Nature of Operations

Apollo Education Group, Inc. and its wholly-owned subsidiaries and majority-owned subsidiaries, collectively referred to herein as “the Company,” “Apollo Education Group,” “Apollo,” “APOL,” “we,” “us,” or “our,” has been an education provider since 1973. We offer educational programs and services, online and on-campus, at the undergraduate, master’s and doctoral levels. Our learning platforms include the following:


•	The University of Phoenix, Inc. (“University of Phoenix”);


•	Apollo Global, Inc. (“Apollo Global”):


•	BPP Holdings Limited (“BPP”) in the United Kingdom (“U.K.”);


•	Open Colleges Australia Pty Ltd. (“Open Colleges”) in Australia;


•	Universidad Latinoamericana (“ULA”) in Mexico;


•	Universidad de Artes, Ciencias y Comunicación (“UNIACC”) in Chile; and


•	Indian Education Services Private Ltd. in India;


•	Western International University, Inc. (“Western International University”, or “WIU”);


•	Institute for Professional Development (“IPD”);


•	The College for Financial Planning Institutes Corporation (“CFFP”);


•	Carnegie Learning, Inc. (“Carnegie Learning”); and


•	Apollo Lightspeed.

During the first quarter of fiscal year 2014, Apollo changed its name from Apollo Group, Inc. to Apollo Education Group, Inc.

Subsequent Event

On December 20, 2013, Apollo Global acquired 70% of the outstanding shares of Open Colleges for an initial cash payment of A$110 million (equivalent to $98.1 million on the transaction date), plus a contingent obligation based on the satisfaction of certain conditions that we expect to become determinable in the second half of calendar year 2014. In addition, we have the option to buy the remaining outstanding shares, and the holders of those equity interests have the option to sell their shares to us, in early 2017. The prices for these options are principally based on a multiple of Open Colleges’ calendar year 2016 financial performance. Open Colleges is a provider of education and training to adult learners in Australia, and this acquisition supports our strategy to expand our global operations. Open Colleges’ operating results are not material to our consolidated financial statements and they will be included in our Apollo Global operating segment from date of acquisition. We have not yet completed the purchase price allocation for this acquisition principally due to the recent acquisition date.