☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
NEW YORK
|
13-5593032
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
111 RIVER STREET, HOBOKEN, NJ
|
07030
|
|
(Address of principal executive offices)
|
Zip Code
|
(201) 748-6000
|
||
Registrant’s telephone number including area code
|
NOT APPLICABLE
|
||
Former name, former address, and former fiscal year, if changed since last report
|
Large accelerated filer ☒
|
Accelerated filer ☐
|
Non-accelerated filer ☐
|
Smaller reporting company ☐
|
Emerging growth company ☐
|
PART I - FINANCIAL INFORMATION
|
||||
Item 1.
|
Financial Statements
|
|||
5
|
||||
6
|
||||
7
|
||||
8
|
||||
9
|
||||
Notes to Unaudited Condensed Consolidated Financial Statements
|
||||
11
|
||||
11
|
||||
16
|
||||
16
|
||||
22
|
||||
23
|
||||
23
|
||||
24
|
||||
25
|
||||
26
|
||||
26
|
||||
27
|
||||
27
|
||||
28
|
||||
29
|
||||
Item 2.
|
30
|
|||
Item 3.
|
43
|
|||
Item 4.
|
44
|
|||
PART II - OTHER INFORMATION
|
||||
Item 1.
|
45
|
|||
Item 1a.
|
45
|
|||
Item 2.
|
45
|
|||
Item 6.
|
46
|
|||
SIGNATURES
|
47
|
● |
Adjusted Earnings Per Share “(Adjusted EPS)”;
|
● |
Free Cash Flow less Product Development Spending;
|
● |
Adjusted Operating Income and margin;
|
● |
Adjusted Contribution to Profit and margin; and
|
● |
Results on a constant currency basis.
|
● |
Adjusted EPS, Adjusted Operating Profit, and Adjusted Contribution to Profit provide a more comparable basis to analyze operating results and earnings and are
measures commonly used by shareholders to measure our performance.
|
● |
Free Cash Flow less Product Development Spending helps assess our ability, over the long term, to create value for our shareholders as it represents cash
available to repay debt, pay common stock dividends and fund share repurchases and new acquisitions.
|
● |
Results on a constant currency basis removes distortion from the effects of foreign currency movements to provide better comparability of our business trends
from period to period. We measure our performance before the impact of foreign currency (or at “constant currency”), which means that we apply the same foreign currency exchange rates for the current and equivalent prior period.
|
January 31, 2019
|
April 30, 2018
|
|||||||
(Unaudited)
|
||||||||
Assets:
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$
|
132,758
|
$
|
169,773
|
||||
Accounts receivable, net
|
194,764
|
212,377
|
||||||
Inventories, net
|
35,264
|
39,489
|
||||||
Prepaid expenses and other current assets
|
68,657
|
58,332
|
||||||
Total Current Assets
|
431,443
|
479,971
|
||||||
Product Development Assets
|
62,004
|
78,814
|
||||||
Royalty Advances, net
|
42,903
|
37,058
|
||||||
Technology, Property and Equipment, net
|
286,172
|
289,934
|
||||||
Intangible Assets, net
|
892,603
|
848,071
|
||||||
Goodwill
|
1,103,222
|
1,019,801
|
||||||
Other Non-Current Assets
|
93,279
|
85,802
|
||||||
Total Assets
|
$
|
2,911,626
|
$
|
2,839,451
|
||||
Liabilities and Shareholders' Equity:
|
||||||||
Current Liabilities
|
||||||||
Accounts payable
|
$
|
85,111
|
$
|
90,097
|
||||
Accrued royalties
|
135,863
|
73,007
|
||||||
Contract liability (Deferred revenue)
|
271,541
|
486,353
|
||||||
Accrued employment costs
|
81,571
|
116,179
|
||||||
Accrued income taxes
|
20,781
|
13,927
|
||||||
Other accrued liabilities
|
83,398
|
94,748
|
||||||
Total Current Liabilities
|
678,265
|
874,311
|
||||||
Long-Term Debt
|
633,523
|
360,000
|
||||||
Accrued Pension Liability
|
150,131
|
190,301
|
||||||
Deferred Income Tax Liabilities
|
157,786
|
143,518
|
||||||
Other Long-Term Liabilities
|
96,492
|
80,764
|
||||||
Total Liabilities
|
1,716,197
|
1,648,894
|
||||||
Shareholders’ Equity
|
||||||||
Preferred Stock, $1 par value: Authorized – 2 million, Issued 0
|
—
|
—
|
||||||
Class A Common Stock, $1 par value: Authorized-180 million Issued 70,124,963 and 70,110,603 as
of January 31, 2019 and April 30, 2018, respectively
|
70,125
|
70,111
|
||||||
Class B Common Stock, $1 par value: Authorized-72 million Issued 13,056,707 and 13,071,067 as
of January 31, 2019 and April 30, 2018, respectively
|
13,057
|
13,071
|
||||||
Additional paid-in-capital
|
423,466
|
407,120
|
||||||
Retained earnings
|
1,886,620
|
1,834,057
|
||||||
Accumulated other comprehensive loss
|
(474,266
|
)
|
(439,580
|
)
|
||||
Treasury stock (Class A 22,190,282 and 21,853,257 as of January 31, 2019 and April 30, 2018,
respectively; Class B 3,917,574 and 3,917,574 as of January 31, 2019 and April 30, 2018, respectively)
|
(723,573
|
)
|
(694,222
|
)
|
||||
Total Shareholders’ Equity
|
1,195,429
|
1,190,557
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
2,911,626
|
$
|
2,839,451
|
Three Months Ended
January 31,
|
Nine Months Ended
January 31,
|
|||||||||||||||
2019
|
2018 (1)(2)
|
2019
|
2018 (1)(2)
|
|||||||||||||
Revenue, net
|
$
|
449,367
|
$
|
455,675
|
$
|
1,308,890
|
$
|
1,318,850
|
||||||||
Costs and Expenses
|
||||||||||||||||
Cost of sales (2)
|
143,879
|
136,362
|
404,194
|
394,444
|
||||||||||||
Operating and administrative expenses (1)(2)
|
240,715
|
239,548
|
717,348
|
703,158
|
||||||||||||
Restructuring and related (credits) charges
|
(348
|
)
|
2,208
|
3,562
|
26,531
|
|||||||||||
Amortization of intangibles
|
14,775
|
12,163
|
39,825
|
35,965
|
||||||||||||
Total Costs and Expenses
|
399,021
|
390,281
|
1,164,929
|
1,160,098
|
||||||||||||
Operating Income
|
50,346
|
65,394
|
143,961
|
158,752
|
||||||||||||
Interest Expense
|
(5,346
|
)
|
(3,295
|
)
|
(11,750
|
)
|
(10,023
|
)
|
||||||||
Foreign Exchange Transaction Losses
|
(2,525
|
)
|
(6,032
|
)
|
(4,308
|
)
|
(11,584
|
)
|
||||||||
Interest and Other Income (1)
|
2,742
|
2,200
|
7,717
|
6,694
|
||||||||||||
Income Before Taxes
|
45,217
|
58,267
|
135,620
|
143,839
|
||||||||||||
Provision (Benefit) for Income Taxes
|
10,275
|
(10,575
|
)
|
30,599
|
5,713
|
|||||||||||
Net Income
|
$
|
34,942
|
$
|
68,842
|
$
|
105,021
|
$
|
138,126
|
||||||||
Earnings Per Share
|
||||||||||||||||
Basic
|
$
|
0.61
|
$
|
1.21
|
$
|
1.83
|
$
|
2.42
|
||||||||
Diluted
|
$
|
0.61
|
$
|
1.19
|
$
|
1.81
|
$
|
2.39
|
||||||||
Weighted Average Number of Common Shares Outstanding
|
||||||||||||||||
Basic
|
57,158
|
57,035
|
57,330
|
56,979
|
||||||||||||
Diluted
|
57,626
|
57,871
|
57,882
|
57,736
|
(1) |
Due to the retrospective adoption of Accounting Standards Update (“ASU”) 2017-07,
“Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,”, total net benefits of $2.0 million and $6.0 million related to the non-service
components of defined benefit and other post-employment benefit plans were reclassified from Operating and Administrative Expenses to Interest and Other Income for the three and nine months ended January 31, 2018, respectively. Total
net benefits related to the non-service components of defined benefit and other post-employment benefit plans were $2.1 million and $6.6 million for the three and nine months ended January 31, 2019, respectively. Refer to Note 2,
"Recent Accounting Standards," in the Notes to Unaudited Condensed Consolidated Financial Statements for more information.
|
(2) |
In connection with the acquisition of The Learning House, Inc. (“Learning House”), we
changed our accounting policy for certain advertising and marketing costs incurred by our Education Services business to fulfill performance obligations from contracts with educational institutions. Under the new accounting policy,
these costs are included in Cost of Sales whereas they were previously included in Operating and Administrative Expenses on the Unaudited Condensed Consolidated Statements of Income. Including these expenses in Cost of Sales will better
align these costs with the related revenue and conform with the presentation of such costs for Learning House. This change in accounting policy was applied retrospectively.
|
Three Months Ended
January 31,
|
Nine Months Ended
January 31,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Net Income
|
$
|
34,942
|
$
|
68,842
|
$
|
105,021
|
$
|
138,126
|
||||||||
Other Comprehensive Income (Loss):
|
||||||||||||||||
Foreign currency translation adjustment
|
17,515
|
51,401
|
(43,234
|
)
|
84,442
|
|||||||||||
Unamortized retirement costs, tax (benefit) provision of $(596), $(2,377), $3,121, and
$(3,085), respectively
|
(2,081
|
)
|
(8,587
|
)
|
11,117
|
(11,113
|
)
|
|||||||||
Unrealized (loss) gain on interest rate swaps, tax (benefit) provision of $(1,263), $450,
$(814) and $478, respectively
|
(1,136
|
)
|
734
|
(2,569
|
)
|
780
|
||||||||||
Total Other Comprehensive Income (Loss)
|
14,298
|
43,548
|
(34,686
|
)
|
74,109
|
|||||||||||
Comprehensive Income
|
$
|
49,240
|
$
|
112,390
|
$
|
70,335
|
$
|
212,235
|
Nine Months Ended
January 31,
|
||||||||
2019
|
2018
|
|||||||
Operating Activities
|
||||||||
Net income
|
$
|
105,021
|
$
|
138,126
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Amortization of intangibles
|
39,825
|
35,965
|
||||||
Amortization of product development spending
|
29,301
|
30,314
|
||||||
Depreciation and amortization of technology, property and equipment
|
52,414
|
48,471
|
||||||
Restructuring charges
|
3,562
|
26,531
|
||||||
Stock-based compensation expense
|
14,974
|
6,510
|
||||||
Royalty advances
|
(100,454
|
)
|
(89,366
|
)
|
||||
Earned royalty advances
|
94,240
|
81,976
|
||||||
Impairment of publishing brand
|
—
|
3,600
|
||||||
Other non-cash charges (credits)
|
10,898
|
(4,976
|
)
|
|||||
Net change in operating assets and liabilities
|
(202,173
|
)
|
(86,484
|
)
|
||||
Net Cash Provided by Operating Activities
|
47,608
|
190,667
|
||||||
Investing Activities
|
||||||||
Product development spending
|
(14,251
|
)
|
(30,426
|
)
|
||||
Additions to technology, property and equipment
|
(49,988
|
)
|
(78,958
|
)
|
||||
Business acquired in purchase transaction, net of cash acquired
|
(190,467
|
)
|
—
|
|||||
Acquisitions of publication rights and other
|
(4,386
|
)
|
(25,227
|
)
|
||||
Net Cash Used in Investing Activities
|
(259,092
|
)
|
(134,611
|
)
|
||||
Financing Activities
|
||||||||
Repayment of long-term debt
|
(217,200
|
)
|
(238,951
|
)
|
||||
Borrowing of long-term debt
|
490,512
|
305,754
|
||||||
Purchase of treasury shares
|
(34,994
|
)
|
(29,257
|
)
|
||||
Change in book overdrafts
|
(6,657
|
)
|
(8,884
|
)
|
||||
Cash dividends
|
(56,963
|
)
|
(55,093
|
)
|
||||
Net proceeds from exercise of stock options and other
|
6,278
|
30,606
|
||||||
Net Cash Provided by Financing Activities
|
180,976
|
4,175
|
||||||
Effects of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash (1)
|
(6,359
|
)
|
10,015
|
|||||
Cash, Cash Equivalents and Restricted Cash (1)
|
||||||||
(Decrease)/Increase for the Period
|
(36,867
|
)
|
70,246
|
|||||
Balance at Beginning of Period
|
170,257
|
58,516
|
||||||
Balance at End of Period
|
$
|
133,390
|
$
|
128,762
|
||||
Cash Paid During the Period for:
|
||||||||
Interest
|
$
|
10,781
|
$
|
10,766
|
||||
Income taxes, net of refunds
|
$
|
29,604
|
$
|
39,655
|
||||
Non-cash items:
|
||||||||
Non-cash items associated with the acquisition of Learning House
|
||||||||
Warrants to purchase 0.4 million shares of Wiley Class A Common Stock issued in connection with the Learning House acquisition
|
$
|
565
|
$
|
—
|
||||
(1) |
Due to the retrospective adoption of ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” we are now required to include restricted cash as
part of the change in cash, cash equivalents, and restricted cash. As a result, amounts which were previously classified as cash flows from operating activities have been reclassified as they are recognized in the total change in cash,
cash equivalents and restricted cash. Refer to Note 2, "Recent Accounting Standards," in the Notes to Unaudited Condensed Consolidated Financial Statements for more information.
