Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | |||
31-May-14 | Nov. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
Common Class A [Member] | Common Stock [Member] | |||
Document Information [Line Items] | ' | ' | ' | ' |
Entity Registrant Name | 'SCHOLASTIC CORP | ' | ' | ' |
Document Type | '10-K | ' | ' | ' |
Current Fiscal Year End Date | '--05-31 | ' | ' | ' |
Entity Common Stock, Shares Outstanding | ' | ' | 1,656,200 | 30,613,339 |
Entity Public Float | ' | $807,200,649 | ' | ' |
Amendment Flag | 'false | ' | ' | ' |
Entity Central Index Key | '0000866729 | ' | ' | ' |
Entity Current Reporting Status | 'No | ' | ' | ' |
Entity Voluntary Filers | 'No | ' | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' | ' |
Document Period End Date | 31-May-14 | ' | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' | ' |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Income Statement [Abstract] | ' | ' | ' |
Revenues | $1,822.30 | $1,792.40 | $2,139.10 |
Operating costs and expenses: | ' | ' | ' |
Cost of goods sold | 846 | 829.6 | 984.6 |
Selling, general and administrative expenses | 812.5 | 815 | 878.5 |
Depreciation and amortization | 61.4 | 66.5 | 68.8 |
Severance | 11.3 | 13.4 | 14.9 |
Loss on leases and asset impairments | 28 | 0 | 7 |
Total operating costs and expenses | 1,759.20 | 1,724.50 | 1,953.80 |
Operating income | 63.1 | 67.9 | 185.3 |
Interest income | 0.6 | 1.2 | 1 |
Interest expense | -7.5 | -15.7 | -16.5 |
Loss on investments and other | -5.8 | 0 | -0.1 |
Earnings (loss) from continuing operations before income taxes | 50.4 | 53.4 | 169.7 |
Provision (benefit) for income taxes | 6.1 | 17.6 | 61.6 |
Earnings (loss) from continuing operations | 44.3 | 35.8 | 108.1 |
Earnings (loss) from discontinued operations, net of tax | 0.1 | -4.7 | -5.7 |
Net income (loss) | $44.40 | $31.10 | $102.40 |
Basic: | ' | ' | ' |
Earnings (loss) from continuing operations (in Dollars per share) | $1.38 | $1.12 | $3.45 |
Earnings (loss) from discontinued operations (in Dollars per share) | $0.01 | ($0.15) | ($0.18) |
Net income (loss) (in Dollars per share) | $1.39 | $0.97 | $3.27 |
Diluted: | ' | ' | ' |
Earnings (loss) from continuing operations (in Dollars per share) | $1.36 | $1.10 | $3.39 |
Earnings (loss) from discontinued operations (in Dollars per share) | $0 | ($0.15) | ($0.18) |
Net income (loss) (in Dollars per share) | $1.36 | $0.95 | $3.21 |
Dividends declared per common share (in Dollars per share) | $0.57 | $0.50 | $0.45 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income (loss) | $44.40 | $31.10 | $102.40 |
Other comprehensive income (loss), net: | ' | ' | ' |
Foreign currency translation adjustments | -3.1 | -2.6 | -8.2 |
Pension and post-retirement adjustments: | ' | ' | ' |
Amortization of prior service credit | -0.2 | -0.4 | -0.6 |
Amortization of unrecognized gains and losses included in net periodic cost | 13.5 | 11.8 | -11.5 |
Total other comprehensive income (loss) | 10.2 | 8.8 | -20.3 |
Comprehensive income (loss) | $54.60 | $39.90 | $82.10 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | 31-May-14 | 31-May-13 |
In Millions, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $20.90 | $87.40 |
Accounts receivable (less allowance for doubtful accounts of $17.3 at May 31, 2014 and $19.3 at May 31, 2013) | 253.3 | 214.9 |
Inventories | 272.7 | 278.1 |
Deferred income taxes | 81 | 79.2 |
Prepaid expenses and other current assets | 35.1 | 61.2 |
Current assets of discontinued operations | 0.4 | 0.4 |
Total current assets | 663.4 | 721.2 |
Property, Plant and Equipment | ' | ' |
Land | 77.4 | 37.3 |
Buildings | 243.3 | 100.7 |
Capitalized software | 214 | 239.9 |
Furniture, fixtures and equipment | 225.1 | 241.4 |
Leasehold improvements | 171.6 | 172.4 |
Gross property, plant and equipment | 931.4 | 791.7 |
Less accumulated depreciation and amortization | -464.4 | -480.1 |
Net property, plant and equipment | 467 | 311.6 |
Other Assets and Deferred Charges: | ' | ' |
Prepublication costs | 143.1 | 147.3 |
Royalty advances (less allowance for reserves of $87.0 at May 31, 2014 and $81.5 at May 31, 2013) | 38.5 | 37 |
Production costs | 4.5 | 1.7 |
Goodwill | 144.5 | 157.9 |
Other intangibles | 12.2 | 14.6 |
Noncurrent deferred income taxes | 4.1 | 14.9 |
Other assets and deferred charges | 51.2 | 34.8 |
Total other assets and deferred charges | 398.1 | 408.2 |
Total assets | 1,528.50 | 1,441 |
Current Liabilities: | ' | ' |
Lines of credit and current portion of long-term debt | 15.8 | 2 |
Capital lease obligations | 0 | 0.2 |
Accounts payable | 145.3 | 156.2 |
Accrued royalties | 34.1 | 34.4 |
Deferred revenue | 48.7 | 48.1 |
Other accrued expenses | 184.7 | 179.5 |
Current liabilities of discontinued operations | 1.1 | 1.3 |
Total current liabilities | 429.7 | 421.7 |
Noncurrent Liabilities: | ' | ' |
Long-term debt | 120 | 0 |
Capital lease obligations | 0 | 57.5 |
Other noncurrent liabilities | 63.4 | 97.4 |
Total noncurrent liabilities | 183.4 | 154.9 |
Commitments and Contingencies: | 0 | 0 |
Stockholdersb Equity: | ' | ' |
Preferred Stock, $1.00 par value Authorized - 2,000,000; Issued - None | 0 | 0 |
Additional paid-in capital | 580.8 | 582.9 |
Accumulated other comprehensive income (loss) | -55.2 | -65.4 |
Retained earnings | 765.1 | 738.9 |
Treasury stock at cost | -375.7 | -392.4 |
Total stockholdersb equity | 915.4 | 864.4 |
Total liabilities and stockholdersb equity | 1,528.50 | 1,441 |
Class A Stock [Member] | ' | ' |
Stockholdersb Equity: | ' | ' |
Common Stock | ' | 0 |
Common Stock [Member] | ' | ' |
Stockholdersb Equity: | ' | ' |
Common Stock | $0.40 | $0.40 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | 31-May-14 | 31-May-13 |
In Millions, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts (in Dollars) | $19.30 | $25.90 |
Allowance for royalty advances (in Dollars) | $81.50 | $77.80 |
Preferred stock par value (in Dollars per share) | $1 | $1 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common Stock, par value per share (in Dollars per share) | $0.01 | $0.01 |
Common Stock, shares authorized | 70,000,000 | 70,000,000 |
Common Stock, shares issued | 42,911,624 | 42,911,624 |
Common Stock, shares outstanding | 30,105,479 | 29,795,911 |
Class A Stock [Member] | ' | ' |
Common Stock, par value per share (in Dollars per share) | $0.01 | $0.01 |
Common Stock, shares authorized | 4,000,000 | 4,000,000 |
Common Stock, shares issued | 1,656,200 | 1,656,200 |
Common Stock, shares outstanding | 1,656,200 | 1,656,200 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Stockholdersb Equity (USD $) | Total | Class A Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Treasury Stock At Cost [Member] |
In Millions, except Share data | |||||||
Balance at May. 31, 2011 | $740 | $0 | $0.40 | $576.60 | ($53.90) | $635.80 | ($418.90) |
Balance (in Shares) at May. 31, 2011 | ' | 1,656,200 | 29,316,691 | ' | ' | ' | ' |
Net Income (loss) | 102.4 | ' | ' | ' | ' | 102.4 | ' |
Foreign currency translation adjustment | -8.2 | ' | ' | ' | -8.2 | ' | ' |
Pension and postretirement adjustments, net of tax | -12.1 | ' | ' | ' | -12.1 | ' | ' |
Stock-based compensation | 12.2 | ' | ' | 12.2 | ' | ' | ' |
Proceeds from issuance of common stock pursuant to stock-based compensation plans | 22.4 | ' | ' | 22.4 | ' | ' | ' |
Proceeds from issuance of common stock pursuant to stock-based compensation (in Shares) | ' | ' | 724,613 | ' | ' | ' | ' |
Purchases of treasury stock at cost | -13.1 | ' | ' | ' | ' | ' | -13.1 |
Purchases of treasury stock at cost (in Shares) | ' | ' | -475,672 | ' | ' | ' | ' |
Treasury stock issued pursuant to stock purchase plans | 1 | ' | ' | -28.2 | ' | ' | 29.2 |
Treasury stock issued pursuant to stock purchase plans (in Shares) | ' | ' | 230,279 | ' | ' | ' | ' |
Dividends | -14.3 | ' | ' | ' | ' | -14.3 | ' |
Balance at May. 31, 2012 | 830.3 | 0 | 0.4 | 583 | -74.2 | 723.9 | -402.8 |
Balance (in Shares) at May. 31, 2012 | ' | 1,656,200 | 29,795,911 | ' | ' | ' | ' |
Net Income (loss) | 31.1 | ' | ' | ' | ' | 31.1 | ' |
Foreign currency translation adjustment | -2.6 | ' | ' | ' | -2.6 | ' | ' |
Pension and postretirement adjustments, net of tax | 11.4 | ' | ' | ' | 11.4 | ' | ' |
Stock-based compensation | 7.3 | ' | ' | 7.3 | ' | ' | ' |
Proceeds from issuance of common stock pursuant to stock-based compensation plans | 14.7 | ' | ' | 14.7 | ' | ' | ' |
Proceeds from issuance of common stock pursuant to stock-based compensation (in Shares) | ' | ' | 507,197 | ' | ' | ' | ' |
Purchases of treasury stock at cost | -11.8 | ' | ' | ' | ' | ' | -11.8 |
Purchases of treasury stock at cost (in Shares) | ' | ' | -432,330 | ' | ' | ' | ' |
Treasury stock issued pursuant to stock purchase plans | 0.1 | ' | ' | -22.1 | ' | ' | 22.2 |
Treasury stock issued pursuant to stock purchase plans (in Shares) | ' | ' | 234,701 | ' | ' | ' | ' |
Dividends | -16.1 | ' | ' | ' | ' | -16.1 | ' |
Balance at May. 31, 2013 | 864.4 | 0 | 0.4 | 582.9 | -65.4 | 738.9 | -392.4 |
Balance (in Shares) at May. 31, 2013 | ' | 1,656,200 | 30,105,479 | ' | ' | ' | ' |
Net Income (loss) | 44.4 | ' | ' | ' | ' | 44.4 | ' |
Foreign currency translation adjustment | -3.1 | ' | ' | ' | -3.1 | ' | ' |
Pension and postretirement adjustments, net of tax | 13.3 | ' | ' | ' | 13.3 | ' | ' |
Stock-based compensation | 9.3 | ' | ' | 9.3 | ' | ' | ' |
Proceeds from issuance of common stock pursuant to stock-based compensation plans | 12.9 | ' | ' | 12.9 | ' | ' | ' |
Proceeds from issuance of common stock pursuant to stock-based compensation (in Shares) | ' | ' | 473,827 | ' | ' | ' | ' |
Purchases of treasury stock at cost | -6.2 | ' | ' | ' | ' | ' | -6.2 |
Purchases of treasury stock at cost (in Shares) | -200,000 | ' | -215,484 | ' | ' | ' | ' |
Treasury stock issued pursuant to stock purchase plans | -1.4 | ' | ' | -24.3 | ' | ' | 22.9 |
Treasury stock issued pursuant to stock purchase plans (in Shares) | ' | ' | 242,156 | ' | ' | ' | ' |
Dividends | -18.2 | ' | ' | ' | ' | -18.2 | ' |
Balance at May. 31, 2014 | $915.40 | $0 | $0.40 | $580.80 | ($55.20) | $765.10 | ($375.70) |
Balance (in Shares) at May. 31, 2014 | ' | 1,656,200 | 30,605,978 | ' | ' | ' | ' |
Consolidated_Statement_of_Chan1
Consolidated Statement of Changes in Stockholders Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Pension and postretirement adjustments, tax portion | $5 | $8.40 | ($6.50) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Cash flows - operating activities: | ' | ' | ' |
Net income (loss) | $44.40 | $31.10 | $102.40 |
Earnings (loss) from discontinued operations, net of tax | 0.1 | -4.7 | -5.7 |
Earnings (loss) from continuing operations | 44.3 | 35.8 | 108.1 |
Adjustments to reconcile earnings (loss) from continuing operations to net cash provided by (used in) operating activities of continuing operations: | ' | ' | ' |
Provision for losses on accounts receivable | 8.2 | 6.8 | 12.3 |
Provision for losses on inventory | 25.1 | 27.2 | 48.1 |
Provision for losses on royalty advances | 6.5 | 4.7 | 6.5 |
Loss on subleases | 0 | 0 | 6.2 |
Amortization of prepublication and production costs | 60.4 | 48.9 | 55.1 |
Depreciation and amortization | 62.7 | 68.6 | 68.8 |
Amortization of pension and post-retirement actuarial gains and losses | 5.6 | 4.8 | 4.6 |
Deferred income taxes | 8.9 | 19.6 | -37.5 |
Stock-based compensation | 9.3 | 6.3 | 12.2 |
Income from equity investments | -2.6 | -2.3 | -1.3 |
Non cash write off related to asset impairment | 28 | 7.2 | 0.8 |
Unrealized loss on investments | 5.8 | 0 | 0 |
Changes in assets and liabilities, net of amounts acquired: | ' | ' | ' |
Accounts receivable | -48.5 | 94.4 | -108.7 |
Inventories | -21.3 | -9.9 | -40.4 |
Prepaid expenses and other current assets | 24.9 | -14.2 | 10.1 |
Deferred promotion costs | -0.1 | 0.3 | 0 |
Royalty advances | -7.6 | -7 | -6.2 |
Accounts payable | -11.2 | 35.6 | -0.3 |
Other accrued expenses | 7.6 | -53.4 | 64.7 |
Accrued royalties | -0.3 | -58.5 | 58.2 |
Deferred revenue | 0.7 | 1.1 | -1.7 |
Pension and post-retirement liabilities | -16.2 | -20.8 | -7 |
Other noncurrent liabilities | -29.4 | -3.6 | 5.9 |
Other, net | -3.9 | 0.4 | 3.2 |
Total adjustments | 112.6 | 156.2 | 153.6 |
Net cash provided by (used in) operating activities of continuing operations | 156.9 | 192 | 261.7 |
Net cash provided by (used in) operating activities of discontinued operations | -0.1 | -2.9 | -1.5 |
Net cash provided by (used in) operating activities | 156.8 | 189.1 | 260.2 |
Cash flows - investing activities: | ' | ' | ' |
Prepublication and production expenditures | -66.1 | -73.8 | -58.8 |
Additions to property, plant and equipment | -27 | -54.6 | -53.7 |
Acquisition related payments | -1 | -0.3 | -9.5 |
Purchase of Building - 555 Broadway | -253.9 | 0 | 0 |
Other | 2.3 | 0.8 | 0.8 |
Net cash provided by (used in) investing activities of continuing operations | -345.7 | -127.9 | -121.2 |
Net cash provided by (used in) investing activities of discontinued operations | 0 | 3.9 | -0.1 |
Net cash provided by (used in) investing activities | -345.7 | -124 | -121.3 |
Cash flows - financing activities: | ' | ' | ' |
Net borrowings under credit agreement and revolving loan | 120 | 0 | 0 |
Repayment of term loan | 0 | 0 | -50.2 |
Repayment of 5.00% notes | 0 | -153 | 0 |
Borrowings under lines of credit | 207.4 | 23.2 | 89.2 |
Repayments of lines of credit | -193.5 | -27.5 | -80.6 |
Repayment of capital lease obligations | -0.2 | -1 | -0.7 |
Reacquisition of common stock | -6.2 | -11.8 | -13.1 |
Proceeds pursuant to stock-based compensation plans | 11.2 | 13.9 | 22.4 |
Payment of dividends | -17.8 | -15.9 | -13.2 |
Other | 1.6 | -0.6 | -1.2 |
Net cash provided by (used in) financing activities | 122.5 | -172.7 | -47.4 |
Effect of exchange rate changes on cash and cash equivalents | -0.1 | 0.1 | -1.9 |
Net increase (decrease) in cash and cash equivalents | -66.5 | -107.5 | 89.6 |
Cash and cash equivalents at beginning of period | 87.4 | 194.9 | 105.3 |
Cash and cash equivalents at end of period | 20.9 | 87.4 | 194.9 |
Supplemental Information: | ' | ' | ' |
Income taxes payments (refunds), net | 2 | 30 | 61 |
Interest paid | $7.10 | $15.10 | $15.30 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parentheticals) | 31-May-14 | 31-May-13 | 31-May-12 |
Statement of Cash Flows [Abstract] | ' | ' | ' |
Notes Repurchased Rate | 5.00% | 5.00% | 5.00% |
Description_of_the_Business_Ba
Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||
31-May-14 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||
Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies | ' | |||||||||||
DESCRIPTION OF THE BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Description of the business | ||||||||||||
Scholastic Corporation (the “Corporation” and together with its subsidiaries, “Scholastic” or the “Company”) is a global children’s publishing, education and media company. Since its founding in 1920, Scholastic has emphasized quality products and a dedication to reading and learning. The Company is the world’s largest publisher and distributor of children’s books. It is also a leading developer of educational technology products and ebooks for children. Scholastic also creates quality educational and entertainment materials and products for use in school and at home, including magazines, ebooks, children’s reference and non-fiction materials, teacher materials, television programming and film. The Company is the leading operator of school-based book clubs and book fairs in the United States. It distributes its products and services through these proprietary channels, as well as directly to schools and libraries, through retail stores and through the internet. The Company’s website, scholastic.com, is a leading site for teachers, classrooms and parents and an award-winning destination for children. In addition to its operations in the United States, Scholastic has operations in Canada, the United Kingdom, Australia, New Zealand, Ireland, India, China, Singapore and other parts of Asia, and, through its export business, sells products in more than 150 countries. | ||||||||||||
Basis of presentation | ||||||||||||
Principles of consolidation | ||||||||||||
The Consolidated Financial Statements include the accounts of the Corporation and all wholly-owned and majority-owned subsidiaries. All significant intercompany transactions are eliminated in consolidation. | ||||||||||||
Discontinued Operations | ||||||||||||
The Company closed or sold several operations during fiscal 2010, 2012 and 2013. During the first quarter of fiscal 2012, the Company ceased operations in its direct-to-home catalog business specializing in toys. In the fourth quarter of fiscal 2013, the Company sold a facility that was previously classified as held for sale and also discontinued a computer club business which was previously included in the Children’s Book Publishing and Distribution segment and a subscription-based business which was previously reported in the Media, Licensing and Advertising segment. All of these businesses are classified as discontinued operations in the Company’s financial statements for all periods presented. | ||||||||||||
Use of estimates | ||||||||||||
The Company’s Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements involves the use of estimates and assumptions by management, which affects the amounts reported in the Consolidated Financial Statements and accompanying notes. The Company bases its estimates on historical experience, current business factors, and various other assumptions believed to be reasonable under the circumstances, all of which are necessary in order to form a basis for determining the carrying values of assets and liabilities. Actual results may differ from those estimates and assumptions. | ||||||||||||
The Company’s significant estimates include those developed for: | ||||||||||||
• | Accounts receivable, returns and allowances | |||||||||||
• | Pension and post-retirement obligations | |||||||||||
• | Uncertain tax positions | |||||||||||
• | Inventory reserves | |||||||||||
• | Gross profits for book fair operations during interim periods | |||||||||||
• | Sales taxes | |||||||||||
• | Royalty advance reserves | |||||||||||
• | Customer reward programs | |||||||||||
• | Impairment testing for goodwill for assessment and measurement, intangibles and other long-lived | |||||||||||
assets and investments | ||||||||||||
Summary of Significant Accounting Policies | ||||||||||||
Revenue recognition | ||||||||||||
The Company’s revenue recognition policies for its principal businesses are as follows: | ||||||||||||
School-Based Book Clubs – Revenue from school-based book clubs is recognized upon shipment of the products. For ebooks, revenue is recognized upon electronic delivery to the customer. | ||||||||||||
School-Based Book Fairs – Revenues associated with school-based book fairs are related to sales of product. Book fairs are typically run by schools and/or parent teacher organizations over a five business-day period. The amount of revenue recognized for each fair represents the net amount of cash collected at the fair. Revenue is fully recognized at the completion of the fair. At the end of reporting periods, the Company defers estimated revenue for those fairs that have not been completed as of the period end based on the number of fair days occurring after period end on a straight-line calculation of the full fair’s revenue. | ||||||||||||
Trade –Revenue from the sale of children’s books for distribution in the retail channel is primarily recognized when risks and benefits transfer to the customer, or when the product is on sale and available to the public. For newly published titles, the Company, on occasion, contractually agrees with its customers when the publication may be first offered for sale to the public, or an agreed upon “Strict Laydown Date.” For such titles, the risks and benefits of the publication are not deemed to be transferred to the customer until such time that the publication can contractually be sold to the public, and the Company defers revenue on sales of such titles until such time as the customer is permitted to sell the product to the public. Revenue for ebooks, which is the net amount received from the retailer, is recognized upon electronic delivery to the customer by the retailer. | ||||||||||||
A reserve for estimated returns is established at the time of sale and recorded as a reduction to revenue. Actual returns are charged to the reserve as received. The calculation of the reserve for estimated returns is based on historical return rates, sales patterns, type of product and expectations. Actual returns could differ from the Company’s estimate. A reserve for estimated bad debts is established at the time of sale and is based on the aging of accounts receivable and specific reserves on a customer-by-customer basis, where applicable. | ||||||||||||
Educational Technology and Services – For shipments to schools, revenue is recognized when risks and benefits transfer to the customer. Shipments to depositories are on consignment and revenue is recognized based on actual shipments from the depositories to the schools. For certain software-based products, the Company offers new customers installation, maintenance and training with these products and, in such cases, revenue is deferred and recognized as services are delivered or over the life of the contract. Revenues from contracts with multiple deliverables are recognized as each deliverable is earned, based on the relative selling price of each deliverable, provided the deliverable has value to customers on a standalone basis, the customer has full use of the deliverable and there is no further obligation from the Company. If there is a right of return, revenue is recognized if delivery of the undelivered items or services is probable and substantially in control of the Company. | ||||||||||||
Classroom and Supplemental Materials Publishing – Revenue from the sale of classroom and supplemental materials is recognized upon shipment of the products. | ||||||||||||
Film Production and Licensing – Revenue from the sale of film rights, principally for the home video and domestic and foreign television markets, is recognized when the film has been delivered and is available for showing or exploitation. Licensing revenue is recorded in accordance with royalty agreements at the time the licensed materials are available to the licensee and collections are reasonably assured. | ||||||||||||
Magazines – Revenue is deferred and recognized ratably over the subscription period, as the magazines are delivered. | ||||||||||||
Magazine Advertising – Revenue is recognized when the magazine is for sale and available to the subscribers. | ||||||||||||
Scholastic In-School Marketing – Revenue is recognized when the Company has satisfied its obligations under the program and the customer has acknowledged acceptance of the product or service. Certain revenues may be deferred pending future deliverables. | ||||||||||||
Cash equivalents | ||||||||||||
Cash equivalents consist of short-term investments with original maturities of three months or less. The Consolidated Balance Sheets include restricted cash of $0.3 at May 31, 2014 and $1.0 at May 31, 2013, which is reported in “Other current assets.” | ||||||||||||
Accounts receivable | ||||||||||||
Accounts receivable are recorded net of allowances for doubtful accounts and reserves for returns. In the normal course of business, the Company extends credit to customers that satisfy predefined credit criteria. The Company is required to estimate the collectability of its receivables. Reserves for returns are based on historical return rates and sales patterns. In order to develop the estimate of returns that will be received subsequent to fiscal year end, management considers patterns of sales and returns in the months preceding the fiscal year end, as well as actual returns received subsequent to year end, available sell-through information and other return rate information that management believes is relevant. Allowances for doubtful accounts are established through the evaluation of accounts receivable aging and prior collection experience to estimate the ultimate collectability of these receivables. At the time the Company determines that a receivable balance, or any portion thereof, is deemed to be permanently uncollectible, the balance is then written off. | ||||||||||||
Inventories | ||||||||||||
Inventories, consisting principally of books, are stated at the lower of cost, using the first-in, first-out method, or market. The Company records a reserve for excess and obsolete inventory based upon a calculation using the historical usage rates, sales patterns of its products and specifically identified obsolete inventory. | ||||||||||||
Property, plant and equipment | ||||||||||||
Property, plant and equipment are stated at cost. Depreciation and amortization are recorded on a straight-line basis, over the estimated useful lives of the assets. Buildings have an estimated useful life, for purposes of depreciation, of forty years. Capitalized software, net of accumulated amortization, was $33.4 and $50.7 at May 31, 2014 and 2013, respectively. Capitalized software is depreciated over a period of three to seven years. Amortization expense for capitalized software was $28.8, $31.2 and $27.6 for the fiscal years ended May 31, 2014, 2013 and 2012, respectively. Furniture, fixtures and equipment are depreciated over periods not exceeding ten years. Leasehold improvements are amortized over the life of the lease or the life of the assets, whichever is shorter. The Company evaluates the depreciation periods of property, plant and equipment to determine whether events or circumstances indicate that the asset’s carrying value is not recoverable or warrant revised estimates of useful lives. In fiscal 2014, the Company recognized an impairment charge of $7.6 for assets related to Storia operating system-specific apps that will no longer be supported due to the planned transition to a Storia streaming model. | ||||||||||||
The Company acquired its headquarters space (including land, building, fixtures and related personal property and leases) at 555 Broadway, New York, NY (the "Property") from its landlord, ISE 555 Broadway, LLC ("Landlord") under a Purchase and Sale Agreement (the "Purchase Agreement") on February 28, 2014. The acquisition price under the Purchase Agreement was consideration of $255.7 (net $253.9 in cash), including closing costs. Prior to the acquisition, the Property was recorded by the Company as a capital lease. The Company recorded the difference between the purchase price and the carrying amount of the capital lease obligation as an adjustment to the carrying amount of the asset. | ||||||||||||
Leases | ||||||||||||
Lease agreements are evaluated to determine whether they are capital or operating leases. When substantially all of the risks and benefits of property ownership have been transferred to the Company, as determined by the test criteria in the current authoritative guidance, the lease is recognized as a capital lease. | ||||||||||||
Capital leases are capitalized at the lower of the net present value of the total amount of rent payable under the leasing agreement (excluding finance charges) or the fair market value of the leased asset. Capital lease assets are depreciated on a straight-line basis, over a period consistent with the Company’s normal depreciation policy for tangible fixed assets, but not exceeding the lease term. Interest charges are expensed over the period of the lease in relation to the carrying value of the capital lease obligation. | ||||||||||||
Rent expense for operating leases, which may include free rent or fixed escalation amounts in addition to minimum lease payments, is recognized on a straight-line basis over the duration of each lease term. Sublease income is recognized on a straight-line basis over the duration of each lease term. To the extent expected sublease income is less than expected rental payments the Company recognizes a current loss on the difference between the fair values of the sublease and the rental payments. | ||||||||||||
Prepublication costs | ||||||||||||
Prepublication costs are incurred in all of the Company’s reportable segments. Prepublication costs include costs incurred to create and develop the art, prepress, editorial, digital conversion and other content required for the creation of the master copy of a book or other media. While prepublication costs in the Children’s Book Publishing and Distribution segment are relatively modest amounts for each individual title, there are a large number of separate titles published annually. Prepublication costs in the Educational Technology and Services segment are often in excess of $1 for an individual program, as the development of intellectual property or content for complex intervention and educational programs requires significant resources and investment. | ||||||||||||
Prepublication costs are amortized on a straight-line basis over a three-to-seven-year period based on expected future revenues. The Company regularly reviews the recoverability of the capitalized costs based on expected future revenues. | ||||||||||||
Royalty advances | ||||||||||||
Royalty advances are incurred in all of the Company’s reportable segments, but are most prevalent in the Children’s Book Publishing and Distribution segment and enable the Company to obtain contractual commitments from authors to produce content. The Company regularly provides authors with advances against expected future royalty payments, often before the books are written. Upon publication and sale of the books or other media, the authors generally will not receive further royalty payments until the contractual royalties earned from sales of such books or other media exceed such advances. | ||||||||||||
Royalty advances are initially capitalized and subsequently expensed as related revenues are earned or when the Company determines future recovery through earndowns is not probable. The Company has a long history of providing authors with royalty advances, and it tracks each advance earned with respect to the sale of the related publication. The royalties earned are applied first against the remaining unearned portion of the advance. Historically, the longer the unearned portion of the advance remains outstanding, the less likely it is that the Company will recover the advance through the sale of the publication. The Company applies this historical experience to its existing outstanding royalty advances to estimate the likelihood of recoveries through earndowns. Additionally, the Company’s editorial staff regularly reviews its portfolio of royalty advances to determine if individual royalty advances are not recoverable through earndowns for discrete reasons, such as the death of an author prior to completion of a title or titles, a Company decision to not publish a title, poor market demand or other relevant factors that could impact recoverability. | ||||||||||||
Goodwill and intangible assets | ||||||||||||
Goodwill and other intangible assets with indefinite lives are not amortized and are reviewed for impairment annually or more frequently if impairment indicators arise. | ||||||||||||
With regard to goodwill, the Company compares the estimated fair values of its identified reporting units to the carrying values of their net assets. The Company first performs a qualitative assessment to determine whether it is more likely than not that the fair values of its identified reporting units are less than their carrying value. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount the Company performs the two-step test. For each of the reporting units, the estimated fair value is determined utilizing the expected present value of the projected future cash flows of the units, in addition to comparisons to similar companies. The Company reviews its definition of reporting units annually or more frequently if conditions indicate that the reporting units may change. The Company evaluates its operating segments to determine if there are components one level below the operating segment. A component is present if discrete financial information is available, and segment management regularly reviews the operating results of the business. If an operating segment only contains a single component, that component is determined to be a reporting unit for goodwill impairment testing purposes. If an operating segment contains multiple components, the Company evaluates the economic characteristics of these components. Any components within an operating segment that share similar economic characteristics are aggregated and deemed to be a reporting unit for goodwill impairment testing purposes. Components within the same operating segment that do not share similar economic characteristics are deemed to be individual reporting units for goodwill impairment testing purposes. The Company has identified twelve separate reporting units for goodwill impairment testing purposes. | ||||||||||||
With regard to other intangibles with indefinite lives, the Company determines the fair value by asset, which is then compared to its carrying value. The Company first performs a qualitative assessment to determine whether it is more likely than not that the fair value of its identified reporting unit is less than its carrying value. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount the Company performs a quantitative test. The estimated fair value is determined utilizing the expected present value of the projected future cash flows of the asset, market comparables for similar businesses and other relevant information. | ||||||||||||
Intangible assets with definite lives consist principally of customer lists, covenants not to compete, and certain other intellectual property assets and are amortized over their expected useful lives. Customer lists are amortized on a straight-line basis over a five-year period, while covenants not to compete are amortized on a straight-line basis over their contractual term. Other intellectual property assets are amortized over their remaining useful lives, which range from five to twenty years. | ||||||||||||
Income taxes | ||||||||||||
The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and the tax basis of assets and liabilities and are measured using enacted tax rates and laws that will be in effect when the differences are expected to enter into the determination of taxable income. | ||||||||||||
