 | — | 48,524 | — | — | 48,524 | |||||||||||||||||
Total assets | $ | 1,642,663 | $ | (24,042 | ) | $ | 1,482,612 | $ | (846,826 | ) | $ | 2,254,407 | $ | 356,238 | $ | (187,289 | ) | $ | 2,423,356 | ||||||
Liabilities and shareholders’ equity (deficit) | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Current portion of long-term debt and revolving credit facility | $ | 86,850 | $ | — | $ | 226 | $ | — | $ | 87,076 | $ | — | $ | — | $ | 87,076 | |||||||||
Other current liabilities | 51,558 | 3,018 | 344,397 | — | 398,973 | 49 | — | 399,022 | |||||||||||||||||
Total current liabilities | 138,408 | 3,018 | 344,623 | — | 486,049 | 49 | — | 486,098 | |||||||||||||||||
Long-term debt, less current portion | 1,273,214 | — | — | — | 1,273,214 | (50 | ) | — | 1,273,164 | ||||||||||||||||
Other long-term liabilities | 41,519 | 248 | 193,849 | — | 235,616 | — | — | 235,616 | |||||||||||||||||
Deferred income taxes | 2,233 | 399 | 69,607 | — | 72,239 | 383 | — | 72,622 | |||||||||||||||||
Total liabilities | 1,455,374 | 3,665 | 608,079 | — | 2,067,118 | 382 | — | 2,067,500 | |||||||||||||||||
Total shareholders’ equity (deficit) | 187,289 | (27,707 | ) | 874,533 | (846,826 | ) | 187,289 | 355,856 | (187,289 | ) | 355,856 | ||||||||||||||
Total liabilities and shareholders’ equity (deficit) | $ | 1,642,663 | $ | (24,042 | ) | $ | 1,482,612 | $ | (846,826 | ) | $ | 2,254,407 | $ | 356,238 | $ | (187,289 | ) | $ | 2,423,356 | ||||||
CONDENSED CONSOLIDATED BALANCE SHEET | |||||||||||||||||||||||||
June 30, 2014 (In thousands) | |||||||||||||||||||||||||
EM LLC | Guarantor | Non-Guarantor | Eliminations | EM LLC | EDMC | Eliminations | EDMC | ||||||||||||||||||
Subsidiaries | Subsidiaries | Consolidated | Consolidated | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | (14,680 | ) | $ | 83 | $ | 234,478 | $ | — | $ | 219,881 | $ | 50,686 | $ | — | $ | 270,567 | ||||||||
Restricted cash | 42,916 | — | 221,490 | — | 264,406 | 7,275 | — | 271,681 | |||||||||||||||||
Student and other receivables, net | 442 | 144 | 267,504 | — | 268,090 | — | — | 268,090 | |||||||||||||||||
Other current assets | 30,049 | 888 | 34,691 | — | 65,628 | — | — | 65,628 | |||||||||||||||||
Total current assets | 58,727 | 1,115 | 758,163 | — | 818,005 | 57,961 | — | 875,966 | |||||||||||||||||
Property and equipment, net | 66,901 | 5,804 | 356,752 | — | 429,457 | — | — | 429,457 | |||||||||||||||||
Goodwill | 7,328 | — | 336,078 | — | 343,406 | — | — | 343,406 | |||||||||||||||||
Intangible assets, net | 901 | 19 | 168,903 | — | 169,823 | — | — | 169,823 | |||||||||||||||||
Investment in subsidiaries | 356,375 | — | — | (356,375 | ) | — | (471,203 | ) | 471,203 | — | |||||||||||||||
Intercompany balances | 668,366 | (34,161 | ) | (761,313 | ) | — | (127,108 | ) | 127,108 | — | — | ||||||||||||||
Other long-term assets | 25,314 | — | 33,070 | — | 58,384 | — | — | 58,384 | |||||||||||||||||
Total assets | $ | 1,183,912 | $ | (27,223 | ) | $ | 891,653 | $ | (356,375 | ) | $ | 1,691,967 | $ | (286,134 | ) | $ | 471,203 | $ | 1,877,036 | ||||||
Liabilities and shareholders’ equity (deficit) | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Current portion of long-term debt and revolving credit facility | $ | 231,765 | $ | — | $ | — | $ | — | $ | 231,765 | $ | — | $ | — | $ | 231,765 | |||||||||
Other current liabilities | 129,892 | 2,913 | 270,755 | — | 403,560 | — | — | 403,560 | |||||||||||||||||
Total current liabilities | 361,657 | 2,913 | 270,755 | — | 635,325 | — | — | 635,325 | |||||||||||||||||
Long-term debt, less current portion | 1,271,586 | — | — | — | 1,271,586 | — | — | 1,271,586 | |||||||||||||||||
Other long-term liabilities | 21,695 | 119 | 174,607 | — | 196,421 | — | — | 196,421 | |||||||||||||||||
Deferred income taxes | 177 | 120 | 59,541 | — | 59,838 | (1,261 | ) | — | 58,577 | ||||||||||||||||
Total liabilities | 1,655,115 | 3,152 | 504,903 | — | 2,163,170 | (1,261 | ) | — | 2,161,909 | ||||||||||||||||
Total shareholders’ equity (deficit) | (471,203 | ) | (30,375 | ) | 386,750 | (356,375 | ) | (471,203 | ) | (284,873 | ) | 471,203 | (284,873 | ) | |||||||||||
Total liabilities and shareholders’ equity (deficit) | $ | 1,183,912 | $ | (27,223 | ) | $ | 891,653 | $ | (356,375 | ) | $ | 1,691,967 | $ | (286,134 | ) | $ | 471,203 | $ | 1,877,036 | ||||||
Condensed Income Statement | ' | ||||||||||||||||||||||||
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS | |||||||||||||||||||||||||
For the Fiscal Year Ended June 30, 2013 (In thousands) | |||||||||||||||||||||||||
EM LLC | Guarantor Subsidiaries | Non-Guarantor | Eliminations | EM LLC | EDMC | Eliminations | EDMC | ||||||||||||||||||
Subsidiaries | Consolidated | Consolidated | |||||||||||||||||||||||
Net revenues | $ | — | $ | 8,392 | $ | 2,490,207 | $ | — | $ | 2,498,599 | $ | — | $ | — | $ | 2,498,599 | |||||||||
Costs and expenses: | |||||||||||||||||||||||||
Educational services | 116,094 | 9,287 | 1,321,716 | — | 1,447,097 | — | — | 1,447,097 | |||||||||||||||||
General and administrative | (101,570 | ) | (545 | ) | 791,258 | — | 689,143 | — | — | 689,143 | |||||||||||||||
Depreciation and amortization | 32,552 | 605 | 131,555 | — | 164,712 | — | — | 164,712 | |||||||||||||||||
Long-lived asset impairments | — | — | 300,104 | — | 300,104 | — | — | 300,104 | |||||||||||||||||
Total costs and expenses | 47,076 | 9,347 | 2,544,633 | — | 2,601,056 | — | — | 2,601,056 | |||||||||||||||||
Loss before interest, loss on debt refinancing and income taxes | (47,076 | ) | (955 | ) | (54,426 | ) | — | (102,457 | ) | — | — | (102,457 | ) | ||||||||||||
Interest expense (income), net | 122,297 | — | 2,387 | — | 124,684 | (21 | ) | — | 124,663 | ||||||||||||||||
Loss on debt refinancing | 5,232 | — | — | — | 5,232 | — | — | 5,232 | |||||||||||||||||
Deficit in loss of subsidiaries | (61,469 | ) | — | — | 61,469 | — | (244,020 | ) | 244,020 | — | |||||||||||||||
Loss before income taxes | (236,074 | ) | (955 | ) | (56,813 | ) | 61,469 | (232,373 | ) | (243,999 | ) | 244,020 | (232,352 | ) | |||||||||||
Income tax expense | 7,946 | 43 | 3,658 | — | 11,647 | 391 | — | 12,038 | |||||||||||||||||
Net loss | (244,020 | ) | (998 | ) | (60,471 | ) | 61,469 | (244,020 | ) | (244,390 | ) | 244,020 | (244,390 | ) | |||||||||||
Net change in unrecognized loss on interest rate swaps, net of tax | $ | 4,923 | $ | — | $ | — | $ | — | $ | 4,923 | $ | 4,923 | $ | (4,923 | ) | $ | 4,923 | ||||||||
Foreign currency translation loss | (527 | ) | — | (527 | ) | 527 | (527 | ) | (527 | ) | 527 | (527 | ) | ||||||||||||
Other comprehensive loss | 4,396 | — | (527 | ) | 527 | 4,396 | 4,396 | (4,396 | ) | 4,396 | |||||||||||||||
Comprehensive loss | $ | (239,624 | ) | $ | (998 | ) | $ | (60,998 | ) | $ | 61,996 | $ | (239,624 | ) | $ | (239,994 | ) | $ | 239,624 | $ | (239,994 | ) | |||
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS | |||||||||||||||||||||||||
For the Fiscal Year Ended June 30, 2014 (In thousands) | |||||||||||||||||||||||||
EM LLC | Guarantor Subsidiaries | Non-Guarantor | Eliminations | EM LLC | EDMC | Eliminations | EDMC | ||||||||||||||||||
Subsidiaries | Consolidated | Consolidated | |||||||||||||||||||||||
Net revenues | $ | — | $ | 7,684 | $ | 2,265,052 | $ | — | $ | 2,272,736 | $ | — | $ | — | $ | 2,272,736 | |||||||||
Costs and expenses: | |||||||||||||||||||||||||
Educational services | 65,655 | 10,285 | 1,297,758 | — | 1,373,698 | 1 | — | 1,373,699 | |||||||||||||||||
General and administrative | (61,141 | ) | (751 | ) | 729,459 | — | 667,567 | — | — | 667,567 | |||||||||||||||
Depreciation and amortization | 28,744 | 631 | 123,126 | — | 152,501 | — | — | 152,501 | |||||||||||||||||
Long-lived asset impairments | — | — | 568,216 | 568,216 | 568,216 | ||||||||||||||||||||
Total costs and expenses | 33,258 | 10,165 | 2,718,559 | — | 2,761,982 | 1 | — | 2,761,983 | |||||||||||||||||
Loss before interest and income taxes | (33,258 | ) | (2,481 | ) | (453,507 | ) | — | (489,246 | ) | (1 | ) | — | (489,247 | ) | |||||||||||
Interest expense (income), net | 128,650 | — | (609 | ) | — | 128,041 | (8 | ) | — | 128,033 | |||||||||||||||
Deficit in loss of subsidiaries | (489,781 | ) | — | — | 489,781 | — | (663,921 | ) | 663,921 | — | |||||||||||||||
Loss before income taxes | (651,689 | ) | (2,481 | ) | (452,898 | ) | 489,781 | (617,287 | ) | (663,914 | ) | 663,921 | (617,280 | ) | |||||||||||
Income tax expense | 12,232 | 187 | 34,215 | — | 46,634 | 3 | — | 46,637 | |||||||||||||||||
Net loss | $ | (663,921 | ) | $ | (2,668 | ) | $ | (487,113 | ) | $ | 489,781 | $ | (663,921 | ) | $ | (663,917 | ) | $ | 663,921 | $ | (663,917 | ) | |||
Net change in unrecognized loss on interest rate swaps, net of tax | $ | 6,099 | $ | — | $ | — | $ | — | $ | 6,099 | $ | 6,099 | $ | (6,099 | ) | $ | 6,099 | ||||||||
Foreign currency translation loss | (670 | ) | — | (670 | ) | 670 | (670 | ) | (670 | ) | 670 | (670 | ) | ||||||||||||
Other comprehensive income | 5,429 | — | (670 | ) | 670 | 5,429 | 5,429 | (5,429 | ) | 5,429 | |||||||||||||||
Comprehensive loss | $ | (658,492 | ) | $ | (2,668 | ) | $ | (487,783 | ) | $ | 490,451 | $ | (658,492 | ) | $ | (658,488 | ) | $ | 658,492 | $ | (658,488 | ) | |||
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||
For the Fiscal Year Ended June 30, 2012 (In thousands) | |||||||||||||||||||||||||
EM LLC | Guarantor | Non-Guarantor | Eliminations | EM LLC | EDMC | Eliminations | EDMC | ||||||||||||||||||
Subsidiaries | Subsidiaries | Consolidated | Consolidated | ||||||||||||||||||||||
Net revenues | $ | — | $ | 9,000 | $ | 2,751,967 | $ | — | $ | 2,760,967 | $ | — | $ | — | $ | 2,760,967 | |||||||||
Costs and expenses: | |||||||||||||||||||||||||
Educational services | 93,322 | 10,554 | 1,398,480 | — | 1,502,356 | — | — | 1,502,356 | |||||||||||||||||
General and administrative | (82,634 | ) | (352 | ) | 845,573 | — | 762,587 | 276 | — | 762,863 | |||||||||||||||
Depreciation and amortization | 26,637 | 500 | 131,526 | — | 158,663 | — | — | 158,663 | |||||||||||||||||
Long-lived asset impairments | — | — | 1,662,288 | 1,662,288 | 1,662,288 | ||||||||||||||||||||
Total costs and expenses | 37,325 | 10,702 | 4,037,867 | — | 4,085,894 | 276 | — | 4,086,170 | |||||||||||||||||
Loss before interest, loss on debt refinancing and income taxes | (37,325 | ) | (1,702 | ) | (1,285,900 | ) | — | (1,324,927 | ) | (276 | ) | — | (1,325,203 | ) | |||||||||||
Interest expense (income), net | 107,772 | — | 2,565 | — | 110,337 | (7 | ) | — | 110,330 | ||||||||||||||||
Loss on debt refinancing | 9,474 | — | — | — | 9,474 | — | — | 9,474 | |||||||||||||||||
Deficit in loss of subsidiaries | (1,280,207 | ) | — | — | 1,280,207 | — | (1,433,398 | ) | 1,433,398 | — | |||||||||||||||
Loss before income taxes | (1,434,778 | ) | (1,702 | ) | (1,288,465 | ) | 1,280,207 | (1,444,738 | ) | (1,433,667 | ) | 1,433,398 | (1,445,007 | ) | |||||||||||
Income tax benefit | (1,380 | ) | (15 | ) | (9,945 | ) | — | (11,340 | ) | (97 | ) | — | (11,437 | ) | |||||||||||
Net loss | $ | (1,433,398 | ) | $ | (1,687 | ) | $ | (1,278,520 | ) | $ | 1,280,207 | $ | (1,433,398 | ) | $ | (1,433,570 | ) | $ | 1,433,398 | $ | (1,433,570 | ) | |||
Net change in unrecognized loss on interest rate swaps, net of tax | $ | (5,189 | ) | $ | — | $ | — | $ | — | $ | (5,189 | ) | $ | (5,189 | ) | $ | 5,189 | $ | (5,189 | ) | |||||
Foreign currency translation gain | (658 | ) | — | (658 | ) | 658 | (658 | ) | (658 | ) | 658 | (658 | ) | ||||||||||||
Other comprehensive loss | (5,847 | ) | — | (658 | ) | 658 | (5,847 | ) | (5,847 | ) | 5,847 | (5,847 | ) | ||||||||||||
Comprehensive loss | $ | (1,439,245 | ) | $ | (1,687 | ) | $ | (1,279,178 | ) | $ | 1,280,865 | $ | (1,439,245 | ) | $ | (1,439,417 | ) | $ | 1,439,245 | $ | (1,439,417 | ) | |||
Condensed Cash Flow Statement | ' | ||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
For the Fiscal Year Ended June 30, 2013 (In thousands) | |||||||||||||||||||||||||
EM LLC | Guarantor | Non-Guarantor | EM LLC | EDMC | EDMC | ||||||||||||||||||||
Subsidiaries | Subsidiaries | Consolidated | Consolidated | ||||||||||||||||||||||
Net cash flows provided by (used in) operations | $ | (168,316 | ) | $ | (5,632 | ) | $ | 365,231 | $ | 191,283 | $ | 24 | $ | 191,307 | |||||||||||
Cash flows from investing activities | |||||||||||||||||||||||||
Expenditures for long-lived assets | (10,297 | ) | (947 | ) | (71,997 | ) | (83,241 | ) | — | (83,241 | ) | ||||||||||||||
Proceeds from sale of fixed assets | — | — | 65,065 | 65,065 | — | 65,065 | |||||||||||||||||||
Other investing activities | (858 | ) | — | (6,778 | ) | (7,636 | ) | — | (7,636 | ) | |||||||||||||||
Net cash flows used in investing activities | (11,155 | ) | (947 | ) | (13,710 | ) | (25,812 | ) | — | (25,812 | ) | ||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||||
Net repayments of debt and other | (225,406 | ) | — | (234 | ) | (225,640 | ) | 3 | (225,637 | ) | |||||||||||||||
Intercompany transactions | 420,349 | 6,620 | (423,966 | ) | 3,003 | (3,003 | ) | — | |||||||||||||||||
