Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jul. 31, 2022 | Aug. 31, 2022 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2022 | |
Current Fiscal Year End Date | --04-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Transition Report | false | |
Entity File Number | 001-11507 | |
Entity Registrant Name | JOHN WILEY & SONS, INC. | |
Entity Central Index Key | 0000107140 | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 13-5593032 | |
Entity Address, Address Line One | 111 River Street | |
Entity Address, City or Town | Hoboken | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07030 | |
City Area Code | 201 | |
Local Phone Number | 748-6000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Class A Common Stock, par value $1.00 per share [Member] | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Class A Common Stock, par value $1.00 per share | |
Trading Symbol | WLY | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 46,673,476 | |
Class B Common Stock, par value $1.00 per share [Member] | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Class B Common Stock, par value $1.00 per share | |
Trading Symbol | WLYB | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 9,029,198 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - UNAUDITED - USD ($) $ in Thousands | Jul. 31, 2022 | Apr. 30, 2022 | ||
Current assets | ||||
Cash and cash equivalents | $ 104,495 | $ 100,397 | ||
Accounts receivable, net of allowance for credit losses of $23.5 million and $21.2 million, respectively | 281,443 | 331,960 | ||
Inventories, net | 33,422 | 36,585 | ||
Prepaid expenses and other current assets | 81,410 | 81,924 | ||
Total current assets | 500,770 | 550,866 | ||
Technology, property and equipment, net | 258,454 | 271,572 | ||
Intangible assets, net | 895,808 | 931,429 | [1] | |
Goodwill | 1,289,242 | 1,302,142 | [2] | |
Operating lease right-of-use assets | 103,196 | 111,719 | ||
Other non-current assets | 181,838 | 193,967 | ||
Total assets | 3,229,308 | 3,361,695 | ||
Current liabilities | ||||
Accounts payable | 56,677 | 77,438 | ||
Accrued royalties | 93,552 | 101,596 | ||
Short-term portion of long-term debt | [3] | 21,875 | 18,750 | |
Contract liabilities | [4] | 407,098 | 538,126 | |
Accrued employment costs | 80,200 | 117,121 | ||
Short-term portion of operating lease liabilities | 19,788 | 20,576 | ||
Other accrued liabilities | 101,554 | 95,812 | ||
Total current liabilities | 780,744 | 969,419 | ||
Long-term debt | 917,236 | 768,277 | ||
Accrued pension liability | 77,511 | 78,622 | ||
Deferred income tax liabilities | 159,717 | 180,065 | ||
Operating lease liabilities | 127,055 | 132,541 | ||
Other long-term liabilities | 84,719 | 90,502 | ||
Total liabilities | 2,146,982 | 2,219,426 | ||
Shareholders' equity | ||||
Preferred stock, $1 par value per share: Authorized shares - 2 million, Issued shares - 0 | 0 | 0 | ||
Additional paid-in-capital | 458,578 | 459,297 | ||
Retained earnings | 1,883,857 | 1,921,160 | ||
Accumulated other comprehensive loss, net of tax | (523,289) | (508,146) | ||
Less treasury shares at cost (Class A - 23,557 and 23,515 as of July 31, 2022 and April 30, 2022, respectively; Class B - 3,924 and 3,924 as of July 31, 2022 and April 30, 2022, respectively) | (820,002) | (813,224) | ||
Total shareholders' equity | 1,082,326 | 1,142,269 | ||
Total liabilities and shareholders' equity | 3,229,308 | 3,361,695 | ||
Class A [Member] | ||||
Shareholders' equity | ||||
Common stock | 70,226 | 70,226 | ||
Class B [Member] | ||||
Shareholders' equity | ||||
Common stock | $ 12,956 | $ 12,956 | ||
[1]The developed technology balance as of April 30, 2022 is presented net of accumulated impairments and write-offs of $2.8 million. The indefinite-lived brands and trademarks as of April 30, 2022 is net of accumulated impairments of $93.1 million.[2]The Research segment was previously referred to as Research Publishing & Platforms.[3]Relates to our term loan A under the Amended and Restated RCA.[4]The sales return reserve recorded in Contract liabilities is $29.6 million and $31.1 million, as of July 31, 2022 and April 30, 2022, respectively. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - UNAUDITED (Parenthetical) - USD ($) shares in Thousands, $ in Millions | Jul. 31, 2022 | Apr. 30, 2022 |
Current assets | ||
Accounts receivable, allowance for credit losses | $ 23.5 | $ 21.2 |
Shareholders' equity | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 2,000 | 2,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Class A [Member] | ||
Shareholders' equity | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 180,000 | 180,000 |
Common stock, shares issued (in shares) | 70,226 | 70,226 |
Treasury stock (in shares) | 23,557 | 23,515 |
Class B [Member] | ||
Shareholders' equity | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 72,000 | 72,000 |
Common stock, shares issued (in shares) | 12,956 | 12,956 |
Treasury stock (in shares) | 3,924 | 3,924 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF NET (LOSS) INCOME - UNAUDITED - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | ||
CONDENSED CONSOLIDATED STATEMENTS OF NET (LOSS) INCOME - UNAUDITED [Abstract] | |||
Revenue, net | $ 487,569 | $ 488,388 | |
Costs and expenses | |||
Cost of sales | 174,031 | 165,956 | |
Operating and administrative expenses | 282,751 | 260,589 | |
Restructuring and related charges (credits) | [1] | 22,441 | (276) |
Amortization of intangible assets | 25,311 | 21,151 | |
Total costs and expenses | 504,534 | 447,420 | |
Operating (loss) income | (16,965) | 40,968 | |
Interest expense | (6,332) | (4,639) | |
Foreign exchange transaction (losses) gains | (616) | 370 | |
Gain on sale of certain assets | 0 | 3,750 | |
Other income, net | 526 | 3,553 | |
(Loss) income before taxes | (23,387) | 44,002 | |
(Benefit) Provision for income taxes | (5,552) | 30,172 | |
Net (loss) income | $ (17,835) | $ 13,830 | |
(Loss) Earnings per share: | |||
Basic (in dollars per share) | $ (0.32) | $ 0.25 | |
Diluted (in dollars per share) | $ (0.32) | $ 0.24 | |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 55,736 | 55,869 | |
Diluted (in shares) | 55,736 | 56,599 | |
[1]See Note 9, “Restructuring and Related Charges (Credits)” for these charges by segment. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - UNAUDITED [Abstract] | ||
Net (loss) income | $ (17,835) | $ 13,830 |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustment | (19,780) | (5,937) |
Unamortized retirement credits, net of tax (expense) of $(1,480) and $(443), respectively | 5,081 | 1,589 |
Unrealized (loss) gain on interest rate swaps, net of tax benefit (expense) of $61 and $(173), respectively | (444) | 538 |
Total other comprehensive (loss) income | (15,143) | (3,810) |
Comprehensive (loss) income | $ (32,978) | $ 10,020 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - UNAUDITED (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Other comprehensive (loss) income: | ||
Unamortized retirement credits, tax (expense) | $ (1,480) | $ (443) |
Unrealized (loss) gain on interest rate swaps, tax benefit (expense) | $ 61 | $ (173) |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Apr. 30, 2022 | ||
Operating activities | ||||
Net (loss) income | $ (17,835) | $ 13,830 | ||
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Amortization of intangible assets | 25,311 | 21,151 | ||
Amortization of product development assets | 8,288 | 9,058 | ||
Depreciation and amortization of technology, property and equipment | 24,680 | 24,357 | ||
Restructuring and related charges (credits) | [1] | 22,441 | (276) | |
Stock-based compensation expense | 7,123 | 6,341 | ||
Employee retirement plan expense | 8,325 | 6,239 | ||
Foreign exchange transaction losses (gains) | 616 | (370) | ||
Gain on sale of certain assets | 0 | (3,750) | ||
Other noncash (credits) charges | (10,791) | 27,672 | ||
Net change in operating assets and liabilities | (158,097) | (189,026) | ||
Net cash used in operating activities | (89,939) | (84,774) | ||
Investing activities | ||||
Product development spending | (5,825) | (5,670) | ||
Additions to technology, property and equipment | (17,923) | (17,910) | ||
Businesses acquired in purchase transactions, net of cash acquired | (96) | (3,032) | ||
Proceeds related to the sale of certain assets | 0 | 3,375 | ||
Acquisitions of publication rights and other | 2,038 | (295) | ||
Net cash used in investing activities | (21,806) | (23,532) | ||
Financing activities | ||||
Repayments of long-term debt | (111,800) | (41,300) | ||
Borrowings of long-term debt | 268,673 | 184,003 | ||
Purchases of treasury shares | (10,000) | (7,367) | ||
Change in book overdrafts | (4,694) | (12,780) | ||
Cash dividends | (19,468) | (19,307) | ||
Impact of tax withholding on stock-based compensation and other | (4,722) | (4,160) | ||
Net cash provided by financing activities | 117,989 | 99,089 | ||
Effects of exchange rate changes on cash, cash equivalents, and restricted cash | (1,985) | (1,586) | ||
Cash reconciliation: | ||||
Cash and cash equivalents | 100,397 | 93,795 | $ 93,795 | |
Restricted cash included in Prepaid expenses and other current assets | 330 | 564 | 564 | |
Balance at beginning of period | 100,727 | 94,359 | 94,359 | |
Increase/(decrease) for the period | 4,259 | (10,803) | ||
Cash and cash equivalents | 104,495 | 82,982 | 100,397 | |
Restricted cash included in Prepaid expenses and other current assets | 491 | 574 | 330 | |
Balance at end of period | 104,986 | 83,556 | $ 100,727 | |
Cash paid during the period for: | ||||
Interest | 5,511 | 4,183 | ||
Income taxes, net of refunds | $ 14,075 | $ 6,441 | ||
[1]See Note 9, “Restructuring and Related Charges (Credits)” for these charges by segment. |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - UNAUDITED - USD ($) $ in Thousands | Common Stock [Member] Class A [Member] | Common Stock [Member] Class B [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] Class A [Member] | Additional Paid-in Capital [Member] Class B [Member] | Retained Earnings [Member] | Retained Earnings [Member] Class A [Member] | Retained Earnings [Member] Class B [Member] | Accumulated Other Comprehensive Loss, Net of Tax [Member] | Accumulated Other Comprehensive Loss, Net of Tax [Member] Class A [Member] | Accumulated Other Comprehensive Loss, Net of Tax [Member] Class B [Member] | Treasury Stock [Member] | Treasury Stock [Member] Class A [Member] | Treasury Stock [Member] Class B [Member] | Total | Class A [Member] | Class B [Member] |
Balance at Apr. 30, 2021 | $ 70,208 | $ 12,974 | $ 444,358 | $ 1,850,058 | $ (490,790) | $ (795,517) | $ 1,091,291 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Restricted shares issued under stock-based compensation plans | 0 | 0 | (6,342) | (3) | 0 | 6,409 | 64 | ||||||||||
Impact of tax withholding on stock-based compensation and other | 0 | 0 | 310 | 0 | 0 | (4,470) | (4,160) | ||||||||||
Stock-based compensation expense | 0 | 0 | 7,364 | 0 | 0 | 0 | 7,364 | ||||||||||
Purchases of treasury shares | 0 | 0 | 0 | 0 | 0 | (7,367) | (7,367) | ||||||||||
Common stock dividends | 0 | 0 | $ 0 | $ 0 | $ (16,185) | $ (3,122) | $ 0 | $ 0 | $ 0 | $ 0 | $ (16,185) | $ (3,122) | |||||
Common stock class conversions | 3 | (3) | 0 | 0 | 0 | 0 | 0 | ||||||||||
Comprehensive (loss) income, net of tax | 0 | 0 | 0 | 13,830 | (3,810) | 0 | 10,020 | ||||||||||
Balance at Jul. 31, 2021 | 70,211 | 12,971 | 445,690 | 1,844,578 | (494,600) | (800,945) | 1,077,905 | ||||||||||
Balance at Apr. 30, 2022 | 70,226 | 12,956 | 459,297 | 1,921,160 | (508,146) | (813,224) | 1,142,269 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Restricted shares issued under stock-based compensation plans | 0 | 0 | (7,857) | 0 | 0 | 7,944 | 87 | ||||||||||
Impact of tax withholding on stock-based compensation and other | 0 | 0 | 0 | 0 | 0 | (4,722) | (4,722) | ||||||||||
Stock-based compensation expense | 0 | 0 | 7,138 | 0 | 0 | 0 | 7,138 | ||||||||||
Purchases of treasury shares | 0 | 0 | 0 | 0 | 0 | (10,000) | (10,000) | ||||||||||
Common stock dividends | 0 | 0 | $ 0 | $ 0 | $ (16,330) | $ (3,138) | $ 0 | $ 0 | $ 0 | $ 0 | $ (16,330) | $ (3,138) | |||||
Comprehensive (loss) income, net of tax | 0 | 0 | 0 | (17,835) | (15,143) | 0 | (32,978) | ||||||||||
Balance at Jul. 31, 2022 | $ 70,226 | $ 12,956 | $ 458,578 | $ 1,883,857 | $ (523,289) | $ (820,002) | $ 1,082,326 |
CONDENSED CONSOLIDATED STATEM_8
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - UNAUDITED (Parenthetical) - $ / shares | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Class A [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Common stock dividend (in dollars per share) | $ 0.3475 | $ 0.3450 |
Class B [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Common stock dividend (in dollars per share) | $ 0.3475 | $ 0.3450 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jul. 31, 2022 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1 Basis of Presentation Throughout this report, when we refer to “Wiley,” the “Company,” “we,” “our,” or “us,” we are referring to John Wiley & Sons, Inc. and all our subsidiaries, except where the context indicates otherwise. Our Unaudited Condensed Consolidated Financial Statements include all the accounts of the Company and our subsidiaries. We have eliminated all intercompany transactions and balances in consolidation. In the opinion of management, the accompanying Unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Unaudited Condensed Consolidated Financial Condition, Results of Operations, Comprehensive Income and Cash Flows for the periods presented. Operating results for the interim period are not necessarily indicative of the results expected for the full year. All amounts are in thousands, except per share amounts, and approximate due to rounding. These financial statements should be read in conjunction with the most recent audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2022 as filed with the SEC on June 24, 2022 (2022 Form 10-K). Our Unaudited Condensed Consolidated Financial Statements were prepared in accordance with the interim reporting requirements of the SEC. As permitted under those rules, annual footnotes or other financial information that are normally required by US GAAP have been condensed or omitted. The preparation of our Unaudited Condensed Consolidated Financial Statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Certain prior year amounts have been reclassified to conform to the current year’s presentation. |
Recent Accounting Standards
Recent Accounting Standards | 3 Months Ended |
Jul. 31, 2022 | |
Recent Accounting Standards [Abstract] | |
Recent Accounting Standards | Note 2 Recent Accounting Standards Recently Adopted Accounting Standards Convertible Debt Instruments, Derivatives and EPS In August 2020, the FASB issued ASU 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40)”. This ASU reduces the number of accounting models for convertible debt instruments and convertible preferred stock, as well as amend the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. In addition, this ASU improves and amends the related earnings-per-share (EPS) guidance. We adopted ASU 2020-06 on May 1, 2022. The adoption did not have an impact on our consolidated financial statements at the time of adoption. Recently Issued Accounting Standards Accounting for Contract Assets and Contract Liabilities from Contracts with Customers In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”. This ASU requires that an acquirer recognize, and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606 “Revenue from Contracts with Customers” (Topic 606) as if it had originated the contracts. Generally, this would result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements if the acquiree prepared financial statements in accordance with US GAAP. This standard is effective for us on May 1, 2023, including interim periods within the fiscal year. Early adoption is permitted. The standard is applied prospectively to business combinations occurring on or after the effective date of the amendments. The impact will be based on future business combinations after we adopt the standard. |
Acquisitions
Acquisitions | 3 Months Ended |
Jul. 31, 2022 | |
Acquisitions [Abstract] | |
