Segment Reporting (Tables)

12 Months Ended

Aug. 31, 2011

Segment Reporting (Tables) [Abstract]

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



	Year Ended August 31,
($ in thousands)	2011			2010			2009
Net revenue
University of Phoenix	$	4,322,670		$	4,498,325		$	3,766,600
Apollo Global:
BPP	244,181			251,743			13,062
Other	75,800			78,253			76,083
Total Apollo Global	319,981			329,996			89,145
Other Schools	88,517			95,706			95,045
Corporate	1,854			1,792			2,776
Net revenue	$	4,733,022		$	4,925,819		$	3,953,566
Operating income (loss):
University of Phoenix⁽¹⁾	$	1,270,468		$	1,447,636		$	1,131,331
Apollo Global:
BPP⁽²⁾	(224,335		)	(186,552		)	(6,607		)
Other⁽³⁾	(37,750		)	(31,147		)	(11,431		)
Total Apollo Global	(262,085		)	(217,699		)	(18,038		)
Other Schools	6,870			9,201			6,931
Corporate⁽⁴⁾	(54,009		)	(228,414		)	(54,289		)
Total operating income	961,244			1,010,724			1,065,935
Reconciling items:
Interest income	3,222			2,920			12,591
Interest expense	(8,931		)	(11,891		)	(4,448		)
Other, net	(1,588		)	(685		)	(7,151		)
Income from continuing operations before income taxes	$	953,947		$	1,001,068		$	1,066,927
Depreciation and amortization
University of Phoenix	$	53,681		$	50,770		$	59,337
Apollo Global:
BPP	22,976			32,917			3,115
Other	7,570			7,998			6,801
Total Apollo Global	30,546			40,915			9,916
Other Schools	1,082			982			1,405
Corporate	73,697			54,368			42,692
Total depreciation and amortization	$	159,006		$	147,035		$	113,350
Capital expenditures
University of Phoenix	$	53,801		$	39,623		$	49,031
Apollo Global:
BPP	11,896			10,287			504
Other	8,943			5,994			6,490
Total Apollo Global	20,839			16,281			6,994
Other Schools	72			456			639
Corporate	87,861			111,817			70,692
Total capital expenditures	$	162,573		$	168,177		$	127,356

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⁽¹⁾

University of Phoenix’s fiscal year 2011 operating income includes $22.9 million of restructuring and other charges associated with our real estate rationalization plan and a strategic reduction in force. Refer to Note 4, Restructuring and Other Charges. Operating income for fiscal year 2009 includes an $80.5 million charge resulting from our agreement in principle to settle a qui tam lawsuit pertaining to alleged violations of the False Claims Act. The settlement was finalized by all parties in fiscal year 2010.


⁽²⁾	The operating loss for BPP in fiscal years 2011 and 2010 includes a $219.9 million and $175.9 million, respectively, of goodwill and other intangibles impairment charges. Refer to Note 10, Goodwill and Intangible Assets.


⁽³⁾	Apollo Global - Other’s operating loss in fiscal year 2010 includes an $8.7 million goodwill impairment charge for ULA.


⁽⁴⁾	The operating loss for Corporate in fiscal years 2011 and 2010 includes a net credit of $16.2 million and charges of $178.0 million, respectively, associated with the Securities Class Action (Policeman’s Annuity and Benefit Fund of Chicago). See Note 20, Commitments and Contingencies.

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



	As of August 31,
($ in thousands)	2011		2010		2009
Assets
University of Phoenix	$	1,016,005	$	1,263,024	$	1,112,002
Apollo Global:
BPP⁽¹⁾	303,107		511,124		778,416
Other	146,490		116,483		148,125
Total Apollo Global	449,597		627,607		926,541
Insight Schools⁽²⁾	—		—		26,590
Other Schools	24,073		33,114		37,590
Corporate	1,780,031		1,677,706		1,160,654
Total assets	$	3,269,706	$	3,601,451	$	3,263,377

_______________________________________


⁽¹⁾	We recorded a $219.9 million and a $175.9 million impairment charge for BPP’s goodwill and other intangibles during fiscal years 2011 and 2010, respectively. Refer to Note 10, Goodwill and Intangible Assets.


⁽²⁾	Insight Schools’ assets were held for sale and included in our Corporate caption as of August 31, 2010. Refer to Note 5, Discontinued Operations.

Revenue by geographical area

A summary of financial information by geographical area based on country of domicile for our respective operating locations is as follows:



	Year Ended August 31,
($ in thousands)	2011		2010		2009
Net revenue
United States	$	4,437,079	$	4,617,533	$	3,879,615
United Kingdom	222,732		228,177		13,062
Latin America	50,725		53,765		54,536
Other	22,486		26,344		6,353
Net revenue	$	4,733,022	$	4,925,819	$	3,953,566

Long-lived assets by geographical area



	As of August 31,
($ in thousands)	2011		2010		2009
Long-lived assets⁽¹⁾
United States	$	471,703	$	547,715	$	496,493
United Kingdom	214,073		430,475		698,273
Latin America	86,103		81,870		86,137
Other	35,562		32,229		2,633
Total long-lived assets	$	807,441	$	1,092,289	$	1,283,536

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⁽¹⁾	Long-lived assets include property and equipment, net, goodwill, and intangible assets, net.

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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