Document and Entity Information
Document and Entity Information | 6 Months Ended |
Nov. 30, 2019shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Transition Report | false |
Document Period End Date | Nov. 30, 2019 |
Entity File Number | 000-19860 |
Entity Registrant Name | SCHOLASTIC CORPORATION |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 13-3385513 |
Entity Address, Address Line One | 557 Broadway, |
Entity Address, City or Town | New York, |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10012 |
City Area Code | 212 |
Local Phone Number | 343-6100 |
Title of 12(b) Security | Common Stock, $0.01 par value |
Trading Symbol | SCHL |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0000866729 |
Current Fiscal Year End Date | --05-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Common Stock | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 32,950,239 |
Common Class A | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 1,656,200 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenues | $ 597.2 | $ 604.7 | $ 829.8 | $ 823.1 |
Operating costs and expenses: | ||||
Cost of goods sold | 264.3 | 262.4 | 401.4 | 387.7 |
Selling, general and administrative expenses | 212.4 | 229.7 | 379.9 | 393.4 |
Depreciation and amortization | 15.4 | 14.4 | 30.8 | 27.6 |
Total operating costs and expenses | 492.1 | 506.5 | 812.1 | 808.7 |
Operating income (loss) | 105.1 | 98.2 | 17.7 | 14.4 |
Interest income (expense), net | 0 | 0.5 | 0.7 | 1.3 |
Other components of net periodic benefit (cost) | (0.2) | (0.3) | (0.6) | (0.7) |
Earnings (loss) before income taxes | 104.9 | 98.4 | 17.8 | 15 |
Provision (benefit) for income taxes | 33.8 | 26.8 | 5.2 | 4.7 |
Net income (loss) | 71.1 | 71.6 | 12.6 | 10.3 |
Less: Net income attributable to noncontrolling interests | 0.1 | 0 | 0.1 | 0 |
Net income (loss) attributable to Scholastic Corporation | $ 71 | $ 71.6 | $ 12.5 | $ 10.3 |
Basic and diluted earnings (loss) per Share of Class A and Common Stock | ||||
Basic (in Dollars per share) | $ 2.04 | $ 2.03 | $ 0.36 | $ 0.29 |
Diluted (in Dollars per share) | $ 2.02 | $ 1.99 | $ 0.35 | $ 0.29 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 71.1 | $ 71.6 | $ 12.6 | $ 10.3 |
Other comprehensive income (loss), net: | ||||
Foreign currency translation adjustment | 3.9 | (0.6) | 1.9 | (3.7) |
Pension and postretirement adjustments (net of tax) | 0.2 | 2.7 | 0.4 | 2.9 |
Total other comprehensive income (loss), net | 4.1 | 2.1 | 2.3 | (0.8) |
Comprehensive income (loss) | 75.2 | 73.7 | 14.9 | 9.5 |
Less: Net income attributable to noncontrolling interests | 0.1 | 0 | 0.1 | 0 |
Comprehensive income (loss) attributable to Scholastic Corporation | $ 75.1 | $ 73.7 | $ 14.8 | $ 9.5 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Nov. 30, 2019 | May 31, 2019 | Nov. 30, 2018 |
Current Assets: | |||
Cash and cash equivalents | $ 277.8 | $ 334.1 | $ 358.1 |
Accounts receivable, net | 325.1 | 250.1 | 377.3 |
Inventories, net | 357.8 | 323.7 | 365.6 |
Prepaid expenses and other current assets | 61.9 | 52.7 | 71.3 |
Total current assets | 1,022.6 | 960.6 | 1,172.3 |
Property, plant and equipment, net | 578.5 | 577.7 | 571.3 |
Prepublication costs | 71.3 | 70.2 | 62.1 |
Operating lease right-of-use assets, net | 76.4 | ||
Royalty advances, net | 52.3 | 47.5 | 48.9 |
Goodwill | 125.4 | 125.2 | 119.1 |
Noncurrent deferred income taxes | 37.3 | 37 | 41.4 |
Other assets and deferred charges | 67.9 | 60.3 | 66.8 |
Total noncurrent assets | 1,009.1 | 917.9 | 909.6 |
Total assets | 2,031.7 | 1,878.5 | 2,081.9 |
Current Liabilities: | |||
Lines of credit, short-term debt and current portion of long-term debt | 13.5 | 7.3 | 13.5 |
Accounts payable | 188.9 | 195.3 | 250.3 |
Accrued royalties | 54.7 | 41.9 | 58.5 |
Deferred revenue | 190.5 | 130.8 | 187.2 |
Other accrued expenses | 178.2 | 164.8 | 227.8 |
Accrued income taxes | 1.4 | 1.4 | 2.1 |
Operating lease liabilities | 23.5 | ||
Total current liabilities | 650.7 | 541.5 | 739.4 |
Noncurrent Liabilities: | |||
Total long-term debt | 2.6 | 0 | 0 |
Operating lease liabilities | 56 | ||
Other noncurrent liabilities | 61.1 | 64.2 | 57.9 |
Total noncurrent liabilities | 119.7 | 64.2 | 57.9 |
Commitments and Contingencies | |||
Stockholders’ Equity: | |||
Preferred Stock, $1.00 par value | 0 | 0 | 0 |
Common Stock, value | 0.4 | 0.4 | 0.4 |
Additional paid-in capital | 621.3 | 620.8 | 617.9 |
Accumulated other comprehensive income (loss) | (57.4) | (59.7) | (56.5) |
Retained earnings | 1,014.7 | 1,012.6 | 1,018.4 |
Treasury stock at cost | (319) | (302.6) | (295.6) |
Total stockholders’ equity | 1,260 | 1,271.5 | 1,284.6 |
Noncontrolling interest | 1.3 | 1.3 | 0 |
Total liabilities and stockholders’ equity | 1,261.3 | 1,272.8 | 1,284.6 |
Total liabilities and stockholders’ equity | 2,031.7 | 1,878.5 | 2,081.9 |
Common Class A | |||
Stockholders’ Equity: | |||
Common Stock, value | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Nov. 30, 2019 | May 31, 2019 | Nov. 30, 2018 |
Preferred stock at par value per share (in dollars per share) | $ 1 | $ 1 | $ 1 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Common Stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 70,000,000 | 70,000,000 | 70,000,000 |
Common stock, shares issued | 42,900,000 | 42,900,000 | 42,900,000 |
Common stock, shares outstanding | 33,000,000 | 33,400,000 | 33,600,000 |
Treasury stock (in shares) | 9,900,000 | 9,500,000 | 9,300,000 |
Common Class A | |||
Common Stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 4,000,000 | 4,000,000 | 4,000,000 |
Common stock, shares issued | 1,700,000 | 1,700,000 | 1,700,000 |
Common stock, shares outstanding | 1,700,000 | 1,700,000 | 1,700,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY Statement - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Common StockCommon Class A | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Parent [Member] | Noncontrolling Interest [Member] |
Beginning balance at May. 31, 2018 | $ 1,320.8 | $ 0.4 | $ 0 | $ 614.4 | $ (55.7) | $ 1,065.2 | $ (303.5) | $ 1,320.8 | $ 0 |
Ending Balance at Aug. 31, 2018 | 1,209.4 | $ 0.4 | $ 0 | 615.5 | (58.6) | 952.1 | (300) | 1,209.4 | 0 |
Net Income (loss) | (61.3) | (61.3) | (61.3) | ||||||
Foreign currency translation adjustment | (3.1) | (3.1) | (3.1) | ||||||
Pension and post-retirement adjustments (net of tax of $0.0) | 0.2 | 0.2 | 0.2 | ||||||
Stock-based compensation | 1.5 | 1.5 | 1.5 | ||||||
Proceeds pursuant to stock-based compensation plans | 2.8 | 2.8 | 2.8 | ||||||
Treasury stock issued pursuant to equity-based plans (in shares) | 0.1 | ||||||||
Treasury stock issued pursuant to equity-based plans | 0.3 | (3.2) | 3.5 | 0.3 | |||||
Dividends ($0.15 per share) | (5.3) | (5.3) | (5.3) | ||||||
Balance (in shares) at Aug. 31, 2018 | 33.4 | 1.7 | |||||||
Balance (in shares) at May. 31, 2018 | 33.3 | 1.7 | |||||||
Beginning balance at May. 31, 2018 | 1,320.8 | $ 0.4 | $ 0 | 614.4 | (55.7) | 1,065.2 | (303.5) | 1,320.8 | 0 |
Ending Balance at Nov. 30, 2018 | 1,284.6 | $ 0.4 | $ 0 | 617.9 | (56.5) | 1,018.4 | (295.6) | 1,284.6 | 0 |
Net Income (loss) | 10.3 | ||||||||
Foreign currency translation adjustment | (3.7) | ||||||||
Balance (in shares) at Nov. 30, 2018 | 33.6 | 1.7 | |||||||
Balance (in shares) at May. 31, 2018 | 33.3 | 1.7 | |||||||
Beginning balance at Aug. 31, 2018 | 1,209.4 | $ 0.4 | $ 0 | 615.5 | (58.6) | 952.1 | (300) | 1,209.4 | 0 |
Ending Balance at Nov. 30, 2018 | 1,284.6 | $ 0.4 | $ 0 | 617.9 | (56.5) | 1,018.4 | (295.6) | 1,284.6 | 0 |
Net Income (loss) | 71.6 | 71.6 | 71.6 | ||||||
Foreign currency translation adjustment | (0.6) | (0.6) | (0.6) | ||||||
Pension and post-retirement adjustments (net of tax of $0.0) | 2.7 | 2.7 | 2.7 | ||||||
Stock-based compensation | 3.7 | 3.7 | 3.7 | ||||||
Proceeds pursuant to stock-based compensation plans | 2.5 | 2.5 | 2.5 | ||||||
Purchases of treasury stock at cost (in shares) | 0 | ||||||||
Purchases of treasury stock at cost | 0 | 0 | 0 | ||||||
Treasury stock issued pursuant to equity-based plans (in shares) | 0.2 | ||||||||
Treasury stock issued pursuant to equity-based plans | 0.6 | (3.8) | 4.4 | 0.6 | |||||
Dividends ($0.15 per share) | (5.3) | (5.3) | (5.3) | ||||||
Balance (in shares) at Nov. 30, 2018 | 33.6 | 1.7 | |||||||
Balance (in shares) at Aug. 31, 2018 | 33.4 | 1.7 | |||||||
Beginning balance at May. 31, 2019 | 1,272.8 | $ 0.4 | $ 0 | 620.8 | (59.7) | 1,012.6 | (302.6) | 1,271.5 | 1.3 |
Ending Balance at Aug. 31, 2019 | 1,196.7 | $ 0.4 | 0 | 622.2 | (61.5) | 948.9 | (314.6) | 1,195.4 | 1.3 |
Net Income (loss) | (58.5) | (58.5) | (58.5) | ||||||
Foreign currency translation adjustment | (2) | (2) | (2) | ||||||
Pension and post-retirement adjustments (net of tax of $0.0) | 0.2 | 0.2 | 0.2 | ||||||
Stock-based compensation | 1.5 | 1.5 | 1.5 | ||||||
Purchases of treasury stock at cost (in shares) | (0.3) | ||||||||
Purchases of treasury stock at cost | (12.6) | (12.6) | (12.6) | ||||||
Treasury stock issued pursuant to equity-based plans (in shares) | 0 | ||||||||
Treasury stock issued pursuant to equity-based plans | 0.5 | (0.1) | 0.6 | 0.5 | |||||
Noncontrolling interest in Make Believe Ideas | $ 0 | ||||||||
Dividends ($0.15 per share) | (5.2) | (5.2) | (5.2) | ||||||
Balance (in shares) at Aug. 31, 2019 | 33.1 | 1.7 | |||||||
Balance (in shares) at May. 31, 2019 | 33.4 | 1.7 | |||||||
Beginning balance at May. 31, 2019 | 1,272.8 | $ 0.4 | $ 0 | 620.8 | (59.7) | 1,012.6 | (302.6) | 1,271.5 | 1.3 |
Ending Balance at Nov. 30, 2019 | 1,261.3 | $ 0.4 | $ 0 | 621.3 | (57.4) | 1,014.7 | (319) | 1,260 | 1.3 |
Net Income (loss) | 12.5 | ||||||||
Foreign currency translation adjustment | 1.9 | ||||||||
Purchases of treasury stock at cost | (19.6) | ||||||||
Balance (in shares) at Nov. 30, 2019 | 33 | 1.7 | |||||||
Balance (in shares) at May. 31, 2019 | 33.4 | 1.7 | |||||||
Beginning balance at Aug. 31, 2019 | 1,196.7 | $ 0.4 | $ 0 | 622.2 | (61.5) | 948.9 | (314.6) | 1,195.4 | 1.3 |
Ending Balance at Nov. 30, 2019 | 1,261.3 | $ 0.4 | 0 | 621.3 | (57.4) | 1,014.7 | (319) | 1,260 | $ 1.3 |
Net Income (loss) | 71 | 71 | 71 | ||||||
Foreign currency translation adjustment | 3.9 | 3.9 | 3.9 | ||||||
Pension and post-retirement adjustments (net of tax of $0.0) | 0.2 | $ 0.2 | 0.2 | ||||||
Stock-based compensation | 0.9 | 0.9 | 0.9 | ||||||
Proceeds pursuant to stock-based compensation plans | 0.3 | 0.3 | 0.3 | ||||||
Purchases of treasury stock at cost (in shares) | (0.1) | ||||||||
Purchases of treasury stock at cost | (7.1) | (7.1) | (7.1) | ||||||
Treasury stock issued pursuant to equity-based plans (in shares) | 0 | ||||||||
Treasury stock issued pursuant to equity-based plans | 0.6 | $ (2.1) | $ 2.7 | 0.6 | |||||
Noncontrolling interest in Make Believe Ideas | $ 0 | ||||||||
Dividends ($0.15 per share) | $ (5.2) | $ (5.2) | $ (5.2) | ||||||
Balance (in shares) at Nov. 30, 2019 | 33 | 1.7 | |||||||
Balance (in shares) at Aug. 31, 2019 | 33.1 | 1.7 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |||
Nov. 30, 2019 | Aug. 31, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | |
Provision (benefit) for income taxes | $ 33.8 | $ 26.8 | ||
Pension and postretirement adjustments, tax portion | $ 0 | $ 0 | $ 0.8 | $ 0 |
ASU 2014-09 | ||||
Provision (benefit) for income taxes | $ 16 | |||
Common Class A | ||||
Dividends declared per class A and common share (in Dollars per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Cash flows - operating activities: | ||
Net income (loss) | $ 12.5 | $ 10.3 |
Adjustments to reconcile Net income (loss) to net cash provided by (used in) operating activities: | ||
Provision for losses on accounts receivable | 4.3 | 4.1 |
Provision for losses on inventory | 7.9 | 7.7 |
Provision for losses on royalty advances | 2.4 | 2 |
Amortization of prepublication and production costs | 13 | 10.7 |
Depreciation and amortization | 32.1 | 29.1 |
Amortization of pension and postretirement actuarial gains and losses | 0.4 | 0.4 |
Deferred income taxes | (0.3) | (0.3) |
Stock-based compensation | 2.4 | 5.2 |
Income from equity investments | (3) | (4.5) |
Changes in assets and liabilities: | ||
Accounts receivable | (78.3) | (147.5) |
Inventories | (41.5) | (82.8) |
Prepaid expenses and other current assets | (11.1) | (16.8) |
Income tax receivable | 1.9 | 7.1 |
Royalty advances | (7.3) | (6.3) |
Accounts payable | (4.6) | 62.7 |
Accrued income taxes | (0.1) | 0.3 |
Accrued royalties | 12.7 | 24.2 |
Deferred revenue | 59.6 | 76.8 |
Other assets and liabilities | 11.3 | 57.1 |
Net cash provided by (used in) operating activities | 14.3 | 39.5 |
Cash flows - investing activities: | ||
Prepublication and production expenditures | (14.4) | (20.6) |
Additions to property, plant and equipment | (30.7) | (51.3) |
Acquisition of land | (3.3) | 0 |
Other investment and acquisition related payments | 0 | (0.6) |
Net cash provided by (used in) investing activities | (48.4) | (72.5) |
Cash flows - financing activities: | ||
Proceeds from long-term debt | 2.5 | 0 |
Repayments of long-term debt | 0 | 0 |
Borrowings under lines of credit | 20.3 | 29.3 |
Repayments of lines of credit | (14.2) | (23.2) |
Repayment of capital lease obligations | (0.9) | (0.7) |
Reacquisition of common stock | (19.6) | 0 |
Proceeds pursuant to stock-based compensation plans | 0.3 | 5.2 |
Payment of dividends | (10.5) | (10.6) |
Net cash provided by (used in) financing activities | (22.1) | 0 |
Effect of exchange rate changes on cash and cash equivalents | (0.1) | (0.8) |
Net increase (decrease) in cash and cash equivalents | (56.3) | (33.8) |
Cash and cash equivalents at beginning of period | 334.1 | 391.9 |