The Company believes that its taxable earnings, during the periods when the temporary differences giving rise to deferred tax assets become deductible or when tax benefit carryforwards may be utilized, should be sufficient to realize the related future income tax benefits. For those jurisdictions where the expiration date of the tax benefit carryforwards or the projected taxable earnings indicates that realization is not likely, the Company establishes a valuation allowance. | ||||||||||||
In assessing the need for a valuation allowance, the Company estimates future taxable earnings, with consideration for the feasibility of on-going tax planning strategies and the realizability of tax benefit carryforwards, to determine which deferred tax assets are more likely than not to be realized in the future. Valuation allowances related to deferred tax assets can be impacted by changes to tax laws, changes to statutory tax rates and future taxable earnings. In the event that actual results differ from these estimates in future periods, the Company may need to adjust the valuation allowance. | ||||||||||||
The Company accounts for uncertain tax positions using a two-step method. Recognition occurs when an entity concludes that a tax position, based solely on technical merits, is more likely than not to be sustained upon examination. If a tax position is more likely than not to be sustained upon examination, the amount recognized is the largest amount of benefit, determined on a cumulative probability basis, which is more likely than not to be realized upon settlement. The Company assesses all income tax positions and adjusts its reserves against these positions periodically based upon these criteria. The Company also assesses potential penalties and interest associated with these tax positions, and includes these amounts as a component of income tax expense. | ||||||||||||
In calculating the provision for income taxes on an interim basis, the Company uses an estimate of the annual effective tax rate based upon the facts and circumstances known. The Company’s effective tax rate is based on expected income and statutory tax rates and permanent differences between financial statement and tax return income applicable to the Company in the various jurisdictions in which the Company operates. | ||||||||||||
The Company assesses foreign investment levels periodically to determine if all or a portion of the Company’s investments in foreign subsidiaries are indefinitely invested. If foreign investments are not expected to be indefinitely invested, the Company provides for income taxes on the portion that is not indefinitely invested. | ||||||||||||
Non-income Taxes | ||||||||||||
The Company is subject to tax examinations for sales-based taxes. A number of these examinations are ongoing and, in certain cases, have resulted in assessments from taxing authorities. Where a sales tax liability in respect to a jurisdiction is probable and can be reliably estimated, the Company has made accruals for these matters which are reflected in the Company’s Consolidated Financial Statements. These amounts are included in the Consolidated Financial Statements in Selling, general and administrative expenses. Future developments relating to the foregoing could result in adjustments being made to these accruals. In fiscal 2012, the Company recorded accruals of $19.7 based on assessments related to sales tax audits in two jurisdictions, which resulted in payments of $15.3 in fiscal 2013. | ||||||||||||
Unredeemed incentive credits | ||||||||||||
The Company employs incentive programs to encourage sponsor participation in its book clubs and book fairs. These programs allow the sponsors to accumulate credits which can then be redeemed for Company products or other items offered by the Company. The Company recognizes a liability for the estimated costs of providing these credits at the time of the recognition of revenue for the underlying purchases of Company product that resulted in the granting of the credits. As the credits are redeemed, such liability is reduced. | ||||||||||||
Other noncurrent liabilities | ||||||||||||
All of the rate assumptions discussed below impact the Company’s calculations of its pension and post-retirement obligations. The rates applied by the Company are based on the portfolios’ past average rates of return, discount rates and actuarial information. Any change in market performance, interest rate performance, assumed health care costs trend rate or compensation rates could result in significant changes in the Company’s pension and post-retirement obligations. | ||||||||||||
Pension obligations – Scholastic Corporation and certain of its subsidiaries have defined benefit pension plans covering the majority of their employees who meet certain eligibility requirements. The Company’s pension plans and other post-retirement benefits are accounted for using actuarial valuations. | ||||||||||||
The Company’s pension calculations are based on three primary actuarial assumptions: the discount rate, the long-term expected rate of return on plan assets, and the anticipated rate of compensation increases. The discount rate is used in the measurement of the projected, accumulated and vested benefit obligations and the interest cost component of net periodic pension costs. The long-term expected return on plan assets is used to calculate the expected earnings from the investment or reinvestment of plan assets. The anticipated rate of compensation increase is used to estimate the increase in compensation for participants of the plan from their current age to their assumed retirement age. The estimated compensation amounts are used to determine the benefit obligations and the service cost. Pension benefits in the cash balance plan for employees located in the United States are based on formulas in which the employees’ balances are credited monthly with interest based on the average rate for one-year United States Treasury Bills plus 1%. Contribution credits are based on employees’ years of service and compensation levels during their employment periods for the periods prior to June 1, 2009. In fiscal year 2014, the Company recorded a pretax settlement charge of $1.7 related to lump sum benefits paid for certain US pension obligations. | ||||||||||||
Other post-retirement benefits – The Company provides post-retirement benefits, consisting of healthcare and life insurance benefits, to eligible retired United States-based employees. The post-retirement medical plan benefits are funded on a pay-as-you-go basis, with the Company paying a portion of the premium and the employee paying the remainder. The Company calculates the existing benefit obligation, based on the discount rate and the assumed health care cost trend rate. The discount rate is used in the measurement of the projected and accumulated benefit obligations and the interest cost component of net periodic post-retirement benefit cost. The assumed health care cost trend rate is used in the measurement of the long-term expected increase in medical claims. | ||||||||||||
Foreign currency translation | ||||||||||||
The Company’s non-United States dollar-denominated assets and liabilities are translated into United States dollars at prevailing rates at the balance sheet date and the revenues, costs and expenses are translated at the weighted average rates prevailing during each reporting period. Net gains or losses resulting from the translation of the foreign financial statements and the effect of exchange rate changes on long-term intercompany balances are accumulated and charged directly to the foreign currency translation adjustment component of stockholders’ equity until such time as the operations are substantially liquidated or sold. The Company assesses foreign investment levels periodically to determine if all or a portion of the Company’s investments in foreign subsidiaries are indefinitely invested. | ||||||||||||
Shipping and handling costs | ||||||||||||
Amounts billed to customers for shipping and handling are classified as revenue. Costs incurred in shipping and handling are recognized in Cost of goods sold. | ||||||||||||
Advertising costs | ||||||||||||
The Company incurs costs for both direct-response and non-direct-response advertising. The Company capitalizes direct-response advertising costs for expenditures, primarily in its Classroom Magazines division. The asset is amortized on a cost-pool-by-cost-pool basis over the period during which the future benefits are expected to be received. Included in Prepaid expenses and other current assets on the balance sheet is $4.6 and $4.5 of capitalized advertising costs as of May 31, 2014 and 2013, respectively. The Company expenses non-direct-response advertising costs as incurred. | ||||||||||||
Stock-based compensation | ||||||||||||
The Company recognizes the cost of services received in exchange for any stock-based awards. The Company recognizes the cost on a straight-line basis over an award’s requisite service period, which is generally the vesting period, based on the award’s fair value at the date of grant. | ||||||||||||
The fair values of stock options granted by the Company are estimated at the date of grant using the Black-Scholes option-pricing model. The Company’s determination of the fair value of stock-based payment awards using this option-pricing model is affected by the price of the Common Stock as well as by assumptions regarding highly complex and subjective variables, including, but not limited to, the expected price volatility of the Common Stock over the terms of the awards, the risk-free interest rate, and actual and projected employee stock option exercise behaviors. Estimates of fair value are not intended to predict actual future events or the value that may ultimately be realized by those who receive these awards. | ||||||||||||
Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates, in order to derive the Company’s best estimate of awards ultimately expected to vest. In determining the estimated forfeiture rates for stock-based awards, the Company annually conducts an assessment of the actual number of equity awards that have been forfeited previously. When estimating expected forfeitures, the Company considers factors such as the type of award, the employee class and historical experience. The estimate of stock-based awards that will ultimately be forfeited requires significant judgment and, to the extent that actual results or updated estimates differ from current estimates, such amounts will be recorded as a cumulative adjustment in the period such estimates are revised. | ||||||||||||
The table set forth below provides the estimated fair value of options granted by the Company during fiscal years 2014, 2013 and 2012 and the significant weighted average assumptions used in determining such fair value under the Black-Scholes option pricing model. The average expected life represents an estimate of the period of time stock options are expected to remain outstanding based on the historical exercise behavior of the option grantees. The risk-free interest rate was based on the U.S. Treasury yield curve corresponding to the expected life in effect at the time of the grant. The volatility was estimated based on historical volatility corresponding to the expected life. | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Estimated fair value of stock options granted | $ | 10.37 | $ | 9.77 | $ | 9.3 | ||||||
Assumptions: | ||||||||||||
Expected dividend yield | 1.7 | % | 1.6 | % | 1.4 | % | ||||||
Expected stock price volatility | 38.6 | % | 37.5 | % | 36.7 | % | ||||||
Risk-free interest rate | 2.2 | % | 0.9 | % | 1.6 | % | ||||||
Expected life of options | 6 years | 6 years | 7 years | |||||||||
NEW ACCOUNTING PRONOUNCEMENTS | ||||||||||||
In June 2014, the Financial Accounting Standards Board (the "FASB") issued an update to the authoritative guidance related to stock compensation to resolve diverse accounting treatments of awards linked to performance targets and how to account for share-based payment awards that require a specific performance target to be achieved for employees to become eligible to vest in the awards. | ||||||||||||
The amendments require that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. A reporting entity should apply existing guidance as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the service has already been rendered. If it becomes probable that the performance target will be achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. | ||||||||||||
The amendments in this update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Company is evaluating the impact that this update will have on its consolidated financial position, results of operations and cash flows. | ||||||||||||
In May 2014, the FASB announced that it is amending the FASB Accounting Standards Codification by issuing Topic 606, Revenue from Contracts with Customers, at the same time as the International Accounting Standards Board (the "IASB") is issuing International Financial Reporting Standards 15, Revenue from Contracts with Customers. The issuance of this authoritative guidance completes the joint effort by the FASB and the IASB to clarify the principles for recognizing revenue and improve financial reporting by creating common revenue recognition guidance. | ||||||||||||
The authoritative guidance provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. | ||||||||||||
To achieve that core principle, an entity should apply the following steps: | ||||||||||||
• | Step 1: Identify the contract(s) with a customer. | |||||||||||
• | Step 2: Identify the performance obligations in the contract. | |||||||||||
• | Step 3: Determine the transaction price. | |||||||||||
• | Step 4: Allocate the transaction price to the performance obligations in the contract. | |||||||||||
• | Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. | |||||||||||
Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The update provides guidance for transactions that are not otherwise addressed comprehensively in authoritative guidance (for example, service revenue, contract modifications, and licenses of intellectual property). The amendments in this update are to be applied on a retrospective basis, utilizing one of two different methodologies. The amendments in this update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is evaluating the impact of this update on its consolidated financial position, results of operations and cash flows. | ||||||||||||
In April 2014, the FASB issued an update to the authoritative guidance related to the reporting of discontinued operations. The amendments in this update address the criteria for reporting discontinued operations and enhance convergence of the FASB’s and the IASB's reporting requirements for discontinued operations. The amendments revise the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. The amendments also require expanded disclosures for discontinued operations. The amendments are to be applied prospectively to all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The Company is evaluating the impact of this update on its consolidated financial position, results of operations and cash flows. | ||||||||||||
In July 2013, the FASB issued an update to the authoritative guidance related to the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists to address diversity in practice in the presentation of unrecognized tax benefits. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should generally be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. |
Acquisitions
Acquisitions | 12 Months Ended |
31-May-14 | |
Business Combinations [Abstract] | ' |
Acquisitions | ' |
ACQUISITIONS | |
On January 3, 2012, the Company acquired Learners Publishing, a Singapore-based publisher of supplemental learning materials for English-Language Learners, for $3.0, net of cash acquired. As a result of this transaction, the Company recorded $1.5 of goodwill. The results of operations of this business subsequent to the acquisition date are included in the International segment. | |
On February 8, 2012, the Company acquired the business and certain assets of Weekly Reader, a publisher of weekly educational classroom magazines designed for children in grades pre-K–12, for $2.0 in cash and $4.8 in assumed liabilities, which were fulfilled by the Company as of May 31, 2012. The Company utilized internally-developed discounted cash flow forecasts and market comparisons of royalty rates to determine the fair value of the assets acquired and the amount to be allocated to goodwill. As a result, the Company recognized $1.4 of goodwill and $5.4 of intangible assets. The results of operations of this business subsequent to the acquisition date are included in the Classroom and Supplemental Materials Publishing segment, and certain assets will benefit the Children’s Book Publishing and Distribution segment. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | |||||||||||
31-May-14 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
Discontinued Operations | ' | |||||||||||
DISCONTINUED OPERATIONS | ||||||||||||
The Company continuously evaluates its portfolio of businesses for both impairment and economic viability. The Company monitors the expected cash proceeds to be realized from the disposition of discontinued operations’ assets, and adjusts asset values accordingly. | ||||||||||||
In the first quarter of fiscal 2012, the Company ceased operations in its direct-to-home catalog business specializing in toys. This business was a separate reporting unit included in the Media, Licensing and Advertising segment. The prior fiscal year loss before income taxes includes lease costs associated with a vacant facility which formerly served the Company’s direct-to-home toy catalog business. | ||||||||||||
In the fourth quarter of fiscal 2012, the Company reviewed the estimate of the fair value less cost to sell of its Maumelle facility and recognized an additional charge of $2.2. The Company used market value estimates of the property and an estimate of the anticipated costs to sell the asset. The Company subsequently sold the Maumelle facility during the fourth quarter of fiscal 2013 for approximately $5.0, recognizing a loss on the sale in the amount of $1.1. | ||||||||||||
In the fourth quarter of fiscal 2013, the Company discontinued a computer club business which was included in the Children’s Book Publishing and Distribution segment. In addition, the Company discontinued a subscription-based business which was previously reported in the Media, Licensing and Advertising segment. All of these businesses are classified as discontinued operations in the Company’s Consolidated Financial Statements. | ||||||||||||
The following table summarizes the operating results of the discontinued operations for the fiscal years ended May 31: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenues | $ | 0 | $ | 6.2 | $ | 9.8 | ||||||
Gain (loss) on sale | — | (1.1 | ) | — | ||||||||
Earnings (loss) before income taxes | 0.2 | (7.2 | ) | (7.2 | ) | |||||||
Income tax benefit (provision) | (0.1 | ) | 2.5 | 1.5 | ||||||||
Earnings (loss) from discontinued operations, net of tax | $ | 0.1 | $ | (4.7 | ) | $ | (5.7 | ) | ||||
The following table sets forth the assets and liabilities of the discontinued operations included in the Consolidated Balance Sheets of the Company as of May 31: | ||||||||||||
2014 | 2013 | |||||||||||
Accounts receivable, net | $ | — | $ | 0 | ||||||||
Other assets | 0.4 | 0.4 | ||||||||||
Current assets of discontinued operations | $ | 0.4 | $ | 0.4 | ||||||||
Accrued expenses and other current liabilities | 1.1 | 1.3 | ||||||||||
Current liabilities of discontinued operations | $ | 1.1 | $ | 1.3 | ||||||||
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||||||||||||||||||
31-May-14 | ||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||||||
Segment Information | ' | |||||||||||||||||||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||||||||||||||||||
The Company categorizes its businesses into five reportable segments: Children’s Book Publishing and Distribution; Educational Technology and Services; Classroom and Supplemental Materials Publishing; Media, Licensing and Advertising; and International. This classification reflects the nature of products and services consistent with the method by which the Company’s chief operating decision-maker assesses operating performance and allocates resources. | ||||||||||||||||||||||||||||||||
• | Children’s Book Publishing and Distribution operates as an integrated business which includes the publication and distribution of children’s books, media and interactive products in the United States through school-based book clubs and book fairs and the trade channel. This segment is comprised of three operating segments. | |||||||||||||||||||||||||||||||
• | Educational Technology and Services includes the production and distribution to schools of curriculum-based learning technology and materials for grades pre-kindergarten to 12 in the United States, together with related implementation and assessment services and school consulting services. This segment is comprised of one operating segment. | |||||||||||||||||||||||||||||||
• | Classroom and Supplemental Materials Publishing includes the publication and distribution to schools and libraries of children’s books, classroom magazines, supplemental classroom materials and print and on-line reference and non-fiction products for grades pre-kindergarten to 12 in the United States. This segment is comprised of two operating segments. | |||||||||||||||||||||||||||||||
• | Media, Licensing and Advertising includes the production and/or distribution of digital media, consumer promotions and merchandising and advertising revenue, including sponsorship programs. This segment is comprised of two operating segments. | |||||||||||||||||||||||||||||||
• | International includes the publication and distribution of products and services outside the United States by the Company’s international operations, and its export and foreign rights businesses. This segment is comprised of three operating segments. | |||||||||||||||||||||||||||||||
The following table sets forth information for the Company’s segments for the three fiscal years ended May 31: | ||||||||||||||||||||||||||||||||
Children's | Educational | Classroom & | Media, | Overhead (1) (2) | Total | International | Total | |||||||||||||||||||||||||
Book | Technology | Supplemental | Licensing & | Domestic | ||||||||||||||||||||||||||||
Publishing & | & Services | Materials | Advertising (1) | |||||||||||||||||||||||||||||
Distribution (1) | Publishing | |||||||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||||||
Revenues | $ | 873.5 | $ | 248.7 | $ | 229.6 | $ | 56.2 | $ | — | $ | 1,408.00 | $ | 414.3 | $ | 1,822.30 | ||||||||||||||||
Bad debts | 2.6 | 0.9 | 1.6 | 0.1 | — | 5.2 | 3 | 8.2 | ||||||||||||||||||||||||
Depreciation and | 31.9 | 28 | 10.5 | 5.3 | 39 | 114.7 | 7.1 | 121.8 | ||||||||||||||||||||||||
amortization (3) | ||||||||||||||||||||||||||||||||
Asset Impairments | 28 | — | — | — | — | 28 | — | 28 | ||||||||||||||||||||||||
Segment operating income | 22.8 | 39.6 | 37.5 | (0.7 | ) | (66.9 | ) | 32.3 | 30.8 | 63.1 | ||||||||||||||||||||||
(loss) | ||||||||||||||||||||||||||||||||
Segment assets at May 31, | 371.3 | 173.7 | 166.8 | 30.7 | 532.9 | 1,275.40 | 252.7 | 1,528.10 | ||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||||||
Goodwill at May 31, 2014 | 40.9 | 22.7 | 65.4 | 5.4 | — | 134.4 | 10.1 | 144.5 | ||||||||||||||||||||||||
Expenditures for long-lived | 43.4 | 30.7 | 10.2 | 8.1 | 269.6 | 362 | 11.7 | 373.7 | ||||||||||||||||||||||||
assets including royalty | ||||||||||||||||||||||||||||||||
advances | ||||||||||||||||||||||||||||||||
Long-lived assets at May | 135.3 | 119 | 90.1 | 14.1 | 406.1 | 764.6 | 63.6 | 828.2 | ||||||||||||||||||||||||
31, 2014 | ||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||
Revenues | $ | 846.9 | $ | 227.7 | $ | 218 | $ | 58.7 | $ | — | $ | 1,351.30 | $ | 441.1 | $ | 1,792.40 | ||||||||||||||||
Bad debts | 1.8 | 1.1 | 1.4 | 0.1 | — | 4.4 | 2.4 | 6.8 | ||||||||||||||||||||||||
Depreciation and | 31.5 | 22.7 | 9.4 | 3 | 41.6 | 108.2 | 7.2 | 115.4 | ||||||||||||||||||||||||
amortization (3) | ||||||||||||||||||||||||||||||||
Segment operating income | 24.5 | 29.5 | 29.6 | 4.7 | (60.2 | ) | 28.1 | 39.8 | 67.9 | |||||||||||||||||||||||
(loss) | ||||||||||||||||||||||||||||||||
Segment assets at May 31, | 407.5 | 170.8 | 168.6 | 26.9 | 402.1 | 1,175.90 | 264.7 | 1,440.60 | ||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||
Goodwill at May 31, 2013 | 54.3 | 22.7 | 65.4 | 5.4 | — | 147.8 | 10.1 | 157.9 | ||||||||||||||||||||||||
Expenditures for long-lived | 52.3 | 40.3 | 10.9 | 3.7 | 33.3 | 140.5 | 13.4 | 153.9 | ||||||||||||||||||||||||
assets including royalty | ||||||||||||||||||||||||||||||||
advances | ||||||||||||||||||||||||||||||||
Long-lived assets at May | 165.3 | 116.5 | 91.4 | 12 | 236.5 | 621.7 | 68 | 689.7 | ||||||||||||||||||||||||
31, 2013 | ||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||
Revenues | $ | 1,111.30 | $ | 254.7 | $ | 208.2 | $ | 75.3 | $ | — | $ | 1,649.50 | $ | 489.6 | $ | 2,139.10 | ||||||||||||||||
Bad debts | 6.4 | 0.7 | 1.9 | 0.1 | — | 9.1 | 3.2 | 12.3 | ||||||||||||||||||||||||
Depreciation and | 33.1 | 22.2 | 7.7 | 12.8 | 39 | 114.8 | 9.1 | 123.9 | ||||||||||||||||||||||||
amortization (3) | ||||||||||||||||||||||||||||||||
Asset Impairments | 0.5 | — | — | — | 6.2 | 6.7 | 0.3 | 7 | ||||||||||||||||||||||||
Segment operating income | 152.2 | 49.2 | 18.3 | (4.9 | ) | (87.1 | ) | 127.7 | 57.6 | 185.3 | ||||||||||||||||||||||
(loss) | ||||||||||||||||||||||||||||||||
Segment assets at May 31, | 543.5 | 168.5 | 163.6 | 38.1 | 438.6 | 1,352.30 | 310.3 | 1,662.60 | ||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||
Goodwill at May 31, 2012 | 54.3 | 22.7 | 65.4 | 5.4 | — | 147.8 | 9.9 | 157.7 | ||||||||||||||||||||||||
Expenditures for long-lived | 44.4 | 26.2 | 17.9 | 6.3 | 37.9 | 132.7 | 13.2 | 145.9 | ||||||||||||||||||||||||
assets including royalty | ||||||||||||||||||||||||||||||||
advances | ||||||||||||||||||||||||||||||||
Long-lived assets at May | 167.5 | 101.1 | 90.3 | 11.6 | 246.7 | 617.2 | 67.1 | 684.3 | ||||||||||||||||||||||||
31, 2012 | ||||||||||||||||||||||||||||||||
-1 | As discussed in Note 3, “Discontinued Operations,” the Company closed or sold several operations during the first quarter of fiscal 2012 and the fourth quarter of fiscal 2013. All of these businesses are classified as discontinued operations in the Company’s financial statements and, as such, are not reflected in this table. | |||||||||||||||||||||||||||||||
-2 | Overhead includes all domestic corporate amounts not allocated to segments, including expenses and costs related to the management of corporate assets. Unallocated assets are principally comprised of deferred income taxes and property, plant and equipment related to the Company’s headquarters in the metropolitan New York area, its fulfillment and distribution facilities located in Missouri and its facility located in Connecticut. Overhead also includes amounts previously allocated to the Media, Licensing and Advertising segment for the Company’s direct-to-home toy catalog business that was discontinued in the first quarter of fiscal 2012 and amounts previously allocated to the Children’s Book Publishing and Distribution segment for the computer club business that was discontinued in the fourth quarter of fiscal 2013. | |||||||||||||||||||||||||||||||
-3 | Includes depreciation of property, plant and equipment and amortization of intangible assets and prepublication and production costs. |
Debt
Debt | 12 Months Ended | |||||||||||||||
31-May-14 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Debt | ' | |||||||||||||||
DEBT | ||||||||||||||||
The following table summarizes debt as of May 31: | ||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
2014 | 2013 | |||||||||||||||
Loan Agreement: | ||||||||||||||||
Revolving Loan (interest rate of 1.3%) | $ | 120 | $ | 120 | $ | — | $ | — | ||||||||
Unsecured Lines of Credit (weighted average interest | $ | 15.8 | $ | 15.8 | $ | 2 | $ | 2 | ||||||||
rates of 2.3% and 9.0%, respectively) | ||||||||||||||||
Total debt | $ | 135.8 | $ | 135.8 | $ | 2 | $ | 2 | ||||||||
Less lines of credit and current portion of long-term | (15.8 | ) | (15.8 | ) | (2.0 | ) | (2.0 | ) | ||||||||
debt | ||||||||||||||||
Total long-term debt | $ | 120 | $ | 120 | $ | — | $ | — | ||||||||
The short-term debt’s carrying value approximates its fair value. The fair values of the 5% Notes were estimated based on market quotes, where available, or dealer quotes. | ||||||||||||||||
The following table sets forth the maturities of the carrying values of the Company’s debt obligations as of May 31, 2014 for the fiscal years ending May 31: | ||||||||||||||||
2015 | $ | 15.8 | ||||||||||||||
2016 | — | |||||||||||||||
2017 | — | |||||||||||||||
2018 | 120 | |||||||||||||||
2019 | — | |||||||||||||||
Thereafter | — | |||||||||||||||
Total debt | $ | 135.8 | ||||||||||||||
Loan Agreement | ||||||||||||||||
Scholastic Corporation and Scholastic Inc. (each, a “Borrower” and together, the “Borrowers”) are parties to a $425.0 credit facility with certain banks (as amended, the “Loan Agreement”), which allows the Company to borrow, repay or prepay and reborrow at any time prior to the December 5, 2017 maturity date. Under the Loan Agreement, interest on amounts borrowed thereunder is due and payable in arrears on the last day of the interest period (defined as the period commencing on the date of the advance and ending on the last day of the period selected by the Borrower at the time each advance is made). The interest pricing under the Loan Agreement is dependent upon the Borrower’s election of a rate that is either: | ||||||||||||||||
• | A Base Rate equal to the higher of (i) the prime rate, (ii) the prevailing Federal Funds rate plus 0.500% or (iii) the Eurodollar Rate for a one month interest period plus 1% plus, in each case, an applicable spread ranging from 0.18% to 0.60%, as determined by the Company’s prevailing consolidated debt to total capital ratio. | |||||||||||||||
-or- | ||||||||||||||||
• | A Eurodollar Rate equal to the London interbank offered rate (LIBOR) plus an applicable spread ranging from 1.18% to 1.60%, as determined by the Company’s prevailing consolidated debt to total capital ratio. | |||||||||||||||
As of May 31, 2014, the indicated spread on Base Rate Advances was 0.18% and the indicated spread on Eurodollar Rate Advances was 1.18%, both based on the Company’s prevailing consolidated debt to total capital ratio. | ||||||||||||||||
The Loan Agreement also provides for the payment of a facility fee ranging from 0.20% to 0.40% per annum based upon the Company’s prevailing consolidated debt to total capital ratio. At May 31, 2014, the facility fee rate was 0.20%. | ||||||||||||||||
As of May 31, 2014, the Company’s outstanding borrowings under the Loan Agreement totaled $120.0. The Company incurred this obligation in the third quarter of fiscal 2014 to partially finance the purchase of the land and building comprising a previously leased property at 555 Broadway in New York City. While this obligation is not due until the December 5, 2017 maturity date, the Company may, from time to time, make payments to reduce this obligation when cash from operations becomes available for this purpose. | ||||||||||||||||
No borrowings were outstanding under the Loan Agreement as of May 31, 2013. | ||||||||||||||||
At May 31, 2014, the Company had open standby letters of credit totaling $5.3 issued under certain credit lines, including $0.4 under the Loan Agreement discussed above and $4.9 under the domestic credit lines discussed below. A $1.0 standby letter of credit under the Loan Agreement was canceled on February 28, 2014 due to the purchase of the building mentioned above. These letters of credit are scheduled to expire within one year; however, the Company expects that substantially all of these letters of credit will be renewed, at similar terms, prior to expiration. | ||||||||||||||||
The Loan Agreement contains certain covenants, including interest coverage and leverage ratio tests and certain limitations on the amount of dividends and other distributions, and at May 31, 2014, the Company was in compliance with these covenants. | ||||||||||||||||
Lines of Credit | ||||||||||||||||
As of May 31, 2014, the Company’s domestic credit lines available under unsecured money market bid rate credit lines totaled $5.1. There was $10.0 of outstanding borrowings under these credit lines at May 31, 2014, and no outstanding borrowings as of May 31, 2013. The weighted average interest rate on these outstanding borrowings is 1.2%. All loans made under these credit lines are at the sole discretion of the lender and at an interest rate and term agreed to at the time each loan is made, but not to exceed 365 days. These credit lines may be renewed, if requested by the Company, at the option of the lender. | ||||||||||||||||
As of May 31, 2014, the Company had various local currency credit lines, with maximum available borrowings in amounts equivalent to $34.6, underwritten by banks primarily in the United States, Canada and the United Kingdom. These credit lines are typically available for overdraft borrowings or loans up to 364 days and may be renewed, if requested by the Company, at the sole option of the lender. There were borrowings outstanding under these facilities equivalent to $5.8 at May 31, 2014 at a weighted average interest rate of 4.3%, compared to borrowings outstanding equivalent to $2.0 at May 31, 2013 at a weighted average interest rate of 9.0%. | ||||||||||||||||
5% Notes due 2013 | ||||||||||||||||
In April 2003, Scholastic Corporation issued $175.0 of 5% Notes due April 2013 (the “5% Notes”). The Company amended its existing Loan Agreement, which was scheduled to mature on June 1, 2014, to extend the maturity date to December 5, 2017, and on April 15, 2013, the Company drew under the Loan Agreement to satisfy its obligations to fully repay the 5% Notes. As of May 31, 2013, the Company had fully paid down its borrowing under the Loan Agreement. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||
31-May-14 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Commitments and Contingencies | ' | |||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
Lease obligations | ||||||||