Net cash flows provided by (used in) financing activities | 194,943 | 6,620 | (424,200 | ) | (222,637 | ) | (3,000 | ) | (225,637 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (171 | ) | (171 | ) | — | (171 | ) | ||||||||||||||||
Net change in cash and cash equivalents | 15,472 | 41 | (72,850 | ) | (57,337 | ) | (2,976 | ) | (60,313 | ) | |||||||||||||||
Beginning cash and cash equivalents | (26,249 | ) | 98 | 213,960 | 187,809 | 3,199 | 191,008 | ||||||||||||||||||
Ending cash and cash equivalents | $ | (10,777 | ) | $ | 139 | $ | 141,110 | $ | 130,472 | $ | 223 | $ | 130,695 | ||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
For the Fiscal Year Ended June 30, 2012 (In thousands) | |||||||||||||||||||||||||
EM LLC | Guarantor | Non-Guarantor | EM LLC | EDMC | EDMC | ||||||||||||||||||||
Subsidiaries | Subsidiaries | Consolidated | Consolidated | ||||||||||||||||||||||
Net cash flows provided by (used in) operations | $ | (35,071 | ) | $ | 4,015 | $ | 17,140 | $ | (13,916 | ) | $ | 3,066 | $ | (10,850 | ) | ||||||||||
Cash flows from investing activities | |||||||||||||||||||||||||
Expenditures for long-lived assets | (10,373 | ) | (1,127 | ) | (82,046 | ) | (93,546 | ) | — | (93,546 | ) | ||||||||||||||
Other investing activities | (375 | ) | — | (14,932 | ) | (15,307 | ) | — | (15,307 | ) | |||||||||||||||
Net cash flows used in investing activities | (10,748 | ) | (1,127 | ) | (96,978 | ) | (108,853 | ) | — | (108,853 | ) | ||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||||
Net repayments of debt and other | 9,610 | — | (263 | ) | 9,347 | — | 9,347 | ||||||||||||||||||
Common stock repurchased and stock option exercises | — | — | — | — | (101,455 | ) | (101,455 | ) | |||||||||||||||||
Intercompany transactions | 26,776 | (3,060 | ) | (75,171 | ) | (51,455 | ) | 51,455 | — | ||||||||||||||||
Net cash flows provided by (used in) financing activities | 36,386 | (3,060 | ) | (75,434 | ) | (42,108 | ) | (50,000 | ) | (92,108 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (405 | ) | (405 | ) | — | (405 | ) | ||||||||||||||||
Net change in cash and cash equivalents | (9,433 | ) | (172 | ) | (155,677 | ) | (165,282 | ) | (46,934 | ) | (212,216 | ) | |||||||||||||
Beginning cash and cash equivalents | (16,816 | ) | 270 | 369,637 | 353,091 | 50,133 | 403,224 | ||||||||||||||||||
Ending cash and cash equivalents | $ | (26,249 | ) | $ | 98 | $ | 213,960 | $ | 187,809 | $ | 3,199 | $ | 191,008 | ||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
For the Fiscal Year Ended June 30, 2014 (In thousands) | |||||||||||||||||||||||||
EM LLC | Guarantor | Non-Guarantor | EM LLC | EDMC | EDMC | ||||||||||||||||||||
Subsidiaries | Subsidiaries | Consolidated | Consolidated | ||||||||||||||||||||||
Net cash flows provided by (used in) operations | $ | (105,944 | ) | $ | (2,505 | ) | $ | 179,091 | $ | 70,642 | $ | 4 | $ | 70,646 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||
Expenditures for long-lived assets | (11,490 | ) | (997 | ) | (61,273 | ) | (73,760 | ) | — | (73,760 | ) | ||||||||||||||
Proceeds from sale of fixed assets | — | — | 9,565 | 9,565 | — | 9,565 | |||||||||||||||||||
Other investing activities | — | — | (2,457 | ) | (2,457 | ) | — | (2,457 | ) | ||||||||||||||||
Net cash flows used in investing activities | (11,490 | ) | (997 | ) | (54,165 | ) | (66,652 | ) | — | (66,652 | ) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||
Net repayments of debt and other | 133,065 | — | (226 | ) | 132,839 | — | 132,839 | ||||||||||||||||||
Share-based payment activities | — | — | — | — | 3,113 | 3,113 | |||||||||||||||||||
Intercompany transactions | (19,534 | ) | 3,446 | (31,258 | ) | (47,346 | ) | 47,346 | — | ||||||||||||||||
Net cash flows provided by (used in) financing activities | 113,531 | 3,446 | (31,484 | ) | 85,493 | 50,459 | 135,952 | ||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (74 | ) | (74 | ) | — | (74 | ) | ||||||||||||||||
Net change in cash and cash equivalents | (3,903 | ) | (56 | ) | 93,368 | 89,409 | 50,463 | 139,872 | |||||||||||||||||
Beginning cash and cash equivalents | (10,777 | ) | 139 | 141,110 | 130,472 | 223 | 130,695 | ||||||||||||||||||
Ending cash and cash equivalents | $ | (14,680 | ) | $ | 83 | $ | 234,478 | $ | 219,881 | $ | 50,686 | $ | 270,567 | ||||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Schedule of Segment Reporting Information, by Segment | ' | |||||||||||
reconciliation of EBITDA excluding certain expenses by reportable segment to consolidated income (loss) before income taxes is presented below (in thousands): | ||||||||||||
For the Fiscal Year Ended June 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net revenues: | ||||||||||||
The Art Institutes | $ | 1,386,729 | $ | 1,543,385 | $ | 1,738,542 | ||||||
Argosy University | 321,118 | 356,544 | 397,458 | |||||||||
Brown Mackie Colleges | 265,606 | 298,175 | 314,801 | |||||||||
South University | 299,283 | 300,495 | 310,166 | |||||||||
Total EDMC | $ | 2,272,736 | $ | 2,498,599 | $ | 2,760,967 | ||||||
EBITDA excluding certain expenses: | ||||||||||||
The Art Institutes | $ | 268,530 | $ | 352,036 | $ | 480,518 | ||||||
Argosy University | 29,880 | 39,068 | 57,346 | |||||||||
Brown Mackie Colleges | 22,007 | 32,154 | 55,755 | |||||||||
South University | 41,260 | 46,613 | 10,560 | |||||||||
Corporate and other | (85,538 | ) | (89,654 | ) | (94,298 | ) | ||||||
Total EDMC | 276,139 | 380,217 | 509,881 | |||||||||
Reconciliation to loss before income taxes: | ||||||||||||
Long-lived asset impairments | 568,216 | 300,104 | 1,662,288 | |||||||||
Restructuring and other | 26,952 | 13,920 | 14,133 | |||||||||
Lease abandonment charge | 6,367 | — | — | |||||||||
Settlement-related costs | 7,859 | — | — | |||||||||
Loss on sale-leaseback transactions | 3,491 | 3,938 | — | |||||||||
Loss on debt refinancing | — | 5,232 | 9,474 | |||||||||
Depreciation and amortization | 152,501 | 164,712 | 158,663 | |||||||||
Net interest expense | 128,033 | 124,663 | 110,330 | |||||||||
Loss before income taxes | $ | (617,280 | ) | $ | (232,352 | ) | $ | (1,445,007 | ) | |||
Expenditures for long-lived assets: | ||||||||||||
The Art Institutes | $ | 30,829 | $ | 39,778 | $ | 42,970 | ||||||
Argosy University | 5,712 | 6,719 | 6,573 | |||||||||
Brown Mackie Colleges | 2,847 | 9,049 | 11,906 | |||||||||
South University | 4,960 | 7,648 | 9,056 | |||||||||
Corporate and other | 29,412 | 20,047 | 23,041 | |||||||||
Total EDMC | $ | 73,760 | $ | 83,241 | $ | 93,546 | ||||||
As of June 30, | ||||||||||||
Assets: * | 2014 | 2013 | ||||||||||
The Art Institutes | $ | 953,003 | $ | 1,521,597 | ||||||||
Argosy University | 297,320 | 274,151 | ||||||||||
Brown Mackie Colleges | 210,154 | 231,225 | ||||||||||
South University | 229,336 | 233,993 | ||||||||||
Corporate and other | 187,223 | 162,390 | ||||||||||
Total EDMC | $ | 1,877,036 | $ | 2,423,356 | ||||||||
* Excludes inter-company activity. |
Schedule_IIValuation_and_Quali1
Schedule II-Valuation and Qualifying Accounts Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||
Summary of Valuation Allowance [Table Text Block] | ' | |||||||||||||||
Balance at | Additions | Deductions/ | Balance at | |||||||||||||
Beginning | Charged to | Other | End of | |||||||||||||
of Period | Expenses | Period | ||||||||||||||
Year ended June 30, 2012 | ||||||||||||||||
Uncollectible accounts receivable | $ | 194,264 | $ | 163,926 | $ | 113,001 | $ | 245,189 | ||||||||
Estimated future loan losses | 5,093 | — | — | 5,093 | ||||||||||||
Deferred tax asset valuation allowance | 21,667 | 3,600 | — | 25,267 | ||||||||||||
Year ended June 30, 2013 | ||||||||||||||||
Uncollectible accounts receivable | $ | 245,189 | $ | 171,306 | $ | 213,884 | $ | 202,611 | ||||||||
Estimated future loan losses | 5,093 | 544 | — | 5,637 | ||||||||||||
Deferred tax asset valuation allowance | 25,267 | (442 | ) | — | 24,825 | |||||||||||
Year ended June 30, 2014 | ||||||||||||||||
Uncollectible accounts receivable | $ | 202,611 | $ | 129,261 | $ | 156,354 | $ | 175,518 | ||||||||
Estimated future loan losses | 5,637 | 12,685 | — | 18,322 | ||||||||||||
Deferred tax asset valuation allowance | 24,825 | 127,438 | — | 152,263 | ||||||||||||
Supplemental_Quarterly_Informa1
Supplemental Quarterly Information (Tables) | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | ' | |||||||||||||||
The following table sets forth the Company's quarterly results for fiscal years ended June 30, 2014, 2013 and 2012 (in thousands except per share data): | ||||||||||||||||
Quarter Ended | ||||||||||||||||
30-Sep | 31-Dec | 31-Mar | June 30 (1) | |||||||||||||
Fiscal 2014: (1) | ||||||||||||||||
Revenue | $ | 580,380 | $ | 593,673 | $ | 595,202 | $ | 503,481 | ||||||||
Loss before income taxes | $ | (19,948 | ) | $ | (2,383 | ) | $ | (499,926 | ) | $ | (95,023 | ) | ||||
Net (loss) income | $ | (9,514 | ) | $ | 1,089 | $ | (467,646 | ) | $ | (187,846 | ) | |||||
Diluted EPS | $ | (0.08 | ) | $ | 0.01 | $ | (3.71 | ) | $ | (0.69 | ) | |||||
Fiscal 2013: ((2) | ||||||||||||||||
Revenue | $ | 609,565 | $ | 654,895 | $ | 638,903 | $ | 595,236 | ||||||||
(Loss) income before income taxes | $ | (21,818 | ) | $ | 53,064 | $ | (254,111 | ) | $ | (9,487 | ) | |||||
Net (loss) income | $ | (13,091 | ) | $ | 31,144 | $ | (260,408 | ) | $ | (2,035 | ) | |||||
Diluted EPS | $ | (0.11 | ) | $ | 0.25 | $ | (2.09 | ) | $ | (0.02 | ) | |||||
Fiscal 2012: (2) | ||||||||||||||||
Revenue | $ | 682,095 | $ | 737,188 | $ | 702,499 | $ | 639,185 | ||||||||
Income (loss) before income taxes | $ | 44,115 | $ | 103,291 | $ | (417,844 | ) | $ | (1,174,569 | ) | ||||||
Net (loss) income | $ | 26,954 | $ | 63,127 | $ | (394,926 | ) | $ | (1,128,725 | ) | ||||||
Diluted EPS | $ | 0.21 | $ | 0.49 | $ | (2.69 | ) | $ | (9.51 | ) | ||||||
(1) Refer to Note 2, "Summary of Significant Accounting Policies," for details with respect to a correction in the Company's policy regarding the recognition of incremental revenue recorded when students withdraw. This correction had the effect of reducing net revenues by $36.7 million and bad debt expense by $33.2 million, which resulted in an increase to the loss before taxes of $3.5 million in the fiscal quarter ended June 30, 2014. Previously reported amounts have not been corrected as the impact was deemed to be immaterial. | ||||||||||||||||
(2) The goodwill impairment charges in fiscal 2012 and fiscal 2013 have been revised as further described in Item 8, "Financial Statements and Supplementary Data," Note 5, "Goodwill and Intangible Assets" under “Correction of Immaterial Errors," which has resulted in (loss) income before income taxes, net (loss) income and diluted EPS being revised as compared to the originally reported amounts. |
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 1 Months Ended | 12 Months Ended | 31 Months Ended | ||||||||
In Millions, except Share data, unless otherwise specified | Oct. 31, 2009 | Jun. 30, 2014 | Oct. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2012 |
Education_Systems | Students | Title IV [Member] | Title IV [Member] | Title IV [Member] | Title IV [Member] | Title IV [Member] | Title IV [Member] | Common Stock | |||
Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Weighted Average [Member] | Weighted Average [Member] | ||||||
Rate | Rate | Rate | Rate | Rate | Rate | ||||||
Number of students | ' | ' | 125,560 | ' | ' | ' | ' | ' | ' | ' | ' |
Online platforms | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of education systems | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares, Issued | 23,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value | $0.01 | $0.01 | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' |
Price Per Share | $18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased During Period, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,900,000 |
Stock Repurchased During Period, Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $328.60 |
Concentration Risk, Percentage | ' | ' | ' | ' | 55.00% | 56.00% | 81.00% | 82.00% | 76.00% | 76.00% | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 05, 2014 | Sep. 05, 2014 | Sep. 04, 2014 | Sep. 05, 2014 | Sep. 04, 2014 | Sep. 04, 2014 | Sep. 04, 2014 | Sep. 04, 2014 | Jun. 30, 2014 | |
U.S. Department of Education [Member] | U.S. Department of Education [Member] | U.S. Department of Education [Member] | Minimum [Member] | Non-Term Title IV [Member] | Non-Term Title IV [Member] | Building and Building Improvements [Member] | Other Capitalized Property Plant and Equipment [Member] | Other Capitalized Property Plant and Equipment [Member] | Online curriculum [Member] | Revenue, Net [Member] | Revenue, Net [Member] | Revenue, Net [Member] | Tiered Refund [Member] | Tiered Refund [Member] | Not Eligible for Refund [Member] | Not Eligible for Refund [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Scenario, Adjustment [Member] | ||||||||||||||||