Cash and cash equivalents at end of period | $ 277.8 | $ 358.1 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Nov. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION Principles of consolidation The accompanying condensed consolidated interim financial statements (referred to as the “Financial Statements” herein) include the accounts of Scholastic Corporation (the “Corporation”) and all wholly-owned and majority-owned subsidiaries (collectively, “Scholastic” or the “Company”). Intercompany transactions are eliminated in consolidation. The Company’s fiscal year is not a calendar year. Accordingly, references in this document to fiscal 2020 relate to the twelve-month period ending May 31, 2020. Certain reclassifications have been made to conform to the current year presentation. Interim Financial Statements The accompanying Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”) for interim financial information, and should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2019 . The Financial Statements presented in this Quarterly Report on Form 10-Q are unaudited; however, in the opinion of management, the Financial Statements reflect all adjustments, consisting solely of normal, recurring adjustments, necessary for the fair presentation of the Financial Statements for the periods presented. Seasonality The Company’s Children’s Book Publishing and Distribution school-based book club and book fair channels and most of its Education businesses operate on a school-year basis; therefore, the Company’s business is highly seasonal. As a result, the Company’s revenues in the first and third quarters of the fiscal year generally are lower than its revenues in the other two fiscal quarters. Typically, school-based channels and magazine revenues are minimal in the first quarter of the fiscal year as schools are not in session. Trade sales can vary throughout the year due to varying release dates of published titles. The Company generally experiences a loss from operations in the first and third quarters of each fiscal year. Use of estimates The preparation of these Financial Statements involves the use of estimates and assumptions by management, which affects the amounts reported in the 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 certain assets and liabilities. Actual results may differ from those estimates and assumptions. On an on-going basis, the Company evaluates the adequacy of its reserves and the estimates used in these calculations, including, but not limited to: • Accounts receivable allowance for doubtful accounts • Pension and postretirement benefit plans • Uncertain tax positions • The timing and amount of future income taxes and related deductions • Inventory reserves • Cost of goods sold from book fair operations during interim periods based on estimated gross profit rates • Sales tax contingencies • Royalty advance reserves and royalty expense accruals • Impairment testing for goodwill, intangible and other long-lived assets and investments • Assets and liabilities acquired in business combinations • Variable consideration related to anticipated returns • Allocation of transaction price to performance obligations New Accounting Pronouncements There are no new accounting pronouncements in the second fiscal quarter of 2020 which would impact the Company. Refer to the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2019 for more information on current applicable authoritative guidance and its impact on the Company's financial statements. Current Fiscal Year Adoptions: Topic 842, Leases Refer to Note 10, Leases , for a discussion of the Company's lease accounting following the adoption of Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) in the first quarter of fiscal 2020. ASU No. 2018-15 In August 2018, the Financial Accounting Standards Board (the "FASB") issued ASU No. 2018-15, Intangibles- Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. The Company adopted ASU No. 2018-15 as of the beginning of the first quarter of fiscal 2020 using the prospective approach. In the second fiscal quarter, the Company capitalized approximately $6.2 of cloud computing costs which have not yet been placed into service. This amount is included within Other assets and deferred charges within the Company's Condensed Consolidated Balance Sheets and within the operating section of the Company's Condensed Consolidated Statement of Cash Flows. ASU No. 2018-02 In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220)-Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The Company adopted ASU No. 2018-02 as of the beginning of the first quarter of fiscal 2020 which resulted in no impact to the Company's financial statements. |
Revenues
Revenues | 6 Months Ended |
Nov. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | REVENUES Disaggregated Revenue Data The following table presents the Company’s disaggregated revenues by region and domestic channel: Three months ended Six months ended November 30, November 30, 2019 2018 2019 2018 U.S. Book Clubs $85.9 $101.3 $93.9 $110.4 U.S. Book Fairs 224.1 220.7 251.6 245.9 U.S. Trade 93.5 95.9 161.2 157.3 U.S. Education 69.8 71.4 118.2 119.3 Non-U.S. Major Markets (1) 94.6 88.0 150.9 138.3 Non-U.S. Other Markets (2) 29.3 27.4 54.0 51.9 Total Revenues $597.2 $604.7 $829.8 $823.1 (1) - Includes Canada, UK, Australia and New Zealand. (2) - Primarily includes markets in Asia. Estimated Returns A liability for expected returns of $ 42.4 , $ 34.5 , and $78.7 is recorded within Other accrued expenses as of November 30, 2019 , May 31, 2019 , and November 30, 2018 , respectively. In addition, a return asset of $2.6 , $1.6 , and $9.4 is recorded within Prepaid expenses and other current assets as of November 30, 2019 , May 31, 2019 , and November 30, 2018 , respectively, for the recoverable cost of product estimated to be returned by customers. Deferred Revenue The Company's contract liabilities consist of advance billings and payments received from customers in excess of revenue recognized and revenue allocated to outstanding book fairs incentive credits. These liabilities are recorded within Deferred revenue on the Company's Condensed Consolidated Balance Sheets and are classified as short term, as substantially all of the associated performance obligations are expected to be satisfied, and related revenue recognized, within one year. The Company recognized revenue which was included in the opening deferred revenue balance in the amount of $46.9 and $30.8 for the three months ended November 30, 2019 and 2018, respectively, and $74.0 and $62.7 |
Segment Information
Segment Information | 6 Months Ended |
Nov. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company categorizes its businesses into three reportable segments: Children’s Book Publishing and Distribution, Education and International . • Children’s Book Publishing and Distribution operates as an integrated business which includes the publication and distribution of children’s books, ebooks, media and interactive products in the United States through its book clubs and book fairs in its school channels and through the trade channel. This segment is comprised of three operating segments. • Education includes the publication and distribution to schools and libraries of children’s books, classroom magazines, print and digital supplemental and core classroom materials and related support services, 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 three 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 fiscal quarters ended November 30, 2019 and 2018 : Children’s Education Overhead (1) Total International Total Three months ended Revenues $413.6 $69.9 $0.0 $483.5 $113.7 $597.2 Bad debt expense 1.1 0.8 — 1.9 0.8 2.7 Depreciation and amortization (2) 6.5 3.4 10.9 20.8 1.8 22.6 Segment operating income (loss) 109.6 6.2 (22.4) 93.4 11.7 105.1 Expenditures for other noncurrent assets (3) 14.7 5.0 10.6 30.3 5.8 36.1 Three months ended Revenues $417.9 $71.5 $0.0 $489.4 $115.3 $604.7 Bad debt expense 1.6 0.7 — 2.3 0.4 2.7 Depreciation and amortization (2) 5.9 2.1 10.8 18.8 1.8 20.6 Segment operating income (loss) 106.3 8.3 (29.4) 85.2 13.0 98.2 Expenditures for other noncurrent assets (3) 20.2 5.0 15.1 40.3 3.1 43.4 The following table sets forth information for the Company's segments for the fiscal periods ended November 30, 2019 and 2018 : Children’s Education Overhead (1) Total International Total Six months ended Revenues $523.2 $118.3 $0.0 $641.5 $188.3 $829.8 Bad debt expense 1.6 0.8 — 2.4 1.9 4.3 Depreciation and amortization (2) 13.2 6.5 21.9 41.6 3.5 45.1 Segment operating income (loss) 67.9 (7.2 ) (51.0 ) 9.7 8.0 17.7 Segment assets at November 30, 2019 674.6 196.1 846.8 1,717.5 314.2 2,031.7 Goodwill at November 30, 2019 47.2 68.2 — 115.4 10.0 125.4 Expenditures for other noncurrent assets (3) 28.7 9.6 18.2 56.5 12.7 69.2 Other noncurrent assets at (3) $219.6 $122.4 $514.3 $856.3 $98.6 $954.9 Six months ended Revenues $513.6 $119.4 $0.0 $633.0 $190.1 $823.1 Bad debt expense 2.4 0.7 — 3.1 1.0 4.1 Depreciation and amortization (2) 11.6 4.1 20.7 36.4 3.4 39.8 Segment operating income (loss) 60.3 (6.6 ) (50.3 ) 3.4 11.0 14.4 Segment assets at November 30, 2018 622.4 175.9 990.6 1,788.9 293.0 2,081.9 Goodwill at November 30, 2018 40.9 68.2 — 109.1 10.0 119.1 Expenditures for other noncurrent assets (3) 31.0 10.1 40.6 81.7 7.4 89.1 Other noncurrent assets at (3) $164.1 $109.6 $499.8 $773.5 $78.0 $851.5 (1) 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, its facility located in Connecticut and certain technology assets. (2) Includes depreciation of property, plant and equipment and amortization of intangible assets and prepublication and production costs. (3) Other noncurrent assets include property, plant and equipment, prepublication assets, production assets, royalty advances, goodwill, intangible assets and investments. Expenditures for other noncurrent assets for the International segment include expenditures for long-lived assets of $4.2 and $1.6 for the three months ended November 30, 2019 and 2018 , respectively, and $9.9 and $4.4 for the six months ended November 30, 2019 and 2018 , respectively. Other noncurrent assets for the International segment include long-lived assets of $66.8 and $36.5 as of November 30, 2019 and 2018 , respectively. |
Debt
Debt | 6 Months Ended |
Nov. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The following table summarizes the carrying value of the Company's debt as of the dates indicated: November 30, 2019 May 31, 2019 November 30, 2018 Revolving Loan — — — Unsecured lines of credit (weighted average interest rates of 3.8%, 4.1% and 3.8%, respectively) $13.5 $7.3 $13.5 UK long-term debt (average interest rate of 2.5%, n/a and n/a, respectively) 2.6 — — Total debt $16.1 $7.3 $13.5 Less lines of credit, short-term debt and current portion of long-term debt (13.5 ) (7.3 ) (13.5 ) Total long-term debt $2.6 $0.0 $0.0 UK Loan Agreement On September 23, 2019, Scholastic Limited UK entered into a term loan agreement to borrow £2.0 to fund a land purchase in connection with the construction of a new UK facility. The loan has a maturity date of July 31, 2021. Under the agreement, the principal balance is due in full in a single payment on the last day of the term and interest on the amount borrowed is due and payable quarterly. The interest is charged at 1.77% per annum over the Base Rate. The Base Rate is currently equal to 0.75% per annum and is subject to change. As of November 30, 2019, the Company had $2.6 outstanding on the loan. US Loan Agreement On January 5, 2017, Scholastic Corporation and Scholastic Inc. (each, a “Borrower” and together, the “Borrowers”) entered into a 5-year credit facility with certain banks (the “Loan Agreement”). The Loan Agreement replaced the Company's then existing loan agreement and has substantially similar terms, except that: • the borrowing limit was reduced to $375.0 from $425.0 ; • the “starter” basket for permitted payments of dividends and other payments in respect of capital stock was increased to $275.0 from $75.0 ; and • the maturity date was extended to January 5, 2022 . The prior loan agreement, which was originally entered into in 2007 and had a maturity date of December 5, 2017 , was terminated on January 5, 2017 in connection with the entry into the new Loan Agreement and was treated as a debt modification. The Loan Agreement allows the Company to borrow, repay or prepay and reborrow at any time prior to the January 5, 2022 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 0.50% or (iii) the Eurodollar Rate for a one month interest period plus 1% plus, in each case, an applicable spread ranging from 0.175% 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 1.175% to 1.60% , as determined by the Company’s prevailing consolidated debt to total capital ratio. As of November 30, 2019 , the indicated spread on Base Rate Advances was 0.175% and the indicated spread on Eurodollar Advances was 1.175% , 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 in respect of the aggregate amount of revolving credit commitments ranging from 0.20% to 0.40% per annum based upon the Company’s prevailing consolidated debt to total capital ratio. At November 30, 2019 , the facility fee rate was 0.20% . A portion of the revolving credit facility, up to a maximum of $50.0 , is available for the issuance of letters of credit. In addition, a portion of the revolving credit facility, up to a maximum of $15.0 , is available for swingline loans. The Loan Agreement has an accordion feature which permits the Company, provided certain conditions are satisfied, to increase the facility by up to an additional $150.0 . As of November 30, 2019 , the Company had no outstanding borrowings under the Loan Agreement. At November 30, 2019 , the Company had open standby letters of credit totaling $5.3 issued under certain credit lines, including $ 0.4 under the Loan Agreement and $ 4.9 under the domestic credit lines discussed below. 