Acquisitions | Note 3 Acquisitions Pro forma financial information related to these acquisitions has not been provided as it is not material to our consolidated results of operations. Fiscal Year 2022 XYZ Media On December 29, 2021, we completed the acquisition of certain assets of XYZ Media Inc. (XYZ Media). XYZ Media is a company that generates leads for higher education institutions. The results of XYZ Media are included in our Education Services segment results. The fair value of consideration transferred at the date of acquisition was $45.4 million which included $38.0 million of cash, and approximately 129 thousand shares of Wiley Class A common stock, or approximately $7.4 million. We financed the payment of the cash consideration with a combination of cash on hand and borrowings under our Amended and Restated RCA (as defined below in Note 15, “Debt and Available Credit Facilities”). XYZ Media’s revenue and operating loss included in our Education Services segment results for the months ended was $ million and $ million, respectively. During the three months ended July 31, 2022, no revisions were made to the allocation of the consideration transferred to the assets acquired and liabilities assumed. We recorded the preliminary fair value of the assets acquired and liabilities assumed on the acquisition date, which included a preliminary allocation of $ million of goodwill allocated to the Education Services segment and $ million of intangible assets subject to amortization. The allocation of the total consideration transferred to the assets acquired, including intangible assets and goodwill, and the liabilities assumed is preliminary, and could be revised as a result of additional information obtained due to the finalization of the -party valuation report, leases and related commitments, tax related matters and contingencies and certain assets and liabilities, including receivables and payables, but such amounts will be finalized within the measurement period, which will not exceed year from the acquisition date. Other Acquisitions in Fiscal Year On November 30, 2021 , we acquired the assets of the eJournalPress business (EJP) from Precision Computer Works, Inc. EJP is a technology platform company with an established journal submission and peer review management system. On October 1, 2021, we completed the acquisition of certain assets of J&J Editorial Services, LLC. (J&J). J&J is a publishing services company providing expert offerings in editorial operations, production, copyediting, system support and consulting. The results of J&J are included in our Research segment results. We also completed the acquisition of two immaterial business included in our Research segment and the acquisition of one immaterial business in our Education Services segment. The aggregate preliminary fair value of consideration transferred for these other acquisitions was approximately $ million which included $ million of cash paid at the acquisition dates and $ million of additional cash to be paid after the acquisition dates. The fair value of the cash consideration transferred, net of $ million of cash acquired was approximately $ million. The incremental revenue and operating loss included in the Research segment for the three months ended July 31, 2022 related to these other acquisitions was approximately $4.6 million and $(2.3), respectively. During the three months ended July 31, 2022, no revisions were made to the allocation of the consideration transferred to the assets acquired and liabilities assumed. Associated with these other acquisitions, we recorded the preliminary aggregate excess purchase price over identifiable net tangible and intangible assets acquired and liabilities assumed, which included a preliminary allocation The allocation of the total consideration transferred to the assets acquired, including intangible assets and goodwill, and the liabilities assumed is preliminary, and could be revised as a result of additional information obtained due to the finalization of the third -party valuation report, leases and related commitments, tax related matters and contingencies and certain assets and liabilities, including receivables and payables, but such amounts will be finalized within the measurement period, which will not exceed one year from the acquisition dates. |
Revenue Recognition, Contracts
Revenue Recognition, Contracts with Customers | 3 Months Ended |
Jul. 31, 2022 | |
Revenue Recognition, Contracts with Customers [Abstract] | |
Revenue Recognition, Contracts with Customers | Note 4 Revenue Recognition, Contracts with Customers Disaggregation of Revenue The following table presents our revenue from contracts with customers disaggregated by segment and product type. Three Months Ended July 31, 2022 2021 Research (1) : Research Publishing (2) $ 239,523 $ 243,284 Research Solutions (2) 35,390 31,472 Total Research 274,913 274,756 Academic & Professional Learning: Education Publishing 63,056 66,380 Professional Learning 69,903 72,884 Total Academic & Professional Learning 132,959 139,264 Education Services: University Services (3) 47,811 54,968 Talent Development Services (3) 31,886 19,400 Total Education Services 79,697 74,368 Total Revenue $ 487,569 $ 488,388 (1) The Research segment was previously referred to as Research Publishing & Platforms. (2) As previously announced, in May 2022 our revenue by product type previously referred to as Research Platforms was changed to Research Solutions. Research Solutions includes infrastructure and publishing services that help societies and corporations thrive in a complex knowledge ecosystem. In addition to Platforms (Atypon), certain product offerings such as corporate sales which included the recent acquisitions of Madgex Holdings Limited (Madgex), and Bio-Rad Laboratories Inc.’s Informatics products (Informatics) that were previously included in Research Publishing moved to Research Solutions to align with our strategic focus. Research Solutions also includes product offerings related to certain recent acquisitions such as J&J, and EJP. Prior period results have been revised to the new presentation. There were no changes to the total Research segment or our consolidated financial results. (3) In May 2022, we moved the WileyNXT product offering from Talent Development Services to University Services and the prior period results have been included in University Services. The revenue reclassified was $ million for the months ended . There were changes to the total Education Services segment or our total consolidated financial results. The following information describes our disaggregation of revenue by segment and product type. Overall, the majority of our revenue is recognized over time. Research Research customers include academic, corporate, government, and public libraries, funders of research, researchers, scientists, clinicians, engineers and technologists, scholarly and professional societies, and students and professors. Research products are sold and distributed globally through multiple channels, including research libraries and library consortia, independent subscription agents, direct sales to professional society members, and other customers. Publishing centers include Australia, China, Germany, India, the United Kingdom (UK), and the United States (US). The majority of revenue generated from Research products is recognized over time. Total Research revenue was $274.9 million in the three months ended July 31, 2022. We disaggregated revenue by Research Publishing and Research Solutions to reflect the different type of products and services provided. Research Publishing Products Research Publishing products provide scientific, technical, medical, and scholarly journals, as well as related content and services to academic, corporate, and government libraries, learned societies, and individual researchers and other professionals. Research Publishing revenue was $239.5 million in the three months ended July 31, 2022 and the majority is recognized over time. Research Publishing products generate approximately 87% of its revenue from contracts with its customers from Journal Subscriptions (pay to read), Open Access (pay to publish) and Transformational Agreements (read and publish) and the remainder from Licensing, Reprints, Backfiles, and Other. Research Solutions Products and Services Research Solutions services include Atypon Systems, Inc (Atypon) a publishing software and service provider that enables scholarly and professional societies and publishers to deliver, host, enhance, market, and manage their content on the web through the Literatum J&J Editorial Services, LLC. (J&J) and the eJournalPress (EJP) business. J&J is a publishing services company providing expert offerings in editorial operations, production, copyediting, system support and consulting. EJP is a technology platform company with an established journal submission and peer-review management system. Academic & Professional Learning Academic & Professional Learning provides Education Publishing and Professional Learning products and services including scientific, professional, and education print and digital books, digital courseware, and test preparation services to libraries, corporations, students, professionals, and researchers, as well as learning, development, and assessment services for businesses and professionals. Communities served include business, finance, accounting, workplace learning, management, leadership, technology, behavioral health, engineering/architecture, science and medicine, and education. Products are developed for worldwide distribution through multiple channels, including chain and online booksellers, libraries, colleges and universities, corporations, direct to consumer, web sites, distributor networks and other online applications. Publishing centers include Australia, Germany, India, the UK, and the US. Total Academic & Professional Learning revenue was $ million in the . We disaggregated revenue by type of products provided. Academic & Professional Learning products are Education Publishing and Professional Learning. Academic & Professional Learning revenues are mainly recognized at a point in time . Education Publishing Products Education Publishing products revenue was $63.1 million in the three months ended July 31, 2022. Education Publishing products generate approximately 74% of its revenue from contracts with its customers from Education (print and digital) Publishing, which is recognized at a point in time, and 7% from Digital Courseware which is recognized over time. The remainder of its revenues were from Test Preparation and Certification, and Licensing and Other, which has a mix of revenue recognized at a point in time and over time. Professional Learning Products Professional Learning products revenue was $69.9 million in the three months ended July 31, 2022. Professional Learning (print and digital) products generate approximately 59% of revenue from contracts with its customers from Professional Publishing, and Licensing and Other, and both are mainly recognized at a point in time. Approximately 41% of Professional Learning products revenue is from contracts with its customers from Corporate Training and Corporate Learning, which is recognized mainly over time. Education Services Education Services revenue was $79.7 million in the three months ended July 31, 2022 and the majority is recognized over time. We disaggregated revenue by type of services provided, which are University Services and Talent Development Services. University Services University Services revenue was $47.8 million in the three months ended July 31, 2022 and is mainly recognized over time. University Services primarily engages in the comprehensive management of online degree programs for universities and has grown to include a broad array of technology enabled service offerings that address our partner specific pain points. Increasingly, this includes delivering career credentialing education that advances specific careers with in-demand skills. Talent Development Services Talent Development Services revenue was $ million in the and is recognized at the point in time the services are provided to its customers. Talent Development Services Accounts Receivable, net and Contract Liability Balances When consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue when, or as, control of the products or services are transferred to the customer and all revenue recognition criteria have been met. The following table provides information about accounts receivable, net and contract liabilities from contracts with customers. July 31, 2022 April 30, 2022 Increase/ (Decrease) Balances from contracts with customers: Accounts receivable, net $ 281,443 $ 331,960 $ (50,517 ) Contract liabilities (1) 407,098 538,126 (131,028 ) Contract liabilities (included in Other long-term liabilities) $ 20,171 $ 19,072 $ 1,099 (1) The sales return reserve recorded in Contract liabilities is $29.6 million and $31.1 million, as of July 31, 2022 and April 30, 2022, respectively. For the three months ended July 31, 2022, we estimate that we recognized revenue of approximately that was included in the current contract liability at April 30, 2022 . The decrease in contract liabilities excluding the sales return reserve, was primarily driven by revenue earned on journal subscription agreements, transformational agreements, and open access, partially offset by renewals of journal subscription agreements, transformational agreements, and open access. Remaining Performance Obligations included in Contract Liability As of July 31, 2022, the aggregate amount of the transaction price allocated to the remaining performance obligations is approximately $427.3 million, which included the sales return reserve of $29.6 million. Excluding the sales return reserve, we expect that approximately $377.5 million will be recognized in the next twelve months with the remaining $20.2 million to be recognized thereafter Assets Recognized for the Costs to Fulfill a Contract Costs to fulfill a contract are directly related to a contract that will be used to satisfy a performance obligation in the future and are expected to be recovered. These costs are amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. These types of costs are incurred in the following product types, (1) Research Solutions services, which includes customer specific implementation costs per the terms of the contract and (2) University Services, which includes customer specific costs to develop courses per the terms of the contract. Our assets associated with incremental costs to fulfill a contract were $10.7 million and $10.9 million at July 31, 2022 and April 30, 2022, respectively, and are included within Other non-current assets on our Unaudited Condensed Consolidated Statements of Financial Position. We recorded amortization expense of $1.2 million and $1.5 million in the three months ended July 31, 2022 and 2021, respectively, related to these assets within Cost of sales on our Unaudited Condensed Consolidated Statements of Net (Loss) Income. Sales and value-added taxes are excluded from revenues. Shipping and handling costs, which are primarily incurred within the Academic & Professional Learning segment, occur before the transfer of control of the related goods. Therefore, in accordance with the revenue standard, it is not considered a promised service to the customer and would be considered a cost to fulfill our promise to transfer the goods. Costs incurred for third party shipping and handling are primarily reflected in Operating and administrative expenses on our Unaudited Condensed Consolidated Statements of Net (Loss) Income. We incurred $6.5 million and $6.8 million in shipping and handling costs in the three months ended July 31, 2022 and 2021, respectively. |
Operating Leases
Operating Leases | 3 Months Ended |
Jul. 31, 2022 | |
Operating Leases [Abstract] | |
Operating Leases | Note 5 Operating Leases Lessee We have contractual obligations as a lessee with respect to offices, warehouses and distribution centers, automobiles, and office equipment. We determine if an arrangement is a lease at inception of the contract in accordance with guidance detailed in the lease standard and we perform the lease classification test as of the lease commencement date. Right-of-use (ROU) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The present value of the lease payments is calculated using an incremental borrowing rate, which was determined based on the rate of interest that we would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. We use an unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate. Under the leasing standard, leases that are more than one year in duration are capitalized and recorded on our Unaudited Condensed Consolidated Statements of Financial Position. Some of our leases offer an option to extend the term of such leases. We utilize the reasonably certain threshold criteria in determining which options we will exercise. Furthermore, some of our lease payments are based on index rates with minimum annual increases. These represent fixed payments and are captured in the future minimum lease payments calculation. For operating leases, the ROU assets and lease liabilities are presented on our Condensed Consolidated Statement of Financial Position as follows: July 31, 2022 April 30, 2022 Operating lease ROU assets $ 103,196 $ 111,719 Short-term portion of operating lease liabilities 19,788 20,576 Operating lease liabilities, non-current $ 127,055 $ 132,541 During the three months ended July 31, 2022, we added less than $0.1 million to the ROU assets and operating lease liabilities due to new leases, as well as modifications and remeasurements to our existing operating leases. As a result of the Fiscal Year Restructuring Program, which included the exit of certain leased office space beginning in the months ended , we incurred an initial pretax restructuring charge of $ million in the months ended . This initial charge included severance, impairment charges and acceleration of expense associated with certain operating lease ROU assets. See Note , “Restructuring and Related Charges (Credits)” for more information on this program and the charges incurred. Our total net lease costs are as follows: Three Months Ended July 31, 2022 2021 Operating lease cost $ 5,182 $ 5,917 Variable lease cost 278 344 Short-term lease cost 115 20 Sublease income (198 ) (201 ) Total net lease cost (1) $ 5,377 $ 6,080 (1) Total net lease cost does not include those costs and sublease income included in Restructuring and related charges (credits) on our Unaudited Condensed Consolidated Statements of Net (Loss) Income. This includes operating leases we identified a See Note 9 , “Restructuring and Related Charges (Credits)” for