Not sure what you're referring to. In the recently released 10K, page 84, they specifically state that they do not have any off-balance sheet financing arrangmenets. However, perhaps you're referring to the Operating Lease commitments shown in the Contractual Obligations section? Right now, lease obligations are not accounted for as debt even though they are real obligations. In CECO's case, they have over $600 million in lease obligations. Those don't go away unless (1) the lease expires naturally, (2) they negotiate a termination, or (3) they file Chapter 11 and reject the lease. Unfortunately, they're slated to close a bunch of schools and it's unlikely they all have leases that expire at that same time. They're stuck with this "off-balance" sheet anchor.
thanks.. found the following:
We anticipate that a majority of the campus closures will be completed by the second quarter of 2014. A portion of these campuses will have remaining lease obligations following the completion of the teach-out, with the longest lease term being through 2021. The total gross remaining lease obligations for the Transitional schools once they complete the close process is expected to be approximately $78 million. At the time each campus completes the close process, a charge will be recorded representing the net present value of the remaining lease obligation reduced by an estimated amount for sublease income.
still don't see the 170M number.. They also said :
We are estimating that the 2013 operating loss for Transitional Schools will be approximately $70 - $80 million, excluding the impact of remaining lease obligation charges and other unusual items