|
Common Stock
Class A
|
Common Stock
Class B
|
Additional
Paid-in Capital
|
Retained
Earnings
|
Treasury
Stock
|
Accumulated Other
Comprehensive Loss
|
Total
Shareholder’s Equity
|
||||||||||||||||||||||
Balance at October 31, 2018
|
$
|
70,125
|
$
|
13,057
|
$
|
417,718
|
$
|
1,870,609
|
$
|
(713,553
|
)
|
$
|
(488,564
|
)
|
$
|
1,169,392
|
||||||||||||
Restricted Shares Issued under Stock-based Compensation Plans
|
—
|
—
|
(927
|
)
|
—
|
1,004
|
—
|
77
|
||||||||||||||||||||
Net (Payments)/Proceeds from Exercise of Stock Options and Other
|
—
|
—
|
18
|
—
|
(1,024
|
)
|
—
|
(1,006
|
)
|
|||||||||||||||||||
Excess Tax Benefits from Stock-based Compensation
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
Stock-based Compensation Expense
|
—
|
—
|
6,092
|
—
|
—
|
—
|
6,092
|
|||||||||||||||||||||
Purchase of Treasury Shares
|
—
|
—
|
—
|
—
|
(10,000
|
)
|
—
|
(10,000
|
)
|
|||||||||||||||||||
Class A Common Stock Dividends ($0.33 per share)
|
—
|
—
|
—
|
(15,915
|
)
|
—
|
—
|
(15,915
|
)
|
|||||||||||||||||||
Class B Common Stock Dividends ($0.33 per share)
|
—
|
—
|
—
|
(3,016
|
)
|
—
|
—
|
(3,016
|
)
|
|||||||||||||||||||
Common Stock Class Conversions
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
Issuance of Warrants Related to Acquisition of a Business
|
—
|
—
|
565
|
—
|
—
|
—
|
565
|
|||||||||||||||||||||
Comprehensive Income (Loss)
|
—
|
—
|
—
|
34,942
|
—
|
14,298
|
49,240
|
|||||||||||||||||||||
Balance at January 31, 2019
|
$
|
70,125
|
$
|
13,057
|
$
|
423,466
|
$
|
1,886,620
|
$
|
(723,573
|
)
|
$
|
(474,266
|
)
|
$
|
1,195,429
|
Common Stock
Class A
|
Common Stock
Class B
|
Additional
Paid-in Capital
|
Retained
Earnings
|
Treasury
Stock
|
Accumulated Other
Comprehensive Loss
|
Total
Shareholder’s Equity
|
||||||||||||||||||||||
Balance at October 31, 2017
|
$
|
70,097
|
$
|
13,085
|
$
|
392,493
|
$
|
1,747,998
|
$
|
(699,898
|
)
|
$
|
(476,725
|
)
|
$
|
1,047,050
|
||||||||||||
Restricted Shares Issued under Stock-based Compensation Plans
|
—
|
—
|
(441
|
)
|
—
|
489
|
—
|
48
|
||||||||||||||||||||
Net Proceeds from Exercise of Stock Options and Other
|
—
|
—
|
10,001
|
—
|
13,258
|
—
|
23,259
|
|||||||||||||||||||||
Excess Tax Benefits from Stock-based Compensation
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
Stock-based Compensation Expense
|
—
|
—
|
3,914
|
—
|
60
|
—
|
3,974
|
|||||||||||||||||||||
Purchase of Treasury Shares
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
Class A Common Stock Dividends ($0.32 per share)
|
—
|
—
|
—
|
(15,463
|
)
|
—
|
—
|
(15,463
|
)
|
|||||||||||||||||||
Class B Common Stock Dividends ($0.32 per share)
|
—
|
—
|
—
|
(2,931
|
)
|
—
|
—
|
(2,931
|
)
|
|||||||||||||||||||
Common Stock Class Conversions
|
10
|
(10
|
)
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||
Comprehensive Income (Loss)
|
—
|
—
|
—
|
68,842
|
—
|
43,547
|
112,389
|
|||||||||||||||||||||
Balance at January 31, 2018
|
$
|
70,107
|
$
|
13,075
|
$
|
405,967
|
$
|
1,798,446
|
$
|
(686,091
|
)
|
$
|
(433,178
|
)
|
$
|
1,168,326
|
Common Stock
Class A
|
Common Stock
Class B
|
Additional
Paid-in Capital
|
Retained
Earnings
|
Treasury
Stock
|
Accumulated Other
Comprehensive Loss
|
Total
Shareholder’s Equity
|
||||||||||||||||||||||
Balance at April 30, 2018
|
$
|
70,111
|
$
|
13,071
|
$
|
407,120
|
$
|
1,834,057
|
$
|
(694,222
|
)
|
$
|
(439,580
|
)
|
$
|
1,190,557
|
||||||||||||
Restricted Shares Issued under Stock-based Compensation Plans
|
—
|
—
|
(3,911
|
)
|
2
|
4,083
|
—
|
174
|
||||||||||||||||||||
Net Proceeds from Exercise of Stock Options and Other
|
—
|
—
|
4,718
|
—
|
1,560
|
—
|
6,278
|
|||||||||||||||||||||
Excess Tax Benefits from Stock-based Compensation
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
Stock-based Compensation Expense
|
—
|
—
|
14,974
|
—
|
—
|
—
|
14,974
|
|||||||||||||||||||||
Purchase of Treasury Shares
|
—
|
—
|
—
|
—
|
(34,994
|
)
|
—
|
(34,994
|
)
|
|||||||||||||||||||
Class A Common Stock Dividends ($0.99 per share)
|
—
|
—
|
—
|
(47,911
|
)
|
—
|
—
|
(47,911
|
)
|
|||||||||||||||||||
Class B Common Stock Dividends ($0.99 per share)
|
—
|
—
|
—
|
(9,052
|
)
|
—
|
—
|
(9,052
|
)
|
|||||||||||||||||||
Common Stock Class Conversions
|
14
|
(14
|
)
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||
Issuance of Warrants Related to Acquisition of a Business
|
—
|
—
|
565
|
—
|
—
|
—
|
565
|
|||||||||||||||||||||
Adjustment due to adoption of new revenue standard
|
—
|
—
|
—
|
4,503
|
—
|
—
|
4,503
|
|||||||||||||||||||||
Comprehensive Income (Loss)
|
—
|
—
|
—
|
105,021
|
—
|
(34,686
|
)
|
70,335
|
||||||||||||||||||||
Balance at January 31, 2019
|
$
|
70,125
|
$
|
13,057
|
$
|
423,466
|
$
|
1,886,620
|
$
|
(723,573
|
)
|
$
|
(474,266
|
)
|
$
|
1,195,429
|
Common Stock
Class A
|
Common Stock
Class B
|
Additional
Paid-in Capital
|
Retained
Earnings
|
Treasury
Stock
|
Accumulated Other
Comprehensive Loss
|
Total
Shareholder’s Equity
|
||||||||||||||||||||||
Balance at April 30, 2017
|
$
|
70,086
|
$
|
13,096
|
$
|
387,896
|
$
|
1,715,423
|
$
|
(676,077
|
)
|
$
|
(507,287
|
)
|
$
|
1,003,137
|
||||||||||||
Restricted Shares Issued under Stock-based Compensation Plans
|
—
|
—
|
(2,706
|
)
|
(10
|
)
|
2,904
|
—
|
188
|
|||||||||||||||||||
Net Proceeds from Exercise of Stock Options and Other
|
—
|
—
|
14,327
|
—
|
16,279
|
—
|
30,606
|
|||||||||||||||||||||
Excess Tax Benefits from Stock-based Compensation
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
Stock-based Compensation Expense
|
—
|
—
|
6,450
|
—
|
60
|
—
|
6,510
|
|||||||||||||||||||||
Purchase of Treasury Shares
|
—
|
—
|
—
|
—
|
(29,257
|
)
|
—
|
(29,257
|
)
|
|||||||||||||||||||
Class A Common Stock Dividends ($0.96 per share)
|
—
|
—
|
—
|
(46,294
|
)
|
—
|
—
|
(46,294
|
)
|
|||||||||||||||||||
Class B Common Stock Dividends ($0.96 per share)
|
—
|
—
|
—
|
(8,799
|
)
|
—
|
—
|
(8,799
|
)
|
|||||||||||||||||||
Common Stock Class Conversions
|
21
|
(21
|
)
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||
Comprehensive Income (Loss)
|
—
|
—
|
—
|
138,126
|
—
|
74,109
|
212,235
|
|||||||||||||||||||||
Balance at January 31, 2018
|
$
|
70,107
|
$
|
13,075
|
$
|
405,967
|
$
|
1,798,446
|
$
|
(686,091
|
)
|
$
|
(433,178
|
)
|
$
|
1,168,326
|
Balance at the Beginning of Period
|
April 30, 2018
|
April 30, 2017
|
||||||
Cash and cash equivalents
|
$
|
169,773
|
$
|
58,516
|
||||
Restricted cash included in Prepaid expenses and other current assets
|
484
|
—
|
||||||
Total cash, cash equivalents, and restricted cash shown in the Unaudited Condensed Consolidated Statement of Cash Flows
|
$
|
170,257
|
$
|
58,516
|
Balance at the End of Period
|
January 31, 2019
|
January 31, 2018
|
||||||
Cash and cash equivalents
|
$
|
132,758
|
$
|
128,217
|
||||
Restricted cash included in Prepaid expenses and other current assets
|
632
|
545
|
||||||
Total cash, cash equivalents, and restricted cash shown in the Unaudited Condensed Consolidated Statement of Cash Flows
|
$
|
133,390
|
$
|
128,762
|
(i) |
perpetual licenses granted in connection with other deliverables; revenue that was previously recognized over the life of the associated subscription for
future content is now recognized at a point in time, which is when access to content is initially granted,
|
(ii) |
customers’ unexercised rights; revenue which was previously recognized at the end of a pre-determined period for situations where we have received a
nonrefundable payment for a customer to receive a good or service and the customer has not exercised such right is now recognized as revenue in proportion to the pattern of rights exercised by the customer,
|
(iii) |
recognition of estimated revenue from royalty agreements in the period of usage, and
|
(iv) |
recognition of revenue for certain arrangements with minimum guarantees on a time-based (straight-line) basis due to a stand-ready obligation to provide
additional rights to content.
|
April 30, 2018
|
Adjustments due to Adoption
|
May 1, 2018
|
||||||||||
Assets
|
||||||||||||
Accounts receivable, net
|
$
|
212,377
|
$
|
93,349
|
$
|
305,726
|
||||||
Product development assets
|
78,814
|
(3,725
|
)
|
75,089
|
||||||||
Technology, property and equipment, net
|
289,934
|
(361
|
)
|
289,573
|
||||||||
Other non-current assets
|
85,802
|
5,274
|
91,076
|
|||||||||
Liabilities
|
||||||||||||
Accrued royalties
|
73,007
|
(731
|
)
|
72,276
|
||||||||
Contract liability (Deferred revenue)
|
486,353
|
89,364
|
575,717
|
|||||||||
Deferred income tax liabilities
|
143,518
|
1,400
|
144,918
|
|||||||||
Retained earnings
|
$
|
1,834,057
|
$
|
4,503
|
$
|
1,838,560
|
Estimated
Fair Value
|
Weighted-Average
Useful Life
(in Years)
|
|||||||
Customer Relationships
|
$
|
103.8
|
15
|
|||||
Course Content
|
5.7
|
4
|
||||||
Total
|
$
|
109.5
|
Three Months Ended January 31,
|
||||||||||||||||||||||||||||||||
2019
|
2018
|
|||||||||||||||||||||||||||||||
Research
|
Publishing
|
Solutions
|
Total
|
Research
|
Publishing
|
Solutions
|
Total
|
|||||||||||||||||||||||||
Research:
|
||||||||||||||||||||||||||||||||
Journals Subscriptions
|
$
|
152,291
|
$
|
—
|
$
|
—
|
$
|
152,291
|
$
|
160,287
|
$
|
—
|
$
|
—
|
$
|
160,287
|
||||||||||||||||
Open Access
|
14,194
|
—
|
—
|
14,194
|
9,905
|
—
|
—
|
9,905
|
||||||||||||||||||||||||
Licensing, Reprints, Backfiles and Other
|
50,804
|
—
|
—
|
50,804
|
45,035
|
—
|
—
|
45,035
|
||||||||||||||||||||||||
Publishing Technology Services (Atypon)
|
9,064
|
—
|
—
|
9,064
|
8,262
|
—
|
—
|
8,262
|
||||||||||||||||||||||||
Publishing:
|
||||||||||||||||||||||||||||||||
STM and Professional Publishing
|
—
|
64,599
|
—
|
64,599
|
—
|
80,775
|
—
|
80,775
|
||||||||||||||||||||||||
Education Publishing
|
—
|
37,437
|
—
|
37,437
|
—
|
48,446
|
—
|
48,446
|
||||||||||||||||||||||||
Course Workflow (WileyPLUS)
|
—
|
22,935
|
—
|
22,935
|
—
|
21,406
|
—
|
21,406
|
||||||||||||||||||||||||
Test Preparation and Certification
|
—
|
9,560
|
—
|
9,560
|
—
|
7,758
|
—
|
7,758
|
||||||||||||||||||||||||
Licensing, Distribution, Advertising and Other
|
—
|
11,104
|
—
|
11,104
|
—
|
11,859
|
—
|
11,859
|
||||||||||||||||||||||||
Solutions:
|
||||||||||||||||||||||||||||||||
Education Services
|
—
|
—
|
46,207
|
46,207
|
—
|
—
|
32,242
|
32,242
|
||||||||||||||||||||||||
Professional Assessment
|
—
|
—
|
14,600
|
14,600
|
—
|
—
|
13,228
|
13,228
|
||||||||||||||||||||||||
Corporate Learning
|
—
|
—
|
16,572
|
16,572
|
—
|
—
|
16,472
|
16,472
|
||||||||||||||||||||||||
Total
|
$
|
226,353
|
$
|
145,635
|
$
|
77,379
|
$
|
449,367
|
$
|
223,489
|
$
|
170,244
|
$
|
61,942
|
$
|
455,675
|
Nine Months Ended January 31,
|
||||||||||||||||||||||||||||||||
2019
|
2018
|
|||||||||||||||||||||||||||||||
Research
|
Publishing
|
Solutions
|
Total
|
Research
|
Publishing
|
Solutions
|
Total
|
|||||||||||||||||||||||||
Research:
|
||||||||||||||||||||||||||||||||
Journals Subscriptions
|
$
|
482,000
|
$
|
—
|
$
|
—
|
$
|
482,000
|
$
|
498,775
|
$
|
—
|
$
|
—
|
$
|
498,775
|
||||||||||||||||
Open Access
|
38,917
|
—
|
—
|
38,917
|
28,058
|
—
|
—
|
28,058
|
||||||||||||||||||||||||
Licensing, Reprints, Backfiles and Other
|
132,041
|
—
|
—
|
132,041
|
124,594
|
—
|
—
|
124,594
|
||||||||||||||||||||||||
Publishing Technology Services (Atypon)
|
27,032
|
—
|
—
|
27,032
|
24,559
|
—
|
—
|
24,559
|
||||||||||||||||||||||||
Publishing:
|
||||||||||||||||||||||||||||||||
STM and Professional Publishing
|
—
|
197,565
|
—
|
197,565
|
—
|
215,835
|
—
|
215,835
|
||||||||||||||||||||||||
Education Publishing
|
—
|
127,736
|
—
|
127,736
|
—
|
151,893
|
—
|
151,893
|
||||||||||||||||||||||||
Course Workflow (WileyPLUS)
|
—
|
42,142
|
—
|
42,142
|
—
|
38,926
|
—
|
38,926
|
||||||||||||||||||||||||
Test Preparation and Certification
|
—
|
29,343
|
—
|
29,343
|
—
|
27,167
|
—
|
27,167
|
||||||||||||||||||||||||
Licensing, Distribution, Advertising and Other
|
—
|
31,269
|
—
|
31,269
|
—
|
32,686
|
—
|
32,686
|
||||||||||||||||||||||||
Solutions:
|
||||||||||||||||||||||||||||||||
Education Services
|
—
|
—
|
105,244
|
105,244
|
—
|
—
|
88,316
|
88,316
|
||||||||||||||||||||||||
Professional Assessment
|
—
|
—
|
47,667
|
47,667
|
—
|
—
|
43,936
|
43,936
|
||||||||||||||||||||||||
Corporate Learning
|
—
|
—
|
47,934
|
47,934
|
—
|
—
|
44,105
|
44,105
|
||||||||||||||||||||||||
Total
|
$
|
679,990
|
$
|
428,055
|
$
|
200,845
|
$
|
1,308,890
|
$
|
675,986
|
$
|
466,507
|
$
|
176,357
|
$
|
1,318,850
|
● |
Research,
|
● |
Publishing, and
|
● |
Solutions.