more information on these programs. Other supplemental information includes the following: Three Months Ended July 31, 2022 2021 Weighted-average remaining contractual lease term (years) 8 9 Weighted-average discount rate 5.87 % 5.83 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,341 $ 7,974 The table below reconciles the undiscounted cash flows for the first five years and total of the remaining years to the operating lease liabilities recorded on our Unaudited Condensed Consolidated Statement of Financial Position as of July 31, 2022: Fiscal Year Operating Lease Liabilities 2023 (remaining 9 months) $ 20,619 2024 25,940 2025 24,556 2026 22,226 2027 17,871 Thereafter 77,513 Total future undiscounted minimum lease payments 188,725 Less: Imputed interest 41,882 Present value of minimum lease payments 146,843 Less: Current portion 19,788 Noncurrent portion $ 127,055 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jul. 31, 2022 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 6 Stock-Based Compensation We have stock-based compensation plans under which employees may be granted performance-based stock awards, other restricted stock awards and options. We recognize the grant date fair value of stock-based compensation in net income on a straight-line basis, net of estimated forfeitures over the requisite service period. The measurement of performance for performance-based stock awards is based on actual financial results for targets established up to in advance, or less. Performance-Based and Other Restricted Stock Activity Under the terms of our long-term incentive plans, performance-based restricted unit awards are payable in restricted shares of our Class A Common Stock upon the achievement of certain or less financial performance-based targets. During each period or less, we adjust compensation expense based upon our best estimate of expected performance. We may also grant individual restricted unit awards payable in restricted shares of our Class A Common Stock to key employees in connection with their employment. The following table summarizes awards we granted to employees (shares in thousands): Three Months Ended July 31, 2022 2021 Restricted Stock Awards granted (shares) 494 433 Weighted average fair value of grant $ 45.99 $ 57.36 Stock Option Activity We granted and stock option awards during the months ended and , respectively. Options are exercisable over a maximum period of from the date of grant. These options generally vest , , , and on , or on each anniversary date after the award is granted. The following table provides the estimated weighted average fair value for options granted during the months ended and using the Black-Scholes option-pricing model Three Months Ended July 31, 2022 2021 Weighted average fair value of options on grant date $ 9.42 $ 11.80 Weighted Average Assumptions Expected life of options (years) 5.9 6.3 Risk-free interest rate 0.5 % 1.1 % Expected volatility 31.2 % 30.6 % Expected dividend yield 3.0 % 2.4 % Fair value of common stock on grant date $ 45.99 $ 57.34 Exercise price of stock option grant $ 45.99 $ 63.07 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Jul. 31, 2022 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note 7 Accumulated Other Comprehensive Loss Changes in Accumulated other comprehensive loss by component, net of tax, for the three months ended July 31, 2022 and 2021 were as follows: Foreign Currency Translation Unamortized Retirement Costs Interest Rate Swaps Total Balance at April 30, 2022 $ (329,566 ) $ (182,226 ) $ 3,646 $ (508,146 ) Other comprehensive (loss) income before reclassifications (19,780 ) 3,979 (737 ) (16,538 ) Amounts reclassified from Accumulated other comprehensive loss — 1,102 293 1,395 Total other comprehensive (loss) income (19,780 ) 5,081 (444 ) (15,143 ) Balance at July 31, 2022 $ (349,346 ) $ (177,145 ) $ 3,202 $ (523,289 ) Balance at April 30, 2021 $ (257,941 ) $ (228,146 ) $ (4,703 ) $ (490,790 ) Other comprehensive (loss) income before reclassifications (5,937 ) 142 (293 ) (6,088 ) Amounts reclassified from Accumulated other comprehensive loss — 1,447 831 2,278 Total other comprehensive (loss) income (5,937 ) 1,589 538 (3,810 ) Balance at July 31, 2021 $ (263,878 ) $ (226,557 ) $ (4,165 ) $ (494,600 ) During the three months ended July 31, 2022 and 2021, pretax actuarial losses included in Unamortized Retirement Costs of approximately $1.5 million and $1.8 million, respectively, were amortized from Accumulated other comprehensive loss and recognized as pension and post-retirement benefit expense primarily in Operating and administrative expenses and Other income, net on our Unaudited Condensed Consolidated Statements of Net (Loss) Income. Our policy for releasing the income tax effects from accumulated other comprehensive (loss) income is to release when the corresponding pretax accumulated other comprehensive (loss) income items are reclassified to earnings. |
Reconciliation of Weighted Aver
Reconciliation of Weighted Average Shares Outstanding | 3 Months Ended |
Jul. 31, 2022 | |
Reconciliation of Weighted Average Shares Outstanding [Abstract] | |
Reconciliation of Weighted Average Shares Outstanding | Note 8 Reconciliation of Weighted Average Shares Outstanding A reconciliation of the shares used in the computation of (loss) earnings per share follows (shares in thousands): Three Months Ended July 31, 2022 2021 Weighted average shares outstanding 55,736 55,869 Shares used for basic (loss) earnings per share 55,736 55,869 Dilutive effect of unvested restricted stock units and other stock awards — 730 Shares used for diluted (loss) earnings per share 55,736 56,599 Antidilutive options to purchase Class A common shares, restricted shares, warrants to purchase Class A common shares, and contingently issuable restricted stock which are excluded from the table above 1,211 930 In calculating diluted net loss per common share for the three months ended July 31, 2022 our diluted weighted average number of common shares outstanding excludes the effect of unvested restricted stock units and other stock awards as the effect was anti-dilutive. This occurs when a US GAAP net loss is reported and the effect of using dilutive shares is antidilutive. The shares associated with performance-based stock awards are considered contingently issuable shares and will be included in the diluted weighted average number of common shares outstanding when they have met the performance conditions and when their effect is dilutive |
Restructuring and Related Charg
Restructuring and Related Charges (Credits) | 3 Months Ended |
Jul. 31, 2022 | |
Restructuring and Related Charges (Credits) [Abstract] | |
Restructuring and Related Charges (Credits) | Note 9 Restructuring and Related Charges (Credits) Fiscal Year 2023 Restructuring Program In May 2022, the Company initiated a global program to restructure and align our cost base with current and anticipated future market conditions (Fiscal Year 2023 Restructuring Program). The following tables summarize the pretax restructuring charges related to this program: Three Months Ended July 31, 2022 Charges by Segment: Research $ 81 Academic & Professional Learning 5,914 Education Services 830 Corporate Expenses 14,916 Total Restructuring and Related Charges $ 21,741 Charges by Activity: Severance and termination benefits $ 12,097 Impairment of operating lease ROU assets and property and equipment 6,106 Acceleration of expense related to operating lease ROU assets and property and equipment 1,840 Facility related charges, net 1,698 Total Restructuring and Related Charges $ 21,741 This program includes the exit of certain leased office space beginning in the three months ended July 31, 2022 and the reduction of our occupancy at other facilities. We are reducing our real estate square footage occupancy by approximately . In addition, the program includes severance related charges for the elimination of certain positions. These actions resulted in an initial pretax restructuring charge of $ million in the three months ended July 31, 2022 . This restructuring charge primarily reflects the following charges: • Severance charges of $12.1 million for the elimination of certain positions, • Impairment charges of $6.1 million recorded in our corporate category, which included the impairment of operating lease ROU assets of $2.9 million related to certain leases that will be subleased, and the related property and equipment of $3.2 million described further below, and • Acceleration of expense of $1.8 million, which included the acceleration of rent expense associated with operating lease ROU assets of $0.9 million related to certain leases that will be abandoned or terminated and the related depreciation and amortization of property and equipment of $0.9 million. Due to the actions taken above, we tested the operating lease ROU assets and the related property and equipment for those being subleased for recoverability by comparing the carrying value of the asset group to an estimate of the future undiscounted cash flows expected to result from the use and eventual disposition of the asset group. Based on the results of the recoverability test, we determined that the undiscounted cash flows of the asset groups were below the carrying values. Therefore, there was an indication of impairment. We then determined the fair value of the asset groups by utilizing the present value of the estimated future cash flows attributable to the assets. The fair value of these operating lease ROU assets and the property and equipment immediately subsequent to the impairment was $ million and was categorized as Level within the FASB ASC Topic , “Fair Value Measurements” fair value hierarchy. In addition, we also incurred ongoing facility-related costs associated with certain properties that resulted in additional restructuring charges of $ million in the months ended . The following table summarizes the activity for the Fiscal Year 2023 Restructuring Program liability for the three months ended July 31, 2022: April 30, 2022 Charges Payments Foreign Translation & Other Adjustments July 31, 2022 Severance and termination benefits $ — $ 12,097 $ (3,795 ) $ 30 $ 8,332 Total $ — $ 12,097 $ (3,795 ) $ 30 $ 8,332 The restructuring liability for accrued severance and termination benefits is reflected in Accrued employment costs on our Unaudited Condensed Consolidated Statement of Financial Position as of Business Optimization Program Beginning in fiscal year 2020, we initiated a multi-year Business Optimization Program (the Business Optimization Program) to drive efficiency improvement and operating savings. The following tables summarize the pretax restructuring charges (credits) related to this program: Three Months Ended July 31, Total Charges 2022 2021 Incurred to Date Charges (Credits) by Segment: Research $ — $ 216 $ 3,882 Academic & Professional Learning (124 ) 171 13,126 Education Services 3 (34 ) 4,316 Corporate Expenses 821 (629 ) 44,211 Total Restructuring and Related Charges (Credits) $ 700 $ (276 ) $ 65,535 Charges (Credits) by Activity: Severance and termination benefits $ (114 ) $ (614 ) $ 35,005 Impairment of operating lease ROU assets and property and equipment — — 15,079 Acceleration of expense related to operating lease ROU assets and property and equipment — — 3,378 Facility related charges, net 814 338 10,333 Other activities — — 1,740 Total Restructuring and Related Charges (Credits) $ 700 $ (276 ) $ 65,535 The credits in severance and termination benefits activities for the months ended and , primarily reflects changes in the number of headcount reductions and estimates for previously accrued costs. Facilities related charges include sublease income related to those operating leases we had identified in the year ended April 30, 2021 a The following table summarizes the activity for the Business Optimization Program liability for the three months ended July 31, 2022: April 30, 2022 (Credits) Payments Foreign Translation & Other Adjustments July 31, 2022 Severance and termination benefits $ 2,079 $ (114 ) $ (100 ) $ (30 ) $ 1,835 Total $ 2,079 $ (114 ) $ (100 ) $ (30 ) $ 1,835 The restructuring liability for accrued severance and termination benefits is reflected in Accrued employment costs on our Unaudited Condensed Consolidated Statement of Financial Position as of |
Segment Information
Segment Information | 3 Months Ended |
Jul. 31, 2022 | |
Segment Information [Abstract] | |
Segment Information | Note 10 Segment Information We report our segment information in accordance with the provisions of FASB Accounting Standards Codification (ASC) Topic 280, “Segment Reporting”. These segments reflect the way our chief operating decision maker evaluates our business performance and manages the operations. The performance metric used by our chief operating decision maker to evaluate performance of our reportable segments is Adjusted Contribution to Profit. Our segment reporting structure consists of reportable segments, which are listed below, as well as a Corporate category, which includes certain costs that are not allocated to the reportable segments: ● Research ● Academic & Professional Learning ● Education Segment information is as follows: Three Months Ended July 31, 2022 2021 Revenue: Research (1) $ 274,913 $ 274,756 Academic & Professional Learning 132,959 139,264 Education Services 79,697 74,368 Total revenue $ 487,569 $ 488,388 Adjusted Contribution to Profit: Research (1) $ 69,104 $ 79,024 Academic & Professional Learning 1,375 8,323 Education Services (2) (11,742 ) (1,861 ) Total adjusted contribution to profit 58,737 85,486 Adjusted corporate contribution to profit (48,667 ) (44,794 ) Total adjusted operating income $ 10,070 $ 40,692 Depreciation and Amortization: Research (1) $ 23,801 $ 23,762 Academic & Professional Learning 16,532 18,364 Education Services (2) 13,790 8,303 Total depreciation and amortization 54,123 50,429 Corporate depreciation and amortization 4,156 4,137 Total depreciation and amortization $ 58,279 $ 54,566 (1) The Research segment was previously referred to as Research Publishing & Platforms. (2) On January 1, 2020, Wiley acquired mthree, a talent placement provider that addresses the IT skills gap by finding, training, and placing job-ready technology talent in roles with leading corporations worldwide. Its results of operations are included in our Education Services segment. In late May 2022, Wiley renamed the mthree talent development solution to Wiley Edge and discontinued use of the mthree trademark during the three months ended July 31, 2022. As a result of these actions, we determined that a revision of the useful life was warranted and the intangible asset was fully amortized over its remaining useful life resulting in accelerated amorti zation expense of $ million in the three months ended July 31, 2022. This amortization expense was an adjustment to the Education Services Adjusted contribution to profit. In addition, it was included in Depreciation and amortization in the table above for segment reporting. The following table shows a reconciliation of our consolidated US GAAP Operating (Loss) Income to Non-GAAP Adjusted Operating Income: Three Months Ended July 31, 2022 2021 US GAAP Operating (Loss) Income $ (16,965 ) $ 40,968 Adjustments: Restructuring and related charges (credits) (1) 22,441 (276 ) Accelerated amortization of an intangible asset (2) 4,594 — Non-GAAP Adjusted Operating Income $ 10,070 $ 40,692 (1) See Note 9, “Restructuring and Related Charges (Credits)” for these charges by segment. (2) As described above, this accelerated amortization relates to the mthree trademark. See Note 4, “Revenue Recognition, Contracts with Customers,” for revenue from contracts with customers disaggregated by segment and product type for the three months ended July 31, 2022 and 2021. |
Inventories
Inventories | 3 Months Ended |
Jul. 31, 2022 | |
Inventories [Abstract] | |
Inventories | Note 11 Inventories Inventories, net consisted of the following: July 31, 2022 April 30, 2022 Finished goods $ 29,110 $ 31,270 Work-in-process 1,096 1,729 Paper and other materials 270 275 Total inventories before estimated sales returns and LIFO reserve $ 30,476 $ 33,274 Inventory value of estimated sales returns 7,455 7,820 LIFO reserve (4,509 ) (4,509 ) Inventories, net $ 33,422 $ 36,585 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Jul. 31, 2022 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | Note 12 Goodwill and Intangible Assets Goodwill The following table summarizes the activity in goodwill by segment as of July 31, 2022: April 30, 2022 Foreign Translation Adjustment July 31, 2022 Research (1) $ 610,416 $ (9,530 ) $ 600,886 Academic & Professional Learning 498,136 (3,108 ) 495,028 Education Services (2) 193,590 (262 ) 193,328 Total $ 1,302,142 $ (12,900 ) $ 1,289,242 (1) The Research segment was previously referred to as Research Publishing & Platforms. (2) The Education Services goodwill balance as of April 30, 2022 includes a cumulative pretax noncash goodwill impairment of $110.0 million. Intangible Assets Intangible assets, net were as follows: July 31, 2022 April 30, 2022 (1) Intangible assets with definite lives, net: Content and publishing rights $ 483,180 $ 499,937 Customer relationships 234,684 242,058 Developed technology 51,380 54,721 Brands and trademarks (2) 10,390 16,021 Covenants not to compete 370 393 Total intangible assets with definite lives, net 780,004 813,130 Intangible assets with indefinite lives: Brands and trademarks 37,000 37,000 Publishing rights 78,804 81,299 Total intangible assets with indefinite lives 115,804 118,299 Total intangible assets, net $ 895,808 $ 931,429 (1) The developed technology balance as of April 30, 2022 is presented net of accumulated impairments and write-offs of $2.8 million. The indefinite-lived brands and trademarks as of April 30, 2022 is net of accumulated impairments of $93.1 million. (2) On January 1, 2020, Wiley acquired mthree, a talent placement provider that addresses the IT skills gap by finding, training, and placing job-ready technology talent in roles with leading corporations worldwide. Its results of operations are included in our Education Services segment. In late May 2022, Wiley renamed the mthree talent development solution to Wiley Edge and discontinued use of the mthree trademark during the three months ended July 31, 2022. As a result of these actions, we determined that a revision of the useful life was warranted and the intangible asset was fully amortized over its remaining useful life resulting in accelerated amorti zation expense of $ million in the three months ended July 31, 2022. |
