NEW YORK
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13-5593032
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State or other jurisdiction of incorporation or organization
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I.R.S. Employer Identification No.
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111 River Street, Hoboken, NJ
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07030
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Address of principal executive offices
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Zip Code
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(201) 748-6000
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Registrant’s telephone number including area code
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Securities registered pursuant to Section 12(b) of the Act: Title of each class
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Name of each exchange on which registered
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Class A Common Stock, par value $1.00 per share
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New York Stock Exchange
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Class B Common Stock, par value $1.00 per share
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New York Stock Exchange
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Securities registered pursuant to Section 12(g) of the Act:
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None
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PART I
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PAGE
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ITEM 4
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Mine Safety Disclosures – Not Applicable
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PART II
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PART III
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PART IV
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SIGNATURES
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Business
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Risk Factors
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Unresolved Staff Comments
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Properties
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Location
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Purpose
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Owned or Leased
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Approx. Sq. Ft.
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United States:
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New Jersey
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Corporate Headquarters
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Leased
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404,000
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Warehouse
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Leased
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380,000
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Office & Warehouse
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Leased
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185,000
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Indiana
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Office
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Leased
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123,000
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California
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Office
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Leased
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57,000
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Massachusetts
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Office
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Leased
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43,000
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Illinois
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Office
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Leased
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30,000
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Florida
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Office
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Leased
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22,000
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Minnesota
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Offices
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Leased
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12,000
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International:
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Australia
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Office & Warehouse
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Leased
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93,000
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Offices
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Leased
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59,000
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Canada
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Office & Warehouse
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Leased
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87,000
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Office
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Leased
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20,000
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England
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Warehouses
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Leased
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297,000
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Offices
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Leased
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80,000
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Offices
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Owned
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70,000
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Germany
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Office
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Owned
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58,000
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Office
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Leased
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19,000
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Singapore
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Offices
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Leased
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68,000
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Office & Warehouse
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Leased
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61,000
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Russia
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Office
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Leased
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18,000
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India
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Office & Warehouse
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Leased
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16,000
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China
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Office
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Leased
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14,000
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Legal Proceedings
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Market for the Company’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
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Class A Common Stock
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Class B Common Stock
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||||||||||||||||||||||||
Market Price
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Market Price
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Dividends
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High
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Low
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Dividends
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High
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Low
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||||||||||||||||||||
2013
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First Quarter
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$ | 0.24 | $ | 49.72 | $ | 43.69 | $ | 0.24 | $ | 49.83 | $ | 44.28 | |||||||||||||
Second Quarter
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0.24 | 51.32 | 42.88 | 0.24 | 51.18 | 42.91 | |||||||||||||||||||
Third Quarter
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0.24 | 44.43 | 36.53 | 0.24 | 44.26 | 36.91 | |||||||||||||||||||
Fourth Quarter
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0.24 | 39.99 | 36.09 | 0.24 | 40.50 | 35.89 | |||||||||||||||||||
2012
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First Quarter
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$ | 0.20 | $ | 53.00 | $ | 49.08 | $ | 0.20 | $ | 53.22 | $ | 49.28 | |||||||||||||
Second Quarter
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0.20 | 50.71 | 42.35 | 0.20 | 50.90 | 43.06 | |||||||||||||||||||
Third Quarter
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0.20 | 49.43 | 43.50 | 0.20 | 49.66 | 43.57 | |||||||||||||||||||
Fourth Quarter
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0.20 | 47.93 | 44.41 | 0.20 | 48.00 | 44.30 |
Total
Number of Shares Purchased
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Average
Price Paid
Per Share
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Total Number of Shares Purchased as part of a Publicly Announced Program
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Maximum Number of Shares that May be Purchased Under the Program
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February 2013
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- | - | - | 1,250,841 | |||||||||||||
March 2013
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381,189 | $ | 39.16 | 381,189 | 869,652 | ||||||||||||
April 2013
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360,000 | $ | 37.84 | 360,000 | 509,652 | ||||||||||||
Total
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741,189 | $ | 38.52 | 741,189 |
Selected Financial Data
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For the Years Ended April 30,
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Dollars in millions (except per share data)
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2013
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2012
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2011
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2010
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2009
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Revenue
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$ | 1,760.8 | $ | 1,782.7 | $ | 1,742.6 | $ | 1,699.1 | $ | 1,611.4 | |||||||||||
Operating Income (a-d)
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199.4 | 280.4 | 248.1 | 242.6 | 218.5 | ||||||||||||||||
Net Income (a-e)
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144.2 | 212.7 | 171.9 | 143.5 | 128.3 | ||||||||||||||||
Working Capital (f)
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(32.2 | ) | (66.3 | ) | (228.9 | ) | (188.7 | ) | (157.4 | ) | |||||||||||
Deferred Revenue in Working Capital (f)
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(363.0 | ) | (342.0 | ) | (321.4 | ) | (275.7 | ) | (246.6 | ) | |||||||||||
Total Assets
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2,806.4 | 2,532.9 | 2,430.1 | 2,308.6 | 2,216.8 | ||||||||||||||||
Long-Term Debt
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673.0 | 475.0 | 330.5 | 559.0 | 754.9 | ||||||||||||||||
Shareholders’ Equity
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988.4 | 1,017.6 | 977.9 | 722.4 | 513.5 | ||||||||||||||||
Per Share Data
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Earnings Per Share (a-e)
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Diluted
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$ | 2.39 | $ | 3.47 | $ | 2.80 | $ | 2.41 | $ | 2.15 | |||||||||||
Basic
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$ | 2.43 | $ | 3.53 | $ | 2.86 | $ | 2.45 | $ | 2.20 | |||||||||||
Cash Dividends
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Class A Common
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$ | 0.96 | $ | 0.80 | $ | 0.64 | $ | 0.56 | $ | 0.52 | |||||||||||
Class B Common
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$ | 0.96 | $ | 0.80 | $ | 0.64 | $ | 0.56 | $ | 0.52 |
(a)
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In fiscal year 2013, the Company recorded restructuring charges of $29.3 million ($19.8 million after tax or $0.33 per share) and related impairment charges of $30.7 million ($21.1 million after tax or $0.35 per share).
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(b)
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In fiscal year 2013, the Company recorded a gain, net of losses, on the sale of certain Professional Development consumer publishing programs of $6.0 million ($2.6 million after tax or $0.04 per share).
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(c)
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In fiscal year 2011, the Company recorded a $9.3 million bad debt provision ($6.0 million after tax or $0.10 per share) related to the bankruptcy of a large book retailer “Borders”.
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(d)
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In fiscal year 2010, the Company recognized intangible asset impairment and restructuring charges of $15.1 million ($10.6 million after tax or $0.17 per share) principally related to GIT Verlag, a Business-to-Business German-language controlled circulation magazine business acquired in 2002.
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(e)
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Tax benefits and charges included in fiscal year results are as follows:
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Fiscal years 2013, 2012 and 2011 include tax benefits of $8.4 million ($0.14 per share), $8.8 million ($0.14 per share) and $4.2 million ($0.07 per share), respectively, principally associated with legislative reductions in the U.K. corporate income tax rates. The benefits reflect the remeasurement of all applicable U.K. deferred tax balances which are reflected at 23% as of April 30, 2013.
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Fiscal year 2013 includes a tax charge of $2.1 million ($0.04 per share) due to recently published IRS tax positions related to the Company’s ability to take certain deductions in the U.S.
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Fiscal year 2012 includes a tax benefit of $7.5 million ($0.12 per share) related to the reversal of an income tax reserve recorded in conjunction with the Blackwell acquisition.
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(f)
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The primary driver of the negative working capital is unearned deferred revenue related to subscriptions for which cash has been collected in advance. Cash received in advance for subscriptions is used by the Company for a number of purposes including paying down debt; funding operations; paying dividends; and purchasing treasury shares. The deferred revenue will be recognized in income as the products are shipped or made available online to the customers over the term of the subscription.
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Management’s Discussion and Analysis of Business, Financial Condition and Results of Operations
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Research:
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% change
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Dollars in thousands
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2013
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2012
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% change
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w/o FX (a)
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Journal Subscriptions
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$ | 641,584 | $ | 650,938 | -1% | 0% | |||||||||
Books
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164,750 | 179,204 | -8% | -7% | |||||||||||
Other Publishing Income
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203,491 | 210,585 | -3% | -1% | |||||||||||
TOTAL REVENUE
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$ | 1,009,825 | $ | 1,040,727 | -3% | -2% | |||||||||
Cost of Sales
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(271,405 | ) | (278,427 | ) | -3% | -1% | |||||||||
GROSS PROFIT
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738,420 | 762,300 | -3% | -2% | |||||||||||
Gross Profit Margin
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73.1% | 73.2% | |||||||||||||
Direct Expenses
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(274,714 | ) | (283,840 | ) | -3% | -2% | |||||||||
Amortization of Intangibles
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(26,915 | ) | (26,186 | ) | 3% | 4% | |||||||||
Restructuring Charges (see Note 10)
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(5,911 | ) | - | ||||||||||||
Impairment Charges (see Note 11)
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(9,917 | ) | - | ||||||||||||
DIRECT CONTRIBUTION TO PROFIT
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$ | 420,963 | $ | 452,274 | -7% | -2% | |||||||||
Direct Contribution Margin
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41.7% | 43.5% | |||||||||||||
Allocated Shared Services and Administrative Costs:
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|||||||||||||||
Distribution
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(46,009 | ) | (47,995 | ) | -4% | -3% | |||||||||
Technology Services
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(66,105 | ) | (65,734 | ) | 1% | 1% | |||||||||
Occupancy and Other
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(22,343 | ) | (21,085 | ) | 6% | 7% | |||||||||
CONTRIBUTION TO PROFIT
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$ | 286,506 | $ | 317,460 | -10% | -3% | |||||||||
Contribution Margin
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28.4% | 30.5% |
·
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Americas declined 1% to $388.2 million
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EMEA decreased 2% to $557.3 million
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Asia-Pacific decreased 3% to $64.3 million
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42 new society journals were signed with combined annual revenue of approximately $31 million
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81 renewals/extensions were signed with approximately $52 million in combined annual revenue
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4 journals were lost or not renewed with combined annual revenue of approximately $7 million
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23 journals for the American Geophysical Union, the world’s leading society of Earth and space science
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Journal of Brewing and Distilling and Brewer & Distiller International for the Institute of Brewing and Distilling (IBD)
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Journal of Engineering Education for the American Society for Engineering Education (ASEE)
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Journal of the Experimental Analysis of Behavior (JEAB) and the Journal of Applied Behavior Analysis (JABA) for the Society for Experimental Analysis of Behavior (SEAB)
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Psychoanalytic Quarterly previously self-published
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Journal of Hepato-Pancreatic-Biliary Sciences, for the Society of Hepato-Pancreatic-Biliary Surgery (Japan)
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Cell Biology International, the official journal of the International Federation for Cell Biology as well as the open access spin off journal Cell Biology International Reports previously published by Portland Press
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Asia and the Pacific Policy Studies which is a new-start, society-funded open access journal, co-owned with the Crawford School of Public Policy at the Australian National University
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Journal of Clinical Pharmacology for the American College of Clinical Pharmacology
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Mining + Geo in cooperation with the DGGT- German Society for Geotechnic
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Political Science Quarterly for the Academy of Political Science
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World Psychiatry for the World Psychiatric Association
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Geoscience Data Journal for the Royal Meteorological Society
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Australian and New Zealand Journal of Family Therapy for Australian Association of Family Therapy
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Respirology Case Reports, for the Asia Pacific Society of Respirology
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ACEP News for the American College of Emergency Physicians
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Clinical Neurology for the Japanese Society of Neurology
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Radiographer & Spectrum for five years from 2013
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Sexual Medicine and Sexual Medicine Reviews a new start for the International Society for Sexual Medicine
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In January 2013, Wiley acquired the assets of the FIZ Chemie Berlin, a provider of online database products for organic and industrial chemists. The products include the ChemInform weekly abstracting service and reaction database (CIRX), as well as the abstracting journal Chemisches Zentralblatt, the InfoTherm database of thermophysical properties, and eLearning tools and services.
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In May 2012, Wiley acquired Harlan Davidson Inc. (HDI), a small family owned publishing company in Wheeling, IL, for approximately $1.4 million. The acquisition builds on Wiley’s existing high quality American History portfolio, and strengthens growing curriculum areas such as World History, Atlantic History and State History. Fiscal year 2013 revenue generated by HDI was approximately $0.6 million.
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In October 2012, Wiley announced the results of an author survey on open access. Over ten thousand authors from Wiley’s journal portfolio responded to questions about gold open access, where their institution or funding body pays a fee to ensure the article is made open access. The research explored the factors that authors assess when deciding where to publish, and whether to publish gold open access. Among the top factors considered by authors were the relevance and scope of the journal, the journal’s impact factor and the international reach of the journal. Of the 10,600 respondents, 30% had published at least one gold open access paper, and 79% stated that open access was more prevalent in their discipline than three years ago. Among authors yet to publish open access, the list of reasons given included a lack of high profile open access journals (48%), lack of funding (44%) and concerns about quality (34%). Authors said they would publish in an open access journal if it had a high impact factor, if it were well regarded and if it had a rigorous peer review process. Wiley’s open access revenue grew approximately $4 million in fiscal year 2013. An open access option is available for individual journal articles to authors in 81% of the journals Wily publishes.
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In July 2012, Wiley announced that its open access option for individual journal articles, OnlineOpen, will be available to authors in 81% of the journals it publishes. For a publication service charge, OnlineOpen gives authors the option to publish an open access paper in their journal of choice where it will benefit from maximum impact. OnlineOpen, Wiley’s hybrid open access model for subscription journals launched in 2004, is available to authors of primary research articles who wish to make their article available to non-subscribers on publication, or whose funding agency requires grantees to archive the final version of their article. As of April 30, 2013, OnlineOpen is available in over 1,200 subscription journals.
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In June 2012, Wiley announced the creation of a new role, the Vice President and Director of Open Access, to lead the Company’s open access initiatives. Working with colleagues, societies, funders, and academic institutions, the role will facilitate the identification of open access opportunities and lead the development of products, policy, technology, processes, sales, and marketing initiatives necessary to provide first class support to authors.
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Professional Development (PD):
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% change
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Dollars in thousands
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2013
|
2012
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% change
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w/o FX (a)
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|||||||||||
Books
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$ | 339,693 | $ | 371,689 | -9% | -8% | |||||||||
Online Training & Assessment
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29,854 | 7,553 | |||||||||||||
Other Publishing Income
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46,948 | 48,320 | -3% | -2% | |||||||||||
TOTAL REVENUE
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$ | 416,495 | $ | 427,562 | -3% | -2% | |||||||||
Cost of Sales
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(151,239 | ) | (158,841 | ) | -5% | -4% | |||||||||
GROSS PROFIT
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265,256 | 268,721 | -1% | -1% | |||||||||||
Gross Profit Margin
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63.7% | 62.8% | |||||||||||||
Direct Expenses
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(153,411 | ) | (154,549 | ) | -1% | -1% | |||||||||
Amortization of Intangibles
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(8,092 | ) | (5,741 | ) | 41% | 41% | |||||||||
Restructuring Charges (see Note 10)
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(7,537 | ) | - | ||||||||||||
Impairment of Consumer Publishing Programs (see Note 11)
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(15,521 | ) | - | ||||||||||||
Net Gain on Sale of Consumer Publishing Programs (see Note 5)
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5,983 | - | |||||||||||||
DIRECT CONTRIBUTION TO PROFIT
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$ | 86,678 | $ | 108,431 | -20% | -4% | |||||||||
Direct Contribution Margin
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20.8% | 25.4% | |||||||||||||
Allocated Shared Services and Administrative Costs:
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|||||||||||||||
Distribution
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(40,664 | ) | (45,118 | ) | -10% | -9% | |||||||||
Technology Services
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(29,187 | ) | (25,248 | ) | 16% | 16% | |||||||||
Occupancy and Other
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(11,381 | ) | (13,011 | ) | -13% | -13% | |||||||||
CONTRIBUTION TO PROFIT
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$ | 5,446 | $ | 25,054 | -78% | -9% | |||||||||
Contribution Margin
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1.3% | 5.9% |
·
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Americas fell 3% to $328.6 million
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·
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EMEA was flat at $57.2 million
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Asia-Pacific fell 1% to $30.7 million
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Business grew 16% to $164.0 million, with solid growth from Inscape and the CFA product launch
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Divested Consumer titles fell 38% to $45.6 million
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Consumer-Lifelong Learning titles decreased 10% to $45.5 million
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Technology was flat with the prior year at $86.3 million
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Professional Education was flat at $27.7 million
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Architecture fell 7% to $23.2 million
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Psychology grew 4% to $13.4 million
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In August 2012, the Company acquired the assets of Trader’s Library for approximately $1.5 million, assuming sales for 154 products, mostly videos. Traders' Library is a book publishing and distribution company targeting the full spectrum of the investment arena - from individual investors and financial advisors to professional traders.
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In November 2012, the Company acquired Efficient Learning Systems, Inc. (“ELS”) an e-learning system provider focused in the areas of professional finance and accounting, for $24 million. The acquisition helps Wiley become a leader in the growing global online CPA exam preparation market and will accelerate our e-learning strategies with capabilities that can be leveraged with other accounting and financial certifications. Revenue report for fiscal year 2013 was $3.7 million, in line with expectations.