Revolving Credit Facility [Member] | Letter of Credit [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Tuition and Fees | Tuition and Fees | Tuition and Fees | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Term Loan [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Senior cash pay/PIK notes | First lien senior secured term loans due July 2, 2020 [Member] | Consenting Lenders [Member] | Consenting Shareholders [Member] | Common Stock | ||||||||||||||||||||||
Rate | Rate | Rate | Rate | Rate | Rate | Rate | Rate | Rate | Rate | Rate | Rate | Rate | ||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exchange agreement with holders of outstanding PIK Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86.00% | ' | ' | ' | ' | ' |
Support of comprehensive debt restructuring | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% | 72.00% | ' | ' |
Debt Restructuring, amount to be repaid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $150,000,000 | ' | ' | ' | ' | ' | ' |
Non-SEC Financial Reporting Deadline | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consenting lenders | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 98.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' |
Cash Collateral for Borrowed Securities, Required Percentage of Aggregate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 105.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of Credit Outstanding, Amount | 307,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 307,600,000 | ' | ' | 302,200,000 | 102,200,000 | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, Long-term and Short-term, Combined Amount | 1,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt | 1,545,674,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,545,674,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000,000 | ' | ' | ' | ' |
Warrants Issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' |
Restricted Cash [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '112 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash secured letters of credit | 210,000,000 | ' | ' | ' | 210,000,000 | ' | ' | ' | ' | ' | ' | ' | 210,000,000 | 210,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Title IV funds received in excess of charges applied | 50,406,000 | ' | ' | ' | 56,595,000 | ' | ' | ' | ' | ' | ' | ' | 50,406,000 | 56,595,000 | ' | ' | ' | ' | ' | 35,100,000 | 39,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Surety bonds | 7,275,000 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | 7,275,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Escrowed in connection with student lending program | 2,500,000 | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Endowments | 1,500,000 | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Escrowed in connection with operating lease | 0 | ' | ' | ' | 745,000 | ' | ' | ' | ' | ' | ' | ' | 0 | 745,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted cash | 271,681,000 | ' | ' | ' | 271,340,000 | ' | ' | ' | ' | ' | ' | ' | 271,681,000 | 271,340,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 92.80% | 93.10% | 93.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Refund Policy, Term completion before withdrawal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 59.00% | 60.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 years | '3 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 255,900,000 | 255,000,000 | 296,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | 503,481,000 | 595,202,000 | 593,673,000 | 580,380,000 | 595,236,000 | 638,903,000 | 654,895,000 | 609,565,000 | 639,185,000 | 702,499,000 | 737,188,000 | 682,095,000 | 2,272,736,000 | 2,498,599,000 | 2,760,967,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -36,700,000 |
Accounts Receivable, Gross, Current | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -36,700,000 |
Provision for Doubtful Accounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 141,946,000 | 171,850,000 | 163,926,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -33,200,000 |
Allowance for Doubtful Accounts Receivable, Current | $143,335,000 | ' | ' | ' | $174,760,000 | ' | ' | ' | ' | ' | ' | ' | $143,335,000 | $174,760,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($33,200,000) |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | ($187,846) | ($467,646) | $1,089 | ($9,514) | ($2,035) | ($260,408) | $31,144 | ($13,091) | ($1,128,725) | ($394,926) | $63,127 | $26,954 | ($663,917) | ($244,390) | ($1,433,570) |
Basic (shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,504 | 124,560 | 126,659 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Diluted (shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,504 | 124,560 | 126,659 |
Basic (dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($5.29) | ($1.96) | ($11.32) |
Diluted (dollars per share) | ($0.69) | ($3.71) | $0.01 | ($0.08) | ($0.02) | ($2.09) | $0.25 | ($0.11) | ($9.51) | ($2.69) | $0.49 | $0.21 | ($5.29) | ($1.96) | ($11.32) |
Property_And_Equipment_Details
Property And Equipment (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' | ' | ' |
Property and equipment, gross | ' | $1,260,702,000 | $1,251,731,000 | ' | ' |
Less accumulated depreciation | ' | -831,245,000 | -726,106,000 | ' | ' |
Property and equipment, net | ' | 429,457,000 | 525,625,000 | ' | ' |
Depreciation and amortization of property and equipment | ' | 146,158,000 | 157,871,000 | 151,023,000 | ' |
Capitalized Computer Software, Amortization | ' | 18,300,000 | 20,200,000 | 14,700,000 | ' |
Accelerated Depreciation | ' | ' | 4,600,000 | ' | ' |
Proceeds from sale of fixed assets | ' | 9,565,000 | 65,065,000 | 0 | ' |
Loss on Disposition of Property Plant Equipment | ' | 3,491,000 | 3,938,000 | 0 | ' |
Deferred Gain on Sale of Property | ' | 14,300,000 | ' | ' | 17,800,000 |
Property, Plant and Equipment, Disposals | 6,300,000 | ' | ' | ' | ' |
Restructuring charges | ' | 26,952,000 | 13,920,000 | 14,133,000 | ' |
Impairment of Leasehold | ' | 6,100,000 | 1,200,000 | ' | ' |
Lease Restructuring Charge [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' | ' | ' |
Restructuring charges | ' | 5,811,000 | 2,043,000 | 2,500,000 | ' |
Brown Mackie Colleges [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' | ' | ' |
Number of schools impaired | ' | 3 | ' | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' | ' | ' |
Sale Leaseback Transaction, Lease Terms | ' | '3 years | ' | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' | ' | ' |
Sale Leaseback Transaction, Lease Terms | ' | '15 years | ' | ' | ' |
Leasehold improvements and capitalized lease costs [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' | ' | ' |
Property and equipment, gross | ' | 577,537,000 | 570,286,000 | ' | ' |
Technology and other equipment [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' | ' | ' |
Property and equipment, gross | ' | 329,361,000 | 324,403,000 | ' | ' |
Furniture and equipment [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' | ' | ' |
Property and equipment, gross | ' | 162,872,000 | 163,595,000 | ' | ' |
Software [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' | ' | ' |
Property and equipment, gross | ' | 120,242,000 | 98,537,000 | ' | ' |
Library books [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' | ' | ' |
Property and equipment, gross | ' | 44,604,000 | 44,248,000 | ' | ' |
Building and Building Improvements [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' | ' | ' |
Property and equipment, gross | ' | 5,798,000 | 25,566,000 | ' | ' |
Construction in progress [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' | ' | ' |
Property and equipment, gross | ' | 16,683,000 | 19,601,000 | ' | ' |
Land [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' | ' | ' |
Property and equipment, gross | ' | $3,605,000 | $5,495,000 | ' | ' |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Jun. 01, 2006 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2012 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2014 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | |
Scenario, Previously Reported [Member] | Scenario, Previously Reported [Member] | Scenario, Adjustment [Member] | Scenario, Adjustment [Member] | Scenario, Adjustment [Member] | Scenario, Actual [Member] | Scenario, Actual [Member] | Minimum [Member] | Maximum [Member] | Fully Depreciated Assets [Member] | Curriculum and programs [Member] | Curriculum and programs [Member] | Student contracts, application and relationships [Member] | Student contracts, application and relationships [Member] | Favorable leases and other [Member] | Favorable leases and other [Member] | Tradename-Art Institute [Member] | Tradename-Art Institute [Member] | Tradename-Art Institute [Member] | Tradename-Art Institute [Member] | Licensing, accreditation and Title IV program participation [Member] | Licensing, accreditation and Title IV program participation [Member] | Licensing, accreditation and Title IV program participation [Member] | Licensing, accreditation and Title IV program participation [Member] | The Art Institutes [Member] | The Art Institutes [Member] | The Art Institutes [Member] | The Art Institutes [Member] | The Art Institutes [Member] | The Art Institutes [Member] | The Art Institutes [Member] | The Art Institutes [Member] | The Art Institutes [Member] | Argosy Univeristy and South University [Member] | Argosy Univeristy and South University [Member] | All Reporting Units [Member] | Argosy University [Member] | Argosy University [Member] | Argosy University [Member] | Argosy University [Member] | Argosy University [Member] | Argosy University [Member] | Brown Mackie Colleges [Member] | Brown Mackie Colleges [Member] | Brown Mackie Colleges [Member] | Brown Mackie Colleges [Member] | South University [Member] | South University [Member] | South University [Member] | South University [Member] | ||||||||||||||||||
Rate | Rate | Rate | Tradename-Art Institute [Member] | Tradename-Art Institute [Member] | Licensing, accreditation and Title IV program participation [Member] | Licensing, accreditation and Title IV program participation [Member] | Rate | Rate | Rate | Curriculum and programs [Member] | Licensing, accreditation and Title IV program participation [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rate | Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill, Gross | $2,581,999,000 | ' | ' | ' | $2,581,999,000 | ' | ' | ' | $2,581,999,000 | ' | ' | ' | $2,581,999,000 | $2,581,999,000 | $2,581,999,000 | $2,581,999,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,984,688,000 | $1,984,688,000 | $1,984,688,000 | $1,984,688,000 | ' | ' | ' | ' | ' | ' | ' | $219,350,000 | $219,350,000 | $219,350,000 | $219,350,000 | ' | ' | $254,561,000 | $254,561,000 | $254,561,000 | $254,561,000 | $123,400,000 | $123,400,000 | $123,400,000 | $123,400,000 |
Goodwill, Impaired, Accumulated Impairment Loss | -2,238,593,000 | ' | ' | ' | -1,804,846,000 | ' | ' | ' | -1,533,972,000 | ' | ' | ' | -2,238,593,000 | -1,804,846,000 | -1,533,972,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,767,709,000 | -1,333,962,000 | -1,063,088,000 | 0 | ' | ' | ' | ' | ' | ' | ' | -139,361,000 | -139,361,000 | -139,361,000 | 0 | ' | ' | -254,561,000 | -254,561,000 | -254,561,000 | 0 | -76,962,000 | -76,962,000 | -76,962,000 | 0 |
Goodwill, Ending Balance | 343,406,000 | ' | ' | ' | 777,153,000 | ' | ' | ' | 1,048,027,000 | ' | ' | ' | 343,406,000 | 777,153,000 | 1,048,027,000 | 2,581,999,000 | 2,600,000,000 | 669,090,000 | ' | ' | 108,063,000 | ' | 777,153,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 216,979,000 | 650,726,000 | 921,600,000 | 1,984,688,000 | ' | ' | ' | ' | ' | ' | ' | 79,989,000 | 79,989,000 | 79,989,000 | 219,350,000 | ' | ' | 0 | 0 | 0 | 254,561,000 | 46,438,000 | 46,438,000 | 46,438,000 | 123,400,000 |
Goodwill, Impairment Loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -433,747,000 | -270,874,000 | -1,533,972,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -433,747,000 | -270,874,000 | -1,063,088,000 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -139,361,000 | ' | ' | ' | 0 | 0 | -254,561,000 | ' | 0 | 0 | -76,962,000 | ' |
Balance Sheet | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets | 1,877,036,000 | ' | ' | ' | 2,423,356,000 | ' | ' | ' | ' | ' | ' | ' | 1,877,036,000 | 2,423,356,000 | ' | ' | ' | 2,315,293,000 | ' | ' | 108,063,000 | ' | 2,423,356,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 953,003,000 | 1,521,597,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 297,320,000 | 274,151,000 | ' | ' | ' | ' | 210,154,000 | 231,225,000 | ' | ' | 229,336,000 | 233,993,000 | ' | ' |