|
● |
Journal Subscriptions,
|
● |
Open Access,
|
● |
Licensing, Reprints, Backfiles and Other, and
|
● |
Publishing Technology Services (Atypon).
|
● |
STM (Scientific, Technical and Medical) and Professional Publishing,
|
● |
Education Publishing,
|
● |
Course Workflow (WileyPLUS),
|
● |
Test Preparation and Certification, and
|
● |
Licensing, Distribution, Advertising and Other.
|
● |
Education Services,
|
● |
Professional Assessment, and
|
● |
Corporate Learning.
|
January 31, 2019
|
April 30, 2018 (1)
|
Increase/
(Decrease)
|
||||||||||
Balances from contracts with customers:
|
||||||||||||
Accounts receivable, net (2)
|
$
|
194,764
|
$
|
212,377
|
$
|
(17,613
|
)
|
|||||
Contract liability (Deferred revenue) (2)
|
271,541
|
486,353
|
(214,812
|
)
|
||||||||
Contract liability (Deferred revenue) (included in Other Long-Term Liabilities)
|
$
|
14,722
|
$
|
—
|
$
|
14,722
|
Nine Months Ended
January 31,
|
||||||||
2019
|
2018
|
|||||||
Restricted Stock:
|
||||||||
Awards granted
|
406
|
528
|
||||||
Weighted average fair value of grant
|
$
|
63.09
|
$
|
53.27
|
Foreign
Currency Translation
|
Unamortized
Retirement Costs
|
Interest
Rate Swaps
|
Total
|
|||||||||||||
Balance at October 31, 2018
|
$
|
(312,322
|
)
|
$
|
(177,828
|
)
|
$
|
1,586
|
$
|
(488,564
|
)
|
|||||
Other comprehensive (loss) income before reclassifications
|
17,515
|
(3,141
|
)
|
176
|
14,550
|
|||||||||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
1,060
|
(1,312
|
)
|
(252
|
)
|
||||||||||
Total other comprehensive (loss) income
|
17,515
|
(2,081
|
)
|
(1,136
|
)
|
14,298
|
||||||||||
Balance at January 31, 2019
|
$
|
(294,807
|
)
|
$
|
(179,909
|
)
|
$
|
450
|
$
|
(474,266
|
)
|
|||||
Balance at April 30, 2018
|
$
|
(251,573
|
)
|
$
|
(191,026
|
)
|
$
|
3,019
|
$
|
(439,580
|
)
|
|||||
Other comprehensive income (loss) before reclassifications
|
(43,234
|
)
|
7,852
|
789
|
(34,593
|
)
|
||||||||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
3,265
|
(3,358
|
)
|
(93
|
)
|
||||||||||
Total other comprehensive income (loss)
|
(43,234
|
)
|
11,117
|
(2,569
|
)
|
(34,686
|
)
|
|||||||||
Balance at January 31, 2019
|
$
|
(294,807
|
)
|
$
|
(179,909
|
)
|
$
|
450
|
$
|
(474,266
|
)
|
Foreign
Currency Translation
|
Unamortized
Retirement Costs
|
Interest
Rate Swaps
|
Total
|
|||||||||||||
Balance at October 31, 2017
|
$
|
(286,171
|
)
|
$
|
(193,028
|
)
|
$
|
2,473
|
$
|
(476,726
|
)
|
|||||
Other comprehensive income (loss) before reclassifications
|
51,401
|
(9,686
|
)
|
509
|
42,224
|
|||||||||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
1,099
|
225
|
1,324
|
||||||||||||
Total other comprehensive income (loss)
|
51,401
|
(8,587
|
)
|
734
|
43,548
|
|||||||||||
Balance at January 31, 2018
|
$
|
(234,770
|
)
|
$
|
(201,615
|
)
|
$
|
3,207
|
$
|
(433,178
|
)
|
|||||
Balance at April 30, 2017
|
$
|
(319,212
|
)
|
$
|
(190,502
|
)
|
$
|
2,427
|
$
|
(507,287
|
)
|
|||||
Other comprehensive income (loss) before reclassifications
|
84,442
|
(14,376
|
)
|
315
|
70,381
|
|||||||||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
3,263
|
465
|
3,728
|
||||||||||||
Total other comprehensive income (loss)
|
84,442
|
(11,113
|
)
|
780
|
74,109
|
|||||||||||
Balance at January 31, 2018
|
$
|
(234,770
|
)
|
$
|
(201,615
|
)
|
$
|
3,207
|
$
|
(433,178
|
)
|
Three Months Ended
January 31,
|
Nine Months Ended
January 31,
|
||||||||||
2019
|
2018
|
2019
|
2018
|
||||||||
Weighted average shares outstanding
|
57,200
|
57,170
|
57,383
|
57,123
|
|||||||
Less: Unvested restricted shares
|
(42)
|
(135)
|
(53)
|
(144)
|
|||||||
Shares used for basic earnings per share
|
57,158
|
57,035
|
57,330
|
56,979
|
|||||||
Dilutive effect of stock options and other stock awards
|
468
|
836
|
552
|
757
|
|||||||
Shares used for diluted earnings per share
|
57,626
|
57,871
|
57,882
|
57,736
|
Date of Declaration by Board of Directors
|
Quarterly Cash Dividend
|
Total Dividend
|
Class of Common Stock
|
Dividend Paid Date
|
Shareholders of Record as of Date
|
June 21, 2018
|
$0.33 per common share
|
$19.0 million
|
Class A and Class B
|
July 18, 2018
|
July 3, 2018
|
September 26, 2018
|
$0.33 per common share
|
$18.9 million
|
Class A and Class B
|
October 24, 2018
|
October 9, 2018
|
December 19, 2018
|
$0.33 per common share
|
$18.9 million
|
Class A and Class B
|
January 16, 2019
|
January 2, 2019
|
Three Months Ended
January 31,
|
Nine Months Ended
January 31,
|
Total Charges
|
||||||||||||||||||
2019
|
2018
|
2019
|
2018
|
Incurred to Date
|
||||||||||||||||
(Credits) Charges by Segment:
|
||||||||||||||||||||
Research
|
$
|
(51
|
)
|
$
|
690
|
$
|
1,251
|
$
|
5,138
|
$
|
26,664
|
|||||||||
Publishing
|
(4
|
)
|
(392
|
)
|
735
|
6,933
|
39,666
|
|||||||||||||
Solutions
|
74
|
1,277
|
914
|
3,447
|
7,161
|
|||||||||||||||
Corporate Expenses
|
(367
|
)
|
633
|
662
|
11,013
|
96,581
|
||||||||||||||
Total Restructuring and Related (Credits) Charges
|
$
|
(348
|
)
|
$
|
2,208
|
$
|
3,562
|
$
|
26,531
|
$
|
170,072
|
|||||||||
(Credits) Charges by Activity:
|
||||||||||||||||||||
Severance
|
$
|
(911
|
)
|
$
|
1,781
|
$
|
1,983
|
$
|
25,047
|
$
|
116,786
|
|||||||||
Consulting and Contract Termination Costs
|
301
|
427
|
526
|
1,948
|
21,155
|
|||||||||||||||
Other Activities
|
262
|
—
|
1,053
|
(464
|
)
|
32,131
|
||||||||||||||
Total Restructuring and Related (Credits) Charges
|
$
|
(348
|
)
|
$
|
2,208
|
$
|
3,562
|
$
|
26,531
|
$
|
170,072
|
April 30, 2018
|
Charges
|
Payments
|
Foreign
Translation &
Other Adjustments
|
January 31, 2019
|
||||||||||||||||
Severance
|
$
|
17,279
|
$
|
1,983
|
$
|
(11,108
|
)
|
$
|
(229
|
)
|
$
|
7,925
|
||||||||
Consulting and Contract Termination Costs
|
—
|
526
|
(223
|
)
|
—
|
303
|
||||||||||||||
Other Activities
|
2,772
|
1,053
|
(1,250
|
)
|
261
|
2,836
|
||||||||||||||
Total
|
$
|
20,051
|
$
|
3,562
|
$
|
(12,581
|
)
|
$
|
32
|
$
|
11,064
|
Three Months Ended
January 31,
|
Nine Months Ended
January 31,
|
|||||||||||||||
2019
|
2018 (1)
|
2019
|
2018 (1)
|
|||||||||||||
Revenue:
|
||||||||||||||||
Research
|
$
|
226,353
|
$
|
223,489
|
$
|
679,990
|
$
|
675,986
|
||||||||
Publishing
|
145,635
|
170,244
|
428,055
|
466,507
|
||||||||||||
Solutions
|
77,379
|
61,942
|
200,845
|
176,357
|
||||||||||||
Total Revenue
|
$
|
449,367
|
$
|
455,675
|
$
|
1,308,890
|
$
|
1,318,850
|
||||||||
Contribution to Profit:
|
||||||||||||||||
Research
|
$
|
60,532
|
$
|
58,253
|
$
|
176,565
|
$
|
188,861
|
||||||||
Publishing
|
33,706
|
47,895
|
86,881
|
94,278
|
||||||||||||
Solutions
|
(3,427
|
)
|
6,403
|
6,846
|
11,744
|
|||||||||||
Total Contribution to Profit (1)
|
$
|
90,811
|
$
|
112,551
|
$
|
270,292
|
$
|
294,883
|
||||||||
Corporate Expenses
|
(40,465
|
)
|
(47,157
|
)
|
(126,331
|
)
|
(136,131
|
)
|
||||||||
Operating Income (1)
|
$
|
50,346
|
$
|
65,394
|
$
|
143,961
|
$
|
158,752
|
(1) |
Due to the retrospective adoption of ASU 2017-07, total net benefits of $2.0 million and $6.0 million related to the non-service components of defined benefit
and other post-employment benefit plans were reclassified from Operating and Administrative Expenses to Interest Income and Other for the three and nine months ended January 31, 2018, respectively. Refer to Note 2, "Recent Accounting
Standards," in the Notes to Unaudited Condensed Consolidated Financial Statements for more information. The impact of the reclassification on Contribution to Profit by segment for the three months ended January 31, 2018 was $1.0 million
in Research, $0.6 million in Publishing, and $0.4 million in Corporate expenses. The impact of the reclassification on Contribution to Profit by segment for the nine months ended January 31, 2018 was $3.1 million in Research, $1.7
million in Publishing, and $1.2 million in Corporate expenses.
|
January 31, 2019
|
April 30, 2018
|
|||||||
Finished goods
|
$
|
31,777
|
$
|
36,503
|
||||
Work-in-process
|
2,384
|
2,139
|
||||||
Paper and other materials
|
611
|
550
|
||||||
$
|
34,772
|
$
|
39,192
|
|||||
Inventory value of estimated sales returns
|
5,046
|
4,626
|
||||||
LIFO reserve
|
(4,554
|
)
|
(4,329
|
)
|
||||
Total inventories
|
$
|
35,264
|
$
|
39,489
|
April 30, 2018
|
Acquisition (1)
|
Foreign
Translation
Adjustment
|
January 31, 2019
|
|||||||||||||
Research
|
$
|
463,419
|
$
|
—
|
$
|
(18,338
|
)
|
$
|
445,081
|
|||||||
Publishing
|
283,851
|
—
|
(518
|
)
|
283,333
|
|||||||||||
Solutions
|
272,531
|
109,139
|
(6,862
|
)
|
374,808
|
|||||||||||
Total
|
$
|
1,019,801
|
$
|
109,139
|
$
|
(25,718
|
)
|
$
|
1,103,222
|
January 31, 2019
|
April 30, 2018
|
|||||||
Intangible
Assets with Determinable Lives, net:
|
||||||||
Content and Publishing Rights (1)
|
$
|
405,426
|
$
|
436,760
|
||||
Customer Relationships (1)
|
251,855
|
161,729
|
||||||
Brands and Trademarks
|
13,663
|
16,100
|
||||||
Covenants not to Compete
|
497
|
655
|
||||||
Total
|
671,441
|
615,244
|
||||||
Intangible
Assets with Indefinite Lives:
|
||||||||
Brands and Trademarks
|
132,912
|
138,589
|
||||||
Content and Publishing Rights
|
88,250
|
94,238
|
||||||
Total
|
221,162
|
232,827
|
||||||
Total Intangible Assets, Net
|
$
|
892,603
|
$
|
848,071
|
Three Months Ended
January 31,
|
Nine Months Ended
January 31,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Service cost
|
$
|
226
|
$
|
243
|
$
|
688
|
$
|
715
|
||||||||
Interest cost
|
6,103
|
6,407
|
18,484
|
19,005
|
||||||||||||
Expected return on plan assets
|
(9,638
|
)
|
(9,924
|
)
|
(29,260
|
)
|
(29,363
|
)
|
||||||||
Net amortization of prior service cost
|
(24
|
)
|
(24
|
)
|
(72
|
)
|
(72
|
)
|
||||||||
Unrecognized net actuarial loss
|
1,429
|
1,536
|
4,337
|
4,550
|
||||||||||||
Pension plan actuarial loss
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
21
|
||||||||
Net pension income
|
(1,904
|
)
|
(1,762
|
)
|
(5,823
|
)
|
(5,144
|
)
|
●
|
an increase in the Education Services business due to the incremental impact of the acquisition of Learning House on November 1,
2018 which contributed $13.4 million in revenue, and
|
●
|
an increase in our Research segment, primarily driven by growth in Open Access.