The Company leases warehouse space, office space and equipment under various capital and operating leases over periods ranging from one to forty years. Certain of these leases provide for scheduled rent increases based on price-level factors. The Company generally does not enter into leases that call for contingent rent. In most cases, the Company expects that, in the normal course of business, leases will be renewed or replaced. Net rent expense relating to the Company’s non-cancelable operating leases for the three fiscal years ended May 31, 2014, 2013 and 2012 was $27.6, $32.9 and $38.9, respectively. | ||||||||
Amortization of assets under capital leases covering land, buildings and equipment was $0.8, $1.1 and $1.1 for the fiscal years ended May 31, 2014, 2013 and 2012, respectively, and is included in Depreciation and amortization expense. | ||||||||
The following table sets forth the composition of capital leases reflected as Property, plant and equipment in the Consolidated Balance Sheets at May 31: | ||||||||
2014 | 2013 | |||||||
Land | $ | — | $ | — | ||||
Buildings | — | 39 | ||||||
Equipment | 0 | 1 | ||||||
0 | 40 | |||||||
Accumulated amortization | 0 | (13.4 | ) | |||||
Total | $ | 0 | $ | 26.6 | ||||
The following table sets forth the aggregate minimum future annual rental commitments at May 31, 2014 under all non-cancelable leases for the fiscal years ending May 31: | ||||||||
Operating Leases | Capital Leases | |||||||
2015 | $ | 32.1 | $ | 0 | ||||
2016 | 25.7 | — | ||||||
2017 | 19.2 | — | ||||||
2018 | 14.5 | — | ||||||
2019 | 8.1 | — | ||||||
Thereafter | 14.1 | — | ||||||
Total minimum lease payments | $ | 113.7 | $ | 0 | ||||
Less minimum sublease income to be received | $ | 69.9 | $ | — | ||||
Minimum lease payments, net of sublease income | $ | 43.8 | $ | 0 | ||||
Less amount representing interest | 0 | |||||||
Present value of net minimum capital lease payments | 0 | |||||||
Less current maturities of capital lease obligations | — | |||||||
Long-term capital lease obligations | $ | 0 | ||||||
Other Commitments | ||||||||
The following table sets forth the aggregate minimum future contractual commitments at May 31, 2014 relating to royalty advances and minimum print quantities for the fiscal years ending May 31: | ||||||||
Royalty Advances | Minimum Print Quantities | |||||||
2015 | $ | 10.4 | $ | 47.6 | ||||
2016 | 2.7 | 48.3 | ||||||
2017 | 0.9 | 44.8 | ||||||
2018 | 0.8 | 45.5 | ||||||
2019 | 0 | 46.3 | ||||||
Thereafter | — | 143.4 | ||||||
Total commitments | $ | 14.8 | $ | 375.9 | ||||
The Company had open standby letters of credit of $5.3 and $6.6 issued under certain credit lines as of May 31, 2014 and 2013, respectively. These letters of credit are scheduled to expire within one year; however, the Company expects that substantially all of these letters of credit will be renewed, at similar terms, prior to expiration. | ||||||||
Contingencies | ||||||||
Various claims and lawsuits arising in the normal course of business are pending against the Company. The Company accrues a liability for such matters when it is probable that a liability has occurred and the amount of such liability can be reasonably estimated. When only a range can be estimated, the most probable amount in the range is accrued unless no amount within the range is a better estimate than any other amount, in which case the minimum amount in the range is accrued. Legal costs associated with litigation loss contingencies are expensed in the period in which they are incurred. The Company does not expect, in the case of those various claims and lawsuits arising in the normal course of business where a loss is considered probable or reasonably possible, that the reasonably possible losses from such claims and lawsuits (either individually or in the aggregate) would have a material adverse effect on the Company’s consolidated financial position or results of operations. | ||||||||
Grolier Limited is an indirect subsidiary of Scholastic Corporation, located in the United Kingdom, which ceased operations in fiscal 2008 and the operations of which are included in discontinued operations. The Company is currently in the process of settling a Grolier Limited pension plan in effect at the time it ceased operations and is evaluating the potential pension liabilities under the plan relating to the status of the plan as a defined contribution or a defined benefit plan in the context of the conversion of the plan from a defined benefit to a defined contribution plan in 1986. Based on the information currently available to it, the Company does not expect to incur any additional material liability in resolving this issue and settling the plan. |
Investments
Investments | 12 Months Ended | |||||||
31-May-14 | ||||||||
Equity Method And Cost Method Investments [Abstract] | ' | |||||||
Investments | ' | |||||||
INVESTMENTS | ||||||||
Included in the Other assets and deferred charges section of the Company’s Consolidated Balance Sheets were investments of $18.4 and $19.6 at May 31, 2014 and May 31, 2013, respectively. | ||||||||
In the first quarter of fiscal 2014, the Company acquired a 20% interest in a software development business for $1.0 in cash, | ||||||||
which was accounted for using the equity method of accounting. The investment was determined to be other than temporarily impaired in the fourth quarter of fiscal 2014, and the Company recognized a loss of $1.0. | ||||||||
The Company owns a 15.0% non-controlling interest in a book distribution business located in the UK, which is accounted for as a cost-basis investment. A decline in results for this operation in the last quarter of the fiscal year ended December 31, 2013 | ||||||||
led management to determine that this investment was other than temporarily impaired as of February 28, 2014. Accordingly, the Company recognized a loss of $4.8 in respect of this investment in the fiscal year ended May 31, 2014. | ||||||||
The Company’s 26.2% non-controlling interest in a children’s book publishing business located in the UK is accounted for using the equity method of accounting. The net value of this investment at May 31, 2014 was $18.3. The Company received $1.0 of dividends in fiscal 2014 from this investment. | ||||||||
Income from equity investments totaled $2.6 for the year ended May 31, 2014, $2.3 for the year ended May 31, 2013 and $2.6 for the year ended May 31, 2012. | ||||||||
The following table summarizes the Company’s investments as of May 31: | ||||||||
2014 | 2013 | |||||||
Cost method investments: | ||||||||
UK-based | $ | — | $ | 5 | ||||
Total cost method investments | $ | — | $ | 5 | ||||
Equity method investments: | ||||||||
UK-based | $ | 18.3 | $ | 14.6 | ||||
Other | 0.1 | 0 | ||||||
Total equity method investments | $ | 18.4 | $ | 14.6 | ||||
Total | $ | 18.4 | $ | 19.6 | ||||
Goodwill_and_Other_Intangibles
Goodwill and Other Intangibles | 12 Months Ended | |||||||
31-May-14 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Goodwill and Other Intangibles | ' | |||||||
GOODWILL AND OTHER INTANGIBLES | ||||||||
In fiscal 2014, the Company recognized an impairment of $13.4 of goodwill associated with the book clubs reporting unit in the Children’s Book Publishing and Distribution segment. In the second quarter of fiscal 2014, expected revenues for the reporting unit declined, resulting in an impairment indicator. Revenues in the first quarter were not significant for this reporting unit as schools are not in session. As of November 30, 2013, the fair value of the reporting unit was approximately $13.0 less than the carrying value of $66.9. The Company used forecasted cash flows, which were adjusted from those used in the latest annual valuation to reflect the revised outlook for the reporting unit, in determining its fair value. Management revised its outlook for the reporting unit as revenues did not meet expectations during the period, and future revenue expectations were revised consistent with the current period decline. A discount rate of 15.5% and a perpetual growth rate of 3.0% were employed for the discounted cash flow analysis . The reporting unit is dependent upon internally developed intangible assets including trade names and customer lists which have no carrying value, but have substantial fair value. In the third quarter of fiscal 2014, the Company completed step two of the goodwill impairment process, and determined that the fair value of the reporting unit's inventory and internally developed intangible assets rendered 100% of the goodwill impaired, consistent with the Company's initial estimates. | ||||||||
The following table summarizes the activity in Goodwill for the fiscal years ended May 31: | ||||||||
2014 | 2013 | |||||||
Gross beginning balance | $ | 178.7 | $ | 178.5 | ||||
Accumulated impairment | (20.8 | ) | (20.8 | ) | ||||
Beginning balance | 157.9 | 157.7 | ||||||
Impairment charge | (13.4 | ) | — | |||||
Foreign currency translation | 0 | 0 | ||||||
Other | — | 0.2 | ||||||
Gross ending balance | 178.7 | 178.7 | ||||||
Accumulated impairment | (34.2 | ) | (20.8 | ) | ||||
Ending balance | $ | 144.5 | $ | 157.9 | ||||
The following table summarizes Other intangibles as of May 31: | ||||||||
2014 | 2013 | |||||||
Beginning balance-Customer lists | $ | 3.4 | $ | 4.3 | ||||
Additions due to acquisition | — | 0.1 | ||||||
Amortization expense | (1.0 | ) | (1.0 | ) | ||||
Foreign currency translation | 0 | 0 | ||||||
Customer lists, net of accumulated amortization of $3.3 and $2.3, respectively | $ | 2.4 | $ | 3.4 | ||||
Beginning balance-Other intangibles | $ | 9.2 | $ | 10.4 | ||||
Additions due to acquisition | — | 0.2 | ||||||
Amortization expense | (1.4 | ) | (1.5 | ) | ||||
Other | (0.2 | ) | 0.1 | |||||
Other intangibles, net of accumulated amortization of $13.4 and $12.0, respectively | $ | 7.6 | $ | 9.2 | ||||
Total other intangibles subject to amortization | $ | 10 | $ | 12.6 | ||||
Trademarks and other | $ | 2.2 | $ | 2 | ||||
Total other intangibles not subject to amortization | $ | 2.2 | $ | 2 | ||||
Total other intangibles | $ | 12.2 | $ | 14.6 | ||||
Amortization expense for Other intangibles totaled $2.4, $2.5 and $6.5 for the fiscal years ended May 31, 2014, 2013 and 2012, respectively. | ||||||||
The following table reflects the estimated amortization expense for intangibles for the next five fiscal years ending May 31: | ||||||||
2015 | $ | 2.3 | ||||||
2016 | 2.2 | |||||||
2017 | 2.2 | |||||||
2018 | 0.5 | |||||||
2019 | 0.4 | |||||||
Intangible assets with definite lives consist principally of customer lists, covenants not to compete and trademarks. Intangible assets with definite lives are amortized over their estimated useful lives. The weighted-average remaining useful lives of all amortizable intangible assets is approximately 7 years. |
Taxes
Taxes | 12 Months Ended | |||||||||||
31-May-14 | ||||||||||||
Income Tax And Non Income Tax Disclosure [Abstract] | ' | |||||||||||
Taxes | ' | |||||||||||
9. TAXES | ||||||||||||
The components of earnings from continuing operations before income taxes for the fiscal years ended May 31 are: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | 43.5 | $ | 34.6 | $ | 145.4 | ||||||
Non-United States | 6.9 | 18.8 | 24.3 | |||||||||
Total | $ | 50.4 | $ | 53.4 | $ | 169.7 | ||||||
The provision for income taxes from continuing operations for the fiscal years ended May 31 consists of the following components: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal | ||||||||||||
Current | $ | 6.5 | $ | 4.5 | $ | 49.1 | ||||||
Deferred | (8.2 | ) | 2.4 | (8.2 | ) | |||||||
$ | (1.7 | ) | $ | 6.9 | $ | 40.9 | ||||||
State and local | ||||||||||||
Current | $ | 6.8 | $ | 0.5 | $ | 12 | ||||||
Deferred | (2.6 | ) | 2.2 | (0.7 | ) | |||||||
$ | 4.2 | $ | 2.7 | $ | 11.3 | |||||||
Non-United States | ||||||||||||
Current | $ | 5.8 | $ | 7.8 | $ | 12.8 | ||||||
Deferred | (2.2 | ) | 0.2 | (3.4 | ) | |||||||
$ | 3.6 | $ | 8 | $ | 9.4 | |||||||
Total | ||||||||||||
Current | $ | 19.1 | $ | 12.8 | $ | 73.9 | ||||||
Deferred | (13.0 | ) | 4.8 | (12.3 | ) | |||||||
$ | 6.1 | $ | 17.6 | $ | 61.6 | |||||||
Effective Tax Rate Reconciliation | ||||||||||||
A reconciliation of the significant differences between the effective income tax rate and the federal statutory rate on earnings from continuing operations before income taxes for the fiscal years ended May 31 is as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Computed federal statutory provision | 35 | % | 35 | % | 35 | % | ||||||
State income tax provision, net of federal income tax benefit | 3.6 | % | 3.3 | % | 4.3 | % | ||||||
Difference in effective tax rates on earnings of foreign subsidiaries | 3.7 | % | 0.3 | % | 0.2 | % | ||||||
Charitable contributions | -1.1 | % | -4.4 | % | -0.7 | % | ||||||
Tax credits | -0.3 | % | -0.4 | % | -0.1 | % | ||||||
Valuation allowances | 0.7 | % | 2.4 | % | -1.4 | % | ||||||
Uncertain Positions | -27.1 | % | — | % | — | % | ||||||
Other - net | -2.4 | % | -3.2 | % | -1 | % | ||||||
Effective tax rates | 12.1 | % | 33 | % | 36.3 | % | ||||||
Total provision for income taxes | $ | 6.1 | $ | 17.6 | $ | 61.6 | ||||||
The tax provision for the fiscal year ended May 31, 2014 was favorably impacted by a settlement with the Internal Revenue Service. During the third quarter of fiscal 2014, the Company reached a settlement with the Internal Revenue Service for fiscal years ended May 31, 2007, 2008 and 2009, and the Company recognized previously unrecognized tax benefits of $13.8, inclusive of interest, as a result of this settlement. | ||||||||||||
Unremitted Earnings | ||||||||||||
At May 31, 2014, the Company had not provided U.S. income taxes on accumulated but undistributed earnings of its non-U.S. subsidiaries of approximately $73.6 to the extent that such earnings are expected to be indefinitely reinvested. In the current fiscal year, the Company provided U.S. deferred income taxes on $2.0 of undistributed earnings. However, if any portion were to be distributed, the related U.S. tax liability may be reduced by foreign income taxes paid on those earnings. Determining the unrecognized deferred tax liability related to those investments in these non-U.S. subsidiaries is not practicable. The Company assesses foreign investment levels periodically to determine if all or a portion of the Company’s investments in foreign subsidiaries are indefinitely invested. | ||||||||||||
Deferred Taxes | ||||||||||||
The significant components for deferred income taxes for the fiscal years ended May 31, including deferred income taxes related to discontinued operations, are as follows: | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets | ||||||||||||
Tax uniform capitalization | $ | 26.6 | $ | 25.8 | ||||||||
Inventory reserves | 29.5 | 29.2 | ||||||||||
Allowance for doubtful accounts | 4.9 | 5.4 | ||||||||||
Other reserves | 26.4 | 26.3 | ||||||||||
Post-retirement, post-employment and pension obligations | 15.5 | 12.6 | ||||||||||
Tax carryforwards | 33.4 | 47.8 | ||||||||||
Lease accounting | (0.3 | ) | 11.7 | |||||||||
Other - net | 20.4 | 32.7 | ||||||||||
Gross deferred tax assets | 156.4 | 191.5 | ||||||||||
Valuation allowance | (30.0 | ) | (31.9 | ) | ||||||||
Total deferred tax assets | $ | 126.4 | $ | 159.6 | ||||||||
Deferred tax liabilities | ||||||||||||
Prepaid expenses | (1.0 | ) | (0.5 | ) | ||||||||
Depreciation and amortization | (40.3 | ) | (65.0 | ) | ||||||||
Total deferred tax liability | $ | (41.3 | ) | $ | (65.5 | ) | ||||||
Total net deferred tax assets | $ | 85.1 | $ | 94.1 | ||||||||
Total net deferred tax assets of $85.1 at May 31, 2014 and $94.1 at May 31, 2013 include $81.0 and $79.2, respectively, in current assets. Total noncurrent deferred tax assets of $4.1 and $14.9 are reflected in noncurrent assets at May 31, 2014 and 2013, respectively. | ||||||||||||
For the year ended May 31, 2014, the valuation allowance decreased by $1.9 and for the year ended May 31, 2013, the valuation allowance decreased by $2.5. The valuation allowance is based on the Company’s assessment that it is more likely than not that certain deferred tax assets will not be realized in the foreseeable future. The valuation allowance at May 31, 2014 primarily relates to foreign operating loss carryforwards of $109.6, principally in the UK, which do not expire. The benefits of uncertain tax positions are recorded in the financial statements only after determining a more likely-than-not probability that the uncertain tax positions will withstand challenge, if any, from taxing authorities, in which case such benefits are included in long-term income taxes payable, reduced by the associated federal deduction for state taxes and non-U.S. tax credits, and may also include other long-term tax liabilities that are not uncertain but have not yet been paid. The interest and penalties related to these uncertain tax positions are recorded as part of the Company’s income tax expense and constitute part of the income tax liability on the Company’s Consolidated Balance Sheets. | ||||||||||||
The total amount of unrecognized tax benefits at May 31, 2014, 2013 and 2012 were $14.4, excluding $1.1 accrued for interest and penalties, $35.5, excluding $6.5 accrued for interest and penalties, and $38.7, excluding $7.1 for accrued interest and penalties, respectively. Of the total amount of unrecognized tax benefits at May 31, 2014, 2013 and 2012, $11.7, $21.8 and $18.1, respectively, would impact the Company’s effective tax rate. | ||||||||||||
During the years presented, the Company recognized interest and penalties related to unrecognized tax benefits in the provision for taxes in the Consolidated Financial Statements. The Company recognized benefits of $5.3 and $0.5 and an expense of $2.4 for the years ended May 31, 2014, 2013 and 2012, respectively. | ||||||||||||
A reconciliation of the unrecognized tax benefits for the fiscal years ended May 31 is as follows: | ||||||||||||
Gross unrecognized benefits at May 31, 2011 | $ | 30.8 | ||||||||||
Decreases related to prior year tax positions | (0.8 | ) | ||||||||||
Increase related to prior year tax positions | 9.5 | |||||||||||
Increases related to current year tax positions | 1.7 | |||||||||||
Settlements during the period | (2.4 | ) | ||||||||||
Lapse of statute of limitation | (0.1 | ) | ||||||||||
Gross unrecognized benefits at May 31, 2012 | $ | 38.7 | ||||||||||
Decreases related to prior year tax positions | (7.2 | ) | ||||||||||
Increase related to prior year tax positions | 3.5 | |||||||||||
Increases related to current year tax positions | 1 | |||||||||||
Settlements during the period | (0.5 | ) | ||||||||||
Lapse of statute of limitation | — | |||||||||||
Gross unrecognized benefits at May 31, 2013 | $ | 35.5 | ||||||||||
Decreases related to prior year tax positions | (20.4 | ) | ||||||||||
Increase related to prior year tax positions | 2.8 | |||||||||||
Increases related to current year tax positions | 2.6 | |||||||||||
Settlements during the period | (1.8 | ) | ||||||||||
Lapse of statute of limitation | (4.3 | ) | ||||||||||
Gross unrecognized benefits at May 31, 2014 | $ | 14.4 | ||||||||||
Unrecognized tax benefits for the Company decreased by $21.1 and $3.2 for the years ended May 31, 2014 and 2013, respectively. Although the timing of the resolution and/or closure on audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next twelve months. However, given the number of years remaining subject to examination and the number of matters being examined, the Company is unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits. | ||||||||||||
The Company, including subsidiaries, files income tax returns in the U.S., various states and various foreign jurisdictions. The Company is routinely audited by various tax authorities. The Company is currently under audit by the Internal Revenue Service for its fiscal years ended May 31, 2011 and 2012. The Company is currently under audit by New York State for its fiscal years ended May 31, 2009, 2010, 2011, and 2012 and New York City for its fiscal years ended May 31, 2008, 2009 and 2010. If any of these tax examinations are concluded within the next twelve months, the Company will make any necessary adjustments to its unrecognized tax benefits. | ||||||||||||
Non-income Taxes | ||||||||||||
The Company is subject to tax examinations for sales-based taxes. A number of these examinations are ongoing and, in certain cases, have resulted in assessments from taxing authorities. Where a sales tax liability in respect to a jurisdiction is probable and can be reliably estimated for such jurisdiction, the Company has made accruals for these matters which are reflected in the Company’s Consolidated Financial Statements. These amounts are included in the Consolidated Financial Statements in Selling, general and administrative expenses. Future developments relating to the foregoing could result in adjustments being made to these accruals. |
Capital_Stock_and_StockBased_A
Capital Stock and Stock-Based Awards | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Capital Stock and Stock-Based Awards | ' | ||||||||||||
10. CAPITAL STOCK AND STOCK-BASED AWARDS | |||||||||||||
Class A Stock and Common Stock | |||||||||||||
Capital stock consisted of the following as of May 31, 2014: | |||||||||||||
Class A Stock | Common Stock | Preferred Stock | |||||||||||
Authorized | 4,000,000 | 70,000,000 | 2,000,000 | ||||||||||
Reserved for Issuance | 1,499,000 | 7,245,021 | — | ||||||||||
Outstanding | 1,656,200 | 30,605,978 | — | ||||||||||
The only voting rights vested in the holders of Common Stock, except as required by law, are the election of such number of directors as shall equal at least one-fifth of the members of the Board. The Class A Stockholders are entitled to elect all other directors and to vote on all other matters. The Class A Stockholders and the holders of Common Stock are entitled to one vote per share on matters on which they are entitled to vote. The Class A Stockholders have the right, at their option, to convert shares of Class A Stock into shares of Common Stock on a share-for-share basis. With the exception of voting rights and conversion rights, and as to any rights of holders of Preferred Stock if issued, the Class A Stock and the Common Stock are equal in rank and are entitled to dividends and distributions, when and if declared by the Board. | |||||||||||||
Preferred Stock | |||||||||||||
The Preferred Stock may be issued in one or more series, with the rights of each series, including voting rights, to be determined by the Board before each issuance. To date, no shares of Preferred Stock have been issued. | |||||||||||||
Stock-based awards | |||||||||||||
At May 31, 2014, the Company maintained three stockholder-approved stock-based compensation plans with regard to the Common Stock: the Scholastic Corporation 1995 Stock Option Plan (the “1995 Plan”), under which no further awards can be made; the Scholastic Corporation 2001 Stock Incentive Plan (the “2001 Plan”), under which no further awards can be made; and the Scholastic Corporation 2011 Stock Incentive Plan (the “2011 Plan”). The 2011 Plan was adopted in July 2011 and provides for the issuance of incentive stock options; options that are not so qualified, called non-qualified stock options; restricted stock; and other stock-based awards. | |||||||||||||
The Company’s stock-based compensation vests over periods not exceeding four years. Provisions in the Company’s stock-based compensation plans allow for the acceleration of vesting for certain retirement-eligible employees, as well as in certain other events. | |||||||||||||
Stock Options – At May 31, 2014, non-qualified stock options to purchase 161,500 shares, 1,135,360 shares and 1,300,640 shares of Common Stock were outstanding under the 1995 Plan, the 2001 Plan and the 2011 Plan, respectively. During fiscal 2014, 753,720 options were granted under the 2011 Plan at a weighted average exercise price of $30.11. | |||||||||||||
At May 31, 2014, 464,873 shares of Common Stock were available for additional awards under the 2011 Plan. | |||||||||||||
The Company also maintains the 1997 Outside Directors Stock Option Plan (the “1997 Directors Plan”), a stockholder-approved stock option plan for outside directors under which no further awards may be made. The 1997 Directors Plan, as amended, provided for the automatic grant to each non-employee director on the date of each annual stockholders’ meeting of non-qualified stock options to purchase 6,000 shares of Common Stock. At May 31, 2014, options to purchase 96,000 shares of Common Stock were outstanding under the 1997 Directors Plan. | |||||||||||||
In September 2007, the Corporation adopted the stockholder-approved Scholastic Corporation 2007 Outside Directors Stock Incentive Plan (the “2007 Directors Plan”). From September 2007 through September 2011, the 2007 Directors Plan provided for the automatic grant to each non-employee director, on the date of each annual meeting of stockholders, of non-qualified stock options to purchase 3,000 shares of Common Stock at a purchase price per share equal to the fair market value of a share of Common Stock on the date of grant and 1,200 restricted stock units. In July 2012, the Board approved an amended and restated 2007 Outside Directors stock incentive Plan (the “Amended 2007 Directors Plan”), which was approved by the stockholders in September 2012. The Amended 2007 Directors Plan provides for the automatic grant to each non-employee director, on the date of each annual meeting of stockholders, of stock options and restricted stock units with a value equal to a fixed dollar amount. Such dollar amount, as well as the split of such amount between stock options and restricted stock units, will be determined annually by the Board (or committee designated by the Board) in advance of the grant date. The value of the stock option portion of the annual grant is determined based on the Black-Scholes option pricing method, with the exercise price being the fair market value of the Common Stock on the grant date, and the value of the restricted stock unit portion is the fair market value of the Common Stock on the grant date. In September 2013, stock options and restricted stock units with a value of $70,000 for each non-employee director, with 40% of such value in the form of options and 60% in the form of restricted stock units, were approved, and an aggregate of 24,714 options at an exercise price of $30.56 per share and 12,366 restricted stock units were granted to the non-employee directors under the amended 2007 Directors Plan. | |||||||||||||
As of May 31, 2014, 162,867 options were outstanding under the Amended 2007 Directors Plan and 274,391 shares of Common Stock remained available for additional awards under the Amended 2007 Directors Plan. | |||||||||||||
The Scholastic Corporation 2004 Class A Stock Incentive Plan (the “Class A Plan”) provided for the grant to Richard Robinson, the Chief Executive Officer of the Corporation as of the effective date of the Class A Plan, of options to purchase Class A Stock (the “Class A Options”). As of May 31, 2014, there were 1,499,000 Class A Options granted to Mr. Robinson outstanding under the Class A Plan, and no shares of Class A Stock remained available for additional awards under the Class A Plan. | |||||||||||||
Generally, options granted under the various plans may not be exercised for a minimum of one year after the date of grant and expire approximately ten years after the date of grant. The intrinsic value of these stock options is deductible by the Company for tax purposes upon exercise. The Company amortizes the fair value of stock options as stock-based compensation expense over the requisite service period on a straight-line basis, or sooner if the employee effectively vests upon termination of employment under certain circumstances. | |||||||||||||
The following table sets forth the intrinsic value of stock options exercised, pretax stock-based compensation cost and related tax benefits for the Class A Stock and Common Stock plans for the fiscal years ended May 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Total intrinsic value of stock options exercised | $ | 4.6 | $ | 2.3 | $ | 5 | |||||||
Stock-based compensation cost (pretax) | $ | 9.3 | $ | 6.3 | $ | 12.2 | |||||||
Tax benefits related to stock-based compensation cost | $ | 1.7 | $ | 0.8 | $ | 1.8 | |||||||
Weighted average grant date fair value per option | $ | 10.37 | $ | 9.77 | $ | 9.3 | |||||||
As of May 31, 2014, the total pretax compensation cost not yet recognized by the Company with regard to outstanding unvested stock options was $3.3. The weighted average period over which this compensation cost is expected to be recognized is 2.3 years. | |||||||||||||
The following table sets forth the stock option activity for the Class A Stock and Common Stock plans for the fiscal year ended May 31, 2014: | |||||||||||||
Options | Weighted | Average Remaining | Aggregate | ||||||||||
Average | Contractual | Intrinsic Value | |||||||||||
Exercise Price | Term (in years) | ||||||||||||
Outstanding at May 31, 2013 | 4,185,480 | $ | 29.49 | ||||||||||
Granted | 778,434 | $ | 30.12 | ||||||||||
Exercised | (506,380 | ) | $ | 23.94 | |||||||||
Expired | (41,000 | ) | $ | 31.43 | |||||||||
Cancellations and forfeitures | (61,167 | ) | $ | 28.82 | |||||||||
Outstanding at May 31, 2014 | 4,355,367 | $ | 30.23 | 4.8 | $ | 12.3 | |||||||
Exercisable at May 31, 2014 | 3,156,844 | $ | 30.7 | 3.3 | $ | 8.8 | |||||||
Restricted Stock Units – In addition to stock options, the Company has issued restricted stock units to certain officers and key executives under the 2011 Plan (“RSUs”). The RSUs automatically convert to shares of Common Stock on a one-for-one basis as the award vests, which is typically over a four-year period beginning thirteen months from the grant date and thereafter annually on the anniversary of the grant date. There were 121,860 shares of Common Stock issued upon vesting of RSUs during fiscal 2014. The Company measures the value of RSUs at fair value based on the number of RSUs granted and the price of the underlying Common Stock on the grant date. The Company amortizes the fair value of outstanding Stock Units as stock-based compensation expense over the requisite service period on a straight-line basis, or sooner if the employee effectively vests upon termination of employment under certain circumstances. | |||||||||||||
The following table sets forth the RSU award activity for the fiscal years ended May 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
RSUs granted | 67,670 | 125,584 | 205,620 | ||||||||||
Weighted average grant date price per unit | $ | 30.34 | $ | 23.05 | $ | 27.92 | |||||||
As of May 31, 2014, the total pretax compensation cost not yet recognized by the Company with regard to unvested RSUs was $2.5. The weighted average period over which this compensation cost is expected to be recognized is 1.9 years. | |||||||||||||
Management Stock Purchase Plan - The Company maintains a Management Stock Purchase Plan (“MSPP”), which allows certain members of senior management to defer up to 100% of their annual cash bonus payments in the form of restricted stock units (“MSPP Stock Units”) which are purchased by the employee at a 25% discount from the lowest closing price of the Common Stock on NASDAQ on any day during the fiscal quarter in which such bonuses are payable. The MSPP Stock Units are converted into shares of Common Stock on a one-for-one basis at the end of the applicable deferral period. The Company measures the value of MSPP Stock Units based on the number of awards granted and the price of the underlying Common Stock on the grant date, giving effect to the 25% discount. The Company amortizes this discount as stock-based compensation expense over the vesting term on a straight-line basis, or sooner if the employee effectively vests upon termination of employment under certain circumstances. | |||||||||||||
The following table sets forth the MSPP Stock Unit activity for the fiscal years ended May 31: | |||||||||||||
2014 | 2013 | ||||||||||||
MSPP Stock Units allocated | 827 | 87,317 | |||||||||||
Purchase price per unit | $ | 21.15 | $ | 19.73 | |||||||||
At May 31, 2014, there were 331,453 shares of Common Stock remaining authorized for issuance under the MSPP. | |||||||||||||
As of May 31, 2014, the total pretax compensation cost not yet recognized by the Company with regard to unvested MSPP Stock Units under the MSPP was $0.1. The weighted average period over which this compensation cost is expected to be recognized is 1.2 years. | |||||||||||||
The following table sets forth the RSU and MSPP Stock Unit activity for the year ended May 31, 2014: | |||||||||||||
Stock Units/RSUs | Weighted | ||||||||||||
Average grant | |||||||||||||
date fair value | |||||||||||||
Nonvested as of May 31, 2013 | 559,403 | $ | 29.98 | ||||||||||
Granted | 68,497 | $ | 30.07 | ||||||||||
Vested | (295,572 | ) | $ | 16.84 | |||||||||
Forfeited | (9,834 | ) | $ | 28.9 | |||||||||
Nonvested as of May 31, 2014 | 322,494 | $ | 21.33 | ||||||||||
The total fair value of shares vested during the fiscal years ended May 31, 2014, 2013 and 2012 was $5.0, $6.4 and $6.0, respectively. | |||||||||||||
Employee Stock Purchase Plan | |||||||||||||
The Company maintains an Employee Stock Purchase Plan (the “ESPP”), which is offered to eligible United States employees. The ESPP permits participating employees to purchase Common Stock, with after-tax payroll deductions, on a quarterly basis at a 15% discount from the closing price of the Common Stock on NASDAQ. In fiscal 2012, the ESPP was amended to provide that the purchase of Common Stock occurs on the last business day of the calendar quarter. The Company recognizes the discount on the Common Stock issued under the ESPP as stock-based compensation expense in the quarter in which the employees participated in the plan. | |||||||||||||
The following table sets forth the ESPP share activity for the fiscal years ended May 31: | |||||||||||||
2014 | 2013 | ||||||||||||
Shares issued | 57,835 | 68,228 | |||||||||||
Weighted average purchase price per share | $ | 26.92 | $ | 24.78 | |||||||||
At May 31, 2014, there were 161,910 shares of Common Stock remaining authorized for issuance under the ESPP. |
Treasury_Stock
Treasury Stock | 12 Months Ended | ||||
31-May-14 | |||||
Stockholders' Equity Attributable to Parent [Abstract] | ' | ||||
Treasury Stock | ' | ||||
TREASURY STOCK | |||||
The Company has authorizations from the Board of Directors to repurchase Common Stock, from time to time as conditions allow, on the open market or through negotiated private transactions, as summarized in the table below: | |||||
Authorization | Amount | ||||
Sep-10 | $44.00 | (a) | |||
Less repurchases | (30.6 | ) | |||