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In December 2012, the Company acquired the assets of Stevenson, Inc., a leading resource for newsletters and online events in fundraising, nonprofit management, and communications. The assets include six well-respected newsletters and a variety of online events. The acquisition will enable Wiley to expand its strategy for digital delivery of content to the growing nonprofit market globally, providing practical information to nonprofit professionals.
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In the third quarter of fiscal year 2013, Wiley signed a Financial Industry Regulatory Authority (FINRA) series test preparation agreement with the Securities Institute of America (SIA) to provide preparatory exam content for financial brokers and advisors.
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Tax Preparer launched in October 2012. RTRPTestBank.com contains 1000+ multiple choice questions that allow users studying for the Registered Tax Return Preparer exam to create unlimited practice tests and custom quizzes in a format similar to the actual exam. Candidates can purchase subscriptions through the marketing website, PasstheTaxExam.com, which also sells additional products and provides social features.
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CMA Review (1st of two phases) launched in October 2012, WileyCMA.com provides Certified Management Accountant exam candidates with review guides, practice software, study tips, and exam resources. In partnership with the Institute of Management Accountants (“IMA”), Wiley is responsible for production and sales of all CMA review titles.
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·
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Pfeiffer Assessment Platform Release – an upgrade in September 2012 added 2 new assessments to the website (Treasurer Self and Treasurer 360), improved registration functionality and enhanced certain administrative tools.
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·
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Sybex Video Training DVDs and Streaming Websites - released in September and October 2012, these products are available as DVD-ROMs, online streaming products, or as downloadable files. Using hands-on lessons with step-by-step instruction, the high-definition video training products cover the essential features of the top-selling software packages from Autodesk, a software and services developer for design, engineering and entertainment professionals.
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Education:
|
|||||||||||||||
% change
|
|||||||||||||||
Dollars in thousands
|
2013
|
2012
|
% change
|
w/o FX (a)
|
|||||||||||
Print Books
|
$ | 184,131 | $ | 215,679 | -15% | -14% | |||||||||
Non-Traditional & Digital Content
|
105,662 | 88,006 | 20% | 20% | |||||||||||
Online Program Management (Deltak)
|
33,745 | - | |||||||||||||
Other Publishing Income
|
10,920 | 10,768 | 1% | 3% | |||||||||||
TOTAL REVENUE
|
$ | 334,458 | $ | 314,453 | 6% | 7% | |||||||||
Cost of Sales
|
(109,588 | ) | (106,128 | ) | 3% | 4% | |||||||||
GROSS PROFIT
|
$ | 224,870 | $ | 208,325 | 8% | 8% | |||||||||
Gross Profit Margin
|
67.2% | 66.2% | |||||||||||||
Direct Expenses
|
(112,779 | ) | (95,791 | ) | 18% | 18% | |||||||||
Amortization of Intangibles
|
(6,975 | ) | (4,823 | ) | 45% | 45% | |||||||||
Restructuring Charges (see Note 10)
|
(1,288 | ) | - | ||||||||||||
DIRECT CONTRIBUTION TO PROFIT
|
$ | 103,828 | $ | 107,711 | -4% | -2% | |||||||||
Direct Contribution Margin
|
31.0% | 34.3% | |||||||||||||
Allocated Shared Services and Administrative Costs:
|
|||||||||||||||
Distribution
|
(15,277 | ) | (15,945 | ) | -4% | -4% | |||||||||
Technology Services
|
(30,727 | ) | (27,572 | ) | 11% | 11% | |||||||||
Occupancy and Other
|
(7,079 | ) | (5,771 | ) | 23% | 23% | |||||||||
CONTRIBUTION TO PROFIT
|
$ | 50,745 | $ | 58,423 | -13% | -11% | |||||||||
Contribution Margin
|
15.2% | 18.6% |
(a)
|
Adjusted to exclude the fiscal year 2013 restructuring charges.
|
·
|
Americas increased 11% to $250.6, including incremental Deltak revenue of $33.7 million
|
·
|
EMEA fell 10% to $19.4 million
|
·
|
Asia-Pacific fell 1% to $64.5 million
|
·
|
Engineering and Computer Science grew 4% to $43.2 million
|
·
|
Science declined 11% to $62.2 million
|
·
|
Business and Accounting declined 6% to $78.6 million
|
·
|
Social Science declined 4% to $49.2 million
|
·
|
Math declined 9% to $23.6 million
|
·
|
Microsoft Official Academic Course (MOAC) grew 4% to $10.9 million
|
% Change
|
|||||||||||||||
Dollars in thousands
|
2013
|
2012
|
% Change
|
w/o FX
|
|||||||||||
Distribution
|
$ | 102,078 | $ | 109,079 | -6% | -6% | |||||||||
Technology Services
|
159,063 | 144,418 | 10% | 11% | |||||||||||
Finance
|
43,822 | 45,106 | -3% | -2% | |||||||||||
Other Administration
|
87,281 | 89,394 | -2% | -2% | |||||||||||
Restructuring Charges (see Note 10)
|
14,557 | - | |||||||||||||
Impairment Charges (see Note 11)
|
5,241 | - | |||||||||||||
Total
|
$ | 412,042 | $ | 387,997 | 6% | 7% |
Research:
|
|||||||||||||||
|
% change
|
||||||||||||||
Dollars in thousands
|
2012
|
2011
|
% change
|
w/o FX
|
|||||||||||
Journal Subscriptions
|
$ | 650,938 | $ | 621,551 | 5% | 2% | |||||||||
Books
|
179,204 | 175,611 | 2% | 1% | |||||||||||
Other Publishing Income
|
210,585 | 201,740 | 4% | 3% | |||||||||||
TOTAL REVENUE
|
$ | 1,040,727 | $ | 998,902 | 4% | 2% | |||||||||
Cost of Sales
|
(278,427 | ) | (268,971 | ) | 4% | 2% | |||||||||
GROSS PROFIT
|
762,300 | 729,931 | 4% | 2% | |||||||||||
Gross Profit Margin
|
73.2% | 73.1% | |||||||||||||
Direct Expenses
|
(283,840 | ) | (280,028 | ) | 1% | 0% | |||||||||
Amortization of Intangibles
|
(26,186 | ) | (25,106 | ) | 4% | 4% | |||||||||
DIRECT CONTRIBUTION TO PROFIT
|
$ | 452,274 | $ | 424,797 | 6% | 4% | |||||||||
Direct Contribution Margin
|
43.5% | 42.5% | |||||||||||||
Allocated Shared Services and Administrative Costs:
|
|||||||||||||||
Distribution
|
(47,995 | ) | (52,101 | ) | -8% | -9% | |||||||||
Technology Services
|
(65,734 | ) | (63,820 | ) | 3% | 3% | |||||||||
Occupancy and Other
|
(21,085 | ) | (17,820 | ) | 18% | 16% | |||||||||
CONTRIBUTION TO PROFIT
|
$ | 317,460 | $ | 291,056 | 9% | 6% | |||||||||
Contribution Margin
|
30.5% | 29.1% |
·
|
Americas grew 3% to $392.1 million
|
·
|
EMEA grew 1% to $580.9 million
|
·
|
Asia-Pacific grew 4% to $67.7 million
|
·
|
24 new society journals were signed with combined annual revenue of approximately $9 million
|
·
|
103 renewals/extensions were signed with approximately $45 million in combined annual revenue
|
·
|
7 journals were not renewed in fiscal year 2012 which had combined annual revenue of approximately $1 million
|
·
|
The Reading Teacher, Journal of Adolescent & Adult Literacy, and Reading Research Quarterly, for the International Reading Association
|
·
|
TESOL Quarterly and TESOL Journal, for Teachers of English to Speakers of Other Languages (TESOL)
|
·
|
The Hastings Center Report, a leading journal in applied ethics, covering areas such as bioethics and the environment
|
·
|
Symbolic Interaction, for the Society for the Study of Symbolic Interaction
|
·
|
International Journal of Pediatric Obesity, for the International Association for the Study of Obesity
|
·
|
PsyCh Journal, for the Institute of Psychology, Chinese Academy of Sciences (IPCAS), China's national psychology research institute. The journal will be the first English-language Psychology journal to appear from China.
|
·
|
Four new titles added to our existing partnership with the Policy Studies Organisation: Policy & Internet, Poverty & Public Policy, Risk, Hazards & Crisis in Public Policy, and World Medical & Health Policy.
|
·
|
European Journal of Pain for the European Federation of IASP Chapters (EFIC)
|
·
|
Pharmacotherapy, for the American College of Clinical Pharmacists
|
·
|
Rehabilitation Nursing Journal, for the Association of Rehabilitation Nurses (ARN)
|
·
|
British Journal of Educational Technology, for the British Educational Research Association (BERA)
|
·
|
Oceania and Archaeology in Oceania, for the University of Sydney
|
·
|
Biology of the Cell for the French Society for Cell Biology and the French Society for Microscopy
|
·
|
Journal of the American Heart Association for the American Heart Association – the first open access online-only journal for the AHA. The online journal has been launched on-time and on-budget. This is a new society relationship for Research.
|
·
|
British Educational Research Journal (BERJ) and a new-start review journal for the British Educational Research Association (BERA). BERA is the largest educational research organization outside of the U.S., with 1,800 members.
|
·
|
Obesity, for The Obesity Society
|
·
|
Journal for the Society for Information Display (SID)
|
·
|
Strategic alliance with CECity, Inc. to provide healthcare professionals with new, customized quality and learning solutions. CECity provides healthcare information technology platforms that link job performance improvement, lifelong learning, and quality reporting to drive high-quality clinical outcomes and patient care. This partnership will employ CECity’s market-leading technology capabilities with Wiley’s quality content to develop personalized eLearning and job performance improvement services for healthcare professionals.
|
·
|
In September 2011, Wiley launched the Wiley Job Network – a new online recruitment tool that enables employers to attract talented applicants from high-caliber users in science, technology, healthcare, law, and business. Recruiters and employers who advertise jobs on our network of career sites reach a large pool of talented professionals and specialists who are regular users of one of the world’s leading research platforms, Wiley Online Library.
|
·
|
Digital revenue accounted for 61% of total Research revenue in fiscal year 2012.
|
·
|
The Wiley Job Network has surpassed 50,000 registered users and over 2 million job views since its launch in September.
|
·
|
Total articles accessed on Wiley Online Library increased 26%.
|
·
|
In June, Wiley announced that the number of journal titles with an impact factor in the Thomson ISI® 2010 Journal Citation Reports increased 7% to 1,087 titles, of which 317 are ranked in the top ten. Approximately 73% of Wiley’s journal portfolio has a reported impact factor. Impact Factor is a leading evaluator of journal influence and impact, as it reflects the frequency that peer-reviewed journals are cited by researchers.
|
Professional Development (PD):
|
|||||||||||||||
% change
|
|||||||||||||||
Dollars in thousands
|
2012
|
2011
|
% change
|
w/o FX (a)
|
|||||||||||
Books
|
$ | 371,689 | $ | 384,921 | -3% | -4% | |||||||||
Online Training & Assessment
|
7,553 | - | |||||||||||||
Other Publishing Income
|
48,320 | 46,077 | 5% | 5% | |||||||||||
TOTAL REVENUE
|
$ | 427,562 | $ | 430,998 | -1% | -1% | |||||||||
Cost of Sales
|
(158,841 | ) | (165,351 | ) | -4% | -4% | |||||||||
GROSS PROFIT
|
268,721 | 265,647 | 1% | 1% | |||||||||||
Gross Profit Margin
|
62.8% | 61.6% | |||||||||||||
Direct Expenses
|
(154,549 | ) | (159,047 | ) | -3% | -3% | |||||||||
Amortization of Intangibles
|
(5,741 | ) | (5,279 | ) | 9% | 9% | |||||||||
Additional Provision for Doubtful Trade Account (see Note 12)
|
- | (9,290 | ) | ||||||||||||
DIRECT CONTRIBUTION TO PROFIT
|
$ | 108,431 | $ | 92,031 | 18% | 7% | |||||||||
Direct Contribution Margin
|
25.4% | 21.4% | |||||||||||||
Allocated Shared Services and Administrative Costs:
|
|||||||||||||||
Distribution
|
(45,118 | ) | (46,519 | ) | -3% | -4% | |||||||||
Technology Services
|
(25,248 | ) | (23,858 | ) | 6% | 5% | |||||||||
Occupancy and Other
|
(13,011 | ) | (11,684 | ) | 11% | 11% | |||||||||
CONTRIBUTION TO PROFIT
|
$ | 25,054 | 9,970 | 151% | 32% | ||||||||||
Contribution Margin
|
5.9% | 2.3% |
·
|
Americas were flat at $337.7 million
|
·
|
EMEA fell 5% to $58.0 million
|
·
|
Asia-Pacific fell 1% to $31.9 million
|
·
|
Business grew 2% to $141.6 million
|
·
|
Consumer fell 6% to $123.1 million due in large part to Borders and the weak global economy
|
·
|
Technology fell 1% to $87.1 million
|
·
|
Professional Education was flat with the prior year at $28.0 million
|
·
|
Architecture was flat with the prior year at $25.0 million
|
·
|
Psychology declined 3% to $13.0 million
|
·
|
Digital revenue includes eBooks, online advertising, content-enabled services and content licensing.
|
·
|
Digital revenue accounted for 15% of total PD revenue, up from 10% in the prior year.
|
·
|
eBook sales increased approximately 70% over prior year to approximately $40 million, or 9% of total PD revenue. Strong eBook growth came from all accounts, notably Amazon, Barnes and Noble and Apple.
|
Education:
|
|||||||||||||||
% change
|
|||||||||||||||
Dollars in thousands
|
2012
|
2011
|
% change
|
w/o FX
|
|||||||||||
Print Books
|
$ | 215,679 | $ | 219,082 | -2% | -3% | |||||||||
Non-Traditional & Digital Content
|
88,006 | 83,893 | 5% | 5% | |||||||||||
Other Publishing Income
|
10,768 | 9,676 | 11% | 6% | |||||||||||
TOTAL REVENUE
|
$ | 314,453 | $ | 312,651 | 1% | -1% | |||||||||
Cost of Sales
|
(106,128 | ) | (104,721 | ) | 1% | 0% | |||||||||
GROSS PROFIT
|
$ | 208,325 | $ | 207,930 | 0% | -1% | |||||||||
Gross Profit Margin
|
66.2% | 66.5% | |||||||||||||
Direct Expenses
|
(95,791 | ) | (98,583 | ) | -3% | -4% | |||||||||
Amortization of Intangibles
|
(4,823 | ) | (4,838 | ) | 0% | 0% | |||||||||
DIRECT CONTRIBUTION TO PROFIT
|
$ | 107,711 | $ | 104,509 | 3% | 2% | |||||||||
Direct Contribution Margin
|
34.3% | 33.4% | |||||||||||||
Allocated Shared Services and Administrative Costs:
|
|||||||||||||||
Distribution
|
(15,945 | ) | (14,393 | ) | 11% | 8% | |||||||||
Technology Services
|
(27,572 | ) | (21,840 | ) | 26% | 26% | |||||||||
Occupancy and Other
|
(5,771 | ) | (5,179 | ) | 11% | 8% | |||||||||
CONTRIBUTION TO PROFIT
|
$ | 58,423 | $ | 63,097 | -7% | -9% | |||||||||
Contribution Margin
|
18.6% | 20.2% |
·
|
Americas grew 1% to $226.9 million
|
·
|
EMEA fell 9% to $21.7 million
|
·
|
Asia-Pacific fell 3% to $65.8 million
|
·
|
Engineering and Computer Science fell 1% to $41.8 million
|
·
|
Science grew 3% to $70.1 million
|
·
|
Business and Accounting was flat with the prior year at $84.0 million
|
·
|
Social Science declined 6% to $51.4 million
|
·
|
Math fell 4% to $25.9 million
|
·
|
Microsoft Official Academic Couse (MOAC) decreased 4% to $10.6 million
|
·
|
An alliance agreement was signed with Blackboard, which will provide instructors and students with direct access to WileyPLUS through the Blackboard learning management system. The collaboration will provide a seamless experience between Wiley course materials and the campus environment. In addition, thirty-one institutions are evaluating a new integration for using digital learning content from Wiley with Blackboard Inc.’s learning management system (LMS). The field trial gives students and faculty access to Wiley’s rich collection of learning content and tools directly within their online course environment. The field trial involves students, faculty and campus administrators across 42 courses at two and four-year higher education institutions in the U.S. and Canada. The integration is expected to be fully available globally in summer 2012. In March 2012, the Company signed a new partnership with the National Environmental Health Association (NEHA), MindLeaders, and Prometric to offer Food Safety training and certification. The three partners are leaders in their fields: NEHA is a 70-year old association of health departments, concentrating on the inspection of restaurants and foodservice operations in the area of food safety; MindLeaders is a global e-Learning company; and Prometric is a worldwide leader in testing and certification.
|
·
|
Wiley acquired the newsletter National Teaching & Learning Forum (NTLF) and launched two 2012 NTLF issues on Wiley Online Library in March. The NTLF is a subscription fee-based newsletter that serves to “create a sustained and sustaining conversation about teaching and learning.”
|
·
|
Digital revenue accounted for 16% of Education’s business in fiscal year 2012.
|
·
|
Revenue for WileyPLUS fell 2% to approximately $32 million mainly due to a sharp decline in for-profit enrolment.
