Segment Reporting

3 Months Ended

Nov. 30, 2011

Notes to Condensed Consolidated Financial Statements [Abstract]

Segment Reporting

Segment Reporting

We operate primarily in the education industry. We have organized our segments using a combination of factors primarily focusing on the type of educational services provided and products delivered. Our operating segments are managed in the following four reportable segments:

1. University of Phoenix;

2. Apollo Global — BPP

3. Apollo Global — Other; and

4. Other Schools.

The Apollo Global — Other reportable segment includes Western International University, UNIACC, ULA and the Apollo Global corporate operations. The Other Schools reportable segment includes IPD and CFFP, as well as Meritus until its closure in fiscal year 2011. The Corporate caption in our segment reporting includes adjustments to reconcile segment results to consolidated results, which primarily consist of net revenue and corporate charges that are not allocated to our reportable segments. Please refer to our 2011 Annual Report on Form 10-K for further discussion of our segments.

We acquired Carnegie Learning during the first quarter of fiscal year 2012 and it is included in our University of Phoenix operating segment from the date of acquisition. Refer to Note 5, Acquisitions.

A summary of financial information by reportable segment is as follows:

	Three Months Ended November 30,
($ in thousands)	2011		2010
Net revenue
University of Phoenix	$	1,057,069	$	1,197,791
Apollo Global:
BPP	80,081		79,738
Other	22,676		23,488
Total Apollo Global	102,757		103,226
Other Schools	18,864		25,269
Corporate	—		149
Net revenue	$	1,178,690	$	1,326,435

Operating income (loss):
University of Phoenix(1)	$	292,038		$	407,434
Apollo Global:
BPP	11,172			16,572
Other(2)	(23,308		)	(7,789		)
Total Apollo Global	(12,136		)	8,783
Other Schools	716			4,263
Corporate	(16,133		)	(13,364		)
Total operating income	264,485			407,116
Reconciling items:
Interest income	589			983
Interest expense	(1,999		)	(2,170		)
Other, net	141			(54		)
Income from continuing operations before income taxes	$	263,216		$	405,875

⁽¹⁾ University of Phoenix’s operating income for the three months ended November 30, 2011 includes $5.6 million in restructuring and other charges associated with our real estate rationalization plan. Operating income for the three months ended November 30, 2010 includes $3.8 million of charges associated with a strategic reduction in force. Refer to Note 4, Restructuring and Other Charges.

⁽²⁾ Apollo Global - Other’s operating loss for the three months ended November 30, 2011 includes $16.8 million of goodwill and other intangibles impairment charges. Refer to Note 7, Goodwill and Intangible Assets.

A summary of our consolidated assets by reportable segment is as follows:

	November 30, 2011		August 31, 2011
($ in thousands)
Assets
University of Phoenix	$	1,128,141	$	1,016,005
Apollo Global:
BPP	319,268		303,107
Other	102,052		146,490
Total Apollo Global	421,320		449,597
Other Schools	19,865		24,073
Corporate	1,384,325		1,780,031
Total assets	$	2,953,651	$	3,269,706