Income Taxes
Income Taxes | 3 Months Ended |
Jul. 31, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | Note 13 Income Taxes Our effective tax rate fluctuates based on, among other factors, where income is earned and the level of income relative to tax attributes. The effective tax rate for the three months ended July 31, 2022 was 23.7% compared to 68.6% for the three months ended July 31, 2021. The rate for the three months ended July 31, 2022 was greater than the US statutory rate primarily due to the mix of foreign earnings, the impact of US state taxes, the tax impact of the restructuring programs described in Note 9, “Restructuring and Related Charges (Credits),” and a discrete item relating to restricted stock compensation. The rate for the three months ended July 31, 2022 was lower than the rate for the three months ended July 31, 2021 primarily due to an increase in the UK statutory rate announced during the first three months of fiscal 2022 and reflected in the effective tax rate for the three months ended July 31, 2021. On June 10, 2021, the UK enacted legislation that increased its statutory rate from 19% to 25% effective April 1, 2023, resulting in a $20.7 million non-cash deferred tax expense. Each year we file many tax returns given the number of national, state, and local tax jurisdictions in which we operate. These tax returns are subject to examination and possible challenge by the tax authorities, and positions challenged by the tax authorities may be settled or appealed by us. As a result, there is an uncertainty in income taxes recognized in our financial statements in accordance with accounting for income taxes and accounting for uncertainty in income taxes. The ultimate resolution of such uncertainties, however, is not expected to have a material impact on the results of our operations. On August 16, 2022, the Inflation Reduction Act of 2022 (IRA) was signed into law, enacting a book-minimum tax for certain US corporations, an excise tax on repurchases of stock by certain publicly traded corporations, and certain clean energy tax provisions. Based on our currently anticipated operations, we believe that these new provisions would not result in material additional tax liabilities, and do not anticipate that the IRA will have a material adverse impact on our operations. Nonetheless, we will continue to review as regulations and interpretations are adopted by the Internal Revenue Service to implement the IRA. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Jul. 31, 2022 | |
Retirement Plans [Abstract] | |
Retirement Plans | Note 14 Retirement Plans The components of net pension income for our defined benefit plans were as follows: Three Months Ended July 31, 2022 2021 Service cost $ 200 $ 307 Interest cost 6,189 5,223 Expected return on plan assets (8,384 ) (10,259 ) Amortization of prior service cost (23 ) (22 ) Amortization of net actuarial loss 1,524 1,897 Net pension income $ (494 ) $ (2,854 ) The service cost component of net pension income is reflected in Operating and administrative expenses on our Unaudited Condensed Consolidated Statements of Net (Loss) Income. The other components of net pension income are reported separately from the service cost component and below Operating (loss) income. Such amounts are reflected in Other income, net on our Unaudited Condensed Consolidated Statements of Net (Loss) Income. Employer defined benefit pension plan contributions were $3.9 million and $4.5 million for the three months ended July 31, 2022 and 2021, respectively. Defined Contribution Savings Plans The expense for employer defined contribution savings plans was $8.8 million and $9.1 million for the three months ended July 31, 2022 and 2021, respectively. |
Debt and Available Credit Facil
Debt and Available Credit Facilities | 3 Months Ended |
Jul. 31, 2022 | |
Debt and Available Credit Facilities [Abstract] | |
Debt and Available Credit Facilities | Note 15 Debt and Available Credit Facilities Our total debt outstanding consisted of the amounts set forth in the following table: July 31, 2022 April 30, 2022 Short-term portion of long-term debt (1) $ 21,875 $ 18,750 Term loan A - Amended and Restated RCA (2) 198,135 204,343 Revolving credit facility - Amended and Restated RCA 719,101 563,934 Total long-term debt, less current portion 917,236 768,277 Total debt $ 939,111 $ 787,027 (1) Relates to our term loan A under the Amended and Restated RCA. (2) Amounts are shown net of unamortized issuance costs of $0.3 million as of July 31, 2022 and $0.3 million as of April 30, 2022. Amended and Restated RCA On May 30, 2019, we entered into a credit agreement that amended and restated our existing revolving credit agreement, which was then amended on December 22, 2021 as described below (collectively, the Amended and Restated RCA). The Amended and Restated RCA provides for senior unsecured credit facilities comprised of a (i) five-year revolving credit facility in an aggregate principal amount up to $1.25 billion, and (ii) a five-year term loan A facility consisting of $250 million. Under the terms of the Amended and Restated RCA, which can be drawn in multiple currencies, we have the option of borrowing at the following floating interest rates: (i) at a rate based on the London Interbank Offered Rate (LIBOR) plus an applicable margin ranging from 0.98% to 1.50%, depending on our consolidated net leverage ratio, as defined, or (ii) at the lender’s base rate plus an applicable margin ranging from zero to 0.50%, depending on our consolidated net leverage ratio. The lender’s base rate is defined as the highest of (i) the US federal funds effective rate plus a 0.50% margin, (ii) the Eurocurrency rate, as defined, plus a 1.00% margin, or (iii) the Bank of America prime lending rate. In addition, we pay a facility fee for the revolving credit facility ranging from 0.15% to 0.25% depending on our consolidated net leverage ratio. We also have the option to request an increase in the revolving credit facility by an amount not to exceed $500 million, in minimum increments of $50 million, subject to the approval of the lenders. On December 22, 2021, we entered into the first amendment (the “First Amendment”) to the Amended and Restated RCA. The First Amendment, among other things, (i) changes the rate under the Amended and Restated RCA for borrowings denominated in Sterling from a LIBOR-based rate to a daily simple Sterling Overnight Index Average (SONIA) subject to certain adjustments specified in the Amended and Restated RCA, (ii) changes the rate under the Amended and Restated RCAfor borrowings denominated in Euro from a LIBOR-based rate to a EURIBOR-based rate or a Euro Short Term Rate subject to certain adjustments specified in the Amended and Restated RCA, and (iii) updates certain other provisions regarding successor interest rates to LIBOR. The Amended and Restated RCA The amortization expense of the costs incurred related to the Amended and Restated RCA related to the lender and non-lender fees is recognized over the term of the Amended and Restated RCA. Total amortization expense was $ million for both the three months ended and 2021, respectively and is included in Interest expense . As of July 31, 2022, we had approximately $531.9 million of unused borrowing capacity under our Amended and Restated RCA and other facilities. The weighted average interest rates on total debt outstanding during the three months ended July 31, 2022 and 2021 were and , respectively. As of July 31, 2022 and April 30, 2022, the weighted average interest rates for total debt were and , respectively. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Jul. 31, 2022 | |
Derivative Instruments and Hedging Activities [Abstract] | |
Derivative Instruments and Hedging Activities | Note 16 Derivative Instruments and Hedging Activities From time-to-time, we enter into forward exchange and interest rate swap contracts as a hedge against foreign currency asset and liability commitments, changes in interest rates and anticipated transaction exposures, including intercompany sales and purchases. All derivatives are recognized as assets or liabilities and measured at fair value. Derivatives that are not determined to be effective hedges are adjusted to fair value with a corresponding adjustment to earnings. We do not use financial instruments for trading or speculative purposes. Interest Rate Contracts As of July 31, 2022, we had total debt outstanding of $939.1 million, net of unamortized issuance costs of $0.3 million of which $939.4 million are variable rate loans outstanding under the Amended and Restated RCA, which approximated fair value. We had outstanding interest rate swap agreements with combined notional amounts of $500.0 million as of July 31, 2022 and April 30, 2022, respectively. These agreements were accounted for as cash flow hedges which fixed a portion of the variable interest due on our Amended and Restated RCA On June 24, 2019, we entered into a forward starting interest rate swap agreement which fixed a portion of the variable interest due on our Amended and Restated RCA. Under the terms of the agreement, which expired on July 15, 2022, we paid a fixed rate of 1.650% and received a variable rate of interest based on one-month LIBOR from the counterparty which was reset every month for a three-year period ending July 15, 2022. Prior to expiration, the notional amount of the interest rate swap was $100.0 million. On we entered into a forward starting interest rate swap agreement, which fixed a portion of the variable interest due on our Amended and Restated RCA. Under the terms of the agreement, we pay a fixed rate of and receive a variable rate of interest based on LIBOR from the counterparty which is reset every month for a period ending . As of July 31, 2022, the notional amount of the interest rate swap was $ million. We record the fair value of our interest rate swaps on a recurring basis using Level 2 inputs of quoted prices for similar assets or liabilities in active markets. The fair value of the interest rate swaps as of July 31, 2022 was a deferred loss of $0.9 million and a deferred gain of $6.3 million. Based on the maturity dates of the contracts, the entire deferred loss as of July 31, 2022 was recorded within Other long-term liabilities, $1.3 million of the deferred gain was recorded within Prepaid expenses and other current assets, and $5.0 million was recorded within Other non-current assets. The fair value of the interest rate swaps as of April 30, 2022 was a deferred loss of $0.2 million and a deferred gain of $5.8 million. Based on the maturity dates of the contracts, the entire deferred loss as of April 30, 2022 was recorded within Other accrued liabilities, $0.9 million of the deferred gain was recorded within Prepaid expenses and other current assets, and $4.9 million was recorded within Other non-current assets The pretax (losses) that were reclassified from Accumulated other comprehensive loss into Interest expense for the three months ended July 31, 2022 and 2021 were $(0.4) million and $(1.1) million, respectively. Foreign Currency Contracts We may enter into forward exchange contracts to manage our exposure on certain foreign currency denominated assets and liabilities. The forward exchange contracts are marked to market through Foreign exchange transaction (losses) gains on our Unaudited Condensed Consolidated Statements of Net (Loss) Income and carried at fair value on our Unaudited Condensed Consolidated Statements of Financial Position. Foreign currency denominated assets and liabilities are remeasured at spot rates in effect on the balance sheet date, with the effects of changes in spot rates reported in Foreign exchange transaction (losses) gains on our Unaudited Condensed Consolidated Statements of Net (Loss) Income. As of July 31, 2022, and April 30, 2022, we did not maintain any open forward exchange contracts. In addition, we did not maintain any open forward contracts during the three months ended July 31, 2022 and 2021. |
Capital Stock and Changes in Ca
Capital Stock and Changes in Capital Accounts | 3 Months Ended |
Jul. 31, 2022 | |
Capital Stock and Changes in Capital Accounts [Abstract] | |
Capital Stock and Changes in Capital Accounts | Note 17 Capital Stock and Changes in Capital Accounts Share Repurchases The following table summarizes the share repurchases of Class A and Class B Common Stock (shares in thousands): Three Months Ended July 31, 2022 2021 Shares repurchased - Class A 212 129 Shares repurchased - Class B — 1 Average price - Class A and Class B $ 47.12 $ 56.88 Dividends The following table summarizes the cash dividends paid during the three months ended July 31, 2022: Date of Declaration by Board of Directors Quarterly Cash Dividend Total Dividend Class of Common Stock Dividend Paid Date Shareholders of Record as of Date June 22, 2022 $0.3475 per common share $19.4 million Class A and Class B July 20, 2022 July 6, 2022 Changes in Common Stock The following is a summary of changes during the three months ended July 31, in shares of our common stock and common stock in treasury (shares in thousands): Changes in Common Stock A: 2022 2021 Number of shares, beginning of year 70,226 70,208 Common stock class conversions — 3 Number of shares issued, end of period 70,226 70,211 Changes in Common Stock A in treasury: Number of shares held, beginning of year 23,515 23,419 Purchases of treasury shares 212 129 Restricted shares issued under stock-based compensation plans - non-PSU Awards (119 ) (118 ) Restricted shares issued under stock-based compensation plans - PSU Awards (149 ) (103 ) Restricted shares issued from exercise of stock options — (22 ) Shares withheld for taxes 98 85 Number of shares held, end of period 23,557 23,390 Number of Common Stock A outstanding, end of period 46,669 46,821 Changes in Common Stock B: 2022 2021 Number of shares, beginning of year 12,956 12,974 Common stock class conversions — (3 ) Number of shares issued, end of period 12,956 12,971 Changes in Common Stock B in treasury: Number of shares held, beginning of year 3,924 3,922 Purchases of treasury shares — 1 Number of shares held, end of period 3,924 3,923 Number of Common Stock B outstanding, end of period 9,032 9,048 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jul. 31, 2022 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 18 Commitments and Contingencies We are involved in routine litigation in the ordinary course of our business. A provision for litigation is accrued when information available to us indicates that it is probable a liability has been incurred and the amount of loss can be reasonably estimated. Significant judgment may be required to determine both the probability and estimates of loss. When the amount of the loss can only be estimated within a range, the most likely outcome within that range is accrued. If no amount within the range is a better estimate than any other amount, the minimum amount within the range is accrued. When uncertainties exist related to the probable outcome of litigation and/or the amount or range of loss, we do not record a liability, but disclose facts related to the nature of the contingency and possible losses if management considers the information to be material. Reserves for legal defense costs are recognized when incurred. The accruals for loss contingencies and legal costs are reviewed regularly and may be adjusted to reflect updated information on the status of litigation and advice of legal counsel. In the opinion of management, the ultimate resolution of all pending litigation as of July 31, 2022, will not have a material effect upon our consolidated financial condition or results of operations. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Jul. 31, 2022 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Throughout this report, when we refer to “Wiley,” the “Company,” “we,” “our,” or “us,” we are referring to John Wiley & Sons, Inc. and all our subsidiaries, except where the context indicates otherwise. Our Unaudited Condensed Consolidated Financial Statements include all the accounts of the Company and our subsidiaries. We have eliminated all intercompany transactions and balances in consolidation. In the opinion of management, the accompanying Unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Unaudited Condensed Consolidated Financial Condition, Results of Operations, Comprehensive Income and Cash Flows for the periods presented. Operating results for the interim period are not necessarily indicative of the results expected for the full year. All amounts are in thousands, except per share amounts, and approximate due to rounding. These financial statements should be read in conjunction with the most recent audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2022 as filed with the SEC on June 24, 2022 (2022 Form 10-K). Our Unaudited Condensed Consolidated Financial Statements were prepared in accordance with the interim reporting requirements of the SEC. As permitted under those rules, annual footnotes or other financial information that are normally required by US GAAP have been condensed or omitted. The preparation of our Unaudited Condensed Consolidated Financial Statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Certain prior year amounts have been reclassified to conform to the current year’s presentation. |