|
Three Months Ended January 31,
|
Total Charges
|
|||||||||||
2019
|
2018
|
Incurred to Date
|
||||||||||
(Credits) Charges by Segment:
|
||||||||||||
Research
|
$
|
(51
|
)
|
$
|
690
|
$
|
26,664
|
|||||
Publishing
|
(4
|
)
|
(392
|
)
|
39,666
|
|||||||
Solutions
|
74
|
1,277
|
7,161
|
|||||||||
Corporate Expenses
|
(367
|
)
|
633
|
96,581
|
||||||||
Total Restructuring and Related (Credits) Charges
|
$
|
(348
|
)
|
$
|
2,208
|
$
|
170,072
|
|||||
(Credits) Charges by Activity:
|
||||||||||||
Severance
|
$
|
(911
|
)
|
$
|
1,781
|
$
|
116,786
|
|||||
Consulting and Contract Termination Costs
|
301
|
427
|
21,155
|
|||||||||
Other Activities
|
262
|
-
|
32,131
|
|||||||||
Total Restructuring and Related (Credits) Charges
|
$
|
(348
|
)
|
$
|
2,208
|
$
|
170,072
|
Three Months Ended January 31,
|
||||||||
2019
|
2018
|
|||||||
GAAP EPS
|
$
|
0.61
|
$
|
1.19
|
||||
Adjustments:
|
||||||||
Restructuring and related (credits) charges
|
—
|
0.04
|
||||||
Foreign exchange losses on intercompany transactions
|
—
|
0.07
|
||||||
Impact of Tax Cuts and Jobs Act
|
—
|
(0.43
|
)
|
|||||
Non-GAAP Adjusted EPS
|
$
|
0.61
|
$
|
0.87
|
Three Months Ended January 31,
|
% Change
|
|||||||||||||||
RESEARCH:
|
2019
|
2018 (a)
|
% Change
|
w/o FX (b)
|
||||||||||||
Revenue:
|
||||||||||||||||
Journal Subscriptions
|
$
|
152,291
|
$
|
160,287
|
(5
|
)%
|
(1
|
)%
|
||||||||
Open Access
|
14,194
|
9,905
|
43
|
%
|
48
|
%
|
||||||||||
Licensing, Reprints, Backfiles, and Other
|
50,804
|
45,035
|
13
|
%
|
16
|
%
|
||||||||||
Total Journal Revenue
|
217,289
|
215,227
|
1
|
%
|
4
|
%
|
||||||||||
Publishing Technology Services (Atypon)
|
9,064
|
8,262
|
10
|
%
|
10
|
%
|
||||||||||
Total Research Revenue
|
226,353
|
223,489
|
1
|
%
|
5
|
%
|
||||||||||
Cost of Sales
|
62,839
|
62,535
|
0
|
%
|
4
|
%
|
||||||||||
Gross Profit
|
163,514
|
160,954
|
2
|
%
|
5
|
%
|
||||||||||
Gross Profit Margin
|
72.2
|
%
|
72.0
|
%
|
||||||||||||
Operating Expenses
|
96,092
|
95,277
|
1
|
%
|
3
|
%
|
||||||||||
Amortization of Intangibles
|
6,941
|
6,734
|
3
|
%
|
6
|
%
|
||||||||||
Restructuring (Credits) Charges (See Note 8)
|
(51
|
)
|
690
|
#
|
#
|
|||||||||||
Contribution to Profit
|
$
|
60,532
|
$
|
58,253
|
4
|
%
|
8
|
%
|
||||||||
Contribution Margin
|
26.7
|
%
|
26.1
|
%
|
(a) |
Due to the retrospective adoption of ASU 2017-07, total net benefits related to defined benefit and other post-employment benefit plans were reclassified from
Operating and Administrative Expenses to Interest and Other Income. The amount for the three months ended January 31, 2018 for the Research segment was $1.0 million. Refer to Note 2, "Recent Accounting Standards," for more information.
|
(b) |
Adjusted to exclude FX impact and Restructuring (Credits) Charges.
|
Three Months Ended January 31,
|
% Change
|
|||||||||||||||
PUBLISHING:
|
2019
|
2018 (a)
|
% Change
|
w/o FX (b)
|
||||||||||||
Revenue:
|
||||||||||||||||
STM and Professional Publishing
|
$
|
64,599
|
$
|
80,775
|
(20
|
)%
|
(18
|
)%
|
||||||||
Education Publishing
|
37,437
|
48,446
|
(23
|
)%
|
(21
|
)%
|
||||||||||
Course Workflow (WileyPLUS)
|
22,935
|
21,406
|
7
|
%
|
8
|
%
|
||||||||||
Test Preparation and Certification
|
9,560
|
7,758
|
23
|
%
|
24
|
%
|
||||||||||
Licensing, Distribution, Advertising and Other
|
11,104
|
11,859
|
(6
|
)%
|
(4
|
)%
|
||||||||||
Total Publishing Revenue
|
145,635
|
170,244
|
(14
|
)%
|
(13
|
)%
|
||||||||||
Cost of Sales
|
43,370
|
52,158
|
(17
|
)%
|
(15
|
)%
|
||||||||||
Gross Profit
|
102,265
|
118,086
|
(13
|
)%
|
(12
|
)%
|
||||||||||
Gross Profit Margin
|
70.2
|
%
|
69.4
|
%
|
||||||||||||
Operating Expenses
|
66,563
|
68,561
|
(3
|
)%
|
(1
|
)%
|
||||||||||
Amortization of Intangibles
|
2,000
|
2,022
|
(1
|
)%
|
(1
|
)%
|
||||||||||
Restructuring Credits (see Note 8)
|
(4
|
)
|
(392
|
)
|
(99
|
)%
|
(99
|
)%
|
||||||||
Contribution to Profit
|
$
|
33,706
|
$
|
47,895
|
(30
|
)%
|
(28
|
)%
|
||||||||
Contribution Margin
|
23.1
|
%
|
28.1
|
%
|
(a) |
Due to the retrospective adoption of ASU 2017-07, total net benefits related to defined benefit and other post-employment benefit plans were reclassified from
Operating and Administrative Expenses to Interest and Other Income. The amount for the three months ended January 31, 2018 for the Publishing segment was $0.6 million. Refer to Note 2, "Recent Accounting Standards," for more
information.
|
Three Months Ended January 31,
|
% Change
|
|||||||||||||||
SOLUTIONS:
|
2019
|
2018 (a)
|
% Change
|
w/o FX (b)
|
||||||||||||
Revenue:
|
||||||||||||||||
Education Services
|
$
|
46,207
|
$
|
32,242
|
43
|
%
|
43
|
%
|
||||||||
Professional Assessment
|
14,600
|
13,228
|
10
|
%
|
10
|
%
|
||||||||||
Corporate Learning
|
16,572
|
16,472
|
1
|
%
|
5
|
%
|
||||||||||
Total Solutions Revenue
|
77,379
|
61,942
|
25
|
%
|
26
|
%
|
||||||||||
Cost of Sales
|
37,669
|
21,668
|
74
|
%
|
75
|
%
|
||||||||||
Gross Profit
|
39,710
|
40,274
|
(1
|
)%
|
0
|
%
|
||||||||||
Gross Profit Margin
|
51.3
|
%
|
65.0
|
%
|
||||||||||||
Operating Expenses
|
37,229
|
29,189
|
28
|
%
|
29
|
%
|
||||||||||
Amortization of Intangibles
|
5,834
|
3,405
|
71
|
%
|
73
|
%
|
||||||||||
Restructuring Charges (see Note 8)
|
74
|
1,277
|
(94
|
)%
|
(94
|
)%
|
||||||||||
Contribution to Profit
|
$
|
(3,427
|
)
|
$
|
6,403
|
#
|
#
|
|||||||||
Contribution Margin
|
(4.4
|
)%
|
10.3
|
%
|
●
|
the incremental impact of Learning House, primarily due to marketing and employment related costs,
|
●
|
an increase in legacy Education Services business marketing costs of $6.9 million due to increased investments to support revenue
growth; and,
|
●
|
higher royalty costs of $3.0 million.
|
Nine Months Ended January 31,
|
Total Charges
|
|||||||||||
2019
|
2018
|
Incurred to Date
|
||||||||||
Charges by Segment:
|
||||||||||||
Research
|
$
|
1,251
|
$
|
5,138
|
$
|
26,664
|
||||||
Publishing
|
735
|
6,933
|
39,666
|
|||||||||
Solutions
|
914
|
3,447
|
7,161
|
|||||||||
Corporate Expenses
|
662
|
11,013
|
96,581
|
|||||||||
Total Restructuring and Related Charges
|
$
|
3,562
|
$
|
26,531
|
$
|
170,072
|
||||||
Charges (Credits) by Activity:
|
||||||||||||
Severance
|
$
|
1,983
|
$
|
25,047
|
$
|
116,786
|
||||||
Consulting and Contract Termination Costs
|
526
|
1,948
|
21,155
|
|||||||||
Other Activities
|
1,053
|
(464
|
)
|
32,131
|
||||||||
Total Restructuring and Related Charges
|
$
|
3,562
|
$
|
26,531
|
$
|
170,072
|
Nine Months Ended January 31,
|
||||||||
2019
|
2018
|
|||||||
GAAP EPS
|
$
|
1.81
|
$
|
2.39
|
||||
Adjustments:
|
||||||||
Restructuring and related charges
|
0.05
|
0.37
|
||||||
Foreign exchange losses on intercompany transactions
|
0.06
|
0.16
|
||||||
Impact of Tax Cuts and Job Act
|
—
|
(0.43
|
)
|
|||||
Non-GAAP Adjusted EPS
|
$
|
1.92
|
$
|
2.49
|
Nine Months Ended January 31,
|
% Change
|
|||||||||||||||
RESEARCH:
|
2019
|
2018 (a)
|
% Change
|
w/o FX (b)
|
||||||||||||
Revenue:
|
||||||||||||||||
Journal Subscriptions
|
$
|
482,000
|
$
|
498,775
|
(3
|
)%
|
(1
|
)%
|
||||||||
Open Access
|
38,917
|
28,058
|
39
|
%
|
40
|
%
|
||||||||||
Licensing, Reprints, Backfiles, and Other
|
132,041
|
124,594
|
6
|
%
|
7
|
%
|
||||||||||
Total Journal Revenue
|
652,958
|
651,427
|
—
|
2
|
%
|
|||||||||||
Publishing Technology Services (Atypon)
|
27,032
|
24,559
|
10
|
%
|
10
|
%
|
||||||||||
Total Research Revenue
|
679,990
|
675,986
|
1
|
%
|
2
|
%
|
||||||||||
Cost of Sales
|
187,412
|
182,942
|
2
|
%
|
4
|
%
|
||||||||||
Gross Profit
|
492,578
|
493,044
|
—
|
2
|
%
|
|||||||||||
Gross Profit Margin
|
72.4
|
%
|
72.9
|
%
|
||||||||||||
Operating Expenses
|
293,760
|
279,491
|
5
|
%
|
6
|
%
|
||||||||||
Amortization of Intangibles
|
21,002
|
19,554
|
7
|
%
|
8
|
%
|
||||||||||
Restructuring Charges (See Note 8)
|
1,251
|
5,138
|
(76
|
)%
|
(76
|
)%
|
||||||||||
Contribution to Profit
|
$
|
176,565
|
$
|
188,861
|
(7
|
)%
|
(4
|
)%
|
||||||||
Contribution Margin
|
26.0
|
%
|
27.9
|
%
|
(a) |
Due to the retrospective adoption of ASU 2017-07, total net benefits related to defined benefit and other post-employment benefit plans were reclassified from
Operating and Administrative Expenses to Interest and Other Income. The amount for the nine months ended January 31, 2018 for the Research segment was $3.1 million. Refer to Note 2, "Recent Accounting Standards," in the Notes to
Unaudited Condensed Consolidated Financial Statements for more information.
|
(b) |
Adjusted to exclude FX impact and Restructuring Charges.
|
● |
12 new society journals were signed with combined annual revenue of $4.4 million,
|
● |
77 society journals were renewed/extended with a combined annual revenue of $29.1,
|
● |
12 society journals were not renewed with $1.9 million in combined annual revenue.
|
Nine Months Ended January 31,
|
% Change
|
|||||||||||||||
PUBLISHING:
|
2019
|
2018 (a)
|
% Change
|
w/o FX (b)
|
||||||||||||
Revenue:
|
||||||||||||||||
STM and Professional Publishing
|
$
|
197,565
|
$
|
215,835
|
(8
|
)%
|
(8
|
)%
|
||||||||
Education Publishing
|
127,736
|
151,893
|
(16
|
)%
|
(15
|
)%
|
||||||||||
Course Workflow (WileyPLUS)
|
42,142
|
38,926
|
8
|
%
|
9
|
%
|
||||||||||
Test Preparation and Certification
|
29,343
|
27,167
|
8
|
%
|
9
|
%
|
||||||||||
Licensing, Distribution, Advertising and Other
|
31,269
|
32,686
|
(4
|
)%
|
(3
|
)%
|
||||||||||
Total Publishing Revenue
|
428,055
|
466,507
|
(8
|
)%
|
(7
|
)%
|
||||||||||
Cost of Sales
|
130,046
|
146,491
|
(11
|
)%
|
(10
|
)%
|
||||||||||
Gross Profit
|
298,009
|
320,016
|
(7
|
)%
|
(6
|
)%
|
||||||||||
Gross Profit Margin
|
69.6
|
%
|
68.6
|
%
|
||||||||||||
Operating Expenses
|
204,136
|
209,121
|
(2
|
)%
|
(1
|
)%
|
||||||||||
Amortization of Intangibles
|
6,257
|
6,084
|
3
|
%
|
3
|
%
|
||||||||||
Restructuring Charges (see Note 8)
|
735
|
6,933
|
(89
|
)%
|
(89
|
)%
|
||||||||||
Publishing Brand Impairment Charge
|
—
|
3,600
|
(100
|
)%
|
(100
|
)%
|
||||||||||
Contribution to Profit
|
$
|
86,881
|
$
|
94,278
|
(8
|
)%
|
(16
|
)%
|
||||||||
Contribution Margin
|
20.3
|
%
|
20.2
|
%
|
(a) |
Due to the retrospective adoption of ASU 2017-07, total net benefits related to defined benefit and other post-employment benefit plans were reclassified from
Operating and Administrative Expenses to Interest and Other Income. The amount for the nine months ended January 31, 2018 for the Publishing segment was $1.7 million. Refer to Note 2, "Recent Accounting Standards," in the Notes to
Unaudited Condensed Consolidated Financial Statements for more information.
|
Nine Months Ended January 31,
|
% Change
|
|||||||||||||||
SOLUTIONS:
|
2019
|
2018 (a)
|
% Change
|
w/o FX (b)
|
||||||||||||
Revenue:
|
||||||||||||||||
Education Services
|
$
|
105,244
|
$
|
88,316
|
19
|
%
|
19
|
%
|
||||||||
Professional Assessment
|
47,667
|
43,936
|
8
|
%
|
8
|
%
|
||||||||||
Corporate Learning
|
47,934
|
44,105
|
9
|
%
|
10
|
%
|
||||||||||
Total Solutions Revenue
|
200,845
|
176,357
|
14
|
%
|
14
|
%
|
||||||||||
Cost of Sales
|
86,739
|
65,010
|
33
|
%
|
34
|
%
|
||||||||||
Gross Profit
|
114,106
|
111,347
|
2
|
%
|
3
|
%
|
||||||||||
Gross Profit Margin
|
56.8
|
%
|
63.1
|
%
|
||||||||||||
Operating Expenses
|
93,780
|
85,830
|
9
|
%
|
10
|
%
|
||||||||||
Amortization of Intangibles
|
12,566
|
10,326
|
22
|
%
|
22
|
%
|
||||||||||
Restructuring Charges (see Note 8)
|
914
|
3,447
|
(73
|
)%
|
(73
|
)%
|
||||||||||
Contribution to Profit
|
$
|
6,846
|
$
|
11,744
|
(42
|
)%
|
(49
|
)%
|
||||||||
Contribution Margin
|
3.4
|
%
|
6.7
|
%
|
(b) |
Adjusted to exclude FX impact and Restructuring Charges.