|
·
|
eBook sales grew 36% to approximately $17 million.
|
% Change
|
|||||||||||||||||
Dollars in thousands
|
2012
|
2011
|
% Change
|
w/o FX
|
|||||||||||||
Distribution
|
$ | 109,079 | $ | 113,010 | -3% | -5% | |||||||||||
Technology Services
|
144,418 | 125,766 | 15% | 14% | |||||||||||||
Finance
|
45,106 | 45,243 | 0% | -2% | |||||||||||||
Other Administration
|
89,394 | 89,170 | 0% | -1% | |||||||||||||
Total
|
$ | 387,997 | $ | 373,189 | 4% | 3% |
2013
|
2012
|
||||||||
Accounts Receivable
|
$ | (44,279 | ) | $ | (48,612 | ) | |||
Inventory
|
6,862 | 7,246 | |||||||
Accounts and Royalties Payable
|
(5,583 | ) | (5,593 | ) | |||||
Decrease in Net Assets
|
$ | (31,834 | ) | $ | (35,773 | ) |
Payments Due by Period
|
||||||||||||||||||||
Within
|
2-3 | 4-5 |
After 5
|
|||||||||||||||||
Total
|
Year 1
|
Years
|
Years
|
Years
|
||||||||||||||||
Total Debt
|
$ | 673.0 | $ | - | $ | - | $ | 673.0 | $ | - | ||||||||||
Interest on Debt1
|
$ | 35.1 | $ | 10.6 | $ | 19.7 | $ | 4.8 | $ | - | ||||||||||
Non-Cancelable Leases
|
$ | 230.5 | $ | 41.1 | $ | 75.3 | $ | 59.4 | $ | 54.7 | ||||||||||
Minimum Royalty Obligations
|
$ | 289.3 | $ | 69.7 | $ | 116.4 | $ | 78.2 | $ | 25.0 | ||||||||||
Other Operating Commitments
|
$ | 31.3 | $ | 5.9 | $ | 13.0 | $ | 12.4 | $ | - | ||||||||||
Total
|
$ | 1,259.2 | $ | 127.3 | $ | 224.4 | $ | 827.8 | $ | 79.7 |
/s/ Stephen M. Smith | |
Stephen M. Smith
|
|
President and Chief Executive Officer
|
|
/s/ Ellis E. Cousens | |
Ellis E. Cousens
|
|
Executive Vice President and
|
|
Chief Financial and Operations Officer
|
|
/s/ Edward J. Melando | |
Edward J. Melando
|
|
Senior Vice President, Controller and
|
|
Chief Accounting Officer
|
|
June 26, 2013
|
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
|||||||||
John Wiley & Sons, Inc., and Subsidiaries
|
April 30
|
||||||||
Dollars in thousands
|
2013
|
2012
|
|||||||
Assets:
|
|||||||||
Current Assets
|
|||||||||
Cash and cash equivalents
|
$ | 334,140 | $ | 259,830 | |||||
Accounts receivable
|
161,731 | 171,561 | |||||||
Inventories
|
82,017 | 101,237 | |||||||
Prepaid and other
|
57,083 | 41,972 | |||||||
Total Current Assets
|
634,971 | 574,600 | |||||||
Product Development Assets
|
87,876 | 108,414 | |||||||
Technology, Property & Equipment
|
189,625 | 187,979 | |||||||
Intangible Assets
|
954,957 | 915,495 | |||||||
Goodwill
|
835,540 | 690,619 | |||||||
Other Assets
|
103,406 | 55,839 | |||||||
Total Assets
|
$ | 2,806,375 | $ | 2,532,946 | |||||
Liabilities and Shareholders’ Equity:
|
|||||||||
Current Liabilities
|
|||||||||
Accounts and royalties payable
|
$ | 143,313 | $ | 151,350 | |||||
Deferred revenue
|
362,970 | 342,034 | |||||||
Accrued employment costs
|
85,306 | 64,482 | |||||||
Accrued income taxes
|
16,093 | 18,812 | |||||||
Accrued pension liability
|
4,359 | 3,589 | |||||||
Other accrued liabilities
|
55,128 | 60,663 | |||||||
Total Current Liabilities
|
667,169 | 640,930 | |||||||
Long-Term Debt
|
673,000 | 475,000 | |||||||
Accrued Pension Liability
|
204,362 | 145,815 | |||||||
Deferred Income Tax Liabilities
|
197,526 | 181,716 | |||||||
Other Long-Term Liabilities
|
75,962 | 71,917 | |||||||
Shareholders’ Equity
|
|||||||||
Preferred Stock, $1 par value: Authorized - 2 million, Issued - zero
|
- | - | |||||||
Class A Common Stock, $1 par value: Authorized - 180 million,
|
|||||||||
Issued – 69,793,194 and 69,753,370
|
69,793 | 69,753 | |||||||
Class B Common Stock, $1 par value: Authorized - 72 million,
|
|||||||||
Issued – 13,397,068 and 13,436,892
|
13,397 | 13,437 | |||||||
Additional paid-in capital
|
290,762 | 271,809 | |||||||
Retained earnings
|
1,387,512 | 1,300,713 | |||||||
Accumulated other comprehensive loss:
|
|||||||||
Foreign currency translation adjustment
|
(134,539 | ) | (95,981 | ) | |||||
Unamortized retirement costs, net of tax
|
(143,124 | ) | (103,381 | ) | |||||
Unrealized loss on interest rate swap, net of tax
|
(969 | ) | (1,048 | ) | |||||
1,482,832 | 1,455,302 | ||||||||
Less Treasury Shares At Cost (Class A – 20,616,829 and 19,771,896;
|
|||||||||
Class B – 3,902,576 and 3,902,576)
|
(494,476 | ) | (437,734 | ) | |||||
Total Shareholders’ Equity
|
988,356 | 1,017,568 | |||||||
Total Liabilities and Shareholders’ Equity
|
$ | 2,806,375 | $ | 2,532,946 | |||||
The accompanying notes are an integral part of the consolidated financial statements.
|
CONSOLIDATED STATEMENTS OF INCOME
|
|||||||||||||
John Wiley & Sons, Inc., and Subsidiaries
|
For the years ended April 30,
|
||||||||||||
Dollars in thousands, except per share data
|
2013
|
2012
|
2011
|
||||||||||
Revenue
|
$ | 1,760,778 | $ | 1,782,742 | $ | 1,742,551 | |||||||
Costs and Expenses
|
|||||||||||||
Cost of sales
|
532,232 | 543,396 | 539,043 | ||||||||||
Operating and administrative expenses
|
933,148 | 922,177 | 910,847 | ||||||||||
Restructuring charges
|
29,293 | - | - | ||||||||||
Impairment charges
|
30,679 | - | - | ||||||||||
Additional provision for doubtful trade account
|
- | - | 9,290 | ||||||||||
Amortization of intangibles
|
41,982 | 36,750 | 35,223 | ||||||||||
Total Costs and Expenses
|
1,567,334 | 1,502,323 | 1,494,403 | ||||||||||
Net Gain on Sale of Consumer Publishing Programs
|
5,983 | - | - | ||||||||||
Operating Income
|
199,427 | 280,419 | 248,148 | ||||||||||
Interest expense
|
(13,078 | ) | (9,038 | ) | (17,322 | ) | |||||||
Foreign exchange transaction losses
|
(2,041 | ) | (2,261 | ) | (2,188 | ) | |||||||
Interest income and other
|
2,614 | 2,975 | 2,422 | ||||||||||
Income Before Taxes
|
186,922 | 272,095 | 231,060 | ||||||||||
Provision for Income Taxes
|
42,697 | 59,349 | 59,171 | ||||||||||
Net Income
|
$ | 144,225 | $ | 212,746 | $ | 171,889 | |||||||
Earnings Per Share
|
|||||||||||||
Diluted
|
$ | 2.39 | $ | 3.47 | $ | 2.80 | |||||||
Basic
|
2.43 | 3.53 | 2.86 | ||||||||||
Cash Dividends Per Share
|
|||||||||||||
Class A Common
|
$ | 0.96 | $ | 0.80 | $ | 0.64 | |||||||
Class B Common
|
0.96 | 0.80 | 0.64 | ||||||||||
Average Shares
|
|||||||||||||
Diluted
|
60,224 | 61,272 | 61,359 | ||||||||||
Basic
|
59,447 | 60,184 | 60,160 | ||||||||||
The accompanying notes are an integral part of the consolidated financial statements.
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|||||||||||||
John Wiley & Sons, Inc., and Subsidiaries
|
For the years ended April 30,
|
||||||||||||
Dollars in thousands
|
2013
|
2012
|
2011
|
||||||||||
Net Income
|
$ | 144,225 | $ | 212,746 | $ | 171,889 | |||||||
Other Comprehensive Income/(Loss):
|
|||||||||||||
Foreign currency translation adjustment
|
(38,558 | ) | (30,173 | ) | 76,923 | ||||||||
Unamortized retirement costs, net of tax benefit/
(provision) of $16,145; $18,463 and ($7,490), respectively
|
(39,743 | ) | (41,745 | ) | 19,317 | ||||||||
Unrealized gain/(loss) on interest rate swaps,
net of tax benefit/(provision) of ($62); $453 and ($2,208), respectively
|
79 | (751 | ) | 3,665 | |||||||||
Total Other Comprehensive Income/(Loss)
|
(78,222 | ) | (72,669 | ) | 99,905 | ||||||||
Comprehensive Income
|
$ | 66,003 | $ | 140,077 | $ | 271,794 | |||||||
The accompanying notes are an integral part of the consolidated financial statements.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||||||
John Wiley & Sons, Inc., and Subsidiaries
|
For the years ended April 30,
|
||||||||||||
Dollars in thousands
|
2013
|
2012
|
2011
|
||||||||||
Operating Activities
|
|||||||||||||
Net Income
|
$ | 144,225 | $ | 212,746 | $ | 171,889 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities
|
|||||||||||||
Amortization of intangibles
|
41,982 | 36,750 | 35,223 | ||||||||||
Amortization of composition costs
|
51,517 | 50,944 | 51,421 | ||||||||||
Depreciation of technology, property and equipment
|
56,017 | 50,397 | 45,862 | ||||||||||
Restructuring and impairment charges
|
59,972 | - | - | ||||||||||
Net gain on sale of consumer publishing programs
|
(5,983 | ) | - | - | |||||||||
Stock-based compensation
|
11,928 | 17,262 | 17,719 | ||||||||||
Excess tax benefits from stock-based compensation
|
(193 | ) | (2,044 | ) | (4,816 | ) | |||||||
Reserves for returns, doubtful accounts, and obsolescence
|
987 | (3,736 | ) | 13,739 | |||||||||
Non-cash deferred tax benefits on U.K. rate changes
|
(8,402 | ) | (8,769 | ) | (4,155 | ) | |||||||
Other changes in deferred income taxes
|
(8,846 | ) | 11,799 | 9,862 | |||||||||
One-time tax charge/(benefit) on tax reserves
|
2,110 | (7,524 | ) | - | |||||||||
Foreign exchange transaction losses
|
2,041 | 2,261 | 2,188 | ||||||||||
Pension expense
|
26,755 | 20,975 | 25,633 | ||||||||||
Royalty advances
|
(105,335 | ) | (108,716 | ) | (101,702 | ) | |||||||
Earned royalty advances
|
100,691 | 100,639 | 93,016 | ||||||||||
Changes in Operating Assets and Liabilities
|
|||||||||||||
Source/(Use), excluding acquisitions
|
|||||||||||||
Accounts receivable
|
18,118 | 9,605 | (5,584 | ) | |||||||||
Inventories
|
11,501 | 4,467 | 7,453 | ||||||||||
Accounts and royalties payable
|
(5,748 | ) | 540 | 6,425 | |||||||||
Deferred revenue
|
32,822 | 19,381 | 32,032 | ||||||||||
Income taxes payable
|
1,429 | 27,835 | 16,204 | ||||||||||
Other accrued liabilities
|
(11,762 | ) | (37,076 | ) | (7,810 | ) | |||||||
Pension contributions
|
(27,521 | ) | (24,939 | ) | (24,782 | ) | |||||||
Income tax deposit
|
(42,077 | ) | - | - | |||||||||
Other
|
(9,191 | ) | 6,851 | (4,198 | ) | ||||||||
Cash Provided by Operating Activities
|
337,037 | 379,648 | 375,619 | ||||||||||
Investing Activities
|
|||||||||||||
Composition spending
|
(50,434 | ) | (52,501 | ) | (51,471 | ) | |||||||
Additions to technology, property and equipment
|
(58,704 | ) | (67,377 | ) | (54,393 | ) | |||||||
Acquisitions, net of cash acquired
|
(263,272 | ) | (92,174 | ) | (7,166 | ) | |||||||
Proceeds from sale of consumer publishing programs
|
29,942 | - | - | ||||||||||
Cash Used for Investing Activities
|
(342,468 | ) | (212,052 | ) | (113,030 | ) | |||||||
Financing Activities
|
|||||||||||||
Repayment of long-term debt
|
(472,500 | ) | (888,411 | ) | (504,800 | ) | |||||||
Borrowings of long-term debt
|
670,500 | 909,211 | 310,000 | ||||||||||
Purchase of treasury stock
|
(73,721 | ) | (87,072 | ) | (27,958 | ) | |||||||
Change in book overdrafts
|
(451 | ) | (4,414 | ) | (1,185 | ) | |||||||
Cash dividends
|
(57,426 | ) | (48,257 | ) | (38,764 | ) | |||||||
Debt financing costs
|
(382 | ) | (3,119 | ) | - | ||||||||
Proceeds from exercise of stock options and other
|
24,188 | 15,303 | 27,847 | ||||||||||
Excess tax benefits from stock-based compensation
|
193 | 2,044 | 4,816 | ||||||||||
Cash Provided by (Used for) Financing Activities
|
90,401 | (104,715 | ) | (230,044 | ) | ||||||||
Effects of Exchange Rate Changes on Cash
|
(10,660 | ) | (4,904 | ) | 15,795 | ||||||||
Cash and Cash Equivalents
|
|||||||||||||
Increase for year
|
74,310 | 57,977 | 48,340 | ||||||||||
Balance at beginning of year
|
259,830 | 201,853 | 153,513 | ||||||||||
Balance at end of year
|
334,140 | 259,830 | 201,853 | ||||||||||
Cash Paid During the Year for
|
|||||||||||||
Interest
|
$ | 12,081 | $ | 7,745 | $ | 19,686 | |||||||
Income taxes, net
|
$ | 56,021 | $ | 42,841 | $ | 37,822 | |||||||
The accompanying notes are an integral part of the consolidated financial statements.
|
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
|
|||||||||||||||||||||||||||||
Common
Stock
Class A
|
Common
Stock
Class B
|
Additional
Paid-in
Capital
|
Retained
Earnings
|
Treasury
Stock
|
Accumulated
Other Comp-
rehensive
Income
(Loss)
|
Total
Share-
holder’s
Equity
|
|||||||||||||||||||||||
John Wiley & Sons, Inc., and Subsidiaries
|
|||||||||||||||||||||||||||||
Dollars in thousands
|
|||||||||||||||||||||||||||||
Balance at April 30, 2010
|
$ | 69,706 | $ | 13,485 | $ | 210,848 | $ | 1,003,099 | $ | (347,056 | ) | $ | (227,646 | ) | $ | 722,436 | |||||||||||||
Shares Issued Under Employee Benefit Plans
|
(3,321 | ) | 4,524 | 1,203 | |||||||||||||||||||||||||
Purchase of Treasury Shares
|
(27,958 | ) | (27,958 | ) | |||||||||||||||||||||||||
Exercise of Stock Options, including taxes
|
21,800 | 9,660 | 31,460 | ||||||||||||||||||||||||||
Stock-based compensation expense
|
17,719 | 17,719 | |||||||||||||||||||||||||||
Class A Common Stock Dividends
|
(32,648 | ) | (32,648 | ) | |||||||||||||||||||||||||
Class B Common Stock Dividends
|
(6,116 | ) | (6,116 | ) | |||||||||||||||||||||||||
Other
|
43 | (44 | ) | (1 | ) | ||||||||||||||||||||||||
Comprehensive Income
|
171,889 | 99,905 | 271,794 | ||||||||||||||||||||||||||
Balance at April 30, 2011
|
$ | 69,749 | $ | 13,441 | $ | 247,046 | $ | 1,136,224 | $ | (360,830 | ) | $ | (127,741 | ) | $ | 977,889 | |||||||||||||
Shares Issued Under Employee Benefit Plans
|
(1,622 | ) | 3,042 | 1,420 | |||||||||||||||||||||||||
Purchase of Treasury Shares
|
(87,072 | ) | (87,072 | ) | |||||||||||||||||||||||||
Exercise of Stock Options, including taxes
|
9,123 | 7,126 | 16,249 | ||||||||||||||||||||||||||
Stock-based compensation expense
|
17,262 | 17,262 | |||||||||||||||||||||||||||
Class A Common Stock Dividends
|
(40,627 | ) | (40,627 | ) | |||||||||||||||||||||||||
Class B Common Stock Dividends
|
(7,630 | ) | (7,630 | ) | |||||||||||||||||||||||||
Other
|
4 | (4 | ) | - | |||||||||||||||||||||||||
Comprehensive Income (Loss)
|
212,746 | (72,669 | ) | 140,077 | |||||||||||||||||||||||||
Balance at April 30, 2012
|
$ | 69,753 | $ | 13,437 | $ | 271,809 | $ | 1,300,713 | $ | (437,734 | ) | $ | (200,410 | ) | $ | 1,017,568 | |||||||||||||
Shares Issued Under Employee Benefit Plans
|
(4,821 | ) | 6,005 | 1,184 | |||||||||||||||||||||||||
Purchase of Treasury Shares
|
(73,721 | ) | (73,721 | ) | |||||||||||||||||||||||||
Exercise of Stock Options, including taxes
|
11,846 | 10,974 | 22,820 | ||||||||||||||||||||||||||
Stock-based compensation expense
|
11,928 | 11,928 | |||||||||||||||||||||||||||
Class A Common Stock Dividends
|
(48,290 | ) | (48,290 | ) | |||||||||||||||||||||||||
Class B Common Stock Dividends
|
(9,136 | ) | (9,136 | ) | |||||||||||||||||||||||||
Other
|
40 | (40 | ) | - | |||||||||||||||||||||||||
Comprehensive Income (Loss)
|
144,225 | (78,222 | ) | 66,003 | |||||||||||||||||||||||||
Balance at April 30, 2013
|
$ | 69,793 | $ | 13,397 | $ | 290,762 | $ | 1,387,512 | $ | (494,476 | ) | $ | (278,632 | ) | $ | 988,356 | |||||||||||||
The accompanying notes are an integral part of the consolidated financial statements.