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 the Company was in compliance with these covenants for all periods presented. Lines of Credit As of November 30, 2019 , the Company’s domestic credit lines available under unsecured money market bid rate credit lines totaled $25.0 . There were no outstanding borrowings under these credit lines as of November 30, 2019 , May 31, 2019 or November 30, 2018 . As of November 30, 2019 , availability under these unsecured money market bid rate credit lines totaled $20.1 . 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 November 30, 2019 , the Company had various local currency credit lines totaling $31.1 underwritten by banks primarily in the United States, Canada and the United Kingdom. Outstanding borrowings under these facilities were $13.5 at November 30, 2019 at a weighted average interest rate of 3.8% , $7.3 at May 31, 2019 at a weighted average interest rate of 4.1% , and $13.5 at November 30, 2018 at a weighted average interest rate of 3.8% . As of November 30, 2019 , the amounts available under these facilities totaled $17.6 . These credit lines are typically available for overdraft borrowings or loans up to 364 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Nov. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND 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 exists 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 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. In the current fiscal year, based on the status of negotiations, an alleged patent infringement claim settlement became probable and estimable. As such, an accrual of $1.5 was recognized in the Financial Statements in the first quarter of fiscal 2020. The settlement was subsequently concluded in the second quarter. On June 21, 2018, the U.S. Supreme Court issued its opinion in South Dakota v. Wayfair, Inc. et. al., reversing prior precedent, in particular Quill Corp. v. North Dakota (1992), which held that states could not constitutionally require retailers to collect and remit sales or use taxes in respect to mail order or internet sales made to residents of a state in the absence of the retailer having a physical presence in the taxing state. As a result, the Company now has an obligation, at least on a go forward basis, based on each state's enforcement date, to collect and remit sales and use taxes, primarily in respect to sales made through its school book club channel, as well as certain sales made through its ecommerce internet sites, to residents in states that the Company had not previously remitted sales or use taxes based on having no physical presence in such states. In the majority opinion, several factors were discussed in support of the Court’s reasoning that the collection of sales and use taxes from out-of-state retailers did not constitute an undue burden on interstate commerce, including the fact that South Dakota did not require retroactive application of its statute. However, the question of retroactive application, as well as certain other factors noted in the opinion, are subject to how the states, on a state-by-state basis, interpret and apply the Court’s decision in their implementation of their respective state laws or regulations addressing the collection of sales and use taxes from out-of-state retailers. As a result, the effect of the decision on the Company depends on the positions taken by the states, on a state-by-state basis, relating to the retroactive application of the obligation to collect such taxes, as well as other factors noted in the opinion. The Company continues to monitor its compliance based on anticipated enforcement dates and an assumption as to each state's likely interpretation and application of the Court's decision. As the Company continues to monitor each state, the staggered enforcement dates, and the progress towards compliance, expenses will be incurred by the Company. As of November 30, 2019 , the Company’s school book club channel remits sales taxes in 44 states and the District of Columbia compared to 13 states in the prior fiscal year quarter ended November 30, 2018 . Any on-going or future litigation with states relating to sales and use taxes could be impacted favorably or unfavorably by legislative action in future fiscal periods. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Nov. 30, 2019 | |
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 periods indicated: Three months ended November 30, Six months ended November 30, 2019 2018 2019 2018 Net income (loss) attributable to Class A and Common Stockholders $70.9 $71.4 $12.5 $10.3 Weighted average Shares of Class A Stock and Common Stock outstanding for basic earnings (loss) per share (in millions) 34.8 35.2 34.8 35.2 Dilutive effect of Class A Stock and Common Stock potentially issuable pursuant to stock-based compensation plans (in millions) 0.3 0.7 0.4 0.6 Adjusted weighted average Shares of Class A Stock and Common Stock outstanding for diluted earnings (loss) per share (in millions) 35.1 35.9 35.2 35.8 Earnings (loss) per share of Class A Stock and Common Stock: Basic $2.04 $2.03 $0.36 $0.29 Diluted $2.02 $1.99 $0.35 $0.29 The following table sets forth options outstanding pursuant to stock-based compensation plans as of the dates indicated: November 30, 2019 November 30, 2018 Options outstanding pursuant to stock-based compensation plans (in millions) 3.0 2.9 Net income attributable to Class A and Common Stockholders excludes earnings attributable to participating Restricted Stock Units of $0.1 and $0.2 for the three months ended November 30, 2019 and 2018, respectively, and less than $0.1 for the six months ended November 30, 2019 and 2018, respectively. There were 1.8 million of potentially anti-dilutive shares pursuant to stock-based compensation plans as of November 30, 2019 . A portion of the Company’s Restricted Stock Units ("RSUs") which are granted to employees participate in earnings through cumulative dividends which are payable and non-forfeitable 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. As of November 30, 2019 , $33.2 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 6 Months Ended |
Nov. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | GOODWILL AND OTHER INTANGIBLES The Company assesses goodwill and other intangible assets with indefinite lives for impairment annually or more frequently if indicators arise. The Company monitors impairment indicators in light of changes in market conditions, near and long-term demand for the Company’s products and other relevant factors. The following table summarizes the activity in Goodwill for the periods indicated: November 30, 2019 May 31, 2019 November 30, 2018 Gross beginning balance $164.8 $158.8 $158.8 Accumulated impairment (39.6 ) (39.6 ) (39.6 ) Beginning balance $125.2 $119.2 $119.2 Additions — 6.3 — Foreign currency translation 0.2 (0.3 ) (0.1 ) Ending balance $125.4 $125.2 $119.1 In the fourth quarter of fiscal 2019, the Company completed the purchase of a majority-ownership position in Make Believe Ideas Limited, a UK-based children's book publishing business, resulting in the recognition of $6.3 of Goodwill in the Children’s Book Publishing and Distribution segment. There were no impairment charges related to Goodwill in any of the periods presented. The following table summarizes the activity in other intangibles included in Other assets and deferred charges on the Company’s Financial Statements for the periods indicated: November 30, 2019 May 31, 2019 November 30, 2018 Beginning balance other intangibles subject to amortization $12.2 $10.1 $10.1 Additions — 4.5 0.6 Amortization expense (1.5 ) (2.8 ) (1.3 ) Foreign currency translation 0.0 (0.2 ) (0.1 ) Other — 0.6 — Total other intangibles subject to amortization, net of accumulated amortization of $28.4, $26.9 and $25.4, respectively 10.7 12.2 9.3 Total other intangibles not subject to amortization 2.1 2.1 2.1 Total other intangibles $12.8 $14.3 $11.4 In the fourth quarter of fiscal 2019, the Company completed the purchase of a majority interest in Make Believe Ideas Limited, included within the Children's Book Publishing and Distribution segment, which resulted in $3.9 of amortizable intangible assets. In the first quarter of fiscal 2019, the Company also purchased a UK-based book club business and a U.S.-based book fair business resulting in the recognition of $0.6 of definite-lived intangible assets. The results of operations of these businesses are included within the International and Children's Book Publishing and Distribution segments, respectively. Intangible assets with definite lives consist principally of customer lists and intellectual property rights. Intangible assets with definite lives are amortized over their estimated useful lives. The weighted-average remaining useful life of all definite-lived intangible assets is approximately 5.4 years . Intangible assets with indefinite lives consist principally of trademarks. |
Investments
Investments | 6 Months Ended |
Nov. 30, 2019 | |
Equity Method And Cost Method Investments [Abstract] | |
Investments | INVESTMENTS Investments are included in Other assets and deferred charges on the Company’s Financial Statements. The following table summarizes the Company’s investments as of the dates indicated: November 30, 2019 May 31, 2019 November 30, 2018 Segment Equity method investments $26.0 $23.4 $34.3 International Other equity investments 6.0 6.0 0.0 Children's Book Publishing & Distribution Total Investments $32.0 $29.4 $34.3 Income from equity investments is reported in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and totaled $2.0 and $2.5 for the three months ended November 30, 2019 and 2018 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Nov. 30, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The following table sets forth the components of net periodic benefit (cost) for the periods indicated under the Company’s defined benefit pension plan of Scholastic Ltd., an indirect subsidiary of Scholastic Corporation located in the United Kingdom (the “UK Pension Plan”) and the postretirement benefits plan, consisting of certain healthcare and life insurance benefits provided by the Company to its eligible retired United States-based employees (the “Postretirement Benefits”), for the periods indicated: UK Pension Plan Postretirement Benefits Three months ended November 30, Three months ended November 30, 2019 2018 2019 2018 Components of net periodic (benefit) cost: Service cost $0.0 $0.0 $0.0 $0.0 Interest cost 0.2 0.3 0.1 0.2 Expected return on assets (0.3 ) (0.3 ) — — Net amortization of prior service credit 0.0 — (0.1 ) (0.1 ) Amortization of (gains) losses 0.3 0.2 0.0 — Net periodic (benefit) cost $0.2 $0.2 $0.0 $0.1 UK Pension Plan Postretirement Benefits Six months ended November 30, Six months ended November 30, 2019 2018 2019 2018 Components of net periodic (benefit) cost: Service cost $0.0 $0.0 $0.0 $0.0 Interest cost 0.4 0.5 0.3 0.4 Expected return on assets (0.5) (0.5) — — Net amortization of prior service credit 0.0 — (0.1) (0.1) Amortization of (gains) losses 0.5 0.4 — — Net periodic (benefit) cost $0.4 $0.4 $0.2 $0.3 The Company’s funding practice with respect to the UK Pension Plan is to contribute on an annual basis at least the minimum amounts required by applicable law. For the six months ended November 30, 2019 , the Company contributed $0.6 to the UK Pension Plan. The Company expects, based on actuarial calculations, to contribute cash of approximately $1.1 to the UK Pension Plan for the fiscal year ending May 31, 2020 . In the second quarter of fiscal 2019, the Company announced a change in benefits for certain postretirement benefit plan participants. Beginning January 1, 2019, the plan established Health Reimbursement Accounts (HRAs) to provide these participants with additional flexibility to choose healthcare options based on individual needs. The Company remeasured its Postretirement benefits obligation as of November 30, 2018, and recognized a reduction of $2.7 to its benefit obligation and a reduction to its accumulated comprehensive loss of $2.7 in the second quarter of fiscal 2019. The related prior service credit will be amortized as a component of Net periodic benefit (cost) over the average lifetime of plan participants of approximately 13.0 years |
Leases
Leases | 6 Months Ended |
Nov. 30, 2019 | |
Leases [Abstract] | |