|
Metric
(amounts in millions, except EPS)
|
Fiscal Year
2018 Actual
|
Fiscal Year 2019 Expectation
Constant Currency
|
Status
|
|||
Revenue
|
$
|
1,796.1
|
Even with prior year
|
Reaffirmed
|
||
Adjusted EPS
|
$
|
3.43
|
Mid-single digit % decline
|
Reaffirmed
|
||
Cash Provided by Operating Activities
|
$
|
381.8
|
Mid-teen % decline
|
Was high-single digit decline
|
||
Capital Expenditures
|
$
|
150.7
|
Lower by approximately $50
|
Improved
|
●
|
Cash Provided by Operating Activities update reflects lower working capital performance, the adoption of Topic 606 which will result
in the reclassification of certain spending for costs to fulfill of approximately $10 million from Capital Expenditures to Cash Provided by Operating Activities, and a discretionary $10 million pension contribution.
|
●
|
Capital Expenditures are expected to be lower by approximately $50 million primarily due to the completion of the Company’s
headquarters transformation and the May 2018 implementation of our ERP order-to-cash release for journal subscriptions. In
addition, the adoption of Topic 606 will result in the reclassification of certain spending for costs to fulfill of approximately $10 million from Capital Expenditures to Cash Provided by Operating Activities.
|
●
|
Non-GAAP effective tax rate for the year is expected to be approximately 22-23%.
|
Nine Months Ended January 31,
|
||||||||
2019
|
2018
|
|||||||
Net Cash Provided by Operating Activities
|
$
|
47,608
|
$
|
190,667
|
||||
Net Cash Used in Investing Activities
|
(259,092
|
)
|
(134,611
|
)
|
||||
Net Cash Provided by Financing Activities
|
180,976
|
4,175
|
||||||
Effect of Foreign Currency Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
|
(6,359
|
)
|
10,015
|
Nine Months Ended January 31,
|
||||||||
2019
|
2018
|
|||||||
Net Cash Provided by Operating Activities
|
$
|
47,608
|
$
|
190,667
|
||||
Less: Additions to Technology, Property and Equipment
|
(49,988
|
)
|
(78,958
|
)
|
||||
Less: Product Development Spending
|
(14,251
|
)
|
(30,426
|
)
|
||||
Free Cash Flow less Product Development Spending
|
$
|
(16,631
|
)
|
$
|
81,283
|
●
|
the timing of working capital items,
|
●
|
lower net income in the nine months ended January 31, 2019; and,
|
●
|
a $10.0 million discretionary contribution to the U.S. Employees' Retirement Plan of John Wiley & Sons, Inc in fiscal year 2019.
|
January 31, 2019
|
April 30, 2018
|
|||||||
Accounts receivable, net (1)
|
$
|
—
|
$
|
(28,302
|
)
|
|||
Inventories, net
|
5,046
|
4,626
|
||||||
Accrued royalties
|
(5,505
|
)
|
(5,048
|
)
|
||||
Contract liability (Deferred revenue) (1)
|
36,743
|
—
|
||||||
Decrease in Net Assets
|
$
|
(26,192
|
)
|
$
|
(18,628
|
)
|
Total Number
of Shares
Purchased
|
Average
Price Paid
Per Share
|
Total Number
of Shares Purchased
as part of a Publicly
Announced Program
|
Maximum Number
of Shares that May
be Purchased
Under the Program
|
|||||||||||||
November 2018
|
—
|
$
|
—
|
—
|
2,655,351
|
|||||||||||
December 2018
|
132,000
|
47.78
|
132,000
|
2,523,351
|
||||||||||||
January 2019
|
76,711
|
48.13
|
76,711
|
2,446,640
|
||||||||||||
Total
|
208,711
|
$
|
47.91
|
208,711
|
2,446,640
|
18.1
|
|
31.1
|
|
31.2
|
|
32.1
|
|
32.2
|
|
101.INS*
|
|
101.SCH*
|
|
101.CAL*
|
|
101.DEF*
|
|
101.LAB*
|
|
101.PRE*
|
* |
Pursuant to Rule 406T of Regulation S-T, this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of
Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.
|
JOHN WILEY & SONS, INC.
|
|||
Registrant
|
|||
By
|
/s/ Brian A. Napack
|
||
Brian A. Napack
|
|||
President and Chief Executive Officer
|
|||
By
|
/s/ John A. Kritzmacher
|
||
John A. Kritzmacher
|
|||
Chief Financial Officer and Executive Vice President, Operations
|
|||
By
|
/s/ Christopher F. Caridi
|
||
Christopher F. Caridi
|
|||
Senior Vice President, Corporate Controller and Chief Accounting Officer
|
|||
Dated: March 8, 2019
|
1. |
I have reviewed this quarterly report on Form 10-Q of John Wiley & Sons, Inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement 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 report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’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 registrant 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 registrant, 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 registrant’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 registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal
quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the
registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a. |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to
adversely affect the registrant’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 registrant’s internal control over
financial reporting.
|
By:
|
/s/ Brian A. Napack
|
||
Brian A. Napack
|
|||
President and Chief Executive Officer
|
|||
March 8, 2019
|
1. |
I have reviewed this quarterly report on Form 10-Q of John Wiley & Sons, Inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement 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 report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’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 registrant 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 registrant, 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 registrant’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 registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal
quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the
registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a. |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to
adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
By:
|
/s/ John A. Kritzmacher
|
||
John A. Kritzmacher
|
|||
Chief Financial Officer and Executive Vice President, Operations
|
|||
March 8, 2019
|
(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/ Brian A. Napack
|
||
Brian A. Napack
|
|||
President and Chief Executive Officer
|
|||
March 8, 2019
|
(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/ John A. Kritzmacher
|
||
John A. Kritzmacher
|
|||
Chief Financial Officer and Executive Vice President, Operations
|
|||
March 8, 2019
|
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Jan. 31, 2019 |
Feb. 28, 2019 |
|
Entity Information [Line Items] | ||
Entity Registrant Name | WILEY JOHN & SONS, INC. | |
Entity Central Index Key | 0000107140 | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Common Stock Class A [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 | |
Common Stock Class B [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 |
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - UNAUDITED (Parenthetical) - $ / shares |
Jan. 31, 2019 |
Apr. 30, 2018 |
---|---|---|
Shareholders' Equity | ||
Preferred Stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred Stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Class A [Member] | ||
Shareholders' Equity | ||
Common Stock, par value (in dollars per share) | $ 1 | $ 1 |
Common Stock, shares authorized (in shares) | 180,000,000 | 180,000,000 |
Common Stock, shares issued (in shares) | 70,124,963 | 70,110,603 |
Treasury stock (in shares) | 22,190,282 | 21,853,257 |
Class B [Member] | ||
Shareholders' Equity | ||
Common Stock, par value (in dollars per share) | $ 1 | $ 1 |
Common Stock, shares authorized (in shares) | 72,000,000 | 72,000,000 |
Common Stock, shares issued (in shares) | 13,056,707 | 13,071,067 |
Treasury stock (in shares) | 3,917,574 | 3,917,574 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
||||||||||
Revenue, net | $ 449,367 | $ 455,675 | $ 1,308,890 | $ 1,318,850 | |||||||||
Costs and Expenses | |||||||||||||
Cost of sales | [1] | 143,879 | 136,362 | [2] | 404,194 | 394,444 | [2] | ||||||
Operating and administrative expenses | [1],[2] | 240,715 | 239,548 | 717,348 | 703,158 | ||||||||
Restructuring and related (credits) charges | (348) | 2,208 | 3,562 | 26,531 | |||||||||
Amortization of intangibles | 14,775 | 12,163 | 39,825 | 35,965 | |||||||||
Total Costs and Expenses | 399,021 | 390,281 | 1,164,929 | 1,160,098 | |||||||||
Operating Income | 50,346 | 65,394 | [3] | 143,961 | 158,752 | [3] | |||||||
Interest Expense | (5,346) | (3,295) | (11,750) | (10,023) | |||||||||
Foreign Exchange Transaction Losses | (2,525) | (6,032) | (4,308) | (11,584) | |||||||||
Interest and Other Income | 2,742 | 2,200 | 7,717 | 6,694 | |||||||||
Income Before Taxes | 45,217 | 58,267 | 135,620 | 143,839 | |||||||||
Provision (Benefit) for Income Taxes | 10,275 | (10,575) | 30,599 | 5,713 | |||||||||
Net Income | $ 34,942 | $ 68,842 | $ 105,021 | $ 138,126 | |||||||||
Earnings Per Share | |||||||||||||
Basic (in dollars per share) | $ 0.61 | $ 1.21 | $ 1.83 | $ 2.42 | |||||||||
Diluted (in dollars per share) | $ 0.61 | $ 1.19 | $ 1.81 | $ 2.39 | |||||||||
Weighted Average Number of Common Shares Outstanding | |||||||||||||
Basic (in shares) | 57,158 | 57,035 | 57,330 | 56,979 | |||||||||
Diluted (in shares) | 57,626 | 57,871 | 57,882 | 57,736 | |||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
||||||||
Costs and Expenses | |||||||||||
Net charges (benefits) | $ (1,904) | $ (1,762) | $ (5,823) | $ (5,144) | |||||||
Cost of sales | [1] | 143,879 | 136,362 | [2] | 404,194 | 394,444 | [2] | ||||
Operating and administrative expenses | [1],[2] | 240,715 | 239,548 | 717,348 | 703,158 | ||||||
Change in Accounting Policy for Certain Advertising and Marketing Costs [Member] | The Learning House, Inc. [Member] | |||||||||||
Costs and Expenses | |||||||||||
Cost of sales | 11,200 | 34,700 | |||||||||
Operating and administrative expenses | (11,200) | (34,700) | |||||||||
ASU 2017-07 Member] | Operating and Administrative Expenses [Member] | |||||||||||
Costs and Expenses | |||||||||||
Net charges (benefits) | 2,000 | 6,000 | |||||||||
ASU 2017-07 Member] | Interest and Other Income [Member] | |||||||||||
Costs and Expenses | |||||||||||
Net charges (benefits) | $ 2,100 | $ (2,000) | $ 6,600 | $ (6,000) | |||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED [Abstract] | ||||
Net Income | $ 34,942 | $ 68,842 | $ 105,021 | $ 138,126 |
Other Comprehensive Income (Loss): | ||||
Foreign currency translation adjustment | 17,515 | 51,401 | (43,234) | 84,442 |
Unamortized retirement costs, tax (benefit) provision of $(596), $(2,377), $3,121, and $(3,085), respectively | (2,081) | (8,587) | 11,117 | (11,113) |
Unrealized gain on interest rate swaps, tax (benefit) provision of $(1,263), $450, $(814) and $478, respectively | (1,136) | 734 | (2,569) | 780 |
Total Other Comprehensive Income (Loss) | 14,298 | 43,548 | (34,686) | 74,109 |
Comprehensive Income | $ 49,240 | $ 112,390 | $ 70,335 | $ 212,235 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
|
Other Comprehensive Income (Loss): | ||||
Unamortized retirement costs, tax (benefit) provision | $ (596) | $ (2,377) | $ 3,121 | $ (3,085) |
Unrealized gain on interest rate swaps, tax (benefit) provision | $ (1,263) | $ 450 | $ (814) | $ 478 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW - UNAUDITED - USD ($) $ in Thousands |
9 Months Ended | ||||
---|---|---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
||||
Operating Activities | |||||
Net income | $ 105,021 | $ 138,126 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Amortization of intangibles | 39,825 | 35,965 | |||
Amortization of product development spending | 29,301 | 30,314 | |||
Depreciation and amortization of technology, property and equipment | 52,414 | 48,471 | |||
Restructuring charges | 3,562 | 26,531 | |||
Stock-based compensation expense | 14,974 | 6,510 | |||
Royalty advances | (100,454) | (89,366) | |||
Earned royalty advances | 94,240 | 81,976 | |||
Impairment of publishing brand | 0 | 3,600 | |||
Other non-cash credits | 10,898 | (4,976) | |||
Net change in operating assets and liabilities | (202,173) | (86,484) | |||
Net Cash Provided by Operating Activities | 47,608 | 190,667 | |||
Investing Activities | |||||
Product development spending | (14,251) | (30,426) | |||
Additions to technology, property and equipment | (49,988) | (78,958) | |||
Businesses acquired in purchase transaction, net of cash acquired | (190,467) | 0 | |||
Acquisitions of publication rights and other | (4,386) | (25,227) | |||
Net Cash Used in Investing Activities | (259,092) | (134,611) | |||
Financing Activities | |||||
Repayment of long-term debt | (217,200) | (238,951) | |||
Borrowing of long-term debt | 490,512 | 305,754 | |||
Purchase of treasury shares | (34,994) | (29,257) | |||
Change in book overdrafts | (6,657) | (8,884) | |||
Cash dividends | (56,963) | (55,093) | |||
Net proceeds from exercise of stock options and other | 6,278 | 30,606 | |||
Net Cash Provided by Financing Activities | 180,976 | 4,175 | |||
Effects of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash | [1] | (6,359) | 10,015 | ||
Cash, Cash Equivalents and Restricted Cash | |||||
(Decrease)/Increase for the Period | [1] | (36,867) | 70,246 | ||
Balance at Beginning of Period | [1] | 170,257 | 58,516 | ||
Balance at End of Period | [1] | 133,390 | 128,762 | ||
Cash Paid During the Period for: | |||||
Interest | 10,781 | 10,766 | |||
