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Segment Information | 12 Months Ended
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Aug. 31, 2012
Segment Information [Abstract] |
Segment Information | 1 7. SEGMENT INFORMATION Operating Segment Information Our sales are primarily comprised of training and consulting sales and related products. Based on the consistent nature of our services and products and the types of customers for these services, we function as a single operating segment. However, to improve comparability with previous periods, operating information for our U.S./Canada, international, and corporate services operations is presented below. Our U.S./Canada operations are responsible for the sale and delivery of our training and consulting services in the United States and Canada. Our international sales group includes the financial results of our foreign offices and royalty revenues from licensees. Our corporate services information includes leasing income and certain corporate operating expenses. The Company’s chief operating decision maker is the CEO, and the primary measurement tool used in business unit performance analysis is adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA), which may not be calculated as similarly titled amounts calculated by other companies. For segment reporting purposes, our consolidated Adjusted EBITDA can be calculated as our income or loss from operations excluding share-based compensation, severance, depreciation expense, a mortization expense, and certain other charges. In the normal course of business, we may make structural and cost allocation revisions to our segment information to reflect new reporting responsibilities within the organization. During the fourth quarter of fiscal 2010, we sold the products division of our wholly owned subsidiary in Japan (Note 13). We determined that the operating results of the Japan products division should be presented as discontinued operations and we have excluded the operating results of this discontinued operation from the following table. All prior period segment information has been revised to conform to the most recent classifications and organizational changes. We account for our segment information on the same basis as the accompanying consolidated financial statements. ENTERPRISE INFORMATION
|  | Sales to |  |  |  |  |  |  |  |  |  |  |  |  |
Fiscal Year Ended |  | External |  |  |  | Adjusted |  |  |  |  |  |  | Segment |  | Capital
August 31, 2012 |  | Customers |  | Gross Profit |  | EBITDA |  | Depreciation |  | Amortization |  |  | Assets |  | Expenditures
U.S./Canada | $ | 125,183 | $ | 78,618 | $ | 15,144 | $ | 1,436 | $ | 2,483 |  | $ | 74,387 | $ | 3,934
International |  | 42,052 |  | 32,616 |  | 16,874 |  | 365 |  | 16 |  |  | 12,436 |  | 289
Total |  | 167,235 |  | 111,234 |  | 32,018 |  | 1,801 |  | 2,499 |  |  | 86,823 |  | 4,223
Corporate and eliminations |  | 3,221 |  | 1,449 |  | (4,962) |  | 1,341 |  | - |  |  | 77,257 |  | 507
Consolidated | $ | 170,456 | $ | 112,683 | $ | 27,056 | $ | 3,142 | $ | 2,499 |  | $ | 164,080 | $ | 4,730
Fiscal Year Ended |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
August 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S./Canada | $ | 118,420 | $ | 71,782 | $ | 12,947 | $ | 1,722 | $ | 3,525 |  | $ | 76,152 | $ | 4,020
International |  | 40,011 |  | 31,037 |  | 15,068 |  | 436 |  | 15 |  |  | 10,902 |  | 938
Total |  | 158,431 |  | 102,819 |  | 28,015 |  | 2,158 |  | 3,540 |  |  | 87,054 |  | 4,958
Corporate and eliminations |  | 2,373 |  | 655 |  | (6,858) |  | 1,409 |  | - |  |  | 64,373 |  | 507
Consolidated | $ | 160,804 | $ | 103,474 | $ | 21,157 | $ | 3,567 | $ | 3,540 |  | $ | 151,427 | $ | 5,465
Fiscal Year Ended |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
August 31, 2010 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S./Canada | $ | 98,344 | $ | 60,367 | $ | 7,956 | $ | 1,825 | $ | 3,746 |  | $ | 74,527 | $ | 1,966
International |  | 35,309 |  | 27,148 |  | 10,456 |  | 352 |  | 14 |  |  | 13,205 |  | 86
Total |  | 133,653 |  | 87,515 |  | 18,412 |  | 2,177 |  | 3,760 |  |  | 87,732 |  | 2,052
Corporate and eliminations |  | 3,221 |  | 1,556 |  | (3,972) |  | 1,492 |  | - |  |  | 61,273 |  | 60
Consolidated | $ | 136,874 | $ | 89,071 | $ | 14,440 | $ | 3,669 | $ | 3,760 |  | $ | 149,005 | $ | 2,112