Leases | The Company's lease arrangements primarily relate to corporate offices and warehouse facilities, and to a lesser extent, certain equipment and other assets. The Company's leases generally have initial terms ranging from 3 to 10 years and certain leases include renewal or early-termination options, rent escalation clauses, and/or lease incentives. Lease renewal rent payment terms generally reflect adjustments for market rates prevailing at the time of renewal. The Company's leases require fixed minimum rent payments and also often require the payment of certain other costs that do not relate specifically to its right to use an underlying leased asset, but are associated with the asset such as real estate taxes, insurance, common area maintenance fees and/or certain other costs (referred to collectively herein as "non-lease components"), which may be fixed or variable in amount depending on the terms of the respective lease agreement. The Company's leases do not contain significant residual value guarantees or restrictive covenants. The Company determines whether an arrangement contains a lease at the inception of the arrangement. If a lease is determined to exist, it's related term is assessed based on the date in which the underlying asset is made available for the Company's use by the lessor. The Company's assessment of the lease term reflects the non-cancelable term of the lease, inclusive of any rent-free periods and/or periods covered by early-termination options which the Company is reasonably certain of not exercising, as well as periods covered by renewal options which the Company is reasonably certain of exercising. The Company also determines lease classification as either operating or finance at lease commencement, which governs the pattern of expense recognition and the presentation reflected in the Condensed Consolidated Statements of Operations over the lease term. For leases with a term exceeding 12 months, a lease liability is recorded on the Company's Condensed Consolidated Balance Sheet at lease commencement reflecting the present value of its fixed minimum payment obligations over the lease term. A corresponding right-of-use ("ROU") asset equal to the initial lease liability is also recorded, adjusted for any prepaid rent and/or initial direct costs incurred in connection with execution of the lease and reduced by any lease incentives received. The Company includes fixed payment obligations related to non-lease components in the measurement of ROU assets and lease liabilities, as it elects to account for lease and non-lease components together as a single lease component. ROU assets associated with finance leases are presented separate from operating leases ROU assets and are included within Property, plant and equipment, net on the Company's Condensed Consolidated Balance Sheet. For purposes of measuring the present value of its fixed payment obligations for a given lease, the Company uses its incremental borrowing rate, determined based on information available at lease commencement, as rates implicit in its leasing arrangements are typically not readily determinable. The Company's incremental borrowing rate reflects the rate it would pay to borrow on a secured basis, and incorporates the term and economic environment of the associated lease. For operating leases, fixed lease payments are recognized as lease expense on a straight-line basis over the lease term. For finance leases, the initial ROU asset is depreciated on a straight-line basis over the lease term, along with recognition of interest expense associated with accretion of the lease liability, which is ultimately reduced by the related fixed payments. For leases with a term of 12 months or less (referred to as a "short-term lease"), any fixed lease payments are recognized on a straight-line basis over the lease term, and are not recognized on the Condensed Consolidated balance sheet. Variable lease costs for both operating and finance leases, if any, are recognized as incurred. The following table summarizes right-of-use assets and lease liabilities recorded on the Company's Condensed Consolidated Balance Sheet as of November 30, 2019 : November 30, 2019 Location within Condensed Consolidated Balance Sheet Operating leases $76.4 Operating lease right-of-use assets, net Finance leases 11.1 Property, plant and equipment, net Total lease assets $87.5 Operating leases : Current portion 23.5 Current portion of operating lease liabilities Non-current portion 56.0 Long-term operating lease liabilities Total operating lease liabilities $79.5 Finance leases : Current portion 2.0 Other accrued expenses Non-current portion 9.8 Other noncurrent liabilities Total finance lease liabilities $11.8 Total lease liabilities $91.3 The following table summarizes the activity as a result of the adoption of ASC 842 for the three and six months ended November 30, 2019: Three Months Ended November 30, 2019 Six Months Ended November 30, 2019 Location within Condensed Consolidated Statement of Operations Operating lease expense $7.1 $14.2 Selling, general and administrative expenses Finance lease costs : Depreciation of leased assets 0.5 0.9 Selling, general and administrative expenses Accretion of lease liabilities 0.1 0.2 Interest income (expense), net Total lease expense $7.7 $15.3 The following table summarizes certain cash flows information related to the Company's leases for the six months ended November 30, 2019: Six Months Ended November 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $3.2 Operating cash flows from finance leases 0.2 Financing cash flows from finance leases 0.9 The following table provides a maturity analysis summary of the Company's lease liabilities recorded on the Company's Condensed Consolidated Balance Sheet as of November 30, 2019 : Operating Finance Leases Leases Remainder of Fiscal 2020 (1) $14.0 $1.2 Fiscal 2021 23.0 2.4 Fiscal 2022 18.6 2.3 Fiscal 2023 12.8 2.1 Fiscal 2024 7.3 2.0 Fiscal 2025 and thereafter 11.4 3.3 Total lease payments 87.1 13.3 Less: interest (7.6) (1.5) Total lease liabilities $79.5 $11.8 (1) Fiscal 2020 includes the remaining six months of the current fiscal year ending May 31, 2020. The following table summarizes the weighted-average remaining lease terms and weighted-average discount rates related to the Company's leases recorded on the Company's Condensed Consolidated Balance Sheet as of November 30, 2019 : Operating Finance Leases Leases Weighted-average remaining lease term (years) 4.3 6.2 Weighted-average discount rate 3.9% 3.8% |
Leases | The Company's lease arrangements primarily relate to corporate offices and warehouse facilities, and to a lesser extent, certain equipment and other assets. The Company's leases generally have initial terms ranging from 3 to 10 years and certain leases include renewal or early-termination options, rent escalation clauses, and/or lease incentives. Lease renewal rent payment terms generally reflect adjustments for market rates prevailing at the time of renewal. The Company's leases require fixed minimum rent payments and also often require the payment of certain other costs that do not relate specifically to its right to use an underlying leased asset, but are associated with the asset such as real estate taxes, insurance, common area maintenance fees and/or certain other costs (referred to collectively herein as "non-lease components"), which may be fixed or variable in amount depending on the terms of the respective lease agreement. The Company's leases do not contain significant residual value guarantees or restrictive covenants. The Company determines whether an arrangement contains a lease at the inception of the arrangement. If a lease is determined to exist, it's related term is assessed based on the date in which the underlying asset is made available for the Company's use by the lessor. The Company's assessment of the lease term reflects the non-cancelable term of the lease, inclusive of any rent-free periods and/or periods covered by early-termination options which the Company is reasonably certain of not exercising, as well as periods covered by renewal options which the Company is reasonably certain of exercising. The Company also determines lease classification as either operating or finance at lease commencement, which governs the pattern of expense recognition and the presentation reflected in the Condensed Consolidated Statements of Operations over the lease term. For leases with a term exceeding 12 months, a lease liability is recorded on the Company's Condensed Consolidated Balance Sheet at lease commencement reflecting the present value of its fixed minimum payment obligations over the lease term. A corresponding right-of-use ("ROU") asset equal to the initial lease liability is also recorded, adjusted for any prepaid rent and/or initial direct costs incurred in connection with execution of the lease and reduced by any lease incentives received. The Company includes fixed payment obligations related to non-lease components in the measurement of ROU assets and lease liabilities, as it elects to account for lease and non-lease components together as a single lease component. ROU assets associated with finance leases are presented separate from operating leases ROU assets and are included within Property, plant and equipment, net on the Company's Condensed Consolidated Balance Sheet. For purposes of measuring the present value of its fixed payment obligations for a given lease, the Company uses its incremental borrowing rate, determined based on information available at lease commencement, as rates implicit in its leasing arrangements are typically not readily determinable. The Company's incremental borrowing rate reflects the rate it would pay to borrow on a secured basis, and incorporates the term and economic environment of the associated lease. For operating leases, fixed lease payments are recognized as lease expense on a straight-line basis over the lease term. For finance leases, the initial ROU asset is depreciated on a straight-line basis over the lease term, along with recognition of interest expense associated with accretion of the lease liability, which is ultimately reduced by the related fixed payments. For leases with a term of 12 months or less (referred to as a "short-term lease"), any fixed lease payments are recognized on a straight-line basis over the lease term, and are not recognized on the Condensed Consolidated balance sheet. Variable lease costs for both operating and finance leases, if any, are recognized as incurred. The following table summarizes right-of-use assets and lease liabilities recorded on the Company's Condensed Consolidated Balance Sheet as of November 30, 2019 : November 30, 2019 Location within Condensed Consolidated Balance Sheet Operating leases $76.4 Operating lease right-of-use assets, net Finance leases 11.1 Property, plant and equipment, net Total lease assets $87.5 Operating leases : Current portion 23.5 Current portion of operating lease liabilities Non-current portion 56.0 Long-term operating lease liabilities Total operating lease liabilities $79.5 Finance leases : Current portion 2.0 Other accrued expenses Non-current portion 9.8 Other noncurrent liabilities Total finance lease liabilities $11.8 Total lease liabilities $91.3 The following table summarizes the activity as a result of the adoption of ASC 842 for the three and six months ended November 30, 2019: Three Months Ended November 30, 2019 Six Months Ended November 30, 2019 Location within Condensed Consolidated Statement of Operations Operating lease expense $7.1 $14.2 Selling, general and administrative expenses Finance lease costs : Depreciation of leased assets 0.5 0.9 Selling, general and administrative expenses Accretion of lease liabilities 0.1 0.2 Interest income (expense), net Total lease expense $7.7 $15.3 The following table summarizes certain cash flows information related to the Company's leases for the six months ended November 30, 2019: Six Months Ended November 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $3.2 Operating cash flows from finance leases 0.2 Financing cash flows from finance leases 0.9 The following table provides a maturity analysis summary of the Company's lease liabilities recorded on the Company's Condensed Consolidated Balance Sheet as of November 30, 2019 : Operating Finance Leases Leases Remainder of Fiscal 2020 (1) $14.0 $1.2 Fiscal 2021 23.0 2.4 Fiscal 2022 18.6 2.3 Fiscal 2023 12.8 2.1 Fiscal 2024 7.3 2.0 Fiscal 2025 and thereafter 11.4 3.3 Total lease payments 87.1 13.3 Less: interest (7.6) (1.5) Total lease liabilities $79.5 $11.8 (1) Fiscal 2020 includes the remaining six months of the current fiscal year ending May 31, 2020. The following table summarizes the weighted-average remaining lease terms and weighted-average discount rates related to the Company's leases recorded on the Company's Condensed Consolidated Balance Sheet as of November 30, 2019 : Operating Finance Leases Leases Weighted-average remaining lease term (years) 4.3 6.2 Weighted-average discount rate 3.9% 3.8% |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Nov. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The following table summarizes stock-based compensation expense included in Selling, general and administrative expenses for the periods indicated: Three months ended November 30, Six months ended November 30, 2019 2018 2019 2018 Stock option expense $0.4 $2.8 $1.0 $3.6 Restricted stock unit expense 0.4 0.7 1.2 1.3 Management stock purchase plan 0.0 0.2 0.0 0.2 Employee stock purchase plan 0.1 0.0 0.2 0.1 Total stock-based compensation expense $0.9 $3.7 $2.4 $5.2 The following table sets forth Common Stock issued pursuant to stock-based compensation plans for the periods indicated: Three months ended November 30, Six months ended November 30, 2019 2018 2019 2018 Common Stock issued pursuant to stock-based compensation plans (in millions) 0.1 0.2 0.1 0.3 |
Treasury Stock
Treasury Stock | 6 Months Ended |