Income taxes, net of refunds | 29,604 | 39,655 | |||
Warrants [Member] | |||||
Non-cash items associated with acquisition | |||||
Warrants to purchase 0.4 million shares of Wiley Class A Common Stock issued in connection with the Learning House acquisition | $ 0 | ||||
Learning House [Member] | Warrants [Member] | |||||
Non-cash items associated with acquisition | |||||
Warrants to purchase 0.4 million shares of Wiley Class A Common Stock issued in connection with the Learning House acquisition | $ 565 | ||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW - UNAUDITED (Parenthetical) shares in Millions |
Jan. 31, 2019
shares
|
---|---|
Learning House [Member] | Warrants [Member] | Common Stock Class A [Member] | |
Non-cash items associated with acquisition | |
Warrants to purchase shares, in connection with acquisition (in shares) | 0.4 |
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - UNAUDITED - USD ($) $ in Thousands |
Common Stock [Member]
Class A [Member]
|
Common Stock [Member]
Class B [Member]
|
Additional Paid-in Capital [Member] |
Additional Paid-in Capital [Member]
Class A [Member]
|
Additional Paid-in Capital [Member]
Class B [Member]
|
Retained Earnings [Member] |
Retained Earnings [Member]
Class A [Member]
|
Retained Earnings [Member]
Class B [Member]
|
Treasury Stock [Member] |
Treasury Stock [Member]
Class A [Member]
|
Treasury Stock [Member]
Class B [Member]
|
Accumulated Other Comprehensive Loss [Member] |
Accumulated Other Comprehensive Loss [Member]
Class A [Member]
|
Accumulated Other Comprehensive Loss [Member]
Class B [Member]
|
Total |
Class A [Member] |
Class B [Member] |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance at Apr. 30, 2017 | $ 70,086 | $ 13,096 | $ 387,896 | $ 1,715,423 | $ (676,077) | $ (507,287) | $ 1,003,137 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Restricted Shares Issued under Stock-based Compensation Plans | 0 | 0 | (2,706) | (10) | 2,904 | 0 | 188 | ||||||||||
Net (Payments)/Proceeds from Exercise of Stock Options and Other | 0 | 0 | 14,327 | 0 | 16,279 | 0 | 30,606 | ||||||||||
Excess Tax Benefits from Stock-based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Stock-based Compensation Expense | 0 | 0 | 6,450 | 0 | 60 | 0 | 6,510 | ||||||||||
Purchase of Treasury Shares | 0 | 0 | 0 | 0 | (29,257) | 0 | (29,257) | ||||||||||
Common Stock Dividends | 0 | 0 | $ 0 | $ 0 | $ (46,294) | $ (8,799) | $ 0 | $ 0 | $ 0 | $ 0 | $ (46,294) | $ (8,799) | |||||
Common Stock Class Conversions | 21 | (21) | 0 | 0 | 0 | 0 | 0 | ||||||||||
Comprehensive Income (Loss) | 0 | 0 | 0 | 138,126 | 0 | 74,109 | 212,235 | ||||||||||
Balance at Jan. 31, 2018 | 70,107 | 13,075 | 405,967 | 1,798,446 | (686,091) | (433,178) | 1,168,326 | ||||||||||
Balance at Oct. 31, 2017 | 70,097 | 13,085 | 392,493 | 1,747,998 | (699,898) | (476,726) | 1,047,050 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Restricted Shares Issued under Stock-based Compensation Plans | 0 | 0 | (441) | 0 | 489 | 0 | 48 | ||||||||||
Net (Payments)/Proceeds from Exercise of Stock Options and Other | 0 | 0 | 10,001 | 0 | 13,258 | 0 | 23,259 | ||||||||||
Excess Tax Benefits from Stock-based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Stock-based Compensation Expense | 0 | 0 | 3,914 | 0 | 60 | 0 | 3,974 | ||||||||||
Purchase of Treasury Shares | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Common Stock Dividends | 0 | 0 | 0 | 0 | (15,463) | (2,931) | 0 | 0 | 0 | 0 | (15,463) | (2,931) | |||||
Common Stock Class Conversions | 10 | (10) | 0 | 0 | 0 | 0 | 0 | ||||||||||
Comprehensive Income (Loss) | 0 | 0 | 0 | 68,842 | 0 | 43,547 | 112,390 | ||||||||||
Balance at Jan. 31, 2018 | 70,107 | 13,075 | 405,967 | 1,798,446 | (686,091) | (433,178) | 1,168,326 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Adjustment due to adoption of new revenue standard | 0 | 0 | 0 | 4,503 | 0 | 0 | 4,503 | ||||||||||
Balance at Apr. 30, 2018 | 70,111 | 13,071 | 407,120 | 1,834,057 | (694,222) | (439,580) | 1,190,557 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Restricted Shares Issued under Stock-based Compensation Plans | 0 | 0 | (3,911) | 2 | 4,083 | 0 | 174 | ||||||||||
Net (Payments)/Proceeds from Exercise of Stock Options and Other | 0 | 0 | 4,718 | 0 | 1,560 | 0 | 6,278 | ||||||||||
Excess Tax Benefits from Stock-based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Stock-based Compensation Expense | 0 | 0 | 14,974 | 0 | 0 | 0 | 14,974 | ||||||||||
Purchase of Treasury Shares | 0 | 0 | 0 | 0 | (34,994) | 0 | (34,994) | ||||||||||
Common Stock Dividends | 0 | 0 | 0 | 0 | (47,911) | (9,052) | 0 | 0 | 0 | 0 | (47,911) | (9,052) | |||||
Common Stock Class Conversions | 14 | (14) | 0 | 0 | 0 | 0 | 0 | ||||||||||
Issuance of Warrants Related to Acquisition of a Business | 0 | 0 | 565 | 0 | 0 | 0 | 565 | ||||||||||
Comprehensive Income (Loss) | 0 | 0 | 0 | 105,021 | 0 | (34,686) | 70,335 | ||||||||||
Balance at Jan. 31, 2019 | 70,125 | 13,057 | 423,466 | 1,886,620 | (723,573) | (474,266) | 1,195,429 | ||||||||||
Balance at Oct. 31, 2018 | 70,125 | 13,057 | 417,718 | 1,870,609 | (713,553) | (488,564) | 1,169,392 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Restricted Shares Issued under Stock-based Compensation Plans | 0 | 0 | (927) | 0 | 1,004 | 0 | 77 | ||||||||||
Net (Payments)/Proceeds from Exercise of Stock Options and Other | 0 | 0 | 18 | 0 | (1,024) | 0 | (1,006) | ||||||||||
Excess Tax Benefits from Stock-based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Stock-based Compensation Expense | 0 | 0 | 6,092 | 0 | 0 | 0 | 6,092 | ||||||||||
Purchase of Treasury Shares | 0 | 0 | 0 | 0 | (10,000) | 0 | (10,000) | ||||||||||
Common Stock Dividends | 0 | 0 | $ 0 | $ 0 | $ (15,915) | $ (3,016) | $ 0 | $ 0 | $ 0 | $ 0 | $ (15,915) | $ (3,016) | |||||
Common Stock Class Conversions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Issuance of Warrants Related to Acquisition of a Business | 0 | 0 | 565 | 0 | 0 | 0 | 565 | ||||||||||
Comprehensive Income (Loss) | 0 | 0 | 0 | 34,942 | 0 | 14,298 | 49,240 | ||||||||||
Balance at Jan. 31, 2019 | $ 70,125 | $ 13,057 | $ 423,466 | $ 1,886,620 | $ (723,573) | $ (474,266) | $ 1,195,429 |
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - UNAUDITED (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
|
Class A [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock dividend (in dollars per share) | $ 0.33 | $ 0.32 | $ 0.99 | $ 0.96 |
Class B [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock dividend (in dollars per share) | $ 0.33 | $ 0.32 | $ 0.99 | $ 0.96 |
Basis of Presentation |
9 Months Ended |
---|---|
Jan. 31, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1 — Basis of Presentation Throughout this report, when we refer to “Wiley,” the “Company,” “we,” “our,” or “us,” we are referring to John Wiley & Sons, Inc. and all our subsidiaries, except where the context indicates otherwise. Our unaudited Condensed Consolidated Financial Statements include all the accounts of the Company and our subsidiaries. We have eliminated all significant intercompany transactions and balances in consolidation. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Condensed Consolidated Financial Condition, Results of Operations, Comprehensive Income and Cash Flows for the periods presented. Operating results for the interim period are not necessarily indicative of the results expected for the full year. All amounts are in thousands, except per share amounts, and approximate due to rounding. These financial statements should be read in conjunction with the most recent audited consolidated financial statements included in our Form 10-K for the fiscal year ended April 30, 2018 as filed with the SEC on June 29, 2018 (“2018 Form 10-K”). Our Condensed Consolidated Financial Statements were prepared in accordance with the interim reporting requirements of the SEC. As permitted under those rules, annual footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted. The preparation of our Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Certain prior year amounts have been reclassified to conform to the current year’s presentation. Change in Accounting Policy In connection with the acquisition of Learning House (See Note 3, “Acquisition”), we changed our accounting policy for certain advertising and marketing costs incurred by our Education Services business to fulfill performance obligations from contracts with educational institutions. Under the new accounting policy, these costs are included in Cost of Sales whereas they were previously included in Operating and Administrative Expenses on the Unaudited Condensed Consolidated Statements of Income. Including these expenses in Cost of Sales will better align these costs with the related revenue and conform with the presentation of such costs for Learning House. This change in accounting policy was applied retrospectively. The Unaudited Condensed Consolidated Statements of Income for the three and nine months ended January 31, 2018 have been reclassified to reflect this change in accounting policy. The impact of this reclassification was an increase to Cost of Sales and a corresponding decrease to Operating and Administrative Expenses of $11.2 million and $34.7 million for the three and nine months ended January 31, 2018, respectively. This reclassification had no impact on Revenue, net, Operating Income, Net Income, or Earnings per Share on the Unaudited Condensed Consolidated Statements of Income. |
Recent Accounting Standards |
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Recent Accounting Standards | Note 2 — Recent Accounting Standards Recently Adopted Accounting Standards Stock Compensation – Scope of Modification Accounting In May 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-09, “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting,” which clarifies when changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Under the new guidance, modification accounting is only required if the fair value, vesting conditions or classification (equity or liability) of the new award are different from the original award immediately before the original award is modified. We adopted ASU 2017-09 on May 1, 2018 and there was no impact to our condensed consolidated financial statements. The new guidance must be applied prospectively to awards modified on or after the adoption date. The future impact of ASU 2017-09 will be dependent on the nature of future stock award modifications. Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued ASU 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The guidance requires that the service cost component of net pension and postretirement benefit costs be reported in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period, while the other components of net benefit costs must be reported separately from the service cost component and below operating income. The guidance also allows only the service cost component to be eligible for capitalization when applicable. We adopted ASU 2017-07 on May 1, 2018. The new guidance must be applied retrospectively for the presentation of net benefit costs in the income statement and prospectively for the capitalization of the service cost component of net benefit costs. The effect of retrospectively adopting this guidance resulted in a reclassification of net benefits of $2.0 million and $6.0 million from Operating and Administrative Expenses to Interest and Other Income on the Unaudited Condensed Consolidated Statement of Operations for the three and nine months ended January 31, 2018, respectively. The amount included in Interest and Other Income on the Unaudited Condensed Consolidated Statement of Operations for the three and nine months ended January 31, 2019 was a net benefit of $2.1 million and $6.6 million, respectively. We do not capitalize any service costs. Business Combinations: Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”, which clarifies the definition of a business in order to allow for the evaluation of whether transactions should be accounted for as acquisitions or disposals of assets or business. We adopted ASU 2017-01 on May 1, 2018. The future impact of ASU 2017-01 will be dependent upon the nature of future acquisitions or dispositions made by us. Statement of Cash Flows: Restricted Cash In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” ASU 2016-18 requires that entities include restricted cash and restricted cash equivalents with cash and cash equivalents in the beginning-of-period and end-of-period total amounts shown on the Statement of Cash Flows. We adopted ASU 2016-18 on May 1, 2018. Retrospective transition method is to be applied to each period presented. As a result of this retrospective adoption, the reclassification of restricted cash into a change in total cash resulted in a reduction in Cash Used in Operating Activities of $0.5 million for the nine months ended January 31, 2018. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Unaudited Condensed Consolidated Statement of Financial Position that sum to the total of the same such amounts shown in the Unaudited Condensed Consolidated Statement of Cash Flows.
