Shareholders' Equity

9 Months Ended

May 31, 2013

Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity

The following details changes in shareholders’ equity during the nine months ended May 31, 2013 and 2012:

	Common Stock				Additional Paid-in Capital								Accumulated Other Comprehensive Loss			Total Apollo Shareholders’ Equity			Non-Controlling Interests (Deficit)
	Class A		Class B					Treasury Stock Class A			Retained Earnings											Total Equity
	Stated Value		Stated Value
($ in thousands)								Cost
Balance as of August 31, 2012	$	103	$	1	$	93,770		$	(3,878,612	)	$	4,743,150	$	(30,034	)	$	928,378		$	(4,055	)	$	924,323
Treasury stock purchases	—		—		—			(5,696		)	—		—			(5,696		)	—			(5,696		)
Treasury stock issued under stock purchase plans	—		—		(4,443		)	7,436			—		—			2,993			—			2,993
Treasury stock issued under stock incentive plans	—		—		(28,113		)	28,113			—		—			—			—			—
Net tax effect for stock incentive plans	—		—		(23,278		)	—			—		—			(23,278		)	—			(23,278		)
Share-based compensation	—		—		39,888			—			—		—			39,888			—			39,888
Currency translation adjustment, net of tax	—		—		—			—			—		(3,664		)	(3,664		)	(325		)	(3,989		)
Purchase of noncontrolling interest	—		—		(48,543		)	—			—		(4,886		)	(53,429		)	4,929			(48,500		)
Net income	—		—		—			—			226,975		—			226,975			594			227,569
Balance as of May 31, 2013	$	103	$	1	$	29,281		$	(3,848,759	)	$	4,970,125	$	(38,584	)	$	1,112,167		$	1,143		$	1,113,310

	Common Stock				Additional Paid-in Capital			Treasury Stock Class A					Accumulated Other Comprehensive Loss			Total Apollo Shareholders’ Equity			Non-Controlling Interests (Deficit)
	Class A		Class B								Retained Earnings											Total Equity
	Stated Value		Stated Value
($ in thousands)								Cost
Balance as of August 31, 2011	$	103	$	1	$	68,724		$	(3,125,175	)	$	4,320,472	$	(23,761	)	$	1,240,364		$	3,625		$	1,243,989
Treasury stock purchases	—		—		—			(742,016		)	—		—			(742,016		)	—			(742,016		)
Treasury stock issued under stock purchase plans	—		—		(1,037		)	4,926			—		—			3,889			—			3,889
Treasury stock issued under stock incentive plans	—		—		(19,660		)	26,292			—		—			6,632			—			6,632
Net tax effect for stock incentive plans	—		—		(3,937		)	—			—		—			(3,937		)	—			(3,937		)
Share-based compensation	—		—		59,438			—			—		—			59,438			—			59,438
Currency translation adjustment, net of tax	—		—		—			—			—		(7,912		)	(7,912		)	(1,490		)	(9,402		)
Net income (loss)	—		—		—			—			347,230		—			347,230			(4,393		)	342,837
Balance as of May 31, 2012	$	103	$	1	$	103,528		$	(3,835,973	)	$	4,667,702	$	(31,673	)	$	903,688		$	(2,258	)	$	901,430

The following details net income attributable to Apollo and transfers to noncontrolling interest for the nine months ended May 31, 2013 and 2012:

	Nine Months Ended May 31,
($ in thousands)	2013			2012
Net income attributable to Apollo	$	226,975		$	347,230
Transfer to noncontrolling interest:
Decrease in equity for purchase of Carlyle interest	(48,543		)	—
Change from net income attributable to Apollo and transfer to noncontrolling interest	$	178,432		$	347,230

Purchase of Noncontrolling Interest

During the first quarter of fiscal year 2013, we purchased the 14.4% noncontrolling ownership interest in Apollo Global from Carlyle. We paid $42.5 million cash, plus a contingent payment based on a portion of Apollo Global’s operating results through the fiscal years ending August 31, 2017. We estimated the fair value of the contingent payment to be $6.0 million on the purchase date using a discounted cash flow valuation method encompassing significant unobservable inputs. Refer to Note 7, Fair Value Measurements. As a result of the transaction, Apollo Group owns all of Apollo Global. This purchase was accounted for as an equity transaction resulting in the removal of Carlyle’s noncontrolling interest from our Condensed Consolidated Balance Sheets. Accordingly, we recorded an adjustment to additional paid-in capital of $48.5 million, which principally represents the difference between the fair value of the consideration discussed above and the carrying amount of the noncontrolling interest acquired. The adjustment to additional paid-in capital also includes an adjustment to accumulated other comprehensive loss to reflect the change in Apollo’s proportionate interest.

The remaining noncontrolling interest on our Condensed Consolidated Balance Sheets following the above purchase represents an ownership interest in a subsidiary of BPP.

Share Reissuances

During the three months ended May 31, 2013 and 2012, we issued 0.3 million and 0.1 million shares, respectively, and during the nine months ended May 31, 2013 and 2012, we issued 0.8 million and 0.6 million shares, respectively, of our Apollo Group Class A common stock from our treasury stock. These reissuances are a result of stock option exercises, release of shares covered by vested restricted stock units, and/or purchases under our employee stock purchase plan.

Share Repurchases

Our Board of Directors has authorized us to repurchase outstanding shares of Apollo Group Class A common stock from time to time depending on market conditions and other considerations. During the third quarter of fiscal year 2013, our Board of Directors authorized an increase in the amount available under our share repurchase program up to an aggregate amount of $250 million. There is no expiration date on the repurchase authorizations and repurchases occur at our discretion.

We did not repurchase shares of our Apollo Group Class A common stock during the three and nine months ended May 31, 2013. During the three and nine months ended May 31, 2012, we repurchased 9.0 million and 17.1 million shares of our Apollo Group Class A common stock at a total cost of $329.0 million and $736.0 million, respectively. At May 31, 2012, we also had $10.2 million of unsettled share repurchases that settled subsequent to May 31, 2012. The weighted average purchase prices for the three and nine months ended May 31, 2012 were $36.41 and $43.02 per share, respectively.

As of May 31, 2013, $250 million remained available under our share repurchase authorization. The amount and timing of future share repurchase authorizations and repurchases, if any, will be made as market and business conditions warrant. Repurchases may be made on the open market through various methods including but not limited to accelerated share repurchase programs, or in privately negotiated transactions, pursuant to the applicable Securities and Exchange Commission rules, and may include repurchases pursuant to Securities and Exchange Commission Rule 10b5-1 nondiscretionary trading programs.

In connection with the release of vested shares of restricted stock, we repurchased 0.1 million and less than 0.1 million shares of Class A common stock for $1.8 million and $0.8 million during the three months ended May 31, 2013 and 2012, respectively. During the nine months ended May 31, 2013 and 2012, we repurchased 0.3 million and 0.1 million shares of Class A common stock for $5.7 million and $6.0 million, respectively. These repurchases relate to tax withholding requirements on the restricted stock units and do not fall under the repurchase program described above.