Nov. 30, 2019 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Treasury Stock | TREASURY STOCK The Board has authorized the Company to repurchase Common Stock, from time to time as conditions allow, on the open market or through negotiated private transactions. The table below represents the Board authorizations at the dates indicated: Authorizations Amount July 2015 $50.0 March 2018 50.0 Total current Board authorizations at June 1, 2019 $100.0 Less repurchases made under these authorizations (66.8) Remaining Board authorization at November 30, 2019 $33.2 Repurchases of Common Stock were $7.1 and $ 19.6 during the three and six months ended November 30, 2019 . The Company’s repurchase program may be suspended at any time without prior notice. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Nov. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables summarize the activity in Accumulated other comprehensive income (loss), net of tax, by component, for the periods indicated: Three months ended November 30, 2019 Foreign currency translation adjustments Retirement benefit plans Total Beginning balance at September 1, 2019 $(49.1) $(12.4) $(61.5) Other comprehensive income (loss) before reclassifications 3.9 — 3.9 Less amount reclassified from Accumulated other comprehensive income (loss): Amortization of gains and losses (net of tax of $0.0) — 0.3 0.3 Amortization of prior service credit (net of tax of $0.0) — (0.1 ) (0.1 ) Other comprehensive income (loss) 3.9 0.2 4.1 Ending balance at November 30, 2019 $(45.2) $(12.2) $(57.4) Three months ended November 30, 2018 Foreign currency translation adjustments Retirement benefit plans Total Beginning balance at September 1, 2018 $(45.0) $(13.6) $(58.6) Other comprehensive income (loss) before reclassifications (0.6 ) — (0.6 ) Less amount reclassified from Accumulated other comprehensive income (loss): Amortization of gains and losses (net of tax of $0.0) — 0.2 0.2 Postretirement benefit plan remeasurement (net of tax of $0.7) — 2.0 2.0 Amortization of prior service credit (net of tax of $0.0) — (0.1 ) (0.1 ) Other reclassifications (net of tax of $0.2) — 0.6 0.6 Other comprehensive income (loss) (0.6 ) 2.7 2.1 Ending balance at November 30, 2018 $(45.6) $(10.9) $(56.5) Six months ended November 30, 2019 Foreign currency translation adjustments Retirement benefit plans Total Beginning balance at June 1, 2019 $(47.1) $(12.6) $(59.7) Other comprehensive income (loss) before reclassifications 1.9 — 1.9 Less amount reclassified from Accumulated other comprehensive income (loss): Amortization of gains and losses (net of tax of $0.0) — 0.5 0.5 Amortization of prior service credit (net of tax of $0.0) — (0.1) (0.1) Other comprehensive income (loss) 1.9 0.4 2.3 Ending balance at November 30, 2019 $(45.2) $(12.2) $(57.4) Six months ended November 30, 2018 Foreign currency translation adjustments Retirement benefit plans Total Beginning balance at June 1, 2018 $(41.9) $(13.8) $(55.7) Other comprehensive income (loss) before reclassifications (3.7) — (3.7) Less amount reclassified from Accumulated other comprehensive income (loss): Amortization of gains and losses (net of tax of $0.0) — 0.4 0.4 Postretirement benefit plan remeasurement (net of tax of $0.7) — 2.0 2.0 Amortization of prior service credit (net of tax of $0.0) — (0.1) (0.1) Other reclassifications (net of tax of $0.2) — 0.6 0.6 Other comprehensive income (loss) (3.7) 2.9 (0.8) Ending balance at November 30, 2018 $(45.6) $(10.9) $(56.5) The following table presents the impact on earnings of reclassifications out of Accumulated other comprehensive income (loss) for the periods indicated: Three months ended November 30, Six months ended November 30, Condensed Consolidated Statements of Operations line item 2019 2018 2019 2018 Employee benefit plans: Amortization of unrecognized (gain) loss $0.3 $0.2 $0.5 $0.4 Other components of net periodic benefit (cost) Amortization of prior service credit (0.1) (0.1) (0.1) (0.1) Other components of net periodic benefit (cost) Less: Tax effect 0.0 0.0 0.0 0.0 Provision (benefit) for income taxes Total cost, net of tax $0.2 $0.1 $0.4 $0.3 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Nov. 30, 2019 | |
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 quoted prices included in Level 1, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability and inputs derived principally from or corroborated by observable market data. • 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 various lines of credit and long term debt. The fair value of the Company's debt approximates the carrying value for all periods presented. The fair values of foreign currency forward contracts, used by the Company to manage the impact of foreign exchange rate changes, are based on quotations from financial institutions, a Level 2 fair value measure. See Note 16, Derivatives and Hedging, for a more complete description of the fair value measurements employed. Non-financial assets for which the Company employs fair value measures on a non-recurring basis include: • Long-lived assets • Investments • Assets acquired in a business combination • Impairment assessment of Goodwill and 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. For the fair value measurements employed by the Company for certain property, plant and equipment, production assets, investments and prepublication assets, the Company assessed future expected cash flows attributable to these assets. |
Income Taxes and Other Taxes
Income Taxes and Other Taxes | 6 Months Ended |
Nov. 30, 2019 | |
Income Tax And Non Income Tax Disclosure [Abstract] | |
Income Taxes and Other Taxes | INCOME TAXES AND OTHER TAXES Income Taxes In calculating the provision for income taxes on an interim basis, the Company uses an estimate of the annual effective tax rate based upon currently known facts and circumstances and applies that rate to its year-to-date earnings or losses. The Company’s effective tax rate is based on expected income and statutory tax rates and takes into consideration permanent differences between financial statement and tax return income applicable to the Company in the various jurisdictions in which the Company operates. The effect of discrete items, such as changes in estimates, changes in enacted tax laws or rates or tax status, and unusual or infrequently occurring events, is recognized in the interim period in which the discrete item occurs. The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained or as the result of new judicial interpretations or regulatory or tax law changes. The Company’s annual effective tax rate, exclusive of discrete items, is expected to be approximately 32.4% . The interim effective tax rate, inclusive of discrete items, was 32.2% for the three month period ended November 30, 2019 and 29.2% for the six month period ended November 30, 2019 . The Company, including its domestic subsidiaries, files a consolidated U.S. income tax return, and also files tax returns in various states and other local jurisdictions. Also, certain subsidiaries of the Company file income tax returns in foreign jurisdictions. The Company is routinely audited by various tax authorities. 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. The Company assesses sales tax contingencies for each jurisdiction in which it operates, considering all relevant facts including statutes, regulations, case law and experience. Where a sales tax liability with 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 Condensed Consolidated Financial Statements. These amounts are included in the Financial Statements in Selling, general and administrative expenses. Future developments relating to the foregoing could result in adjustments being made to these accruals. On June 21, 2018, the U.S. Supreme Court issued its opinion in South Dakota v. Wayfair, Inc. et. al., reversing prior precedent, in particular Quill Corp. v. North Dakota (1992), which held that states could not constitutionally require retailers to collect and remit sales or use taxes in respect to mail order or internet sales made to residents of a state in the absence of the retailer having a physical presence in the taxing state. As a result, the Company now has an obligation, at least on a going forward basis, to collect and remit sales and use taxes, primarily in respect to sales made through its school book club channel, as well as certain sales made through its ecommerce internet sites, to residents in states that the Company has not previously remitted sales or use taxes based on its having no physical presence in such states. As of November 30, 2019 , the Company’s school book club channel was remitting sales taxes in 44 |
Derivatives and Hedging
Derivatives and Hedging | 6 Months Ended |
Nov. 30, 2019 | |
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, the foreign exchange risk associated with certain receivables denominated in foreign currencies and certain future commitments for foreign expenditures. 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 Selling, general and administrative expenses and it recognizes the unrealized gain or loss in other current assets or other current liabilities. The notional values of the contracts as of November 30, 2019 and November 30, 2018 were $26.0 and $30.0 , respectively. Unrealized gains of $0.3 and $0.9 were recognized for the six months ended November 30, 2019 and November 30, 2018 |
Other Accrued Expenses
Other Accrued Expenses | 6 Months Ended |
Nov. 30, 2019 | |
Other Accrued Expenses Disclosure [Abstract] | |
Other Accrued Expenses | OTHER ACCRUED EXPENSES Other accrued expenses consisted of the following as of the dates indicated: November 30, 2019 May 31, 2019 November 30, 2018 Accrued payroll, payroll taxes and benefits $41.7 $41.2 $42.3 Accrued bonus and commissions 13.3 13.7 16.8 Returns liability 42.4 34.5 78.7 Accrued other taxes 30.2 29.3 31.3 Accrued advertising and promotions 12.3 9.6 9.2 Other accrued expenses 38.3 36.5 49.5 Total accrued expenses $178.2 $164.8 $227.8 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Nov. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS The Board declared a quarterly cash dividend of $0.15 per share on the Company’s Class A and Common Stock for the third quarter of fiscal 2020. The dividend is payable on March 16, 2020 to shareholders of record as of the close of business on January 31, 2020. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Nov. 30, 2019 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation The accompanying condensed consolidated interim financial statements (referred to as the “Financial Statements” herein) include the accounts of Scholastic Corporation (the “Corporation”) and all wholly-owned and majority-owned subsidiaries (collectively, “Scholastic” or the “Company”). Intercompany transactions are eliminated in consolidation. The Company’s fiscal year is not a calendar year. Accordingly, references in this document to fiscal 2020 relate to the twelve-month period ending May 31, 2020. Certain reclassifications have been made to conform to the current year presentation. |
Interim Financial Statements | Interim Financial Statements The accompanying Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”) for interim financial information, and should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2019 . The Financial Statements presented in this Quarterly Report on Form 10-Q are unaudited; however, in the opinion of management, the Financial Statements reflect all adjustments, consisting solely of normal, recurring adjustments, necessary for the fair presentation of the Financial Statements for the periods presented. |
Seasonality | Seasonality The Company’s Children’s Book Publishing and Distribution school-based book club and book fair channels and most of its Education businesses operate on a school-year basis; therefore, the Company’s business is highly seasonal. As a result, the Company’s revenues in the first and third quarters of the fiscal year generally are lower than its revenues in the other two fiscal quarters. Typically, school-based channels and magazine revenues are minimal in the first quarter of the fiscal year as schools are not in session. Trade sales can vary throughout the year due to varying release dates of published titles. The Company generally experiences a loss from operations in the first and third quarters of each fiscal year. |
Use of estimates | Use of estimates The preparation of these Financial Statements involves the use of estimates and assumptions by management, which affects the amounts reported in the 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 certain assets and liabilities. Actual results may differ from those estimates and assumptions. On an on-going basis, the Company evaluates the adequacy of its reserves and the estimates used in these calculations, including, but not limited to: • Accounts receivable allowance for doubtful accounts • Pension and postretirement benefit plans • Uncertain tax positions • The timing and amount of future income taxes and related deductions • Inventory reserves • Cost of goods sold from book fair operations during interim periods based on estimated gross profit rates • Sales tax contingencies • Royalty advance reserves and royalty expense accruals • Impairment testing for goodwill, intangible and other long-lived assets and investments • Assets and liabilities acquired in business combinations • Variable consideration related to anticipated returns • Allocation of transaction price to performance obligations |
New Accounting Pronouncements | New Accounting Pronouncements There are no new accounting pronouncements in the second fiscal quarter of 2020 which would impact the Company. Refer to the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2019 for more information on current applicable authoritative guidance and its impact on the Company's financial statements. Current Fiscal Year Adoptions: Topic 842, Leases Refer to Note 10, Leases , for a discussion of the Company's lease accounting following the adoption of Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) in the first quarter of fiscal 2020. ASU No. 2018-15 In August 2018, the Financial Accounting Standards Board (the "FASB") issued ASU No. 2018-15, Intangibles- Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. The Company adopted ASU No. 2018-15 as of the beginning of the first quarter of fiscal 2020 using the prospective approach. In the second fiscal quarter, the Company capitalized approximately $6.2 of cloud computing costs which have not yet been placed into service. This amount is included within Other assets and deferred charges within the Company's Condensed Consolidated Balance Sheets and within the operating section of the Company's Condensed Consolidated Statement of Cash Flows. ASU No. 2018-02 In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220)-Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The Company adopted ASU No. 2018-02 as of the beginning of the first quarter of fiscal 2020 which resulted in no impact to the Company's financial statements. |