|
2013
|
2012
|
||||||||
Accounts Receivable
|
$ | (44,279 | ) | $ | (48,612 | ) | |||
Inventory
|
6,862 | 7,246 | |||||||
Accounts and Royalties Payable
|
(5,583 | ) | (5,593 | ) | |||||
Decrease in Net Assets
|
$ | (31,834 | ) | $ | (35,773 | ) |
2013
|
2012
|
2011
|
|||||||||||
Weighted Average Shares Outstanding
|
59,672 | 60,387 | 60,515 | ||||||||||
Less: Unearned Restricted Shares
|
(225 | ) | (203 | ) | (355 | ) | |||||||
Shares Used for Basic Earnings Per Share
|
59,447 | 60,184 | 60,160 | ||||||||||
Dilutive Effect of Stock Options and Other Stock Awards
|
777 | 1,088 | 1,199 | ||||||||||
Shares Used for Diluted Earnings Per Share
|
60,224 | 61,272 | 61,359 |
2013
|
2012
|
||||||||
Finished Goods
|
$ | 68,040 | $ | 86,954 | |||||
Work-in-Process
|
5,890 | 6,487 | |||||||
Paper, Cloth, and Other
|
6,577 | 8,072 | |||||||
80,507 | 101,513 | ||||||||
Inventory Value of Estimated Sales Returns
|
6,862 | 7,246 | |||||||
LIFO Reserve
|
(5,352 | ) | (7,522 | ) | |||||
Total Inventories
|
$ | 82,017 | $ | 101,237 |
2013
|
2012
|
||||||||
Composition Costs
|
$ | 48,861 | $ | 54,844 | |||||
Royalty Advances
|
39,015 | 53,570 | |||||||
Total
|
$ | 87,876 | $ | 108,414 |
2013
|
2012
|
||||||||
Capitalized Software and Computer Hardware
|
$ | 423,247 | $ | 379,034 | |||||
Buildings and Leasehold Improvements
|
98,846 | 98,635 | |||||||
Furniture, Fixtures and Warehouse Equipment
|
82,739 | 82,678 | |||||||
Land and Land Improvements
|
4,025 | 4,187 | |||||||
608,857 | 564,534 | ||||||||
Accumulated Depreciation/Amortization
|
(419,232 | ) | (376,555 | ) | |||||
Total
|
$ | 189,625 | $ | 187,979 |
2012
|
Acquisitions
|
Divestments
|
Foreign
Translation Adjustment
|
2013
|
|||||||||||||||||
Research
|
$ | 473,209 | $ | - | $ | - | $ | (16,626 | ) | $ | 456,583 | ||||||||||
Professional Development
|
217,410 | 17,026 | (5,117 | ) | (332 | ) | 228,987 | ||||||||||||||
Education
|
- | 149,970 | - | - | 149,970 | ||||||||||||||||
Total
|
$ | 690,619 | $ | 166,996 | $ | (5,117 | ) | $ | (16,958 | ) | $ | 835,540 |
2013
|
2012
|
||||||||||||||||
Cost
|
Accumulated
Amortization
|
Cost
|
Accumulated Amortization
|
||||||||||||||
Intangible Assets with Determinable Lives
|
|||||||||||||||||
Content and Publishing Rights
|
$ | 790,881 | $ | (260,947 | ) | $ | 794,986 | $ | (227,934 | ) | |||||||
Customer Relationships
|
179,336 | (23,634 | ) | 83,477 | (17,240 | ) | |||||||||||
Brands & Trademarks
|
25,700 | (11,894 | ) | 22,374 | (8,401 | ) | |||||||||||
Covenants not to Compete
|
1,840 | (782 | ) | 790 | (484 | ) | |||||||||||
997,757 | (297,257 | ) | 901,627 | (254,059 | ) | ||||||||||||
Intangible Assets with Indefinite Lives
|
|||||||||||||||||
Brands & Trademarks
|
153,747 | - | 165,896 | - | |||||||||||||
Content and Publishing Rights
|
100,710 | - | 102,031 | - | |||||||||||||
$ | 1,252,214 | $ | (297,257 | ) | $ | 1,169,554 | $ | (254,059 | ) |
2013
|
2012
|
2011
|
|||||||||||
Current Provision
|
|||||||||||||
US – Federal
|
$ | 23,835 | $ | 11,253 | $ | 15,563 | |||||||
International
|
34,019 | 43,017 | 35,913 | ||||||||||
State and Local
|
2,091 | 2,049 | 1,988 | ||||||||||
Total Current Provision
|
$ | 59,945 | $ | 56,319 | $ | 53,464 | |||||||
Deferred Provision (Benefit)
|
|||||||||||||
US – Federal
|
$ | (11,312 | ) | $ | 9,736 | $ | 6,164 | ||||||
International
|
(5,553 | ) | (7,820 | ) | 2,040 | ||||||||
State and Local
|
(383 | ) | 1,114 | (2,497 | ) | ||||||||
Total Deferred Provision (Benefit)
|
$ | (17,248 | ) | $ | 3,030 | $ | 5,707 | ||||||
Total Provision
|
$ | 42,697 | $ | 59,349 | $ | 59,171 |
2013
|
2012
|
2011
|
|||||||||||
International
|
$ | 156,114 | $ | 171,315 | $ | 162,767 | |||||||
United States
|
30,808 | 100,780 | 68,293 | ||||||||||
Total
|
$ | 186,922 | $ | 272,095 | $ | 231,060 |
2013
|
2012
|
2011
|
|||||||||||
U.S. Federal Statutory Rate
|
35.0% | 35.0% | 35.0% | ||||||||||
Benefit from Lower Taxes on Non-US Income
|
(9.3 | ) | (6.8 | ) | (7.6 | ) | |||||||
State Income Taxes, Net of U.S. Federal Tax Benefit
|
0.6 | 0.8 | (0.1 | ) | |||||||||
Deferred Tax Benefit From Statutory Tax Rate Change
|
(4.5 | ) | (3.2 | ) | (1.8 | ) | |||||||
Tax Adjustments
|
0.7 | (4.0 | ) | (0.9 | ) | ||||||||
Other
|
0.3 | - | 1.0 | ||||||||||
Effective Income Tax Rate
|
22.8% | 21.8% | 25.6% |
2013
|
2012
|
||||||||
Balance at May 1st
|
$ | 24,252 | $ | 38,100 | |||||
Additions for Current Year Tax Positions
|
1,182 | 375 | |||||||
Additions for Prior Year Tax Positions
|
2,749 | 1,105 | |||||||
Reductions for Prior Year Tax Positions
|
(906 | ) | (1,521 | ) | |||||
Foreign Translation Adjustment
|
(291 | ) | (1,681 | ) | |||||
Payments
|
(1,089 | ) | - | ||||||
Reductions for Lapse of Statute of Limitations
|
(396 | ) | (12,126 | ) | |||||
Balance at April 30th
|
$ | 25,501 | $ | 24,252 |
2013
|
2012
|
||||||||
Inventory
|
$ | 8,328 | $ | 7,185 | |||||
Intangible and Fixed Assets
|
301,239 | 276,035 | |||||||
Total Deferred Tax Liabilities
|
$ | 309,567 | $ | 283,220 | |||||
Net Operating Losses
|
$ | 5,813 | $ | 6,297 | |||||
Reserve for Sales Returns and Doubtful Accounts
|
6,297 | 5,577 | |||||||
Accrued Expenses
|
11,849 | 6,157 | |||||||
Accrued Employee Compensation
|
35,505 | 30,946 | |||||||
Retirement and Post-Employment Benefits
|
64,680 | 48,188 | |||||||
Total Deferred Tax Assets
|
$ | 124,144 | $ | 97,165 | |||||
Net Deferred Tax Liabilities
|
$ | 185,423 | $ | 186,055 |
Reported As
|
|||||||||
Current Deferred Tax Assets
|
$ | 5,513 | $ | 219 | |||||
Non-current Deferred Tax Assets
|
6,590 | 6,996 | |||||||
Current Deferred Tax Liabilities
|
- | 11,554 | |||||||
Non-current Deferred Tax Liabilities
|
197,526 | 181,716 | |||||||
Net Deferred Tax Liabilities
|
$ | 185,423 | $ | 186,055 | |||||
2013
|
2012
|
2011
|
||||||||||
Minimum Rental
|
$ | 41,899 | $ | 43,620 | $ | 39,676 | ||||||
Less: Sublease Rentals
|
(554 | ) | (501 | ) | (665 | ) | ||||||
Total
|
$ | 41,345 | $ | 43,119 | $ | 39,011 |
United States
|
Non-U.S.
|
Total
|
||||||||||
Actuarial Loss
|
$ | 6,257 | $ | 7,338 | $ | 13,595 | ||||||
Prior Service Cost
|
- | 121 | 121 | |||||||||
Total
|
$ | 6,257 | $ | 7,459 | $ | 13,716 |
2013
|
2012
|
2011
|
|||||||||||||||||||||||
U.S.
|
Non-U.S.
|
U.S.
|
Non-U.S.
|
U.S.
|
Non-U.S.
|
||||||||||||||||||||
Service Cost
|
$ | 12,701 | $ | 6,204 | $ | 9,951 | $ | 6,062 | $ | 9,591 | $ | 6,681 | |||||||||||||
Interest Cost
|
12,032 | 15,784 | 12,042 | 15,862 | 10,758 | 16,118 | |||||||||||||||||||
Expected Return on Plan Assets
|
(12,927 | ) | (17,975 | ) | (11,679 | ) | (17,412 | ) | (10,118 | ) | (15,542 | ) | |||||||||||||
Net Amortization of Prior Service Cost and Transition Asset
|
854 | 127 | 902 | 133 | 770 | 117 | |||||||||||||||||||
Recognized Net Actuarial Loss
|
6,050 | 3,905 | 4,444 | 670 | 4,343 | 2,915 | |||||||||||||||||||
Curtailment Loss
|
2,681 | - | - | - | - | - | |||||||||||||||||||
Net Pension Expense
|
$ | 21,391 | $ | 8,045 | $ | 15,660 | $ | 5,315 | $ | 15,344 | $ | 10,289 | |||||||||||||
Discount Rate
|
4.7% | 5.0% | 5.7% | 5.6% | 5.9% | 5.7% | |||||||||||||||||||
Rate of Compensation Increase
|
3.1% | 3.4% | 4.0% | 4.4% | 4.0% | 4.6% | |||||||||||||||||||
Expected Return on Plan Assets
|
8.0% | 6.8% | 8.0% | 6.8% | 8.5% | 6.8% |
Dollars in thousands
|
2013
|
2012
|
|||||||||||||||
CHANGE IN PLAN ASSETS
|
U.S.
|
Non-U.S.
|
U.S.
|
Non-U.S.
|
|||||||||||||
Fair Value of Plan Assets, Beginning of Year
|
$ | 160,396 | $ | 270,329 | $ | 144,887 | $ | 268,268 | |||||||||
Actual Return on Plan Assets
|
22,161 | 40,844 | 9,676 | 8,033 | |||||||||||||
Employer Contributions
|
13,210 | 14,311 | 15,656 | 9,283 | |||||||||||||
Employees’ Contributions
|
- | 1,892 | - | 1,937 | |||||||||||||
Benefits Paid
|
(9,240 | ) | (6,907 | ) | (9,823 | ) | (11,556 | ) | |||||||||
Foreign Currency Rate Changes
|
- | (13,780 | ) | - | (5,636 | ) | |||||||||||
Fair Value, End of Year
|
$ | 186,527 | $ | 306,689 | $ | 160,396 | $ | 270,329 | |||||||||
CHANGE IN PROJECTED BENEFIT OBLIGATION
|
|||||||||||||||||
Benefit Obligation, Beginning of Year
|
$ | (253,399 | ) | $ | (326,730 | ) | $ | (208,969 | ) | $ | (300,178 | ) | |||||
Service Cost
|
(12,701 | ) | (6,204 | ) | (9,951 | ) | (6,062 | ) | |||||||||
Interest Cost
|
(12,032 | ) | (15,784 | ) | (12,042 | ) | (15,862 | ) | |||||||||
Employee Contributions
|
- | (1,892 | ) | - | (1,937 | ) | |||||||||||
Actuarial (Loss)
|
(56,453 | ) | (66,702 | ) | (30,980 | ) | (21,846 | ) | |||||||||
Benefits Paid
|
9,240 | 6,907 | 9,823 | 11,556 | |||||||||||||
Foreign Currency Rate Changes
|
- | 16,127 | - | 7,900 | |||||||||||||
Curtailment
|
18,158 | - | - | - | |||||||||||||
Amendments and Other
|
(472 | ) | - | (1,280 | ) | (301 | ) | ||||||||||
Benefit Obligation, End of Year
|
$ | (307,659 | ) | $ | (394,278 | ) | $ | (253,399 | ) | $ | (326,730 | ) | |||||
Funded Status
|
$ | (121,132 | ) | $ | (87,589 | ) | $ | (93,003 | ) | $ | (56,401 | ) | |||||
AMOUNTS RECOGNIZED IN THE STATEMENT OF FINANCIAL POSITION:
|
|||||||||||||||||
Current Pension Liability
|
(3,826 | ) | (533 | ) | (2,524 | ) | (1,065 | ) | |||||||||
Noncurrent Pension Liability
|
(117,306 | ) | (87,056 | ) | (90,479 | ) | (55,336 | ) | |||||||||
Net Amount Recognized in Statement of Financial Position
|
$ | (121,132 | ) | $ | (87,589 | ) | $ | (93,003 | ) | $ | (56,401 | ) | |||||
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS CONSIST OF (before tax)
|
|||||||||||||||||
Net Actuarial Loss
|
$ | (105,311 | ) | $ | (102,083 | ) | $ | (82,301 | ) | $ | (65,859 | ) | |||||
Prior Service Cost
|
- | (1,039 | ) | (3,062 | ) | (1,185 | ) | ||||||||||
Total Accumulated Other Comprehensive Loss
|
$ | (105,311 | ) | $ | (103,122 | ) | $ | (85,363 | ) | $ | (67,044 | ) | |||||
Change in Accumulated Other Comprehensive Loss
|
$ | (19,948 | ) | $ | (36,078 | ) | $ | (28,921 | ) | $ | (30,084 | ) | |||||
WEIGHTED AVERAGE ASSUMPTIONS USED IN DETERMINING ASSETS AND LIABILITIES
|
|||||||||||||||||
Discount Rate
|
4.2% | 4.2% | 4.7% | 5.0% | |||||||||||||
Rate of Compensation Increase
|
N/A | 3.2% | 3.1% | 3.4% | |||||||||||||
Accumulated Benefit Obligations
|
$ | (307,659 | ) | $ | (359,438 | ) | $ | (242,780 | ) | $ | (299,947 | ) |
·
|
Level 1: Unadjusted quoted prices in active markets for identical assets.
|
·
|
Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets in active markets or quoted prices for identical assets in inactive markets.
|
·
|
Level 3: Unobservable inputs reflecting assumptions about the inputs used in pricing the asset.