Income taxes: Intra-Entity Transfers of Assets Other than Inventory In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory”, which simplifies the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Current U.S. GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. The new guidance states that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in this Standard eliminate the exception for an intra-entity transfer of an asset other than inventory. We adopted ASU 2016-16 on May 1, 2018. The adoption of ASU 2016-16 did not have a material impact to our condensed consolidated financial statements. Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which provides clarification on classifying a variety of activities within the Statement of Cash Flows. We adopted ASU 2016-15 on May 1, 2018. The adoption of ASU 2016-15 did not have a material impact to our condensed consolidated statements of cash flows. Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” Subsequently, the FASB issued ASU 2018-03, “Technical Corrections and Improvements to Financial Instruments-Overall.” ASU 2016-01 requires equity investments except those under the equity method of accounting to be measured at fair value with the changes in fair value recognized in net income. The amendment simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. In addition, it also requires enhanced disclosures about investments. We adopted ASU 2016-01 on May 1, 2018. The adoption of ASU 2016- 01 did not have a material impact to our condensed consolidated financial statements. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers," (Topic 606) which superseded most existing revenue recognition guidance. We adopted ASU 2014-09 on May 1, 2018. The standard allows for either "full retrospective" adoption, meaning the standard is applied to all periods presented, or "modified retrospective" adoption, meaning the standard is applied only to the most current period presented in the financial statements. Subsequently, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers (Topic 606) – Principal versus Agent Considerations", ASU 2016-10, "Revenue from Contracts with Customers (Topic 606) – Identifying Performance Obligations and Licensing", ASU 2016-12, "Revenue from Contracts with Customers (Topic 606) – Narrow Scope Improvements and Practical Expedients", and ASU 2016-20, "Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers," which provide clarification and additional guidance related to ASU 2014-09. We also adopted ASU 2016-08, ASU 2016-10, ASU 2016-12, and ASU 2016-20 with ASU 2014-09 (collectively, the “new revenue standard”) on May 1, 2018. We utilized a comprehensive approach to assess the impact of the new revenue standard on our contract portfolio by reviewing our current accounting policies and practices to identify differences that would result from applying the new revenue standard to our revenue contracts. Additionally, we reviewed customer agreements representative of our business models and assessed whether changes in revenue recognition were appropriate under the new revenue standard. We adopted the new revenue standard as of May 1, 2018, using the modified retrospective method. The adoption of the new revenue standard did not have a material impact to our consolidated revenues, financial position, or results of operations. Upon adoption, we recorded an immaterial net increase to opening retained earnings resulting from the change in timing of when certain components of our revenue are recognized as required under the new revenue standard as compared to historical policies. Such changes include:
The adoption of the new revenue standard resulted in the discontinuance of the historical practice of presenting accounts receivable and deferred revenue balances on a net basis for some of our subscription licensing agreements where we have invoiced a customer in advance of the related revenue being recognized and payment has not yet been received. As of April 30, 2018, the amounts that were previously netted down from accounts receivable and deferred revenue were $59.5 million. The current policy for our subscription licensing agreements is to record accounts receivable when performance occurs and recognize contract liabilities once the invoice is due, or cash payment is received from the customer. In addition, the adoption of the new revenue standard resulted in the reclassification of the sales return reserve provision to Contract Liability (Deferred Revenue) from Accounts Receivable, Net on the Unaudited Condensed Consolidated Statement of Financial Position. As of April 30, 2018, the amount was $28.3 million. The cumulative effect of the changes made to our consolidated balance sheet at May 1, 2018 as a result of adoption of the new revenue standard using the modified retrospective method were as follows:
The impact of the adoption of the new revenue standard on the Unaudited Condensed Consolidated Statements of Income was $0.4 million and $11.1 million in revenue, net, for the three months and nine months ended January 31, 2019, respectively, and was a credit of $(0.7) million in cost of sales for the three months ended January 31, 2019 and expense of $1.7 million for the nine months ended January 31, 2019. The impact to the Unaudited Condensed Consolidated Statement of Financial Position was not material by line item, except for the reclassification of the sales return reserve provision to contract liability from accounts receivable, net. The sales return reserve provision amount that is included in Contract Liability (Deferred Revenue) on the Unaudited Condensed Consolidated Statement of Financial Position as of January 31, 2019 was $36.7 million. Recently Issued Accounting Standards Intangibles-Goodwill and Other-Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In August 2018, the FASB issued ASU 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract.” ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for us on May 1, 2020, and interim periods within that fiscal year, with early adoption permitted. We are currently assessing the impact the new guidance will have on our consolidated financial statements. Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans.” ASU 2018-14 removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and added additional disclosures. The standard is effective for us on May 1, 2021, with early adoption permitted. The amendments in ASU 2018-14 would need to be applied on a retrospective basis. We are currently assessing the impact the new guidance will have on our disclosures. Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 removes certain disclosures, modifies certain disclosures and added additional disclosures. The standard is effective for us on May 1, 2020, with early adoption permitted. Certain disclosures in ASU 2018-13 would need to be applied on a retrospective basis and others on a prospective basis. We are currently assessing the impact the new guidance will have on our disclosures. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-02 “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The standard is effective for us on May 1, 2019, and interim periods within that fiscal year, with early adoption permitted. We are currently assessing the impact the new guidance will have on our consolidated financial statements. Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” to simplify and improve the application and financial reporting of hedge accounting. Subsequently, in November 2018, the FASB issued ASU 2018-16, “Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes”. ASU 2017-12 eases the requirements for measuring and reporting hedge ineffectiveness and clarifies that changes in the fair value of hedging instruments for cash flow, net investment, and fair value hedges should be reflected in the same income statement line item as the earnings effect of the hedged item. The guidance also permits entities to designate specific components in cash flow and interest rate hedges as the hedged risk, instead of using total cash flows. ASU 2018-16 allows the use of the OIS rate based on the SOFR as a U.S. benchmark interest rate for hedge accounting purposes. These ASUs are effective for us on May 1, 2019, with early adoption permitted. We are currently assessing the impact the new guidance will have on our consolidated financial statements. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, “Intangibles–Goodwill and Other (Topic 350): “Simplifying the Test for Goodwill Impairment”, which simplifies the measurement of a potential goodwill impairment charge by eliminating the requirement to calculate an implied fair value of the goodwill based on the fair value of a reporting unit’s other assets and liabilities. The new guidance eliminates the implied fair value method and instead measures a potential impairment charge based on the excess of a reporting unit’s carrying value compared to its fair value. The impairment charge cannot exceed the total amount of goodwill allocated to that reporting unit. The standard is effective for us on May 1, 2020, with early adoption permitted. Based on our most recent annual goodwill impairment test completed in fiscal year 2018, we expect no initial impact on adoption. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” Subsequently, in November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses”. ASU 2016-13 requires entities to measure all expected credit losses for most financial assets held at the reporting date based on an expected loss model which includes historical experience, current conditions, and reasonable and supportable forecasts. Entities will now use forward-looking information to better form their credit loss estimates. ASU 2016-13 also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. ASU 2016-13 and ASU 2018-19 are effective for us on May 1, 2020, including interim periods within those fiscal periods, with early adoption permitted. We are currently assessing the impact the new guidance will have on our consolidated financial statements. Leases In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)”. Subsequently, the FASB issued in March 2019, ASU 2019-01, “Leases (Topic 842): Codification Improvements”, in December 2018 ASU 2018-20, “Leases (Topic 842): Narrow Scope Improvements for Lessors”, and in July 2018 the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements” and ASU 2018-10, “Codification Improvements to Topic 842, Leases”. ASU 2016-02 requires an entity to recognize a right-of-use asset (“ROU”) and lease liability for all leases with terms of more than 12 months and provide enhanced disclosures. Recognition, measurement, and presentation of expenses will depend on classification as a finance or operating lease. Similar modifications have been made to lessor accounting in-line with revenue recognition guidance. The new standard provides a number of optional practical expedients in transition. We expect to elect the practical expedients to forgo a reassessment of (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) initial direct costs. We do not expect to elect the practical expedient allowing the use-of-hindsight which would require us to reassess the lease term of our leases based on all facts and circumstances through the effective date. In addition, we do not expect to elect the practical expedient pertaining to land easements. In addition, the new standard provides as a practical expedient, certain policy elections for ongoing lease accounting to (i) not separate nonlease components from the associated lease component if certain conditions are met, and (ii) not recognize ROU assets and lease liabilities for leases that qualify as short-term. If the short-term recognition exemption is elected, we will not recognize ROU assets or lease liabilities for existing short-term leases in transition. We are currently assessing the impact these policy elections will have on our consolidated financial statements. The standard is effective for us on May 1, 2019, with early adoption permitted. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. A company may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as of its date of initial application. We will adopt the new standard on May 1, 2019 and expect to use the effective date as the date of initial application. Accordingly, previously reported financial information will not be updated, and the disclosures required under the new standard will not be provided for dates and periods before May 1, 2019. We are currently assessing the impact the new guidance will have on our consolidated financial statements. Additionally, we are assessing the implementation of a lease accounting system for our leases, including the conversion of our existing lease data to a new system and implementing relevant internal controls and procedures. |
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Acquisition | Note 3 – Acquisition On November 1, 2018, we completed the acquisition of 100% of the outstanding stock of The Learning House, Inc. (“Learning House”) a diversified education services provider. Headquartered in Louisville, KY, Learning House provides online program management services including graduate and undergraduate programs; short courses, boot camps, and other skills training and credentialing for students and professionals; pathway services for international students; professional development services for teachers; and learning solutions for corporate clients. The combination of Learning House and Wiley Education Services creates a leading provider of tech-enabled education services for colleges and universities. The results of operations of Learning House are included in our Solutions segment. The preliminary fair value of the consideration transferred was approximately $201.3 million which included $200.8 million of cash and $0.5 million of warrants. We financed the payment of the cash consideration through borrowings under our revolving credit agreement ("RCA"). The warrants were classified as equity and allow the holder to purchase 400,000 shares of our Class A Common Stock at an exercise price of $90.00, subject to adjustments. The fair value of the warrants was determined using the Black-Scholes option pricing model. The preliminary fair value of the cash consideration transferred, net of $10.3 million of cash acquired was approximately $190.5 million. The transaction was accounted for using the acquisition method of accounting. We recorded the preliminary fair value of the assets acquired and liabilities assumed on the acquisition date, which included $109.5 million of intangible assets, goodwill of $109.1 million and net liabilities assumed of $17.3 million, all of which are included in the Solutions segment. None of the goodwill will be deductible for tax purposes. The final allocation of the consideration transferred to the assets acquired and the liabilities assumed will be finalized within the measurement period, which will not exceed one year from the acquisition date. The following table summarizes the identifiable intangible assets acquired and their weighted-average useful life.
Learning House’s revenue and operating (loss) included in our Solutions segment results for three and nine months ended January 31, 2019 was $13.4 million and $(5.2) million, respectively. Pro forma financial information related to this acquisition has not been provided as it is not material to our consolidated results of operations. |
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Revenue Recognition, Contracts with Customers | Note 4 — Revenue Recognition, Contracts with Customers Revenue from contracts with customers is recognized using a five-step model consisting of the following: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) we satisfy a performance obligation. Performance obligations are satisfied when we transfer control of a good or service to a customer, which can occur over time or at a point in time. The amount of revenue recognized is based on the consideration to which we expect to be entitled in exchange for those goods or services, including the expected value of variable consideration. The customer’s ability and intent to pay the transaction price is assessed in determining whether a contract exists with the customer. If collectability of substantially all the consideration in a contract is not probable, consideration received is not recognized as revenue unless the consideration is nonrefundable, and we no longer have an obligation to transfer additional goods or services to the customer or collectability becomes probable. Disaggregation of Revenue The following tables present our revenue from contracts with customers disaggregated by segment and product type for the three and nine months ended January 31, 2019 and 2018:
Description of Revenue Generating Activities We generate our revenues from sales from our three reportable segments. We report our segment information in accordance with the provisions of FASB ASC Topic 280, “Segment Reporting” (“FASB ASC Topic 280”). Our segment reporting structure consists of three reportable segments, which are listed below, and a Corporate category:
Research Segment Included within the Research segment are the following revenue streams:
Journal Subscriptions We publish approximately 1,700 academic research journals. We sell journal subscriptions directly through our sales representatives, indirectly through independent subscription agents, through promotional campaigns, and through memberships in professional societies for those journals that are sponsored by societies. Journal subscriptions are primarily licensed through contracts for digital content available online through Wiley Online Library. In March 2018, we migrated our Wiley Online Library platform to our Literatum platform, which we acquired as part of our purchase of Atypon Systems, Inc. (“Atypon”) in fiscal year 2017. Contracts are negotiated by us directly with customers or their subscription agents. Subscription periods typically cover calendar years. Print journals are generally mailed to subscribers directly from independent printers. We do not own or manage printing facilities. Subscription revenue is generally collected in advance. In a typical journal subscription sale, there is a written agreement between us and our customer that cover multiple years. However, we typically account for these agreements as one-year contracts because our enforceable rights under the agreements are subject to an annual confirmation and negotiation process with the customer. In journal subscriptions, multiple performance obligations exist, which include a stand-ready promise to provide access to new content for one year and a perpetual license for access to historical journal content. The transaction price consists of fixed consideration. We allocate revenue to the stand-ready promise to provide access to new content for one year based on its standalone selling price and the revenue for new content is recognized over time as we have a continuous stand-ready obligation to provide the right of access to additional intellectual property. The allocation of revenue to the perpetual licenses for access to historical journal content is done using the expected cost plus a margin approach as permitted by the new revenue standard. Revenue is recognized at the point in time when access to historical content is initially granted. Open Access Under the Author-Funded Access business model, accepted research articles are published subject to payment of Article Publication Charges (“APC”). All Author-Funded Access articles are immediately free to access online. Contributors of Author-Funded Access articles retain many rights and typically license their work under terms that permit re-use. Author-Funded Access offers authors choices in how to share and disseminate their work, and it serves the needs of researchers who may be required by their research funder to make articles freely accessible without embargo. APCs are typically paid by the individual author or by the author’s funder, and payments are often mediated by the author’s institution. We provide specific workflows and infrastructure to authors, funders and institutions to support the requirements of the Author-Funded Access model. Customers in open access are typically individual educational institutions or a consortium of universities. Under the Author-Funded Access model, we have a signed contract with the customer that contains enforceable rights. The Author-Funded Access model in a typical model includes an over-time single performance obligation that combines a promise to host the customer’s content on our open access platform, and a promise to provide a discount on APCs of eligible users (as defined in the contract) in exchange for an upfront payment. Enforceable right to payment occurs over time as we fulfill our obligation to provide a discount to eligible users, as defined, on future APCs. Therefore, the upfront payment is deferred and recognized over time. Licensing, Reprints, Backfiles and Other Licensing, Reprints, Backfiles, and Other includes advertising, backfile sales, the licensing of publishing rights, journal and article reprints, and individual article sales. A backfile license provides access to a historical collection of Wiley journals, generally for a one-time fee. Within Licensing, the revenue derived from these contracts is primarily comprised of advance payments, including minimum guarantees and sales- or usage-based royalty agreements. For our sales-or usage-based royalty agreements, we recognize revenue in the period of usage based on the amounts earned. We record revenue under these arrangements for the amounts due and not yet reported to us based on estimates of the sales or usage of these customers and pursuant to the terms of the contracts. We also have certain licenses whereby we receive a non-refundable minimum guarantee against a volume-based royalty throughout the term of the agreement. We recognize revenue for the minimum guarantee on a straight-line basis over the term of the agreement because of the stand-ready promise to provide updates during the subscription period. We recognize volume-based royalty income only when cumulative consideration exceeds the minimum guarantee. Reprints contracts generally contain a single performance obligation which is the delivery of printed articles. Revenue is recognized at the time of delivery of the printed articles. For Backfiles, the performance obligation is the granting of a functional intellectual property license. Revenue is recognized at the time the functional intellectual property license is granted. Other includes our Article Select offering, whereby we have a single performance obligation to our customers to give access to an article through the purchase of a token. The customer redeems the token for access to the article for a 24-hour period. The customer purchases the tokens with an upfront cash payment. Revenue is recognized when access to the article is provided. Publishing Technology Services (Atypon) Atypon is a publishing software and service provider that enables scholarly and professional societies and publishers to deliver, host, enhance, market, and manage their content on the web through the Literatum platform. The duration of these contracts is generally multi-year ranging from 2-5 years. Atypon contracts typically include a single performance obligation for the implementation and hosting subscription services. The transaction price is fixed which may include price escalators that are fixed increases per year, and therefore, revenue is recognized upon the initiation of the subscription period and straight-lined over the contract period. Publishing Segment Included within the Publishing segment are the following revenue streams:
