Segment Reporting

3 Months Ended

Nov. 30, 2012

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

We operate primarily in the education industry. During the fourth quarter of fiscal year 2012, we revised our segment reporting to maintain consistency with the method management uses to evaluate performance and allocate resources. Accordingly, we have identified five operating segments that are managed in the following reportable segments:

• University of Phoenix;

• Apollo Global; and

• Other.

As a result of the above changes, BPP is no longer an operating segment and we have changed our presentation for all periods presented to reflect our revised segment reporting.

Apollo Global includes BPP, Western International University, UNIACC, ULA and the Apollo Global corporate operations. Other includes IPD, CFFP, Apollo Education Services and corporate activities. Apollo Education Services is a business we are developing through which we intend to begin providing a variety of educational delivery services to other higher education institutions. Apollo Education Services has not yet generated net revenues.

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

	Three Months Ended November 30,
($ in thousands)	2012			2011
Net revenue
University of Phoenix	$	939,890		$	1,057,069
Apollo Global	96,791			95,967
Other	18,502			18,864
Net revenue	$	1,055,183		$	1,171,900
Operating income (loss)(1):
University of Phoenix	$	242,319		$	292,038
Apollo Global(2)	(9,143		)	(14,953		)
Other(3)	(2,230		)	(15,417		)
Total operating income	230,946			261,668
Reconciling items:
Interest income	549			506
Interest expense	(2,042		)	(1,999		)
Other, net	1,799			140
Income from continuing operations before income taxes	$	231,252		$	260,315

⁽¹⁾ University of Phoenix, Apollo Global and Other include charges associated with our restructuring activities. Refer to Note 3, Restructuring and Other Charges.

⁽²⁾ The operating loss for Apollo Global for the three months ended November 30, 2011 includes $16.8 million of goodwill and other intangibles impairment charges.

⁽³⁾ The operating loss for Other for the three months ended November 30, 2012 includes a $16.9 million credit associated with the Securities Class Action (Policeman’s Annuity and Benefit Fund of Chicago). Refer to Note 13, Commitments and Contingencies.

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

($ in thousands)	November 30, 2012		August 31, 2012
University of Phoenix	$	877,612	$	938,104
Apollo Global	410,343		389,509
Other(1)	1,080,962		1,540,709
Total assets	$	2,368,917	$	2,868,322

⁽¹⁾ The majority of assets included in Other consists of corporate cash and cash equivalents.