|
2013
|
2012
|
|||||||||||||||||||||||
Level 1
|
Level 2
|
Total
|
Level 1
|
Level 2
|
Total
|
|||||||||||||||||||
U.S. Plan Assets
|
||||||||||||||||||||||||
Equity Securities:
|
||||||||||||||||||||||||
U.S. Commingled Funds
|
$ | - | $ | 79,449 | $ | 79,449 | $ | - | $ | 68,750 | $ | 68,750 | ||||||||||||
Non-U.S. Commingled Funds
|
- | 33,814 | 33,814 | - | 29,208 | 29,208 | ||||||||||||||||||
Fixed Income Commingled Funds
|
- | 61,440 | 61,440 | - | 51,630 | 51,630 | ||||||||||||||||||
Real Estate
|
- | 11,824 | 11,824 | - | 10,808 | 10,808 | ||||||||||||||||||
Total U.S. Plan Assets
|
$ | - | $ | 186,527 | $ | 186,527 | $ | - | $ | 160,396 | $ | 160,396 | ||||||||||||
Non-U.S. Plan Assets
|
||||||||||||||||||||||||
Equity Securities:
|
||||||||||||||||||||||||
U.S. Equities
|
$ | 1,156 | $ | 38,799 | $ | 39,955 | $ | 14,720 | $ | 14,556 | $ | 29,276 | ||||||||||||
Non-U.S. Equities
|
2,261 | 107,607 | 109,868 | 13,856 | 71,851 | 85,707 | ||||||||||||||||||
Balanced Managed Funds
|
10,571 | 1,938 | 12,509 | 9,761 | 1,542 | 11,303 | ||||||||||||||||||
Fixed Income Securities:
|
||||||||||||||||||||||||
Government/Sovereign Securities
|
12,656 | 41,145 | 53,801 | 15,738 | 32,937 | 48,675 | ||||||||||||||||||
Fixed Income Funds
|
15,781 | 55,943 | 71,724 | 17,483 | 51,922 | 69,405 | ||||||||||||||||||
Other:
|
||||||||||||||||||||||||
Real Estate/Other
|
- | 15,989 | 15,989 | 3,027 | 12,586 | 15,613 | ||||||||||||||||||
Cash and Cash Equivalents
|
2,843 | - | 2,843 | 10,350 | - | 10,350 | ||||||||||||||||||
Total Non-U.S. Plan Assets
|
$ | 45,268 | $ | 261,421 | $ | 306,689 | $ | 84,935 | $ | 185,394 | $ | 270,329 | ||||||||||||
Total Plan Assets
|
$ | 45,268 | $ | 447,948 | $ | 493,216 | $ | 84,935 | $ | 345,790 | $ | 430,725 |
For the Years
Ended April 30,
|
|||||||||||||
2013
|
2012
|
2011
|
|||||||||||
Fair Value of Options on Grant Date
|
$ | 12.26 | $ | 14.11 | $ | 11.97 | |||||||
Weighted Average assumptions:
|
|||||||||||||
Expected Life of Options (years)
|
7.3 | 7.3 | 7.7 | ||||||||||
Risk-Free Interest Rate
|
1.2% | 2.3% | 2.7% | ||||||||||
Expected Volatility
|
30.2% | 29.0% | 28.9% | ||||||||||
Expected Dividend Yield
|
2.0% | 1.6% | 1.6% | ||||||||||
Fair Value of Common Stock on Grant Date
|
$ | 48.06 | $ | 49.55 | $ | 40.02 |
2013
|
2012
|
2011
|
|||||||||||||||||||||||||||||||
Stock Options
|
Options
(in 000’s)
|
Weighted Average
Exercise
Price
|
Weighted Average Remaining
Term
(in years)
|
Aggregate Intrinsic
Value
(in millions)
|
Options
(in 000’s)
|
Weighted
Average
Exercise
Price
|
Options
(in 000’s)
|
Weighted Average
Exercise
Price
|
|||||||||||||||||||||||||
Outstanding at Beginning of Year
|
4,130 | $ | 40.74 | 4,258 | $ | 38.52 | 4,987 | $ | 36.51 | ||||||||||||||||||||||||
Granted
|
394 | $ | 48.06 | 411 | $ | 49.55 | 413 | $ | 40.02 | ||||||||||||||||||||||||
Exercised
|
(784 | ) | $ | 34.44 | (539 | ) | $ | 29.97 | (1,133 | ) | $ | 30.23 | |||||||||||||||||||||
Expired or Forfeited
|
(8 | ) | $ | 35.00 | - | - | (9 | ) | $ | 32.54 | |||||||||||||||||||||||
Outstanding at End of Year
|
3,732 | $ | 42.85 | 4.6 | $ | 4.2 | 4,130 | $ | 40.74 | 4,258 | $ | 38.52 | |||||||||||||||||||||
Exercisable at End of Year
|
2,166 | $ | 42.45 | 2.6 | $ | 3.1 | 2,301 | $ | 40.08 | 2,218 | $ | 35.40 | |||||||||||||||||||||
Vested and Expected to Vest in the Future at April 30, 2013
|
3,603 | $ | 42.93 | 4.5 | $ | 4.0 |
Options Outstanding
|
Options Exercisable
|
||||||||||||||||||||||
Range of
Exercise Prices
|
Number of Options
(in 000’s)
|
Weighted Average Remaining
Term (in years)
|
Weighted Average
Exercise Price
|
Number of Options
(in 000’s)
|
Weighted Average
Exercise Price
|
||||||||||||||||||
$ | 25.32 to $33.05 | 323 | 1.9 | $ | 31.88 | 318 | $ | 31.97 | |||||||||||||||
$ | 35.04 to $38.55 | 950 | 3.7 | $ | 35.99 | 603 | $ | 36.53 | |||||||||||||||
$ | 40.02 to $47.55 | 1,039 | 4.4 | $ | 44.57 | 628 | $ | 47.55 | |||||||||||||||
$ | 48.46 to $49.55 | 1,420 | 5.8 | $ | 48.66 | 617 | $ | 48.46 | |||||||||||||||
Total/Average
|
3,732 | 4.6 | $ | 42.85 | 2,166 | $ | 42.45 |
2013
|
2012
|
2011
|
|||||||||||||||
Restricted
Shares
|
Weighted
Average
Grant Date
Value
|
Restricted
Shares
|
Restricted
Shares
|
||||||||||||||
Nonvested Shares at Beginning of Year
|
1,042 | $ | 41.31 | 904 | 926 | ||||||||||||
Granted
|
296 | $ | 47.31 | 272 | 255 | ||||||||||||
Change in shares due to performance
|
(227 | ) | $ | 45.31 | 31 | 78 | |||||||||||
Vested and Issued
|
(237 | ) | $ | 38.06 | (159 | ) | (349 | ) | |||||||||
Forfeited
|
(37 | ) | $ | 38.54 | (6 | ) | (6 | ) | |||||||||
Nonvested Shares at End of Year
|
837 | $ | 43.39 | 1,042 | 904 |
For the years ended April 30,
|
|||||||||||||
2013
|
2012
|
2011
|
|||||||||||
RESEARCH:
|
|||||||||||||
Revenue
|
$ | 1,009,825 | $ | 1,040,727 | $ | 998,902 | |||||||
Direct Contribution to Profit
|
420,963 | 452,274 | 424,797 | ||||||||||
Allocated Shared Services and Administrative Costs:
|
|||||||||||||
Distribution
|
(46,009 | ) | (47,995 | ) | (52,101 | ) | |||||||
Technology Services
|
(66,105 | ) | (65,734 | ) | (63,820 | ) | |||||||
Occupancy and Other
|
(22,343 | ) | (21,085 | ) | (17,820 | ) | |||||||
Contribution to Profit
|
$ | 286,506 | $ | 317,460 | $ | 291,056 | |||||||
PROFESSIONAL DEVELOPMENT:
|
|||||||||||||
Revenue
|
$ | 416,495 | $ | 427,562 | $ | 430,998 | |||||||
Direct Contribution to Profit
|
86,678 | 108,431 | 92,031 | ||||||||||
Allocated Shared Services and Administrative Costs:
|
|||||||||||||
Distribution
|
(40,664 | ) | (45,118 | ) | (46,519 | ) | |||||||
Technology Services
|
(29,187 | ) | (25,248 | ) | (23,858 | ) | |||||||
Occupancy and Other
|
(11,381 | ) | (13,011 | ) | (11,684 | ) | |||||||
Contribution to Profit
|
$ | 5,446 | $ | 25,054 | $ | 9,970 | |||||||
EDUCATION:
|
|||||||||||||
Revenue
|
$ | 334,458 | $ | 314,453 | $ | 312,651 | |||||||
Direct Contribution to Profit
|
103,828 | 107,711 | 104,509 | ||||||||||
Allocated Shared Services and Administrative Costs:
|
|||||||||||||
Distribution
|
(15,277 | ) | (15,945 | ) | (14,393 | ) | |||||||
Technology Services
|
(30,727 | ) | (27,572 | ) | (21,840 | ) | |||||||
Occupancy and Other
|
(7,079 | ) | (5,771 | ) | (5,179 | ) | |||||||
Contribution to Profit
|
$ | 50,745 | $ | 58,423 | $ | 63,097 | |||||||
Total Contribution to Profit
|
$ | 342,697 | $ | 400,937 | $ | 364,123 | |||||||
Unallocated Shared Services and Administrative Costs
|
(143,270 | ) | (120,518 | ) | (115,975 | ) | |||||||
Foreign Exchange Transaction Losses
|
(2,041 | ) | (2,261 | ) | (2,188 | ) | |||||||
Interest Expense & Other, Net
|
(10,464 | ) | (6,063 | ) | (14,900 | ) | |||||||
Income Before Taxes
|
$ | 186,922 | $ | 272,095 | $ | 231,060 | |||||||
For the years ended April 30,
|
|||||||||||||
2013
|
2012
|
2011
|
|||||||||||
Total Assets
|
|||||||||||||
Research
|
$ | 1,371,082 | $ | 1,444,114 | $ | 1,486,052 | |||||||
Professional Development
|
520,703 | 548,751 | 465,752 | ||||||||||
Education
|
422,658 | 156,286 | 157,822 | ||||||||||
Corporate/Shared Services
|
491,932 | 383,795 | 320,515 | ||||||||||
Total
|
$ | 2,806,375 | $ | 2,532,946 | $ | 2,430,141 | |||||||
Expenditures for Long Lived Assets
|
|||||||||||||
Research
|
$ | 33,817 | $ | 24,454 | $ | 24,636 | |||||||
Professional Development
|
43,587 | 103,934 | 20,881 | ||||||||||
Education
|
240,283 | 20,729 | 21,545 | ||||||||||
Corporate/Shared Services
|
54,723 | 62,935 | 45,968 | ||||||||||
Total
|
$ | 372,410 | $ | 212,052 | $ | 113,030 | |||||||
Depreciation and Amortization
|
|||||||||||||
Research
|
$ | 60,049 | $ | 56,335 | $ | 54,423 | |||||||
Professional Development
|
35,434 | 34,734 | 34,954 | ||||||||||
Education
|
33,937 | 29,792 | 27,672 | ||||||||||
Corporate/Shared Services
|
20,096 | 17,230 | 15,457 | ||||||||||
Total
|
$ | 149,516 | $ | 138,091 | $ | 132,506 |
Revenue
|
Long-Lived Assets
(Technology, Property & Equipment)
|
|||||||||||||||||||||||
2013
|
2012
|
2011
|
2013
|
2012
|
2011
|
|||||||||||||||||||
United States
|
$ | 911,838 | $ | 893,662 | $ | 888,833 | $ | 134,107 | $ | 127,641 | $ | 107,377 | ||||||||||||
United Kingdom
|
123,827 | 135,781 | 117,072 | 31,093 | 33,145 | 30,359 | ||||||||||||||||||
Germany
|
84,737 | 88,314 | 91,502 | 12,492 | 13,550 | 14,940 | ||||||||||||||||||
Asia
|
247,962 | 251,360 | 242,177 | 7,308 | 7,956 | 6,530 | ||||||||||||||||||
Australia
|
79,958 | 81,150 | 78,722 | 3,533 | 4,400 | 4,978 | ||||||||||||||||||
Canada
|
66,440 | 74,797 | 79,227 | 1,092 | 1,287 | 1,357 | ||||||||||||||||||
Other Countries
|
246,016 | 257,678 | 245,018 | - | - | - | ||||||||||||||||||
Total
|
$ | 1,760,778 | $ | 1,782,742 | $ | 1,742,551 | $ | 189,625 | $ | 187,979 | $ | 165,541 | ||||||||||||
$ In millions, except per share data
|
2013
|
2012 | ||||||||||||
Revenue
|
||||||||||||||
First Quarter
|
$ | 410.7 | $ | 430.1 | ||||||||||
Second Quarter
|
431.8 | 447.0 | ||||||||||||
Third Quarter
|
472.4 | 451.1 | ||||||||||||
Fourth Quarter
|
445.9 | 454.5 | ||||||||||||
Fiscal Year
|
$ | 1,760.8 | $ | 1,782.7 | ||||||||||
Gross Profit
|
||||||||||||||
First Quarter
|
$ | 283.5 | $ | 300.4 | ||||||||||
Second Quarter
|
302.2 | 314.3 | ||||||||||||
Third Quarter
|
330.6 | 309.0 | ||||||||||||
Fourth Quarter
|
312.2 | 315.6 | ||||||||||||
Fiscal Year
|
$ | 1,228.5 | $ | 1,239.3 | ||||||||||
Operating Income
|
||||||||||||||
First Quarter (a)
|
$ | 39.0 | $ | 60.2 | ||||||||||
Second Quarter (c)
|
62.9 | 72.0 | ||||||||||||
Third Quarter
|
83.6 | 78.5 | ||||||||||||
Fourth Quarter (e)
|
13.9 | 69.7 | ||||||||||||
Fiscal Year
|
$ | 199.4 | $ | 280.4 | ||||||||||
Net Income
|
||||||||||||||
First Quarter (a,b)
|
$ | 36.1 | $ | 50.8 | ||||||||||
Second Quarter (c)
|
43.1 | 50.8 | ||||||||||||
Third Quarter (d)
|
57.1 | 62.9 | ||||||||||||
Fourth Quarter (e)
|
7.9 | 48.2 | ||||||||||||
Fiscal Year
|
$ | 144.2 | $ | 212.7 | ||||||||||
2013 | 2012 | |||||||||||||
Income Per Share
|
Diluted
|
Basic
|
Diluted
|
Basic
|
||||||||||
First Quarter (a,b)
|
$ | 0.60 | $ | 0.61 | $ | 0.82 | $ | 0.84 | ||||||
Second Quarter (c)
|
0.71 | 0.72 |
0.83
|
0.84 | ||||||||||
Third Quarter (d)
|
0.95 | 0.96 |
1.03
|
1.05 | ||||||||||
Fourth Quarter (e)
|
0.13 | 0.14 |
0.80
|
0.81 | ||||||||||
Fiscal Year
|
$ | 2.39 | $ | 2.43 | $ | 3.47 | $ | 3.53 |
a)
|
In the first quarter of fiscal year 2013, the Company recorded restructuring charges related to certain activities that will either be discontinued, outsourced, or relocated to a lower cost region of $4.8 million ($3.5 million after tax or $0.06 per share).
|
b)
|
In the first quarters of fiscal years 2013 and 2012, the Company recorded non-cash deferred tax benefits of $8.4 million ($0.14 per share) and $8.8 million ($0.14 per share), respectively, principally associated with 2% legislative reductions in the U.K. corporate income tax rates for both years. The benefits reflect the remeasurement of all applicable U.K. deferred tax balances which are reflected at 23% as of April 30, 2013.
|
c)
|
In the second quarter of fiscal year 2013, the Company recorded impairment charges related to the divested Professional Development consumer publishing programs of $15.5 million ($9.6 million after tax or $0.16 per share). In addition, the Company reported a gain in the second quarter of fiscal year 2013 associated with the sale of key assets of its travel publishing program of $9.8 million ($6.2 million after tax or $0.10 per share).
|
d)
|
In the third quarter of fiscal year 2012, the Company recorded a $7.5 million tax benefit ($0.12 per share) related to the reversal of an income tax reserve recorded in conjunction with the Blackwell acquisition in fiscal year 2007.
|
e)
|
In the fourth quarter of fiscal year 2013 the Company recorded the following items:
|
·
|
Restructuring charges of $24.5 million ($16.3 million after tax or $0.27 per share) related to the Company’s Restructuring and Reinvestment Program.
|
·
|
Asset impairment charges of $15.2 million ($11.4 million after tax or $0.19 per share) related to certain controlled circulation publishing programs in the Company’s Research business and certain technology investments.
|
·
|
A loss on sale of certain Professional Development consumer publishing programs of $3.8 million ($3.6 million after tax or $0.06 per share).
|
·
|
A tax charge of $2.1 million ($0.04 per share) due to recently published IRS tax positions related to the Company’s ability to take certain deductions in the U.S.
|
Additions/ (Deductions)
|
|||||||||||||||||
Description
|
Balance at
Beginning
of Period
|
Charged to
Cost &
Expenses
|
Deductions
From
Reserves(2)
|
Balance
at End of
Period
|
|||||||||||||
Year Ended April 30, 2013
|
|||||||||||||||||
Allowance for Sales Returns (1)
|
$ | 35,773 | $ | 74,793 | $ | 78,732 | $ | 31,834 | |||||||||
Allowance for Doubtful Accounts
|
$ | 6,850 | $ | 1,863 | $ | 1,353 | $ | 7,360 | |||||||||
Allowance for Inventory Obsolescence
|
$ | 33,932 | $ | 19,930 | $ | 25,619 | $ | 28,243 | |||||||||
Year Ended April 30, 2012
|
|||||||||||||||||
Allowance for Sales Returns (1)
|
$ | 48,909 | $ | 82,901 | $ | 96,037 | $ | 35,773 | |||||||||
Allowance for Doubtful Accounts
|
$ | 19,642 | $ | 2,111 | $ | 14,903 | $ | 6,850 | |||||||||
Allowance for Inventory Obsolescence
|
$ | 36,917 | $ | 23,074 | $ | 26,059 | $ | 33,932 | |||||||||
Year Ended April 30, 2011
|
|||||||||||||||||
Allowance for Sales Returns (1)
|
$ | 55,311 | $ | 96,841 | $ | 103,243 | $ | 48,909 | |||||||||
Allowance for Doubtful Accounts
|
$ | 6,859 | $ | 13,989 | $ | 1,206 | $ | 19,642 | |||||||||
Allowance for Inventory Obsolescence
|
$ | 39,674 | $ | 23,772 | $ | 26,529 | $ | 36,917 |
|
(1)
|
Allowance for sales returns represents anticipated returns net of a recovery of inventory and royalty costs. The provision is reported as a reduction of gross sales to arrive at revenue and the reserve balance is reported as a reduction of accounts receivable with a corresponding increase in Inventory and a reduction in Accounts and royalties payable (See Note 2).