Deferred Tax Liabilities, Net | 58,577,000 | ' | ' | ' | 72,622,000 | ' | ' | ' | ' | ' | ' | ' | 58,577,000 | 72,622,000 | ' | ' | ' | 70,316,000 | ' | ' | 2,306,000 | ' | 72,622,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Retained Earnings (Accumulated Deficit) | -1,762,096,000 | ' | ' | ' | -1,098,179,000 | ' | ' | ' | ' | ' | ' | ' | -1,762,096,000 | -1,098,179,000 | ' | ' | ' | -1,203,936,000 | -935,960,000 | ' | 105,757,000 | 82,171,000 | -1,098,179,000 | -853,789,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total shareholders' (deficit) equity | -284,873,000 | ' | ' | ' | 355,856,000 | ' | ' | ' | 578,735,000 | ' | ' | ' | -284,873,000 | 355,856,000 | 578,735,000 | 2,103,944,000 | ' | 250,099,000 | 496,564,000 | ' | 105,757,000 | 82,171,000 | 355,856,000 | 578,735,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities and shareholders’ (deficit) equity | 1,877,036,000 | ' | ' | ' | 2,423,356,000 | ' | ' | ' | ' | ' | ' | ' | 1,877,036,000 | 2,423,356,000 | ' | ' | ' | 2,315,293,000 | ' | ' | 108,063,000 | ' | 2,423,356,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived asset impairments (Notes 4 and 5) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 568,216,000 | 300,104,000 | 1,662,288,000 | ' | ' | 323,690,000 | 1,746,765,000 | ' | -23,586,000 | -84,477,000 | 300,104,000 | 1,662,288,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -489,247,000 | -102,457,000 | -1,325,203,000 | ' | ' | -126,043,000 | -1,409,680,000 | ' | 23,586,000 | 84,477,000 | -102,457,000 | -1,325,203,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss before income taxes | -95,023,000 | -499,926,000 | -2,383,000 | -19,948,000 | -9,487,000 | -254,111,000 | 53,064,000 | -21,818,000 | -1,174,569,000 | -417,844,000 | 103,291,000 | 44,115,000 | -617,280,000 | -232,352,000 | -1,445,007,000 | ' | ' | -255,938,000 | -1,529,484,000 | 3,500,000 | 23,586,000 | 84,477,000 | -232,352,000 | -1,445,007,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46,637,000 | 12,038,000 | -11,437,000 | ' | ' | ' | -13,743,000 | ' | ' | 2,306,000 | ' | -11,437,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings Per Share, Diluted | ($0.69) | ($3.71) | $0.01 | ($0.08) | ($0.02) | ($2.09) | $0.25 | ($0.11) | ($9.51) | ($2.69) | $0.49 | $0.21 | ($5.29) | ($1.96) | ($11.32) | ' | ' | ($2.15) | ($11.97) | ' | $0.19 | $0.65 | ($1.96) | ($11.32) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -658,488,000 | -239,994,000 | -1,439,417,000 | ' | ' | -263,580,000 | -1,521,588,000 | ' | 23,586,000 | 82,171,000 | -239,994,000 | -1,439,417,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Inputs, Discount Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | 15.50% | ' | ' | ' | 15.50% | 16.00% | ' | ' | 17.50% | 18.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in new student enrollments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -16.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | -187,846,000 | -467,646,000 | 1,089,000 | -9,514,000 | -2,035,000 | -260,408,000 | 31,144,000 | -13,091,000 | -1,128,725,000 | -394,926,000 | 63,127,000 | 26,954,000 | -663,917,000 | -244,390,000 | -1,433,570,000 | ' | ' | -267,976,000 | -1,515,741,000 | ' | 23,586,000 | 82,171,000 | -244,390,000 | -1,433,570,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross Carrying Amount - Indefinite-Lived Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73,200,000 | 190,000,000 | 218,000,000 | 330,000,000 | 87,862,000 | 95,862,000 | 95,862,000 | 112,179,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross Carrying Amount - Finite-Lived Intangible Assets | 199,049,000 | ' | ' | ' | 388,372,000 | ' | ' | ' | ' | ' | ' | ' | 199,049,000 | 388,372,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,420,000 | 43,575,000 | 10,510,000 | 39,511,000 | 6,057,000 | 19,424,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Amortization | -29,226,000 | ' | ' | ' | -87,937,000 | ' | ' | ' | ' | ' | ' | ' | -29,226,000 | -87,937,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -14,379,000 | -32,596,000 | -9,492,000 | -37,381,000 | -5,355,000 | -17,960,000 | 0 | 0 | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-lived Intangible Assets, Period Increase (Decrease) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 69,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indefinte-lived Intangible Assets, Licenses and Accreditations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indefinite-Lived Intangible Assets, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 330,000,000 | 330,000,000 | 330,000,000 | 330,000,000 | 112,179,000 | 112,179,000 | 112,179,000 | 112,179,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indefinite-Lived Asset Impairment, Accumulated Impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -256,800,000 | -140,000,000 | -112,000,000 | 0 | -24,317,000 | -16,317,000 | -16,317,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -116,800,000 | -28,000,000 | -112,000,000 | ' | -8,000,000 | 0 | -16,317,000 | ' | ' | ' | ' | ' | ' | ' | -116,800,000 | -8,000,000 | -15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | -1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Inputs, Royalty Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | 1.50% | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of Intangible Assets, Finite-lived | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,343,000 | 6,841,000 | 7,640,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 5,434,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,434,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 2,936,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,936,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 340,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 340,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | $51,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $51,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Student_Receivables_Details
Student Receivables (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Tuition payment plan, length in months | '12 months | ' | ' |
Accounts Receivable, Net, Noncurrent | $29,300,000 | $24,300,000 | ' |
Net allowances | 32,183,000 | 27,851,000 | ' |
Student Receivables [Abstract] | ' | ' | ' |
Student Receivables, Gross | 415,061,000 | 433,392,000 | ' |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ' |
Beginning Balance | 208,248,000 | 250,282,000 | 199,357,000 |
Bad debt expense | 141,946,000 | 171,850,000 | 163,926,000 |
Amounts written off | -156,354,000 | -213,884,000 | -113,001,000 |
Ending Balance | 193,840,000 | 208,248,000 | 250,282,000 |
Private loans, aid awarded | 8,700,000 | 400,000 | ' |
Old policy [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Student receivables collection period | ' | '36 months | ' |
Existing policy [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Student receivables collection period | '42 months | ' | ' |
In-School Students [Member] | ' | ' | ' |
Student Receivables [Abstract] | ' | ' | ' |
Student Receivables, Gross | 236,144,000 | 194,062,000 | ' |
Out-of-School Students [Member] | ' | ' | ' |
Student Receivables [Abstract] | ' | ' | ' |
Student Receivables, Gross | 63,624,000 | 128,375,000 | ' |
Collections [Member] | ' | ' | ' |
Student Receivables [Abstract] | ' | ' | ' |
Student Receivables, Gross | $115,293,000 | $110,955,000 | ' |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Accrued Liabilities [Abstract] | ' | ' | ' |
Payroll and related taxes | $35,918,000 | $39,330,000 | ' |
Advertising | 25,597,000 | 33,010,000 | ' |
Benefits | 15,345,000 | 16,235,000 | ' |
Interest | 7,900,000 | 10,416,000 | ' |
Capital expenditures | 7,387,000 | 4,113,000 | ' |
Other | 75,135,000 | 54,313,000 | ' |
Total accrued liabilities | 167,282,000 | 157,417,000 | ' |
Restructuring and Related Activities [Abstract] | ' | ' | ' |
Restructuring charges | 26,952,000 | 13,920,000 | 14,133,000 |
Employee Severance [Member] | ' | ' | ' |
Restructuring and Related Activities [Abstract] | ' | ' | ' |
Restructuring charges | 21,141,000 | 11,877,000 | 11,633,000 |
Accrued Liabilities | 5,800,000 | ' | ' |
Lease Restructuring Charge [Member] | ' | ' | ' |
Restructuring and Related Activities [Abstract] | ' | ' | ' |
Restructuring charges | 5,811,000 | 2,043,000 | 2,500,000 |
Accrued Liabilities | 7,900,000 | ' | ' |
Restructuring Charges [Member] | ' | ' | ' |
Restructuring and Related Activities [Abstract] | ' | ' | ' |
Restructuring charges | 26,952,000 | 13,920,000 | 14,133,000 |
Accrued Liabilities | $13,700,000 | ' | ' |
ShortTerm_And_LongTerm_Debt_De
Short-Term And Long-Term Debt (Details) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2013 | Jun. 30, 2013 | Mar. 05, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 07, 2010 | Jun. 30, 2013 | Mar. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 05, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 05, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Letter of Credit [Member] | U.S. Department of Education [Member] | U.S. Department of Education [Member] | U.S. Department of Education [Member] | Revolving Credit Facility Due 2015 [Member] | Senior Notes Due 2014 [Member] | Senior Notes Due 2014 [Member] | Senior Notes Due 2014 [Member] | Senior Notes Due 2014 [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Senior Cash Pay/PIK [Member] | Senior Cash Pay/PIK [Member] | Senior Cash Pay/PIK [Member] | Senior Cash Pay/PIK [Member] | Senior Cash Pay/PIK [Member] | Senior Cash Pay/PIK [Member] | Other Long-term Debt [Member] | Other Long-term Debt [Member] | Minimum [Member] | Prime Rate [Member] | Affilitate of Sponsor, Goldman Sachs Capital Partners [Member] | Affilitate of Sponsor, Goldman Sachs Capital Partners [Member] | |||||
Revolving Credit Facility [Member] | Letter of Credit [Member] | Revolving Credit Facility [Member] | Rate | Affilitate of Sponsor, Leeds Equity Partners [Member] | Senior secured term loan due June 2013 [Member] | Senior Secured Term Loan Facility Due in June 2016 [Member] | Senior Secured Term Loan Facility Due in June 2016 [Member] | Senior Secured Term Loan Facility, Due in March 2018 [Member] | Senior Secured Term Loan Facility, Due in March 2018 [Member] | Senior Secured Term Loan Facility, Due in March 2018 [Member] | Rate | Senior cash pay/PIK notes | Senior cash pay/PIK notes | Revolving Credit Facility Due 2015 [Member] | New Notes [Member] | New Notes [Member] | ||||||||||||||||||||
Rate | Rate | Rate | Rate | Revolving Credit Facility [Member] | ||||||||||||||||||||||||||||||||
Short Term Debt [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of Credit Outstanding, Amount | ' | $307,600,000 | ' | ' | ' | ' | ' | $302,200,000 | $102,200,000 | $200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of Credit Oustanding, Percentage of Total Title IV Aid Received by Students | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letter of Credit, Collateralized, Number | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Collateral for Borrowed Securities | ' | 200,000,000 | ' | ' | ' | ' | 210,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Collateral for Borrowed Securities, Required Percentage of Aggregate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 105.00% | ' | ' | ' |
Short-term Debt | ' | ' | ' | ' | 219,900,000 | 75,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | 328,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Remaining Borrowing Capacity | ' | ' | ' | ' | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Interest Rate at Period End | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | 7.00% | 8.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | ' |
Line of Credit Facility, Commitment Fee Percentage | ' | ' | ' | ' | 0.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Excluding Current Maturities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-term debt | ' | 1,283,461,000 | 1,285,240,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 728,369,000 | 736,454,000 | 339,183,000 | 342,364,000 | ' | 215,909,000 | 206,242,000 | ' | ' | ' | ' | 0 | 180,000 | ' | ' | ' | ' |
Less current portion | ' | -11,875,000 | -12,076,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-term debt, less current portion | ' | 1,271,586,000 | 1,273,164,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturities of Long-term Debt [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | ' | 231,765,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Two | ' | 724,072,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Three | ' | 3,753,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Four | ' | 330,140,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Five | ' | 255,944,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt | ' | 1,545,674,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000,000 | ' | 348,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Other Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350,000,000 | ' | ' | ' | ' | ' | 203,000,000 | ' | ' | ' | ' | ' | ' |