Revenues (Tables)
Revenues (Tables) - USD ($) $ in Millions | 6 Months Ended | ||
Nov. 30, 2019 | May 31, 2019 | Nov. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Contract with Customer, Right to Recover Product, Current | $ 2.6 | $ 1.6 | $ 9.4 |
Schedule of Disaggregation of Revenue | The following table presents the Company’s disaggregated revenues by region and domestic channel: Three months ended Six months ended November 30, November 30, 2019 2018 2019 2018 U.S. Book Clubs $85.9 $101.3 $93.9 $110.4 U.S. Book Fairs 224.1 220.7 251.6 245.9 U.S. Trade 93.5 95.9 161.2 157.3 U.S. Education 69.8 71.4 118.2 119.3 Non-U.S. Major Markets (1) 94.6 88.0 150.9 138.3 Non-U.S. Other Markets (2) 29.3 27.4 54.0 51.9 Total Revenues $597.2 $604.7 $829.8 $823.1 (1) - Includes Canada, UK, Australia and New Zealand. (2) - Primarily includes markets in Asia. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Children’s Education Overhead (1) Total International Total Three months ended Revenues $413.6 $69.9 $0.0 $483.5 $113.7 $597.2 Bad debt expense 1.1 0.8 — 1.9 0.8 2.7 Depreciation and amortization (2) 6.5 3.4 10.9 20.8 1.8 22.6 Segment operating income (loss) 109.6 6.2 (22.4) 93.4 11.7 105.1 Expenditures for other noncurrent assets (3) 14.7 5.0 10.6 30.3 5.8 36.1 Three months ended Revenues $417.9 $71.5 $0.0 $489.4 $115.3 $604.7 Bad debt expense 1.6 0.7 — 2.3 0.4 2.7 Depreciation and amortization (2) 5.9 2.1 10.8 18.8 1.8 20.6 Segment operating income (loss) 106.3 8.3 (29.4) 85.2 13.0 98.2 Expenditures for other noncurrent assets (3) 20.2 5.0 15.1 40.3 3.1 43.4 The following table sets forth information for the Company's segments for the fiscal periods ended November 30, 2019 and 2018 : Children’s Education Overhead (1) Total International Total Six months ended Revenues $523.2 $118.3 $0.0 $641.5 $188.3 $829.8 Bad debt expense 1.6 0.8 — 2.4 1.9 4.3 Depreciation and amortization (2) 13.2 6.5 21.9 41.6 3.5 45.1 Segment operating income (loss) 67.9 (7.2 ) (51.0 ) 9.7 8.0 17.7 Segment assets at November 30, 2019 674.6 196.1 846.8 1,717.5 314.2 2,031.7 Goodwill at November 30, 2019 47.2 68.2 — 115.4 10.0 125.4 Expenditures for other noncurrent assets (3) 28.7 9.6 18.2 56.5 12.7 69.2 Other noncurrent assets at (3) $219.6 $122.4 $514.3 $856.3 $98.6 $954.9 Six months ended Revenues $513.6 $119.4 $0.0 $633.0 $190.1 $823.1 Bad debt expense 2.4 0.7 — 3.1 1.0 4.1 Depreciation and amortization (2) 11.6 4.1 20.7 36.4 3.4 39.8 Segment operating income (loss) 60.3 (6.6 ) (50.3 ) 3.4 11.0 14.4 Segment assets at November 30, 2018 622.4 175.9 990.6 1,788.9 293.0 2,081.9 Goodwill at November 30, 2018 40.9 68.2 — 109.1 10.0 119.1 Expenditures for other noncurrent assets (3) 31.0 10.1 40.6 81.7 7.4 89.1 Other noncurrent assets at (3) $164.1 $109.6 $499.8 $773.5 $78.0 $851.5 (1) 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, its facility located in Connecticut and certain technology assets. (2) Includes depreciation of property, plant and equipment and amortization of intangible assets and prepublication and production costs. (3) Other noncurrent assets include property, plant and equipment, prepublication assets, production assets, royalty advances, goodwill, intangible assets and investments. Expenditures for other noncurrent assets for the International segment include expenditures for long-lived assets of $4.2 and $1.6 for the three months ended November 30, 2019 and 2018 , respectively, and $9.9 and $4.4 for the six months ended November 30, 2019 and 2018 , respectively. Other noncurrent assets for the International segment include long-lived assets of $66.8 and $36.5 as of November 30, 2019 and 2018 , respectively. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes the carrying value of the Company's debt as of the dates indicated: November 30, 2019 May 31, 2019 November 30, 2018 Revolving Loan — — — Unsecured lines of credit (weighted average interest rates of 3.8%, 4.1% and 3.8%, respectively) $13.5 $7.3 $13.5 UK long-term debt (average interest rate of 2.5%, n/a and n/a, respectively) 2.6 — — Total debt $16.1 $7.3 $13.5 Less lines of credit, short-term debt and current portion of long-term debt (13.5 ) (7.3 ) (13.5 ) Total long-term debt $2.6 $0.0 $0.0 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
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 periods indicated: Three months ended November 30, Six months ended November 30, 2019 2018 2019 2018 Net income (loss) attributable to Class A and Common Stockholders $70.9 $71.4 $12.5 $10.3 Weighted average Shares of Class A Stock and Common Stock outstanding for basic earnings (loss) per share (in millions) 34.8 35.2 34.8 35.2 Dilutive effect of Class A Stock and Common Stock potentially issuable pursuant to stock-based compensation plans (in millions) 0.3 0.7 0.4 0.6 Adjusted weighted average Shares of Class A Stock and Common Stock outstanding for diluted earnings (loss) per share (in millions) 35.1 35.9 35.2 35.8 Earnings (loss) per share of Class A Stock and Common Stock: Basic $2.04 $2.03 $0.36 $0.29 Diluted $2.02 $1.99 $0.35 $0.29 |
Schedule of stock option activity | The following table sets forth options outstanding pursuant to stock-based compensation plans as of the dates indicated: November 30, 2019 November 30, 2018 Options outstanding pursuant to stock-based compensation plans (in millions) 3.0 2.9 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Activity in Goodwill for the Periods Indicated | The following table summarizes the activity in Goodwill for the periods indicated: November 30, 2019 May 31, 2019 November 30, 2018 Gross beginning balance $164.8 $158.8 $158.8 Accumulated impairment (39.6 ) (39.6 ) (39.6 ) Beginning balance $125.2 $119.2 $119.2 Additions — 6.3 — Foreign currency translation 0.2 (0.3 ) (0.1 ) Ending balance $125.4 $125.2 $119.1 |
Summary of Activity in Total Other Intangibles for the Periods Indicated | The following table summarizes the activity in other intangibles included in Other assets and deferred charges on the Company’s Financial Statements for the periods indicated: November 30, 2019 May 31, 2019 November 30, 2018 Beginning balance other intangibles subject to amortization $12.2 $10.1 $10.1 Additions — 4.5 0.6 Amortization expense (1.5 ) (2.8 ) (1.3 ) Foreign currency translation 0.0 (0.2 ) (0.1 ) Other — 0.6 — Total other intangibles subject to amortization, net of accumulated amortization of $28.4, $26.9 and $25.4, respectively 10.7 12.2 9.3 Total other intangibles not subject to amortization 2.1 2.1 2.1 Total other intangibles $12.8 $14.3 $11.4 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Equity Method And Cost Method Investments [Abstract] | |
Investments | The following table summarizes the Company’s investments as of the dates indicated: November 30, 2019 May 31, 2019 November 30, 2018 Segment Equity method investments $26.0 $23.4 $34.3 International Other equity investments 6.0 6.0 0.0 Children's Book Publishing & Distribution Total Investments $32.0 $29.4 $34.3 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The following table sets forth the components of net periodic benefit (cost) for the periods indicated under the Company’s defined benefit pension plan of Scholastic Ltd., an indirect subsidiary of Scholastic Corporation located in the United Kingdom (the “UK Pension Plan”) and the postretirement benefits plan, consisting of certain healthcare and life insurance benefits provided by the Company to its eligible retired United States-based employees (the “Postretirement Benefits”), for the periods indicated: UK Pension Plan Postretirement Benefits Three months ended November 30, Three months ended November 30, 2019 2018 2019 2018 Components of net periodic (benefit) cost: Service cost $0.0 $0.0 $0.0 $0.0 Interest cost 0.2 0.3 0.1 0.2 Expected return on assets (0.3 ) (0.3 ) — — Net amortization of prior service credit 0.0 — (0.1 ) (0.1 ) Amortization of (gains) losses 0.3 0.2 0.0 — Net periodic (benefit) cost $0.2 $0.2 $0.0 $0.1 UK Pension Plan Postretirement Benefits Six months ended November 30, Six months ended November 30, 2019 2018 2019 2018 Components of net periodic (benefit) cost: Service cost $0.0 $0.0 $0.0 $0.0 Interest cost 0.4 0.5 0.3 0.4 Expected return on assets (0.5) (0.5) — — Net amortization of prior service credit 0.0 — (0.1) (0.1) Amortization of (gains) losses 0.5 0.4 — — Net periodic (benefit) cost $0.4 $0.4 $0.2 $0.3 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Leases [Abstract] | |
Assets And Liabilities | The following table summarizes right-of-use assets and lease liabilities recorded on the Company's Condensed Consolidated Balance Sheet as of November 30, 2019 : November 30, 2019 Location within Condensed Consolidated Balance Sheet Operating leases $76.4 Operating lease right-of-use assets, net Finance leases 11.1 Property, plant and equipment, net Total lease assets $87.5 Operating leases : Current portion 23.5 Current portion of operating lease liabilities Non-current portion 56.0 Long-term operating lease liabilities Total operating lease liabilities $79.5 Finance leases : Current portion 2.0 Other accrued expenses Non-current portion 9.8 Other noncurrent liabilities Total finance lease liabilities $11.8 Total lease liabilities $91.3 |
Lease Expense, Cash Flow and Weighted Average Information | The following table summarizes the activity as a result of the adoption of ASC 842 for the three and six months ended November 30, 2019: Three Months Ended November 30, 2019 Six Months Ended November 30, 2019 Location within Condensed Consolidated Statement of Operations Operating lease expense $7.1 $14.2 Selling, general and administrative expenses Finance lease costs : Depreciation of leased assets 0.5 0.9 Selling, general and administrative expenses Accretion of lease liabilities 0.1 0.2 Interest income (expense), net Total lease expense $7.7 $15.3 The following table summarizes certain cash flows information related to the Company's leases for the six months ended November 30, 2019: Six Months Ended November 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $3.2 Operating cash flows from finance leases 0.2 Financing cash flows from finance leases 0.9 The following table summarizes the weighted-average remaining lease terms and weighted-average discount rates related to the Company's leases recorded on the Company's Condensed Consolidated Balance Sheet as of November 30, 2019 : Operating Finance Leases Leases Weighted-average remaining lease term (years) 4.3 6.2 Weighted-average discount rate 3.9% 3.8% |
Finance Lease, Maturity | The following table provides a maturity analysis summary of the Company's lease liabilities recorded on the Company's Condensed Consolidated Balance Sheet as of November 30, 2019 : Operating Finance Leases Leases Remainder of Fiscal 2020 (1) $14.0 $1.2 Fiscal 2021 23.0 2.4 Fiscal 2022 18.6 2.3 Fiscal 2023 12.8 2.1 Fiscal 2024 7.3 2.0 Fiscal 2025 and thereafter 11.4 3.3 Total lease payments 87.1 13.3 Less: interest (7.6) (1.5) Total lease liabilities $79.5 $11.8 |
Operating Lease, Maturity | The following table provides a maturity analysis summary of the Company's lease liabilities recorded on the Company's Condensed Consolidated Balance Sheet as of November 30, 2019 : Operating Finance Leases Leases Remainder of Fiscal 2020 (1) $14.0 $1.2 Fiscal 2021 23.0 2.4 Fiscal 2022 18.6 2.3 Fiscal 2023 12.8 2.1 Fiscal 2024 7.3 2.0 Fiscal 2025 and thereafter 11.4 3.3 Total lease payments 87.1 13.3 Less: interest (7.6) (1.5) Total lease liabilities $79.5 $11.8 (1) Fiscal 2020 includes the remaining six months of the current fiscal year ending May 31, 2020. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The following table summarizes stock-based compensation expense included in Selling, general and administrative expenses for the periods indicated: Three months ended November 30, Six months ended November 30, 2019 2018 2019 2018 Stock option expense $0.4 $2.8 $1.0 $3.6 Restricted stock unit expense 0.4 0.7 1.2 1.3 Management stock purchase plan 0.0 0.2 0.0 0.2 Employee stock purchase plan 0.1 0.0 0.2 0.1 Total stock-based compensation expense $0.9 $3.7 $2.4 $5.2 |
Schedule of Shares Issued Pursuant to Share-based Compensation Activity | The following table sets forth Common Stock issued pursuant to stock-based compensation plans for the periods indicated: Three months ended November 30, Six months ended November 30, 2019 2018 2019 2018 Common Stock issued pursuant to stock-based compensation plans (in millions) 0.1 0.2 0.1 0.3 |
Treasury Stock (Tables)