|
|
(2)
|
Deductions from reserves include foreign exchange translation adjustments and accounts written off, less recoveries.
|
|
September 2002 - Chairman of the Board, John Wiley and Sons, Inc. (Director since 1984)
|
|
May 2011 - President and Chief Executive Officer, John Wiley and Sons, Inc.
|
|
June 2009 - Executive Vice President and Chief Operating Officer – responsible for all publishing, editorial, sales and marketing and business development activities globally.
|
|
May 2007 - Senior Vice President, Wiley Europe, Asia and Australia – responsible for all company activities and operations in the world outside North America
|
|
2001 - Executive Vice President and Chief Financial and Operations Officer – responsible for the Company’s worldwide financial organization, strategic planning and business development, internal audit, information technology, distribution and investor relations.
|
|
February 2012 – Senior Vice President and Chief Technology Officer – responsible for leading the Company’s global technology functions.
|
|
June 2009 – Senior Vice President, Global Solutions Development of LexisNexis – responsible for the development and maintenance of a large suite of customer-facing products.
|
|
December 2005 – Vice President and Chief Information Officer of McGraw Hill – responsible for transforming the technology organization from three different business units into a single shared services team.
|
|
August 2010 - Senior Vice President, Professional Development – responsible for leading the Company’s global Professional Development business.
|
|
January 2010 - Vice President and Chief Operating Officer, Professional and Trade – responsible for PD profitability and marketing operations.
|
|
July 2009 - Vice President, Asia/Pacific and International Development – responsible for managing Wiley’s business operations in Asia and Australia.
|
|
July 2006 - Managing Director, Wiley Asia – responsible for managing Wiley’s business operations in Asia
|
|
1996 - Senior Vice President, Human Resources – responsible for managing the Company’s Global Human Resources organization. (Succeeded by Mary-Jo O’Leary on May 1, 2013 and transitioned to the role of Senior Advisor to the Senior Vice President until his retirement on June 30, 2013).
|
|
October 2012 – Vice President and Director, Human Resources – responsible for working with the Senior Vice President, Human Resources to manage the Company’s Global Human Resources organization. (Succeeded William Arlington as Senior Vice President, Human Resources on May 1, 2013).
|
|
July 2003 – Vice President, Marketing & Sales – responsible for managing the sales, marketing and custom publishing functions for the Company’s Education business.
|
|
May 2011 - Senior Vice President, Education – responsible for leading the Company’s worldwide Education business.
|
|
January 2011 - Senior Vice President, US Higher Education – responsible for leading the Company’s US Higher Education business.
|
|
May 2010 - Vice President and Chief Operating Officer, Higher Education – responsible for leading the Company’s US Higher Education Product Development and New Business Development and Production Groups.
|
|
October 2000 - Vice President, Product and E-Business Development – responsible for leading the Company’s Higher Education Product and New Business Development Group.
|
|
2004 - Senior Vice President, General Counsel – responsible for all of the Company’s legal and corporate governance functions at Wiley.
|
|
May 2010 - Senior Vice President, Global Research – responsible for leading the Company’s worldwide Research business.
|
|
November 2009 - Chief Operating Officer, Scientific, Technical, Medical and Scholarly business – responsible for Research's editorial strategy and operations as well as product marketing.
|
|
February 2007 - Vice President and Managing Director, Physical Science – responsible for leading Research's Physical Sciences business.
|
|
September 2006 - Vice President, Treasurer – responsible for global treasury operations, insurable risk management, accounts receivable, and credit and collections.
|
|
January 2013 – Senior Vice President, Corporate Controller and Chief Accounting Officer – responsible for Financial Reporting, Taxes, and Financial Shared Services.
|
|
2002 - Vice President, Corporate Controller and Chief Accounting Officer – responsible for Financial Reporting, Taxes and the Financial Shared Services.
|
|
October 2012 – Senior Vice President, International Development and Global Research – leads team responsible for increasing market share in growing and emerging markets and supervises the worldwide Research sales team.
|
|
February 2007 – Vice President and Managing Director, Sales and Marketing – supervised the domestic and international sales and marketing teams.
|
|
August 2011 – Senior Vice President, Corporate Marketing – responsible for strategic marketing and customer relationship management.
|
|
July 2005 – Executive Vice President, Sales and Marketing of SRSsoft, Inc. – responsible for all sales and marketing activity.
|
|
February 2009 – Senior Vice President, Planning and Development – responsible for global acquisitions and divestitures, strategic investments, strategic planning, corporate alliances and business development.
|
|
2008 – Executive Vice President, Business Development of The Weinstein Company – responsible for acquisitions, strategic investments, alliances, joint ventures, and managing integrated marketing across media properties.
|
|
February 2009 - Corporate Secretary – responsible for Board administration and compliance with corporate regulatory requirements.
|
|
August 2005 - Senior Assistant Corporate Secretary of Sunoco, Inc. – responsible for the governance of the company’s subsidiaries, joint ventures and limited liability companies including Sunoco Logistics Partners, L.P. and Sun Coke entities.
|
Plan Category
|
Number of
securities to be
issued upon
exercise of
outstanding
options, warrants
and rights
(a)
|
Weighted-average
exercise price of
outstanding
options, warrants
and rights
(b)
|
Number of
securities remaining
available for future
issuance under equity
compensation plans
(excluding securities
reflected in column
(a) (c)
|
|||||||||
Equity compensation plans approved by shareholders
|
4,569,430 | (1) | $ | 42.85 | 5,775,562 | |||||||
Equity compensation plans not approved by shareholders
|
- | - | - | |||||||||
Total
|
4,569,430 | $ | 42.85 | 5,775,562 |
(1)
|
This amount includes the following awards issued under the 2009 Key Employee Stock Plan:
|
·
|
3,732,028 shares issuable upon the exercise of outstanding stock options with a weighted average exercise price of $42.85.
|
·
|
837,402 non-vested performance-based and other restricted stock awards. Since these awards have no exercise price, they are not included in the weighted average exercise price calculation.
|
(a)
|
Financial Statements and Schedules are included in the attached index on page 3 and are filed as part of this report
|
(b)
|
Reports on Form 8-K submitted to the Securities and Exchange Commission since the filing of the Company’s 10-Q on March 11, 2013:
|
Earnings release on the fiscal year 2013 results issued on Form 8-K dated June 18, 2013, which included certain condensed financial statements of the Company.
|
|
Employment agreement and announcement of John A. Kritzmacher as the Company’s next Executive Vice President and Chief Financial Officer issued on Form 8-K dated June 4, 2013.
|
|
(c)
|
Exhibits
|
3.1
|
Restated Certificate of Incorporation (incorporated by reference to the Company’s Report on Form 10-K for the year ended April 30, 1992).
|
3.2
|
Certificate of Amendment of the Certificate of Incorporation dated October 13, 1995 (incorporated by reference to the Company’s Report on Form 10-K for the year ended April 30, 1997).
|
3.3
|
Certificate of Amendment of the Certificate of Incorporation dated as of September 1998 (incorporated by reference to the Company’s Report on Form 10-Q for the quarterly period ended October 31, 1998).
|
3.4
|
Certificate of Amendment of the Certificate of Incorporation dated as of September 1999 (incorporated by reference to the Company’s Report on Form 10-Q for the quarterly period ended October 31, 1999).
|
3.5
|
By-Laws as Amended and Restated dated as of September 2007 (incorporated by reference to the Company’s Report on Form 10-K for the year ended April 30, 2008).
|
10.1
|
Amended and Restated Credit Agreement dated as of November 2, 2011, among the Company and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, and Other Lenders Party Hereto (incorporated by reference to the Company’s Report on Form 10-Q for the quarterly period ended October 31, 2011).
|
10.2
|
Agreement of Lease dated as of August 4, 2000, between, Block A South Waterfront Development L.L.C., as Landlord, and the Company, as Tenant (incorporated by reference to the Company’s Report on Form 10-Q for the quarterly period ended July 31, 2000).
|
10.3
|
2009 Director Stock Plan (incorporated by reference to the Company’s Report on Form 10-Q for the quarterly period ended October 31, 2009).
|
10.4
|
2009 Executive Annual Incentive Plan (incorporated by reference to the Company’s Report on Form 10-Q for the quarterly period ended October 31, 2011).
|
10.5
|
Amended 2009 Key Employee Stock Plan (Revised September 15, 2011 and incorporated by reference to the Company’s Report on Form 10-Q for the quarterly period ended October 31, 2011).
|
10.6
|
Supplemental Executive Retirement Plan as Amended and Restated effective as of January 1, 2009 (incorporated by reference to the Company’s Report on Form 10-K for the year ended April 30, 2010).
|
10.7
|
Amendments A and B to the Supplemental Executive Retirement Plan as Amended and Restated Effective January 1, 2009 (incorporated by reference to the Company’s Report on Form 10-Q for the quarterly period ended July 31, 2010).
|
10.8*
|
Resolution amending the Supplemental Executive Retirement Plan effective June 30, 2013.
|
10.9
|
Supplemental Benefit Plan Amended and Restated as of January 1, 2009, including amendments through August 1, 2010 (incorporated by reference to the Company’s Report on Form 10-Q for the quarterly period ended January 31, 2011).
|
10.10*
|
Resolution amending the Supplemental Benefit Plan effective June 30, 2013.
|
10.11
|
Deferred Compensation Plan as Amended and Restated Effective as of January 1, 2008 (incorporated by reference to the Company’s Report on Form 10-K for the year ended April 30, 2010).
|
10.12*
|
Resolution amending the Deferred Compensation Plan effective July 1, 2013.
|
10.13
|
Deferred Compensation Plan for Directors’ 2005 & After Compensation (incorporated by reference to the Report on Form 8-K, filed December 21, 2005).
|
10.14*
|
Form of the Fiscal Year 2014 Qualified Executive Long Term Incentive Plan.
|
10.15*
|
Form of the Fiscal Year 2014 Qualified Executive Annual Incentive Plan.
|
10.16*
|
Form of the Fiscal Year 2014 Executive Annual Strategic Milestones Incentive Plan.
|
10.17
|
Form of the Fiscal Year 2013 Qualified Executive Long Term Incentive Plan (incorporated by reference to the Company’s Report on Form 10-K for the year ended April 30, 2012).
|
10.18
|
Form of the Fiscal Year 2013 Qualified Executive Annual Incentive Plan (incorporated by reference to the Company’s Report on Form 10-K for the year ended April 30, 2012).
|
10.19
|
Form of the Fiscal Year 2013 Executive Annual Strategic Milestones Incentive Plan (incorporated by reference to the Company’s Report on Form 10-K for the year ended April 30, 2012).
|
10.20
|
Form of the Fiscal Year 2012 Qualified Executive Long Term Incentive Plan (incorporated by reference to the Company’s Report on Form 10-K for the year ended April 30, 2011).
|
10.21
|
Form of the Fiscal Year 2012 Qualified Executive Annual Incentive Plan (incorporated by reference to the Company’s Report on Form 10-Q for the quarterly period ended July 31, 2011).
|
10.22
|
Form of the Fiscal Year 2012 Executive Annual Strategic Milestones Incentive Plan (incorporated by reference to the Company’s Report on Form 10-Q for the quarterly period ended July 31, 2011).
|
10.23
|
Senior Executive Employment Agreement to Arbitrate dated as of April 29, 2003 (incorporated by reference to the Company’s Report on Form 10-K for the year ended April 30, 2003).
|
10.24
|
Schedule of individual officers party to Senior Executive Employment Agreement to Arbitrate dated as of April 29, 2003 (incorporated by reference to the Company’s Report on Form 10-Q for the quarterly period ended October 31, 2009).
|
10.25
|
Senior Executive Non-competition and Non-Disclosure Agreement dated as of April 29, 2003 (incorporated by reference to the Company’s Report on Form 10-K for the year ended April 30, 2003).
|
10.26
|
Schedule of individual officers party to Senior Executive Non-Competition and Non-Disclosure Agreement dated as of April 29, 2003 (incorporated by reference to the Company’s Report on Form 10-Q for the quarterly period ended October 31, 2009).
|
10.27
|
Senior executive Employment Agreement dated as of September 17, 2010 and effective as of May 1, 2011, between Stephen M. Smith and the Company (incorporated by reference to the Company’s Report on Form 8-K dated as of September 22, 2010)
|
10.28
|
Senior executive Employment Agreement dated as of December 1, 2008, between Ellis E. Cousens and the Company (incorporated by reference to the Company’s Report on Form 10-Q for the quarterly period ended January 31, 2009).
|
10.29
|
Senior executive Employment Agreement letter dated as of March 15, 2004, between Gary M. Rinck and the Company (incorporated by reference to the Company’s Report on Form 10-K for the year ended April 30, 2011).
|
10.30
|
Senior executive Employment Agreement dated as of May 1, 2010, between Stephen J. Miron and the Company (incorporated by reference to the Company’s Report on Form 10-K for the year ended April 30, 2011).
|
10.31
|
Senior executive Employment Agreement dated as of November 1, 2011, between Mark J. Allin and the Company (incorporated by reference to the Company’s Report on Form 10-K for the year ended April 30, 2012).
|
21*
|
List of Subsidiaries of the Company
|
23*
|
Consent of KPMG LLP
|
31.1*
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2*
|
Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1*
|
Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.2*
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
JOHN WILEY & SONS, INC.
|
|||
(Company)
|
|||
Dated: June 26, 2013
|
By:
|
/s/ Stephen M. Smith | |
Stephen M. Smith
|
|||
President and Chief Executive Officer
|
Signatures
|
Titles
|
Dated
|
|||
/s/ Stephen M. Smith
|
President and Chief Executive Officer
|
June 26, 2013
|
|||
Stephen M. Smith
|
Director
|
||||
/s/ Ellis E. Cousens
|
Executive Vice President and
|
June 26, 2013
|
|||
Ellis E. Cousens
|
Chief Financial and Operations Officer
|
||||
/s/ Edward J. Melando
|
Senior Vice President, Controller and
|
June 26, 2013
|
|||
Edward J. Melando
|
Chief Accounting Officer
|
||||
/s/ Peter Booth Wiley
|
Director
|
June 26, 2013
|
|||
Peter Booth Wiley
|
|||||
/s/ Jesse C. Wiley
|
Editor and Director
|
June 26, 2013
|
|||
Jesse C. Wiley
|
|||||
/s/ William J. Pesce
|
Director
|
June 26, 2013
|
|||
William J. Pesce
|
|||||
/s/ William B. Plummer
|
Director
|
June 26, 2013
|
|||
William B. Plummer
|
|||||
/s/ Kalpana Raina
|
Director
|
June 26, 2013
|
|||
Kalpana Raina
|
|||||
/s/ Mari J. Baker
|
Director
|
June 26, 2013
|
|||
Mari J. Baker
|
|||||
/s/ Jean-Lou Chameau
|
Director
|
June 26, 2013
|
|||
Jean-Lou Chameau
|
|||||
/s/ Mathew S. Kissner
|
Director
|
June 26, 2013
|
|||
Mathew S. Kissner
|
|||||
/s/ Raymond McDaniel, Jr.
|
Director
|
June 26, 2013
|
|||
Raymond McDaniel, Jr.
|
|||||
/s/ Eduardo R. Menascé
|
Director
|
June 26, 2013
|
|||
Eduardo R. Menascé
|
|||||
/s/ Linda Katehi
|
Director
|
June 26, 2013
|
|||
Linda Katehi
|
Exhibit 21
SUBSIDIARIES OF JOHN WILEY & SONS, INC. (1)
|
|
As of April 30, 2013
|
|
Jurisdiction
|
|
In Which
|
|
Incorporated
|
|
John Wiley & Sons International Rights, Inc.
|
Delaware
|
JWS HQ, LLC
|
New Jersey
|
JWS DCM, LLC
|
New Jersey
|
Deltak edu, Inc
|
Delaware
|
Deltak edu, LLC
|
Delaware
|
Efficient Learning Systems, Inc
|
Arizona
|
Wiley Brasil Divulgacao De Materiais Didaticos LTDA
Wiley Periodicals, Inc.
|
Brazil
Delaware
|
Wiley Publishing Services, Inc.
Wiley Subscription Services, Inc.