Debt Instrument, Unamortized Discount (Premium), Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | 22,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalized discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,288,000 | 2,898,000 | ' | 17,700,000 | ' | ' | 22,335,000 | 27,712,000 | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Description of Variable Rate Basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.75% | ' | ' | ' | ' | ' | ' | ' | 1.25% | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate at Period End | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.25% | 4.31% | 8.25% | 8.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Debt | ' | 0 | 171,953,000 | 0 | ' | ' | ' | ' | ' | ' | ' | 172,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extinguishment of Debt, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 365,300,000 | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on debt refinancing | 5,200,000 | 0 | 5,232,000 | 9,474,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments of Financing Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,900,000 | $700,000 |
Debt Instrument, Original Issue Discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Instruments_Details
Derivative Instruments (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Apr. 30, 2011 | Jun. 30, 2014 | Jun. 30, 2014 |
Rate | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Swap, Interest Rate Swaps, Maturity Fiscal 2015 [Member] | Swap, Interest Rate Swaps, Maturity Fiscal 2013 [Member] | ||
Derivatives | Interest Rate Swap [Member] | Interest Rate Swap [Member] | ||||
Derivatives | ||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' |
debt instrument premium | 107.50% | ' | ' | ' | ' | ' |
Number of Interest Rate Derivatives Held | ' | ' | ' | 3 | 2 | ' |
Derivative, Notional Amount | ' | ' | $950 | ' | $312.50 | $325 |
Effective Percentage | ' | ' | ' | ' | 6.26% | 9.44% |
Net change in unrecognized loss on interest rate swaps, net of tax | -6.6 | -12.7 | ' | ' | ' | ' |
Estimated Net Transfer, Current | $7 | ' | ' | ' | ' | ' |
Fair_Value_Of_Financial_Instru2
Fair Value Of Financial Instruments (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
debt instrument premium | 107.50% | ' |
Reported Value Measurement [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Variable rate debt | $1,067,552 | $1,078,818 |
Fixed rate debt | 215,909 | 206,422 |
Reported Value Measurement [Member] | Accrued Liabilities [Member] | Interest Rate Swap [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Interest rate swap liabilities | 11,223 | ' |
Reported Value Measurement [Member] | Other Liabilities [Member] | Interest Rate Swap [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Interest rate swap liabilities | ' | 20,232 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Variable rate debt | 0 | 0 |
Fixed rate debt | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Accrued Liabilities [Member] | Interest Rate Swap [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Interest rate swap liabilities | 0 | ' |
Fair Value, Inputs, Level 1 [Member] | Other Liabilities [Member] | Interest Rate Swap [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Interest rate swap liabilities | ' | 0 |
Fair Value Measurement, Level 2 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Variable rate debt | 824,715 | 962,134 |
Fixed rate debt | 0 | 0 |
Fair Value Measurement, Level 2 [Member] | Accrued Liabilities [Member] | Interest Rate Swap [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Interest rate swap liabilities | 11,223 | ' |
Fair Value Measurement, Level 2 [Member] | Other Liabilities [Member] | Interest Rate Swap [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Interest rate swap liabilities | ' | 20,232 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Variable rate debt | 0 | 0 |
Fixed rate debt | 232,102 | 206,422 |
Fair Value, Inputs, Level 3 [Member] | Accrued Liabilities [Member] | Interest Rate Swap [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Interest rate swap liabilities | 0 | ' |
Fair Value, Inputs, Level 3 [Member] | Other Liabilities [Member] | Interest Rate Swap [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Interest rate swap liabilities | ' | $0 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Income Tax [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $800,000 | ' | ' |
Long-lived asset impairments (Notes 4 and 5) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 568,216,000 | 300,104,000 | 1,662,288,000 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Domestic | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -619,243,000 | -233,153,000 | -1,446,575,000 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,963,000 | 801,000 | 1,568,000 |
Loss before income taxes | -95,023,000 | -499,926,000 | -2,383,000 | -19,948,000 | -9,487,000 | -254,111,000 | 53,064,000 | -21,818,000 | -1,174,569,000 | -417,844,000 | 103,291,000 | 44,115,000 | -617,280,000 | -232,352,000 | -1,445,007,000 |
Current taxes: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,472,000 | 32,441,000 | 104,730,000 |
State and local | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,891,000 | -1,563,000 | 14,027,000 |
Total current tax provision | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,363,000 | 30,878,000 | 118,757,000 |
Deferred income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,274,000 | -18,840,000 | -130,194,000 |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46,637,000 | 12,038,000 | -11,437,000 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
State and local income taxes, net of federal benefit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -10,708,000 | -196,000 | -6,741,000 |
U.S. federal statutory income tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -216,048,000 | -81,323,000 | -505,752,000 |
Increase in valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 127,738,000 | 151,000 | 3,069,000 |
State tax settlements, net of federal benefit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -3,808,000 | 0 |
Permanent items | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,880,000 | 2,913,000 | 1,477,000 |
Nondeductible goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 151,812,000 | 94,805,000 | 497,991,000 |
Uncertain tax positions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,956,000 | -490,000 | -602,000 |
Other items, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5,081,000 | -14,000 | -879,000 |
Current deferred tax assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for doubtful accounts | 71,689,000 | ' | ' | ' | 71,769,000 | ' | ' | ' | ' | ' | ' | ' | 71,689,000 | 71,769,000 | ' |
Accrued wages | 3,481,000 | ' | ' | ' | 6,872,000 | ' | ' | ' | ' | ' | ' | ' | 3,481,000 | 6,872,000 | ' |
Deferred Tax Assets, Tax Deferred Expense, Other | 9,069,000 | ' | ' | ' | 3,434,000 | ' | ' | ' | ' | ' | ' | ' | 9,069,000 | 3,434,000 | ' |
Gross current deferred tax assets | 89,126,000 | ' | ' | ' | 82,075,000 | ' | ' | ' | ' | ' | ' | ' | 89,126,000 | 82,075,000 | ' |
Less valuation allowance | -64,624,000 | ' | ' | ' | -5,148,000 | ' | ' | ' | ' | ' | ' | ' | -64,624,000 | -5,148,000 | ' |
Total current deferred tax assets | 24,502,000 | ' | ' | ' | 76,927,000 | ' | ' | ' | ' | ' | ' | ' | 24,502,000 | 76,927,000 | ' |
Noncurrent deferred tax assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred liabilities | 30,045,000 | ' | ' | ' | 35,683,000 | ' | ' | ' | ' | ' | ' | ' | 30,045,000 | 35,683,000 | ' |
Foreign and state net operating losses | 12,834,000 | ' | ' | ' | 7,990,000 | ' | ' | ' | ' | ' | ' | ' | 12,834,000 | 7,990,000 | ' |
Property and equipment | 7,847,000 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | 7,847,000 | 0 | ' |
Share-based compensation | 25,493,000 | ' | ' | ' | 24,023,000 | ' | ' | ' | ' | ' | ' | ' | 25,493,000 | 24,023,000 | ' |
Other | 35,910,000 | ' | ' | ' | 26,981,000 | ' | ' | ' | ' | ' | ' | ' | 35,910,000 | 26,981,000 | ' |
Gross noncurrent deferred tax assets | 112,129,000 | ' | ' | ' | 103,496,000 | ' | ' | ' | ' | ' | ' | ' | 112,129,000 | 103,496,000 | ' |
Less valuation allowance | -87,639,000 | ' | ' | ' | -19,677,000 | ' | ' | ' | ' | ' | ' | ' | -87,639,000 | -19,677,000 | ' |
Total noncurrent deferred tax assets | 24,490,000 | ' | ' | ' | 83,819,000 | ' | ' | ' | ' | ' | ' | ' | 24,490,000 | 83,819,000 | ' |
Noncurrent deferred tax liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets | 82,569,000 | ' | ' | ' | 130,491,000 | ' | ' | ' | ' | ' | ' | ' | 82,569,000 | 130,491,000 | ' |
Property and equipment | 0 | ' | ' | ' | 25,657,000 | ' | ' | ' | ' | ' | ' | ' | 0 | 25,657,000 | ' |
Other | 498,000 | ' | ' | ' | 293,000 | ' | ' | ' | ' | ' | ' | ' | 498,000 | 293,000 | ' |
Total noncurrent deferred tax liabilities | 83,067,000 | ' | ' | ' | 156,441,000 | ' | ' | ' | ' | ' | ' | ' | 83,067,000 | 156,441,000 | ' |
Total net noncurrent deferred tax liabilities | 58,577,000 | ' | ' | ' | 72,622,000 | ' | ' | ' | ' | ' | ' | ' | 58,577,000 | 72,622,000 | ' |
Goodwill, Impairment Loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 433,747,000 | 270,874,000 | 1,533,972,000 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefits, beginning of year | ' | ' | ' | 3,962,000 | ' | ' | ' | 4,523,000 | ' | ' | ' | 5,438,000 | 3,962,000 | 4,523,000 | 5,438,000 |
(Decrease) in prior year unrecognized tax benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -93,000 |
Increase in current year unrecognized tax benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 127,000 | 58,000 |
(Decrease) in unrecognized tax benefits due to the expiration of statutes of limitation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,926,000 | -688,000 | -880,000 |
Unrecognized tax benefits, end of year | 1,036,000 | ' | ' | ' | 3,962,000 | ' | ' | ' | 4,523,000 | ' | ' | ' | 1,036,000 | 3,962,000 | 4,523,000 |
Unrecognized Tax Benefits Increase Resulting from Change in Law | ' | 3,300,000 | ' | 3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
State and Local Jurisdiction [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current deferred tax assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less valuation allowance | -12,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -12,600,000 | ' | ' |
Noncurrent deferred tax liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Loss Carryforwards | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' |
Deferred Tax Assets, Operating Loss Carryforwards | 12,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,800,000 | ' | ' |
Operating Loss Carryforwards, Valuation Allowance | 245,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 245,200,000 | ' | ' |
Deferred Tax Asset Current [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current deferred tax assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate swap | 4,887,000 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | 4,887,000 | 0 | ' |
Deferred Tax Asset Noncurrent [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current deferred tax assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate swap | 0 | ' | ' | ' | 8,819,000 | ' | ' | ' | ' | ' | ' | ' | 0 | 8,819,000 | ' |
The Art Institutes [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncurrent deferred tax liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill, Impairment Loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $433,747,000 | $270,874,000 | $1,063,088,000 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 13, 2012 | Oct. 31, 2009 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 13, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Sep. 13, 2012 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2012 | |||
Rate | Rate | Rate | Time-based shares [Member] | Time-based shares [Member] | Time-based shares [Member] | Time-based shares [Member] | Restricted Stock Units (RSUs) [Member] | Performance-based options [Member] | Performance-based options [Member] | 2012 Omnibus Plan [Member] | 2012 Omnibus Plan [Member] | Long-Term Incentive Compensation Plan [Member] | Common Stock | Common Stock | Common Stock | Treasury Stock, at cost | Treasury Stock, at cost | |||||
Rate | Rate | Rate | Common Stock | Common Stock | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | ' | ' | 10,700,000 | 10,989,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 367,000 | ' | ' | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | ' | ' | $4.81 | $4.06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,072,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Shares authorized for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ||