Remaining Board authorization at May 31, 2014 | $ | 13.4 | |||
(a) | Represents the remainder of a $200.0 authorization after giving effect to the purchase of 5,199,699 shares at $30.00 per share pursuant to a large share repurchase in the form of a modified Dutch auction tender offer that was completed by the Company on November 3, 2010 for a total cost of $156.0, excluding related fees and expenses. | ||||
During the twelve months ended May 31, 2014, the Company repurchased approximately 0.2 million shares on the open market for approximately $6.2 at an average cost of $28.65 per share. | |||||
The Company’s repurchase program may be suspended at any time without prior notice. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||||||||||||||
31-May-14 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Employee Benefit Plans | ' | |||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | ||||||||||||||||||||||||
Pension Plans | ||||||||||||||||||||||||
The Company has a cash balance retirement plan (the “Pension Plan”), which covers the majority of United States employees who meet certain eligibility requirements. The Company funds all of the contributions for the Pension Plan. Benefits generally are based on the Company’s contributions and interest credits allocated to participants’ accounts based on years of benefit service and annual pensionable earnings. The Pension Plan is a defined benefit plan. It is the Company’s policy to fund the minimum amount required by the Employee Retirement Income Security Act of 1974, as amended. Effective June 1, 2009, no further benefits will accrue to employees under the Pension Plan. | ||||||||||||||||||||||||
Scholastic Ltd., an indirect subsidiary of Scholastic Corporation located in the United Kingdom, has a defined benefit pension plan (the “UK Pension Plan”) that covers its employees who meet various eligibility requirements. Benefits are based on years of service and on a percentage of compensation near retirement. The UK Pension Plan is funded by contributions from Scholastic Ltd. and its employees. | ||||||||||||||||||||||||
The Company’s pension plans have a measurement date of May 31. | ||||||||||||||||||||||||
Post-Retirement Benefits | ||||||||||||||||||||||||
The Company provides post-retirement benefits to eligible retired United States-based employees (the “Post-Retirement Benefits”) consisting of certain healthcare and life insurance benefits. Employees may become eligible for these benefits after completing certain minimum age and service requirements. Effective June 1, 2009, the Company modified the terms of the Post-Retirement Benefits, effectively excluding a large percentage of employees from the plan. At May 31, 2014, the unrecognized prior service credit remaining was $0.3. | ||||||||||||||||||||||||
The Medicare Prescription Drug, Improvement and Modernization Act (the “Medicare Act”) introduced a prescription drug benefit under Medicare (“Medicare Part D”) as well as a Federal subsidy of 28% to sponsors of retiree health care benefit plans providing a benefit that is at least actuarially equivalent to Medicare Part D. The Company has determined that the Post-Retirement Benefits provided to its retiree population are in aggregate the actuarial equivalent of the benefits under Medicare Part D. As a result, in fiscal 2014, 2013 and 2012, the Company recognized a cumulative reduction of its accumulated post-retirement benefit obligation of $3.1, $3.1 and $2.9, respectively, due to the Federal subsidy under the Medicare Act. | ||||||||||||||||||||||||
The following table sets forth the weighted average actuarial assumptions utilized to determine the benefit obligations for the Pension Plan and the UK Pension Plan (collectively the “Pension Plans”), including the Post-Retirement Benefits, at May 31: | ||||||||||||||||||||||||
Pension Plans | Post-Retirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Weighted average assumptions used to determine benefit obligations: | ||||||||||||||||||||||||
Discount rate | 4.1 | % | 4 | % | 4 | % | 4 | % | 3.9 | % | 3.9 | % | ||||||||||||
Rate of compensation increase | 4.2 | % | 4.4 | % | 3.3 | % | — | — | — | |||||||||||||||
Weighted average assumptions used to determine net periodic benefit cost: | ||||||||||||||||||||||||
Discount rate | 4 | % | 4 | % | 5.1 | % | 3.9 | % | 3.9 | % | 5 | % | ||||||||||||
Expected long-term return on plan assets | 7.5 | % | 7.3 | % | 7.7 | % | — | — | — | |||||||||||||||
Rate of compensation increase | 4.4 | % | 3.3 | % | 4.3 | % | — | — | — | |||||||||||||||
To develop the expected long-term rate of return on assets assumption for the Pension Plans, the Company considers historical returns and future expectations. Considering this information and the potential for lower future returns due to a generally lower interest rate environment, the Company selected an assumed weighted average long-term rate of return of 7.5%. | ||||||||||||||||||||||||
The following table sets forth the change in benefit obligation for the Pension Plans and Post-Retirement Benefits at May 31: | ||||||||||||||||||||||||
Pension Plans | Post-Retirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 185.6 | $ | 182.2 | $ | 36.2 | $ | 39.6 | ||||||||||||||||
Service cost | — | — | 0 | 0 | ||||||||||||||||||||
Interest cost | 7.2 | 6.9 | 1.3 | 1.4 | ||||||||||||||||||||
Plan participants’ contributions | — | — | 0.4 | 0.4 | ||||||||||||||||||||
Actuarial losses (gains) | (2.5 | ) | 7.4 | (1.9 | ) | (2.8 | ) | |||||||||||||||||
Foreign currency translation | 3.7 | (0.8 | ) | — | — | |||||||||||||||||||
Settlement | (6.4 | ) | — | — | — | |||||||||||||||||||
Benefits paid, including expenses | (7.1 | ) | (10.1 | ) | (2.6 | ) | (2.4 | ) | ||||||||||||||||
Benefit obligation at end of year | $ | 180.5 | $ | 185.6 | $ | 33.4 | $ | 36.2 | ||||||||||||||||
The following table sets forth the change in plan assets for the Pension Plans and Post-Retirement Benefits at May 31: | ||||||||||||||||||||||||
Pension Plans | Post-Retirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 173.8 | $ | 145.8 | $ | — | $ | — | ||||||||||||||||
Actual return on plan assets | 21.1 | 29.9 | — | — | ||||||||||||||||||||
Employer contributions | 4.6 | 8.8 | 2.2 | 2 | ||||||||||||||||||||
Settlement | (6.4 | ) | — | — | — | |||||||||||||||||||
Benefits paid, including expenses | (7.1 | ) | (10.1 | ) | (2.6 | ) | (2.4 | ) | ||||||||||||||||
Plan participants’ contributions | — | — | 0.4 | 0.4 | ||||||||||||||||||||
Foreign currency translation | 2.6 | (0.6 | ) | — | — | |||||||||||||||||||
Fair value of plan assets at end of year | $ | 188.6 | $ | 173.8 | $ | — | $ | — | ||||||||||||||||
In fiscal 2014, the Company recorded a pretax charge of $1.7 related to the lump sump settlement of certain US pension obligations. | ||||||||||||||||||||||||
The following table sets forth the net funded status of the Pension Plans and Post-Retirement Benefits and the related amounts | ||||||||||||||||||||||||
recognized on the Company’s Consolidated Balance Sheets at May 31: | ||||||||||||||||||||||||
Pension Plans | Post-Retirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Non-current assets | $ | 19.4 | $ | — | $ | — | $ | — | ||||||||||||||||
Current liabilities | — | — | (2.6 | ) | (2.7 | ) | ||||||||||||||||||
Non-current liabilities | (11.4 | ) | (11.8 | ) | (30.8 | ) | (33.5 | ) | ||||||||||||||||
Net funded balance | $ | 8 | $ | (11.8 | ) | $ | (33.4 | ) | $ | (36.2 | ) | |||||||||||||
The following amounts were recognized in Accumulated other comprehensive loss for the Pension Plans and Post-Retirement Benefits in the Company’s Consolidated Balance Sheets at May 31: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Pension | Post - | Total | Pension | Post - | Total | |||||||||||||||||||
Plans | Retirement | Plans | Retirement | |||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||
Net actuarial gain (loss) | $ | (47.6 | ) | $ | (9.3 | ) | $ | (56.9 | ) | $ | (62.1 | ) | $ | (13.4 | ) | $ | (75.5 | ) | ||||||
Net prior service credit | — | 0.3 | 0.3 | — | 0.5 | 0.5 | ||||||||||||||||||
Net amount recognized in Accumulated other | $ | (47.6 | ) | $ | (9.0 | ) | $ | (56.6 | ) | $ | (62.1 | ) | $ | (12.9 | ) | $ | (75.0 | ) | ||||||
comprehensive income (loss) | ||||||||||||||||||||||||
The estimated net loss for the Pension Plans that will be amortized from Accumulated other comprehensive loss into net periodic benefit cost over the Company’s fiscal year ending May 31, 2015 is $1.4. The estimated net loss and prior service credit for the Post-Retirement Benefits that will be amortized from Accumulated other comprehensive loss into net periodic benefit cost over the fiscal year ending May 31, 2015 are $1.6 and $0.2, respectively. Income tax expense of $5.0 and income tax expense of $8.4 were recognized in Accumulated other comprehensive loss at May 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
The following table sets forth information with respect to the Pension Plans with accumulated benefit obligations in excess of plan assets for the fiscal years ended May 31: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Projected benefit obligations | $ | 180.5 | $ | 185.6 | ||||||||||||||||||||
Accumulated benefit obligations | 179.5 | 184.6 | ||||||||||||||||||||||
Fair value of plan assets | 188.6 | 173.8 | ||||||||||||||||||||||
The following table sets forth the net periodic (benefit) cost for the Pension Plans and Post-Retirement Benefits for the fiscal years ended May 31: | ||||||||||||||||||||||||
Pension Plans | Post - Retirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Components of net periodic (benefit) cost: | ||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
Interest cost | 7.2 | 6.9 | 8.4 | 1.3 | 1.4 | 1.7 | ||||||||||||||||||
Expected return on assets | (12.7 | ) | (10.5 | ) | (10.8 | ) | — | — | — | |||||||||||||||
Net amortization and deferrals | — | — | — | (0.2 | ) | (0.4 | ) | (0.6 | ) | |||||||||||||||
Lump sum settlement charge | 1.7 | — | — | — | — | — | ||||||||||||||||||
Recognized net actuarial loss | 1.8 | 2.2 | 1.4 | 2.2 | 3 | 3.8 | ||||||||||||||||||
Net periodic (benefit) cost | $ | (2.0 | ) | $ | (1.4 | ) | $ | (1.0 | ) | $ | 3.3 | $ | 4 | $ | 4.9 | |||||||||
Plan Assets | ||||||||||||||||||||||||
The Company’s investment policy with regard to the assets in the Pension Plans is to actively manage, within acceptable risk parameters, certain asset classes where the potential exists to outperform the broader market. | ||||||||||||||||||||||||
The following table sets forth the total weighted average asset allocations for the Pension Plans by asset category at May 31: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Equity securities | 33 | % | 69.5 | % | ||||||||||||||||||||
Debt securities | 58.8 | % | 24 | % | ||||||||||||||||||||
Real estate | 1.1 | % | 1 | % | ||||||||||||||||||||
Other | 7.1 | % | 5.5 | % | ||||||||||||||||||||
100 | % | 100 | % | |||||||||||||||||||||
The following table sets forth the targeted weighted average asset allocations for the Pension Plans included in the Company’s investment policy: | ||||||||||||||||||||||||
US | UK | |||||||||||||||||||||||
Pension | Pension | |||||||||||||||||||||||
Plan | Plan | |||||||||||||||||||||||
Equity | 30 | % | 40 | % | ||||||||||||||||||||
Debt and cash equivalents | 70 | % | 30 | % | ||||||||||||||||||||
Real estate and other | 0 | % | 30 | % | ||||||||||||||||||||
100 | % | 100 | % | |||||||||||||||||||||
The fair values of the Company’s Pension Plans’ assets are measured using Level 1, Level 2 and Level 3 fair value measurements. For a more complete description of fair value measurements see Note 18, “Fair Value Measurements.” | ||||||||||||||||||||||||
The following table sets forth the measurement of the Company’s Pension Plans’ assets at fair value by asset category at the respective dates: | ||||||||||||||||||||||||
Assets at Fair Value as of May 31, 2014 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | 7.1 | $ | — | $ | — | $ | 7.1 | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S. (1) | 39.8 | 101.3 | — | 141.1 | ||||||||||||||||||||
International (2) | 10.3 | 12.1 | — | 22.4 | ||||||||||||||||||||
Fixed Income (3) | — | 9.7 | — | 9.7 | ||||||||||||||||||||
Annuities | — | — | 6.2 | 6.2 | ||||||||||||||||||||
Real estate (4) | — | 2.1 | — | 2.1 | ||||||||||||||||||||
Total | $ | 57.2 | $ | 125.2 | $ | 6.2 | $ | 188.6 | ||||||||||||||||
Assets at Fair Value as of May 31, 2013 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | 3.5 | $ | — | $ | — | $ | 3.5 | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S. (1) | 94 | — | — | 94 | ||||||||||||||||||||
International (2) | 16.3 | 10.4 | — | 26.7 | ||||||||||||||||||||
Fixed Income (3) | 34.4 | 7.4 | — | 41.8 | ||||||||||||||||||||
Annuities | — | — | 6.1 | 6.1 | ||||||||||||||||||||
Real estate (4) | — | 1.7 | — | 1.7 | ||||||||||||||||||||
Total | $ | 148.2 | $ | 19.5 | $ | 6.1 | $ | 173.8 | ||||||||||||||||
-1 | Funds which invest in a diversified portfolio of publicly traded U.S. common stocks of large-cap, medium-cap and small-cap companies. There are no restrictions on these investments. | |||||||||||||||||||||||
-2 | Funds which invest in a diversified portfolio of publicly traded common stock of non-U.S. companies, primarily in Europe and Asia. There are no restrictions on these investments. | |||||||||||||||||||||||
-3 | Funds which invest in a diversified portfolio of publicly traded government bonds, corporate bonds and mortgage-backed securities. There are no restrictions on these investments. | |||||||||||||||||||||||
-4 | Represents assets of a non-U.S. entity plan invested in a fund whose underlying investments are comprised of properties. The fund has publicly available quoted market prices and there are no restrictions on these investments. | |||||||||||||||||||||||
The Company has purchased annuities to service fixed payments to certain retired plan participants in the UK. These annuities are purchased from investment grade counterparties. These annuities are not traded on open markets, and are therefore valued based upon the actuarial determined valuation, and related assumptions, of the underlying projected benefit obligation, a Level 3 valuation technique. The fair value of these assets was $6.2 and $6.1 at May 31, 2014 and May 31, 2013, respectively. | ||||||||||||||||||||||||
The following table summarizes the changes in fair value of these Level 3 assets for the fiscal years ended May 31, 2014 and 2013: | ||||||||||||||||||||||||
Balance at May 31, 2012 | $ | 5.8 | ||||||||||||||||||||||
Actual Return on Plan Assets: | ||||||||||||||||||||||||
Relating to assets still held at May 31, 2013 | 0.7 | |||||||||||||||||||||||
Relating to assets sold during the year | — | |||||||||||||||||||||||
Purchases, sales and settlements, net | (0.3 | ) | ||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||||||||||||
Foreign currency translation | (0.1 | ) | ||||||||||||||||||||||
Balance at May 31, 2013 | $ | 6.1 | ||||||||||||||||||||||
Actual Return on Plan Assets: | ||||||||||||||||||||||||
Relating to assets still held at May 31, 2014 | (0.1 | ) | ||||||||||||||||||||||
Relating to assets sold during the year | — | |||||||||||||||||||||||
Purchases, sales and settlements, net | (0.3 | ) | ||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||||||||||||
Foreign currency translation | 0.5 | |||||||||||||||||||||||
Balance at May 31, 2014 | $ | 6.2 | ||||||||||||||||||||||
Contributions | ||||||||||||||||||||||||
In fiscal 2015, the Company expects to contribute $1.4 to the Pension Plans. | ||||||||||||||||||||||||
Estimated future benefit payments | ||||||||||||||||||||||||
The following table sets forth the expected future benefit payments under the Pension Plans and the Post-Retirement Benefits by fiscal year: | ||||||||||||||||||||||||
Post - Retirement | ||||||||||||||||||||||||
Pension | Benefit | Medicare | ||||||||||||||||||||||
Benefits | Payments | Subsidy | ||||||||||||||||||||||
Receipts | ||||||||||||||||||||||||
2015 | $ | 15.5 | $ | 2.9 | $ | 0.3 | ||||||||||||||||||
2016 | 11.8 | 2.8 | 0.3 | |||||||||||||||||||||
2017 | 11.1 | 2.8 | 0.3 | |||||||||||||||||||||
2018 | 10.8 | 2.7 | 0.3 | |||||||||||||||||||||
2019 | 11 | 2.6 | 0.3 | |||||||||||||||||||||
2020-2024 | 50.7 | 12.5 | 1.6 | |||||||||||||||||||||
Assumed health care cost trend rates at May 31: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Health care cost trend rate assumed for the next fiscal year | 7 | % | 7.5 | % | ||||||||||||||||||||
Rate to which the cost trend is assumed to decline (the ultimate trend rate) | 5 | % | 5 | % | ||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2021 | 2021 | ||||||||||||||||||||||
Assumed health care cost trend rates could have a significant effect on the amounts reported for the post-retirement health care plan. A one percentage point change in assumed health care cost trend rates would have the following effects: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Total service and interest cost - 1% increase | $ | 0.1 | $ | 0.2 | ||||||||||||||||||||
Total service and interest cost - 1% decrease | (0.1 | ) | (0.1 | ) | ||||||||||||||||||||
Post-retirement benefit obligation - 1% increase | 3.6 | 4 | ||||||||||||||||||||||
Post-retirement benefit obligation - 1% decrease | (3.1 | ) | (3.4 | ) | ||||||||||||||||||||
Defined contribution plans | ||||||||||||||||||||||||
The Company also provides defined contribution plans for certain eligible employees. In the United States, the Company sponsors a 401(k) retirement plan and has contributed $7.5, $8.0 and $7.4 for fiscal 2014, 2013 and 2012, respectively. |
Accrued_Severance
Accrued Severance | 12 Months Ended | |||||||
31-May-14 | ||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||
Accrued Severance | ' | |||||||
ACCRUED SEVERANCE | ||||||||
The table below provides information regarding Accrued severance, which is included in “Other accrued expenses” on the Company’s Consolidated Balance Sheets. | ||||||||
2014 | 2013 | |||||||
Beginning balance | $ | 3.3 | $ | 2.7 | ||||
Accruals | 11.3 | 13.4 | ||||||
Payments | (13.4 | ) | (12.8 | ) | ||||
Ending balance | $ | 1.2 | $ | 3.3 | ||||
The Company implemented cost saving initiatives in fiscal 2014, recognizing severance expense of $10.8. The Company also implemented cost saving initiatives in fiscal 2013, recognizing severance expense of $9.6. |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 12 Months Ended | |||||||||||
31-May-14 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings (Loss) Per Share | ' | |||||||||||
EARNINGS (LOSS) PER SHARE | ||||||||||||
The following table summarizes the reconciliation of the numerators and denominators for the Basic and Diluted earnings (loss) per share computation for the fiscal years ended May 31: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Earnings (loss) from continuing operations attributable to Class A and | $ | 44.2 | $ | 35.7 | $ | 107.6 | ||||||
Common Shares | ||||||||||||
Earnings (loss) from discontinued operations attributable to Class A and | 0.1 | (4.7 | ) | (5.7 | ) | |||||||
Common Shares, net of tax | ||||||||||||
Net income (loss) attributable to Class A and Common Shares | 44.3 | 31 | 101.9 | |||||||||
Weighted average Shares of Class A Stock and Common Stock | 32 | 31.8 | 31.2 | |||||||||
outstanding for basic earnings (loss) per share (in millions) | ||||||||||||
Dilutive effect of Class A Stock and Common Stock potentially issuable | 0.5 | 0.6 | 0.5 | |||||||||
pursuant to stock-based compensation plans (in millions) | ||||||||||||
Adjusted weighted average Shares of Class A Stock and Common Stock | 32.5 | 32.4 | 31.7 | |||||||||
outstanding for diluted earnings (loss) per share (in millions) | ||||||||||||
Earnings (loss) per share of Class A Stock and Common Stock | ||||||||||||
Basic earnings (loss) per share: | ||||||||||||
Earnings (loss) from continuing operations | $ | 1.38 | $ | 1.12 | $ | 3.45 | ||||||
Earnings (loss) from discontinued operations, net of tax | $ | 0.01 | $ | (0.15 | ) | $ | (0.18 | ) | ||||
Net income (loss) | $ | 1.39 | $ | 0.97 | $ | 3.27 | ||||||
Diluted earnings (loss) per share: | ||||||||||||
Earnings (loss) from continuing operations | $ | 1.36 | $ | 1.1 | $ | 3.39 | ||||||
Earnings (loss) from discontinued operations, net of tax | $ | 0 | $ | (0.15 | ) | $ | (0.18 | ) | ||||
Net income (loss) | $ | 1.36 | $ | 0.95 | $ | 3.21 | ||||||
Earnings from continuing operations exclude earnings of $0.1, $0.1 and $0.5 for the years ended May 31, 2014, 2013 and 2012, respectively, for earnings attributable to participating RSUs. | ||||||||||||
In a period in which the Company reports a discontinued operation, Earnings (loss) from continuing operations is used as the “control number” in determining whether potentially dilutive common shares are dilutive or anti-dilutive. Potentially dilutive shares outstanding pursuant to compensation plans that were not included in the diluted earnings per share calculation because they were anti-dilutive were 1.3 million as of May 31, 2014. | ||||||||||||
A portion of the Company’s RSUs granted to employees participates in earnings through cumulative non-forfeitable dividends payable to the employees upon vesting of the RSUs. Accordingly, the Company measures earnings per share based upon | ||||||||||||
the lower of the Two-class method or the Treasury Stock method. | ||||||||||||
Options outstanding pursuant to compensation plans were 4.4 million and 4.2 million as of May 31, 2014 and 2013, respectively. | ||||||||||||
As of May 31, 2014, $13.4 remains available for future purchases of common shares under the current repurchase authorization of the Board of Directors. | ||||||||||||
See Note 11, “Treasury Stock,” for a more complete description of the Company’s share buy-back program. |
Other_Accrued_Expenses
Other Accrued Expenses | 12 Months Ended | |||||||
31-May-14 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Other Accrued Expenses | ' | |||||||
OTHER ACCRUED EXPENSES | ||||||||
Other accrued expenses consist of the following at May 31: | ||||||||
2014 | 2013 | |||||||
Accrued payroll, payroll taxes and benefits | $ | 41.7 | $ | 45.8 | ||||
Accrued bonus and commissions | 36.9 | 22 | ||||||
Accrued other taxes | 27.5 | 29.3 | ||||||
Accrued advertising and promotions | 35.6 | 38.2 | ||||||
Accrued income taxes | 4.7 | 5.5 | ||||||
Accrued insurance | 8.3 | 8.7 | ||||||
Other accrued expenses | 30 | 30 | ||||||
Total accrued expenses | $ | 184.7 | $ | 179.5 | ||||
Other_Financial_Data
Other Financial Data | 12 Months Ended | |||||||||||
31-May-14 | ||||||||||||
Other Financial Data Disclosure [Abstract] | ' | |||||||||||
Other Financial Data | ' | |||||||||||
OTHER FINANCIAL DATA | ||||||||||||
Other financial data consisted of the following for the fiscal years ended May 31: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Advertising expense | $ | 133.1 | $ | 146.4 | $ | 145 | ||||||
Prepublication and production costs | 147.6 | 149 | 127.3 | |||||||||
Amortization of prepublication and production costs | 60.4 | 48.9 | 55.1 | |||||||||
Foreign currency transaction gain (loss) | (1.0 | ) | (0.5 | ) | 0.7 | |||||||
Purchases related to contractual commitments for minimum print quantities | 62.8 | 54.8 | 61.1 | |||||||||
2014 | 2013 | |||||||||||
Unredeemed credits issued in conjunction with the Company’s school-based book club | $ | 10.4 | $ | 9.5 | ||||||||
and book fair operations (included in other accrued expenses) | ||||||||||||
2014 | 2013 | |||||||||||
Components of Accumulated other comprehensive income (loss): | ||||||||||||
Foreign Currency Translation | (16.6 | ) | (13.5 | ) | ||||||||
Pension Obligations (net of tax of $18.1 and $23.1) | (38.6 | ) | (51.9 | ) | ||||||||
Accumulated other comprehensive income (loss) | $ | (55.2 | ) | $ | (65.4 | ) |
Derivatives_and_Hedging
Derivatives and Hedging | 12 Months Ended |
31-May-14 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Derivatives and Hedging | ' |
DERIVATIVES AND HEDGING | |
The Company enters into foreign currency derivative contracts to economically hedge the exposure to foreign currency fluctuations associated with the forecasted purchase of inventory and the foreign exchange risk associated with certain receivables denominated in foreign currencies. These derivative contracts are economic hedges and are not designated as cash flow hedges. The Company marks-to-market these instruments and records the changes in the fair value of these items in current earnings, and it recognizes the unrealized gain or loss in other current assets or liabilities. Unrealized losses of $0.3 and unrealized gains of $0.5 were recognized at May 31, 2014 and at May 31, 2013, respectively. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||||||||
31-May-14 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||||||||||
The Company determines the appropriate level in the fair value hierarchy for each fair value measurement of assets and liabilities carried at fair value on a recurring basis in the Company’s financial statements. The fair value hierarchy prioritizes the inputs, which refer to assumptions that market participants would use in pricing an asset or liability, based upon the highest and best use, into three levels as follows: | ||||||||||||||||||||||||
• | Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. | |||||||||||||||||||||||
• | Level 2 Observable inputs other than unadjusted quoted prices in active markets for identical assets or liabilities such as | |||||||||||||||||||||||
◦ | Quoted prices for similar assets or liabilities in active markets | |||||||||||||||||||||||
◦ | Quoted prices for identical or similar assets or liabilities in inactive markets | |||||||||||||||||||||||
◦ | Inputs other than quoted prices that are observable for the asset or liability | |||||||||||||||||||||||
◦ | Inputs that are derived principally from or corroborated by observable market data by correlation or other means | |||||||||||||||||||||||
• | Level 3 Unobservable inputs in which there is little or no market data available, which are significant to the fair value measurement and require the Company to develop its own assumptions. | |||||||||||||||||||||||
The Company’s financial assets and liabilities measured at fair value consisted of cash and cash equivalents, debt and foreign currency forward contracts. Cash and cash equivalents are comprised of bank deposits and short-term investments, such as money market funds, the fair value of which is based on quoted market prices, a Level 1 fair value measure. The Company employs Level 2 fair value measurements for the disclosure of the fair value of its 5% Notes and its various lines of credit. For a more complete description of fair value measurements employed, see Note 5, “Debt.” The fair values of foreign currency forward contracts, used by the Company to manage the impact of foreign exchange rate changes to the financial statements, are based on quotations from financial institutions, a Level 2 fair value measure. | ||||||||||||||||||||||||
Non-financial assets and liabilities for which the Company employs fair value measures on a non-recurring basis include: | ||||||||||||||||||||||||
• | Long-lived assets | |||||||||||||||||||||||
• | Investments | |||||||||||||||||||||||
• | Assets acquired in a business combination | |||||||||||||||||||||||
• | Goodwill and indefinite-lived intangible assets | |||||||||||||||||||||||
• | Long-lived assets held for sale | |||||||||||||||||||||||
Level 2 and Level 3 inputs are employed by the Company in the fair value measurement of these assets and liabilities. The following tables present non-financial assets that were measured and recorded at fair value on a non-recurring basis and the total impairment losses and additions recognized on those assets: | ||||||||||||||||||||||||
Net carrying | Fair value measured and recorded using | Impairment losses | ||||||||||||||||||||||
value as of | for fiscal year ended | |||||||||||||||||||||||
31-May-14 | Level 1 | Level 2 | Level 3 | May 31, 2014 | Additions due to acquisitions | |||||||||||||||||||
Investments | $ | — | $ | — | $ | — | $ | — | $ | 5.8 | $ | 1 | ||||||||||||
Property, plant and equipment, net | — | — | — | — | 7.6 | — | ||||||||||||||||||
Goodwill | — | — | — | — | 13.4 | — | ||||||||||||||||||
Prepublication assets | — | — | — | — | 5.7 | — | ||||||||||||||||||
Net carrying | Fair value measured and recorded using | Impairment losses | ||||||||||||||||||||||
value as of | for fiscal year ended | |||||||||||||||||||||||
31-May-13 | Level 1 | Level 2 | Level 3 | May 31, 2013 | Additions due to acquisitions | |||||||||||||||||||
Other intangible assets | $ | 0.3 | $ | — | $ | — | $ | 0.3 | $ | — | $ | 0.3 | ||||||||||||
Property, plant and equipment, net | — | — | — | — | 5.2 | — | ||||||||||||||||||
Prepublication assets | — | — | — | — | 2 | — | ||||||||||||||||||
Net carrying | Fair value measured and | Impairment losses | ||||||||||||||||||||||
value as of | recorded using | for fiscal year ended | ||||||||||||||||||||||
31-May-12 | Level 1 | Level 2 | Level 3 | May 31, 2012 | Additions due to acquisitions | |||||||||||||||||||
Goodwill | $ | 2.7 | $ | — | $ | — | $ | 2.7 | $ | — | $ | 2.7 | ||||||||||||
Other intangible assets impairment | 4.9 | — | — | 4.9 | 6.8 | — | ||||||||||||||||||
Other intangibles | 5.4 | — | — | 5.4 | — | 5.4 | ||||||||||||||||||
Production assets | 0.6 | — | — | 0.6 | 4 | — | ||||||||||||||||||
Prepublication assets | — | — | — | — | 0.8 | — | ||||||||||||||||||
Investments | — | — | — | — | 1.3 | — | ||||||||||||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
31-May-14 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
SUBSEQUENT EVENTS | |
On July 23, 2014, the Board of Directors declared a regular cash dividend of $0.150 per Class A and Common share in respect of the first quarter of fiscal 2015. The dividend is payable on September15, 2014 to shareholders of record on August 29, 2014. |
Schedule_II_Valuation_and_Qual
Schedule II Valuation and Qualifying Accounts and Reserves | 12 Months Ended | ||||||||||||||||
31-May-14 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||||||||||
Schedule II Valuation and Qualifying Accounts and Reserves | ' | ||||||||||||||||
Schedule II | |||||||||||||||||
Valuation and Qualifying Accounts and Reserves | |||||||||||||||||
(Amounts in millions) | |||||||||||||||||
Years ended May 31, | |||||||||||||||||
Balance at Beginning | Expensed | Write-Offs and Other | Balance at End of Year | ||||||||||||||
of Year | |||||||||||||||||
2014 | |||||||||||||||||
Allowance for doubtful accounts | $ | 19.3 | $ | 8.2 | $ | 10.2 | $ | 17.3 | |||||||||
Reserve for returns | 26.4 | 58 | 57 | (1) | 27.4 | ||||||||||||
Reserves for obsolescence | 90.3 | 25.1 | 28.3 | 87.1 | |||||||||||||
Reserve for royalty advances | 81.5 | 6.5 | 1 | 87 | |||||||||||||
2013 | |||||||||||||||||
Allowance for doubtful accounts | $ | 25.9 | $ | 6.8 | $ | 13.4 | $ | 19.3 | |||||||||
Reserve for returns | 57.5 | 50.2 | 81.3 | (1) | 26.4 | ||||||||||||
Reserves for obsolescence | 90.8 | 27.2 | 27.7 | 90.3 | |||||||||||||
Reserve for royalty advances | 77.8 | 4.7 | 1 | 81.5 | |||||||||||||
2012 | |||||||||||||||||
Allowance for doubtful accounts | $ | 22.3 | $ | 12.3 | $ | 8.7 | $ | 25.9 | |||||||||
Reserve for returns | 33 | 81.8 | 57.3 | (1) | 57.5 | ||||||||||||
Reserves for obsolescence | 82.2 | 48.1 | 39.5 | 90.8 | |||||||||||||
Reserve for royalty advances | 71.8 | 6.5 | 0.5 | 77.8 | |||||||||||||
-1 | Represents actual returns charged to the reserve |
Description_of_the_Business_Ba1
Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||
31-May-14 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||
Principles of consolidation | ' | |||||||||||
Principles of consolidation | ||||||||||||
The Consolidated Financial Statements include the accounts of the Corporation and all wholly-owned and majority-owned subsidiaries. All significant intercompany transactions are eliminated in consolidation. | ||||||||||||
Discontinued Operations | ' | |||||||||||
Discontinued Operations | ||||||||||||
The Company closed or sold several operations during fiscal 2010, 2012 and 2013. During the first quarter of fiscal 2012, the Company ceased operations in its direct-to-home catalog business specializing in toys. In the fourth quarter of fiscal 2013, the Company sold a facility that was previously classified as held for sale and also discontinued a computer club business which was previously included in the Children’s Book Publishing and Distribution segment and a subscription-based business which was previously reported in the Media, Licensing and Advertising segment. All of these businesses are classified as discontinued operations in the Company’s financial statements for all periods presented. | ||||||||||||
Use of estimates | ' | |||||||||||
Use of estimates | ||||||||||||
The Company’s Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements involves the use of estimates and assumptions by management, which affects the amounts reported in the Consolidated Financial Statements and accompanying notes. The Company bases its estimates on historical experience, current business factors, and various other assumptions believed to be reasonable under the circumstances, all of which are necessary in order to form a basis for determining the carrying values of assets and liabilities. Actual results may differ from those estimates and assumptions. | ||||||||||||
The Company’s significant estimates include those developed for: | ||||||||||||
• | Accounts receivable, returns and allowances | |||||||||||
• | Pension and post-retirement obligations | |||||||||||
• | Uncertain tax positions | |||||||||||
• | Inventory reserves | |||||||||||
• | Gross profits for book fair operations during interim periods | |||||||||||
• | Sales taxes | |||||||||||
• | Royalty advance reserves | |||||||||||
• | Customer reward programs | |||||||||||
• | Impairment testing for goodwill for assessment and measurement, intangibles and other long-lived | |||||||||||
assets and investments | ||||||||||||
Revenue recognition | ' | |||||||||||
Revenue recognition | ||||||||||||
The Company’s revenue recognition policies for its principal businesses are as follows: | ||||||||||||
School-Based Book Clubs – Revenue from school-based book clubs is recognized upon shipment of the products. For ebooks, revenue is recognized upon electronic delivery to the customer. | ||||||||||||