Inscape Publishing Inc.
|
Delaware
Delaware
Delaware
|
Wiley Publishing LLC
|
Delaware
|
Wiley India Private Ltd.
|
India
|
WWL Corp.
|
Delaware
|
Wiley International, LLC
|
Delaware
|
John Wiley & Sons UK LLP
|
United Kingdom
|
John Wiley & Sons UK 2 LLP
|
United Kingdom
|
Wiley Japan KK
|
Japan
|
Wiley Europe Investment Holdings, Ltd.
|
United Kingdom
|
Wiley U.K. (Unlimited Co.)
|
United Kingdom
|
Wiley Europe Ltd.
|
United Kingdom
|
John Wiley & Sons, Ltd.
|
United Kingdom
|
Wiley Heyden Ltd.
|
United Kingdom
|
Wiley Distribution Services Ltd.
|
United Kingdom
|
Blackwell Publishing (Holdings) Ltd.
|
United Kingdom
|
Blackwell Publishing Ltd.
|
United Kingdom
|
John Wiley & Sons Singapore Pte. Ltd.
|
Singapore
|
John Wiley & Sons Commercial Service Co. Ltd.
|
China
|
John Wiley & Sons GmbH
|
Germany
|
Wiley-VCH Verlag GmbH & Co. KGaA
|
Germany
|
Blackwell Science Ltd.
|
United Kingdom
|
Blackwell Science (Overseas Holdings)
|
United Kingdom
|
John Wiley & Sons LTD A/S
|
Denmark
|
Blackwell Verlag GmbH
|
Germany
|
Wiley Publishing Japan KK
|
Japan
|
Blackwell Science (HK) Ltd.
|
Hong Kong
|
Wiley Publishing Australia Pty Ltd.
|
Australia
|
John Wiley and Sons Australia, Ltd.
|
Australia
|
Blackwell Publishing Asia Pty. Ltd
|
Australia
|
John Wiley & Sons Canada Limited
|
Canada
|
John Wiley & Sons (HK) Limited
|
Hong Kong
|
(1)The names of other subsidiaries that would not constitute a significant subsidiary in the aggregate have been omitted.
|
1.
|
I have reviewed this annual report on Form 10-K of the Company;
|
2.
|
Based on my knowledge, this annual report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
|
4.
|
The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and
|
d.
|
Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter (the Company’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and
|
5.
|
The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent function):
|
a.
|
all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting that are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and
|
b.
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.
|
By:
|
/s/ Stephen M. Smith
|
|
Stephen M. Smith
|
||
President and Chief Executive Officer
|
||
Dated: June 26, 2013
|
|
Exhibit 31.2
|
1.
|
I have reviewed this annual report on Form 10-K of the Company;
|
2.
|
Based on my knowledge, this annual report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
|
4.
|
The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and
|
d.
|
Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter (the Company’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and
|
5.
|
The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent function):
|
a.
|
all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting that are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and
|
b.
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.
|
By:
|
/s/ Ellis E. Cousens
|
|
Ellis E. Cousens
|
||
Executive Vice President and
|
||
Chief Financial and Operations Officer
|
||
Dated: June 26, 2013
|
|
Exhibit 32.1
|
(1)
|
the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
By:
|
/s/ Stephen M. Smith
|
|
Stephen M. Smith
|
||
President and Chief Executive Officer
|
||
Dated: June 26, 2013
|
(1)
|
the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
By:
|
/s/ Ellis E. Cousens
|
|
Ellis E. Cousens
|
||
Executive Vice President and
|
||
Chief Financial and Operations Officer
|
||
Dated: June 26, 2013
|
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Section
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
Section
I.
II.
III.
IV.
V.
VI.
VII.
< Threshold
0% - <50%
12 Months Ended
Goodwill and Intangible Assets [Abstract]
Goodwill and Intangible Assets
$ 473,209 $ - $ - $ (16,626 ) $ 456,583 217,410 17,026 (5,117 ) (332 ) 228,987 - 149,970 - - 149,970 $ 690,619 $ 166,996 $ (5,117 ) $ (16,958 ) $ 835,540 $ 790,881 $ (260,947 ) $ 794,986 $ (227,934 ) 179,336 (23,634 ) 83,477 (17,240 ) 25,700 (11,894 ) 22,374 (8,401 ) 1,840 (782 ) 790 (484 ) 997,757 (297,257 ) 901,627 (254,059 ) 153,747 - 165,896 - 100,710 - 102,031 - $ 1,252,214 $ (297,257 ) $ 1,169,554 $ (254,059 )
In Thousands, except Per Share data, unless otherwise specified12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME [Abstract]
Revenue
$ 1,760,778
$ 1,782,742
$ 1,742,551
Costs and Expenses
Cost of sales
532,232
543,396
539,043
Operating and administrative expenses
933,148
922,177
910,847
Restructuring charges
29,293
0
0
Impairment charges
30,679
0
0
Additional provision for doubtful trade account
0
0
9,290
Amortization of intangibles
41,982
36,750
35,223
Total Costs and Expenses
1,567,334
1,502,323
1,494,403
Net Gain on Sale of Consumer Publishing Programs
5,983
0
0
Operating Income
199,427
280,419
248,148
Interest expense
(13,078)
(9,038)
(17,322)
Foreign exchange transaction losses
(2,041)
(2,261)
(2,188)
Interest income and other
2,614
2,975
2,422
Income Before Taxes
186,922
272,095
231,060
Provision for Income Taxes
42,697
59,349
59,171
Net Income
$ 144,225
$ 212,746
$ 171,889
Earnings Per Share
Diluted (in dollars per share)
$ 2.39
$ 3.47
$ 2.80
Basic (in dollars per share)
$ 2.43
$ 3.53
$ 2.86
Average Shares
Diluted (in shares)
60,224
61,272
61,359
Basic (in shares)
59,447
60,184
60,160
Cash Dividends Per Share
Common stock (in dollars per share)
$ 0.96
$ 0.80
$ 0.64
Cash Dividends Per Share
Common stock (in dollars per share)
$ 0.96
$ 0.80
$ 0.64
12 Months Ended
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies
$ (44,279 ) $ (48,612 ) 6,862 7,246 (5,583 ) (5,593 ) $ (31,834 ) $ (35,773 )
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12 Months Ended
Commitments and Contingencies [Abstract]
Commitments and Contingencies
$ 41,899 $ 43,620 $ 39,676 (554 ) (501 ) (665 ) $ 41,345 $ 43,119 $ 39,011
12 Months Ended
Restructuring Charges [Abstract]
Restructuring Charges [Text Block]
In Thousands, unless otherwise specified
Inventories [Abstract]
Finished Goods
$ 68,040
$ 86,954
Work-in-Process
5,890
6,487
Paper, Cloth, and Other
6,577
8,072
Gross Inventory
80,507
101,513
Inventory Value of Estimated Sales Returns
6,862
7,246
LIFO Reserve
(5,352)
(7,522)
Total Inventories
$ 82,017
$ 101,237
12 Months Ended
Income Taxes [Abstract]
Provision for income taxes
$ 23,835 $ 11,253 $ 15,563 34,019 43,017 35,913 2,091 2,049 1,988 $ 59,945 $ 56,319 $ 53,464 $ (11,312 ) $ 9,736 $ 6,164 (5,553 ) (7,820 ) 2,040 (383 ) 1,114 (2,497 ) $ (17,248 ) $ 3,030 $ 5,707 $ 42,697 $ 59,349 $ 59,171
International and United States pretax income
$ 156,114 $ 171,315 $ 162,767 30,808 100,780 68,293 $ 186,922 $ 272,095 $ 231,060
Reconciliation of effective income tax rate
35.0% 35.0% 35.0% (9.3 ) (6.8 ) (7.6 ) 0.6 0.8 (0.1 ) (4.5 ) (3.2 ) (1.8 ) 0.7 (4.0 ) (0.9 ) 0.3 - 1.0 22.8% 21.8% 25.6%
Reconciliation of unrecognized tax benefits
$ 24,252 $ 38,100 1,182 375 2,749 1,105 (906 ) (1,521 ) (291 ) (1,681 ) (1,089 ) - (396 ) (12,126 ) $ 25,501 $ 24,252
Significant components of deferred tax assets and liabilities
$ 8,328 $ 7,185 301,239 276,035 $ 309,567 $ 283,220 $ 5,813 $ 6,297 6,297 5,577 11,849 6,157 35,505 30,946 64,680 48,188 $ 124,144 $ 97,165 $ 185,423 $ 186,055 $ 5,513 $ 219 6,590 6,996 - 11,554 197,526 181,716 $ 185,423 $ 186,055
12 Months Ended
Capital Stock and Changes in Capital Accounts [Abstract]
Capital Stock and Changes in Capital Accounts
12 Months Ended
Stock-Based Compensation [Abstract]
Stock-Based Compensation
$ 12.26 $ 14.11 $ 11.97 7.3 7.3 7.7 1.2% 2.3% 2.7% 30.2% 29.0% 28.9% 2.0% 1.6% 1.6% $ 48.06 $ 49.55 $ 40.02 4,130 $ 40.74 4,258 $ 38.52 4,987 $ 36.51 394 $ 48.06 411 $ 49.55 413 $ 40.02 (784 ) $ 34.44 (539 ) $ 29.97 (1,133 ) $ 30.23 (8 ) $ 35.00 - - (9 ) $ 32.54 3,732 $ 42.85 4.6 $ 4.2 4,130 $ 40.74 4,258 $ 38.52 2,166 $ 42.45 2.6 $ 3.1 2,301 $ 40.08 2,218 $ 35.40 3,603 $ 42.93 4.5 $ 4.0 $ 25.32 to $33.05 323 1.9 $ 31.88 318 $ 31.97 $ 35.04 to $38.55 950 3.7 $ 35.99 603 $ 36.53 $ 40.02 to $47.55 1,039 4.4 $ 44.57 628 $ 47.55 $ 48.46 to $49.55 1,420 5.8 $ 48.66 617 $ 48.46 3,732 4.6 $ 42.85 2,166 $ 42.45 1,042 $ 41.31 904 926 296 $ 47.31 272 255 (227 ) $ 45.31 31 78 (237 ) $ 38.06 (159 ) (349 ) (37 ) $ 38.54 (6 ) (6 ) 837 $ 43.39 1,042 904
In Millions, unless otherwise specified0 Months Ended
12 Months Ended
0 Months Ended
12 Months Ended
0 Months Ended
12 Months Ended
Business Acquisition [Line Items]
Acquisition price
$ 220
$ 24
$ 85
Revenue of acquiree post acquisition
33.7
3.7
21.6
Estimated useful life of intangible assets acquired
20 years
15 years
Cash, net of cash acquired
220
24
85
Number of online programs supported
100
Number of professional Prepared for CPA Exams
65,000
Revenue
54.0
7.0
21.6
Purchase price allocation, identifiable long-lived intangible assets
99.4
6.5
43.9
Purchase price allocation, technology
3.6
Fair value of net assets acquired
150.0
17.0
56.8
Purchase price allocation, long-term deferred tax liabilities
$ 34.4
$ 2.9
12 Months Ended
Inventories [Abstract]
Inventories
$ 68,040 $ 86,954 5,890 6,487 6,577 8,072 80,507 101,513 6,862 7,246 (5,352 ) (7,522 ) $ 82,017 $ 101,237
12 Months Ended
Retirement Plans [Abstract]
Amounts in Accumulated Other Comprehensive Loss that are expected to be recognized as components of net periodic benefit cost during the next fiscal year
$ 6,257 $ 7,338 $ 13,595 - 121 121 $ 6,257 $ 7,459 $ 13,716
Components of net periodic pension expense for defined benefit plans and the weighted-average assumptions
$ 12,701 $ 6,204 $ 9,951 $ 6,062 $ 9,591 $ 6,681 12,032 15,784 12,042 15,862 10,758 16,118 (12,927 ) (17,975 ) (11,679 ) (17,412 ) (10,118 ) (15,542 ) 854 127 902 133 770 117 6,050 3,905 4,444 670 4,343 2,915 2,681 - - - - - $ 21,391 $ 8,045 $ 15,660 $ 5,315 $ 15,344 $ 10,289 4.7% 5.0% 5.7% 5.6% 5.9% 5.7% 3.1% 3.4% 4.0% 4.4% 4.0% 4.6% 8.0% 6.8% 8.0% 6.8% 8.5% 6.8%
Changes in and status of the plans' assets and benefit obligations
$ 160,396 $ 270,329 $ 144,887 $ 268,268 22,161 40,844 9,676 8,033 13,210 14,311 15,656 9,283 - 1,892 - 1,937 (9,240 ) (6,907 ) (9,823 ) (11,556 ) - (13,780 ) - (5,636 ) $ 186,527 $ 306,689 $ 160,396 $ 270,329 $ (253,399 ) $ (326,730 ) $ (208,969 ) $ (300,178 ) (12,701 ) (6,204 ) (9,951 ) (6,062 ) (12,032 ) (15,784 ) (12,042 ) (15,862 ) - (1,892 ) - (1,937 ) (56,453 ) (66,702 ) (30,980 ) (21,846 ) 9,240 6,907 9,823 11,556 - 16,127 - 7,900 18,158 - - - (472 ) - (1,280 ) (301 ) $ (307,659 ) $ (394,278 ) $ (253,399 ) $ (326,730 ) $ (121,132 ) $ (87,589 ) $ (93,003 ) $ (56,401 ) (3,826 ) (533 ) (2,524 ) (1,065 ) (117,306 ) (87,056 ) (90,479 ) (55,336 ) $ (121,132 ) $ (87,589 ) $ (93,003 ) $ (56,401 ) $ (105,311 ) $ (102,083 ) $ (82,301 ) $ (65,859 ) - (1,039 ) (3,062 ) (1,185 ) $ (105,311 ) $ (103,122 ) $ (85,363 ) $ (67,044 ) $ (19,948 ) $ (36,078 ) $ (28,921 ) $ (30,084 ) 4.2% 4.2% 4.7% 5.0% N/A 3.2% 3.1% 3.4% $ (307,659 ) $ (359,438 ) $ (242,780 ) $ (299,947 )
Pension plan assets at fair value by level within the fair value hierarchy
$ - $ 79,449 $ 79,449 $ - $ 68,750 $ 68,750 - 33,814 33,814 - 29,208 29,208 - 61,440 61,440 - 51,630 51,630 - 11,824 11,824 - 10,808 10,808 $ - $ 186,527 $ 186,527 $ - $ 160,396 $ 160,396 $ 1,156 $ 38,799 $ 39,955 $ 14,720 $ 14,556 $ 29,276 2,261 107,607 109,868 13,856 71,851 85,707 10,571 1,938 12,509 9,761 1,542 11,303 12,656 41,145 53,801 15,738 32,937 48,675 15,781 55,943 71,724 17,483 51,922 69,405 - 15,989 15,989 3,027 12,586 15,613 2,843 - 2,843 10,350 - 10,350 $ 45,268 $ 261,421 $ 306,689 $ 84,935 $ 185,394 $ 270,329 $ 45,268 $ 447,948 $ 493,216 $ 84,935 $ 345,790 $ 430,725
Schedule of Product Development Assets [Line Items]
Product development assets
$ 87,876,000
$ 108,414,000
Accumulated amortization of composition costs
179,900,000
178,200,000
Schedule of Product Development Assets [Line Items]
Product development assets
48,861,000
54,844,000
Schedule of Product Development Assets [Line Items]
Product development assets
$ 39,015,000
$ 53,570,000
12 Months Ended
Summary of Significant Accounting Policies [Abstract]
Principles of Consolidation
Use of Estimates
Reclassifications
Book Overdrafts
Revenue Recognition
Cash Equivalents
Allowance for Doubtful Accounts
Sales Return Reserves
$ (44,279 ) $ (48,612 ) 6,862 7,246 (5,583 ) (5,593 ) $ (31,834 ) $ (35,773 )
Inventories
Reserve for Inventory Obsolescence
Product Development Assets
Shipping and Handling Costs
Advertising Expense
Technology, Property and Equipment
Allocation of Acquisition Purchase Price to Assets Acquired and Liabilities Assumed
Goodwill and Indefinite-lived Intangible Assets
Intangible Assets with Finite Lives and Other Long-Lived Assets
Derivative Financial Instruments
Foreign Currency Gains/Losses
Share-Based Compensation
Recently Issued Accounting Standards
3 Months Ended
12 Months Ended
Supplementary Financial Information [Abstract]
Revenue
$ 445,900,000
$ 472,400,000
$ 431,800,000
$ 410,700,000
$ 454,500,000
$ 451,100,000
$ 447,000,000
$ 430,100,000
$ 1,760,778,000
$ 1,782,742,000
$ 1,742,551,000
Gross profit
312,200,000
330,600,000
302,200,000
283,500,000
315,600,000
309,000,000
314,300,000
300,400,000
1,228,500,000
1,239,300,000
Operating income
13,900,000
[1]
83,600,000
62,900,000
39,000,000
[2]
69,700,000
[1]
78,500,000
72,000,000
60,200,000
[2]
199,427,000
280,419,000
248,148,000
Net income
7,900,000
[1]
57,100,000
[3]
43,100,000
36,100,000
[2],[4]
48,200,000
[1]
62,900,000
[3]
50,800,000
50,800,000
[2],[4]
144,225,000
212,746,000
171,889,000
Income per share [Abstract]
Diluted (in dollars per share)
$ 0.13
[1]
$ 0.95
[3]
$ 0.71
$ 0.60
[2],[4]
$ 0.80
[1]
$ 1.03
[3]
$ 0.83
$ 0.82
[2],[4]
$ 2.39
$ 3.47
$ 2.80
Basic (in dollars per share)
$ 0.14
[1]
$ 0.96
[3]
$ 0.72
$ 0.61
[2],[4]
$ 0.81
[1]
$ 1.05
[3]
$ 0.84
$ 0.84
[2],[4]
$ 2.43
$ 3.53
$ 2.86
Restructuring charges
24,500,000
4,800,000
29,293,000
0
0
Restructuring costs, net of tax
16,300,000
3,500,000
19,800,000
Restructuring charge (in dollars per share)
$ 0.27
$ 0.06
$ 0.33
Asset impairment charges
15,200,000
Asset impairment charges, net of tax
11,400,000
Per share equivalent of asset impairment charges, after tax (in dollars per share)
$ 0.19
Non-cash deferred tax benefit associated with new tax legislation enacted in the U.K.
