Restricted Cash Equivalents for Collateralization of Letter of Credit

12 Months Ended

Aug. 31, 2011

Notes to Consolidated Financial Statements [Abstract]

Restricted cash equivalents for collateralization of letter of credit

Restricted Cash Equivalents for Collateralization of Letter of Credit

During fiscal year 2010, we posted a letter of credit of approximately $126 million in favor of the U.S. Department of Education as required in connection with a program review of University of Phoenix by the Department. The long-term restricted cash at August 31, 2010 represents funds used to collateralize this letter of credit. During the third quarter of fiscal year 2011, the Department released the letter of credit and, accordingly, the associated funds used as collateral have been returned to us. Refer to Note 20, Commitments and Contingencies.