Recent Accounting Standards (Po
Recent Accounting Standards (Policies) | 3 Months Ended |
Jul. 31, 2022 | |
Recent Accounting Standards [Abstract] | |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards Convertible Debt Instruments, Derivatives and EPS In August 2020, the FASB issued ASU 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40)”. This ASU reduces the number of accounting models for convertible debt instruments and convertible preferred stock, as well as amend the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. In addition, this ASU improves and amends the related earnings-per-share (EPS) guidance. We adopted ASU 2020-06 on May 1, 2022. The adoption did not have an impact on our consolidated financial statements at the time of adoption. Recently Issued Accounting Standards Accounting for Contract Assets and Contract Liabilities from Contracts with Customers In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”. This ASU requires that an acquirer recognize, and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606 “Revenue from Contracts with Customers” (Topic 606) as if it had originated the contracts. Generally, this would result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements if the acquiree prepared financial statements in accordance with US GAAP. This standard is effective for us on May 1, 2023, including interim periods within the fiscal year. Early adoption is permitted. The standard is applied prospectively to business combinations occurring on or after the effective date of the amendments. The impact will be based on future business combinations after we adopt the standard. |
Revenue Recognition, Contract_2
Revenue Recognition, Contracts with Customers (Policies) | 3 Months Ended |
Jul. 31, 2022 | |
Revenue Recognition, Contracts with Customers [Abstract] | |
Revenue from Contract with Customer | Research Research customers include academic, corporate, government, and public libraries, funders of research, researchers, scientists, clinicians, engineers and technologists, scholarly and professional societies, and students and professors. Research products are sold and distributed globally through multiple channels, including research libraries and library consortia, independent subscription agents, direct sales to professional society members, and other customers. Publishing centers include Australia, China, Germany, India, the United Kingdom (UK), and the United States (US). The majority of revenue generated from Research products is recognized over time. Total Research revenue was $274.9 million in the three months ended July 31, 2022. We disaggregated revenue by Research Publishing and Research Solutions to reflect the different type of products and services provided. Research Publishing Products Research Publishing products provide scientific, technical, medical, and scholarly journals, as well as related content and services to academic, corporate, and government libraries, learned societies, and individual researchers and other professionals. Research Publishing revenue was $239.5 million in the three months ended July 31, 2022 and the majority is recognized over time. Research Publishing products generate approximately 87% of its revenue from contracts with its customers from Journal Subscriptions (pay to read), Open Access (pay to publish) and Transformational Agreements (read and publish) and the remainder from Licensing, Reprints, Backfiles, and Other. Research Solutions Products and Services Research Solutions services include Atypon Systems, Inc (Atypon) a publishing software and service provider that enables scholarly and professional societies and publishers to deliver, host, enhance, market, and manage their content on the web through the Literatum J&J Editorial Services, LLC. (J&J) and the eJournalPress (EJP) business. J&J is a publishing services company providing expert offerings in editorial operations, production, copyediting, system support and consulting. EJP is a technology platform company with an established journal submission and peer-review management system. Academic & Professional Learning Academic & Professional Learning provides Education Publishing and Professional Learning products and services including scientific, professional, and education print and digital books, digital courseware, and test preparation services to libraries, corporations, students, professionals, and researchers, as well as learning, development, and assessment services for businesses and professionals. Communities served include business, finance, accounting, workplace learning, management, leadership, technology, behavioral health, engineering/architecture, science and medicine, and education. Products are developed for worldwide distribution through multiple channels, including chain and online booksellers, libraries, colleges and universities, corporations, direct to consumer, web sites, distributor networks and other online applications. Publishing centers include Australia, Germany, India, the UK, and the US. Total Academic & Professional Learning revenue was $ million in the . We disaggregated revenue by type of products provided. Academic & Professional Learning products are Education Publishing and Professional Learning. Academic & Professional Learning revenues are mainly recognized at a point in time . Education Publishing Products Education Publishing products revenue was $63.1 million in the three months ended July 31, 2022. Education Publishing products generate approximately 74% of its revenue from contracts with its customers from Education (print and digital) Publishing, which is recognized at a point in time, and 7% from Digital Courseware which is recognized over time. The remainder of its revenues were from Test Preparation and Certification, and Licensing and Other, which has a mix of revenue recognized at a point in time and over time. Professional Learning Products Professional Learning products revenue was $69.9 million in the three months ended July 31, 2022. Professional Learning (print and digital) products generate approximately 59% of revenue from contracts with its customers from Professional Publishing, and Licensing and Other, and both are mainly recognized at a point in time. Approximately 41% of Professional Learning products revenue is from contracts with its customers from Corporate Training and Corporate Learning, which is recognized mainly over time. Education Services Education Services revenue was $79.7 million in the three months ended July 31, 2022 and the majority is recognized over time. We disaggregated revenue by type of services provided, which are University Services and Talent Development Services. University Services University Services revenue was $47.8 million in the three months ended July 31, 2022 and is mainly recognized over time. University Services primarily engages in the comprehensive management of online degree programs for universities and has grown to include a broad array of technology enabled service offerings that address our partner specific pain points. Increasingly, this includes delivering career credentialing education that advances specific careers with in-demand skills. Talent Development Services Talent Development Services revenue was $ million in the and is recognized at the point in time the services are provided to its customers. Talent Development Services Accounts Receivable, net and Contract Liability Balances When consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue when, or as, control of the products or services are transferred to the customer and all revenue recognition criteria have been met. |
Revenue Recognition, Contract_3
Revenue Recognition, Contracts with Customers (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Revenue Recognition, Contracts with Customers [Abstract] | |
Revenue from Contracts With Customers Disaggregated by Segment and Product Type | The following table presents our revenue from contracts with customers disaggregated by segment and product type. Three Months Ended July 31, 2022 2021 Research (1) : Research Publishing (2) $ 239,523 $ 243,284 Research Solutions (2) 35,390 31,472 Total Research 274,913 274,756 Academic & Professional Learning: Education Publishing 63,056 66,380 Professional Learning 69,903 72,884 Total Academic & Professional Learning 132,959 139,264 Education Services: University Services (3) 47,811 54,968 Talent Development Services (3) 31,886 19,400 Total Education Services 79,697 74,368 Total Revenue $ 487,569 $ 488,388 (1) The Research segment was previously referred to as Research Publishing & Platforms. (2) As previously announced, in May 2022 our revenue by product type previously referred to as Research Platforms was changed to Research Solutions. Research Solutions includes infrastructure and publishing services that help societies and corporations thrive in a complex knowledge ecosystem. In addition to Platforms (Atypon), certain product offerings such as corporate sales which included the recent acquisitions of Madgex Holdings Limited (Madgex), and Bio-Rad Laboratories Inc.’s Informatics products (Informatics) that were previously included in Research Publishing moved to Research Solutions to align with our strategic focus. Research Solutions also includes product offerings related to certain recent acquisitions such as J&J, and EJP. Prior period results have been revised to the new presentation. There were no changes to the total Research segment or our consolidated financial results. (3) In May 2022, we moved the WileyNXT product offering from Talent Development Services to University Services and the prior period results have been included in University Services. The revenue reclassified was $ million for the months ended . There were changes to the total Education Services segment or our total consolidated financial results. |
Accounts Receivable, Net and Contract Liabilities from Contracts with Customers | The following table provides information about accounts receivable, net and contract liabilities from contracts with customers. July 31, 2022 April 30, 2022 Increase/ (Decrease) Balances from contracts with customers: Accounts receivable, net $ 281,443 $ 331,960 $ (50,517 ) Contract liabilities (1) 407,098 538,126 (131,028 ) Contract liabilities (included in Other long-term liabilities) $ 20,171 $ 19,072 $ 1,099 (1) The sales return reserve recorded in Contract liabilities is $29.6 million and $31.1 million, as of July 31, 2022 and April 30, 2022, respectively. |
Operating Leases (Tables)
Operating Leases (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Operating Leases [Abstract] | |
ROU Assets and Lease Liabilities | For operating leases, the ROU assets and lease liabilities are presented on our Condensed Consolidated Statement of Financial Position as follows: July 31, 2022 April 30, 2022 Operating lease ROU assets $ 103,196 $ 111,719 Short-term portion of operating lease liabilities 19,788 20,576 Operating lease liabilities, non-current $ 127,055 $ 132,541 |
Total Net Lease Costs | Our total net lease costs are as follows: Three Months Ended July 31, 2022 2021 Operating lease cost $ 5,182 $ 5,917 Variable lease cost 278 344 Short-term lease cost 115 20 Sublease income (198 ) (201 ) Total net lease cost (1) $ 5,377 $ 6,080 (1) Total net lease cost does not include those costs and sublease income included in Restructuring and related charges (credits) on our Unaudited Condensed Consolidated Statements of Net (Loss) Income. This includes operating leases we identified a See Note 9 , “Restructuring and Related Charges (Credits)” for more information on these programs. |
Other Supplemental Information for Operating Leases | Other supplemental information includes the following: Three Months Ended July 31, 2022 2021 Weighted-average remaining contractual lease term (years) 8 9 Weighted-average discount rate 5.87 % 5.83 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,341 $ 7,974 |
Reconciliation of Undiscounted Cash Flows to Operating Lease Liabilities | The table below reconciles the undiscounted cash flows for the first five years and total of the remaining years to the operating lease liabilities recorded on our Unaudited Condensed Consolidated Statement of Financial Position as of July 31, 2022: Fiscal Year Operating Lease Liabilities 2023 (remaining 9 months) $ 20,619 2024 25,940 2025 24,556 2026 22,226 2027 17,871 Thereafter 77,513 Total future undiscounted minimum lease payments 188,725 Less: Imputed interest 41,882 Present value of minimum lease payments 146,843 Less: Current portion 19,788 Noncurrent portion $ 127,055 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Stock-Based Compensation [Abstract] | |
Awards Granted to Employees | The following table summarizes awards we granted to employees (shares in thousands): Three Months Ended July 31, 2022 2021 Restricted Stock Awards granted (shares) 494 433 Weighted average fair value of grant $ 45.99 $ 57.36 |
Significant Assumptions Used in Fair Value Determination | The following table provides the estimated weighted average fair value for options granted during the months ended and using the Black-Scholes option-pricing model Three Months Ended July 31, 2022 2021 Weighted average fair value of options on grant date $ 9.42 $ 11.80 Weighted Average Assumptions Expected life of options (years) 5.9 6.3 Risk-free interest rate 0.5 % 1.1 % Expected volatility 31.2 % 30.6 % Expected dividend yield 3.0 % 2.4 % Fair value of common stock on grant date $ 45.99 $ 57.34 Exercise price of stock option grant $ 45.99 $ 63.07 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component, Net of Tax | Changes in Accumulated other comprehensive loss by component, net of tax, for the three months ended July 31, 2022 and 2021 were as follows: Foreign Currency Translation Unamortized Retirement Costs Interest Rate Swaps Total Balance at April 30, 2022 $ (329,566 ) $ (182,226 ) $ 3,646 $ (508,146 ) Other comprehensive (loss) income before reclassifications (19,780 ) 3,979 (737 ) (16,538 ) Amounts reclassified from Accumulated other comprehensive loss — 1,102 293 1,395 Total other comprehensive (loss) income (19,780 ) 5,081 (444 ) (15,143 ) Balance at July 31, 2022 $ (349,346 ) $ (177,145 ) $ 3,202 $ (523,289 ) Balance at April 30, 2021 $ (257,941 ) $ (228,146 ) $ (4,703 ) $ (490,790 ) Other comprehensive (loss) income before reclassifications (5,937 ) 142 (293 ) (6,088 ) Amounts reclassified from Accumulated other comprehensive loss — 1,447 831 2,278 Total other comprehensive (loss) income (5,937 ) 1,589 538 (3,810 ) Balance at July 31, 2021 $ (263,878 ) $ (226,557 ) $ (4,165 ) $ (494,600 ) |
Reconciliation of Weighted Av_2
Reconciliation of Weighted Average Shares Outstanding (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Reconciliation of Weighted Average Shares Outstanding [Abstract] | |
Reconciliation of Shares used in Computation of Earnings (Loss) Per Share | A reconciliation of the shares used in the computation of (loss) earnings per share follows (shares in thousands): Three Months Ended July 31, 2022 2021 Weighted average shares outstanding 55,736 55,869 Shares used for basic (loss) earnings per share 55,736 55,869 Dilutive effect of unvested restricted stock units and other stock awards — 730 Shares used for diluted (loss) earnings per share 55,736 56,599 Antidilutive options to purchase Class A common shares, restricted shares, warrants to purchase Class A common shares, and contingently issuable restricted stock which are excluded from the table above 1,211 930 |
Restructuring and Related Cha_2
Restructuring and Related Charges (Credits) (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Fiscal Year 2023 Restructuring Program [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pretax Restructuring Charges (Credits) | The following tables summarize the pretax restructuring charges related to this program: Three Months Ended July 31, 2022 Charges by Segment: Research $ 81 Academic & Professional Learning 5,914 Education Services 830 Corporate Expenses 14,916 Total Restructuring and Related Charges $ 21,741 Charges by Activity: Severance and termination benefits $ 12,097 Impairment of operating lease ROU assets and property and equipment 6,106 Acceleration of expense related to operating lease ROU assets and property and equipment 1,840 Facility related charges, net 1,698 Total Restructuring and Related Charges $ 21,741 |
Activity for Restructuring Liability | The following table summarizes the activity for the Fiscal Year 2023 Restructuring Program liability for the three months ended July 31, 2022: April 30, 2022 Charges Payments Foreign Translation & Other Adjustments July 31, 2022 Severance and termination benefits $ — $ 12,097 $ (3,795 ) $ 30 $ 8,332 Total $ — $ 12,097 $ (3,795 ) $ 30 $ 8,332 |