School-Based Book Fairs – Revenues associated with school-based book fairs are related to sales of product. Book fairs are typically run by schools and/or parent teacher organizations over a five business-day period. The amount of revenue recognized for each fair represents the net amount of cash collected at the fair. Revenue is fully recognized at the completion of the fair. At the end of reporting periods, the Company defers estimated revenue for those fairs that have not been completed as of the period end based on the number of fair days occurring after period end on a straight-line calculation of the full fair’s revenue. | ||||||||||||
Trade –Revenue from the sale of children’s books for distribution in the retail channel is primarily recognized when risks and benefits transfer to the customer, or when the product is on sale and available to the public. For newly published titles, the Company, on occasion, contractually agrees with its customers when the publication may be first offered for sale to the public, or an agreed upon “Strict Laydown Date.” For such titles, the risks and benefits of the publication are not deemed to be transferred to the customer until such time that the publication can contractually be sold to the public, and the Company defers revenue on sales of such titles until such time as the customer is permitted to sell the product to the public. Revenue for ebooks, which is the net amount received from the retailer, is recognized upon electronic delivery to the customer by the retailer. | ||||||||||||
A reserve for estimated returns is established at the time of sale and recorded as a reduction to revenue. Actual returns are charged to the reserve as received. The calculation of the reserve for estimated returns is based on historical return rates, sales patterns, type of product and expectations. Actual returns could differ from the Company’s estimate. A reserve for estimated bad debts is established at the time of sale and is based on the aging of accounts receivable and specific reserves on a customer-by-customer basis, where applicable. | ||||||||||||
Educational Technology and Services – For shipments to schools, revenue is recognized when risks and benefits transfer to the customer. Shipments to depositories are on consignment and revenue is recognized based on actual shipments from the depositories to the schools. For certain software-based products, the Company offers new customers installation, maintenance and training with these products and, in such cases, revenue is deferred and recognized as services are delivered or over the life of the contract. Revenues from contracts with multiple deliverables are recognized as each deliverable is earned, based on the relative selling price of each deliverable, provided the deliverable has value to customers on a standalone basis, the customer has full use of the deliverable and there is no further obligation from the Company. If there is a right of return, revenue is recognized if delivery of the undelivered items or services is probable and substantially in control of the Company. | ||||||||||||
Classroom and Supplemental Materials Publishing – Revenue from the sale of classroom and supplemental materials is recognized upon shipment of the products. | ||||||||||||
Film Production and Licensing – Revenue from the sale of film rights, principally for the home video and domestic and foreign television markets, is recognized when the film has been delivered and is available for showing or exploitation. Licensing revenue is recorded in accordance with royalty agreements at the time the licensed materials are available to the licensee and collections are reasonably assured. | ||||||||||||
Magazines – Revenue is deferred and recognized ratably over the subscription period, as the magazines are delivered. | ||||||||||||
Magazine Advertising – Revenue is recognized when the magazine is for sale and available to the subscribers. | ||||||||||||
Scholastic In-School Marketing – Revenue is recognized when the Company has satisfied its obligations under the program and the customer has acknowledged acceptance of the product or service. Certain revenues may be deferred pending future deliverables. | ||||||||||||
Cash equivalents | ' | |||||||||||
Cash equivalents | ||||||||||||
Cash equivalents consist of short-term investments with original maturities of three months or less. The Consolidated Balance Sheets include restricted cash of $0.3 at May 31, 2014 and $1.0 at May 31, 2013, which is reported in “Other current assets.” | ||||||||||||
Accounts receivable | ' | |||||||||||
Accounts receivable | ||||||||||||
Accounts receivable are recorded net of allowances for doubtful accounts and reserves for returns. In the normal course of business, the Company extends credit to customers that satisfy predefined credit criteria. The Company is required to estimate the collectability of its receivables. Reserves for returns are based on historical return rates and sales patterns. In order to develop the estimate of returns that will be received subsequent to fiscal year end, management considers patterns of sales and returns in the months preceding the fiscal year end, as well as actual returns received subsequent to year end, available sell-through information and other return rate information that management believes is relevant. Allowances for doubtful accounts are established through the evaluation of accounts receivable aging and prior collection experience to estimate the ultimate collectability of these receivables. At the time the Company determines that a receivable balance, or any portion thereof, is deemed to be permanently uncollectible, the balance is then written off. | ||||||||||||
Inventories | ' | |||||||||||
Inventories | ||||||||||||
Inventories, consisting principally of books, are stated at the lower of cost, using the first-in, first-out method, or market. The Company records a reserve for excess and obsolete inventory based upon a calculation using the historical usage rates, sales patterns of its products and specifically identified obsolete inventory. | ||||||||||||
Property, plant and equipment | ' | |||||||||||
Property, plant and equipment | ||||||||||||
Property, plant and equipment are stated at cost. Depreciation and amortization are recorded on a straight-line basis, over the estimated useful lives of the assets. Buildings have an estimated useful life, for purposes of depreciation, of forty years. Capitalized software, net of accumulated amortization, was $33.4 and $50.7 at May 31, 2014 and 2013, respectively. Capitalized software is depreciated over a period of three to seven years. Amortization expense for capitalized software was $28.8, $31.2 and $27.6 for the fiscal years ended May 31, 2014, 2013 and 2012, respectively. Furniture, fixtures and equipment are depreciated over periods not exceeding ten years. Leasehold improvements are amortized over the life of the lease or the life of the assets, whichever is shorter. The Company evaluates the depreciation periods of property, plant and equipment to determine whether events or circumstances indicate that the asset’s carrying value is not recoverable or warrant revised estimates of useful lives. In fiscal 2014, the Company recognized an impairment charge of $7.6 for assets related to Storia operating system-specific apps that will no longer be supported due to the planned transition to a Storia streaming model. | ||||||||||||
The Company acquired its headquarters space (including land, building, fixtures and related personal property and leases) at 555 Broadway, New York, NY (the "Property") from its landlord, ISE 555 Broadway, LLC ("Landlord") under a Purchase and Sale Agreement (the "Purchase Agreement") on February 28, 2014. The acquisition price under the Purchase Agreement was consideration of $255.7 (net $253.9 in cash), including closing costs. Prior to the acquisition, the Property was recorded by the Company as a capital lease. The Company recorded the difference between the purchase price and the carrying amount of the capital lease obligation as an adjustment to the carrying amount of the asset. | ||||||||||||
Leases | ' | |||||||||||
Leases | ||||||||||||
Lease agreements are evaluated to determine whether they are capital or operating leases. When substantially all of the risks and benefits of property ownership have been transferred to the Company, as determined by the test criteria in the current authoritative guidance, the lease is recognized as a capital lease. | ||||||||||||
Capital leases are capitalized at the lower of the net present value of the total amount of rent payable under the leasing agreement (excluding finance charges) or the fair market value of the leased asset. Capital lease assets are depreciated on a straight-line basis, over a period consistent with the Company’s normal depreciation policy for tangible fixed assets, but not exceeding the lease term. Interest charges are expensed over the period of the lease in relation to the carrying value of the capital lease obligation. | ||||||||||||
Rent expense for operating leases, which may include free rent or fixed escalation amounts in addition to minimum lease payments, is recognized on a straight-line basis over the duration of each lease term. Sublease income is recognized on a straight-line basis over the duration of each lease term. To the extent expected sublease income is less than expected rental payments the Company recognizes a current loss on the difference between the fair values of the sublease and the rental payments. | ||||||||||||
Prepublication costs | ' | |||||||||||
Prepublication costs | ||||||||||||
Prepublication costs are incurred in all of the Company’s reportable segments. Prepublication costs include costs incurred to create and develop the art, prepress, editorial, digital conversion and other content required for the creation of the master copy of a book or other media. While prepublication costs in the Children’s Book Publishing and Distribution segment are relatively modest amounts for each individual title, there are a large number of separate titles published annually. Prepublication costs in the Educational Technology and Services segment are often in excess of $1 for an individual program, as the development of intellectual property or content for complex intervention and educational programs requires significant resources and investment. | ||||||||||||
Prepublication costs are amortized on a straight-line basis over a three-to-seven-year period based on expected future revenues. The Company regularly reviews the recoverability of the capitalized costs based on expected future revenues. | ||||||||||||
Royalty advances | ' | |||||||||||
Royalty advances | ||||||||||||
Royalty advances are incurred in all of the Company’s reportable segments, but are most prevalent in the Children’s Book Publishing and Distribution segment and enable the Company to obtain contractual commitments from authors to produce content. The Company regularly provides authors with advances against expected future royalty payments, often before the books are written. Upon publication and sale of the books or other media, the authors generally will not receive further royalty payments until the contractual royalties earned from sales of such books or other media exceed such advances. | ||||||||||||
Royalty advances are initially capitalized and subsequently expensed as related revenues are earned or when the Company determines future recovery through earndowns is not probable. The Company has a long history of providing authors with royalty advances, and it tracks each advance earned with respect to the sale of the related publication. The royalties earned are applied first against the remaining unearned portion of the advance. Historically, the longer the unearned portion of the advance remains outstanding, the less likely it is that the Company will recover the advance through the sale of the publication. The Company applies this historical experience to its existing outstanding royalty advances to estimate the likelihood of recoveries through earndowns. Additionally, the Company’s editorial staff regularly reviews its portfolio of royalty advances to determine if individual royalty advances are not recoverable through earndowns for discrete reasons, such as the death of an author prior to completion of a title or titles, a Company decision to not publish a title, poor market demand or other relevant factors that could impact recoverability. | ||||||||||||
Goodwill and intangible assets | ' | |||||||||||
Goodwill and intangible assets | ||||||||||||
Goodwill and other intangible assets with indefinite lives are not amortized and are reviewed for impairment annually or more frequently if impairment indicators arise. | ||||||||||||
With regard to goodwill, the Company compares the estimated fair values of its identified reporting units to the carrying values of their net assets. The Company first performs a qualitative assessment to determine whether it is more likely than not that the fair values of its identified reporting units are less than their carrying value. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount the Company performs the two-step test. For each of the reporting units, the estimated fair value is determined utilizing the expected present value of the projected future cash flows of the units, in addition to comparisons to similar companies. The Company reviews its definition of reporting units annually or more frequently if conditions indicate that the reporting units may change. The Company evaluates its operating segments to determine if there are components one level below the operating segment. A component is present if discrete financial information is available, and segment management regularly reviews the operating results of the business. If an operating segment only contains a single component, that component is determined to be a reporting unit for goodwill impairment testing purposes. If an operating segment contains multiple components, the Company evaluates the economic characteristics of these components. Any components within an operating segment that share similar economic characteristics are aggregated and deemed to be a reporting unit for goodwill impairment testing purposes. Components within the same operating segment that do not share similar economic characteristics are deemed to be individual reporting units for goodwill impairment testing purposes. The Company has identified twelve separate reporting units for goodwill impairment testing purposes. | ||||||||||||
With regard to other intangibles with indefinite lives, the Company determines the fair value by asset, which is then compared to its carrying value. The Company first performs a qualitative assessment to determine whether it is more likely than not that the fair value of its identified reporting unit is less than its carrying value. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount the Company performs a quantitative test. The estimated fair value is determined utilizing the expected present value of the projected future cash flows of the asset, market comparables for similar businesses and other relevant information. | ||||||||||||
Intangible assets with definite lives consist principally of customer lists, covenants not to compete, and certain other intellectual property assets and are amortized over their expected useful lives. Customer lists are amortized on a straight-line basis over a five-year period, while covenants not to compete are amortized on a straight-line basis over their contractual term. Other intellectual property assets are amortized over their remaining useful lives, which range from five to twenty years. | ||||||||||||
Income taxes | ' | |||||||||||
Income taxes | ||||||||||||
The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and the tax basis of assets and liabilities and are measured using enacted tax rates and laws that will be in effect when the differences are expected to enter into the determination of taxable income. | ||||||||||||
The Company believes that its taxable earnings, during the periods when the temporary differences giving rise to deferred tax assets become deductible or when tax benefit carryforwards may be utilized, should be sufficient to realize the related future income tax benefits. For those jurisdictions where the expiration date of the tax benefit carryforwards or the projected taxable earnings indicates that realization is not likely, the Company establishes a valuation allowance. | ||||||||||||
In assessing the need for a valuation allowance, the Company estimates future taxable earnings, with consideration for the feasibility of on-going tax planning strategies and the realizability of tax benefit carryforwards, to determine which deferred tax assets are more likely than not to be realized in the future. Valuation allowances related to deferred tax assets can be impacted by changes to tax laws, changes to statutory tax rates and future taxable earnings. In the event that actual results differ from these estimates in future periods, the Company may need to adjust the valuation allowance. | ||||||||||||
The Company accounts for uncertain tax positions using a two-step method. Recognition occurs when an entity concludes that a tax position, based solely on technical merits, is more likely than not to be sustained upon examination. If a tax position is more likely than not to be sustained upon examination, the amount recognized is the largest amount of benefit, determined on a cumulative probability basis, which is more likely than not to be realized upon settlement. The Company assesses all income tax positions and adjusts its reserves against these positions periodically based upon these criteria. The Company also assesses potential penalties and interest associated with these tax positions, and includes these amounts as a component of income tax expense. | ||||||||||||
In calculating the provision for income taxes on an interim basis, the Company uses an estimate of the annual effective tax rate based upon the facts and circumstances known. The Company’s effective tax rate is based on expected income and statutory tax rates and permanent differences between financial statement and tax return income applicable to the Company in the various jurisdictions in which the Company operates. | ||||||||||||
The Company assesses foreign investment levels periodically to determine if all or a portion of the Company’s investments in foreign subsidiaries are indefinitely invested. If foreign investments are not expected to be indefinitely invested, the Company provides for income taxes on the portion that is not indefinitely invested. | ||||||||||||
Non-income Taxes | ' | |||||||||||
Non-income Taxes | ||||||||||||
The Company is subject to tax examinations for sales-based taxes. A number of these examinations are ongoing and, in certain cases, have resulted in assessments from taxing authorities. Where a sales tax liability in respect to a jurisdiction is probable and can be reliably estimated, the Company has made accruals for these matters which are reflected in the Company’s Consolidated Financial Statements. These amounts are included in the Consolidated Financial Statements in Selling, general and administrative expenses. Future developments relating to the foregoing could result in adjustments being made to these accruals. In fiscal 2012, the Company recorded accruals of $19.7 based on assessments related to sales tax audits in two jurisdictions, which resulted in payments of $15.3 in fiscal 2013. | ||||||||||||
Unredeemed incentive credits | ' | |||||||||||
Unredeemed incentive credits | ||||||||||||
The Company employs incentive programs to encourage sponsor participation in its book clubs and book fairs. These programs allow the sponsors to accumulate credits which can then be redeemed for Company products or other items offered by the Company. The Company recognizes a liability for the estimated costs of providing these credits at the time of the recognition of revenue for the underlying purchases of Company product that resulted in the granting of the credits. As the credits are redeemed, such liability is reduced. | ||||||||||||
Pension obligations | ' | |||||||||||
Pension obligations – Scholastic Corporation and certain of its subsidiaries have defined benefit pension plans covering the majority of their employees who meet certain eligibility requirements. The Company’s pension plans and other post-retirement benefits are accounted for using actuarial valuations. | ||||||||||||
The Company’s pension calculations are based on three primary actuarial assumptions: the discount rate, the long-term expected rate of return on plan assets, and the anticipated rate of compensation increases. The discount rate is used in the measurement of the projected, accumulated and vested benefit obligations and the interest cost component of net periodic pension costs. The long-term expected return on plan assets is used to calculate the expected earnings from the investment or reinvestment of plan assets. The anticipated rate of compensation increase is used to estimate the increase in compensation for participants of the plan from their current age to their assumed retirement age. The estimated compensation amounts are used to determine the benefit obligations and the service cost. Pension benefits in the cash balance plan for employees located in the United States are based on formulas in which the employees’ balances are credited monthly with interest based on the average rate for one-year United States Treasury Bills plus 1%. Contribution credits are based on employees’ years of service and compensation levels during their employment periods for the periods prior to June 1, 2009. In fiscal year 2014, the Company recorded a pretax settlement charge of $1.7 related to lump sum benefits paid for certain US pension obligations. | ||||||||||||
Other post-retirement benefits – The Company provides post-retirement benefits, consisting of healthcare and life insurance benefits, to eligible retired United States-based employees. The post-retirement medical plan benefits are funded on a pay-as-you-go basis, with the Company paying a portion of the premium and the employee paying the remainder. The Company calculates the existing benefit obligation, based on the discount rate and the assumed health care cost trend rate. The discount rate is used in the measurement of the projected and accumulated benefit obligations and the interest cost component of net periodic post-retirement benefit cost. The assumed health care cost trend rate is used in the measurement of the long-term expected increase in medical claims. | ||||||||||||
Foreign currency translation | ' | |||||||||||
Foreign currency translation | ||||||||||||
The Company’s non-United States dollar-denominated assets and liabilities are translated into United States dollars at prevailing rates at the balance sheet date and the revenues, costs and expenses are translated at the weighted average rates prevailing during each reporting period. Net gains or losses resulting from the translation of the foreign financial statements and the effect of exchange rate changes on long-term intercompany balances are accumulated and charged directly to the foreign currency translation adjustment component of stockholders’ equity until such time as the operations are substantially liquidated or sold. The Company assesses foreign investment levels periodically to determine if all or a portion of the Company’s investments in foreign subsidiaries are indefinitely invested. | ||||||||||||
Shipping and handling costs | ' | |||||||||||
Shipping and handling costs | ||||||||||||
Amounts billed to customers for shipping and handling are classified as revenue. Costs incurred in shipping and handling are recognized in Cost of goods sold. | ||||||||||||
Advertising costs | ' | |||||||||||
Advertising costs | ||||||||||||
The Company incurs costs for both direct-response and non-direct-response advertising. The Company capitalizes direct-response advertising costs for expenditures, primarily in its Classroom Magazines division. The asset is amortized on a cost-pool-by-cost-pool basis over the period during which the future benefits are expected to be received. Included in Prepaid expenses and other current assets on the balance sheet is $4.6 and $4.5 of capitalized advertising costs as of May 31, 2014 and 2013, respectively. The Company expenses non-direct-response advertising costs as incurred. | ||||||||||||
Stock-based compensation | ' | |||||||||||
Stock-based compensation | ||||||||||||
The Company recognizes the cost of services received in exchange for any stock-based awards. The Company recognizes the cost on a straight-line basis over an award’s requisite service period, which is generally the vesting period, based on the award’s fair value at the date of grant. | ||||||||||||
The fair values of stock options granted by the Company are estimated at the date of grant using the Black-Scholes option-pricing model. The Company’s determination of the fair value of stock-based payment awards using this option-pricing model is affected by the price of the Common Stock as well as by assumptions regarding highly complex and subjective variables, including, but not limited to, the expected price volatility of the Common Stock over the terms of the awards, the risk-free interest rate, and actual and projected employee stock option exercise behaviors. Estimates of fair value are not intended to predict actual future events or the value that may ultimately be realized by those who receive these awards. | ||||||||||||
Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates, in order to derive the Company’s best estimate of awards ultimately expected to vest. In determining the estimated forfeiture rates for stock-based awards, the Company annually conducts an assessment of the actual number of equity awards that have been forfeited previously. When estimating expected forfeitures, the Company considers factors such as the type of award, the employee class and historical experience. The estimate of stock-based awards that will ultimately be forfeited requires significant judgment and, to the extent that actual results or updated estimates differ from current estimates, such amounts will be recorded as a cumulative adjustment in the period such estimates are revised. | ||||||||||||
The table set forth below provides the estimated fair value of options granted by the Company during fiscal years 2014, 2013 and 2012 and the significant weighted average assumptions used in determining such fair value under the Black-Scholes option pricing model. The average expected life represents an estimate of the period of time stock options are expected to remain outstanding based on the historical exercise behavior of the option grantees. The risk-free interest rate was based on the U.S. Treasury yield curve corresponding to the expected life in effect at the time of the grant. The volatility was estimated based on historical volatility corresponding to the expected life. | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Estimated fair value of stock options granted | $ | 10.37 | $ | 9.77 | $ | 9.3 | ||||||
Assumptions: | ||||||||||||
Expected dividend yield | 1.7 | % | 1.6 | % | 1.4 | % | ||||||
Expected stock price volatility | 38.6 | % | 37.5 | % | 36.7 | % | ||||||
Risk-free interest rate | 2.2 | % | 0.9 | % | 1.6 | % | ||||||
Expected life of options | 6 years | 6 years | 7 years | |||||||||
New Accounting Pronouncements | ' | |||||||||||
NEW ACCOUNTING PRONOUNCEMENTS | ||||||||||||
In June 2014, the Financial Accounting Standards Board (the "FASB") issued an update to the authoritative guidance related to stock compensation to resolve diverse accounting treatments of awards linked to performance targets and how to account for share-based payment awards that require a specific performance target to be achieved for employees to become eligible to vest in the awards. | ||||||||||||
The amendments require that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. A reporting entity should apply existing guidance as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the service has already been rendered. If it becomes probable that the performance target will be achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. | ||||||||||||
The amendments in this update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Company is evaluating the impact that this update will have on its consolidated financial position, results of operations and cash flows. | ||||||||||||
In May 2014, the FASB announced that it is amending the FASB Accounting Standards Codification by issuing Topic 606, Revenue from Contracts with Customers, at the same time as the International Accounting Standards Board (the "IASB") is issuing International Financial Reporting Standards 15, Revenue from Contracts with Customers. The issuance of this authoritative guidance completes the joint effort by the FASB and the IASB to clarify the principles for recognizing revenue and improve financial reporting by creating common revenue recognition guidance. | ||||||||||||
The authoritative guidance provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. | ||||||||||||
To achieve that core principle, an entity should apply the following steps: | ||||||||||||
• | Step 1: Identify the contract(s) with a customer. | |||||||||||
• | Step 2: Identify the performance obligations in the contract. | |||||||||||
• | Step 3: Determine the transaction price. | |||||||||||
• | Step 4: Allocate the transaction price to the performance obligations in the contract. | |||||||||||
• | Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. | |||||||||||
Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The update provides guidance for transactions that are not otherwise addressed comprehensively in authoritative guidance (for example, service revenue, contract modifications, and licenses of intellectual property). The amendments in this update are to be applied on a retrospective basis, utilizing one of two different methodologies. The amendments in this update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is evaluating the impact of this update on its consolidated financial position, results of operations and cash flows. | ||||||||||||
In April 2014, the FASB issued an update to the authoritative guidance related to the reporting of discontinued operations. The amendments in this update address the criteria for reporting discontinued operations and enhance convergence of the FASB’s and the IASB's reporting requirements for discontinued operations. The amendments revise the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. The amendments also require expanded disclosures for discontinued operations. The amendments are to be applied prospectively to all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The Company is evaluating the impact of this update on its consolidated financial position, results of operations and cash flows. | ||||||||||||
In July 2013, the FASB issued an update to the authoritative guidance related to the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists to address diversity in practice in the presentation of unrecognized tax benefits. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should generally be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. |
Description_of_the_Business_Ba2
Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
31-May-14 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||
Schedule of assumptions used in valuation of share-based compensation awards | ' | |||||||||||
The table set forth below provides the estimated fair value of options granted by the Company during fiscal years 2014, 2013 and 2012 and the significant weighted average assumptions used in determining such fair value under the Black-Scholes option pricing model. The average expected life represents an estimate of the period of time stock options are expected to remain outstanding based on the historical exercise behavior of the option grantees. The risk-free interest rate was based on the U.S. Treasury yield curve corresponding to the expected life in effect at the time of the grant. The volatility was estimated based on historical volatility corresponding to the expected life. | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Estimated fair value of stock options granted | $ | 10.37 | $ | 9.77 | $ | 9.3 | ||||||
Assumptions: | ||||||||||||
Expected dividend yield | 1.7 | % | 1.6 | % | 1.4 | % | ||||||
Expected stock price volatility | 38.6 | % | 37.5 | % | 36.7 | % | ||||||
Risk-free interest rate | 2.2 | % | 0.9 | % | 1.6 | % | ||||||
Expected life of options | 6 years | 6 years | 7 years | |||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | |||||||||||
31-May-14 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
Schedule of discontinued operations impact on income statement and balance sheet | ' | |||||||||||
The following table summarizes the operating results of the discontinued operations for the fiscal years ended May 31: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenues | $ | 0 | $ | 6.2 | $ | 9.8 | ||||||
Gain (loss) on sale | — | (1.1 | ) | — | ||||||||
Earnings (loss) before income taxes | 0.2 | (7.2 | ) | (7.2 | ) | |||||||
Income tax benefit (provision) | (0.1 | ) | 2.5 | 1.5 | ||||||||
Earnings (loss) from discontinued operations, net of tax | $ | 0.1 | $ | (4.7 | ) | $ | (5.7 | ) | ||||
The following table sets forth the assets and liabilities of the discontinued operations included in the Consolidated Balance Sheets of the Company as of May 31: | ||||||||||||
2014 | 2013 | |||||||||||
Accounts receivable, net | $ | — | $ | 0 | ||||||||
Other assets | 0.4 | 0.4 | ||||||||||
Current assets of discontinued operations | $ | 0.4 | $ | 0.4 | ||||||||
Accrued expenses and other current liabilities | 1.1 | 1.3 | ||||||||||
Current liabilities of discontinued operations | $ | 1.1 | $ | 1.3 | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
31-May-14 | ||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||||||
Schedule of segment reporting information by segment | ' | |||||||||||||||||||||||||||||||
The following table sets forth information for the Company’s segments for the three fiscal years ended May 31: | ||||||||||||||||||||||||||||||||
Children's | Educational | Classroom & | Media, | Overhead (1) (2) | Total | International | Total | |||||||||||||||||||||||||
Book | Technology | Supplemental | Licensing & | Domestic | ||||||||||||||||||||||||||||
Publishing & | & Services | Materials | Advertising (1) | |||||||||||||||||||||||||||||