Common Stock shares reserved for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,700,000 | ' | ' | ' | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Fair value per unit | ' | ' | ' | ' | ' | ' | $7.66 | $2.76 | $9.29 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Exercise price | $3.59 | ' | $12.74 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Expected dividend yield | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Expected volatility | ' | ' | ' | ' | ' | ' | 64.00% | 78.60% | 45.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Risk free interest rate | ' | ' | ' | ' | ' | ' | 1.90% | 1.20% | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Expected term (yrs) | ' | ' | ' | ' | ' | ' | '6 years 3 months | '7 years 6 months | '6 years 3 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Unrecognized Compensation Expense | ' | ' | $29,795,000 | ' | ' | ' | $19,149,000 | ' | ' | $8,627,000 | ' | $2,019,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Weighted Average Exercise Price / Share Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.04 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Share Based Compensation Arrangement by Share Based Payment Award, Fair Value Assumptions, Expected Forfeitures | ' | ' | 12.90% | 0.00% | 7.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Award Vesting Period | ' | ' | ' | ' | ' | ' | '4 years | '4 years | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Share-based Compensation | ' | ' | 16,419,000 | 17,112,000 | 13,290,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,716,419 | 123,717 | 234,226 | ' | ' | ||
Stock Issued During Period, Shares, New Issues | ' | 23,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Gross excess tax benefit from share-based compensation | ' | ' | 3,417,000 | 0 | 263,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Issuance of common stock as a result of stock-option exercises | ' | ' | 2,968,000 | 3,000 | 2,355,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Exercise of stock-options including net excess tax benefit | ' | ' | ' | ' | 2,597,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000 | [1] | ' | 0 | [1] |
Shares Paid for Tax Withholding for Share Based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 274,644 | ' | ' | -274,644 | ' | ||
Options (in thousands) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding at June 30, 2013 | ' | ' | 10,989,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 367,000 | ' | ' | ' | ' | ' | ||
Granted | ' | ' | 1,534,000 | ' | ' | 6,300,000 | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Forfeited | ' | ' | -911,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Exercised | ' | ' | -753,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Expired | ' | ' | -159,000 | ' | ' | -8,500,000 | ' | ' | ' | ' | -3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding at June 30, 2014 | ' | ' | 10,700,000 | 10,989,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 367,000 | ' | ' | ' | ' | ' | ||
Exercisable at June 30, 2014 | ' | ' | 4,498,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding at June 30, 2013 | ' | ' | $4.06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Granted | $3.59 | ' | $12.74 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Forfeited | ' | ' | $5.54 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Exercised | ' | ' | $3.58 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Expired | ' | ' | $3.57 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding at June 30, 2014 | ' | ' | $4.81 | $4.06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Exercisable at June 30, 2014 | ' | ' | $3.61 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Other Disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding at June 30, 2013 | ' | ' | '6 years 11 months | '7 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding at June 30, 2014 | ' | ' | '6 years 11 months | '7 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Exercisable at June 30, 2014 | ' | ' | '4 years 8 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding at June 30, 2013 | ' | ' | 17,120,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding at June 30, 2014 | ' | ' | ' | 17,120,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Exercisable at June 30, 2014 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
RSUs (in thousands) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding at June 30, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,020,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | 668,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | -968,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Forfeited | ' | ' | ' | ' | ' | ' | ' | ' | ' | -648,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding at June 30, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,072,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Weighted Average Share Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding at June 30, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.47 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12.74 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.64 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Forfeited | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.45 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding at June 30, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.04 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Share based comp arrangements,equity instruments other than options, forfeiture rate | ' | ' | 15.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Expected Dividend | ' | ' | 3.59 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | ' | ' | ' | ' | ' | 2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
performance-based options outstanding | ' | ' | 920,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Payments Related to Tax Withholding for Share-based Compensation | ' | ' | 3,272,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
LTIC Options Authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ||
Unrecognized Compensation Expense in LTIC | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000,000 | ' | ' | ' | ' | ' | ||
[1] | There were 600,000,000 authorized shares of $0.01 par value common stock at June 30, 2014 and 2013. Common stock outstanding and treasury stock balances and activity were as follows for the periods indicated: Treasury Shares Net Shares OutstandingJune 30, 201113,333,972 129,811,749Repurchased for treasury5,568,168 (5,568,168)Issued for stock-based compensation plans— 234,226June 30, 201218,902,140 124,477,807Issued for stock-based compensation plans— 123,717June 30, 201318,902,140 124,601,524Issued for stock-based compensation plans— 1,716,419Minimum tax withholding requirements for restricted stock units274,644 (274,644)June 30, 201419,176,784 126,043,299 |
Other_Employee_Benefit_Plans_D
Other Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ' | ' | ' |
Defined Contribution Plan, Cost Recognized | $26 | $27.10 | $28.50 |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 6.00% | ' | ' |
Commitments_And_Contingencies_1
Commitments And Contingencies (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||
Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Oct. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2010 | Oct. 31, 2010 | Dec. 31, 2013 | Aug. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Students | Qui Tam Matters [Member] | Qui Tam Matters [Member] | Attorney General of the Commonwealth of Kentucky [Member] | Florida Attorney General [Member] | AU Seattle APA Program Accreditation Lawsuit [Member] | AU Seattle APA Program Accreditation Lawsuit [Member] | Student housing [Member] | Student housing [Member] | Student housing [Member] | Surety Bond [Member] | The Art Institutes [Member] | Restricted cash [Member] | |||||
Plantiffs | Pending Litigation [Member] | Threatened Litigation [Member] | Threatened Litigation [Member] | Threatened Litigation [Member] | Threatened Litigation [Member] | Campuses | |||||||||||
Subpoenas | Education_Systems | Plantiffs | Plantiffs | ||||||||||||||
Education_Systems | |||||||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Commitment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $19,300,000 | ' | ' |
Loss Contingency, Number of Plaintiffs | ' | ' | ' | ' | ' | 5 | ' | ' | ' | 9 | 20 | ' | ' | ' | ' | ' | ' |
Operating Leases, Rent Expense | ' | 215,900,000 | 202,300,000 | 191,800,000 | ' | ' | ' | ' | ' | ' | ' | 50,100,000 | 47,900,000 | 51,400,000 | ' | ' | ' |
Represents the number of states which inquiries are made | 14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of students | ' | ' | ' | ' | 125,560 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Art Institute schools | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51 | ' |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | ' | 184,954,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Leases, Future Minimum Payments, Due in Two Years | ' | 149,890,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Leases, Future Minimum Payments, Due in Three Years | ' | 142,686,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Leases, Future Minimum Payments, Due in Four Years | ' | 125,514,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Leases, Future Minimum Payments, Due in Five Years | ' | 110,384,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Leases, Future Minimum Payments, Due Thereafter | ' | 303,765,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Damages Sought, Value | ' | ' | ' | ' | ' | ' | 11,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Number of Locations Impacted | ' | ' | ' | ' | ' | ' | ' | 3 | 9 | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Number of Schools Impacted by Subpoena | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Surety bonds | ' | $7,275,000 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,300,000 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Related Party Transaction [Line Items] | ' | ' | ' |
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | 5.2 | ' | ' |
John T. South [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Related Party, Long-term Lease Agreements | 2 | ' | ' |
Related Party Transaction, Transactions with Officers or Stockholders | 1 | ' | ' |
Related Party Transaction, Transactions with Related Party, Amounts Paid | ' | 0.5 | 2.1 |
Related Party Transaction, Amounts of Transaction | ' | 0.8 | ' |
Affiliate of Sponsor, Campus Management Corporation [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Related Party Transaction, Transactions with Related Party, Amounts Paid | 2.8 | 3.2 | 2.1 |
Affiliate of Sponsor, People Scout, Inc DBA Student Scout [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Related Party Transaction, Servicing Fees, Amount Paid | 0.9 | 1.8 | 3 |
Affiliate of Sponsor, Ex Libris [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Related Party Transaction, Servicing Fees, Amount Paid | ' | ' | 0.3 |
Affiliate of Sponsor, CDW Corporation and Affiliates [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Related Party Transaction, Transactions with Other Related Parties | 1 | ' | ' |
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | 4.4 | 0.7 | 0.3 |
Affiliate of Sponsor, Assessment Technologies Instiute, LLC [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | 0.8 | 0.7 | 0.5 |
Affiliate of Sponsor, Kroll Ontrack [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | ' | 0.5 | 0.4 |
Affilitate of Sponsor, USSA Security Services [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | ' | 1.4 | 2.7 |
Affiliate of Sponsor, number [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Related Party Transaction, Transactions with Other Related Parties | 2 | ' | ' |
Interest Rate Swap [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Derivative, Notional Amount | 950 | ' | ' |
Swap, Interest Rate Swaps, Maturity Fiscal 2015 [Member] | Interest Rate Swap [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Derivative, Notional Amount | 312.5 | ' | ' |
Affilitate of Sponsor, Goldman Sachs Capital Partners [Member] | New Notes [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Payments of Financing Costs | ' | $2.90 | $0.70 |
Guarantor_Subsidiaries_Financi2
Guarantor Subsidiaries Financial Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Jun. 01, 2006 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 |
EM LLC [Member] | EM LLC [Member] | EM LLC [Member] | EM LLC [Member] | EM LLC [Member] | EM LLC [Member] | Guarantor Subsidiaries [Member] | Guarantor Subsidiaries [Member] | Guarantor Subsidiaries [Member] | Guarantor Subsidiaries [Member] | Guarantor Subsidiaries [Member] | Guarantor Subsidiaries [Member] | Non-Guarantor Subsidiaries [Member] | Non-Guarantor Subsidiaries [Member] | Non-Guarantor Subsidiaries [Member] | Non-Guarantor Subsidiaries [Member] | Non-Guarantor Subsidiaries [Member] | Non-Guarantor Subsidiaries [Member] | Eliminations [Member] | Eliminations [Member] | Eliminations [Member] | EM LLC Consolidated [Member] | EM LLC Consolidated [Member] | EM LLC Consolidated [Member] | EM LLC Consolidated [Member] | EM LLC Consolidated [Member] | EM LLC Consolidated [Member] | EDMC [Member] | EDMC [Member] | EDMC [Member] | EDMC [Member] | EDMC [Member] | Consolidation, Eliminations [Member] | Consolidation, Eliminations [Member] | Consolidation, Eliminations [Member] | Consolidated Entities [Member] | Consolidated Entities [Member] | Consolidated Entities [Member] | Consolidated Entities [Member] | Consolidated Entities [Member] | Consolidated Entities [Member] | |||||||||||||||||||