Business Optimization Program [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pretax Restructuring Charges (Credits) | The following tables summarize the pretax restructuring charges (credits) related to this program: Three Months Ended July 31, Total Charges 2022 2021 Incurred to Date Charges (Credits) by Segment: Research $ — $ 216 $ 3,882 Academic & Professional Learning (124 ) 171 13,126 Education Services 3 (34 ) 4,316 Corporate Expenses 821 (629 ) 44,211 Total Restructuring and Related Charges (Credits) $ 700 $ (276 ) $ 65,535 Charges (Credits) by Activity: Severance and termination benefits $ (114 ) $ (614 ) $ 35,005 Impairment of operating lease ROU assets and property and equipment — — 15,079 Acceleration of expense related to operating lease ROU assets and property and equipment — — 3,378 Facility related charges, net 814 338 10,333 Other activities — — 1,740 Total Restructuring and Related Charges (Credits) $ 700 $ (276 ) $ 65,535 |
Activity for Restructuring Liability | The following table summarizes the activity for the Business Optimization Program liability for the three months ended July 31, 2022: April 30, 2022 (Credits) Payments Foreign Translation & Other Adjustments July 31, 2022 Severance and termination benefits $ 2,079 $ (114 ) $ (100 ) $ (30 ) $ 1,835 Total $ 2,079 $ (114 ) $ (100 ) $ (30 ) $ 1,835 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Segment Information [Abstract] | |
Segment Information | Segment information is as follows: Three Months Ended July 31, 2022 2021 Revenue: Research (1) $ 274,913 $ 274,756 Academic & Professional Learning 132,959 139,264 Education Services 79,697 74,368 Total revenue $ 487,569 $ 488,388 Adjusted Contribution to Profit: Research (1) $ 69,104 $ 79,024 Academic & Professional Learning 1,375 8,323 Education Services (2) (11,742 ) (1,861 ) Total adjusted contribution to profit 58,737 85,486 Adjusted corporate contribution to profit (48,667 ) (44,794 ) Total adjusted operating income $ 10,070 $ 40,692 Depreciation and Amortization: Research (1) $ 23,801 $ 23,762 Academic & Professional Learning 16,532 18,364 Education Services (2) 13,790 8,303 Total depreciation and amortization 54,123 50,429 Corporate depreciation and amortization 4,156 4,137 Total depreciation and amortization $ 58,279 $ 54,566 (1) The Research segment was previously referred to as Research Publishing & Platforms. (2) On January 1, 2020, Wiley acquired mthree, a talent placement provider that addresses the IT skills gap by finding, training, and placing job-ready technology talent in roles with leading corporations worldwide. Its results of operations are included in our Education Services segment. In late May 2022, Wiley renamed the mthree talent development solution to Wiley Edge and discontinued use of the mthree trademark during the three months ended July 31, 2022. As a result of these actions, we determined that a revision of the useful life was warranted and the intangible asset was fully amortized over its remaining useful life resulting in accelerated amorti zation expense of $ million in the three months ended July 31, 2022. This amortization expense was an adjustment to the Education Services Adjusted contribution to profit. In addition, it was included in Depreciation and amortization in the table above for segment reporting. |
Reconciliation of Consolidated US GAAP Operating (Loss) Income to Non-GAAP Adjusted Operating Income | The following table shows a reconciliation of our consolidated US GAAP Operating (Loss) Income to Non-GAAP Adjusted Operating Income: Three Months Ended July 31, 2022 2021 US GAAP Operating (Loss) Income $ (16,965 ) $ 40,968 Adjustments: Restructuring and related charges (credits) (1) 22,441 (276 ) Accelerated amortization of an intangible asset (2) 4,594 — Non-GAAP Adjusted Operating Income $ 10,070 $ 40,692 (1) See Note 9, “Restructuring and Related Charges (Credits)” for these charges by segment. (2) As described above, this accelerated amortization relates to the mthree trademark. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Inventories [Abstract] | |
Inventories | Inventories, net consisted of the following: July 31, 2022 April 30, 2022 Finished goods $ 29,110 $ 31,270 Work-in-process 1,096 1,729 Paper and other materials 270 275 Total inventories before estimated sales returns and LIFO reserve $ 30,476 $ 33,274 Inventory value of estimated sales returns 7,455 7,820 LIFO reserve (4,509 ) (4,509 ) Inventories, net $ 33,422 $ 36,585 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Goodwill and Intangible Assets [Abstract] | |
Activity in Goodwill by Segment | The following table summarizes the activity in goodwill by segment as of July 31, 2022: April 30, 2022 Foreign Translation Adjustment July 31, 2022 Research (1) $ 610,416 $ (9,530 ) $ 600,886 Academic & Professional Learning 498,136 (3,108 ) 495,028 Education Services (2) 193,590 (262 ) 193,328 Total $ 1,302,142 $ (12,900 ) $ 1,289,242 (1) The Research segment was previously referred to as Research Publishing & Platforms. (2) The Education Services goodwill balance as of April 30, 2022 includes a cumulative pretax noncash goodwill impairment of $110.0 million. |
Intangible Assets, Net | Intangible assets, net were as follows: July 31, 2022 April 30, 2022 (1) Intangible assets with definite lives, net: Content and publishing rights $ 483,180 $ 499,937 Customer relationships 234,684 242,058 Developed technology 51,380 54,721 Brands and trademarks (2) 10,390 16,021 Covenants not to compete 370 393 Total intangible assets with definite lives, net 780,004 813,130 Intangible assets with indefinite lives: Brands and trademarks 37,000 37,000 Publishing rights 78,804 81,299 Total intangible assets with indefinite lives 115,804 118,299 Total intangible assets, net $ 895,808 $ 931,429 (1) The developed technology balance as of April 30, 2022 is presented net of accumulated impairments and write-offs of $2.8 million. The indefinite-lived brands and trademarks as of April 30, 2022 is net of accumulated impairments of $93.1 million. (2) On January 1, 2020, Wiley acquired mthree, a talent placement provider that addresses the IT skills gap by finding, training, and placing job-ready technology talent in roles with leading corporations worldwide. Its results of operations are included in our Education Services segment. In late May 2022, Wiley renamed the mthree talent development solution to Wiley Edge and discontinued use of the mthree trademark during the three months ended July 31, 2022. As a result of these actions, we determined that a revision of the useful life was warranted and the intangible asset was fully amortized over its remaining useful life resulting in accelerated amorti zation expense of $ million in the three months ended July 31, 2022. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Retirement Plans [Abstract] | |
Components of Net Pension Income for Defined Benefit Plans | The components of net pension income for our defined benefit plans were as follows: Three Months Ended July 31, 2022 2021 Service cost $ 200 $ 307 Interest cost 6,189 5,223 Expected return on plan assets (8,384 ) (10,259 ) Amortization of prior service cost (23 ) (22 ) Amortization of net actuarial loss 1,524 1,897 Net pension income $ (494 ) $ (2,854 ) |
Debt and Available Credit Fac_2
Debt and Available Credit Facilities (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Debt and Available Credit Facilities [Abstract] | |
Total Debt Outstanding | Our total debt outstanding consisted of the amounts set forth in the following table: July 31, 2022 April 30, 2022 Short-term portion of long-term debt (1) $ 21,875 $ 18,750 Term loan A - Amended and Restated RCA (2) 198,135 204,343 Revolving credit facility - Amended and Restated RCA 719,101 563,934 Total long-term debt, less current portion 917,236 768,277 Total debt $ 939,111 $ 787,027 (1) Relates to our term loan A under the Amended and Restated RCA. (2) Amounts are shown net of unamortized issuance costs of $0.3 million as of July 31, 2022 and $0.3 million as of April 30, 2022. |
Capital Stock and Changes in _2
Capital Stock and Changes in Capital Accounts (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Capital Stock and Changes in Capital Accounts [Abstract] | |
Summary of Share Repurchases | The following table summarizes the share repurchases of Class A and Class B Common Stock (shares in thousands): Three Months Ended July 31, 2022 2021 Shares repurchased - Class A 212 129 Shares repurchased - Class B — 1 Average price - Class A and Class B $ 47.12 $ 56.88 |
Cash Dividends Paid | The following table summarizes the cash dividends paid during the three months ended July 31, 2022: Date of Declaration by Board of Directors Quarterly Cash Dividend Total Dividend Class of Common Stock Dividend Paid Date Shareholders of Record as of Date June 22, 2022 $0.3475 per common share $19.4 million Class A and Class B July 20, 2022 July 6, 2022 |
Summary of Changes of Common Stock and Common Stock in Treasury | The following is a summary of changes during the three months ended July 31, in shares of our common stock and common stock in treasury (shares in thousands): Changes in Common Stock A: 2022 2021 Number of shares, beginning of year 70,226 70,208 Common stock class conversions — 3 Number of shares issued, end of period 70,226 70,211 Changes in Common Stock A in treasury: Number of shares held, beginning of year 23,515 23,419 Purchases of treasury shares 212 129 Restricted shares issued under stock-based compensation plans - non-PSU Awards (119 ) (118 ) Restricted shares issued under stock-based compensation plans - PSU Awards (149 ) (103 ) Restricted shares issued from exercise of stock options — (22 ) Shares withheld for taxes 98 85 Number of shares held, end of period 23,557 23,390 Number of Common Stock A outstanding, end of period 46,669 46,821 Changes in Common Stock B: 2022 2021 Number of shares, beginning of year 12,956 12,974 Common stock class conversions — (3 ) Number of shares issued, end of period 12,956 12,971 Changes in Common Stock B in treasury: Number of shares held, beginning of year 3,924 3,922 Purchases of treasury shares — 1 Number of shares held, end of period 3,924 3,923 Number of Common Stock B outstanding, end of period 9,032 9,048 |
Acquisitions (Details)
Acquisitions (Details) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 29, 2021 USD ($) shares | Jul. 31, 2022 USD ($) | Jul. 31, 2021 USD ($) | Apr. 30, 2022 USD ($) Business | |||
Acquisitions [Abstract] | ||||||
Revenue | $ 487,569 | $ 488,388 | ||||
Operating loss | (16,965) | 40,968 | ||||
Goodwill | 1,289,242 | $ 1,302,142 | [1] | |||
Fair value of cash consideration transferred, including those amounts paid after acquisition, net of cash acquired | 96 | $ 3,032 | ||||
Research [Member] | ||||||
Acquisitions [Abstract] | ||||||
Goodwill | [1] | 600,886 | 610,416 | |||
Education Services [Member] | ||||||
Acquisitions [Abstract] | ||||||
Goodwill | [2] | 193,328 | 193,590 | |||
XYZ Media [Member] | ||||||
Acquisitions [Abstract] | ||||||
Fair value of consideration transferred | $ 45,400 | |||||
Total cash consideration transferred | $ 38,000 | |||||
Intangible assets, net | 22,700 | |||||
XYZ Media [Member] | Class A Common Stock [Member] | ||||||
Acquisitions [Abstract] | ||||||
Issuance of common shares in consideration transferred (in shares) | shares | 129 | |||||
Issuance of common shares in consideration transferred | $ 7,400 | |||||
XYZ Media [Member] | Education Services [Member] | ||||||
Acquisitions [Abstract] | ||||||
Revenue | 2,500 | |||||
Operating loss | (1,500) | |||||
Goodwill | 22,200 | |||||
Other Acquisitions [Member] | ||||||
Acquisitions [Abstract] | ||||||
Fair value of consideration transferred | 41,200 | |||||
Total cash consideration transferred | 36,200 | |||||
Intangible assets, net | 15,600 | |||||
Cash to be paid after acquisition date | 5,000 | |||||
Cash acquired | 1,200 | |||||
Fair value of cash consideration transferred, including those amounts paid after acquisition, net of cash acquired | $ 34,900 | |||||
Other Acquisitions [Member] | Research [Member] | ||||||
Acquisitions [Abstract] | ||||||
Revenue | 4,600 | |||||
Operating loss | (2,300) | |||||
Goodwill | 24,800 | |||||
Number of immaterial businesses acquired | Business | 2 | |||||
Other Acquisitions [Member] | Education Services [Member] | ||||||
Acquisitions [Abstract] | ||||||
Goodwill | $ 0 | |||||
Number of immaterial businesses acquired | Business | 1 | |||||
[1]The Research segment was previously referred to as Research Publishing & Platforms.[2]The Education Services goodwill balance as of April 30, 2022 includes a cumulative pretax noncash goodwill impairment of $110.0 million. |
Revenue Recognition, Contract_4
Revenue Recognition, Contracts with Customers, Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | ||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | |||
Revenue | $ 487,569 | $ 488,388 | |
University Services [Member] | Wiley NXT [Member] | |||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | |||
Revenue reclassified | 600 | ||
Research [Member] | Research Publishing [Member] | Journal Subscriptions, Open Access and Transformational Agreements [Member] | Product Concentration Risk [Member] | Revenue from Contract with Customers [Member] | |||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | |||
Revenue percentage | 87% | ||
Research [Member] | Research Solutions [Member] | |||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | |||
Revenue reclassified | 20,000 | ||
Academic & Professional Learning [Member] | Education Publishing [Member] | Print and Digital [Member] | Transferred at Point in Time [Member] | Product Concentration Risk [Member] | Revenue from Contract with Customers [Member] | |||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | |||
Revenue percentage | 74% | ||
Academic & Professional Learning [Member] | Education Publishing [Member] | Digital Courseware [Member] | Transferred over Time [Member] | Product Concentration Risk [Member] | Revenue from Contract with Customers [Member] | |||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | |||
Revenue percentage | 7% | ||
Academic & Professional Learning [Member] | Professional Learning [Member] | Professional Publishing, and Licensing and Other [Member] | Transferred at Point in Time [Member] | Product Concentration Risk [Member] | Revenue from Contract with Customers [Member] | |||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | |||
Revenue percentage | 59% | ||
Academic & Professional Learning [Member] | Professional Learning [Member] | Corporate Training and Corporate Learning [Member] | Transferred over Time [Member] | Product Concentration Risk [Member] | Revenue from Contract with Customers [Member] | |||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | |||
Revenue percentage | 41% | ||
Operating Segments [Member] | Research [Member] | |||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | |||
Revenue | [1] | $ 274,913 | 274,756 |
Operating Segments [Member] | Research [Member] | Research Publishing [Member] | |||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | |||
Revenue | [1],[2] | 239,523 | 243,284 |
Operating Segments [Member] | Research [Member] | Research Solutions [Member] | |||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | |||
Revenue | [1],[2] | 35,390 | 31,472 |
Operating Segments [Member] | Academic & Professional Learning [Member] | |||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | |||
Revenue | [1] | 132,959 | 139,264 |
Operating Segments [Member] | Academic & Professional Learning [Member] | Education Publishing [Member] | |||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | |||
Revenue | 63,056 | 66,380 | |
Operating Segments [Member] | Academic & Professional Learning [Member] | Professional Learning [Member] | |||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | |||
Revenue | 69,903 | 72,884 | |
Operating Segments [Member] | Education Services [Member] | |||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | |||
Revenue | 79,697 | 74,368 | |
Operating Segments [Member] | Education Services [Member] | University Services [Member] | |||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | |||
Revenue | [3] | 47,811 | 54,968 |
Operating Segments [Member] | Education Services [Member] | Talent Development Services [Member] | |||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | |||
Revenue | [3] | $ 31,886 | $ 19,400 |
[1]The Research segment was previously referred to as Research Publishing & Platforms.[2]As previously announced, in May 2022 our revenue by product type previously referred to as Research Platforms was changed to Research Solutions. Research Solutions includes infrastructure and publishing services that help societies and corporations thrive in a complex knowledge ecosystem. In addition to Platforms (Atypon), certain product offerings such as corporate sales which included the recent acquisitions of Madgex Holdings Limited (Madgex), and Bio-Rad Laboratories Inc.’s Informatics products (Informatics) that were previously included in Research Publishing moved to Research Solutions to align with our strategic focus. Research Solutions also includes product offerings related to certain recent acquisitions such as J&J, and EJP. Prior period results have been revised to the new presentation. There were no changes to the total Research segment or our consolidated financial results. we moved the WileyNXT product offering from Talent Development Services to University Services and the prior period results have been included in University Services. The revenue reclassified was $ million for the months ended . There were changes to the total Education Services segment or our total consolidated financial results. |