Distribution (1) | Publishing | |||||||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||||||
Revenues | $ | 873.5 | $ | 248.7 | $ | 229.6 | $ | 56.2 | $ | — | $ | 1,408.00 | $ | 414.3 | $ | 1,822.30 | ||||||||||||||||
Bad debts | 2.6 | 0.9 | 1.6 | 0.1 | — | 5.2 | 3 | 8.2 | ||||||||||||||||||||||||
Depreciation and | 31.9 | 28 | 10.5 | 5.3 | 39 | 114.7 | 7.1 | 121.8 | ||||||||||||||||||||||||
amortization (3) | ||||||||||||||||||||||||||||||||
Asset Impairments | 28 | — | — | — | — | 28 | — | 28 | ||||||||||||||||||||||||
Segment operating income | 22.8 | 39.6 | 37.5 | (0.7 | ) | (66.9 | ) | 32.3 | 30.8 | 63.1 | ||||||||||||||||||||||
(loss) | ||||||||||||||||||||||||||||||||
Segment assets at May 31, | 371.3 | 173.7 | 166.8 | 30.7 | 532.9 | 1,275.40 | 252.7 | 1,528.10 | ||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||||||
Goodwill at May 31, 2014 | 40.9 | 22.7 | 65.4 | 5.4 | — | 134.4 | 10.1 | 144.5 | ||||||||||||||||||||||||
Expenditures for long-lived | 43.4 | 30.7 | 10.2 | 8.1 | 269.6 | 362 | 11.7 | 373.7 | ||||||||||||||||||||||||
assets including royalty | ||||||||||||||||||||||||||||||||
advances | ||||||||||||||||||||||||||||||||
Long-lived assets at May | 135.3 | 119 | 90.1 | 14.1 | 406.1 | 764.6 | 63.6 | 828.2 | ||||||||||||||||||||||||
31, 2014 | ||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||
Revenues | $ | 846.9 | $ | 227.7 | $ | 218 | $ | 58.7 | $ | — | $ | 1,351.30 | $ | 441.1 | $ | 1,792.40 | ||||||||||||||||
Bad debts | 1.8 | 1.1 | 1.4 | 0.1 | — | 4.4 | 2.4 | 6.8 | ||||||||||||||||||||||||
Depreciation and | 31.5 | 22.7 | 9.4 | 3 | 41.6 | 108.2 | 7.2 | 115.4 | ||||||||||||||||||||||||
amortization (3) | ||||||||||||||||||||||||||||||||
Segment operating income | 24.5 | 29.5 | 29.6 | 4.7 | (60.2 | ) | 28.1 | 39.8 | 67.9 | |||||||||||||||||||||||
(loss) | ||||||||||||||||||||||||||||||||
Segment assets at May 31, | 407.5 | 170.8 | 168.6 | 26.9 | 402.1 | 1,175.90 | 264.7 | 1,440.60 | ||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||
Goodwill at May 31, 2013 | 54.3 | 22.7 | 65.4 | 5.4 | — | 147.8 | 10.1 | 157.9 | ||||||||||||||||||||||||
Expenditures for long-lived | 52.3 | 40.3 | 10.9 | 3.7 | 33.3 | 140.5 | 13.4 | 153.9 | ||||||||||||||||||||||||
assets including royalty | ||||||||||||||||||||||||||||||||
advances | ||||||||||||||||||||||||||||||||
Long-lived assets at May | 165.3 | 116.5 | 91.4 | 12 | 236.5 | 621.7 | 68 | 689.7 | ||||||||||||||||||||||||
31, 2013 | ||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||
Revenues | $ | 1,111.30 | $ | 254.7 | $ | 208.2 | $ | 75.3 | $ | — | $ | 1,649.50 | $ | 489.6 | $ | 2,139.10 | ||||||||||||||||
Bad debts | 6.4 | 0.7 | 1.9 | 0.1 | — | 9.1 | 3.2 | 12.3 | ||||||||||||||||||||||||
Depreciation and | 33.1 | 22.2 | 7.7 | 12.8 | 39 | 114.8 | 9.1 | 123.9 | ||||||||||||||||||||||||
amortization (3) | ||||||||||||||||||||||||||||||||
Asset Impairments | 0.5 | — | — | — | 6.2 | 6.7 | 0.3 | 7 | ||||||||||||||||||||||||
Segment operating income | 152.2 | 49.2 | 18.3 | (4.9 | ) | (87.1 | ) | 127.7 | 57.6 | 185.3 | ||||||||||||||||||||||
(loss) | ||||||||||||||||||||||||||||||||
Segment assets at May 31, | 543.5 | 168.5 | 163.6 | 38.1 | 438.6 | 1,352.30 | 310.3 | 1,662.60 | ||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||
Goodwill at May 31, 2012 | 54.3 | 22.7 | 65.4 | 5.4 | — | 147.8 | 9.9 | 157.7 | ||||||||||||||||||||||||
Expenditures for long-lived | 44.4 | 26.2 | 17.9 | 6.3 | 37.9 | 132.7 | 13.2 | 145.9 | ||||||||||||||||||||||||
assets including royalty | ||||||||||||||||||||||||||||||||
advances | ||||||||||||||||||||||||||||||||
Long-lived assets at May | 167.5 | 101.1 | 90.3 | 11.6 | 246.7 | 617.2 | 67.1 | 684.3 | ||||||||||||||||||||||||
31, 2012 | ||||||||||||||||||||||||||||||||
-1 | As discussed in Note 3, “Discontinued Operations,” the Company closed or sold several operations during the first quarter of fiscal 2012 and the fourth quarter of fiscal 2013. All of these businesses are classified as discontinued operations in the Company’s financial statements and, as such, are not reflected in this table. | |||||||||||||||||||||||||||||||
-2 | Overhead includes all domestic corporate amounts not allocated to segments, including expenses and costs related to the management of corporate assets. Unallocated assets are principally comprised of deferred income taxes and property, plant and equipment related to the Company’s headquarters in the metropolitan New York area, its fulfillment and distribution facilities located in Missouri and its facility located in Connecticut. Overhead also includes amounts previously allocated to the Media, Licensing and Advertising segment for the Company’s direct-to-home toy catalog business that was discontinued in the first quarter of fiscal 2012 and amounts previously allocated to the Children’s Book Publishing and Distribution segment for the computer club business that was discontinued in the fourth quarter of fiscal 2013. | |||||||||||||||||||||||||||||||
-3 | Includes depreciation of property, plant and equipment and amortization of intangible assets and prepublication and production costs. |
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||||||||||
31-May-14 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Schedule of debt | ' | |||||||||||||||
The following table summarizes debt as of May 31: | ||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
2014 | 2013 | |||||||||||||||
Loan Agreement: | ||||||||||||||||
Revolving Loan (interest rate of 1.3%) | $ | 120 | $ | 120 | $ | — | $ | — | ||||||||
Unsecured Lines of Credit (weighted average interest | $ | 15.8 | $ | 15.8 | $ | 2 | $ | 2 | ||||||||
rates of 2.3% and 9.0%, respectively) | ||||||||||||||||
Total debt | $ | 135.8 | $ | 135.8 | $ | 2 | $ | 2 | ||||||||
Less lines of credit and current portion of long-term | (15.8 | ) | (15.8 | ) | (2.0 | ) | (2.0 | ) | ||||||||
debt | ||||||||||||||||
Total long-term debt | $ | 120 | $ | 120 | $ | — | $ | — | ||||||||
Schedule of maturities of long-term debt | ' | |||||||||||||||
The following table sets forth the maturities of the carrying values of the Company’s debt obligations as of May 31, 2014 for the fiscal years ending May 31: | ||||||||||||||||
2015 | $ | 15.8 | ||||||||||||||
2016 | — | |||||||||||||||
2017 | — | |||||||||||||||
2018 | 120 | |||||||||||||||
2019 | — | |||||||||||||||
Thereafter | — | |||||||||||||||
Total debt | $ | 135.8 | ||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||
31-May-14 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Schedule of capital leased assets | ' | |||||||
The following table sets forth the composition of capital leases reflected as Property, plant and equipment in the Consolidated Balance Sheets at May 31: | ||||||||
2014 | 2013 | |||||||
Land | $ | — | $ | — | ||||
Buildings | — | 39 | ||||||
Equipment | 0 | 1 | ||||||
0 | 40 | |||||||
Accumulated amortization | 0 | (13.4 | ) | |||||
Total | $ | 0 | $ | 26.6 | ||||
Summary of minimum future annual rental payments | ' | |||||||
The following table sets forth the aggregate minimum future annual rental commitments at May 31, 2014 under all non-cancelable leases for the fiscal years ending May 31: | ||||||||
Operating Leases | Capital Leases | |||||||
2015 | $ | 32.1 | $ | 0 | ||||
2016 | 25.7 | — | ||||||
2017 | 19.2 | — | ||||||
2018 | 14.5 | — | ||||||
2019 | 8.1 | — | ||||||
Thereafter | 14.1 | — | ||||||
Total minimum lease payments | $ | 113.7 | $ | 0 | ||||
Less minimum sublease income to be received | $ | 69.9 | $ | — | ||||
Minimum lease payments, net of sublease income | $ | 43.8 | $ | 0 | ||||
Less amount representing interest | 0 | |||||||
Present value of net minimum capital lease payments | 0 | |||||||
Less current maturities of capital lease obligations | — | |||||||
Long-term capital lease obligations | $ | 0 | ||||||
Schedule of minimum future contractual commitments | ' | |||||||
The following table sets forth the aggregate minimum future contractual commitments at May 31, 2014 relating to royalty advances and minimum print quantities for the fiscal years ending May 31: | ||||||||
Royalty Advances | Minimum Print Quantities | |||||||
2015 | $ | 10.4 | $ | 47.6 | ||||
2016 | 2.7 | 48.3 | ||||||
2017 | 0.9 | 44.8 | ||||||
2018 | 0.8 | 45.5 | ||||||
2019 | 0 | 46.3 | ||||||
Thereafter | — | 143.4 | ||||||
Total commitments | $ | 14.8 | $ | 375.9 | ||||
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||
31-May-14 | ||||||||
Equity Method And Cost Method Investments [Abstract] | ' | |||||||
Schedule of cost and equity method investments | ' | |||||||
The following table summarizes the Company’s investments as of May 31: | ||||||||
2014 | 2013 | |||||||
Cost method investments: | ||||||||
UK-based | $ | — | $ | 5 | ||||
Total cost method investments | $ | — | $ | 5 | ||||
Equity method investments: | ||||||||
UK-based | $ | 18.3 | $ | 14.6 | ||||
Other | 0.1 | 0 | ||||||
Total equity method investments | $ | 18.4 | $ | 14.6 | ||||
Total | $ | 18.4 | $ | 19.6 | ||||
Goodwill_and_Other_Intangibles1
Goodwill and Other Intangibles (Tables) | 12 Months Ended | |||||||
31-May-14 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Schedule of goodwill | ' | |||||||
The following table summarizes the activity in Goodwill for the fiscal years ended May 31: | ||||||||
2014 | 2013 | |||||||
Gross beginning balance | $ | 178.7 | $ | 178.5 | ||||
Accumulated impairment | (20.8 | ) | (20.8 | ) | ||||
Beginning balance | 157.9 | 157.7 | ||||||
Impairment charge | (13.4 | ) | — | |||||
Foreign currency translation | 0 | 0 | ||||||
Other | — | 0.2 | ||||||
Gross ending balance | 178.7 | 178.7 | ||||||
Accumulated impairment | (34.2 | ) | (20.8 | ) | ||||
Ending balance | $ | 144.5 | $ | 157.9 | ||||
Schedule of finite-lived intangible assets | ' | |||||||
The following table summarizes Other intangibles as of May 31: | ||||||||
2014 | 2013 | |||||||
Beginning balance-Customer lists | $ | 3.4 | $ | 4.3 | ||||
Additions due to acquisition | — | 0.1 | ||||||
Amortization expense | (1.0 | ) | (1.0 | ) | ||||
Foreign currency translation | 0 | 0 | ||||||
Customer lists, net of accumulated amortization of $3.3 and $2.3, respectively | $ | 2.4 | $ | 3.4 | ||||
Beginning balance-Other intangibles | $ | 9.2 | $ | 10.4 | ||||
Additions due to acquisition | — | 0.2 | ||||||
Amortization expense | (1.4 | ) | (1.5 | ) | ||||
Other | (0.2 | ) | 0.1 | |||||
Other intangibles, net of accumulated amortization of $13.4 and $12.0, respectively | $ | 7.6 | $ | 9.2 | ||||
Total other intangibles subject to amortization | $ | 10 | $ | 12.6 | ||||
Trademarks and other | $ | 2.2 | $ | 2 | ||||
Total other intangibles not subject to amortization | $ | 2.2 | $ | 2 | ||||
Total other intangibles | $ | 12.2 | $ | 14.6 | ||||
Schedule of future amortization of finite-lived intangible assets | ' | |||||||
The following table reflects the estimated amortization expense for intangibles for the next five fiscal years ending May 31: | ||||||||
2015 | $ | 2.3 | ||||||
2016 | 2.2 | |||||||
2017 | 2.2 | |||||||
2018 | 0.5 | |||||||
2019 | 0.4 | |||||||
Taxes_Tables
Taxes (Tables) | 12 Months Ended | |||||||||||
31-May-14 | ||||||||||||
Income Tax And Non Income Tax Disclosure [Abstract] | ' | |||||||||||
Schedule of income from continuing operations | ' | |||||||||||
The components of earnings from continuing operations before income taxes for the fiscal years ended May 31 are: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | 43.5 | $ | 34.6 | $ | 145.4 | ||||||
Non-United States | 6.9 | 18.8 | 24.3 | |||||||||
Total | $ | 50.4 | $ | 53.4 | $ | 169.7 | ||||||
Schedule of income tax expense (benefit) | ' | |||||||||||
The provision for income taxes from continuing operations for the fiscal years ended May 31 consists of the following components: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal | ||||||||||||
Current | $ | 6.5 | $ | 4.5 | $ | 49.1 | ||||||
Deferred | (8.2 | ) | 2.4 | (8.2 | ) | |||||||
$ | (1.7 | ) | $ | 6.9 | $ | 40.9 | ||||||
State and local | ||||||||||||
Current | $ | 6.8 | $ | 0.5 | $ | 12 | ||||||
Deferred | (2.6 | ) | 2.2 | (0.7 | ) | |||||||
$ | 4.2 | $ | 2.7 | $ | 11.3 | |||||||
Non-United States | ||||||||||||
Current | $ | 5.8 | $ | 7.8 | $ | 12.8 | ||||||
Deferred | (2.2 | ) | 0.2 | (3.4 | ) | |||||||
$ | 3.6 | $ | 8 | $ | 9.4 | |||||||
Total | ||||||||||||
Current | $ | 19.1 | $ | 12.8 | $ | 73.9 | ||||||
Deferred | (13.0 | ) | 4.8 | (12.3 | ) | |||||||
$ | 6.1 | $ | 17.6 | $ | 61.6 | |||||||
Schedule of effective income tax rate reconciliation | ' | |||||||||||
A reconciliation of the significant differences between the effective income tax rate and the federal statutory rate on earnings from continuing operations before income taxes for the fiscal years ended May 31 is as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Computed federal statutory provision | 35 | % | 35 | % | 35 | % | ||||||
State income tax provision, net of federal income tax benefit | 3.6 | % | 3.3 | % | 4.3 | % | ||||||
Difference in effective tax rates on earnings of foreign subsidiaries | 3.7 | % | 0.3 | % | 0.2 | % | ||||||
Charitable contributions | -1.1 | % | -4.4 | % | -0.7 | % | ||||||
Tax credits | -0.3 | % | -0.4 | % | -0.1 | % | ||||||
Valuation allowances | 0.7 | % | 2.4 | % | -1.4 | % | ||||||
Uncertain Positions | -27.1 | % | — | % | — | % | ||||||
Other - net | -2.4 | % | -3.2 | % | -1 | % | ||||||
Effective tax rates | 12.1 | % | 33 | % | 36.3 | % | ||||||
Total provision for income taxes | $ | 6.1 | $ | 17.6 | $ | 61.6 | ||||||
Schedule of deferred tax assets and liabilities | ' | |||||||||||
The significant components for deferred income taxes for the fiscal years ended May 31, including deferred income taxes related to discontinued operations, are as follows: | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets | ||||||||||||
Tax uniform capitalization | $ | 26.6 | $ | 25.8 | ||||||||
Inventory reserves | 29.5 | 29.2 | ||||||||||
Allowance for doubtful accounts | 4.9 | 5.4 | ||||||||||
Other reserves | 26.4 | 26.3 | ||||||||||
Post-retirement, post-employment and pension obligations | 15.5 | 12.6 | ||||||||||
Tax carryforwards | 33.4 | 47.8 | ||||||||||
Lease accounting | (0.3 | ) | 11.7 | |||||||||
Other - net | 20.4 | 32.7 | ||||||||||
Gross deferred tax assets | 156.4 | 191.5 | ||||||||||
Valuation allowance | (30.0 | ) | (31.9 | ) | ||||||||
Total deferred tax assets | $ | 126.4 | $ | 159.6 | ||||||||
Deferred tax liabilities | ||||||||||||
Prepaid expenses | (1.0 | ) | (0.5 | ) | ||||||||
Depreciation and amortization | (40.3 | ) | (65.0 | ) | ||||||||
Total deferred tax liability | $ | (41.3 | ) | $ | (65.5 | ) | ||||||
Total net deferred tax assets | $ | 85.1 | $ | 94.1 | ||||||||
Schedule of unrecognized tax benefits rollforward | ' | |||||||||||
A reconciliation of the unrecognized tax benefits for the fiscal years ended May 31 is as follows: | ||||||||||||
Gross unrecognized benefits at May 31, 2011 | $ | 30.8 | ||||||||||
Decreases related to prior year tax positions | (0.8 | ) | ||||||||||
Increase related to prior year tax positions | 9.5 | |||||||||||
Increases related to current year tax positions | 1.7 | |||||||||||
Settlements during the period | (2.4 | ) | ||||||||||
Lapse of statute of limitation | (0.1 | ) | ||||||||||
Gross unrecognized benefits at May 31, 2012 | $ | 38.7 | ||||||||||
Decreases related to prior year tax positions | (7.2 | ) | ||||||||||
Increase related to prior year tax positions | 3.5 | |||||||||||
Increases related to current year tax positions | 1 | |||||||||||
Settlements during the period | (0.5 | ) | ||||||||||
Lapse of statute of limitation | — | |||||||||||
Gross unrecognized benefits at May 31, 2013 | $ | 35.5 | ||||||||||
Decreases related to prior year tax positions | (20.4 | ) | ||||||||||
Increase related to prior year tax positions | 2.8 | |||||||||||
Increases related to current year tax positions | 2.6 | |||||||||||
Settlements during the period | (1.8 | ) | ||||||||||
Lapse of statute of limitation | (4.3 | ) | ||||||||||
Gross unrecognized benefits at May 31, 2014 | $ | 14.4 | ||||||||||
Capital_Stock_and_StockBased_A1
Capital Stock and Stock-Based Awards (Tables) | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Schedule of capital stock | ' | ||||||||||||
Capital stock consisted of the following as of May 31, 2014: | |||||||||||||
Class A Stock | Common Stock | Preferred Stock | |||||||||||
Authorized | 4,000,000 | 70,000,000 | 2,000,000 | ||||||||||
Reserved for Issuance | 1,499,000 | 7,245,021 | — | ||||||||||
Outstanding | 1,656,200 | 30,605,978 | — | ||||||||||
Schedule of share-based compensation activity | ' | ||||||||||||
The following table sets forth the intrinsic value of stock options exercised, pretax stock-based compensation cost and related tax benefits for the Class A Stock and Common Stock plans for the fiscal years ended May 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Total intrinsic value of stock options exercised | $ | 4.6 | $ | 2.3 | $ | 5 | |||||||
Stock-based compensation cost (pretax) | $ | 9.3 | $ | 6.3 | $ | 12.2 | |||||||
Tax benefits related to stock-based compensation cost | $ | 1.7 | $ | 0.8 | $ | 1.8 | |||||||
Weighted average grant date fair value per option | $ | 10.37 | $ | 9.77 | $ | 9.3 | |||||||
Schedule of stock option activity | ' | ||||||||||||
The following table sets forth the stock option activity for the Class A Stock and Common Stock plans for the fiscal year ended May 31, 2014: | |||||||||||||
Options | Weighted | Average Remaining | Aggregate | ||||||||||
Average | Contractual | Intrinsic Value | |||||||||||
Exercise Price | Term (in years) | ||||||||||||
Outstanding at May 31, 2013 | 4,185,480 | $ | 29.49 | ||||||||||
Granted | 778,434 | $ | 30.12 | ||||||||||
Exercised | (506,380 | ) | $ | 23.94 | |||||||||
Expired | (41,000 | ) | $ | 31.43 | |||||||||
Cancellations and forfeitures | (61,167 | ) | $ | 28.82 | |||||||||
Outstanding at May 31, 2014 | 4,355,367 | $ | 30.23 | 4.8 | $ | 12.3 | |||||||
Exercisable at May 31, 2014 | 3,156,844 | $ | 30.7 | 3.3 | $ | 8.8 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||
Schedule of nonvested restricted stock unit activity | ' | ||||||||||||
The following table sets forth the RSU and MSPP Stock Unit activity for the year ended May 31, 2014: | |||||||||||||
Stock Units/RSUs | Weighted | ||||||||||||
Average grant | |||||||||||||
date fair value | |||||||||||||
Nonvested as of May 31, 2013 | 559,403 | $ | 29.98 | ||||||||||
Granted | 68,497 | $ | 30.07 | ||||||||||
Vested | (295,572 | ) | $ | 16.84 | |||||||||
Forfeited | (9,834 | ) | $ | 28.9 | |||||||||
Nonvested as of May 31, 2014 | 322,494 | $ | 21.33 | ||||||||||
Schedule of employee stock purchase plan activity | ' | ||||||||||||
The following table sets forth the ESPP share activity for the fiscal years ended May 31: | |||||||||||||
2014 | 2013 | ||||||||||||
Shares issued | 57,835 | 68,228 | |||||||||||
Weighted average purchase price per share | $ | 26.92 | $ | 24.78 | |||||||||
Restricted Stock Units (RSUs) [Member] | ' | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||
Schedule of restricted stock unit activity | ' | ||||||||||||
The following table sets forth the RSU award activity for the fiscal years ended May 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
RSUs granted | 67,670 | 125,584 | 205,620 | ||||||||||
Weighted average grant date price per unit | $ | 30.34 | $ | 23.05 | $ | 27.92 | |||||||
Management Stock Purchase Plan [Member] | ' | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||
Schedule of restricted stock unit activity | ' | ||||||||||||
The following table sets forth the MSPP Stock Unit activity for the fiscal years ended May 31: | |||||||||||||
2014 | 2013 | ||||||||||||
MSPP Stock Units allocated | 827 | 87,317 | |||||||||||
Purchase price per unit | $ | 21.15 | $ | 19.73 | |||||||||
Treasury_Stock_Tables
Treasury Stock (Tables) | 12 Months Ended | ||||
31-May-14 | |||||
Stockholders' Equity Attributable to Parent [Abstract] | ' | ||||
Tabular disclosure of entity's treasury stock | ' | ||||
The Company has authorizations from the Board of Directors to repurchase Common Stock, from time to time as conditions allow, on the open market or through negotiated private transactions, as summarized in the table below: | |||||
Authorization | Amount | ||||
Sep-10 | $44.00 | (a) | |||
Less repurchases | (30.6 | ) | |||
Remaining Board authorization at May 31, 2014 | $ | 13.4 | |||
(a) | Represents the remainder of a $200.0 authorization after giving effect to the purchase of 5,199,699 shares at $30.00 per share pursuant to a large share repurchase in the form of a modified Dutch auction tender offer that was completed by the Company on November 3, 2010 for a total cost of $156.0, excluding related fees and expenses. |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||
31-May-14 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of assumptions used | ' | |||||||||||||||||||||||
The following table sets forth the weighted average actuarial assumptions utilized to determine the benefit obligations for the Pension Plan and the UK Pension Plan (collectively the “Pension Plans”), including the Post-Retirement Benefits, at May 31: | ||||||||||||||||||||||||
Pension Plans | Post-Retirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Weighted average assumptions used to determine benefit obligations: | ||||||||||||||||||||||||
Discount rate | 4.1 | % | 4 | % | 4 | % | 4 | % | 3.9 | % | 3.9 | % | ||||||||||||
Rate of compensation increase | 4.2 | % | 4.4 | % | 3.3 | % | — | — | — | |||||||||||||||
Weighted average assumptions used to determine net periodic benefit cost: | ||||||||||||||||||||||||
Discount rate | 4 | % | 4 | % | 5.1 | % | 3.9 | % | 3.9 | % | 5 | % | ||||||||||||
Expected long-term return on plan assets | 7.5 | % | 7.3 | % | 7.7 | % | — | — | — | |||||||||||||||
Rate of compensation increase | 4.4 | % | 3.3 | % | 4.3 | % | — | — | — | |||||||||||||||
Schedule of changes in projected benefit obligations | ' | |||||||||||||||||||||||
The following table sets forth the change in benefit obligation for the Pension Plans and Post-Retirement Benefits at May 31: | ||||||||||||||||||||||||
Pension Plans | Post-Retirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 185.6 | $ | 182.2 | $ | 36.2 | $ | 39.6 | ||||||||||||||||
Service cost | — | — | 0 | 0 | ||||||||||||||||||||
Interest cost | 7.2 | 6.9 | 1.3 | 1.4 | ||||||||||||||||||||
Plan participants’ contributions | — | — | 0.4 | 0.4 | ||||||||||||||||||||
Actuarial losses (gains) | (2.5 | ) | 7.4 | (1.9 | ) | (2.8 | ) | |||||||||||||||||
Foreign currency translation | 3.7 | (0.8 | ) | — | — | |||||||||||||||||||
Settlement | (6.4 | ) | — | — | — | |||||||||||||||||||
Benefits paid, including expenses | (7.1 | ) | (10.1 | ) | (2.6 | ) | (2.4 | ) | ||||||||||||||||
Benefit obligation at end of year | $ | 180.5 | $ | 185.6 | $ | 33.4 | $ | 36.2 | ||||||||||||||||
Schedule of changes in fair value of plan assets | ' | |||||||||||||||||||||||
The following table sets forth the change in plan assets for the Pension Plans and Post-Retirement Benefits at May 31: | ||||||||||||||||||||||||
Pension Plans | Post-Retirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 173.8 | $ | 145.8 | $ | — | $ | — | ||||||||||||||||
Actual return on plan assets | 21.1 | 29.9 | — | — | ||||||||||||||||||||
Employer contributions | 4.6 | 8.8 | 2.2 | 2 | ||||||||||||||||||||
Settlement | (6.4 | ) | — | — | — | |||||||||||||||||||
Benefits paid, including expenses | (7.1 | ) | (10.1 | ) | (2.6 | ) | (2.4 | ) | ||||||||||||||||
Plan participants’ contributions | — | — | 0.4 | 0.4 | ||||||||||||||||||||
Foreign currency translation | 2.6 | (0.6 | ) | — | — | |||||||||||||||||||
Fair value of plan assets at end of year | $ | 188.6 | $ | 173.8 | $ | — | $ | — | ||||||||||||||||
Schedule of amounts recognized in balance sheets | ' | |||||||||||||||||||||||
The following table sets forth the net funded status of the Pension Plans and Post-Retirement Benefits and the related amounts | ||||||||||||||||||||||||
recognized on the Company’s Consolidated Balance Sheets at May 31: | ||||||||||||||||||||||||
Pension Plans | Post-Retirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Non-current assets | $ | 19.4 | $ | — | $ | — | $ | — | ||||||||||||||||
Current liabilities | — | — | (2.6 | ) | (2.7 | ) | ||||||||||||||||||
Non-current liabilities | (11.4 | ) | (11.8 | ) | (30.8 | ) | (33.5 | ) | ||||||||||||||||
Net funded balance | $ | 8 | $ | (11.8 | ) | $ | (33.4 | ) | $ | (36.2 | ) | |||||||||||||
Schedule of amounts recognized in other comprehensive income (loss) | ' | |||||||||||||||||||||||
The following amounts were recognized in Accumulated other comprehensive loss for the Pension Plans and Post-Retirement Benefits in the Company’s Consolidated Balance Sheets at May 31: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Pension | Post - | Total | Pension | Post - | Total | |||||||||||||||||||
Plans | Retirement | Plans | Retirement | |||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||
Net actuarial gain (loss) | $ | (47.6 | ) | $ | (9.3 | ) | $ | (56.9 | ) | $ | (62.1 | ) | $ | (13.4 | ) | $ | (75.5 | ) | ||||||
Net prior service credit | — | 0.3 | 0.3 | — | 0.5 | 0.5 | ||||||||||||||||||
Net amount recognized in Accumulated other | $ | (47.6 | ) | $ | (9.0 | ) | $ | (56.6 | ) | $ | (62.1 | ) | $ | (12.9 | ) | $ | (75.0 | ) | ||||||
comprehensive income (loss) | ||||||||||||||||||||||||
Schedule of accumulated benefit obligations in excess of fair value of plan assets | ' | |||||||||||||||||||||||
The following table sets forth information with respect to the Pension Plans with accumulated benefit obligations in excess of plan assets for the fiscal years ended May 31: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Projected benefit obligations | $ | 180.5 | $ | 185.6 | ||||||||||||||||||||
Accumulated benefit obligations | 179.5 | 184.6 | ||||||||||||||||||||||
Fair value of plan assets | 188.6 | 173.8 | ||||||||||||||||||||||
Schedule of net benefit costs | ' | |||||||||||||||||||||||
The following table sets forth the net periodic (benefit) cost for the Pension Plans and Post-Retirement Benefits for the fiscal years ended May 31: | ||||||||||||||||||||||||
Pension Plans | Post - Retirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Components of net periodic (benefit) cost: | ||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
Interest cost | 7.2 | 6.9 | 8.4 | 1.3 | 1.4 | 1.7 | ||||||||||||||||||
Expected return on assets | (12.7 | ) | (10.5 | ) | (10.8 | ) | — | — | — | |||||||||||||||
Net amortization and deferrals | — | — | — | (0.2 | ) | (0.4 | ) | (0.6 | ) | |||||||||||||||
Lump sum settlement charge | 1.7 | — | — | — | — | — | ||||||||||||||||||
Recognized net actuarial loss | 1.8 | 2.2 | 1.4 | 2.2 | 3 | 3.8 | ||||||||||||||||||
Net periodic (benefit) cost | $ | (2.0 | ) | $ | (1.4 | ) | $ | (1.0 | ) | $ | 3.3 | $ | 4 | $ | 4.9 | |||||||||
Schedule of plan asset allocations | ' | |||||||||||||||||||||||
The following table sets forth the measurement of the Company’s Pension Plans’ assets at fair value by asset category at the respective dates: | ||||||||||||||||||||||||
Assets at Fair Value as of May 31, 2014 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | 7.1 | $ | — | $ | — | $ | 7.1 | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S. (1) | 39.8 | 101.3 | — | 141.1 | ||||||||||||||||||||
International (2) | 10.3 | 12.1 | — | 22.4 | ||||||||||||||||||||
Fixed Income (3) | — | 9.7 | — | 9.7 | ||||||||||||||||||||
Annuities | — | — | 6.2 | 6.2 | ||||||||||||||||||||
Real estate (4) | — | 2.1 | — | 2.1 | ||||||||||||||||||||
Total | $ | 57.2 | $ | 125.2 | $ | 6.2 | $ | 188.6 | ||||||||||||||||
Assets at Fair Value as of May 31, 2013 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | 3.5 | $ | — | $ | — | $ | 3.5 | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S. (1) | 94 | — | — | 94 | ||||||||||||||||||||
International (2) | 16.3 | 10.4 | — | 26.7 | ||||||||||||||||||||
Fixed Income (3) | 34.4 | 7.4 | — | 41.8 | ||||||||||||||||||||
Annuities | — | — | 6.1 | 6.1 | ||||||||||||||||||||
Real estate (4) | — | 1.7 | — | 1.7 | ||||||||||||||||||||
Total | $ | 148.2 | $ | 19.5 | $ | 6.1 | $ | 173.8 | ||||||||||||||||
-1 | Funds which invest in a diversified portfolio of publicly traded U.S. common stocks of large-cap, medium-cap and small-cap companies. There are no restrictions on these investments. | |||||||||||||||||||||||
-2 | Funds which invest in a diversified portfolio of publicly traded common stock of non-U.S. companies, primarily in Europe and Asia. There are no restrictions on these investments. | |||||||||||||||||||||||
-3 | Funds which invest in a diversified portfolio of publicly traded government bonds, corporate bonds and mortgage-backed securities. There are no restrictions on these investments. | |||||||||||||||||||||||
-4 | Represents assets of a non-U.S. entity plan invested in a fund whose underlying investments are comprised of properties. The fund has publicly available quoted market prices and there are no restrictions on these investments. | |||||||||||||||||||||||
The following table sets forth the total weighted average asset allocations for the Pension Plans by asset category at May 31: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Equity securities | 33 | % | 69.5 | % | ||||||||||||||||||||
Debt securities | 58.8 | % | 24 | % | ||||||||||||||||||||
Real estate | 1.1 | % | 1 | % | ||||||||||||||||||||
Other | 7.1 | % | 5.5 | % | ||||||||||||||||||||
100 | % | 100 | % | |||||||||||||||||||||
The following table sets forth the targeted weighted average asset allocations for the Pension Plans included in the Company’s investment policy: | ||||||||||||||||||||||||
US | UK | |||||||||||||||||||||||
Pension | Pension | |||||||||||||||||||||||
Plan | Plan | |||||||||||||||||||||||
Equity | 30 | % | 40 | % | ||||||||||||||||||||
Debt and cash equivalents | 70 | % | 30 | % | ||||||||||||||||||||
Real estate and other | 0 | % | 30 | % | ||||||||||||||||||||
100 | % | 100 | % | |||||||||||||||||||||
Schedule of changes in level 3 plan assets | ' | |||||||||||||||||||||||
The following table summarizes the changes in fair value of these Level 3 assets for the fiscal years ended May 31, 2014 and 2013: | ||||||||||||||||||||||||
Balance at May 31, 2012 | $ | 5.8 | ||||||||||||||||||||||
Actual Return on Plan Assets: | ||||||||||||||||||||||||
Relating to assets still held at May 31, 2013 | 0.7 | |||||||||||||||||||||||
Relating to assets sold during the year | — | |||||||||||||||||||||||
Purchases, sales and settlements, net | (0.3 | ) | ||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||||||||||||
Foreign currency translation | (0.1 | ) | ||||||||||||||||||||||
Balance at May 31, 2013 | $ | 6.1 | ||||||||||||||||||||||
Actual Return on Plan Assets: | ||||||||||||||||||||||||
Relating to assets still held at May 31, 2014 | (0.1 | ) | ||||||||||||||||||||||
Relating to assets sold during the year | — | |||||||||||||||||||||||
Purchases, sales and settlements, net | (0.3 | ) | ||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||||||||||||
Foreign currency translation | 0.5 | |||||||||||||||||||||||
Balance at May 31, 2014 | $ | 6.2 | ||||||||||||||||||||||
Schedule of expected benefit payments | ' | |||||||||||||||||||||||
The following table sets forth the expected future benefit payments under the Pension Plans and the Post-Retirement Benefits by fiscal year: | ||||||||||||||||||||||||
Post - Retirement | ||||||||||||||||||||||||
Pension | Benefit | Medicare | ||||||||||||||||||||||
Benefits | Payments | Subsidy | ||||||||||||||||||||||
Receipts | ||||||||||||||||||||||||
2015 | $ | 15.5 | $ | 2.9 | $ | 0.3 | ||||||||||||||||||
2016 | 11.8 | 2.8 | 0.3 | |||||||||||||||||||||
2017 | 11.1 | 2.8 | 0.3 | |||||||||||||||||||||
2018 | 10.8 | 2.7 | 0.3 | |||||||||||||||||||||
2019 | 11 | 2.6 | 0.3 | |||||||||||||||||||||
2020-2024 | 50.7 | 12.5 | 1.6 | |||||||||||||||||||||
Schedule of health care cost trend rates | ' | |||||||||||||||||||||||
Assumed health care cost trend rates at May 31: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Health care cost trend rate assumed for the next fiscal year | 7 | % | 7.5 | % | ||||||||||||||||||||
Rate to which the cost trend is assumed to decline (the ultimate trend rate) | 5 | % | 5 | % | ||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2021 | 2021 | ||||||||||||||||||||||
Schedule of effect of one-percentage-point change in assumed health care cost trend rates | ' | |||||||||||||||||||||||
A one percentage point change in assumed health care cost trend rates would have the following effects: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Total service and interest cost - 1% increase | $ | 0.1 | $ | 0.2 | ||||||||||||||||||||
Total service and interest cost - 1% decrease | (0.1 | ) | (0.1 | ) | ||||||||||||||||||||
Post-retirement benefit obligation - 1% increase | 3.6 | 4 | ||||||||||||||||||||||
Post-retirement benefit obligation - 1% decrease | (3.1 | ) | (3.4 | ) |
Accrued_Severance_Tables
Accrued Severance (Tables) | 12 Months Ended | |||||||
31-May-14 | ||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||
Schedule of accrued severance costs | ' | |||||||
The table below provides information regarding Accrued severance, which is included in “Other accrued expenses” on the Company’s Consolidated Balance Sheets. | ||||||||
2014 | 2013 | |||||||
Beginning balance | $ | 3.3 | $ | 2.7 | ||||
Accruals | 11.3 | 13.4 | ||||||
Payments | (13.4 | ) | (12.8 | ) | ||||
Ending balance | $ | 1.2 | $ | 3.3 | ||||
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 12 Months Ended | |||||||||||
31-May-14 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Schedule of basic and diluted earnings per share | ' | |||||||||||
The following table summarizes the reconciliation of the numerators and denominators for the Basic and Diluted earnings (loss) per share computation for the fiscal years ended May 31: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Earnings (loss) from continuing operations attributable to Class A and | $ | 44.2 | $ | 35.7 | $ | 107.6 | ||||||
Common Shares | ||||||||||||
Earnings (loss) from discontinued operations attributable to Class A and | 0.1 | (4.7 | ) | (5.7 | ) | |||||||
Common Shares, net of tax | ||||||||||||
Net income (loss) attributable to Class A and Common Shares | 44.3 | 31 | 101.9 | |||||||||
Weighted average Shares of Class A Stock and Common Stock | 32 | 31.8 | 31.2 | |||||||||
outstanding for basic earnings (loss) per share (in millions) | ||||||||||||
Dilutive effect of Class A Stock and Common Stock potentially issuable | 0.5 | 0.6 | 0.5 | |||||||||
pursuant to stock-based compensation plans (in millions) | ||||||||||||
