Shareholders' Equity and Redeemable Noncontrolling Interests

12 Months Ended

Aug. 31, 2014

Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity and Redeemable Noncontrolling Interests

Share Repurchases

Our Board of Directors has authorized us to repurchase outstanding shares of our Class A common stock from time to time depending on market conditions and other considerations. During 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, of which $90.3 million remained available as of August 31, 2014. There is no expiration date on the repurchase authorizations and the amount and timing of future share repurchase authorizations and repurchases, if any, will be made as market and business conditions warrant. Repurchases occur at our discretion and 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.

We also repurchase shares in connection with tax withholding requirements associated with the release of vested shares of restricted stock units, which do not fall under the repurchase program described above.

The following summarizes our share repurchase activity for the respective periods:

	Year Ended August 31,
(In thousands, except per share data)	2014		2013		2012
Share repurchases under share repurchase program:
Number of shares repurchased	5,363		—		19,117
Weighted average purchase price per share	$	29.78	$	—	$	41.82
Cost of share repurchases	$	159,684	$	—	$	799,506
Share repurchases related to vesting of restricted stock units:
Number of shares repurchased	471		475		303
Cost of share repurchases	$	13,025	$	9,537	$	12,407

Share Reissuances

We reissue our Class A common stock from our treasury stock as a result of the release of shares covered by vested restricted stock units, stock option exercises and purchases under our employee stock purchase plan. Share reissuances were as follows for the respective periods:

	Year Ended August 31,
(In thousands)	2014	2013	2012
Number of shares reissued	1,431	1,532	1,184

Purchase of Noncontrolling Interest in Apollo Global

During fiscal year 2013, we purchased the 14.4% noncontrolling ownership interest in Apollo Global. 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. On the purchase date, we estimated the fair value of the contingent payment to be $6.0 million. Refer to Note 9, Fair Value Measurements, for further discussion of the valuation and subsequent changes in the estimated fair value. We accounted for the purchase as an equity transaction and the following details net income attributable to Apollo and transfers to noncontrolling interest during the respective periods:

	Year Ended August 31,
($ in thousands)	2014		2013			2012
Net income attributable to Apollo	$	209,304	$	248,526		$	422,678
Transfer to noncontrolling interest:
Decrease in equity for purchase of noncontrolling interest in Apollo Global(1)	—		(48,543		)	—
Change from net income attributable to Apollo and transfer to noncontrolling interest	$	209,304	$	199,983		$	422,678

⁽¹⁾ Represents the difference between the fair value of the consideration paid to purchase the noncontrolling ownership interest in Apollo Global and the carrying amount of the noncontrolling interest acquired, and an adjustment to accumulated other comprehensive loss to reflect the change in Apollo’s proportionate interest.

Redeemable Noncontrolling Interests

During fiscal year 2014, Apollo Global acquired an 81% consolidated interest in Milpark Education and 70% of the outstanding shares of Open Colleges. We also have the option to buy the remaining noncontrolling interests associated with these acquisitions, and the noncontrolling shareholders have the option to sell their shares to us. The options are exercisable in the third quarter of our fiscal year 2016 for Milpark Education and in early calendar year 2017 for Open Colleges, or earlier in limited circumstances for both acquisitions. The price for the options is based on a formula specified at the respective acquisition dates and is principally based on a multiple of the respective acquired entity’s operating results as defined in the acquisition agreements. There is no minimum or maximum price for these options. Since the options are embedded in the shares owned by the respective noncontrolling shareholders and the shareholders have the option to redeem their shares, we have classified both of the noncontrolling interests as redeemable equity on our Consolidated Balance Sheets.

Both of the redeemable noncontrolling interests are probable of becoming redeemable. Accordingly, we record both redeemable noncontrolling interests at the greater of the carrying value or the redemption value at the end of each reporting period. We determine the redemption value using the formula specified at each respective acquisition date, and by assuming the end of each reporting period is the redemption date. We record redemption value adjustments through retained earnings.

Accumulated Other Comprehensive Loss

The following summarizes the components of accumulated other comprehensive loss at August 31:

($ in thousands)	2014			2013
Foreign currency translation losses	$	(26,919	)	$	(36,032	)
Unrealized loss on available-for-sale securities	(401		)	(531		)
Accumulated other comprehensive loss(1)	$	(27,320	)	$	(36,563	)

⁽¹⁾ Accumulated other comprehensive loss is net of insignificant taxes as of August 31, 2014 and 2013.