Segment Reporting

12 Months Ended

Jun. 30, 2012

Segments [Abstract]

Segment Reporting Disclosure [Text Block]

SEGMENT REPORTING

The Company's principal business is providing post-secondary education. The Company manages its operations through four operating segments, which through March 31, 2012 were aggregated into one reportable segment, as all criteria for aggregation under applicable accounting rules were met. Beginning with the quarter ended June 30, 2012, the Company reports segment results for: The Art Institutes; Argosy University; Brown Mackie Colleges; and South University. A summary of each reportable segment is detailed below.

The Art Institutes. The Art Institutes focus on applied arts in creative professions such as media arts and animation, graphic design, culinary arts, interior design, web site development, digital filmmaking and video production, fashion design and marketing and game art and design. 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 on campus and online education. There are 51 Art Institutes campuses in 25 U.S. states and in Canada included in this reportable segment. As of October 2011, 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, education and health sciences disciplines. Argosy University offers Doctoral, Master's and undergraduate degrees through local campuses, fully online programs and blended formats. Argosy's academic programs focus on graduate students seeking advanced credentials as a prerequisite to initial licensing, career advancement and/or structured pay increases. There are 20 Argosy University campuses in 13 U.S. states included in this reportable segment. As of October 2011, 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 human services 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 growing fields such as medical assisting, criminal justice, nursing, business, legal support and information technology. There are 28 Brown Mackie College campuses in 15 U.S. states included in this reportable segment. As of October 2011, students enrolled at Brown Mackie Colleges represented approximately 13% of the Company's total enrollments.

South University. South University offers academic programs in health sciences and business disciplines, including business administration, criminal justice, nursing, information technology, psychology, pharmacy and medical assisting. South University offers Doctoral, Master's, Bachelor's and Associate's degrees through local campuses, fully online programs and blended formats. There are ten South University campuses in eight U.S. states included in this reportable segment. As of October 2011, students enrolled at South University represented approximately 15% of the Company's total enrollments.

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 before interest expense, net, provision for income taxes, depreciation and amortization and certain 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, this 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. A reconciliation of EBITDA excluding certain expenses by reportable segment to consolidated income before income taxes along with other summary financial information by reportable segment is presented below (in thousands):

	For the Fiscal Year Ended June 30,
	2012			2011			2010
Net revenues:
The Art Institutes	$	1,738,542		$	1,791,176		$	1,597,072
Argosy University	397,458			431,097			344,382
Brown Mackie Colleges	314,801			348,140			301,850
South University	310,166			317,216			265,217
Total EDMC	$	2,760,967		$	2,887,629		$	2,508,521
EBITDA excluding certain expenses:
The Art Institutes	$	477,466		$	531,163		$	455,188
Argosy University	56,652			97,481			66,338
Brown Mackie Colleges	62,041			96,740			98,045
South University	4,790			38,375			50,744
Corporate and other	(91,068		)	(102,159		)	(76,592		)
Total EDMC	509,881			661,600			593,723
Reconciliation to consolidated (loss) income before income taxes:
Goodwill and indefinite-lived intangible asset impairments	1,746,765			—			—
Loss on extinguishment of debt	9,474			11,368			47,207
Restructuring and other	11,633			610			6,776
Lease termination	2,500			—			—
Loss on EFL program loans	—			13,236			—
Management agreement termination fee	—			—			29,555
Previously deferred stock-based compensation costs	—			—			15,223
Depreciation and amortization	158,663			146,480			123,359
Net interest expense	110,330			120,694			121,456
(Loss) income before income taxes	$	(1,529,484	)	$	369,212		$	250,147

Expenditures for long-lived assets:
The Art Institutes	$	42,970	$	58,447	$	79,963
Argosy University	6,573		8,777		9,796
Brown Mackie Colleges	11,906		22,865		34,375
South University	9,056		6,539		13,423
Corporate and other	23,041		41,477		38,225
Total EDMC	$	93,546	$	138,105	$	175,782
	As of June 30,
Assets: (1)	2012		2011
The Art Institutes	$	1,804,221	$	3,060,939
Argosy University	298,037		451,611
Brown Mackie Colleges	268,694		482,155
South University	241,982		284,259
Corporate and other	226,161		274,171
Total EDMC	$	2,839,095	$	4,553,135

(1) Excludes inter-company activity.