Adjusted weighted average Shares of Class A Stock and Common Stock | 32.5 | 32.4 | 31.7 | |||||||||
outstanding for diluted earnings (loss) per share (in millions) | ||||||||||||
Earnings (loss) per share of Class A Stock and Common Stock | ||||||||||||
Basic earnings (loss) per share: | ||||||||||||
Earnings (loss) from continuing operations | $ | 1.38 | $ | 1.12 | $ | 3.45 | ||||||
Earnings (loss) from discontinued operations, net of tax | $ | 0.01 | $ | (0.15 | ) | $ | (0.18 | ) | ||||
Net income (loss) | $ | 1.39 | $ | 0.97 | $ | 3.27 | ||||||
Diluted earnings (loss) per share: | ||||||||||||
Earnings (loss) from continuing operations | $ | 1.36 | $ | 1.1 | $ | 3.39 | ||||||
Earnings (loss) from discontinued operations, net of tax | $ | 0 | $ | (0.15 | ) | $ | (0.18 | ) | ||||
Net income (loss) | $ | 1.36 | $ | 0.95 | $ | 3.21 | ||||||
Other_Accrued_Expenses_Tables
Other Accrued Expenses (Tables) | 12 Months Ended | |||||||
31-May-14 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Schedule of other accrued expenses | ' | |||||||
Other accrued expenses consist of the following at May 31: | ||||||||
2014 | 2013 | |||||||
Accrued payroll, payroll taxes and benefits | $ | 41.7 | $ | 45.8 | ||||
Accrued bonus and commissions | 36.9 | 22 | ||||||
Accrued other taxes | 27.5 | 29.3 | ||||||
Accrued advertising and promotions | 35.6 | 38.2 | ||||||
Accrued income taxes | 4.7 | 5.5 | ||||||
Accrued insurance | 8.3 | 8.7 | ||||||
Other accrued expenses | 30 | 30 | ||||||
Total accrued expenses | $ | 184.7 | $ | 179.5 | ||||
Other_Financial_Data_Tables
Other Financial Data (Tables) | 12 Months Ended | |||||||||||
31-May-14 | ||||||||||||
Other Financial Data Disclosure [Abstract] | ' | |||||||||||
Schedule of other financial data | ' | |||||||||||
Other financial data consisted of the following for the fiscal years ended May 31: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Advertising expense | $ | 133.1 | $ | 146.4 | $ | 145 | ||||||
Prepublication and production costs | 147.6 | 149 | 127.3 | |||||||||
Amortization of prepublication and production costs | 60.4 | 48.9 | 55.1 | |||||||||
Foreign currency transaction gain (loss) | (1.0 | ) | (0.5 | ) | 0.7 | |||||||
Purchases related to contractual commitments for minimum print quantities | 62.8 | 54.8 | 61.1 | |||||||||
2014 | 2013 | |||||||||||
Unredeemed credits issued in conjunction with the Company’s school-based book club | $ | 10.4 | $ | 9.5 | ||||||||
and book fair operations (included in other accrued expenses) | ||||||||||||
Schedule of accumulated other comprehensive income | ' | |||||||||||
2014 | 2013 | |||||||||||
Components of Accumulated other comprehensive income (loss): | ||||||||||||
Foreign Currency Translation | (16.6 | ) | (13.5 | ) | ||||||||
Pension Obligations (net of tax of $18.1 and $23.1) | (38.6 | ) | (51.9 | ) | ||||||||
Accumulated other comprehensive income (loss) | $ | (55.2 | ) | $ | (65.4 | ) |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||||||||
31-May-14 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||
Schedule of Fair Value Measurements | ' | |||||||||||||||||||||||
The following tables present non-financial assets that were measured and recorded at fair value on a non-recurring basis and the total impairment losses and additions recognized on those assets: | ||||||||||||||||||||||||
Net carrying | Fair value measured and recorded using | Impairment losses | ||||||||||||||||||||||
value as of | for fiscal year ended | |||||||||||||||||||||||
31-May-14 | Level 1 | Level 2 | Level 3 | May 31, 2014 | Additions due to acquisitions | |||||||||||||||||||
Investments | $ | — | $ | — | $ | — | $ | — | $ | 5.8 | $ | 1 | ||||||||||||
Property, plant and equipment, net | — | — | — | — | 7.6 | — | ||||||||||||||||||
Goodwill | — | — | — | — | 13.4 | — | ||||||||||||||||||
Prepublication assets | — | — | — | — | 5.7 | — | ||||||||||||||||||
Net carrying | Fair value measured and recorded using | Impairment losses | ||||||||||||||||||||||
value as of | for fiscal year ended | |||||||||||||||||||||||
31-May-13 | Level 1 | Level 2 | Level 3 | May 31, 2013 | Additions due to acquisitions | |||||||||||||||||||
Other intangible assets | $ | 0.3 | $ | — | $ | — | $ | 0.3 | $ | — | $ | 0.3 | ||||||||||||
Property, plant and equipment, net | — | — | — | — | 5.2 | — | ||||||||||||||||||
Prepublication assets | — | — | — | — | 2 | — | ||||||||||||||||||
Net carrying | Fair value measured and | Impairment losses | ||||||||||||||||||||||
value as of | recorded using | for fiscal year ended | ||||||||||||||||||||||
31-May-12 | Level 1 | Level 2 | Level 3 | May 31, 2012 | Additions due to acquisitions | |||||||||||||||||||
Goodwill | $ | 2.7 | $ | — | $ | — | $ | 2.7 | $ | — | $ | 2.7 | ||||||||||||
Other intangible assets impairment | 4.9 | — | — | 4.9 | 6.8 | — | ||||||||||||||||||
Other intangibles | 5.4 | — | — | 5.4 | — | 5.4 | ||||||||||||||||||
Production assets | 0.6 | — | — | 0.6 | 4 | — | ||||||||||||||||||
Prepublication assets | — | — | — | — | 0.8 | — | ||||||||||||||||||
Investments | — | — | — | — | 1.3 | — | ||||||||||||||||||
Description_of_the_Business_Ba3
Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
31-May-14 | 31-May-13 | 31-May-12 | |
tax_jurisdiction | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Number of Countries in which Entity Operates | 150 | ' | ' |
Restricted Cash (in Dollars) | $300,000 | $1,000,000 | ' |
Capitalized computer software, net (in Dollars) | 33,400,000 | 50,700,000 | ' |
Capitalized computer software, amortization expense (in Dollars) | 28,800,000 | 31,200,000 | 27,600,000 |
Payments to acquire building | 253,900,000 | 0 | 0 |
Prepublication costs (in excess of) | 1,000,000 | ' | ' |
Accrual for taxes other than income taxes (in Dollars) | ' | 19,700,000 | ' |
Number of tax jurisdictions | ' | ' | 2 |
Payments of taxes other than income taxes | ' | 15,300,000 | ' |
Settlement | 1,700,000 | ' | ' |
Deferred advertising costs (in Dollars) | 4,600,000 | 4,500,000 | ' |
Building [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciable life | '40 years | ' | ' |
Payments to acquire real estate | 255,700,000 | ' | ' |
Payments to acquire building | 253,900,000 | ' | ' |
Capitalized Software [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Impairment of capitalized software | $7,600,000 | ' | ' |
Capitalized Software [Member] | Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciable life | '3 years | ' | ' |
Capitalized Software [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciable life | '7 years | ' | ' |
Furniture and Fixtures [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciable life | '10 years | ' | ' |
Description_of_the_Business_Ba4
Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies (Details2) | 12 Months Ended |
31-May-14 | |
Finite-Lived Intangible Assets [Line Items] | ' |
Useful life of intangible assets | '7 years |
Customer Lists [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Useful life of intangible assets | '5 years |
Minimum [Member] | Intellectual Property [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Useful life of intangible assets | '5 years |
Maximum [Member] | Intellectual Property [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Useful life of intangible assets | '20 years |
Description_of_the_Business_Ba5
Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies (Details3) (USD $) | 12 Months Ended | ||
31-May-14 | 31-May-13 | 31-May-12 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' |
Estimated fair value of stock options granted (in Dollars) | $10.37 | $9.77 | $9.30 |
Assumptions: | ' | ' | ' |
Expected dividend yield (percent) | 1.70% | 1.60% | 1.40% |
Expected stock price volatility (percent) | 38.60% | 37.50% | 36.70% |
Risk-free interest rate (percent) | 2.20% | 0.90% | 1.60% |
Expected life of options (in years) | '6 years | '6 years | '7 years |
Acquisitions_Details
Acquisitions (Details) (USD $) | 12 Months Ended | 0 Months Ended | 0 Months Ended | ||||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 | Jan. 03, 2012 | Jan. 03, 2012 | Feb. 08, 2012 | Feb. 08, 2012 |
International Segment [Member] | International Segment [Member] | Classroom and Supplemental Materials Publishing [Member] | Classroom and Supplemental Materials Publishing [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Acquisition related payments | $1 | $0.30 | $9.50 | $3 | ' | ' | ' |
Goodwill | 178.7 | 178.7 | 178.5 | ' | 1.5 | ' | 1.4 |
Cash paid to acquire business | ' | ' | ' | ' | ' | 2 | ' |
Liabilities assumed | ' | ' | ' | ' | ' | ' | 4.8 |
Intangible assets acquired | ' | ' | ' | ' | ' | ' | $5.40 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 31-May-13 | 31-May-12 |
Discontinued Operations and Disposal Groups [Abstract] | ' | ' |
Fair value estimate additional charge | ' | $2.20 |
Proceeds from sale of assets | 5 | ' |
Loss on sale of equipment | $1.10 | ' |
Discontinued_Operations_Detail1
Discontinued Operations (Details2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Discontinued Operations and Disposal Groups [Abstract] | ' | ' | ' |
Revenues | $0 | $6.20 | $9.80 |
Gain (loss) on sale | 0 | -1.1 | 0 |
Earnings (loss) before income taxes | 0.2 | -7.2 | -7.2 |
Income tax benefit (provision) | -0.1 | 2.5 | 1.5 |
Earnings (loss) from discontinued operations, net of tax | $0.10 | ($4.70) | ($5.70) |
Discontinued_Operations_Detail2
Discontinued Operations (Details3) (USD $) | 31-May-14 | 31-May-13 |
In Millions, unless otherwise specified | ||
Discontinued Operations and Disposal Groups [Abstract] | ' | ' |
Accounts receivable, net | $0 | $0 |
Other assets | 0.4 | 0.4 |
Current assets of discontinued operations | 0.4 | 0.4 |
Accrued expenses and other current liabilities | 1.1 | 1.3 |
Current liabilities of discontinued operations | $1.10 | $1.30 |
Segment_Information_Details_Sc
Segment Information (Details) - Schedule of segment reporting information (USD $) | 12 Months Ended | ||||||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 | Nov. 30, 2013 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |||
Number of reportable segments | 5 | ' | ' | ' | |||
Revenues | $1,822.30 | $1,792.40 | $2,139.10 | ' | |||
Bad debts | 8.2 | 6.8 | 12.3 | ' | |||
Depreciation and amortization | 121.8 | [1] | 115.4 | [1] | 123.9 | [1] | ' |
Asset Impairments | 28 | ' | 7 | ' | |||
Segment operating income (loss) | 63.1 | 67.9 | 185.3 | ' | |||
Segment assets | 1,528.10 | 1,440.60 | 1,662.60 | ' | |||
Goodwill | 144.5 | 157.9 | 157.7 | ' | |||
Expenditures for long-lived assets including royalty advances | 373.7 | 153.9 | 145.9 | ' | |||
Long-lived assets | 828.2 | 689.7 | 684.3 | ' | |||
Children's Book Publishing and Distribution [Member] | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |||
Revenues | 873.5 | [2] | 846.9 | [2] | 1,111.30 | [2] | ' |
Bad debts | 2.6 | [2] | 1.8 | [2] | 6.4 | [2] | ' |
Depreciation and amortization | 31.9 | [1],[2] | 31.5 | [1],[2] | 33.1 | [1],[2] | ' |
Asset Impairments | 28 | [2] | ' | 0.5 | [2] | ' | |
Segment operating income (loss) | 22.8 | [2] | 24.5 | [2] | 152.2 | [2] | ' |
Segment assets | 371.3 | [2] | 407.5 | [2] | 543.5 | [2] | ' |
Goodwill | 40.9 | [2] | 54.3 | [2] | 54.3 | [2] | 66.9 |
Expenditures for long-lived assets including royalty advances | 43.4 | [2] | 52.3 | [2] | 44.4 | [2] | ' |
Long-lived assets | 135.3 | [2] | 165.3 | [2] | 167.5 | [2] | ' |
Educational Technology and Services [Member] | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |||
Revenues | 248.7 | 227.7 | 254.7 | ' | |||
Bad debts | 0.9 | 1.1 | 0.7 | ' | |||
Depreciation and amortization | 28 | [1] | 22.7 | [1] | 22.2 | [1] | ' |
Asset Impairments | 0 | ' | 0 | ' | |||
Segment operating income (loss) | 39.6 | 29.5 | 49.2 | ' | |||
Segment assets | 173.7 | 170.8 | 168.5 | ' | |||
Goodwill | 22.7 | 22.7 | 22.7 | ' | |||
Expenditures for long-lived assets including royalty advances | 30.7 | 40.3 | 26.2 | ' | |||
Long-lived assets | 119 | 116.5 | 101.1 | ' | |||
Classroom and Supplemental Materials Publishing [Member] | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |||
Revenues | 229.6 | 218 | 208.2 | ' | |||
Bad debts | 1.6 | 1.4 | 1.9 | ' | |||
Depreciation and amortization | 10.5 | [1] | 9.4 | [1] | 7.7 | [1] | ' |
Asset Impairments | 0 | ' | 0 | ' | |||
Segment operating income (loss) | 37.5 | 29.6 | 18.3 | ' | |||
Segment assets | 166.8 | 168.6 | 163.6 | ' | |||
Goodwill | 65.4 | 65.4 | 65.4 | ' | |||
Expenditures for long-lived assets including royalty advances | 10.2 | 10.9 | 17.9 | ' | |||
Long-lived assets | 90.1 | 91.4 | 90.3 | ' | |||
Media, Licensing and Advertising [Member] | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |||
Revenues | 56.2 | [2] | 58.7 | [2] | 75.3 | [2] | ' |
Bad debts | 0.1 | [2] | 0.1 | [2] | 0.1 | [2] | ' |
Depreciation and amortization | 5.3 | [1],[2] | 3 | [1],[2] | 12.8 | [1],[2] | ' |
Asset Impairments | 0 | [2] | ' | 0 | [2] | ' | |
Segment operating income (loss) | -0.7 | [2] | 4.7 | [2] | -4.9 | [2] | ' |
Segment assets | 30.7 | [2] | 26.9 | [2] | 38.1 | [2] | ' |
Goodwill | 5.4 | [2] | 5.4 | [2] | 5.4 | [2] | ' |
Expenditures for long-lived assets including royalty advances | 8.1 | [2] | 3.7 | [2] | 6.3 | [2] | ' |
Long-lived assets | 14.1 | [2] | 12 | [2] | 11.6 | [2] | ' |
Overhead [Member] | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |||
Revenues | 0 | [2],[3] | 0 | [2],[3] | 0 | [2],[3] | ' |
Bad debts | 0 | [2],[3] | 0 | [2],[3] | 0 | [2],[3] | ' |
Depreciation and amortization | 39 | [1],[2],[3] | 41.6 | [1],[2],[3] | 39 | [1],[2],[3] | ' |
Asset Impairments | 0 | [2],[3] | ' | 6.2 | [2],[3] | ' | |
Segment operating income (loss) | -66.9 | [2],[3] | -60.2 | [2],[3] | -87.1 | [2],[3] | ' |
Segment assets | 532.9 | [2],[3] | 402.1 | [2],[3] | 438.6 | [2],[3] | ' |
Goodwill | 0 | [2],[3] | 0 | [2],[3] | 0 | [2],[3] | ' |
Expenditures for long-lived assets including royalty advances | 269.6 | [2],[3] | 33.3 | [2],[3] | 37.9 | [2],[3] | ' |
Long-lived assets | 406.1 | [2],[3] | 236.5 | [2],[3] | 246.7 | [2],[3] | ' |
Total Domestic [Member] | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |||
Revenues | 1,408 | 1,351.30 | 1,649.50 | ' | |||
Bad debts | 5.2 | 4.4 | 9.1 | ' | |||
Depreciation and amortization | 114.7 | [1] | 108.2 | [1] | 114.8 | [1] | ' |
Asset Impairments | 28 | ' | 6.7 | ' | |||
Segment operating income (loss) | 32.3 | 28.1 | 127.7 | ' | |||
Segment assets | 1,275.40 | 1,175.90 | 1,352.30 | ' | |||
Goodwill | 134.4 | 147.8 | 147.8 | ' | |||
Expenditures for long-lived assets including royalty advances | 362 | 140.5 | 132.7 | ' | |||
Long-lived assets | 764.6 | 621.7 | 617.2 | ' | |||
International [Member] | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |||
Revenues | 414.3 | 441.1 | 489.6 | ' | |||
Bad debts | 3 | 2.4 | 3.2 | ' | |||
Depreciation and amortization | 7.1 | [1] | 7.2 | [1] | 9.1 | [1] | ' |
Asset Impairments | 0 | ' | 0.3 | ' | |||
Segment operating income (loss) | 30.8 | 39.8 | 57.6 | ' | |||
Segment assets | 252.7 | 264.7 | 310.3 | ' | |||
Goodwill | 10.1 | 10.1 | 9.9 | ' | |||
Expenditures for long-lived assets including royalty advances | 11.7 | 13.4 | 13.2 | ' | |||
Long-lived assets | $63.60 | $68 | $67.10 | ' | |||
[1] | Includes depreciation of property, plant and equipment and amortization of intangible assets and prepublication and production costs. | ||||||
[2] | As discussed in Note 3, bDiscontinued Operations,b the Company closed or sold several operations during the first quarter of fiscal 2012 and the fourth quarter of fiscal 2013. All of these businesses are classified as discontinued operations in the Companybs financial statements and, as such, are not reflected in this table. | ||||||
[3] | Overhead includes all domestic corporate amounts not allocated to segments, including expenses and costs related to the management of corporate assets. Unallocated assets are principally comprised of deferred income taxes and property, plant and equipment related to the Companybs headquarters in the metropolitan New York area, its fulfillment and distribution facilities located in Missouri and its facility located in Connecticut. Overhead also includes amounts previously allocated to the Media, Licensing and Advertising segment for the Companybs direct-to-home toy catalog business that was discontinued in the first quarter of fiscal 2012 and amounts previously allocated to the Childrenbs Book Publishing and Distribution segment for the computer club business that was discontinued in the fourth quarter of fiscal 2013. |
Debt_Details_Schedule_of_debt
Debt (Details) - Schedule of debt (USD $) | 31-May-14 | 31-May-13 |
Debt Instrument, Carrying Value [Abstract] | ' | ' |
Total debt | $135,800,000 | $2,000,000 |
Less lines of credit and current portion of long-term debt, Carrying Value | -15,800,000 | -2,000,000 |
Total long-term debt, Carrying Value | 120,000,000 | 0 |
Debt Instrument, Fair Value Disclosure [Abstract] | ' | ' |
Debt Long Term And Short Term Outstanding, Fair Value | 135,800,000 | 2,000,000 |
Less lines of credit and current portion of long-term debt, Fair Value | -15,800,000 | -2,000,000 |
Total long-term debt, Fair Value | 120,000,000 | 0 |
Revolving Credit Facility [Member] | ' | ' |
Debt Instrument, Carrying Value [Abstract] | ' | ' |
Revolving Loan (interest rate of 1.3%), Carrying Value | 120,000,000 | 0 |
Debt Instrument, Fair Value Disclosure [Abstract] | ' | ' |
Revolving Loan (interest rate of 1.3%), Fair Value | 120,000,000 | 0 |
Line of Credit [Member] | ' | ' |
Debt Instrument, Carrying Value [Abstract] | ' | ' |
Total debt | 15,800,000 | 2,000,000 |
Debt Instrument, Fair Value Disclosure [Abstract] | ' | ' |
Debt Long Term And Short Term Outstanding, Fair Value | $15,800,000 | $2,000,000 |
Debt_Details_Schedule_of_debt_
Debt (Details) - Schedule of debt (Parentheticals) | 31-May-14 | 31-May-13 | 31-May-12 |
Debt (Details) - Schedule of debt (Parentheticals) [Line Items] | ' | ' | ' |
Interest rate | 5.00% | 5.00% | 5.00% |
Line of Credit [Member] | ' | ' | ' |
Debt (Details) - Schedule of debt (Parentheticals) [Line Items] | ' | ' | ' |
Weighted average interest rate | 2.30% | 9.00% | ' |
Revolving Credit Facility [Member] | ' | ' | ' |
Debt (Details) - Schedule of debt (Parentheticals) [Line Items] | ' | ' | ' |
Interest rate | 1.30% | 0.00% | ' |
Debt_Details_Schedule_of_Matur
Debt (Details) - Schedule of Maturities of Long-term Debt (USD $) | 31-May-14 | 31-May-13 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
2015 | $15.80 | ' |
2016 | 0 | ' |
2017 | 0 | ' |
2018 | 120 | ' |
2019 | 0 | ' |
Thereafter | 0 | ' |
Total debt | $135.80 | $2 |
Debt_Details
Debt (Details) (USD $) | 31-May-14 | 31-May-13 | 31-May-12 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-14 | Feb. 28, 2014 | 31-May-13 | 31-May-14 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 |
Unsecured Debt [Member] | Unsecured Debt [Member] | Secured Debt [Member] | Loan Agreement [Member] | Loan Agreement [Member] | Loan Agreement [Member] | Standby Letter Of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Federal Funds Rate [Member] | Eurodollar [Member] | Eurodollar [Member] | Base Rate [Member] | Base Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | Notes Due 2013 [Member] | ||||
Secured Debt [Member] | Secured Debt [Member] | Loan Agreement [Member] | Unsecured Debt [Member] | Secured Debt [Member] | Loan Agreement [Member] | Loan Agreement [Member] | Loan Agreement [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | ||||||||||||||||
Loan Agreement [Member] | Loan Agreement [Member] | Loan Agreement [Member] | Loan Agreement [Member] | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Eurodollar Rate for a one month interest period plus 1% plus, in each case, an applicable spread ranging from 0.18% to 0.60% | ' | ' | ' | 'London interbank offered rate (LIBOR) plus an applicable spread ranging from 1.18% to 1.60% | ' | ' | ' |
Borrowing capacity | ' | ' | ' | $5,100,000 | ' | $34,600,000 | $425,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration date | ' | ' | ' | ' | ' | ' | 5-Dec-17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | 1.00% | 0.18% | 0.60% | ' | 1.18% | 1.60% | ' |
Spread on base rate advances | ' | ' | ' | ' | ' | ' | 0.18% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Spread on Eurodollar rate advances | ' | ' | ' | ' | ' | ' | 1.18% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Facility fee | ' | ' | ' | ' | ' | ' | 0.20% | ' | ' | ' | ' | ' | ' | ' | 0.20% | ' | ' | 0.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount outstanding | ' | ' | ' | 10,000,000 | 0 | ' | 120,000,000 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Standby letters of credit | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | 5,300,000 | 4,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Standby letters of credit canceled | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate | ' | ' | ' | 1.20% | ' | ' | ' | ' | ' | ' | ' | ' | 4.30% | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '365 days | '364 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings outstanding | $135,800,000 | $2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | $15,800,000 | $2,000,000 | $5,800,000 | $2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $175,000,000 |
Interest rate | 5.00% | 5.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Operating Leased Assets [Line Items] | ' | ' | ' |
Operating lease expense | $27.60 | $32.90 | $38.90 |
Capital lease amortization expense | 0.8 | 1.1 | 1.1 |
Open standby letters of credit | $5.30 | $6.60 | ' |
Minimum [Member] | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Operating lease period | '1 year | ' | ' |
Maximum [Member] | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Operating lease period | '40 years | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details) - Schedule for composition of capital leased assets (USD $) | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 |
In Millions, unless otherwise specified | Minimum [Member] | Maximum [Member] | Land [Member] | Land [Member] | Building [Member] | Building [Member] | Equipment [Member] | Equipment [Member] | ||
Capital Leased Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital lease period | ' | ' | '1 year | '40 years | ' | ' | ' | ' | ' | ' |
Capital leased assets, Gross | $0 | $40 | ' | ' | $0 | $0 | $0 | $39 | $0 | $1 |
Accumulated amortization | 0 | -13.4 | ' | ' | ' | ' | ' | ' | ' | ' |
Total | $0 | $26.60 | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_3
Commitments and Contingencies (Details) - Schedule for minimum future annual rental commitments (USD $) | 31-May-14 | 31-May-13 |
In Millions, unless otherwise specified | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' |
2015 | $32.10 | ' |
2016 | 25.7 | ' |
2017 | 19.2 | ' |
2018 | 14.5 | ' |
2019 | 8.1 | ' |
Thereafter | 14.1 | ' |
Total minimum lease payments | 113.7 | ' |
Less minimum sublease income to be received | 69.9 | ' |
Minimum lease payments, net of sublease income | 43.8 | ' |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' |
2015 | 0 | ' |
2016 | 0 | ' |
2017 | 0 | ' |
2018 | 0 | ' |
2019 | 0 | ' |
Thereafter | 0 | ' |
Total minimum lease payments | 0 | ' |
Less minimum sublease income to be received | 0 | ' |
Minimum lease payments, net of sublease income | 0 | ' |
Less amount representing interest | 0 | ' |
Present value of net minimum capital lease payments | 0 | ' |
Less current maturities of capital lease obligations | 0 | 0.2 |
Long-term capital lease obligations | $0 | $57.50 |
Commitments_and_Contingencies_4
Commitments and Contingencies (Details) - Schedule for aggregate minimum future contractual commitments (USD $) | 31-May-14 |
In Millions, unless otherwise specified | |
Royalty Advances [Abstract] | ' |
2015 | $10.40 |
2016 | 2.7 |
2017 | 0.9 |
2018 | 0.8 |
2019 | 0 |
Thereafter | 0 |
Total commitments | 14.8 |
MInimum Print Quantities [Abstract] | ' |
2015 | 47.6 |
2016 | 48.3 |
2017 | 44.8 |
2018 | 45.5 |
2019 | 46.3 |
Thereafter | 143.4 |
Total commitments | $375.90 |
Investments_Details
Investments (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 | 31-May-14 | Feb. 28, 2014 | 31-May-14 |
Software Development Business [Member] | Software Development Business [Member] | Children's Book Publishing and Distribution [Member] | ||||
Investments (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Investments | $18.40 | $19.60 | ' | ' | ' | ' |
Ownership percentage, equity method investment | ' | ' | ' | ' | 20.00% | 26.20% |
Equity method investments | 18.4 | 14.6 | ' | ' | 1 | 18.3 |
Impairment of equity method investment | ' | ' | ' | 1 | ' | ' |
Ownership percentage, cost-basis investment | ' | ' | ' | ' | ' | 15.00% |
Unrealized loss on investments | 4.8 | ' | ' | ' | ' | ' |
Dividends received | ' | ' | ' | ' | ' | 1 |
Income (loss) from equity method investments | $2.60 | $2.30 | $2.60 | ' | ' | ' |
Investments_Details_Schedule_o
Investments (Details) - Schedule of cost and equity method investments (USD $) | 31-May-14 | 31-May-13 |
In Millions, unless otherwise specified | ||
Cost method investments: | ' | ' |
Cost method investments | $0 | $5 |
Equity method investments: | ' | ' |
Equity method investments | 18.4 | 14.6 |
Total | 18.4 | 19.6 |
UK-based Member] | ' | ' |
Cost method investments: | ' | ' |
Cost method investments | 0 | 5 |
Equity method investments: | ' | ' |
Equity method investments | 18.3 | 14.6 |
Other [Member] | ' | ' |
Equity method investments: | ' | ' |
Equity method investments | $0.10 | $0 |
Goodwill_and_Other_Intangibles2
Goodwill and Other Intangibles (Details) (USD $) | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 | 31-May-14 | Nov. 30, 2013 | 31-May-13 | 31-May-12 | |||
Children's Book Publishing and Distribution [Member] | Children's Book Publishing and Distribution [Member] | Children's Book Publishing and Distribution [Member] | Children's Book Publishing and Distribution [Member] | |||||||
Goodwill and Other Intangibles (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | |||
Goodwill impairment | $13.40 | $0 | ' | $13.40 | ' | ' | ' | |||
Difference between fair value and carrying value | ' | ' | ' | ' | 13 | ' | ' | |||
Goodwill, net carrying value | 144.5 | 157.9 | 157.7 | 40.9 | [1] | 66.9 | 54.3 | [1] | 54.3 | [1] |
Discount rate | ' | ' | ' | 15.50% | ' | ' | ' | |||
Perpetual growth rate | ' | ' | ' | 3.00% | ' | ' | ' | |||
Amortization expense | $2.40 | $2.50 | $6.50 | ' | ' | ' | ' | |||
Useful life of intangible assets | '7 years | ' | ' | ' | ' | ' | ' | |||
[1] | As discussed in Note 3, bDiscontinued Operations,b the Company closed or sold several operations during the first quarter of fiscal 2012 and the fourth quarter of fiscal 2013. All of these businesses are classified as discontinued operations in the Companybs financial statements and, as such, are not reflected in this table. |
Goodwill_and_Other_Intangibles3
Goodwill and Other Intangibles (Details) - Schedule of activity in goodwill (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 |
Goodwill [Roll Forward] | ' | ' |
Gross beginning balance | $178.70 | $178.50 |
Accumulated impairment | -20.8 | -20.8 |
Beginning balance | 157.9 | 157.7 |
Goodwill impairment | -13.4 | 0 |
Foreign currency translation | 0 | 0 |
Other | 0 | 0.2 |
Gross ending balance | 178.7 | 178.7 |
Accumulated impairment | -34.2 | -20.8 |
Ending balance | $144.50 | $157.90 |
Goodwill_and_Other_Intangibles4
Goodwill and Other Intangibles (Details) - Schedule of other intangible assets subject to amortization (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization expense | ($2.40) | ($2.50) | ($6.50) |
Total other intangibles subject to amortization | 10 | 12.6 | ' |
Trademarks and other | 2.2 | 2 | ' |
Total other intangibles not subject to amortization | 2.2 | 2 | ' |
Total other intangibles | 12.2 | 14.6 | ' |
Customer Lists [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Begining balance | ' | 3.4 | 4.3 |
Additions due to acquisition | 0 | 0.1 | ' |
Amortization expense | -1 | -1 | ' |
Foreign currency translation | 0 | 0 | ' |
Total other intangibles subject to amortization | ' | 2.4 | 3.4 |
Accumulated amortization | 3.3 | 2.3 | ' |
Other Intangible Assets [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Begining balance | ' | 9.2 | 10.4 |
Additions due to acquisition | 0 | 0.2 | ' |
Amortization expense | -1.4 | -1.5 | ' |
Other | -0.2 | 0.1 | ' |
Total other intangibles subject to amortization | 7.6 | 9.2 | ' |
Accumulated amortization | $13.40 | $12 | ' |
Goodwill_and_Other_Intangibles5
Goodwill and Other Intangibles (Details) - Schedule of estimated amortization expense for intangibles (USD $) | 31-May-14 |
In Millions, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
2015 | $2.30 |
2016 | 2.2 |
2017 | 2.2 |
2018 | 0.5 |
2019 | $0.40 |
Taxes_Details
Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Feb. 28, 2014 | 31-May-14 | 31-May-13 | 31-May-12 | 31-May-11 |
Income Tax And Non Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Unrecognized tax settlement | $13.80 | ' | ' | ' | ' |
Undistributed earnings of foreign subsidiaries indefinitely reinvested | ' | 73.6 | ' | ' | ' |
Deferred income tax liabilities on undistributed foreign earnings | ' | 2 | ' | ' | ' |
Net deferred tax assets | ' | 85.1 | 94.1 | ' | ' |
Current deferred income taxes | ' | 81 | 79.2 | ' | ' |
Noncurrent deferred income taxes | ' | 4.1 | 14.9 | ' | ' |
Decrease in deferred tax valuation allowance | ' | 1.9 | 2.5 | ' | ' |
Foreign operating loss carryforwards | ' | 109.6 | ' | ' | ' |
Unrecognized tax benefits | ' | 14.4 | 35.5 | 38.7 | 30.8 |
Income tax penalties and interest accrued | ' | 1.1 | 6.5 | 7.1 | ' |
Unrecognized tax benefits that would impact effective tax rate | ' | 11.7 | 21.8 | 18.1 | ' |
Tax benefit from income tax penalties and interest expense | ' | 5.3 | 0.5 | -2.4 | ' |
Period increase (decrease) in unrecognized tax benefits | ' | ($21.10) | ($3.20) | ' | ' |
Taxes_Details_Schedule_of_earn
Taxes (Details) - Schedule of earnings from continuing operations before income taxes (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Taxes (Details) - Schedule of earnings from continuing operations before income taxes [Line Items] | ' | ' | ' |
Earnings (loss) from continuing operations before income taxes | $50.40 | $53.40 | $169.70 |
United States | ' | ' | ' |
Taxes (Details) - Schedule of earnings from continuing operations before income taxes [Line Items] | ' | ' | ' |
Earnings (loss) from continuing operations before income taxes | 43.5 | 34.6 | 145.4 |
Non-United States | ' | ' | ' |
Taxes (Details) - Schedule of earnings from continuing operations before income taxes [Line Items] | ' | ' | ' |
Earnings (loss) from continuing operations before income taxes | $6.90 | $18.80 | $24.30 |
Taxes_Details_Schedule_of_prov
Taxes (Details) - Schedule of provision for income taxes (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Federal | ' | ' | ' |
Current | $6.50 | $4.50 | $49.10 |
Deferred | -8.2 | 2.4 | -8.2 |
Federal Income Tax Expense (Benefit), Continuing Operations | -1.7 | 6.9 | 40.9 |
State and local | ' | ' | ' |
Current | 6.8 | 0.5 | 12 |
Deferred | -2.6 | 2.2 | -0.7 |
State and Local Income Tax Expense (Benefit), Continuing Operations | 4.2 | 2.7 | 11.3 |
International | ' | ' | ' |
Current | 5.8 | 7.8 | 12.8 |
Deferred | -2.2 | 0.2 | -3.4 |
Foreign Income Tax Expense (Benefit), Continuing Operations | 3.6 | 8 | 9.4 |
Total | ' | ' | ' |
Current | 19.1 | 12.8 | 73.9 |
Deferred | -13 | 4.8 | -12.3 |
Total provision for income taxes (in Dollars) | $6.10 | $17.60 | $61.60 |
Taxes_Details_Schedule_of_effe
Taxes (Details) - Schedule of effective income tax rate reconciliation (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ' | ' | ' |
Computed federal statutory provision | 35.00% | 35.00% | 35.00% |
State income tax provision, net of federal income tax benefit | 3.60% | 3.30% | 4.30% |
Difference in effective tax rates on earnings of foreign subsidiaries | 3.70% | 0.30% | 0.20% |
Charitable contributions | -1.10% | -4.40% | -0.70% |
Tax credits | -0.30% | -0.40% | -0.10% |
Valuation allowances | 0.70% | 2.40% | -1.40% |
Uncertain Positions | -27.10% | 0.00% | 0.00% |
Other - net | -2.40% | -3.20% | -1.00% |
Effective tax rates | 12.10% | 33.00% | 36.30% |
Total provision for income taxes | $6.10 | $17.60 | $61.60 |
Taxes_Details_Schedule_for_com
Taxes (Details) - Schedule for components for deferred income taxes (USD $) | 31-May-14 | 31-May-13 |
In Millions, unless otherwise specified | ||
Deferred tax assets | ' | ' |
Tax uniform capitalization | $26.60 | $25.80 |
Inventory reserves | 29.5 | 29.2 |
Allowance for doubtful accounts | 4.9 | 5.4 |
Other reserves | 26.4 | 26.3 |
Post-retirement, post-employment and pension obligations | 15.5 | 12.6 |
Tax carryforwards | 33.4 | 47.8 |
Lease accounting | -0.3 | 11.7 |
Other - net | 20.4 | 32.7 |
Gross deferred tax assets | 156.4 | 191.5 |
Valuation allowance | -30 | -31.9 |
Total deferred tax assets | 126.4 | 159.6 |
Deferred tax liabilities | ' | ' |
Prepaid expenses | -1 | -0.5 |
Depreciation and amortization | -40.3 | -65 |
Total deferred tax liability | -41.3 | -65.5 |
Total net deferred tax assets | $85.10 | $94.10 |
Taxes_Details_Schedule_of_unre
Taxes (Details) - Schedule of unrecognized tax benefits (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' |
Gross unrecognized benefits, Beginning of period | $35.50 | $38.70 | $30.80 |
Decreases related to prior year tax positions | -20.4 | -7.2 | -0.8 |
Increase related to prior year tax positions | 2.8 | 3.5 | 9.5 |
Increases related to current year tax positions | 2.6 | 1 | 1.7 |
Settlements during the period | -1.8 | -0.5 | -2.4 |
Lapse of statute of limitation | -4.3 | 0 | -0.1 |
Gross unrecognized benefits, End of period | $14.40 | $35.50 | $38.70 |
Capital_Stock_and_StockBased_A2
Capital Stock and Stock-Based Awards (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 49 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||
31-May-14 | 31-May-13 | Sep. 30, 2013 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | Sep. 30, 2011 | 31-May-14 | Sep. 30, 2007 | Sep. 30, 2013 | 31-May-14 | Sep. 30, 2013 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-13 | 31-May-12 | 31-May-14 | |
Amended 2007 Directors Plan [Member] | 1995 Plan [Member] | 2001 Plan [Member] | Plan 2011 [Member] | 1997 Directorsb Plan [Member] | 2007 Directorsb Plan [Member] | 2007 Directorsb Plan [Member] | 2007 Directorsb Plan [Member] | Employee Stock Option [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Class A Stock Options [Member] | Employee Stock Purchase Plan [Member] | Management Stock Purchase Plan [Member] | Management Stock Purchase Plan [Member] | Management Stock Purchase Plan [Member] | Stock Units And Restricted Stock Units [Member] | |||