Balance Sheet | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $270,567 | ' | ' | ' | $130,695 | ' | ' | ' | $191,008 | ' | ' | ' | ' | $270,567 | $130,695 | $191,008 | $403,224 | ' | ' | ' | ($14,680) | ($10,777) | ($26,249) | ($16,816) | ' | ' | $83 | $139 | $98 | $270 | ' | ' | $234,478 | $141,110 | $213,960 | $369,637 | $0 | $0 | ' | ' | ' | $219,881 | $130,472 | $187,809 | $353,091 | ' | $50,686 | $223 | $3,199 | $50,133 | $0 | $0 | ' | ' | ' | $270,567 | $130,695 | $191,008 | $403,224 |
Restricted cash | 271,681 | ' | ' | ' | 271,340 | ' | ' | ' | ' | ' | ' | ' | ' | 271,681 | 271,340 | ' | ' | ' | ' | ' | 42,916 | 46,982 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 221,490 | 224,358 | ' | ' | 0 | 0 | ' | ' | ' | 264,406 | 271,340 | ' | ' | ' | 7,275 | 0 | ' | ' | 0 | 0 | ' | ' | ' | 271,681 | 271,340 | ' | ' |
Student and other receivables, net | 210,182 | ' | ' | ' | 206,406 | ' | ' | ' | ' | ' | ' | ' | ' | 210,182 | 206,406 | ' | ' | ' | ' | ' | 442 | 134 | ' | ' | ' | ' | 144 | 253 | ' | ' | ' | ' | 267,504 | 238,565 | ' | ' | 0 | 0 | ' | ' | ' | 268,090 | 238,952 | ' | ' | ' | 0 | 1 | ' | ' | 0 | 0 | ' | ' | ' | 268,090 | 238,953 | ' | ' |
Other current assets | 35,843 | ' | ' | ' | 32,850 | ' | ' | ' | ' | ' | ' | ' | ' | 35,843 | 32,850 | ' | ' | ' | ' | ' | 30,049 | 27,488 | ' | ' | ' | ' | 888 | 570 | ' | ' | ' | ' | 34,691 | 102,573 | ' | ' | 0 | 0 | ' | ' | ' | 65,628 | 130,631 | ' | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | ' | 65,628 | 130,631 | ' | ' |
Total current assets | 875,966 | ' | ' | ' | 771,619 | ' | ' | ' | ' | ' | ' | ' | ' | 875,966 | 771,619 | ' | ' | ' | ' | ' | 58,727 | 63,827 | ' | ' | ' | ' | 1,115 | 962 | ' | ' | ' | ' | 758,163 | 706,606 | ' | ' | 0 | 0 | ' | ' | ' | 818,005 | 771,395 | ' | ' | ' | 57,961 | 224 | ' | ' | 0 | 0 | ' | ' | ' | 875,966 | 771,619 | ' | ' |
Property and equipment, net | 429,457 | ' | ' | ' | 525,625 | ' | ' | ' | ' | ' | ' | ' | ' | 429,457 | 525,625 | ' | ' | ' | ' | ' | 66,901 | 65,018 | ' | ' | ' | ' | 5,804 | 5,984 | ' | ' | ' | ' | 356,752 | 454,623 | ' | ' | 0 | 0 | ' | ' | ' | 429,457 | 525,625 | ' | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | ' | 429,457 | 525,625 | ' | ' |
Goodwill | 343,406 | ' | ' | ' | 777,153 | ' | ' | ' | 1,048,027 | ' | ' | ' | ' | 343,406 | 777,153 | 1,048,027 | 2,581,999 | 2,600,000 | ' | ' | 7,328 | 7,328 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 336,078 | 769,825 | ' | ' | 0 | 0 | ' | ' | ' | 343,406 | 777,153 | ' | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | ' | 343,406 | 777,153 | ' | ' |
Intangible assets, net (Note 5) | 169,823 | ' | ' | ' | 300,435 | ' | ' | ' | ' | ' | ' | ' | ' | 169,823 | 300,435 | ' | ' | ' | ' | ' | 901 | 1,101 | ' | ' | ' | ' | 19 | 28 | ' | ' | ' | ' | 168,903 | 299,306 | ' | ' | 0 | 0 | ' | ' | ' | 169,823 | 300,435 | ' | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | ' | 169,823 | 300,435 | ' | ' |
Other long-term assets | 58,384 | ' | ' | ' | 48,524 | ' | ' | ' | ' | ' | ' | ' | ' | 58,384 | 48,524 | ' | ' | ' | ' | ' | 25,314 | 5,059 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 33,070 | 43,465 | ' | ' | 0 | 0 | ' | ' | ' | 58,384 | 48,524 | ' | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | ' | 58,384 | 48,524 | ' | ' |
Intercompany balances | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 668,366 | 653,504 | ' | ' | ' | ' | -34,161 | -31,016 | ' | ' | ' | ' | -761,313 | -791,213 | ' | ' | 0 | 0 | ' | ' | ' | -127,108 | -168,725 | ' | ' | ' | 127,108 | 168,725 | ' | ' | 0 | 0 | ' | ' | ' | 0 | 0 | ' | ' |
Investments in subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 356,375 | 846,826 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 0 | 0 | ' | ' | -356,375 | -846,826 | ' | ' | ' | 0 | 0 | ' | ' | ' | -471,203 | 187,289 | ' | ' | 471,203 | -187,289 | ' | ' | ' | 0 | 0 | ' | ' |
Total assets | 1,877,036 | ' | ' | ' | 2,423,356 | ' | ' | ' | ' | ' | ' | ' | ' | 1,877,036 | 2,423,356 | ' | ' | ' | ' | ' | 1,183,912 | 1,642,663 | ' | ' | ' | ' | -27,223 | -24,042 | ' | ' | ' | ' | 891,653 | 1,482,612 | ' | ' | -356,375 | -846,826 | ' | ' | ' | 1,691,967 | 2,254,407 | ' | ' | ' | -286,134 | 356,238 | ' | ' | 471,203 | -187,289 | ' | ' | ' | 1,877,036 | 2,423,356 | ' | ' |
Current portion of long-term debt (Note 8) | 11,875 | ' | ' | ' | 12,076 | ' | ' | ' | ' | ' | ' | ' | ' | 11,875 | 12,076 | ' | ' | ' | ' | ' | 231,765 | 86,850 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 0 | 226 | ' | ' | 0 | 0 | ' | ' | ' | 231,765 | 87,076 | ' | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | ' | 231,765 | 87,076 | ' | ' |
Other current liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 129,892 | 51,558 | ' | ' | ' | ' | 2,913 | 3,018 | ' | ' | ' | ' | 270,755 | 344,397 | ' | ' | 0 | 0 | ' | ' | ' | 403,560 | 398,973 | ' | ' | ' | 0 | 49 | ' | ' | 0 | 0 | ' | ' | ' | 403,560 | 399,022 | ' | ' |
Long-term Debt | 1,545,674 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,545,674 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total current liabilities | 635,325 | ' | ' | ' | 486,098 | ' | ' | ' | ' | ' | ' | ' | ' | 635,325 | 486,098 | ' | ' | ' | ' | ' | 361,657 | 138,408 | ' | ' | ' | ' | 2,913 | 3,018 | ' | ' | ' | ' | 270,755 | 344,623 | ' | ' | 0 | 0 | ' | ' | ' | 635,325 | 486,049 | ' | ' | ' | 0 | 49 | ' | ' | 0 | 0 | ' | ' | ' | 635,325 | 486,098 | ' | ' |
Long-term debt, less current portion (Note 8) | 1,271,586 | ' | ' | ' | 1,273,164 | ' | ' | ' | ' | ' | ' | ' | ' | 1,271,586 | 1,273,164 | ' | ' | ' | ' | ' | 1,271,586 | 1,273,214 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | ' | 1,271,586 | 1,273,214 | ' | ' | ' | 0 | -50 | ' | ' | 0 | 0 | ' | ' | ' | 1,271,586 | 1,273,164 | ' | ' |
Other long-term liabilities | 10,626 | ' | ' | ' | 34,414 | ' | ' | ' | ' | ' | ' | ' | ' | 10,626 | 34,414 | ' | ' | ' | ' | ' | 21,695 | 41,519 | ' | ' | ' | ' | 119 | 248 | ' | ' | ' | ' | 174,607 | 193,849 | ' | ' | 0 | 0 | ' | ' | ' | 196,421 | 235,616 | ' | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | ' | 196,421 | 235,616 | ' | ' |
Deferred income taxes | 83,067 | ' | ' | ' | 156,441 | ' | ' | ' | ' | ' | ' | ' | ' | 83,067 | 156,441 | ' | ' | ' | ' | ' | 177 | 2,233 | ' | ' | ' | ' | 120 | 399 | ' | ' | ' | ' | 59,541 | 69,607 | ' | ' | 0 | 0 | ' | ' | ' | 59,838 | 72,239 | ' | ' | ' | -1,261 | 383 | ' | ' | 0 | 0 | ' | ' | ' | 58,577 | 72,622 | ' | ' |
Total liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,655,115 | 1,455,374 | ' | ' | ' | ' | 3,152 | 3,665 | ' | ' | ' | ' | 504,903 | 608,079 | ' | ' | 0 | 0 | ' | ' | ' | 2,163,170 | 2,067,118 | ' | ' | ' | -1,261 | 382 | ' | ' | 0 | 0 | ' | ' | ' | 2,161,909 | 2,067,500 | ' | ' |
Total shareholders' equity | -284,873 | ' | ' | ' | 355,856 | ' | ' | ' | 578,735 | ' | ' | ' | ' | -284,873 | 355,856 | 578,735 | 2,103,944 | ' | ' | ' | -471,203 | 187,289 | ' | ' | ' | ' | -30,375 | -27,707 | ' | ' | ' | ' | 386,750 | 874,533 | ' | ' | -356,375 | -846,826 | ' | ' | ' | -471,203 | 187,289 | ' | ' | ' | -284,873 | 355,856 | ' | ' | 471,203 | -187,289 | ' | ' | ' | -284,873 | 355,856 | ' | ' |
Total liabilities and shareholders’ (deficit) equity | 1,877,036 | ' | ' | ' | 2,423,356 | ' | ' | ' | ' | ' | ' | ' | ' | 1,877,036 | 2,423,356 | ' | ' | ' | ' | ' | 1,183,912 | 1,642,663 | ' | ' | ' | ' | -27,223 | -24,042 | ' | ' | ' | ' | 891,653 | 1,482,612 | ' | ' | -356,375 | -846,826 | ' | ' | ' | 1,691,967 | 2,254,407 | ' | ' | ' | -286,134 | 356,238 | ' | ' | 471,203 | -187,289 | ' | ' | ' | 1,877,036 | 2,423,356 | ' | ' |
Income Statement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | 503,481 | 595,202 | 593,673 | 580,380 | 595,236 | 638,903 | 654,895 | 609,565 | 639,185 | 702,499 | 737,188 | 682,095 | ' | 2,272,736 | 2,498,599 | 2,760,967 | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | 7,684 | 8,392 | 9,000 | ' | ' | ' | 2,265,052 | 2,490,207 | 2,751,967 | ' | 0 | 0 | 0 | ' | ' | 2,272,736 | 2,498,599 | 2,760,967 | ' | ' | 0 | 0 | 0 | ' | 0 | 0 | 0 | ' | ' | 2,272,736 | 2,498,599 | 2,760,967 | ' |
Educational services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,373,699 | 1,447,097 | 1,502,356 | ' | ' | ' | ' | 65,655 | 116,094 | 93,322 | ' | ' | ' | 10,285 | 9,287 | 10,554 | ' | ' | ' | 1,297,758 | 1,321,716 | 1,398,480 | ' | 0 | 0 | 0 | ' | ' | 1,373,698 | 1,447,097 | 1,502,356 | ' | ' | 1 | 0 | 0 | ' | 0 | 0 | 0 | ' | ' | 1,373,699 | 1,447,097 | 1,502,356 | ' |
General and administrative | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 667,567 | 689,143 | 762,863 | ' | ' | ' | ' | -61,141 | -101,570 | -82,634 | ' | ' | ' | -751 | -545 | -352 | ' | ' | ' | 729,459 | 791,258 | 845,573 | ' | 0 | 0 | 0 | ' | ' | 667,567 | 689,143 | 762,587 | ' | ' | 0 | 0 | 276 | ' | 0 | 0 | 0 | ' | ' | 667,567 | 689,143 | 762,863 | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 152,501 | 164,712 | 158,663 | ' | ' | ' | ' | 28,744 | 32,552 | 26,637 | ' | ' | ' | 631 | 605 | 500 | ' | ' | ' | 123,126 | 131,555 | 131,526 | ' | 0 | 0 | 0 | ' | ' | 152,501 | 164,712 | 158,663 | ' | ' | 0 | 0 | 0 | ' | 0 | 0 | 0 | ' | ' | 152,501 | 164,712 | 158,663 | ' |
Long-lived asset impairments (Notes 4 and 5) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 568,216 | 300,104 | 1,662,288 | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | 568,216 | 300,104 | 1,662,288 | ' | ' | ' | ' | ' | ' | 568,216 | 300,104 | 1,662,288 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 568,216 | 300,104 | 1,662,288 | ' |
Total costs and expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,761,983 | 2,601,056 | 4,086,170 | ' | ' | ' | ' | 33,258 | 47,076 | 37,325 | ' | ' | ' | 10,165 | 9,347 | 10,702 | ' | ' | ' | 2,718,559 | 2,544,633 | 4,037,867 | ' | 0 | 0 | 0 | ' | ' | 2,761,982 | 2,601,056 | 4,085,894 | ' | ' | 1 | 0 | 276 | ' | 0 | 0 | 0 | ' | ' | 2,761,983 | 2,601,056 | 4,086,170 | ' |
Income (loss) before interest and income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -489,247 | -102,457 | -1,325,203 | ' | ' | ' | ' | -33,258 | -47,076 | -37,325 | ' | ' | ' | -2,481 | -955 | -1,702 | ' | ' | ' | -453,507 | -54,426 | -1,285,900 | ' | 0 | 0 | 0 | ' | ' | -489,246 | -102,457 | -1,324,927 | ' | ' | -1 | 0 | -276 | ' | 0 | 0 | 0 | ' | ' | -489,247 | -102,457 | -1,325,203 | ' |
Net interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 128,033 | 124,663 | 110,330 | ' | ' | ' | ' | 128,650 | 122,297 | 107,772 | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | -609 | 2,387 | 2,565 | ' | 0 | 0 | 0 | ' | ' | 128,041 | 124,684 | 110,337 | ' | ' | -8 | -21 | -7 | ' | 0 | 0 | 0 | ' | ' | 128,033 | 124,663 | 110,330 | ' |
Loss on debt refinancing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,200 | 0 | 5,232 | 9,474 | ' | ' | ' | ' | ' | 5,232 | 9,474 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | ' | 5,232 | 9,474 | ' | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | ' | 5,232 | 9,474 | ' |
Income (Loss) from Equity Method Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -489,781 | -61,469 | -1,280,207 | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | 0 | 0 | 0 | ' | 489,781 | 61,469 | 1,280,207 | ' | ' | 0 | 0 | 0 | ' | ' | -663,921 | -244,020 | -1,433,398 | ' | 663,921 | 244,020 | 1,433,398 | ' | ' | 0 | 0 | 0 | ' |
Loss before income taxes | -95,023 | -499,926 | -2,383 | -19,948 | -9,487 | -254,111 | 53,064 | -21,818 | -1,174,569 | -417,844 | 103,291 | 44,115 | ' | -617,280 | -232,352 | -1,445,007 | ' | ' | ' | ' | -651,689 | -236,074 | -1,434,778 | ' | ' | ' | -2,481 | -955 | -1,702 | ' | ' | ' | -452,898 | -56,813 | -1,288,465 | ' | 489,781 | 61,469 | 1,280,207 | ' | ' | -617,287 | -232,373 | -1,444,738 | ' | ' | -663,914 | -243,999 | -1,433,667 | ' | 663,921 | 244,020 | 1,433,398 | ' | ' | -617,280 | -232,352 | -1,445,007 | ' |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46,637 | 12,038 | -11,437 | ' | ' | ' | ' | 12,232 | 7,946 | -1,380 | ' | ' | ' | 187 | 43 | -15 | ' | ' | ' | 34,215 | 3,658 | -9,945 | ' | 0 | 0 | 0 | ' | ' | 46,634 | 11,647 | -11,340 | ' | ' | 3 | 391 | -97 | ' | 0 | 0 | 0 | ' | ' | 46,637 | 12,038 | -11,437 | ' |
Net (loss) income | -187,846 | -467,646 | 1,089 | -9,514 | -2,035 | -260,408 | 31,144 | -13,091 | -1,128,725 | -394,926 | 63,127 | 26,954 | ' | -663,917 | -244,390 | -1,433,570 | ' | ' | ' | ' | -663,921 | -244,020 | -1,433,398 | ' | ' | ' | -2,668 | -998 | -1,687 | ' | ' | ' | -487,113 | -60,471 | -1,278,520 | ' | 489,781 | 61,469 | 1,280,207 | ' | ' | -663,921 | -244,020 | -1,433,398 | ' | ' | -663,917 | -244,390 | -1,433,570 | ' | 663,921 | 244,020 | 1,433,398 | ' | ' | -663,917 | -244,390 | -1,433,570 | ' |
Net change in unrecognized loss on interest rate swaps, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,799 | -2,619 | -13,646 | ' | ' | ' | ' | 6,099 | 4,923 | -5,189 | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | 0 | 0 | 0 | ' | 0 | 0 | 0 | ' | ' | 6,099 | 4,923 | -5,189 | ' | ' | 6,099 | 4,923 | -5,189 | ' | -6,099 | -4,923 | 5,189 | ' | ' | 6,099 | 4,923 | -5,189 | ' |
