Changes in Presentation

Restricted Cash and Cash Equivalents

During fiscal year 2011, we changed our presentation of changes in restricted cash and cash equivalents related to financial aid program funds to cash flows from operating activities on our Condensed Consolidated Statements of Cash Flows from Continuing and Discontinued Operations. We previously presented such changes as cash flows from investing activities. Our restricted cash and cash equivalents primarily represents funds held for students for unbilled educational services that were received from U.S. federal financial aid programs established by Title IV of the Higher Education Act and regulations promulgated thereunder (“Title IV”). When we receive such funds, they are recorded as restricted cash on our Condensed Consolidated Balance Sheets with an offsetting liability recorded as student deposits. These restricted funds are a core activity of our operations and, accordingly, we believe presentation of changes in such funds as an operating activity more appropriately reflects the nature of the restricted cash. Additionally, we believe that including both changes in the restricted cash asset and the student deposit liability within operating activities provides better transparency. We have changed our presentation on our Condensed Consolidated Statements of Cash Flows from Continuing and Discontinued Operations for all periods presented. The changes have no impact on our financial position and results of operations.

The following table presents our cash flows as previously reported and as changed for the nine months ended May 31, 2011:



($ in thousands)	As Reported		As Changed
Cash flows provided by operating activities:
Restricted cash and cash equivalents	$	—	$	67,658
Net cash provided by operating activities	$	680,894	$	748,552
Cash flows provided by investing activities:
Collateralization of letter of credit⁽¹⁾	$	194,273	$	126,615
Net cash provided by investing activities	$	263,177	$	195,519

⁽¹⁾ Following the change in presentation discussed above, the remaining change in restricted cash and cash equivalents for the nine months ended May 31, 2011 represents funds used to collateralize a letter of credit. We have continued to present this change as an investing activity based on the nature of the restricted cash; however, we have renamed the remaining change, “Collateralization of letter of credit.”

Other

During the third quarter of fiscal year 2012, we combined our presentation of accrued liabilities and other current liabilities on our Condensed Consolidated Balance Sheets and our Condensed Consolidated Statements of Cash Flows from Continuing and Discontinued Operations based on the similar nature of the liabilities. Refer to Note 9, Accrued and Other Liabilities, for a detail of these liabilities. Additionally, we began presenting our restructuring activities as a component of the change in accrued and other liabilities rather than as a separate line item on our Condensed Consolidated Statements of Cash Flows from Continuing and Discontinued Operations. Refer to Note 4, Restructuring and Other Charges, for discussion of our restructuring activities. We have changed our presentation for all periods presented. These changes had no impact on our financial position or results of operations.