Amended 2007 Directors Plan [Member] | Amended 2007 Directors Plan [Member] | ||||||||||||||||||
Capital Stock and Stock-Based Awards (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock issued | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding (Shares) | 4,355,367 | 4,185,480 | ' | 161,500 | 1,135,360 | 1,300,640 | 96,000 | ' | 162,867 | ' | ' | ' | ' | 1,499,000 | ' | ' | ' | ' | ' |
Options granted (Shares) | 778,434 | ' | 24,714 | ' | ' | 753,720 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price of options granted (in Dollars per share) | $30.12 | ' | $30.56 | ' | ' | $30.11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock Remaining Authorized Under EmployeeS tock Purchase Plan | ' | ' | ' | ' | ' | 464,873 | ' | ' | 274,391 | ' | ' | ' | ' | 0 | 161,910 | 331,453 | ' | ' | ' |
Options granted per grantee | ' | ' | ' | ' | ' | ' | 6,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-qualified stock options outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock outstanding | ' | ' | 12,366 | ' | ' | ' | ' | 1,200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non qualified stock options to purchase (in Dollars) | ' | ' | $70,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non qualified stock options to purchase, Portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | 60.00% | ' | ' | ' | ' | ' | ' |
Stock option compensation cost not yet recognized | 3,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | 100,000 | ' | ' | ' |
Future period of stock option expense recognition | '2 years 3 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 10 months 24 days | ' | ' | ' | '1 year 2 months 24 days | ' | ' | ' |
Common stock issued from conversion of RSUs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 121,860 | ' | ' | ' | ' | ' | ' | ' |
Deferred rate for annual cash bonus payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' |
Quarterly basis discount rate of common stock on closing price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | 25.00% | ' | ' | ' |
Fair value of shares vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,400,000 | $6,000,000 | $5,000,000 |
Capital_Stock_and_StockBased_A3
Capital Stock and Stock-Based Awards (Details) - Schedule of capital stock | 31-May-14 | 31-May-13 |
Capital Stock and Stock-Based Awards (Details) - Schedule of capital stock [Line Items] | ' | ' |
Authorized | 70,000,000 | 70,000,000 |
Authorized | 2,000,000 | 2,000,000 |
Outstanding | 30,105,479 | 29,795,911 |
Common Class A [Member] | ' | ' |
Capital Stock and Stock-Based Awards (Details) - Schedule of capital stock [Line Items] | ' | ' |
Authorized | 4,000,000 | ' |
Reserved for Issuance | 1,499,000 | ' |
Outstanding | 1,656,200 | ' |
Common Stock [Member] | ' | ' |
Capital Stock and Stock-Based Awards (Details) - Schedule of capital stock [Line Items] | ' | ' |
Authorized | 70,000,000 | ' |
Reserved for Issuance | 7,245,021 | ' |
Outstanding | 30,605,978 | ' |
Preferred Stock [Member] | ' | ' |
Capital Stock and Stock-Based Awards (Details) - Schedule of capital stock [Line Items] | ' | ' |
Authorized | 2,000,000 | ' |
Reserved for Issuance | 0 | ' |
Outstanding | 0 | ' |
Capital_Stock_and_StockBased_A4
Capital Stock and Stock-Based Awards (Details) - Schedule of Intrinsic value of stock options exercised, pretax stock-based compensation cost and related tax benefits (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Total intrinsic value of stock options exercised | $4.60 | $2.30 | $5 |
Stock-based compensation cost (pretax) | 9.3 | 6.3 | 12.2 |
Tax benefits related to stock-based compensation cost | $1.70 | $0.80 | $1.80 |
Weighted average grant date fair value per option | $10.37 | $9.77 | $9.30 |
Capital_Stock_and_StockBased_A5
Capital Stock and Stock-Based Awards (Details) - Schedule of stock option activity for the Class A Stock and Common Stock plans (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | 31-May-14 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Outstanding (shares) at May 31, 2013 | 4,185,480 |
Granted (Shares) | 778,434 |
Exercised (Shares) | -506,380 |
Expired (Shares) | -41,000 |
Cancellations and forfeitures (Shares) | -61,167 |
Outstanding (Shares) at May 31, 2014 | 4,355,367 |
Exercisable (Shares) at May 31, 2014 | 3,156,844 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ' |
Outstanding at May 31, 2012 (in Dollars per share) | $29.49 |
Granted (in Dollars per share) | $30.12 |
Exercised (in Dollars per share) | $23.94 |
Expired (in Dollars per share) | $31.43 |
Cancellations and forfeitures (in Dollars per share) | $28.82 |
Outstanding at May 31, 2013 (in Dollars per share) | $30.23 |
Weighted Average Exercise Price, Exercisable at May 31, 2014 (in Dollars per share) | $30.70 |
Average Remaining Contractual Term (in years), Outstanding at May 31, 2014 | '4 years 9 months 18 days |
Average Remaining Contractual Term (in years), Exercisable at May 31, 2014 | '3 years 3 months 18 days |
Aggregate Intrinsic Value, Outstanding at May 31, 2014 (in Dollars) | $12.30 |
Aggregate Intrinsic Value, Exercisable at May 31, 2014 (in Dollars) | $8.80 |
Capital_Stock_and_StockBased_A6
Capital Stock and Stock-Based Awards (Details) - Schedule of RSU activity (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended | ||
31-May-14 | 31-May-13 | 31-May-12 | |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Granted (Shares) | 67,670 | 125,584 | 205,620 |
Weighted average grant date price per unit (in Dollars per share) | $30.34 | $23.05 | $27.92 |
Capital_Stock_and_StockBased_A7
Capital Stock and Stock-Based Awards (Details) - Schedule of restricted stock units under the management stock purchase plan (Management Stock Purchase Plan [Member], USD $) | 12 Months Ended | |
31-May-14 | 31-May-13 | |
Management Stock Purchase Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Granted (Shares) | 827 | 87,317 |
Purchase price per unit (in Dollars per share) | $21.15 | $19.73 |
Capital_Stock_and_StockBased_A8
Capital Stock and Stock-Based Awards (Details) - Schedule of Stock Unit and Restricted Stock Unit activity (Stock Units And Restricted Stock Units [Member], USD $) | 12 Months Ended |
31-May-14 | |
Stock Units And Restricted Stock Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' |
Nonvested (Shares) as of May 31, 2013 | 559,403 |
Granted (Shares) | 68,497 |
Vested (Shares) | -295,572 |
Forfeited (Shares) | -9,834 |
Nonvested (Shares) as of May 31, 2014 | 322,494 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ' |
Nonvested as of May 31, 2013 (in Dollars per share) | $29.98 |
Granted (in Dollars per share) | $30.07 |
Vested (in Dollars per share) | $16.84 |
Forfeited (in Dollars per share) | $28.90 |
Nonvested as of May 31, 2014 (in Dollars per share) | $21.33 |
Capital_Stock_and_StockBased_A9
Capital Stock and Stock-Based Awards (Details) - Schedule of employee stock purchase plan activity (Employee Stock Purchase Plan [Member], USD $) | 12 Months Ended | |
31-May-14 | 31-May-13 | |
Employee Stock Purchase Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Shares issued | 57,835 | 68,228 |
Weighted average purchase price per share (in Dollars per share) | $26.92 | $24.78 |
Treasury_Stock_Details_Schedul
Treasury Stock (Details) - Schedule of repurchase of common stock (USD $) | 1 Months Ended | 12 Months Ended | 44 Months Ended | ||||
Sep. 30, 2010 | 31-May-14 | 31-May-13 | 31-May-12 | Sep. 30, 2010 | 31-May-14 | ||
Stockholders' Equity Attributable to Parent [Abstract] | ' | ' | ' | ' | ' | ' | |
Authorized stock repurchase amount | $44,000,000 | [1] | ' | ' | ' | $200,000,000 | ' |
Amount of stock repurchased in period | ' | 6,200,000 | 11,800,000 | 13,100,000 | ' | 30,600,000 | |
Remaining authorized repurchase amount | ' | 13,400,000 | ' | ' | ' | ' | |
Shares of stock repurchased (in shares) | ' | 200,000 | ' | ' | 5,199,699 | ' | |
Average cost of stock repurchased (in Dollars per share) | ' | $28.65 | ' | ' | $30 | ' | |
Total cost of treasury stock acquired | ' | ' | ' | ' | $156,000,000 | ' | |
[1] | Represents the remainder of a $200.0 authorization after giving effect to the purchase of 5,199,699 shares at $30.00 per share pursuant to a large share repurchase in the form of a modified Dutch auction tender offer that was completed by the Company on November 3, 2010 for a total cost of $156.0, excluding related fees and expenses. |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Employee Benefit Plans (Details) [Line Items] | ' | ' | ' |
Unrecognized prior service credit | $0.30 | ' | ' |
Percentage of federal subsidy to sponsors of retiree health care benefit plans | 28.00% | ' | ' |
Cumulative reduction of its accumulated post-retirement benefit obligation | 3.1 | 3.1 | 2.9 |
Expected long-term return on plan assets | 7.50% | ' | ' |
Settlement | 1.7 | ' | ' |
Defined benefit plans tax expense recognized in AOCI | 5 | -8.4 | ' |
Estimated employer contributions in 2015 | 1.4 | ' | ' |
Employer contributions to defined contribution plan | 7.5 | 8 | 7.4 |
Annuities [Member] | Level 3 [Member] | ' | ' | ' |
Employee Benefit Plans (Details) [Line Items] | ' | ' | ' |
Fair value of annuities | 6.2 | 6.1 | ' |
Pension Plans [Member] | ' | ' | ' |
Employee Benefit Plans (Details) [Line Items] | ' | ' | ' |
Expected long-term return on plan assets | 7.50% | 7.30% | 7.70% |
Settlement | 6.4 | 0 | ' |
Pension Plans [Member] | Estimated Net Loss [Member] | ' | ' | ' |
Employee Benefit Plans (Details) [Line Items] | ' | ' | ' |
Net loss amortized from AOCI | 1.4 | ' | ' |
Other Postretirement Benefits [Member] | ' | ' | ' |
Employee Benefit Plans (Details) [Line Items] | ' | ' | ' |
Expected long-term return on plan assets | 0.00% | 0.00% | 0.00% |
Settlement | 0 | 0 | ' |
Other Postretirement Benefits [Member] | Estimated Net Loss [Member] | ' | ' | ' |
Employee Benefit Plans (Details) [Line Items] | ' | ' | ' |
Net loss amortized from AOCI | 1.6 | ' | ' |
Other Postretirement Benefits [Member] | Prior Service Credit [Member] | ' | ' | ' |
Employee Benefit Plans (Details) [Line Items] | ' | ' | ' |
Net loss amortized from AOCI | $0.20 | ' | ' |
Employee_Benefit_Plans_Details1
Employee Benefit Plans (Details) - Summary of weighted average actuarial assumptions utilized to benefit obligations | 12 Months Ended | ||
31-May-14 | 31-May-13 | 31-May-12 | |
Weighted average assumptions used to determine net periodic benefit cost: | ' | ' | ' |
Expected long-term return on plan assets | 7.50% | ' | ' |
Pension Plans [Member] | ' | ' | ' |
Weighted average assumptions used to determine benefit obligations: | ' | ' | ' |
Discount rate | 4.10% | 4.00% | 4.00% |
Rate of compensation increase | 4.20% | 4.40% | 3.30% |
Weighted average assumptions used to determine net periodic benefit cost: | ' | ' | ' |
Discount rate | 4.00% | 4.00% | 5.10% |
Expected long-term return on plan assets | 7.50% | 7.30% | 7.70% |
Rate of compensation increase | 4.40% | 3.30% | 4.30% |
Other Postretirement Benefits [Member] | ' | ' | ' |
Weighted average assumptions used to determine benefit obligations: | ' | ' | ' |
Discount rate | 4.00% | 3.90% | 3.90% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Weighted average assumptions used to determine net periodic benefit cost: | ' | ' | ' |
Discount rate | 3.90% | 3.90% | 5.00% |
Expected long-term return on plan assets | 0.00% | 0.00% | 0.00% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Employee_Benefit_Plans_Details2
Employee Benefit Plans (Details) - Schedule of change in benefit obligations (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Change in benefit obligation: | ' | ' | ' |
Settlement | ($1.70) | ' | ' |
Pension Plans [Member] | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation at beginning of year | 185.6 | 182.2 | ' |
Service cost | 0 | 0 | 0 |
Interest cost | 7.2 | 6.9 | 8.4 |
Plan participantsb contributions | 0 | 0 | ' |
Actuarial losses (gains) | -2.5 | 7.4 | ' |
Foreign currency translation | 3.7 | -0.8 | ' |
Settlement | -6.4 | 0 | ' |
Benefits paid, including expenses | -7.1 | -10.1 | ' |
Benefit obligation at end of year | 180.5 | 185.6 | 182.2 |
Other Postretirement Benefits [Member] | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation at beginning of year | 36.2 | 39.6 | ' |
Service cost | 0 | 0 | 0 |
Interest cost | 1.3 | 1.4 | 1.7 |
Plan participantsb contributions | 0.4 | 0.4 | ' |
Actuarial losses (gains) | -1.9 | -2.8 | ' |
Foreign currency translation | 0 | 0 | ' |
Settlement | 0 | 0 | ' |
Benefits paid, including expenses | -2.6 | -2.4 | ' |
Benefit obligation at end of year | $33.40 | $36.20 | $39.60 |
Employee_Benefit_Plans_Details3
Employee Benefit Plans (Details) - Schedule of change in fair value of plan assets (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 |
Change in plan assets: | ' | ' |
Fair value of plan assets at end of year | $188.60 | $173.80 |
Other Postretirement Benefits [Member] | ' | ' |
Change in plan assets: | ' | ' |
Fair value of plan assets at beginning of year | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Employer contributions | 2.2 | 2 |
Settlement | 0 | 0 |
Benefits paid, including expenses | -2.6 | -2.4 |
Plan participantsb contributions | 0.4 | 0.4 |
Foreign currency translation | 0 | 0 |
Fair value of plan assets at end of year | 0 | 0 |
Pension Plans [Member] | ' | ' |
Change in plan assets: | ' | ' |
Fair value of plan assets at beginning of year | 173.8 | 145.8 |
Actual return on plan assets | 21.1 | 29.9 |
Employer contributions | 4.6 | 8.8 |
Settlement | -6.4 | 0 |
Benefits paid, including expenses | -7.1 | -10.1 |
Plan participantsb contributions | 0 | 0 |
Foreign currency translation | 2.6 | -0.6 |
Fair value of plan assets at end of year | $188.60 | $173.80 |
Employee_Benefit_Plans_Details4
Employee Benefit Plans (Details) - Schedule Of Amounts Recognized In Balance Sheet (USD $) | 31-May-14 | 31-May-13 |
In Millions, unless otherwise specified | ||
Pension Plans [Member] | ' | ' |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | ' | ' |
Non-current assets | $19.40 | $0 |
Current liabilities | 0 | 0 |
Non-current liabilities | -11.4 | -11.8 |
Net funded balance | 8 | -11.8 |
Other Postretirement Benefits [Member] | ' | ' |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | ' | ' |
Non-current assets | 0 | 0 |
Current liabilities | -2.6 | -2.7 |
Non-current liabilities | -30.8 | -33.5 |
Net funded balance | ($33.40) | ($36.20) |
Employee_Benefit_Plans_Details5
Employee Benefit Plans (Details) - Schedule of recognized in accumulated other comprehensive loss (USD $) | 31-May-14 | 31-May-13 |
In Millions, unless otherwise specified | ||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax [Abstract] | ' | ' |
Net actuarial gain (loss) | ($56.90) | ($75.50) |
Net prior service credit | 0.3 | 0.5 |
Net amount recognized in Accumulated other comprehensive income (loss) | -56.6 | -75 |
Other Postretirement Benefits [Member] | ' | ' |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax [Abstract] | ' | ' |
Net actuarial gain (loss) | -9.3 | -13.4 |
Net prior service credit | 0.3 | 0.5 |
Net amount recognized in Accumulated other comprehensive income (loss) | -9 | -12.9 |
Pension Plans [Member] | ' | ' |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax [Abstract] | ' | ' |
Net actuarial gain (loss) | -47.6 | -62.1 |
Net prior service credit | 0 | 0 |
Net amount recognized in Accumulated other comprehensive income (loss) | ($47.60) | ($62.10) |
Employee_Benefit_Plans_Details6
Employee Benefit Plans (Details) - Schedule of accumulated benefit obligation in excess of plan assets (USD $) | 31-May-14 | 31-May-13 |
In Millions, unless otherwise specified | ||
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Projected benefit obligations | $180.50 | $185.60 |
Accumulated benefit obligations | 179.5 | 184.6 |
Fair value of plan assets | $188.60 | $173.80 |
Employee_Benefit_Plans_Details7
Employee Benefit Plans (Details) - Schedule of net periodic costs (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Pension Plans [Member] | ' | ' | ' |
Components of net periodic (benefit) cost: | ' | ' | ' |
Service cost | $0 | $0 | $0 |
Interest cost | 7.2 | 6.9 | 8.4 |
Expected return on assets | -12.7 | -10.5 | -10.8 |
Net amortization and deferrals | 0 | 0 | 0 |
Lump sum settlement charge | 1.7 | 0 | 0 |
Recognized net actuarial loss | 1.8 | 2.2 | 1.4 |
Net periodic (benefit) cost | -2 | -1.4 | -1 |
Other Postretirement Benefits [Member] | ' | ' | ' |
Components of net periodic (benefit) cost: | ' | ' | ' |
Service cost | 0 | 0 | 0 |
Interest cost | 1.3 | 1.4 | 1.7 |
Expected return on assets | 0 | 0 | 0 |
Net amortization and deferrals | -0.2 | -0.4 | -0.6 |
Lump sum settlement charge | 0 | 0 | 0 |
Recognized net actuarial loss | 2.2 | 3 | 3.8 |
Net periodic (benefit) cost | $3.30 | $4 | $4.90 |
Employee_Benefit_Plans_Details8
Employee Benefit Plans (Details) - Schedule of total weighted average asset allocations | 31-May-14 | 31-May-13 |
Defined Benefit Plan, Information about Plan Assets [Abstract] | ' | ' |
Weighted average asset allocations | 100.00% | 100.00% |
Equity Securities [Member] | ' | ' |
Defined Benefit Plan, Information about Plan Assets [Abstract] | ' | ' |
Weighted average asset allocations | 33.00% | 69.50% |
Debt Securities [Member] | ' | ' |
Defined Benefit Plan, Information about Plan Assets [Abstract] | ' | ' |
Weighted average asset allocations | 58.80% | 24.00% |
Real Estate [Member] | ' | ' |
Defined Benefit Plan, Information about Plan Assets [Abstract] | ' | ' |
Weighted average asset allocations | 1.10% | 1.00% |
Other Securities [Member] | ' | ' |
Defined Benefit Plan, Information about Plan Assets [Abstract] | ' | ' |
Weighted average asset allocations | 7.10% | 5.50% |
Employee_Benefit_Plans_Details9
Employee Benefit Plans (Details) - Schedule of targeted weighted average asset allocations | 12 Months Ended |
31-May-14 | |
US Pension Plan [Member] | ' |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ' |
Targeted asset allocation | 100.00% |
US Pension Plan [Member] | Equity Securities [Member] | ' |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ' |
Targeted asset allocation | 30.00% |
US Pension Plan [Member] | Debt and cash equivalent [Member] | ' |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ' |
Targeted asset allocation | 70.00% |
US Pension Plan [Member] | Real estate and other [Member] | ' |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ' |
Targeted asset allocation | 0.00% |
UK Pension Plan [Member] | ' |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ' |
Targeted asset allocation | 100.00% |
UK Pension Plan [Member] | Equity Securities [Member] | ' |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ' |
Targeted asset allocation | 40.00% |
UK Pension Plan [Member] | Debt and cash equivalent [Member] | ' |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ' |
Targeted asset allocation | 30.00% |
UK Pension Plan [Member] | Real estate and other [Member] | ' |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | ' |
Targeted asset allocation | 30.00% |
Recovered_Sheet1
Employee Benefit Plans (Details) - Schedule for measurement of benefit plan assets at fair value (USD $) | 31-May-14 | 31-May-13 | ||
In Millions, unless otherwise specified | ||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | $188.60 | $173.80 | ||
Cash and cash equivalents [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 7.1 | 3.5 | ||
Equity securities, U.S. [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 141.1 | [1] | 94 | [1] |
Equity securities, International [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 22.4 | [2] | 26.7 | [2] |
Equity securities, Fixed Income [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 9.7 | [3] | 41.8 | [3] |
Annuities [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 6.2 | 6.1 | ||
Real Estate [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 2.1 | [4] | 1.7 | [4] |
Level 1 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 57.2 | 148.2 | ||
Level 1 [Member] | Cash and cash equivalents [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 7.1 | 3.5 | ||
Level 1 [Member] | Equity securities, U.S. [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 39.8 | [1] | 94 | [1] |
Level 1 [Member] | Equity securities, International [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 10.3 | [2] | 16.3 | [2] |
Level 1 [Member] | Equity securities, Fixed Income [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 0 | [3] | 34.4 | [3] |
Level 1 [Member] | Annuities [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 0 | 0 | ||
Level 1 [Member] | Real Estate [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 0 | [4] | 0 | [4] |
Level 2 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 125.2 | 19.5 | ||
Level 2 [Member] | Cash and cash equivalents [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 0 | 0 | ||
Level 2 [Member] | Equity securities, U.S. [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 101.3 | [1] | 0 | [1] |
Level 2 [Member] | Equity securities, International [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 12.1 | [2] | 10.4 | [2] |
Level 2 [Member] | Equity securities, Fixed Income [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 9.7 | [3] | 7.4 | [3] |
Level 2 [Member] | Annuities [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 0 | 0 | ||
Level 2 [Member] | Real Estate [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 2.1 | [4] | 1.7 | [4] |
Level 3 [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 6.2 | 6.1 | ||
Level 3 [Member] | Cash and cash equivalents [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 0 | 0 | ||
Level 3 [Member] | Equity securities, U.S. [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 0 | [1] | 0 | [1] |
Level 3 [Member] | Equity securities, International [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 0 | [2] | 0 | [2] |
Level 3 [Member] | Equity securities, Fixed Income [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 0 | [3] | 0 | [3] |
Level 3 [Member] | Annuities [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | 6.2 | 6.1 | ||
Level 3 [Member] | Real Estate [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan fair value of plan assets | $0 | [4] | $0 | [4] |
[1] | Funds which invest in a diversified portfolio of publicly traded U.S. common stocks of large-cap, medium-cap and small-cap companies. There are no restrictions on these investments. | |||
[2] | Funds which invest in a diversified portfolio of publicly traded common stock of non-U.S. companies, primarily in Europe and Asia. There are no restrictions on these investments. | |||
[3] | Funds which invest in a diversified portfolio of publicly traded government bonds, corporate bonds and mortgage-backed securities. There are no restrictions on these investments. | |||
[4] | Represents assets of a non-U.S. entity plan invested in a fund whose underlying investments are comprised of properties. The fund has publicly available quoted market prices and there are no restrictions on these investments. |
Recovered_Sheet2
Employee Benefit Plans (Details) - Schedule of changes in fair value level 3 assets (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Beginning Balance | $6.10 | $5.80 |
Actual Return on Plan Assets: | ' | ' |
Relating to assets still held at year-end | -0.1 | 0.7 |
Relating to assets sold during the year | 0 | 0 |
Purchases, sales and settlements, net | -0.3 | -0.3 |
Transfers in and/or out of Level 3 | 0 | 0 |
Foreign currency translation | 0.5 | -0.1 |
Ending Balance | $6.20 | $6.10 |
Recovered_Sheet3
Employee Benefit Plans (Details) - Schedule of expected future benefit payments (USD $) | 31-May-14 |
In Millions, unless otherwise specified | |
Pension Plans [Member] | ' |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ' |
2015 | $15.50 |
2016 | 11.8 |
2017 | 11.1 |
2018 | 10.8 |
2019 | 11 |
2020-2024 | 50.7 |
Other Postretirement Benefits [Member] | Benefit Payments [Member] | ' |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ' |
2015 | 2.9 |
2016 | 2.8 |
2017 | 2.8 |
2018 | 2.7 |
2019 | 2.6 |
2020-2024 | 12.5 |
Other Postretirement Benefits [Member] | Medicare Subsidy Receipts [Member] | ' |
Medicare Subsidy Receipts | ' |
2015 | 0.3 |
2016 | 0.3 |
2017 | 0.3 |
2018 | 0.3 |
2019 | 0.3 |
2020-2024 | $1.60 |
Recovered_Sheet4
Employee Benefit Plans (Details) - Assumed health care cost trend rates | 12 Months Ended | |
31-May-14 | 31-May-13 | |
Assumed health care cost trend rates [Abstract] | ' | ' |
Health care cost trend rate assumed for the next fiscal year | 7.00% | 7.50% |
Rate to which the cost trend is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | '2021 | '2021 |
Recovered_Sheet5
Employee Benefit Plans (Details) - Schedule of effect of one percentage point change in assumed health care cost trend rates (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 |
Schedule of effect of one percentage point change in assumed health care cost trend rates [Abstract] | ' | ' |
Total service and interest cost - 1% increase | $0.10 | $0.20 |
Total service and interest cost - 1% decrease | -0.1 | -0.1 |
Post-retirement benefit obligation - 1% increase | 3.6 | 4 |
Post-retirement benefit obligation - 1% decrease | ($3.10) | ($3.40) |
Accrued_Severance_Details_Sche
Accrued Severance (Details) - Schedule of accrued severance cost associated with cost reduction measures (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Severance | $11.30 | $13.40 | $14.90 |
Severance [Member] | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Beginning balance | 3.3 | 2.7 | ' |
Accruals | 11.3 | 13.4 | ' |
Payments | -13.4 | -12.8 | ' |
Ending balance | 1.2 | 3.3 | ' |
Severance | $10.80 | $9.60 | ' |
Earnings_Loss_Per_Share_Detail
Earnings (Loss) Per Share (Details) - Schedule of Earnings Per Share, Basic and Diluted (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Earnings Per Share [Abstract] | ' | ' | ' |
Earnings (loss) from continuing operations attributable to Class A and Common Shares | $44.20 | $35.70 | $107.60 |
Earnings (loss) from discontinued operations attributable to Class A and Common Shares, net of tax | 0.1 | -4.7 | -5.7 |
Net income (loss) attributable to Class A and Common Shares | $44.30 | $31 | $101.90 |
Weighted average Shares of Class A Stock and Common Stock outstanding for basic earnings (loss) per share (in millions) | 32 | 31.8 | 31.2 |
Dilutive effect of Class A Stock and Common Stock potentially issuable pursuant to stock-based compensation plans (in millions) | 0.5 | 0.6 | 0.5 |
Adjusted weighted average Shares of Class A Stock and Common Stock outstanding for diluted earnings (loss) per share (in millions) | 32.5 | 32.4 | 31.7 |
Basic: | ' | ' | ' |
Earnings (loss) from continuing operations (in Dollars per share) | $1.38 | $1.12 | $3.45 |
Earnings (loss) from discontinued operations (in Dollars per share) | $0.01 | ($0.15) | ($0.18) |
Net income (loss) (in Dollars per share) | $1.39 | $0.97 | $3.27 |
Diluted: | ' | ' | ' |
Earnings (loss) from continuing operations (in Dollars per share) | $1.36 | $1.10 | $3.39 |
Earnings (loss) from discontinued operations (in Dollars per share) | $0 | ($0.15) | ($0.18) |
Net income (loss) (in Dollars per share) | $1.36 | $0.95 | $3.21 |
Earnings_Loss_Per_Share_Detail1
Earnings (Loss) Per Share (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Earnings (Loss) Per Share (Details) [Line Items] | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 1,300,000 | ' | ' |
Options outstanding (Shares) | 4,355,367 | 4,185,480 | ' |
Remaining authorized repurchase amount | $13.40 | ' | ' |
Participating Restricted Stock Units [Member] | ' | ' | ' |
Earnings (Loss) Per Share (Details) [Line Items] | ' | ' | ' |
Undistributed Earnings Allocated to Participating Securities (in Dollars) | $0.10 | $0.10 | $0.50 |
Other_Accrued_Expenses_Details
Other Accrued Expenses (Details) - Schedule of accrued expenses (USD $) | 31-May-14 | 31-May-13 |
In Millions, unless otherwise specified | ||
Schedule of accrued expenses [Abstract] | ' | ' |
Accrued payroll, payroll taxes and benefits | $41.70 | $45.80 |
Accrued bonus and commissions | 36.9 | 22 |
Accrued other taxes | 27.5 | 29.3 |
Accrued advertising and promotions | 35.6 | 38.2 |
Accrued income taxes | 4.7 | 5.5 |
Accrued insurance | 8.3 | 8.7 |
Other accrued expenses | 30 | 30 |
Total accrued expenses | $184.70 | $179.50 |
Other_Financial_Data_Details_S
Other Financial Data (Details) - Schedule of Other Financial Data Other Than Accumulated Other Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Schedule of Other Financial Data Other Than Accumulated Other Comprehensive Income [Abstract] | ' | ' | ' |
Advertising expense | $133.10 | $146.40 | $145 |
Prepublication and production costs | 147.6 | 149 | 127.3 |
Amortization of prepublication and production costs | 60.4 | 48.9 | 55.1 |
Foreign currency transaction gain (loss) | -1 | -0.5 | 0.7 |
Purchases related to contractual commitments for minimum print quantities | $0 | $0 | $0 |
Other_Financial_Data_Details_O
Other Financial Data (Details) - Other Financial Data - Balance Sheet (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 |
Other Financial Data - Balance Sheet [Abstract] | ' | ' |
Unredeemed credits issued in conjunction with the Companybs school-based book club and book fair operations (included in other accrued expenses) | $10.40 | $9.50 |
Other_Financial_Data_Other_Fin
Other Financial Data Other Financial Data (Details) - Schedule of Other Financial Data Relating to Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss) | ($55.20) | ($65.40) | ' |
Total provision for income taxes | 6.1 | 17.6 | 61.6 |
Accumulated Translation Adjustment [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss) | -16.6 | -13.5 | ' |
Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss) | -38.6 | -51.9 | ' |
Total provision for income taxes | $16 | $23.10 | ' |
Derivatives_and_Hedging_Detail
Derivatives and Hedging (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' |
Unrealized gain (loss) on foreign currency derivatives | ($0.30) | $0.50 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) - Schedule of non-financial assets measured and recorded at fair value on a non-recurring basis (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Interest rate | 5.00% | 5.00% | 5.00% |
Impairment, Goodwill | $13.40 | $0 | ' |
Other Intangible Assets [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Additions due to acquisition | 0 | 0.2 | ' |
Fair Value, Measurements, Nonrecurring [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Investments | 0 | ' | 0 |
Impairment, Investments | 5.8 | ' | 1.3 |
Property, plant and equipment, net | 0 | 0 | 0.6 |
Impairment, Property, plant and equipment, net | 7.6 | 5.2 | 4 |
Goodwill | 0 | ' | 2.7 |
Impairment, Goodwill | 13.4 | ' | 0 |
Prepublication assets | 0 | 0 | 0 |
Impairment, Prepublication assets | 5.7 | 2 | 0.8 |
Other intangible assets | ' | 0.3 | 5.4 |
Impairment, Other intangible assets | ' | 0 | 6.8 |
Other intangible assets impairment | ' | ' | 4.9 |
Fair Value, Measurements, Nonrecurring [Member] | Investments [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Additions due to acquisition | 1 | ' | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Property, Plant and Equipment, Net [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Additions due to acquisition | 0 | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Goodwill [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Additions due to acquisition | 0 | ' | 2.7 |
Fair Value, Measurements, Nonrecurring [Member] | Prepublication Assets [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Additions due to acquisition | 0 | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Other Intangible Assets [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Additions due to acquisition | ' | 0.3 | 5.4 |
Fair Value, Measurements, Nonrecurring [Member] | Level 1 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Investments | 0 | ' | 0 |
Property, plant and equipment, net | 0 | 0 | 0 |
Goodwill | 0 | ' | 0 |
Prepublication assets | 0 | 0 | 0 |
Other intangible assets | ' | 0 | 0 |
Other intangible assets impairment | ' | ' | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Investments | 0 | ' | 0 |
Property, plant and equipment, net | 0 | 0 | 0.6 |
Goodwill | 0 | ' | 2.7 |
Prepublication assets | 0 | 0 | 0 |
Other intangible assets | ' | 0.3 | 5.4 |
Other intangible assets impairment | ' | ' | 4.9 |
Fair Value, Measurements, Nonrecurring [Member] | Level 2 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Investments | 0 | ' | 0 |
Property, plant and equipment, net | 0 | 0 | 0 |
Goodwill | 0 | ' | 0 |
Prepublication assets | 0 | 0 | 0 |
Other intangible assets | ' | 0 | 0 |
Other intangible assets impairment | ' | ' | $0 |
Notes Due 2013 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Interest rate | 5.00% | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (Common Class A [Member], Subsequent Event, USD $) | Jul. 23, 2014 |
Common Class A [Member] | Subsequent Event | ' |
Subsequent Events (Details) [Line Items] | ' |
Dividends declared (in dollars per share) | $0.15 |
Schedule_II_Valuation_and_Qual1
Schedule II Valuation and Qualifying Accounts and Reserves Schedule II (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 | |||
Allowance for doubtful accounts | ' | ' | ' | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | |||
Balance at Beginning of Year | $19.30 | $25.90 | $22.30 | |||
Expensed | 8.2 | 6.8 | 12.3 | |||
Write-Offs and Other | 10.2 | 13.4 | 8.7 | |||
Balance at End of Year | 17.3 | 19.3 | 25.9 | |||
Reserve for returns | ' | ' | ' | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | |||
Balance at Beginning of Year | 26.4 | 57.5 | 33 | |||
Expensed | 58 | 50.2 | 81.8 | |||
Write-Offs and Other | 57 | [1] | 81.3 | [1] | 57.3 | [1] |
Balance at End of Year | 27.4 | 26.4 | 57.5 | |||
Reserves for obsolescence | ' | ' | ' | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | |||
Balance at Beginning of Year | 90.3 | 90.8 | 82.2 | |||
Expensed | 25.1 | 27.2 | 48.1 | |||
Write-Offs and Other | 28.3 | 27.7 | 39.5 | |||
Balance at End of Year | 87.1 | 90.3 | 90.8 | |||
Reserve for royalty advances | ' | ' | ' | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | |||
Balance at Beginning of Year | 81.5 | 77.8 | 71.8 | |||
Expensed | 6.5 | 4.7 | 6.5 | |||
Write-Offs and Other | 1 | 1 | 0.5 | |||
Balance at End of Year | $87 | $81.50 | $77.80 | |||
[1] | Represents actual returns charged to the reserve |