Segment Reporting

9 Months Ended

May 31, 2012

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 University, Inc. 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 May 31,				Nine Months Ended May 31,
($ in thousands)	2012		2011		2012		2011
Net revenue
University of Phoenix	$	1,011,683	$	1,112,543	$	2,954,064	$	3,273,018
Apollo Global:
BPP	74,672		77,371		207,702		209,136
Other	22,224		22,864		58,745		60,002
Total Apollo Global	96,896		100,235		266,447		269,138
Other Schools	20,016		23,038		56,326		67,233
Corporate	2,213		21		2,213		1,512
Total net revenue	$	1,130,808	$	1,235,837	$	3,279,050	$	3,610,901

Operating income (loss):
University of Phoenix(1)	$	241,210		$	356,259		$	673,990		$	995,332
Apollo Global:
BPP(2)	11,978			14,449			15,684			(194,644		)
Other(1), (3)	(7,884		)	(5,158		)	(43,715		)	(25,009		)
Total Apollo Global	4,094			9,291			(28,031		)	(219,653		)
Other Schools	2,450			2,980			4,278			4,361
Corporate(1)	(22,200		)	(22,042		)	(53,934		)	(49,476		)
Total operating income	225,554			346,488			596,303			730,564
Reconciling items:
Interest income	219			867			1,085			2,635
Interest expense	(2,830		)	(2,383		)	(6,618		)	(6,207		)
Other, net	(402		)	(1,862		)	(44		)	(1,603		)
Income from continuing operations before income taxes	$	222,541		$	343,110		$	590,726		$	725,389

⁽¹⁾ University of Phoenix, Apollo Global — Other and Corporate include charges associated with our restructuring activities. Refer to Note 4, Restructuring and Other Charges.

⁽²⁾ BPP’s operating loss in the nine months ended May 31, 2011 includes $219.9 million of goodwill and other intangibles impairment charges.

⁽³⁾ Apollo Global — Other’s operating loss for the nine months ended May 31, 2012 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:

	May 31, 2012		August 31, 2011
($ in thousands)
Assets:
University of Phoenix	$	993,873	$	1,016,005
Apollo Global:
BPP	286,285		303,107
Other	111,551		146,490
Total Apollo Global	397,836		449,597
Other Schools	18,426		24,073
Corporate	859,809		1,780,031
Total assets	$	2,269,944	$	3,269,706