Foreign currency translation loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -670 | -527 | -658 | ' | ' | ' | ' | -670 | -527 | -658 | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | -670 | -527 | -658 | ' | 670 | 527 | 658 | ' | ' | -670 | -527 | -658 | ' | ' | -670 | -527 | -658 | ' | 670 | 527 | 658 | ' | ' | -670 | -527 | -658 | ' |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,429 | 4,396 | -5,847 | ' | ' | ' | ' | 5,429 | 4,396 | -5,847 | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | -670 | -527 | -658 | ' | 670 | 527 | 658 | ' | ' | 5,429 | 4,396 | -5,847 | ' | ' | 5,429 | 4,396 | -5,847 | ' | -5,429 | -4,396 | 5,847 | ' | ' | 5,429 | 4,396 | -5,847 | ' |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -658,488 | -239,994 | -1,439,417 | ' | ' | ' | ' | -658,492 | -239,624 | -1,439,245 | ' | ' | ' | -2,668 | -998 | -1,687 | ' | ' | ' | -487,783 | -60,998 | -1,279,178 | ' | 490,451 | 61,996 | 1,280,865 | ' | ' | -658,492 | -239,624 | -1,439,245 | ' | ' | -658,488 | -239,994 | -1,439,417 | ' | 658,492 | 239,624 | 1,439,245 | ' | ' | -658,488 | -239,994 | -1,439,417 | ' |
Statement of Cash Flows [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash provided by (used in) operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70,646 | 191,307 | -10,850 | ' | ' | ' | ' | -105,944 | -168,316 | -35,071 | ' | ' | ' | -2,505 | -5,632 | 4,015 | ' | ' | ' | 179,091 | 365,231 | 17,140 | ' | ' | ' | ' | ' | ' | 70,642 | 191,283 | -13,916 | ' | ' | 4 | 24 | 3,066 | ' | ' | ' | ' | ' | ' | 70,646 | 191,307 | -10,850 | ' |
Expenditures for long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -73,760 | -83,241 | -93,546 | ' | ' | ' | ' | -11,490 | -10,297 | -10,373 | ' | ' | ' | -997 | -947 | -1,127 | ' | ' | ' | -61,273 | -71,997 | -82,046 | ' | ' | ' | ' | ' | ' | -73,760 | -83,241 | -93,546 | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | -73,760 | -83,241 | -93,546 | ' |
Proceeds from sale of fixed assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,565 | 65,065 | 0 | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 65,065 | 9,565 | ' | ' | ' | ' | ' | ' | ' | 65,065 | 9,565 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65,065 | 9,565 | ' | ' | ' |
Other investing activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,457 | -10,054 | -15,307 | ' | ' | ' | ' | 0 | -858 | -375 | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | -2,457 | -6,778 | -14,932 | ' | ' | ' | ' | ' | ' | -2,457 | -7,636 | -15,307 | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | -2,457 | -7,636 | -15,307 | ' |
Net cash flows used in investing activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -66,652 | -25,812 | -108,853 | ' | ' | ' | ' | -11,490 | -11,155 | -10,748 | ' | ' | ' | -997 | -947 | -1,127 | ' | ' | ' | -54,165 | -13,710 | -96,978 | ' | ' | ' | ' | ' | ' | -66,652 | -25,812 | -108,853 | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | -66,652 | -25,812 | -108,853 | ' |
Net borrowings of debt and other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 133,065 | -225,406 | 9,610 | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | -226 | -234 | -263 | ' | ' | ' | ' | ' | ' | 132,839 | -225,640 | 9,347 | ' | ' | 0 | 3 | 0 | ' | ' | ' | ' | ' | ' | 132,839 | -225,637 | 9,347 | ' |
Share-based payment activity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,968 | 3 | 2,355 | ' | ' | 0 | ' | ' | ' | 0 | ' | 0 | ' | ' | ' | 0 | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | ' | 0 | ' | ' | ' | 0 | ' | 3,113 | ' | ' | -101,455 | ' | ' | ' | ' | 3,113 | ' | ' | ' | -101,455 | ' |
Intercompany transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -19,534 | 420,349 | 26,776 | ' | ' | ' | 3,446 | 6,620 | -3,060 | ' | ' | ' | -31,258 | -423,966 | -75,171 | ' | ' | ' | ' | ' | ' | -47,346 | 3,003 | -51,455 | ' | ' | 47,346 | -3,003 | 51,455 | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' |
Net cash flows used in financing activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 135,952 | -225,637 | -92,108 | ' | ' | ' | ' | 113,531 | 194,943 | 36,386 | ' | ' | ' | 3,446 | 6,620 | -3,060 | ' | ' | ' | -31,484 | -424,200 | -75,434 | ' | ' | ' | ' | ' | ' | 85,493 | -222,637 | -42,108 | ' | ' | 50,459 | -3,000 | -50,000 | ' | ' | ' | ' | ' | ' | 135,952 | -225,637 | -92,108 | ' |
Effect of exchange rate changes on cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -74 | -171 | -405 | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | -74 | -171 | -405 | ' | ' | ' | ' | ' | ' | -74 | -171 | -405 | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | -74 | -171 | -405 | ' |
Net change in cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $139,872 | ($60,313) | ($212,216) | ' | ' | ' | ' | ($3,903) | $15,472 | ($9,433) | ' | ' | ' | ($56) | $41 | ($172) | ' | ' | ' | $93,368 | ($72,850) | ($155,677) | ' | ' | ' | ' | ' | ' | $89,409 | ($57,337) | ($165,282) | ' | ' | $50,463 | ($2,976) | ($46,934) | ' | ' | ' | ' | ' | ' | $139,872 | ($60,313) | ($212,216) | ' |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | $503,481 | $595,202 | $593,673 | $580,380 | $595,236 | $638,903 | $654,895 | $609,565 | $639,185 | $702,499 | $737,188 | $682,095 | ' | $2,272,736 | $2,498,599 | $2,760,967 |
EBITDA Excluding Certain Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 276,139 | 380,217 | 509,881 |
Payments to Acquire Productive Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73,760 | 83,241 | 93,546 |
Assets | 1,877,036 | ' | ' | ' | 2,423,356 | ' | ' | ' | ' | ' | ' | ' | ' | 1,877,036 | 2,423,356 | ' |
Reconciliation to Consolidated (Loss) Income Before Income Taxes [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,952 | 13,920 | 14,133 |
Lease abandonment charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,367 | 0 | 0 |
Settlement-related costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,859 | 0 | 0 |
Long-lived asset impairments (Notes 4 and 5) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 568,216 | 300,104 | 1,662,288 |
Loss on debt refinancing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,200 | 0 | 5,232 | 9,474 |
Loss on Disposition of Property Plant Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,491 | 3,938 | 0 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 152,501 | 164,712 | 158,663 |
Net interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 128,033 | 124,663 | 110,330 |
Loss before income taxes | -95,023 | -499,926 | -2,383 | -19,948 | -9,487 | -254,111 | 53,064 | -21,818 | -1,174,569 | -417,844 | 103,291 | 44,115 | ' | -617,280 | -232,352 | -1,445,007 |
The Art Institutes [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of States in which Entity Operates | 25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25 | ' | ' |
Student Concentration Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53.00% | ' | ' |
Number of Schools | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51 | ' | ' |
Payments to Acquire Productive Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,829 | 39,778 | 42,970 |
Assets | 953,003 | ' | ' | ' | 1,521,597 | ' | ' | ' | ' | ' | ' | ' | ' | 953,003 | 1,521,597 | ' |
Argosy University [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of States in which Entity Operates | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13 | ' | ' |
Student Concentration Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19.00% | ' | ' |
Number of Schools | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' |
Payments to Acquire Productive Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,712 | 6,719 | 6,573 |
Assets | 297,320 | ' | ' | ' | 274,151 | ' | ' | ' | ' | ' | ' | ' | ' | 297,320 | 274,151 | ' |
Brown Mackie Colleges [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of States in which Entity Operates | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 | ' | ' |
Student Concentration Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13.00% | ' | ' |
Number of Schools | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28 | ' | ' |
Payments to Acquire Productive Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,847 | 9,049 | 11,906 |
Assets | 210,154 | ' | ' | ' | 231,225 | ' | ' | ' | ' | ' | ' | ' | ' | 210,154 | 231,225 | ' |
South University [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of States in which Entity Operates | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9 | ' | ' |
Student Concentration Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' |
Number of Schools | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11 | ' | ' |
Payments to Acquire Productive Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,960 | 7,648 | 9,056 |
Assets | 229,336 | ' | ' | ' | 233,993 | ' | ' | ' | ' | ' | ' | ' | ' | 229,336 | 233,993 | ' |
Corporate and Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to Acquire Productive Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,412 | 20,047 | 23,041 |
Assets | 187,223 | ' | ' | ' | 162,390 | ' | ' | ' | ' | ' | ' | ' | ' | 187,223 | 162,390 | ' |
Operating Segments [Member] | The Art Institutes [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,386,729 | 1,543,385 | 1,738,542 |
EBITDA Excluding Certain Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 352,036 | 268,530 | ' | 480,518 |
Operating Segments [Member] | Argosy University [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 321,118 | 356,544 | 397,458 |
EBITDA Excluding Certain Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39,068 | 29,880 | ' | 57,346 |
Operating Segments [Member] | Brown Mackie Colleges [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 265,606 | 298,175 | 314,801 |
EBITDA Excluding Certain Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,154 | 22,007 | ' | 55,755 |
Operating Segments [Member] | South University [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 299,283 | 300,495 | 310,166 |
EBITDA Excluding Certain Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46,613 | 41,260 | ' | 10,560 |
Corporate, Non-Segment [Member] | Corporate and Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
EBITDA Excluding Certain Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($89,654) | ($85,538) | ' | ($94,298) |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Aug. 31, 2014 | Sep. 30, 2014 |
Subsequent Event [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Proceeds from sale of fixed assets | $9,565 | $65,065 | $0 | $1,200 | ' |
Sale Leaseback Transaction, Lease Terms | ' | ' | ' | '1 year | ' |
Loss on Disposition of Property Plant Equipment | $3,491 | $3,938 | $0 | ' | $7,000 |
Schedule_IIValuation_and_Quali2
Schedule II-Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Allowance for Doubtful Accounts [Member] | ' | ' | ' |
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' |
Valuation Allowances and Reserves, Balance | $202,611 | $245,189 | $194,264 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 129,261 | 171,306 | 163,926 |
Valuation Allowances and Reserves, Deductions | 156,354 | 213,884 | 113,001 |
Valuation Allowances and Reserves, Balance | 175,518 | 202,611 | 245,189 |
Allowance for Losses on Finance Receivables [Member] | ' | ' | ' |
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' |
Valuation Allowances and Reserves, Balance | 5,637 | 5,093 | 5,093 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 12,685 | 544 | 0 |
Valuation Allowances and Reserves, Deductions | 0 | 0 | 0 |
Valuation Allowances and Reserves, Balance | 18,322 | 5,637 | 5,093 |
Valuation Allowance of Deferred Tax Assets [Member] | ' | ' | ' |
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' |
Valuation Allowances and Reserves, Balance | 24,825 | 25,267 | 21,667 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 127,438 | -442 | 3,600 |
Valuation Allowances and Reserves, Deductions | 0 | 0 | 0 |
Valuation Allowances and Reserves, Balance | $152,263 | $24,825 | $25,267 |
Supplemental_Quarterly_Informa2
Supplemental Quarterly Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Document Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $503,481 | $595,202 | $593,673 | $580,380 | $595,236 | $638,903 | $654,895 | $609,565 | $639,185 | $702,499 | $737,188 | $682,095 | $2,272,736 | $2,498,599 | $2,760,967 |
Loss before income taxes | -95,023 | -499,926 | -2,383 | -19,948 | -9,487 | -254,111 | 53,064 | -21,818 | -1,174,569 | -417,844 | 103,291 | 44,115 | -617,280 | -232,352 | -1,445,007 |
Net loss | ($187,846) | ($467,646) | $1,089 | ($9,514) | ($2,035) | ($260,408) | $31,144 | ($13,091) | ($1,128,725) | ($394,926) | $63,127 | $26,954 | ($663,917) | ($244,390) | ($1,433,570) |
Earnings Per Share, Diluted | ($0.69) | ($3.71) | $0.01 | ($0.08) | ($0.02) | ($2.09) | $0.25 | ($0.11) | ($9.51) | ($2.69) | $0.49 | $0.21 | ($5.29) | ($1.96) | ($11.32) |