Segment Reporting (Tables)

12 Months Ended

Aug. 31, 2014

Segment Reporting [Abstract]

Segment reporting information

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

	Year Ended August 31,
($ in thousands)	2014			2013			2012
Net revenue:
University of Phoenix	$	2,632,949		$	3,304,464		$	3,873,098
Apollo Global	338,008			275,768			269,541
Other	53,221			55,692			50,551
Net revenue	$	3,024,178		$	3,635,924		$	4,193,190
Operating income (loss)(1):
University of Phoenix	$	488,217		$	579,670		$	846,840
Apollo Global(2)	(74,189		)	(59,936		)	(66,964		)
Other(3)	(75,057		)	(85,342		)	(103,508		)
Operating income	338,971			434,392			676,368
Reconciling items:
Interest income	2,230			1,913			1,187
Interest expense	(7,914		)	(8,745		)	(11,745		)
Other (loss) income, net	(547		)	2,407			476
Income from continuing operations before income taxes	$	332,740		$	429,967		$	666,286
Depreciation and amortization(4):
University of Phoenix(4)	$	35,261		$	53,562		$	64,643
Apollo Global	38,168			25,982			24,297
Other	77,146			82,189			89,294
Depreciation and amortization(4)	$	150,575		$	161,733		$	178,234
Capital expenditures:
University of Phoenix	$	8,280		$	6,992		$	20,133
Apollo Global	22,231			33,627			36,523
Other	70,155			78,729			58,531
Capital expenditures	$	100,666		$	119,348		$	115,187

⁽¹⁾ University of Phoenix, Apollo Global and Other include charges associated with our restructuring activities. Refer to Note 2, Restructuring and Other Charges.

⁽²⁾ The operating loss for Apollo Global in fiscal year 2014 includes contingent consideration charges and acquisition costs. Refer to Note 4, Acquisitions, and Note 9, Fair Value Measurements. The operating loss also includes the reversal of approximately $11 million of foreign indirect taxes following resolution with the taxing authority. These taxes were originally assessed in fiscal year 2013. The operating loss in fiscal year 2012 includes goodwill and other intangibles impairment charges of $16.8 million. Refer to Note 8, Goodwill and Intangibles.

⁽³⁾ The operating loss for Other in fiscal year 2014 includes $13.9 million of charges associated with our legal matters. The operating loss in fiscal year 2013 includes credits of $23.2 million associated with our legal matters.

⁽⁴⁾ Depreciation and amortization in fiscal years 2014 and 2013 excludes $7.6 million and $50.1 million, respectively, of accelerated depreciation associated with our restructuring activities. Refer to Note 2, Restructuring and Other Charges.

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

	As of August 31,
($ in thousands)	2014		2013		2012
University of Phoenix	$	824,895	$	790,537	$	901,180
Apollo Global	680,363		359,903		376,071
Other(1)	1,587,677		1,847,507		1,591,071
Total assets	$	3,092,935	$	2,997,947	$	2,868,322

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

Revenue by geographical area

A summary of financial information by geographical area based on country of domicile for our respective operating locations is as follows:

	Year Ended August 31,
($ in thousands)	2014		2013		2012
Net revenue:
United States	$	2,686,571	$	3,360,316	$	3,923,649
United Kingdom	229,508		205,662		198,408
Other	108,099		69,946		71,133
Net revenue	$	3,024,178	$	3,635,924	$	4,193,190

Long-lived assets by geographical area

	As of August 31,
($ in thousands)	2014		2013		2012
Long-lived assets(1):
United States	$	430,641	$	472,811	$	580,457
United Kingdom	172,485		169,371		174,229
Australia	191,393		—		—
Other	90,480		66,244		69,322
Long-lived assets	$	884,999	$	708,426	$	824,008

⁽¹⁾ Long-lived assets include property and equipment, net, goodwill, and intangible assets, net.