Revenue Recognition, Contract_5
Revenue Recognition, Contracts with Customers, Accounts Receivable, Net and Contract Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jul. 31, 2022 | Apr. 30, 2022 | ||
Balances from contracts with customers [Abstract] | |||
Accounts receivable, net | $ 281,443 | $ 331,960 | |
Contract liabilities | [1] | 407,098 | 538,126 |
Contract liabilities (included in Other long-term liabilities) | 20,171 | 19,072 | |
Increase/(decrease) [Abstract] | |||
Accounts receivable, net | (50,517) | ||
Contract liabilities | [1] | (131,028) | |
Contract liabilities (included in Other long-term liabilities) | 1,099 | ||
Sales return reserve recorded in contract liability | $ 29,600 | $ 31,100 | |
Revenue recognized from beginning contract liability, percentage | 43% | ||
[1]The sales return reserve recorded in Contract liabilities is $29.6 million and $31.1 million, as of July 31, 2022 and April 30, 2022, respectively. |
Revenue Recognition, Contract_6
Revenue Recognition, Contracts with Customers, Remaining Performance Obligations included in Contract Liability (Details) - USD ($) $ in Millions | Jul. 31, 2022 | Apr. 30, 2022 |
Remaining Performance Obligations [Abstract] | ||
Remaining performance obligations | $ 427.3 | |
Sales return reserve recorded in contract liability | 29.6 | $ 31.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-08-01 | ||
Remaining Performance Obligations [Abstract] | ||
Remaining performance obligations excluding sales return reserve | $ 377.5 | |
Expected timing of satisfaction, period | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-08-01 | ||
Remaining Performance Obligations [Abstract] | ||
Remaining performance obligations | $ 20.2 | |
Expected timing of satisfaction, period |
Revenue Recognition, Contract_7
Revenue Recognition, Contracts with Customers, Assets Recognized for the Costs to Fulfill a Contract (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Apr. 30, 2022 | |
Assets Recognized for the Costs to Obtain or Fulfill a Contract [Abstract] | |||
Costs capitalized | $ 10,700 | $ 10,900 | |
Amortization | 1,200 | $ 1,500 | |
Cost of revenue [Abstract] | |||
Operating and administrative expenses | 282,751 | 260,589 | |
Shipping and Handling [Member] | |||
Cost of revenue [Abstract] | |||
Operating and administrative expenses | $ 6,500 | $ 6,800 |
Operating Leases (Details)
Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2022 | Apr. 30, 2022 | |
ROU Assets and Lease Liabilities [Abstract] | ||
Operating lease ROU assets | $ 103,196 | $ 111,719 |
Short-term portion of operating lease liabilities | 19,788 | 20,576 |
Operating lease liabilities, non-current | 127,055 | $ 132,541 |
Initial pretax restructuring charge | 20,000 | |
Maximum [Member] | ||
ROU Assets and Lease Liabilities [Abstract] | ||
Increase (decrease) in ROU assets due to new leases as well as modifications and remeasurements to existing operating leases | 100 | |
Increase (decrease) in operating lease liabilities due to new leases as well as modifications and remeasurements to existing operating leases | $ 100 |
Operating Leases, Total Net Lea
Operating Leases, Total Net Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | ||
Net Lease Costs [Abstract] | |||
Operating lease cost | $ 5,182 | $ 5,917 | |
Variable lease cost | 278 | 344 | |
Short-term lease cost | 115 | 20 | |
Sublease income | (198) | (201) | |
Total net lease cost | [1] | $ 5,377 | $ 6,080 |
[1] Total net lease cost does not include those costs and sublease income included in Restructuring and related charges (credits) on our Unaudited Condensed Consolidated Statements of Net (Loss) Income. This includes operating leases we identified a See Note 9 , “Restructuring and Related Charges (Credits)” for more information on these programs. |
Operating Leases, Other Supplem
Operating Leases, Other Supplemental Information for Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Other Supplemental Information for Operating Leases [Abstract] | ||
Weighted-average remaining contractual lease term (years) | 8 years | 9 years |
Weighted-average discount rate | 5.87% | 5.83% |
Cash paid for amounts included in the measurement of lease liabilities [Abstract] | ||
Operating cash flows from operating leases | $ 7,341 | $ 7,974 |
Operating Leases, Reconciliatio
Operating Leases, Reconciliation of Undiscounted Cash Flows to Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Apr. 30, 2022 |
Reconciliation of Undiscounted Cash Flows to Operating Lease Liabilities [Abstract] | ||
2023 (remaining 9 months) | $ 20,619 | |
2024 | 25,940 | |
2025 | 24,556 | |
2026 | 22,226 | |
2027 | 17,871 | |
Thereafter | 77,513 | |
Total future undiscounted minimum lease payments | 188,725 | |
Less: Imputed interest | 41,882 | |
Present value of minimum lease payments | 146,843 | |
Less: Current portion | 19,788 | $ 20,576 |
Noncurrent portion | $ 127,055 | $ 132,541 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Stock-based Compensation [Abstract] | ||
Share-based compensation expense | $ 7,123 | $ 6,341 |
Performance-based Stock Awards [Member] | ||
Stock-based Compensation [Abstract] | ||
Period for achievement of performance-based targets | 3 years | |
Performance-based Stock Awards [Member] | Maximum [Member] | ||
Stock-based Compensation [Abstract] | ||
Period for achievement of performance-based targets | 3 years |
Stock-Based Compensation, Perfo
Stock-Based Compensation, Performance-Based and Other Restricted Stock Activity (Details) - $ / shares shares in Thousands | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Restricted Stock [Member] | ||
Restricted Stock [Abstract] | ||
Awards granted (in shares) | 494 | 433 |
Weighted average fair value of grant (in dollars per share) | $ 45.99 | $ 57.36 |
Performance-based Stock Awards [Member] | ||
Restricted Stock [Abstract] | ||
Period for achievement of performance-based targets | 3 years |
Stock-Based Compensation, Stock
Stock-Based Compensation, Stock Option Activity (Details) - Stock Options [Member] - $ / shares | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Stock Options [Abstract] | ||
Awards granted (in shares) | 10,000 | 220,000 |
Estimated weighted average fair value for options granted and significant weighted average assumptions used [Abstract] | ||
Weighted average fair value of options on grant date (in dollars per share) | $ 9.42 | $ 11.80 |
Weighted Average Assumptions [Abstract] | ||
Expected life of options (years) | 5 years 10 months 24 days | 6 years 3 months 18 days |
Risk-free interest rate | 0.50% | 1.10% |
Expected volatility | 31.20% | 30.60% |
Expected dividend yield | 3% | 2.40% |
Fair value of common stock on grant date (in dollars per share) | $ 45.99 | $ 57.34 |
Exercise price of stock option grant (in dollars per share) | $ 45.99 | $ 63.07 |
Maximum [Member] | ||
Stock Options [Abstract] | ||
Exercisable period | 10 years | |
Vesting on April 30, 2023 or Anniversary Date [Member] | ||
Stock Options [Abstract] | ||
Award vesting percentage | 10% | |
Vesting on April 30, 2024 or Anniversary Date [Member] | ||
Stock Options [Abstract] | ||
Award vesting percentage | 20% | |
Vesting on April 30, 2025 or Anniversary Date [Member] | ||
Stock Options [Abstract] | ||
Award vesting percentage | 30% | |
Vesting on April 30, 2026 or Anniversary Date [Member] | ||
Stock Options [Abstract] | ||
Award vesting percentage | 40% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | $ 1,142,269 | $ 1,091,291 |
Other comprehensive (loss) income before reclassifications | (16,538) | (6,088) |
Amounts reclassified from accumulated other comprehensive loss | 1,395 | 2,278 |
Total other comprehensive (loss) income | (15,143) | (3,810) |
Balance | 1,082,326 | 1,077,905 |
Accumulated Other Comprehensive Loss [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | (508,146) | (490,790) |
Balance | (523,289) | (494,600) |
Foreign Currency Translation [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | (329,566) | (257,941) |
Other comprehensive (loss) income before reclassifications | (19,780) | (5,937) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Total other comprehensive (loss) income | (19,780) | (5,937) |
Balance | (349,346) | (263,878) |
Unamortized Retirement Costs [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | (182,226) | (228,146) |
Other comprehensive (loss) income before reclassifications | 3,979 | 142 |
Amounts reclassified from accumulated other comprehensive loss | 1,102 | 1,447 |
Total other comprehensive (loss) income | 5,081 | 1,589 |
Balance | (177,145) | (226,557) |
Interest Rate Swaps [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | 3,646 | (4,703) |
Other comprehensive (loss) income before reclassifications | (737) | (293) |
Amounts reclassified from accumulated other comprehensive loss | 293 | 831 |
Total other comprehensive (loss) income | (444) | 538 |
Balance | $ 3,202 | $ (4,165) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss, Reclassification out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Amortization from Accumulated Other Comprehensive Loss [Abstract] | ||
Pension expense | $ (494) | $ (2,854) |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||
Amortization from Accumulated Other Comprehensive Loss [Abstract] | ||
Pension expense | $ 1,500 | $ 1,800 |
Reconciliation of Weighted Av_3
Reconciliation of Weighted Average Shares Outstanding (Details) - shares shares in Thousands | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Reconciliation of Weighted Average Shares Outstanding [Abstract] | ||
Weighted average shares outstanding (in shares) | 55,736 | 55,869 |
Shares used for basic (loss) earnings per share (in shares) | 55,736 | 55,869 |
Dilutive effect of unvested restricted stock units and other stock awards (in shares) | 0 | 730 |
Shares used for diluted (loss) earnings per share (in shares) | 55,736 | 56,599 |
Stock Options [Member] | ||
Reconciliation of Weighted Average Shares Outstanding and Share Repurchases [Abstract] | ||
Antidilutive options to purchase Class A common shares, restricted shares, warrants to purchase Class A common shares, and contingently issuable restricted stock which are excluded from the table above (in shares) | 1,211 | 930 |
Restructuring and Related Cha_3
Restructuring and Related Charges (Credits), Pretax Restructuring Charges (Credits) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | ||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | [1] | $ 22,441 | $ (276) |
Initial pretax restructuring charge | 20,000 | ||
Fiscal Year 2023 Restructuring Program [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | $ 21,741 | ||
Percentage reduction in real estate square footage occupancy | 17% | ||
Initial pretax restructuring charge | $ 20,000 | ||
Fair value of operating lease ROU assets and property and equipment immediately subsequent to impairment | 2,400 | ||
Fiscal Year 2023 Restructuring Program [Member] | Severance and Termination Benefits [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | 12,097 | ||
Fiscal Year 2023 Restructuring Program [Member] | Impairment of Operating Lease ROU Assets and Property and Equipment [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | 6,106 | ||
Fiscal Year 2023 Restructuring Program [Member] | Impairment of Operating Lease ROU Assets Related to Certain Leases [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | 2,900 | ||
Fiscal Year 2023 Restructuring Program [Member] | Impairment of Operating Lease ROU Assets Related to Property and Equipment [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | 3,200 | ||
Fiscal Year 2023 Restructuring Program [Member] | Acceleration of Expense Related to Operating Lease ROU Assets and Property and Equipment [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | 1,840 | ||
Fiscal Year 2023 Restructuring Program [Member] | Acceleration of Expense of Operating Lease ROU Assets Related to Certain Leases [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | 900 | ||
Fiscal Year 2023 Restructuring Program [Member] | Acceleration of Expense of Operating Lease ROU Assets Related to Property and Equipment [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | 900 | ||
Fiscal Year 2023 Restructuring Program [Member] | Facility Related Charges, Net [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | 1,698 | ||
Fiscal Year 2023 Restructuring Program [Member] | Research [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | 81 | ||
Fiscal Year 2023 Restructuring Program [Member] | Academic & Professional Learning [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | 5,914 | ||
Fiscal Year 2023 Restructuring Program [Member] | Education Services [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | 830 | ||
Fiscal Year 2023 Restructuring Program [Member] | Corporate Expenses [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | 14,916 | ||
Business Optimization Program [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | 700 | (276) | |
Restructuring and related charges incurred to date | 65,535 | ||
Business Optimization Program [Member] | Severance and Termination Benefits [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | (114) | (614) | |
Restructuring and related charges incurred to date | 35,005 | ||
Business Optimization Program [Member] | Impairment of Operating Lease ROU Assets and Property and Equipment [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | 0 | 0 | |
Restructuring and related charges incurred to date | 15,079 | ||
Business Optimization Program [Member] | Acceleration of Expense Related to Operating Lease ROU Assets and Property and Equipment [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | 0 | 0 | |
Restructuring and related charges incurred to date | 3,378 | ||
Business Optimization Program [Member] | Facility Related Charges, Net [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | 814 | 338 | |
Restructuring and related charges incurred to date | 10,333 | ||
Business Optimization Program [Member] | Other Activities [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | 0 | 0 | |
Restructuring and related charges incurred to date | 1,740 | ||
Business Optimization Program [Member] | Research [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | 0 | 216 | |
Restructuring and related charges incurred to date | 3,882 | ||
Business Optimization Program [Member] | Academic & Professional Learning [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | (124) | 171 | |
Restructuring and related charges incurred to date | 13,126 | ||
Business Optimization Program [Member] | Education Services [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | 3 | (34) | |
Restructuring and related charges incurred to date | 4,316 | ||
Business Optimization Program [Member] | Corporate Expenses [Member] | |||
Summary of pretax restructuring charges [Abstract] | |||
Restructuring and related charges | 821 | $ (629) | |
Restructuring and related charges incurred to date | $ 44,211 | ||
[1]See Note 9, “Restructuring and Related Charges (Credits)” for these charges by segment. |
Restructuring and Related Cha_4
Restructuring and Related Charges (Credits), Activity (Details) $ in Thousands | 3 Months Ended |
Jul. 31, 2022 USD ($) | |
Fiscal Year 2023 Restructuring Program [Member] | |
Activity for Restructuring and Related Charges Liability [Roll Forward] | |
Restructuring liability, beginning of period | $ 0 |
Charges/(Credits) | 12,097 |
Payments | (3,795) |
Foreign translation & other adjustments | 30 |
Restructuring liability, end of period | 8,332 |
Fiscal Year 2023 Restructuring Program [Member] | Severance and Termination Benefits [Member] | |
Activity for Restructuring and Related Charges Liability [Roll Forward] | |
Restructuring liability, beginning of period | 0 |
Charges/(Credits) | 12,097 |
Payments | (3,795) |
Foreign translation & other adjustments | 30 |
Restructuring liability, end of period | 8,332 |
Business Optimization Program [Member] | |
Activity for Restructuring and Related Charges Liability [Roll Forward] | |
Restructuring liability, beginning of period | 2,079 |
Charges/(Credits) | (114) |
Payments | (100) |
Foreign translation & other adjustments | (30) |
Restructuring liability, end of period | 1,835 |
Business Optimization Program [Member] | Severance and Termination Benefits [Member] | |
Activity for Restructuring and Related Charges Liability [Roll Forward] | |
Restructuring liability, beginning of period | 2,079 |
Charges/(Credits) | (114) |
Payments | (100) |
Foreign translation & other adjustments | (30) |
Restructuring liability, end of period | $ 1,835 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | ||
Jul. 31, 2022 USD ($) Segment | Jul. 31, 2021 USD ($) | ||
Segment Information [Abstract] | |||
Number of reportable segments | Segment | 3 | ||
Revenue | $ 487,569 | $ 488,388 | |
Adjusted operating income | 10,070 | 40,692 | |
Depreciation and amortization | 58,279 | 54,566 | |
Accelerated amortization expense | [1] | 4,594 | 0 |
Operating Segments [Member] | |||
Segment Information [Abstract] | |||
Adjusted contribution to profit | 58,737 | 85,486 | |
Depreciation and amortization | 54,123 | 50,429 | |