8,400,000
8,800,000
8,400,000
8,800,000
4,200,000
Non-cash deferred tax benefit associated with new tax legislation enacted in the U.K. (in dollars per diluted share)
$ 0.14
$ 0.14
Legislative reduction in the corporate income tax rate, U.K.
2.00%
Remeasurement effect of all applicable U.K. deferred tax balances (in hundredths)
23.00%
23.00%
Impairment of intangible assets
15,500,000
Impairment of intangible assets, net of taxes
9,600,000
Impairment of intangible assets per share (in dollars per share)
$ 0.16
Gain (loss) on disposition of assets
(3,800,000)
9,800,000
Gain (loss) on disposition of assets, net of tax
(3,600,000)
6,200,000
Gain (loss) on disposition of assets net of tax, per share (in dollars per share)
$ (0.06)
$ 0.10
Reversal of an income tax reserve recorded in conjunction with the Blackwell acquisition
7,500,000
Reversal of an income tax reserve recorded in conjunction with the Blackwell acquisition per share (in dollars per share)
$ 0.12
Other tax expense due to recently published IRS tax positions
$ 2,100,000
Other tax expense due to recently published IRS tax positions (in dollars per share)
$ 0.04
[1]
In the fourth quarter of fiscal year 2013 the Company recorded the following items:
· Restructuring charges of $24.5 million ($16.3 million after tax or $0.27 per share) related to the Company's Restructuring and Reinvestment Program.
· Asset impairment charges of $15.2 million ($11.4 million after tax or $0.19 per share) related to certain controlled circulation publishing programs in the Company's Research business and certain technology investments.
· A loss on sale of certain Professional Development consumer publishing programs of $3.8 million ($3.6 million after tax or $0.06 per share).
· A tax charge of $2.1 million ($0.04 per share) due to recently published IRS tax positions related to the Company's ability to take certain deductions in the U.S.
[2]
In the first quarter of fiscal year 2013, the Company recorded restructuring charges related to certain activities that will either be discontinued, outsourced, or relocated to a lower cost region of $4.8 million ($3.5 million after tax or $0.06 per share).
[3]
In the third quarter of fiscal year 2012, the Company recorded a $7.5 million tax benefit ($0.12 per share) related to the reversal of an income tax reserve recorded in conjunction with the Blackwell acquisition in fiscal year 2007.
[4]
In the first quarters of fiscal years 2013 and 2012, the Company recorded non-cash deferred tax benefits of $8.4 million ($0.14 per share) and $8.8 million ($0.14 per share), respectively, principally associated with 2% legislative reductions in the U.K. corporate income tax rates for both years. The benefits reflect the remeasurement of all applicable U.K. deferred tax balances which are reflected at 23% as of April 30, 2013.
3 Months Ended
12 Months Ended
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue
$ 445,900,000
$ 472,400,000
$ 431,800,000
$ 410,700,000
$ 454,500,000
$ 451,100,000
$ 447,000,000
$ 430,100,000
$ 1,760,778,000
$ 1,782,742,000
$ 1,742,551,000
International Operations [Abstract]
Export sales from the United States to unaffiliated customers
445,900,000
472,400,000
431,800,000
410,700,000
454,500,000
451,100,000
447,000,000
430,100,000
1,760,778,000
1,782,742,000
1,742,551,000
Pretax income for consolidated operations outside the United States
156,100,000
171,300,000
162,800,000
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue
150,300,000
151,100,000
149,800,000
International Operations [Abstract]
Export sales from the United States to unaffiliated customers
150,300,000
151,100,000
149,800,000
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue
1,760,778,000
1,782,742,000
1,742,551,000
Long-Lived Assets
189,625,000
187,979,000
189,625,000
187,979,000
165,541,000
International Operations [Abstract]
Export sales from the United States to unaffiliated customers
1,760,778,000
1,782,742,000
1,742,551,000
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue
911,838,000
893,662,000
888,833,000
Long-Lived Assets
134,107,000
127,641,000
134,107,000
127,641,000
107,377,000
International Operations [Abstract]
Export sales from the United States to unaffiliated customers
911,838,000
893,662,000
888,833,000
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue
123,827,000
135,781,000
117,072,000
Long-Lived Assets
31,093,000
33,145,000
31,093,000
33,145,000
30,359,000
International Operations [Abstract]
Export sales from the United States to unaffiliated customers
123,827,000
135,781,000
117,072,000
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue
84,737,000
88,314,000
91,502,000
Long-Lived Assets
12,492,000
13,550,000
12,492,000
13,550,000
14,940,000
International Operations [Abstract]
Export sales from the United States to unaffiliated customers
84,737,000
88,314,000
91,502,000
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue
247,962,000
251,360,000
242,177,000
Long-Lived Assets
7,308,000
7,956,000
7,308,000
7,956,000
6,530,000
International Operations [Abstract]
Export sales from the United States to unaffiliated customers
247,962,000
251,360,000
242,177,000
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue
79,958,000
81,150,000
78,722,000
Long-Lived Assets
3,533,000
4,400,000
3,533,000
4,400,000
4,978,000
International Operations [Abstract]
Export sales from the United States to unaffiliated customers
79,958,000
81,150,000
78,722,000
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue
66,440,000
74,797,000
79,227,000
Long-Lived Assets
1,092,000
1,287,000
1,092,000
1,287,000
1,357,000
International Operations [Abstract]
Export sales from the United States to unaffiliated customers
66,440,000
74,797,000
79,227,000
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue
246,016,000
257,678,000
245,018,000
Long-Lived Assets
0
0
0
0
0
International Operations [Abstract]
Export sales from the United States to unaffiliated customers
$ 246,016,000
$ 257,678,000
$ 245,018,000
12 Months Ended
Description of Business [Abstract]
Number of core businesses
3
12 Months Ended
Retirement Plans [Abstract]
Retirement Plans
$ 6,257 $ 7,338 $ 13,595 - 121 121 $ 6,257 $ 7,459 $ 13,716 $ 12,701 $ 6,204 $ 9,951 $ 6,062 $ 9,591 $ 6,681 12,032 15,784 12,042 15,862 10,758 16,118 (12,927 ) (17,975 ) (11,679 ) (17,412 ) (10,118 ) (15,542 ) 854 127 902 133 770 117 6,050 3,905 4,444 670 4,343 2,915 2,681 - - - - - $ 21,391 $ 8,045 $ 15,660 $ 5,315 $ 15,344 $ 10,289 4.7% 5.0% 5.7% 5.6% 5.9% 5.7% 3.1% 3.4% 4.0% 4.4% 4.0% 4.6% 8.0% 6.8% 8.0% 6.8% 8.5% 6.8% $ 160,396 $ 270,329 $ 144,887 $ 268,268 22,161 40,844 9,676 8,033 13,210 14,311 15,656 9,283 - 1,892 - 1,937 (9,240 ) (6,907 ) (9,823 ) (11,556 ) - (13,780 ) - (5,636 ) $ 186,527 $ 306,689 $ 160,396 $ 270,329 $ (253,399 ) $ (326,730 ) $ (208,969 ) $ (300,178 ) (12,701 ) (6,204 ) (9,951 ) (6,062 ) (12,032 ) (15,784 ) (12,042 ) (15,862 ) - (1,892 ) - (1,937 ) (56,453 ) (66,702 ) (30,980 ) (21,846 ) 9,240 6,907 9,823 11,556 - 16,127 - 7,900 18,158 - - - (472 ) - (1,280 ) (301 ) $ (307,659 ) $ (394,278 ) $ (253,399 ) $ (326,730 ) $ (121,132 ) $ (87,589 ) $ (93,003 ) $ (56,401 ) (3,826 ) (533 ) (2,524 ) (1,065 ) (117,306 ) (87,056 ) (90,479 ) (55,336 ) $ (121,132 ) $ (87,589 ) $ (93,003 ) $ (56,401 ) $ (105,311 ) $ (102,083 ) $ (82,301 ) $ (65,859 ) - (1,039 ) (3,062 ) (1,185 ) $ (105,311 ) $ (103,122 ) $ (85,363 ) $ (67,044 ) $ (19,948 ) $ (36,078 ) $ (28,921 ) $ (30,084 ) 4.2% 4.2% 4.7% 5.0% N/A 3.2% 3.1% 3.4% $ (307,659 ) $ (359,438 ) $ (242,780 ) $ (299,947 ) $ - $ 79,449 $ 79,449 $ - $ 68,750 $ 68,750 - 33,814 33,814 - 29,208 29,208 - 61,440 61,440 - 51,630 51,630 - 11,824 11,824 - 10,808 10,808 $ - $ 186,527 $ 186,527 $ - $ 160,396 $ 160,396 $ 1,156 $ 38,799 $ 39,955 $ 14,720 $ 14,556 $ 29,276 2,261 107,607 109,868 13,856 71,851 85,707 10,571 1,938 12,509 9,761 1,542 11,303 12,656 41,145 53,801 15,738 32,937 48,675 15,781 55,943 71,724 17,483 51,922 69,405 - 15,989 15,989 3,027 12,586 15,613 2,843 - 2,843 10,350 - 10,350 $ 45,268 $ 261,421 $ 306,689 $ 84,935 $ 185,394 $ 270,329 $ 45,268 $ 447,948 $ 493,216 $ 84,935 $ 345,790 $ 430,725
In Thousands, unless otherwise specified12 Months Ended
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Unamortized retirement costs, tax (benefit) provision
$ 16,145
$ 18,463
$ (7,490)
Change in unrecognized loss of interest rate swap, tax (benefit) provision
$ (62)
$ 453
$ (2,208)
In Thousands
Balance at Apr. 30, 2010
$ 722,436
$ 69,706
$ 13,485
$ (227,646)
$ (347,056)
$ 1,003,099
$ 210,848
Shares Issued Under Employee Benefit Plans
1,203
4,524
(3,321)
Purchase of Treasury Shares
(27,958)
(27,958)
Exercise of Stock Options, including taxes
31,460
9,660
21,800
Stock-based compensation expense
17,719
17,719
Common Stock Dividends
(32,648)
(6,116)
(32,648)
(6,116)
Other
(1)
43
(44)
Comprehensive Income (Loss)
271,794
99,905
171,889
Balance at Apr. 30, 2011
977,889
69,749
13,441
(127,741)
(360,830)
1,136,224
247,046
Shares Issued Under Employee Benefit Plans
1,420
3,042
(1,622)
Purchase of Treasury Shares
(87,072)
(87,072)
Exercise of Stock Options, including taxes
16,249
7,126
9,123
Stock-based compensation expense
17,262
17,262
Common Stock Dividends
(40,627)
(7,630)
(40,627)
(7,630)
Other
0
4
(4)
Comprehensive Income (Loss)
140,077
(72,669)
212,746
Balance at Apr. 30, 2012
1,017,568
69,753
13,437
(200,410)
(437,734)
1,300,713
271,809
Shares Issued Under Employee Benefit Plans
1,184
6,005
(4,821)
Purchase of Treasury Shares
(73,721)
(73,721)
Exercise of Stock Options, including taxes
22,820
10,974
11,846
Stock-based compensation expense
11,928
11,928
Common Stock Dividends
(48,290)
(9,136)
(48,290)
(9,136)
Other
0
40
(40)
Comprehensive Income (Loss)
66,003
(78,222)
144,225
Balance at Apr. 30, 2013
$ 988,356
$ 69,793
$ 13,397
$ (278,632)
$ (494,476)
$ 1,387,512
$ 290,762
12 Months Ended
Reconciliation of Weighted Average Shares Outstanding [Abstract]
Reconciliation of Weighted Average Shares Outstanding
59,672 60,387 60,515 (225 ) (203 ) (355 ) 59,447 60,184 60,160 777 1,088 1,199 60,224 61,272 61,359
12 Months Ended
Description of Business [Abstract]
Description of Business
12 Months Ended
Stock-Based Compensation [Abstract]
Estimated weighted average fair value for options granted each period
$ 12.26 $ 14.11 $ 11.97 7.3 7.3 7.7 1.2% 2.3% 2.7% 30.2% 29.0% 28.9% 2.0% 1.6% 1.6% $ 48.06 $ 49.55 $ 40.02
Summary of activity and status of stock option plans
4,130 $ 40.74 4,258 $ 38.52 4,987 $ 36.51 394 $ 48.06 411 $ 49.55 413 $ 40.02 (784 ) $ 34.44 (539 ) $ 29.97 (1,133 ) $ 30.23 (8 ) $ 35.00 - - (9 ) $ 32.54 3,732 $ 42.85 4.6 $ 4.2 4,130 $ 40.74 4,258 $ 38.52 2,166 $ 42.45 2.6 $ 3.1 2,301 $ 40.08 2,218 $ 35.40 3,603 $ 42.93 4.5 $ 4.0
Summary of stock options outstanding and exercisable, by range of exercise prices
$ 25.32 to $33.05 323 1.9 $ 31.88 318 $ 31.97 $ 35.04 to $38.55 950 3.7 $ 35.99 603 $ 36.53 $ 40.02 to $47.55 1,039 4.4 $ 44.57 628 $ 47.55 $ 48.46 to $49.55 1,420 5.8 $ 48.66 617 $ 48.46 3,732 4.6 $ 42.85 2,166 $ 42.45
Summary of activity for performance-based and other restricted stock awards
1,042 $ 41.31 904 926 296 $ 47.31 272 255 (227 ) $ 45.31 31 78 (237 ) $ 38.06 (159 ) (349 ) (37 ) $ 38.54 (6 ) (6 ) 837 $ 43.39 1,042 904
12 Months Ended
Segment Information [Abstract]
Segment Information
$ 1,009,825 $ 1,040,727 $ 998,902 420,963 452,274 424,797 (46,009 ) (47,995 ) (52,101 ) (66,105 ) (65,734 ) (63,820 ) (22,343 ) (21,085 ) (17,820 ) $ 286,506 $ 317,460 $ 291,056 $ 416,495 $ 427,562 $ 430,998 86,678 108,431 92,031 (40,664 ) (45,118 ) (46,519 ) (29,187 ) (25,248 ) (23,858 ) (11,381 ) (13,011 ) (11,684 ) $ 5,446 $ 25,054 $ 9,970 $ 334,458 $ 314,453 $ 312,651 103,828 107,711 104,509 (15,277 ) (15,945 ) (14,393 ) (30,727 ) (27,572 ) (21,840 ) (7,079 ) (5,771 ) (5,179 ) $ 50,745 $ 58,423 $ 63,097 $ 342,697 $ 400,937 $ 364,123 (143,270 ) (120,518 ) (115,975 ) (2,041 ) (2,261 ) (2,188 ) (10,464 ) (6,063 ) (14,900 ) $ 186,922 $ 272,095 $ 231,060 $ 1,371,082 $ 1,444,114 $ 1,486,052 520,703 548,751 465,752 422,658 156,286 157,822 491,932 383,795 320,515 $ 2,806,375 $ 2,532,946 $ 2,430,141 $ 33,817 $ 24,454 $ 24,636 43,587 103,934 20,881 240,283 20,729 21,545 54,723 62,935 45,968 $ 372,410 $ 212,052 $ 113,030 $ 60,049 $ 56,335 $ 54,423 35,434 34,734 34,954 33,937 29,792 27,672 20,096 17,230 15,457 $ 149,516 $ 138,091 $ 132,506 $ 911,838 $ 893,662 $ 888,833 $ 134,107 $ 127,641 $ 107,377 123,827 135,781 117,072 31,093 33,145 30,359 84,737 88,314 91,502 12,492 13,550 14,940 247,962 251,360 242,177 7,308 7,956 6,530 79,958 81,150 78,722 3,533 4,400 4,978 66,440 74,797 79,227 1,092 1,287 1,357 246,016 257,678 245,018 - - - $ 1,760,778 $ 1,782,742 $ 1,742,551 $ 189,625 $ 187,979 $ 165,541
12 Months Ended
Summary of Significant Accounting Policies [Abstract]
Net sales return reserves by balance sheet account
$ (44,279 ) $ (48,612 ) 6,862 7,246 (5,583 ) (5,593 ) $ (31,834 ) $ (35,773 )
12 Months Ended
Goodwill and Intangible Assets [Abstract]
Activity in goodwill by segment
$ 473,209 $ - $ - $ (16,626 ) $ 456,583 217,410 17,026 (5,117 ) (332 ) 228,987 - 149,970 - - 149,970 $ 690,619 $ 166,996 $ (5,117 ) $ (16,958 ) $ 835,540
Schedule of intangible assets
$ 790,881 $ (260,947 ) $ 794,986 $ (227,934 ) 179,336 (23,634 ) 83,477 (17,240 ) 25,700 (11,894 ) 22,374 (8,401 ) 1,840 (782 ) 790 (484 ) 997,757 (297,257 ) 901,627 (254,059 ) 153,747 - 165,896 - 100,710 - 102,031 - $ 1,252,214 $ (297,257 ) $ 1,169,554 $ (254,059 )