Treasury Stock (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Tabular Disclosure of an Entity's Treasury Stock | The table below represents the Board authorizations at the dates indicated: Authorizations Amount July 2015 $50.0 March 2018 50.0 Total current Board authorizations at June 1, 2019 $100.0 Less repurchases made under these authorizations (66.8) Remaining Board authorization at November 30, 2019 $33.2 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables summarize the activity in Accumulated other comprehensive income (loss), net of tax, by component, for the periods indicated: Three months ended November 30, 2019 Foreign currency translation adjustments Retirement benefit plans Total Beginning balance at September 1, 2019 $(49.1) $(12.4) $(61.5) Other comprehensive income (loss) before reclassifications 3.9 — 3.9 Less amount reclassified from Accumulated other comprehensive income (loss): Amortization of gains and losses (net of tax of $0.0) — 0.3 0.3 Amortization of prior service credit (net of tax of $0.0) — (0.1 ) (0.1 ) Other comprehensive income (loss) 3.9 0.2 4.1 Ending balance at November 30, 2019 $(45.2) $(12.2) $(57.4) Three months ended November 30, 2018 Foreign currency translation adjustments Retirement benefit plans Total Beginning balance at September 1, 2018 $(45.0) $(13.6) $(58.6) Other comprehensive income (loss) before reclassifications (0.6 ) — (0.6 ) Less amount reclassified from Accumulated other comprehensive income (loss): Amortization of gains and losses (net of tax of $0.0) — 0.2 0.2 Postretirement benefit plan remeasurement (net of tax of $0.7) — 2.0 2.0 Amortization of prior service credit (net of tax of $0.0) — (0.1 ) (0.1 ) Other reclassifications (net of tax of $0.2) — 0.6 0.6 Other comprehensive income (loss) (0.6 ) 2.7 2.1 Ending balance at November 30, 2018 $(45.6) $(10.9) $(56.5) Six months ended November 30, 2019 Foreign currency translation adjustments Retirement benefit plans Total Beginning balance at June 1, 2019 $(47.1) $(12.6) $(59.7) Other comprehensive income (loss) before reclassifications 1.9 — 1.9 Less amount reclassified from Accumulated other comprehensive income (loss): Amortization of gains and losses (net of tax of $0.0) — 0.5 0.5 Amortization of prior service credit (net of tax of $0.0) — (0.1) (0.1) Other comprehensive income (loss) 1.9 0.4 2.3 Ending balance at November 30, 2019 $(45.2) $(12.2) $(57.4) Six months ended November 30, 2018 Foreign currency translation adjustments Retirement benefit plans Total Beginning balance at June 1, 2018 $(41.9) $(13.8) $(55.7) Other comprehensive income (loss) before reclassifications (3.7) — (3.7) Less amount reclassified from Accumulated other comprehensive income (loss): Amortization of gains and losses (net of tax of $0.0) — 0.4 0.4 Postretirement benefit plan remeasurement (net of tax of $0.7) — 2.0 2.0 Amortization of prior service credit (net of tax of $0.0) — (0.1) (0.1) Other reclassifications (net of tax of $0.2) — 0.6 0.6 Other comprehensive income (loss) (3.7) 2.9 (0.8) Ending balance at November 30, 2018 $(45.6) $(10.9) $(56.5) |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the impact on earnings of reclassifications out of Accumulated other comprehensive income (loss) for the periods indicated: Three months ended November 30, Six months ended November 30, Condensed Consolidated Statements of Operations line item 2019 2018 2019 2018 Employee benefit plans: Amortization of unrecognized (gain) loss $0.3 $0.2 $0.5 $0.4 Other components of net periodic benefit (cost) Amortization of prior service credit (0.1) (0.1) (0.1) (0.1) Other components of net periodic benefit (cost) Less: Tax effect 0.0 0.0 0.0 0.0 Provision (benefit) for income taxes Total cost, net of tax $0.2 $0.1 $0.4 $0.3 |
Other Accrued Expenses (Tables)
Other Accrued Expenses (Tables) | 6 Months Ended |
Nov. 30, 2019 | |
Other Accrued Expenses Disclosure [Abstract] | |
Schedule of Other Accrued Expenses | Other accrued expenses consisted of the following as of the dates indicated: November 30, 2019 May 31, 2019 November 30, 2018 Accrued payroll, payroll taxes and benefits $41.7 $41.2 $42.3 Accrued bonus and commissions 13.3 13.7 16.8 Returns liability 42.4 34.5 78.7 Accrued other taxes 30.2 29.3 31.3 Accrued advertising and promotions 12.3 9.6 9.2 Other accrued expenses 38.3 36.5 49.5 Total accrued expenses $178.2 $164.8 $227.8 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | Nov. 30, 2019USD ($) |
Accounting Standards Update 2018-15 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Capitalized costs | $ 6.2 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 597.2 | $ 604.7 | $ 829.8 | $ 823.1 |
Children's Book Publishing and Distribution | U.S. Book Clubs | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 85.9 | 101.3 | 93.9 | 110.4 |
Children's Book Publishing and Distribution | U.S. Book Fairs | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 224.1 | 220.7 | 251.6 | 245.9 |
Children's Book Publishing and Distribution | U.S. Trade | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 93.5 | 95.9 | 161.2 | 157.3 |
Education | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 69.8 | 71.4 | 118.2 | 119.3 |
International | Major Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 94.6 | 88 | 150.9 | 138.3 |
International | Other Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 29.3 | $ 27.4 | $ 54 | $ 51.9 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | May 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||||
Returns liability | $ 42,400,000 | $ 78,700,000 | $ 42,400,000 | $ 78,700,000 | $ 34,500,000 |
Return asset | 2,600,000 | 9,400,000 | 2,600,000 | 9,400,000 | $ 1,600,000 |
Amount of revenue recognized included within deferred revenue balance | $ 46,900,000 | $ 30,800,000 | $ 74,000,000 | $ 62,700,000 |
Segment Information - Schedule
Segment Information - Schedule of segment reporting information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Nov. 30, 2019USD ($) | Nov. 30, 2018USD ($) | Nov. 30, 2019USD ($)segment | Nov. 30, 2018USD ($) | May 31, 2019USD ($) | May 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | segment | 3 | |||||
Revenues | $ 597.2 | $ 604.7 | $ 829.8 | $ 823.1 | ||
Bad debt expense | 2.7 | 2.7 | 4.3 | 4.1 | ||
Depreciation and amortization | 22.6 | 20.6 | 45.1 | 39.8 | ||
Segment operating income (loss) | 105.1 | 98.2 | 17.7 | 14.4 | ||
Segment assets | 2,031.7 | 2,081.9 | 2,031.7 | 2,081.9 | ||
Goodwill | 125.4 | 119.1 | 125.4 | 119.1 | $ 125.2 | $ 119.2 |
Expenditures for other non-current assets | 36.1 | 43.4 | 69.2 | 89.1 | ||
Other non-current assets | 954.9 | 851.5 | $ 954.9 | 851.5 | ||
Children's Book Publishing and Distribution | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of operating segments | segment | 3 | |||||
Revenues | 413.6 | 417.9 | $ 523.2 | 513.6 | ||
Bad debt expense | 1.1 | 1.6 | 1.6 | 2.4 | ||
Segment assets | 674.6 | 622.4 | 674.6 | 622.4 | ||
Goodwill | 47.2 | 40.9 | 47.2 | 40.9 | ||
Expenditures for other non-current assets | 14.7 | 20.2 | 28.7 | 31 | ||
Other non-current assets | 219.6 | 164.1 | $ 219.6 | 164.1 | ||
Education | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of operating segments | segment | 3 | |||||
Revenues | 69.9 | 71.5 | $ 118.3 | 119.4 | ||
Bad debt expense | 0.8 | 0.7 | 0.8 | 0.7 | ||
Segment assets | 196.1 | 175.9 | 196.1 | 175.9 | ||
Goodwill | 68.2 | 68.2 | 68.2 | 68.2 | ||
Expenditures for other non-current assets | 5 | 5 | 9.6 | 10.1 | ||
Other non-current assets | 122.4 | 109.6 | 122.4 | 109.6 | ||
Overhead | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Bad debt expense | 0 | 0 | 0 | 0 | ||
Segment assets | 846.8 | 990.6 | 846.8 | 990.6 | ||
Goodwill | 0 | 0 | 0 | 0 | ||
Expenditures for other non-current assets | 10.6 | 15.1 | 18.2 | 40.6 | ||
Other non-current assets | 514.3 | 499.8 | 514.3 | 499.8 | ||
Total Domestic | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 483.5 | 489.4 | 641.5 | 633 | ||
Bad debt expense | 1.9 | 2.3 | 2.4 | 3.1 | ||
Segment assets | 1,717.5 | 1,788.9 | 1,717.5 | 1,788.9 | ||
Goodwill | 115.4 | 109.1 | 115.4 | 109.1 | ||
Expenditures for other non-current assets | 30.3 | 40.3 | 56.5 | 81.7 | ||
Other non-current assets | 856.3 | 773.5 | $ 856.3 | 773.5 | ||
International | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of operating segments | segment | 3 | |||||
Revenues | 113.7 | 115.3 | $ 188.3 | 190.1 | ||
Bad debt expense | 0.8 | 0.4 | 1.9 | 1 | ||
Segment assets | 314.2 | 293 | 314.2 | 293 | ||
Goodwill | 10 | 10 | 10 | 10 | ||
Expenditures for other non-current assets | 5.8 | 3.1 | 12.7 | 7.4 | ||
Other non-current assets | 98.6 | 78 | 98.6 | 78 | ||
Operating Segments | Children's Book Publishing and Distribution | ||||||
Segment Reporting Information [Line Items] | ||||||
Depreciation and amortization | 6.5 | 5.9 | 13.2 | 11.6 | ||
Segment operating income (loss) | 109.6 | 106.3 | 67.9 | 60.3 | ||
Operating Segments | Education | ||||||
Segment Reporting Information [Line Items] | ||||||
Depreciation and amortization | 3.4 | 2.1 | 6.5 | 4.1 | ||
Segment operating income (loss) | 6.2 | 8.3 | (7.2) | (6.6) | ||
Operating Segments | Overhead | ||||||
Segment Reporting Information [Line Items] | ||||||
Depreciation and amortization | 10.9 | 10.8 | 21.9 | 20.7 | ||
Segment operating income (loss) | (22.4) | (29.4) | (51) | (50.3) | ||
Operating Segments | Total Domestic | ||||||
Segment Reporting Information [Line Items] | ||||||
Depreciation and amortization | 20.8 | 18.8 | 41.6 | 36.4 | ||
Segment operating income (loss) | 93.4 | 85.2 | 9.7 | 3.4 | ||
Operating Segments | International | ||||||
Segment Reporting Information [Line Items] | ||||||
Depreciation and amortization | 1.8 | 1.8 | 3.5 | 3.4 | ||
Segment operating income (loss) | 11.7 | 13 | 8 | 11 | ||
Expenditures to acquire long-lived assets | 4.2 | 1.6 | 9.9 | 4.4 | ||
Long-lived assets | $ 66.8 | $ 36.5 | $ 66.8 | $ 36.5 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Nov. 30, 2019 | May 31, 2019 | Nov. 30, 2018 |
Debt Instrument [Line Items] | |||
Total Debt | $ 16.1 | $ 7.3 | $ 13.5 |
Less lines of credit, short-term debt and current portion of long-term debt | (13.5) | (7.3) | (13.5) |
Total long-term debt | 2.6 | 0 | 0 |
UK Long-term Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 2.6 | 0 | 0 |
Long-term Debt Weighted average interest rate (percentage) | 2.50% | ||
Line of Credit | Secured Debt | |||
Debt Instrument [Line Items] | |||
Total Debt | $ 13.5 | $ 7.3 | $ 13.5 |
Weighted average interest rate (percentage) | 3.80% | 4.10% | 3.80% |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Sep. 23, 2019 | Nov. 30, 2019 | May 31, 2019 | Nov. 30, 2018 | Jan. 05, 2017 | Jun. 01, 2007 |
Debt (Details) [Line Items] | ||||||
Standby letters of credit | $ 5,300,000 | |||||
Debt | 16,100,000 | $ 7,300,000 | $ 13,500,000 | |||
Lines of credit, short-term debt and current portion of long-term debt | 13,500,000 | 7,300,000 | 13,500,000 | |||
UK Long-term Debt | ||||||
Debt (Details) [Line Items] | ||||||
Face amount of debt | $ 2,000,000 | |||||
Long-term Debt, Gross | $ 2,600,000 | 0 | 0 | |||
UK Long-term Debt | Base Rate | ||||||
Debt (Details) [Line Items] | ||||||
Variable rate (percentage) | 1.77% | 0.75% | ||||
Loan Agreement | ||||||
Debt (Details) [Line Items] | ||||||
Borrowing capacity | $ 375,000,000 | $ 425,000,000 | ||||
Starter basket for permitted payments of dividends and other capital stock payments | $ 275,000,000 | $ 75,000,000 | ||||
Facility fee (percentage) | 0.20% | |||||
Increase in borrwoing capacity available under accordion feature | $ 150,000,000 | |||||
Standby letters of credit | $ 400,000 | |||||
Loan Agreement | Minimum | ||||||
Debt (Details) [Line Items] | ||||||
Facility fee (percentage) | 0.20% | |||||
Loan Agreement | Maximum | ||||||
Debt (Details) [Line Items] | ||||||
Facility fee (percentage) | 0.40% | |||||
Loan Agreement | Federal Funds Rate | ||||||
Debt (Details) [Line Items] | ||||||
Variable rate (percentage) | 0.50% | |||||
Loan Agreement | Eurodollar | ||||||
Debt (Details) [Line Items] | ||||||
Variable rate (percentage) | 1.00% | |||||
Loan Agreement | Base Rate | ||||||
Debt (Details) [Line Items] | ||||||
Variable rate (percentage) | 0.175% | |||||
Loan Agreement | Base Rate | Minimum | ||||||
Debt (Details) [Line Items] | ||||||
Variable rate (percentage) | 0.175% | |||||
Loan Agreement | Base Rate | Maximum | ||||||
Debt (Details) [Line Items] | ||||||
Variable rate (percentage) | 0.60% | |||||
Loan Agreement | London Interbank Offered Rate (LIBOR) | Minimum | ||||||
Debt (Details) [Line Items] | ||||||
Variable rate (percentage) | 1.175% | |||||
Loan Agreement | London Interbank Offered Rate (LIBOR) | Maximum | ||||||
Debt (Details) [Line Items] | ||||||
Variable rate (percentage) | 1.60% | |||||
Unsecured Debt | Domestic Line of Credit | ||||||
Debt (Details) [Line Items] | ||||||
Borrowing capacity | $ 25,000,000 | |||||
Standby letters of credit | 4,900,000 | |||||
Short-term debt | 0 | 0 | 0 | |||
Remaining borrowing capacity | $ 20,100,000 | |||||
Expiration period (in days) | 365 days | |||||
Secured Debt | Line of Credit | ||||||
Debt (Details) [Line Items] | ||||||
Borrowing capacity | $ 31,100,000 | |||||
Expiration period (in days) | 364 days | |||||
Debt | $ 13,500,000 | $ 7,300,000 | $ 13,500,000 | |||
Available credit | $ 17,600,000 | |||||
Weighted average interest rate (percentage) | 3.80% | 4.10% | 3.80% | |||
Lines of credit, short-term debt and current portion of long-term debt | $ 7,300,000 | $ 13,500,000 | ||||
Revolving Credit Facility | 2007 Loan Agreement | Letter of Credit | ||||||
Debt (Details) [Line Items] | ||||||
Borrowing capacity | $ 50,000,000 | |||||
Revolving Credit Facility | 2007 Loan Agreement | Swingline Facility | ||||||
Debt (Details) [Line Items] | ||||||
Borrowing capacity | $ 15,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 6 Months Ended | |
Nov. 30, 2019USD ($)state | Nov. 30, 2018state | |
Loss Contingencies [Line Items] | ||
Settlement | $ | $ 1.5 | |
Children's Book Publishing and Distribution | ||
Loss Contingencies [Line Items] | ||
Number of states in which sales tax remitted (in states) | state | 44 | 13 |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income (loss) attributable to Class A and Common Shares | $ 70.9 | $ 71.4 | $ 12.5 | $ 10.3 |
Weighted average Shares of Class A Stock and Common Stock outstanding for basic earnings (loss) per share | 34.8 | 35.2 | 34.8 | 35.2 |
Dilutive effect of Class A Stock and Common Stock potentially issuable pursuant to stock-based compensation plans | 0.3 | 0.7 | 0.4 | 0.6 |
Adjusted weighted average Shares of Class A Stock and Common Stock outstanding for diluted earnings (loss) per share (in millions) | 35.1 | 35.9 | 35.2 | 35.8 |
Earnings (loss) per share of Class A Stock and Common Stock: | ||||
Basic (in Dollars per share) | $ 2.04 | $ 2.03 | $ 0.36 | $ 0.29 |
Diluted (in Dollars per share) | $ 2.02 | $ 1.99 | $ 0.35 | $ 0.29 |
Earnings (Loss) Per Share - S_2
