Segment Reporting

9 Months Ended

May 31, 2013

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

We operate primarily in the education industry. During the fourth quarter of fiscal year 2012, we revised our segment reporting to maintain consistency with the method management uses to evaluate performance and allocate resources. Accordingly, we have identified four operating segments that are managed in the following reportable segments:

• University of Phoenix;

• Apollo Global; and

• Other.

As a result of the above changes, BPP is no longer an operating segment and we have changed our presentation for all periods presented to reflect our revised segment reporting.

Apollo Global includes BPP, Western International University, UNIACC, ULA and the Apollo Global corporate operations. Other includes IPD, CFFP and corporate activities.

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

	Three Months Ended May 31,						Nine Months Ended May 31,
($ in thousands)	2013			2012			2013			2012
Net revenue
University of Phoenix	$	846,450		$	1,011,683		$	2,542,785		$	2,954,064
Apollo Global	87,415			88,346			246,720			244,237
Other	12,909			22,229			46,824			58,539
Net revenue	$	946,774		$	1,122,258		$	2,836,329		$	3,256,840
Operating income (loss)(1):
University of Phoenix	$	144,279		$	241,210		$	457,786		$	673,990
Apollo Global(2)	6,088			(51		)	(29,335		)	(37,552		)
Other(3)	(18,414		)	(19,750		)	(35,772		)	(49,656		)
Total operating income	131,953			221,409			392,679			586,782
Reconciling items:
Interest income	506			160			1,443			881
Interest expense	(1,940		)	(2,830		)	(6,074		)	(6,618		)
Other, net	(862		)	(402		)	811			(44		)
Income from continuing operations before income taxes	$	129,657		$	218,337		$	388,859		$	581,001

⁽¹⁾ University of Phoenix, Apollo Global and Other include charges associated with our restructuring activities. Refer to Note 3, Restructuring and Other Charges.

⁽²⁾ The operating loss for Apollo Global for the nine months ended May 31, 2012 includes $16.8 million of goodwill and other intangibles impairment charges.

⁽³⁾ The operating loss for Other for the nine months ended May 31, 2013 includes $23.2 million of credits resulting from resolution in certain of our legal matters. The loss for the three and nine months ended May 31, 2012 includes a $4.7 million charge related to the Patent Infringement Litigation. Refer to Note 14, Commitments and Contingencies.

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

($ in thousands)	May 31, 2013		August 31, 2012
University of Phoenix	$	918,839	$	938,104
Apollo Global	360,735		389,509
Other(1)	1,113,380		1,540,709
Total assets	$	2,392,954	$	2,868,322

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