Operating Segments [Member] | Research [Member] | |||
Segment Information [Abstract] | |||
Revenue | [2] | 274,913 | 274,756 |
Adjusted contribution to profit | [2] | 69,104 | 79,024 |
Depreciation and amortization | [2] | 23,801 | 23,762 |
Operating Segments [Member] | Academic & Professional Learning [Member] | |||
Segment Information [Abstract] | |||
Revenue | [2] | 132,959 | 139,264 |
Adjusted contribution to profit | [3] | 1,375 | 8,323 |
Depreciation and amortization | [3] | 16,532 | 18,364 |
Operating Segments [Member] | Education Services [Member] | |||
Segment Information [Abstract] | |||
Revenue | 79,697 | 74,368 | |
Adjusted contribution to profit | [3] | (11,742) | (1,861) |
Depreciation and amortization | 13,790 | 8,303 | |
Corporate [Member] | |||
Segment Information [Abstract] | |||
Adjusted contribution to profit | (48,667) | (44,794) | |
Depreciation and amortization | $ 4,156 | $ 4,137 | |
[1] As described above, this accelerated amortization relates to the mthree trademark. zation expense of $ million in the three months ended July 31, 2022. This amortization expense was an adjustment to the Education Services Adjusted contribution to profit. In addition, it was included in Depreciation and amortization in the table above for segment reporting. |
Segment Information, Reconcilia
Segment Information, Reconciliation of Consolidated US GAAP Operating (Loss) Income to Non-GAAP Adjusted Operating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | ||
Reconciliation of Consolidated US GAAP Operating (Loss) Income to Non-GAAP Adjusted Operating Income [Abstract] | |||
US GAAP Operating (Loss) Income | $ (16,965) | $ 40,968 | |
Adjustments [Abstract] | |||
Restructuring and related charges (credits) | [1] | 22,441 | (276) |
Accelerated amortization expense of an intangible asset | [2] | 4,594 | 0 |
Non-GAAP Adjusted Operating Income | $ 10,070 | $ 40,692 | |
[1]See Note 9, “Restructuring and Related Charges (Credits)” for these charges by segment.[2] As described above, this accelerated amortization relates to the mthree trademark. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Apr. 30, 2022 |
Inventories [Abstract] | ||
Finished goods | $ 29,110 | $ 31,270 |
Work-in-process | 1,096 | 1,729 |
Paper and other materials | 270 | 275 |
Total inventories before estimated sales returns and LIFO reserve | 30,476 | 33,274 |
Inventory value of estimated sales returns | 7,455 | 7,820 |
LIFO reserve | (4,509) | (4,509) |
Inventories, net | $ 33,422 | $ 36,585 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jul. 31, 2022 | Apr. 30, 2022 | ||
Activity in Goodwill by Segment [Roll Forward] | |||
Balance, beginning of period | [1] | $ 1,302,142 | |
Foreign translation adjustment | (12,900) | ||
Balance, end of period | 1,289,242 | ||
Research [Member] | |||
Activity in Goodwill by Segment [Roll Forward] | |||
Balance, beginning of period | [1] | 610,416 | |
Foreign translation adjustment | [1] | (9,530) | |
Balance, end of period | [1] | 600,886 | |
Academic & Professional Learning [Member] | |||
Activity in Goodwill by Segment [Roll Forward] | |||
Balance, beginning of period | [1] | 498,136 | |
Foreign translation adjustment | (3,108) | ||
Balance, end of period | 495,028 | ||
Education Services [Member] | |||
Activity in Goodwill by Segment [Roll Forward] | |||
Balance, beginning of period | [2] | 193,590 | |
Foreign translation adjustment | [2] | (262) | |
Balance, end of period | [2] | $ 193,328 | |
Cumulative pretax noncash goodwill impairment | $ 110,000 | ||
[1]The Research segment was previously referred to as Research Publishing & Platforms.[2]The Education Services goodwill balance as of April 30, 2022 includes a cumulative pretax noncash goodwill impairment of $110.0 million. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Jul. 31, 2022 | Jul. 31, 2021 | Apr. 30, 2022 | |||
Intangible assets with definite lives, net [Abstract] | |||||
Intangible assets with definite lives, net | $ 780,004 | $ 813,130 | [1] | ||
Intangible assets with indefinite lives [Abstract] | |||||
Intangible assets with indefinite lives | 115,804 | 118,299 | [1] | ||
Intangible assets (excluding goodwill) [Abstract] | |||||
Total intangible assets, net | 895,808 | 931,429 | [1] | ||
Accelerated amortization expense | [2] | 4,594 | $ 0 | ||
Brands and Trademarks [Member] | |||||
Intangible assets with indefinite lives [Abstract] | |||||
Intangible assets with indefinite lives | 37,000 | 37,000 | [1] | ||
Accumulated impairment | 93,100 | ||||
Content and Publishing Rights [Member] | |||||
Intangible assets with indefinite lives [Abstract] | |||||
Intangible assets with indefinite lives | 78,804 | 81,299 | [1] | ||
Content and Publishing Rights [Member] | |||||
Intangible assets with definite lives, net [Abstract] | |||||
Intangible assets with definite lives, net | 483,180 | 499,937 | [1] | ||
Customer Relationships [Member] | |||||
Intangible assets with definite lives, net [Abstract] | |||||
Intangible assets with definite lives, net | 234,684 | 242,058 | [1] | ||
Developed Technology [Member] | |||||
Intangible assets with definite lives, net [Abstract] | |||||
Intangible assets with definite lives, net | 51,380 | 54,721 | [1] | ||
Accumulated impairment | 2,800 | ||||
Brands and Trademarks [Member] | |||||
Intangible assets with definite lives, net [Abstract] | |||||
Intangible assets with definite lives, net | [3] | 10,390 | 16,021 | [1] | |
Covenants Not to Compete [Member] | |||||
Intangible assets with definite lives, net [Abstract] | |||||
Intangible assets with definite lives, net | $ 370 | $ 393 | [1] | ||
[1]The developed technology balance as of April 30, 2022 is presented net of accumulated impairments and write-offs of $2.8 million. The indefinite-lived brands and trademarks as of April 30, 2022 is net of accumulated impairments of $93.1 million.[2] As described above, this accelerated amortization relates to the mthree trademark. zation expense of $ million in the three months ended July 31, 2022. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Effective income tax rate [Abstract] | ||
Effective tax rate as reported | 23.70% | 68.60% |
U.K. [Member] | ||
Effective income tax rate [Abstract] | ||
Non-cash deferred tax expense from re-measurement of net deferred tax liabilities | $ 20.7 | |
U.K. [Member] | Minimum [Member] | ||
Effective income tax rate [Abstract] | ||
Foreign statutory tax rate | 19% | |
U.K. [Member] | Maximum [Member] | ||
Effective income tax rate [Abstract] | ||
Foreign statutory tax rate | 25% |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Components of net pension income for defined benefit plans [Abstract] | ||
Service cost | $ 200 | $ 307 |
Interest cost | 6,189 | 5,223 |
Expected return on plan assets | (8,384) | (10,259) |
Amortization of prior service cost | (23) | (22) |
Amortization of net actuarial loss | 1,524 | 1,897 |
Net pension income | (494) | (2,854) |
Employer defined benefit pension plan contributions | 3,900 | 4,500 |
Defined Contribution Savings Plans [Abstract] | ||
Expense for employer defined contribution savings plans | $ 8,800 | $ 9,100 |
Debt and Available Credit Fac_3
Debt and Available Credit Facilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Jul. 31, 2022 | Jul. 31, 2021 | Apr. 30, 2022 | May 30, 2019 | ||
Components of Total Debt Outstanding [Abstract] | |||||
Short-term portion of long-term debt | [1] | $ 21,875 | $ 18,750 | ||
Long-term debt, less current portion | 917,236 | 768,277 | |||
Total debt | 939,111 | 787,027 | |||
Unamortized issuance costs | $ 300 | 300 | |||
Amended and Restated RCA [Member] | |||||
Debt and Available Credit Facilities [Abstract] | |||||
Term of credit facility | 5 years | ||||
Amortization expense of the lender and non-lender fees in interest expense | $ 300 | $ 300 | |||
Term Loan A Facility [Member] | |||||
Debt and Available Credit Facilities [Abstract] | |||||
Term of credit facility | 5 years | ||||
Term Loan A Facility [Member] | Amended and Restated RCA [Member] | |||||
Components of Total Debt Outstanding [Abstract] | |||||
Long-term debt, less current portion | [2] | $ 198,135 | 204,343 | ||
Debt and Available Credit Facilities [Abstract] | |||||
Credit agreement face amount | $ 250,000 | ||||
Revolving Credit Facility [Member] | |||||
Debt and Available Credit Facilities [Abstract] | |||||
Term of credit facility | 5 years | ||||
Revolving Credit Facility [Member] | Amended and Restated RCA [Member] | |||||
Components of Total Debt Outstanding [Abstract] | |||||
Long-term debt, less current portion | $ 719,101 | $ 563,934 | |||
Debt and Available Credit Facilities [Abstract] | |||||
Amount of financing available under credit facilities | $ 1,250,000 | ||||
Line of Credit [Member] | |||||
Debt and Available Credit Facilities [Abstract] | |||||
Weighted average interest rate on total debt outstanding during the period | 2.83% | 2.02% | |||
Weighted average interest rate on total debt at period end | 2.99% | 2.55% | |||
Syndicate Bank Group led by Bank of America [Member] | Revolving Credit Facility [Member] | Amended and Restated RCA [Member] | |||||
Debt and Available Credit Facilities [Abstract] | |||||
Optional credit limit increase available on request | $ 500,000 | ||||
Minimum increments in which optional credit limit increase may be requested | 50,000 | ||||
Unused borrowing capacity under our Amended and Restated RCA and other facilities | $ 531,900 | ||||
Syndicate Bank Group led by Bank of America [Member] | Revolving Credit Facility [Member] | Amended and Restated RCA [Member] | Minimum [Member] | |||||
Debt and Available Credit Facilities [Abstract] | |||||
Line of credit facility fee percentage | 0.15% | ||||
Syndicate Bank Group led by Bank of America [Member] | Revolving Credit Facility [Member] | Amended and Restated RCA [Member] | Maximum [Member] | |||||
Debt and Available Credit Facilities [Abstract] | |||||
Line of credit facility fee percentage | 0.25% | ||||
Syndicate Bank Group led by Bank of America [Member] | Revolving Credit Facility [Member] | Amended and Restated RCA [Member] | LIBOR [Member] | Minimum [Member] | |||||
Debt and Available Credit Facilities [Abstract] | |||||
Applicable margin | 0.98% | ||||
Syndicate Bank Group led by Bank of America [Member] | Revolving Credit Facility [Member] | Amended and Restated RCA [Member] | LIBOR [Member] | Maximum [Member] | |||||
Debt and Available Credit Facilities [Abstract] | |||||
Applicable margin | 1.50% | ||||
Syndicate Bank Group led by Bank of America [Member] | Revolving Credit Facility [Member] | Amended and Restated RCA [Member] | Base Rate [Member] | Minimum [Member] | |||||
Debt and Available Credit Facilities [Abstract] | |||||
Applicable margin | 0% | ||||
Syndicate Bank Group led by Bank of America [Member] | Revolving Credit Facility [Member] | Amended and Restated RCA [Member] | Base Rate [Member] | Maximum [Member] | |||||
Debt and Available Credit Facilities [Abstract] | |||||
Applicable margin | 0.50% | ||||
Syndicate Bank Group led by Bank of America [Member] | Revolving Credit Facility [Member] | Amended and Restated RCA [Member] | Federal Funds Effective Rate [Member] | |||||
Debt and Available Credit Facilities [Abstract] | |||||
Margin rate over reference rate used in determining base rate | 0.50% | ||||
Syndicate Bank Group led by Bank of America [Member] | Revolving Credit Facility [Member] | Amended and Restated RCA [Member] | Eurocurrency Rate [Member] | |||||
Debt and Available Credit Facilities [Abstract] | |||||
Margin rate over reference rate used in determining base rate | 1% | ||||
[1]Relates to our term loan A under the Amended and Restated RCA.[2]Amounts are shown net of unamortized issuance costs of $0.3 million as of July 31, 2022 and $0.3 million as of April 30, 2022. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Apr. 30, 2022 | |
Derivative Instruments and Hedging Activities [Abstract] | |||
Total debt outstanding | $ 939,111 | $ 787,027 | |
Unamortized debt issuance costs | 300 | 300 | |
Variable rate loans outstanding | 939,400 | ||
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments and Hedging Activities [Abstract] | |||
Notional amount | 500,000 | 500,000 | |
Net losses reclassified from Accumulated other comprehensive loss into Interest expense | (400) | $ (1,100) | |
Interest Rate Swaps [Member] | Recurring [Member] | Level 2 [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments and Hedging Activities [Abstract] | |||
Assets fair value of derivative instrument | 6,300 | 5,800 | |
Liabilities of derivative instrument | 900 | 200 | |
Interest Rate Swaps [Member] | Recurring [Member] | Level 2 [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Non-current Assets [Member] | |||
Derivative Instruments and Hedging Activities [Abstract] | |||
Assets fair value of derivative instrument | 5,000 | 4,900 | |
Interest Rate Swaps [Member] | Recurring [Member] | Level 2 [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Prepaid Expenses and Other Current Assets [Member] | |||
Derivative Instruments and Hedging Activities [Abstract] | |||
Assets fair value of derivative instrument | $ 1,300 | $ 900 | |
Interest Rate Swaps [Member] | June 2019 Interest Rate Swap (Variable Rate Loans) [Member] | Designated as Hedging Instrument [Member] | LIBOR [Member] | |||
Derivative Instruments and Hedging Activities [Abstract] | |||
Inception date | Jun. 24, 2019 | ||
Notional amount | $ 100,000 | ||
Fixed Interest Rate | 1.65% | ||
Term of variable rate | 1 month | ||
Term of derivative instrument | 3 years | ||
Expiration date | Jul. 15, 2022 | ||
Interest Rate Swaps [Member] | June 2022 Interest Rate Swap (Variable Rate Loans) [Member] | Designated as Hedging Instrument [Member] | LIBOR [Member] | |||
Derivative Instruments and Hedging Activities [Abstract] | |||
Inception date | Jun. 16, 2022 | ||
Notional amount | $ 100,000 | ||
Fixed Interest Rate | 3.50% | ||
Term of variable rate | 1 month | ||
Term of derivative instrument | 3 years | ||
Expiration date | May 15, 2024 |
Capital Stock and Changes in _3
Capital Stock and Changes in Capital Accounts, Share Repurchases (Details) - $ / shares | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Class A [Member] | ||
Share Repurchases [Abstract] | ||
Shares repurchased (in shares) | 212 | 129 |
Average price (in dollars per share) | $ 47.12 | $ 56.88 |
Class B [Member] | ||
Share Repurchases [Abstract] | ||
Shares repurchased (in shares) | 0 | 1 |
Average price (in dollars per share) | $ 47.12 | $ 56.88 |
Capital Stock and Changes in _4
Capital Stock and Changes in Capital Accounts, Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Jul. 20, 2022 | Jul. 31, 2022 | Jul. 31, 2021 | |
Cash Dividends [Abstract] | |||
Total dividend | $ 19,468 | $ 19,307 | |
Class A [Member] | |||
Cash Dividends [Abstract] | |||
Quarterly cash dividend (in dollars per share) | $ 0.3475 | $ 0.3450 | |
Class B [Member] | |||
Cash Dividends [Abstract] | |||
Quarterly cash dividend (in dollars per share) | $ 0.3475 | $ 0.3450 | |
Dividend Declared in Q1 2023 [Member] | Class A [Member] | |||
Cash Dividends [Abstract] | |||
Date of declaration by board of directors | Jun. 22, 2022 | ||
Quarterly cash dividend (in dollars per share) | $ 0.3475 | ||
Total dividend | $ 19,400 | ||
Dividend paid date | Jul. 20, 2022 | ||
Shareholders of record as of date | Jul. 06, 2022 | ||
Dividend Declared in Q1 2023 [Member] | Class B [Member] | |||
Cash Dividends [Abstract] | |||
Date of declaration by board of directors | Jun. 22, 2022 | ||
Quarterly cash dividend (in dollars per share) | $ 0.3475 | ||
Total dividend | $ 19,400 | ||
Dividend paid date | Jul. 20, 2022 | ||
Shareholders of record as of date | Jul. 06, 2022 |
Capital Stock and Changes in _5
Capital Stock and Changes in Capital Accounts, Changes in Common Stock (Details) - shares shares in Thousands | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Class A [Member] | ||
Changes in Common Stock [Abstract] | ||
Number of shares, beginning of year (in shares) | 70,226 | 70,208 |
Common stock class conversions (in shares) | 0 | 3 |
Number of shares issued, end of period (in shares) | 70,226 | 70,211 |
Changes in Common Stock in Treasury [Abstract] | ||
Number of shares held, beginning of year (in shares) | 23,515 | 23,419 |
Purchases of treasury shares (in shares) | 212 | 129 |
Restricted shares issued from exercise of stock options (in shares) | 0 | (22) |
Shares withheld for taxes (in shares) | 98 | 85 |
Number of shares held, end of period (in shares) | 23,557 | 23,390 |
Number of Common Stock outstanding, end of period (in shares) | 46,669 | 46,821 |
Class A [Member] | Non-PSU Awards [Member] | ||
Changes in Common Stock in Treasury [Abstract] | ||
Restricted shares issued under stock-based compensation plans (in shares) | (119) | (118) |
Class A [Member] | PSU Awards [Member] | ||
Changes in Common Stock in Treasury [Abstract] | ||
Restricted shares issued under stock-based compensation plans (in shares) | (149) | (103) |
Class B [Member] | ||
Changes in Common Stock [Abstract] | ||
Number of shares, beginning of year (in shares) | 12,956 | 12,974 |
Common stock class conversions (in shares) | 0 | (3) |
Number of shares issued, end of period (in shares) | 12,956 | 12,971 |
Changes in Common Stock in Treasury [Abstract] | ||
Number of shares held, beginning of year (in shares) | 3,924 | 3,922 |
Purchases of treasury shares (in shares) | 0 | 1 |
Number of shares held, end of period (in shares) | 3,924 | 3,923 |
Number of Common Stock outstanding, end of period (in shares) | 9,032 | 9,048 |