Capital expenditures in the U.S./Canada segment include $2.1 million, $3.1 million, and $0.7 million of spending on capitalized curriculum during the fiscal years ended August 31, 201 2, 201 1 and 20 10. A reconciliation of enterprise Adjusted EBITDA to consolidated income from continuing operations before taxes is provided below (in thousands):
YEAR ENDED |  |  |  |  |  |
AUGUST 31, |  | 2012 |  | 2011 |  | 2010
Enterprise Adjusted EBITDA | $ | 32,018 | $ | 28,015 | $ | 18,412
Corporate expenses |  | (4,962) |  | (6,858) |  | (3,972)
Consolidated Adjusted EBITDA |  | 27,056 |  | 21,157 |  | 14,440
Share-based compensation |  | (3,835) |  | (2,788) |  | (1,099)
Severance costs |  | - |  | (150) |  | (920)
Other |  | - |  | - |  | (954)
Depreciation |  | (3,142) |  | (3,567) |  | (3,669)
Amortization |  | (2,499) |  | (3,540) |  | (3,760)
Consolidated income from |  |  |  |  |  |
operations |  | 17,580 |  | 11,112 |  | 4,038
Interest income |  | 18 |  | 21 |  | 34
Interest expense |  | (2,482) |  | (2,687) |  | (2,892)
Discount on related party receivable |  | (1,369) |  | - |  | -
Income from continuing operations |  |  |  |  |  |
before income taxes | $ | 13,747 | $ | 8,446 | $ | 1,180
Interest expense and interest income are primarily generated at the corporate level and are not allocated. Income taxes are likewise calculated and paid on a corporate level (except for entities that operate in foreign jurisdictions) and are not allocated for analysis purposes. Corporate assets, such as cash, accounts receivable, and other assets are not generally allocated for business analysis purposes. However, inventories, intangible assets, goodwill, identifiable fixed assets, and certain other assets are allocated for analysis purposes. A reconciliation of enterprise assets to consolidated assets is as follows (in thousands):
AUGUST 31, |  | 2012 |  | 2011 |  | 2010
Reportable unit assets | $ | 86,823 | $ | 87,054 | $ | 87,732
Corporate assets |  | 77,323 |  | 64,421 |  | 61,323
Intercompany accounts receivable |  | (66) |  | (48) |  | (50)
| $ | 164,080 | $ | 151,427 | $ | 149,005
Enterprise-Wide Information Our revenues are derived primarily from the United States. However, we also operate wholly-owned offices or contract with licensees to provide products and services in various countries throughout the world. Our consolidated revenues from continuing operations were derived from the following countries (in thousands):
YEAR ENDED |  |  |  |  |  |
AUGUST 31, |  | 2012 |  | 2011 |  | 2010
United States | $ | 121,328 | $ | 115,709 | $ | 97,286
Japan |  | 19,440 |  | 17,263 |  | 13,935
Canada |  | 8,574 |  | 7,080 |  | 6,157
United Kingdom |  | 5,341 |  | 5,143 |  | 5,751
Australia |  | 3,992 |  | 5,058 |  | 4,545
China/Singapore |  | 2,512 |  | 2,185 |  | 1,900
Mexico/Central America |  | 913 |  | 837 |  | 590
Indonesia |  | 705 |  | 610 |  | 461
Thailand |  | 693 |  | 729 |  | 505
Denmark/Scandanavia |  | 660 |  | 725 |  | 568
Korea |  | 607 |  | 861 |  | 1,028
India |  | 576 |  | 515 |  | 422
Brazil |  | 509 |  | 567 |  | 460
Malaysia |  | 458 |  | 429 |  | 362
Others |  | 4,148 |  | 3,093 |  | 2,904
| $ | 170,456 | $ | 160,804 | $ | 136,874
During fiscal 2011, we recognized $16.8 million in sales from our contracts with a division of the United States federal government, which wa s more than ten percent of our consolidated revenues for the year. In fiscal years 2012 and 2010, there were no customers that accounted for more than ten percent of our consolidated revenues. At August 31, 2012 and 2011 we had $7.6 million and $6.9 million receivable from these government contracts that were included in our consolidated accounts receivable. At August 31, 201 2, we had sales offices in Australia, Japan, and the United Kingdom. Our long-lived assets were held in the following locations for the periods indicated (in thousands):
AUGUST 31, |  | 2012 |  | 2011 |  | 2010
United States/Canada | $ | 98,211 | $ | 97,455 | $ | 96,512
Japan |  | 1,359 |  | 1,690 |  | 1,962
United Kingdom |  | 199 |  | 100 |  | 145
Australia |  | 116 |  | 126 |  | 108
| $ | 99,885 | $ | 99,371 | $ | 98,727
Inter-segment sales were immaterial and were eliminated in consolidation.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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