Segment Reporting

3 Months Ended

Nov. 30, 2013

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

We operate primarily in the education industry. Our reportable segments have been determined based on the method by which management evaluates performance and allocates resources. Our seven operating segments are presented in the following reportable segments:

• University of Phoenix;

• Apollo Global; and

• Other.

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

During the fourth quarter of fiscal year 2013, we revised our internal management reporting structure and determined Carnegie Learning and Western International University are operating segments. Accordingly, Carnegie Learning is no longer included in our University of Phoenix reportable segment, and Western International University is no longer included in our Apollo Global reportable segment. These operating segments are included in Other in our segment reporting and we have changed our presentation for all periods presented to reflect our revised segment reporting.

During the second quarter of fiscal year 2014, Apollo Global acquired 70% of the outstanding shares of Open Colleges. Open Colleges’ operating results will be included in our Apollo Global operating segment from date of acquisition. Refer to Note 1, Nature of Operations.

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

	Three Months Ended November 30,
($ in thousands)	2013			2012
Net revenue
University of Phoenix	$	744,863		$	935,784
Apollo Global	91,159			90,514
Other	20,313			28,885
Net revenue	$	856,335		$	1,055,183
Operating income (loss)(1):
University of Phoenix	$	183,473		$	243,860
Apollo Global	2,217			(9,366		)
Other(2)	(15,896		)	(3,548		)
Operating income	169,794			230,946
Reconciling items:
Interest income	568			549
Interest expense	(2,086		)	(2,042		)
Other, net	807			1,799
Income before income taxes	$	169,083		$	231,252

⁽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 Other for the three months ended November 30, 2012 is net of a $16.9 million credit associated with a legal matter.

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

($ in thousands)	November 30, 2013		August 31, 2013
University of Phoenix	$	780,839	$	790,537
Apollo Global	393,063		359,903
Other(1)	1,289,128		1,847,507
Total assets	$	2,463,030	$	2,997,947

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