Earnings (Loss) Per Share - Schedule of Options Outstanding (Details) - shares shares in Millions | Nov. 30, 2019 | Nov. 30, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Options outstanding pursuant to stock-based compensation plans (in millions) | 3 | 2.9 |
Earnings (Loss) Per Share - Nar
Earnings (Loss) Per Share - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from calculation of earnings per share | 1.8 | |||
Remaining authorized stock repurchase amount | $ 33.2 | $ 33.2 | ||
Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from calculation of earnings per share | 0.1 | 0.2 | 0.1 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Schedule of activity in goodwill (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Nov. 30, 2019 | Nov. 30, 2018 | May 31, 2018 | May 31, 2019 | May 31, 2017 | |
Goodwill [Roll Forward] | |||||
Gross goodwill | $ 164.8 | $ 158.8 | |||
Accumulated impairment | $ (39.6) | $ (39.6) | |||
Beginning balance | $ 125.2 | $ 119.2 | |||
Additions | 0 | $ 0 | 6.3 | ||
Foreign currency translation | 0.2 | (0.1) | $ (0.3) | ||
Ending balance | $ 125.4 | $ 119.1 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | May 31, 2018 | May 31, 2019 | May 31, 2017 | |
Goodwill and Other Intangibles (Details) [Line Items] | ||||||
Additions | $ 0 | $ 0 | $ 6.3 | |||
Goodwill, Impaired, Accumulated Impairment Loss | $ 39.6 | $ 39.6 | ||||
Amortizable intangible assets acquired | 0 | 0.6 | 4.5 | |||
Amortization expense | $ 1.5 | $ 1.3 | $ 2.8 | |||
Useful life | 5 years 4 months 24 days | |||||
U.K. Based Book Business [Member] | ||||||
Goodwill and Other Intangibles (Details) [Line Items] | ||||||
Amortizable intangible assets acquired | $ 0.6 | |||||
Make Believe Ideas Limited (MBI) | ||||||
Goodwill and Other Intangibles (Details) [Line Items] | ||||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 3.9 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles - Schedule of other intangible assets subject to amortization (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Nov. 30, 2019 | Nov. 30, 2018 | May 31, 2018 | May 31, 2014 | May 31, 2019 | |
Finite-lived Intangible Assets [Roll Forward] | |||||
Beginning balance other intangibles subject to amortization | $ 12.2 | $ 10.1 | |||
Additions | 0 | $ 0.6 | 4.5 | ||
Amortization expense | (1.5) | (1.3) | (2.8) | ||
Foreign currency translation | 0 | (0.1) | $ (0.2) | ||
Other | 0 | 0 | $ 0.6 | ||
Total other intangibles subject to amortization, net of accumulated amortization of $24.8, $24.1 and $22.5, respectively | 10.7 | 9.3 | |||
Accumulated amortization of intangible assets | 28.4 | 25.4 | $ 26.9 | ||
Total other intangibles not subject to amortization | 2.1 | 2.1 | 2.1 | ||
Total other intangibles | $ 12.8 | $ 11.4 | $ 14.3 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Apr. 30, 2019 | Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | May 31, 2019 | Mar. 27, 2019 | Mar. 26, 2019 | |
Investments (Details) [Line Items] | ||||||||
Investments | $ 32 | $ 34.3 | $ 32 | $ 34.3 | $ 29.4 | |||
Income from equity method investments | 2 | 2.5 | 3 | 4.5 | ||||
Make Believe Ideas Limited (MBI) | ||||||||
Investments (Details) [Line Items] | ||||||||
Percentage of interests acquired | 46.50% | |||||||
Equity method ownership percentage | 95.00% | 48.50% | ||||||
Financing and Production Company | ||||||||
Investments (Details) [Line Items] | ||||||||
Other equity percentage | 4.60% | |||||||
International | ||||||||
Investments (Details) [Line Items] | ||||||||
Equity method investment | 26 | 34.3 | 26 | 34.3 | 23.4 | |||
Children's Book Publishing and Distribution | Other Investments | ||||||||
Investments (Details) [Line Items] | ||||||||
Investments | $ 6 | $ 0 | $ 6 | $ 0 | $ 6 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of net periodic costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Components of net periodic benefit (credit) cost: | ||||
Amortization of (gain) loss | $ 0.4 | $ 0.4 | ||
Post-Retirement Benefits | ||||
Components of net periodic benefit (credit) cost: | ||||
Service cost | $ 0 | $ 0 | 0 | 0 |
Interest cost | 0.1 | 0.2 | 0.3 | 0.4 |
Expected return on assets | 0 | 0 | 0 | 0 |
Net amortization of prior service credit | (0.1) | (0.1) | (0.1) | (0.1) |
Amortization of (gain) loss | 0 | 0 | 0 | 0 |
Net periodic benefit (credit) cost | 0 | 0.1 | 0.2 | 0.3 |
United Kingdom | Pension Plans | ||||
Components of net periodic benefit (credit) cost: | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 0.2 | 0.3 | 0.4 | 0.5 |
Expected return on assets | (0.3) | (0.3) | (0.5) | (0.5) |
Net amortization of prior service credit | 0 | 0 | 0 | 0 |
Amortization of (gain) loss | 0.3 | 0.2 | 0.5 | 0.4 |
Net periodic benefit (credit) cost | $ 0.2 | $ 0.2 | $ 0.4 | $ 0.4 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Nov. 30, 2018 | Nov. 30, 2019 | |
Pension Plans | United Kingdom | ||
Employee Benefit Plans (Details) [Line Items] | ||
Pension contributions | $ 0.6 | |
Contributions expected in current fiscal year | $ 1.1 | |
Post-Retirement Benefits | ||
Employee Benefit Plans (Details) [Line Items] | ||
Reduction in benefit obligation | $ 2.7 | |
Reduction in AOCI | $ 2.7 | |
Average remaining life expectancy | 13 years |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 6 Months Ended |
Nov. 30, 2019 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Initial term | 3 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Initial term | 10 years |
Leases (Assets and Liabilities)
Leases (Assets and Liabilities) (Details) $ in Millions | Nov. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease right-of-use assets, net | $ 76.4 |
Finance Lease, Right-of-Use Asset | 11.1 |
Total lease assets | 87.5 |
Operating lease liabilities | 23.5 |
Operating lease liabilities | 56 |
Total operating lease liabilities | 79.5 |
Finance Lease, Liability, Current | 2 |
Finance Lease, Liability, Noncurrent | 9.8 |
Total finance lease liabilities | 11.8 |
Total lease liabilities | $ 91.3 |
Leases (Lease Expense) (Details
Leases (Lease Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Nov. 30, 2019 | Nov. 30, 2019 | |
Leases [Abstract] | ||
Operating lease expense | $ 7.1 | $ 14.2 |
Finance Lease, Right-of-Use Asset, Amortization | 0.5 | 0.9 |
Accretion of lease liabilities | 0.1 | 0.2 |
Total lease expense | $ 7.7 | $ 15.3 |
Leases (Cash Flow Information)
Leases (Cash Flow Information) (Details) $ in Millions | 6 Months Ended |
Nov. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 3.2 |
Operating cash flows from finance leases | 0.2 |
Financing cash flows from finance leases | $ 0.9 |
Leases (Lease Maturity) (Detail
Leases (Lease Maturity) (Details) $ in Millions | Nov. 30, 2019USD ($) |
Operating Lease | |
Remainder of Fiscal 2020 (1) | $ 14 |
Fiscal 2021 | 23 |
Fiscal 2022 | 18.6 |
Fiscal 2023 | 12.8 |
Fiscal 2024 | 7.3 |
Fiscal 2025 and thereafter | 11.4 |
Total lease payments | 87.1 |
Less: interest | (7.6) |
Total lease liabilities | 79.5 |
Finance Lease | |
Remainder of Fiscal 2020 (1) | 1.2 |
Fiscal 2021 | 2.4 |
Fiscal 2022 | 2.3 |
Fiscal 2023 | 2.1 |
Fiscal 2024 | 2 |
Fiscal 2025 and thereafter | 3.3 |
Total lease payments | 13.3 |
Less: interest | (1.5) |
Total lease liabilities | $ 11.8 |
Leases (Weighted Average) (Deta
Leases (Weighted Average) (Details) | Nov. 30, 2019 |
Leases [Abstract] | |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 3 months 18 days |
Finance Lease, Weighted Average Remaining Lease Term | 6 years 2 months 12 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.90% |
Finance Lease, Weighted Average Discount Rate, Percent | 3.80% |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Stock-Based Compensation (Details) - Schedule of stock-based compensation [Line Items] | ||||
Stock-based compensation expense | $ 0.9 | $ 3.7 | $ 2.4 | $ 5.2 |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 0.1 | 0.2 | 0.1 | 0.3 |
Stock option expense | ||||
Stock-Based Compensation (Details) - Schedule of stock-based compensation [Line Items] | ||||
Stock-based compensation expense | $ 0.4 | $ 2.8 | $ 1 | $ 3.6 |
Restricted stock unit expense | ||||
Stock-Based Compensation (Details) - Schedule of stock-based compensation [Line Items] | ||||
Stock-based compensation expense | 0.4 | 0.7 | 1.2 | 1.3 |
Management stock purchase plan | ||||
Stock-Based Compensation (Details) - Schedule of stock-based compensation [Line Items] | ||||
Stock-based compensation expense | 0 | 0.2 | 0 | 0.2 |
Employee stock purchase plan | ||||
Stock-Based Compensation (Details) - Schedule of stock-based compensation [Line Items] | ||||
Stock-based compensation expense | $ 0.1 | $ 0 | $ 0.2 | $ 0.1 |
Treasury Stock - Schedule of re
Treasury Stock - Schedule of repurchase of common stock (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 49 Months Ended | ||||
Nov. 30, 2019 | Aug. 31, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Aug. 31, 2019 | Mar. 21, 2018 | Jul. 22, 2015 | |
Stockholders' Equity Attributable to Parent [Abstract] | |||||||
Authorized amount of stock to be repurchased | $ 100 | $ 100 | $ 50 | $ 50 | |||
Total current Board authorizations | (7.1) | $ (12.6) | $ 0 | (19.6) | $ (66.8) | ||
Less repurchases made under these authorizations | $ 33.2 | $ 33.2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of AOCI Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 1,196.7 | $ 1,209.4 | $ 1,272.8 | $ 1,320.8 |
Other comprehensive income (loss) before reclassifications | 3.9 | (0.6) | 1.9 | (3.7) |
Amortization of gains and losses, net of tax | 0.3 | 0.2 | 0.5 | 0.4 |
Postretirement benefit plan remeasurement (net of tax of $0.7) | 2 | 2 | ||
Amortization of prior service credit | (0.1) | (0.1) | (0.1) | (0.1) |
Other reclassifications (net of tax of $0) | 0.6 | 0.6 | ||
Other comprehensive income (loss) | 4.1 | 2.1 | 2.3 | (0.8) |
Ending Balance | 1,261.3 | 1,284.6 | 1,261.3 | 1,284.6 |
Amortization, Tax | 0 | 0 | 0 | 0 |
Postretirement benefit plan remeasurement, tax | 0.7 | 0.7 | ||
Amortization of prior service credit, Tax | 0 | 0 | 0 | 0 |
Other reclassifications, tax | 0.2 | 0.2 | 0.2 | |
AOCI Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (61.5) | (58.6) | (59.7) | (55.7) |
Ending Balance | (57.4) | (56.5) | (57.4) | (56.5) |
Foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (49.1) | (45) | (47.1) | (41.9) |
Other comprehensive income (loss) before reclassifications | 3.9 | (0.6) | 1.9 | (3.7) |
Other comprehensive income (loss) | 3.9 | (0.6) | 1.9 | (3.7) |
Ending Balance | (45.2) | (45.6) | (45.2) | (45.6) |
Retirement benefit plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (12.4) | (13.6) | (12.6) | (13.8) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amortization of gains and losses, net of tax | 0.3 | 0.2 | 0.5 | 0.4 |
Postretirement benefit plan remeasurement (net of tax of $0.7) | 2 | 2 | ||
Amortization of prior service credit | (0.1) | (0.1) | (0.1) | (0.1) |
Other reclassifications (net of tax of $0) | 0.6 | 0.6 | ||
Other comprehensive income (loss) | 0.2 | 2.7 | 0.4 | 2.9 |
Ending Balance | $ (12.2) | $ (10.9) | $ (12.2) | $ (10.9) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassification out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Nov. 30, 2019 | Aug. 31, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | Nov. 30, 2019 | Nov. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Less: Tax effect | $ (33.8) | $ (26.8) | $ (5.2) | $ (4.7) | ||
Net income (loss) attributable to Scholastic Corporation | (71) | $ 58.5 | (71.6) | $ 61.3 | (12.5) | (10.3) |
Amount reclassified from Accumulated other comprehensive income (loss) | Retirement benefit plans | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Amortization of unrecognized gain (loss) | 0.3 | 0.2 | 0.5 | 0.4 | ||
Amortization of prior service credit | (0.1) | (0.1) | (0.1) | (0.1) | ||
Less: Tax effect | 0 | 0 | 0 | 0 | ||
Net income (loss) attributable to Scholastic Corporation | $ 0.2 | $ 0.1 | $ 0.4 | $ 0.3 |
Income Taxes and Other Taxes (D
Income Taxes and Other Taxes (Details) - state | 3 Months Ended | 6 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2019 | Nov. 30, 2018 | |
Income Tax And Non Income Tax Disclosure [Abstract] | |||
Annualized effective income tax rate (percentage) | 32.40% | ||
Effective income tax rate (percentage) | 32.20% | 29.20% | |
Children's Book Publishing and Distribution | |||
Loss Contingencies [Line Items] | |||
Number of states in which sales tax remitted (in states) | 44 | 13 |
Derivatives and Hedging (Detail
Derivatives and Hedging (Details) - Not Designated as Hedging Instrument - Foreign Exchange Contract - USD ($) $ in Millions | 6 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | $ 26 | $ 30 |
Unrealized gain (loss) | $ (0.9) | $ (0.3) |
Other Accrued Expenses - Schedu
Other Accrued Expenses - Schedule of accrued expenses (Details) - USD ($) $ in Millions | Nov. 30, 2019 | May 31, 2019 | Nov. 30, 2018 |
Schedule of accrued expenses [Abstract] | |||
Accrued payroll, payroll taxes and benefits | $ 41.7 | $ 41.2 | $ 42.3 |
Accrued bonus and commissions | 13.3 | 13.7 | 16.8 |
Returns liability | 42.4 | 34.5 | 78.7 |
Accrued other taxes | 30.2 | 29.3 | 31.3 |
Accrued advertising and promotions | 12.3 | 9.6 | 9.2 |
Other accrued expenses | 38.3 | 36.5 | 49.5 |
Total accrued expenses | $ 178.2 | $ 164.8 | $ 227.8 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | Feb. 29, 2020$ / shares |
Common Class A | |
Subsequent Event [Line Items] | |
Dividend declared per share (in Dollars per share) | $ 0.15 |
Common Stock | |
Subsequent Event [Line Items] | |
Dividend declared per share (in Dollars per share) | $ 0.15 |
Uncategorized Items - schl20191
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (46,500,000) |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (46,500,000) |
Accounting Standards Update 2014-09 [Member] | Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (46,500,000) |