STM (Scientific, Technical and Medical) and Professional Publishing and Education Publishing STM books are sold and distributed globally in digital and print formats through multiple channels, including research libraries and library consortia, independent subscription agents, direct sales to professional society members, bookstores, online booksellers, and other customers. Professional books, which include business and finance, technology, and other professional categories, as well as the For Dummies brand, are sold to bookstores and online booksellers serving the general public, wholesalers who supply such bookstores, warehouse clubs, college bookstores, individual practitioners, industrial organizations and government agencies. We employ sales representatives who call upon independent bookstores, national and regional chain bookstores, and wholesalers. Sales of professional books also result from direct mail campaigns, telemarketing, online access, advertising, and reviews in periodicals. Education textbooks and related supplementary material and digital products are sold primarily to bookstores and online booksellers serving both for-profit and nonprofit educational institutions (primarily colleges and universities), and direct-to-students. We employ sales representatives who call on faculty responsible for selecting books to be used in courses, and on the bookstores that serve such institutions and their students. The textbook business is seasonal, with the majority of textbook sales occurring during the July-through-October and December-through-January periods. Book sales for STM, Professional and Education Publishing are generally made on a returnable basis with certain restrictions. Our performance obligations as it relates to STM, Professional and Education Publishing are primarily book products delivered in both print and digital form which could include a single or multiple performance obligations based on the number of International Standard Book Number (“ISBN’s”) purchased. This revenue stream also includes variable consideration as it relates to discounts and returns for both print and digital books. Discounts are identifiable by performance obligation and therefore are applied at the point of sale by performance obligation. The process that we use to determine our sales returns and the related reserve provision charged against revenue is based on applying an estimated return rate to current year returnable print book sales. This rate is based upon an analysis of actual historical return experience in the various markets and geographic regions in which we do business. We collect, maintain and analyze significant amounts of sales returns data for large volumes of homogeneous transactions. This allows us to make reasonable estimates of the amount of future returns. All available data is utilized to identify the returns by market and to which fiscal year the sales returns apply. This enables management to track the returns in detail and identify and react to trends occurring in the marketplace, with the objective of being able to make the most informed judgments possible in setting reserve rates. Associated with the estimated sales return reserves, we also include a related reduction in inventory and royalty costs as a result of the expected returns. As it relates to print and digital books within the STM, Professional and Education Publishing, revenue is recognized at the point when control of product transfers, which for print is upon shipment or for digital when fulfillment of the products has been rendered. Course Workflow (WileyPLUS) We offer high-quality online learning solutions, including WileyPLUS, a research-based, online environment for effective teaching and learning that is integrated with a complete digital textbook. Course Workflow customers purchase access codes to utilize the product. This could include a single or multiple performance obligations based on the number of course ISBN’s purchased. Revenue is recognized from the point in time when the access codes are activated and then over the applicable semester term such product relates to. Test Preparation and Certification The Test Preparation and Certification business represents learning solutions and training activities that are delivered to customers directly through online digital delivery platforms. Products include CPAExcel, a modular, digital platform comprised of online self-study, videos, mobile apps, and sophisticated planning tools to help professionals prepare for the CPA exam, and test preparation products for the CFA®, CMA, CIA®, CMT®, FRN®, FINRA, Banking, and PMP® exams. Test Preparation and Certification contracts are generally three-year agreements. This revenue stream includes multiple performance obligations as it relates to the on-line and printed course materials, including such items as text books, e-books, video lectures, flashcards, study guides and test banks. The transaction price is fixed; however, discounts are offered and returns of certain products are allowed. We allocate revenue to each performance obligation based on its standalone selling price. Depending on the performance obligation, revenue is recognized at the time the product is delivered and control has passed to the customer or over time due to our stand-ready obligation to provide updates to the customer. Licensing, Distribution, Advertising and Other Licensing and distribution services are made available to other publishers under agency arrangements. We also engage in co-publishing titles with international publishers and receive licensing revenue from photocopies, reproductions, translations, and digital uses of our content. Wiley also realizes advertising revenue from branded Web sites (e.g., Dummies.com, etc.) and online applications. Licensing, Distribution, Advertising and Other contracts are generally multi-year agreements. Revenue derived from our licensing contracts is primarily comprised of advance payments and sales- or usage-based royalties. Revenue for advance payments is recognized at the point in time that the functional intellectual property license is granted. For sales- or usage- based royalties, we record revenue under these arrangements for the amounts due and not yet reported to us based on estimates of the sales or usage of these customers and pursuant to the terms of the contracts. Solutions Segment Included within the Solutions segment are the following revenue streams:
Education Services As student demand for online degree and certificate programs continues to increase, traditional institutions are partnering with online program management providers to develop and support these programs. Education Services include market research, marketing, student recruitment, enrollment support, proactive retention support, academic services to design courses, faculty support, and access to the Engage Learning Management System, which facilitates the online education experience. Revenue is derived from pre-negotiated contracts with institutions that provide for a share of tuition generated from students who enroll in a program. The duration of Education Services contracts are generally multi-year agreements ranging from a period of 7-10 years, with some having optional renewal periods. Education Services includes a single performance obligation for the services provided because of the integrated technology and services our institutional clients need to attract, enroll, educate and support students. Consideration is variable since it is based on the number of students enrolled in a program. We begin to recognize revenue at the start of the delivery of the class within a semester, which is also the point at which the variable consideration contingency is resolved. Professional Assessment Our Professional Assessment services include pre-hire screening and post-hire personality assessments, which are delivered to business customers through online digital delivery platforms, either directly or through an authorized distributor network of independent consultants, trainers, and coaches. Professional Assessment services contracts are generally one year. Professional Assessment includes a performance obligation to stand ready to provide assessments to our distributor’s customers or to provide assessments direct to a customer. Revenue for Professional Assessments is recognized at the time the product or service is provided or delivered. Consideration is allocated to assessments based on standalone selling prices. In addition, as it relates to Professional Assessments customers' unexercised rights for situations where we have received a nonrefundable payment for a customer to receive a good or service and the customer is not expected to exercise such right, we will recognize such “breakage” amounts as revenue in proportion to the pattern of rights exercised by the customer. Corporate Learning The Corporate Learning business offers online learning and training solutions for global corporations, universities, and small and medium-sized enterprises, which are sold on a subscription or fee basis. Learning formats and modules on topics such as leadership development, value creation, client orientation, change management and corporate strategy are delivered on a cloud-based Learning Management System (“LMS”) platform that hosts over 20,000 content assets (videos, digital learning modules, written files, etc.) in 17 languages. Its Mohive offering also provides a collaborative e-learning publishing and program creation system. Revenue growth is derived from legacy markets, such as France, England, and other European markets, and newer markets, such as the U.S. and Brazil. In addition, content and LMS offerings are continuously refreshed and expanded to serve a wider variety of customer needs. These digital learning solutions are sold directly to corporate customers either direct or through our partners. Corporate Learning contracts are generally multi-year agreements. The transaction price consists of fixed consideration that is determined at the beginning of each year and received at the same time. Within Corporate Learning there are multiple performance obligations which includes the licenses to learning content and the learning application. Revenue is recognized over time as we have a continuous obligation to provide the right of access to the intellectual property which includes the licenses and learning applications. Accounts Receivable, net and Contract Liability (Deferred Revenue) Balances When consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue when, or as, control of the products or services are transferred to the customer and all revenue recognition criteria have been met. The following table provides information about receivables and contract liabilities from contracts with customers.
(1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. (2) Due to the adoption of the new revenue standard, the sales return reserve as of January 31, 2019 of $36.7 million is recorded in Contract Liability (Deferred Revenue). In prior periods, it was recorded as a reduction to Accounts Receivable, net on the Unaudited Condensed Consolidated Statement of Financial Position. Revenue recognized for the three and nine months ended January 31, 2019 relating to the contract liability at April 30, 2018 after the adjustments for the adoption of the new revenue standard on May 1, 2018 was $131.4 million and $518.2 million, respectively. Remaining Performance Obligations included in Contract Liability (Deferred Revenue) As of January 31, 2019, the aggregate amount of the transaction price allocated to the remaining performance obligations is approximately $286.3 million, which included the sales return reserve of $36.7 million. Excluding the sales return reserve, we expect that approximately $234.9 million will be recognized in the next twelve months with the remaining $14.7 million to be recognized thereafter. Assets Recognized for the Costs to Fulfill a Contract Costs to fulfill a contract are directly related to a contract that will be used to satisfy a performance obligation in the future and are expected to be recovered. These types of costs are incurred in the following revenue streams, (1) Publishing Technology Services (Atypon) and (2) Education Services. Our assets associated with incremental costs to fulfill a contract were $7.6 million at January 31, 2019 and are included within Other Non-Current Assets on our Unaudited Condensed Consolidated Balance Sheet. We recorded amortization expense of $0.7 million and $1.9 million during the three and nine months ended January 31, 2019 related to these assets within Cost of Sales on the Unaudited Condensed Consolidated Statements of Income, respectively. The costs related to Education Services were previously included in Product Development Assets on our Unaudited Condensed Consolidated Statement of Financial Position. Certain costs related to Publishing Technology Services (Atypon) were previously included in Technology, Property and Equipment, net on our Unaudited Condensed Consolidated Statement of Financial Position. Sales and value-added taxes are excluded from revenues. Shipping and handling costs, which are primarily incurred within the Publishing segment, occur before the transfer of control of the related goods. Therefore, in accordance with the new revenue standard, it is not considered a promised service to the customer and would be considered a cost to fulfill our promise to transfer the goods. Costs incurred for third party shipping and handling are reflected in Operating and Administrative Expenses on the Unaudited Condensed Consolidated Statements of Income. We incurred $7.9 million and $24.4 million in shipping and handling costs in the three and nine months ended January 31, 2019, respectively. We incurred $8.7 million and $25.3 million in shipping and handling costs in the three and nine months ended January 31, 2018, respectively. |
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Stock-Based Compensation | Note 5 — Stock-Based Compensation We have stock-based compensation plans under which employees may be granted performance-based stock awards and other restricted stock awards. Prior to fiscal year 2017, we also granted options to purchase shares of our common stock at the fair market value at the time of grant. We recognize the grant date fair value of stock-based compensation in net income on a straight-line basis, net of estimated forfeitures over the requisite service period. The measurement of performance for performance-based stock awards is based on actual financial results for targets established three years in advance. For the three months ended January 31, 2019 and 2018, we recognized stock-based compensation expense, on a pre-tax basis, of $6.1 million and $4.0 million, respectively. For the nine months ended January 31, 2019 and 2018, we recognized stock-based compensation expense, on a pre-tax basis, of $15.0 million and $6.5 million, respectively. The following table summarizes restricted stock awards we granted:
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Accumulated Other Comprehensive Loss | Note 6 — Accumulated Other Comprehensive Loss Changes in Accumulated Other Comprehensive Loss by component, net of tax, for the three and nine months ended January 31, 2019 and 2018 were as follows:
During the three months ended January 31, 2019 and 2018, pre-tax actuarial losses included in Unamortized Retirement Costs of approximately $1.4 million and $1.5 million, respectively, in each period were amortized from Accumulated Other Comprehensive Loss and recognized as pension expense in Operating and Administrative Expenses and Interest and Other Income in the Unaudited Condensed Consolidated Statements of Income. During the nine months ended January 31, 2019 and 2018, pre-tax actuarial losses of approximately $4.1 million and $4.4 million, respectively, were amortized. |
Reconciliation of Weighted Average Shares Outstanding and Share Repurchases |
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Reconciliation of Weighted Average Shares Outstanding and Share Repurchases | Note 7 — Reconciliation of Weighted Average Shares Outstanding and Share Repurchases A reconciliation of the shares used in the computation of earnings per share follows:
Since their inclusion in the calculation of diluted earnings per share would have been anti-dilutive, options to purchase 154,385 shares of Class A Common Stock have been excluded for the three and nine months ended January 31, 2019, respectively and 255,187 shares of Class A Common Stock have been excluded for the nine months ended January 31, 2018. There were no options excluded for the three months ended January 31, 2018. Warrants to purchase 470,000 and 158,148 shares of Class A Common Stock have not been included for the three and nine months ended January 31, 2019, respectively. There were no warrants issued during the three and nine months ended January 31, 2018. There were no restricted shares excluded for the three and nine months ended January 31, 2019. There were no restricted shares excluded for the three months ended January 31, 2018 and there were 26,740 restricted shares excluded for the nine months ended January 31, 2018, respectively. Share Repurchases and Dividends During the three months ended January 31, 2019, we repurchased 208,711 shares of Class A Common stock at an average price of $47.91. During the three months ended January 31, 2018, we did not repurchase any shares of common stock. During the nine months ended January 31, 2019 and 2018, we repurchased 633,831 and 550,757 shares of Class A Common stock, respectively, at an average price of $55.21 and $53.12, respectively. The following table summarizes the cash dividends paid during the nine months ended January 31, 2019:
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Restructuring and Related Charges | Note 8 — Restructuring and Related Charges Beginning in fiscal year 2013, we initiated a program (the “Restructuring and Reinvestment Program”) to restructure and realign our cost base with current and anticipated future market conditions. We are targeting most of the cost savings achieved to improve margins and earnings, with the remainder reinvested in growth opportunities. The following tables summarize the pre-tax restructuring (credits) charges related to this program:
Other Activities for the three and nine months ended January 31, 2019 and 2018 include lease impairment related costs. The credits in Other Activities for the nine months ended January 31, 2018 mainly reflect changes in estimates for previously accrued restructuring charges related to facility lease reserves. The following table summarizes the activity for the Restructuring and Reinvestment Program liability for the nine months ended January 31, 2019:
The restructuring liability as of January 31, 2019 for accrued Severance costs is reflected in Accrued Employment Costs in the Unaudited Condensed Consolidated Statement of Financial Position. The liability as of January 31, 2019, for Consulting and Contract Termination Costs is reflected in Other Accrued Liabilities. As of January 31, 2019, approximately $1.2 million and $1.6 million of the Other Activities are reflected in Other Accrued Liabilities and Other Long-Term Liabilities, respectively, and mainly relate to facility relocation and lease impairment related costs. We currently do not anticipate any further material charges related to the Restructuring and Reinvestment Program. The amount included in Other Long-Term Liabilities that relates to Other Activities is expected to be paid starting in 2020 until 2022. |
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Segment Information | Note 9 — Segment Information We report our segment information in accordance with the provisions of FASB ASC Topic 280. Segment information is as follows:
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Inventories | Note 10 — Inventories Inventories were as follows:
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets | Note 11 — Goodwill and Intangible Assets Goodwill The following table summarizes the activity in goodwill by segment as of January 31, 2019:
(1) Refer to Note 3, “Acquisition,” in the Notes to Unaudited Condensed Consolidated Financial Statements for more information related to the acquisition of Learning House on November 1, 2018. The April 30, 2018 goodwill balances for Publishing and Solutions have been revised to reflect foreign translation adjustments of $11.6 million. Intangible Assets Identifiable intangible assets, net consisted of the following:
(1) As of January 31, 2019, amounts include intangible assets acquired as part of the acquisition of Learning House on November 1, 2018. Refer to Note 3, “Acquisition,” in the Notes to Unaudited Condensed Consolidated Financial Statements for more information related to the acquisition of Learning House. In conjunction with a business review performed in the Publishing segment associated with the restructuring activities disclosed in Note 8, “Restructuring and Related Charges”, in the three months ended July 31, 2017, we identified an indefinite lived brand with forecasted cash flows that did not support its carrying value. As a result, an impairment charge of $3.6 million was recorded in the three months ended July 31, 2017 to reduce the carrying value of the brand to its fair value of $1.2 million, which is being amortized over its estimated remaining useful life. This impairment charge was included in Operating and Administrative Expenses in the Unaudited Condensed Consolidated Statements of Income for fiscal year 2018. |
Income Taxes |
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Income Taxes | Note 12 — Income Taxes The effective tax rate for the three months ended January 31, 2019 was 22.7%, compared to a tax benefit of 18.1% for the three months ended January 31, 2018. The effective tax rate for the nine months ended January 31, 2019 was 22.6% compared to 4.0% in the corresponding prior year period. The rates for the three months and nine months ended January 31, 2019 were higher than the rates for the corresponding prior periods due to the impact of U.S. tax legislation originally known as the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) enacted on December 22, 2017. During the three months and nine months ended January 31, 2018, we recorded a provisional estimated net tax benefit of $25 million. Excluding the effects of this non-recurring item, the rates would have been 24.8% and 21.4% for the three months and nine months ended January 31, 2018, respectively. The 22.7% rate for the three months ended January 31, 2019 is lower than 24.8% primarily due to the decrease in U.S. statutory tax rate. The 22.6% rate for the nine months ended January 31, 2019 is higher than 21.4%, primarily due to large equity compensation deductions from significant vesting of restricted stock and other one-time adjustments as well as the impact of a relatively high tax benefit on restructuring costs incurred during the nine months ended January 31, 2018, partially offset by the lower U.S. statutory tax rate. The Tax Act On December 22, 2017, the U.S. enacted the Tax Act which significantly changed U.S tax law by, among other changes, the following:
· created new additional taxes on certain foreign earnings. We completed our accounting for the income tax effects of the Tax Act during our third quarter of 2019, in accordance with the U.S. Securities and Exchange Commission Staff Accounting Bulletin No. 118 (SAB 118) measurement period. As mentioned above, the newly created taxes of the Tax Act, effective for us on May 1, 2018, include a provision designed to tax certain global income ("GILTI"), and a base erosion anti-abuse tax ("BEAT") as well as a new deduction for certain foreign derived intangible income (“FDII”). We recorded a minor benefit during the nine months ended January 31, 2019 and we may adjust this amount in connection with our year-end results and as additional guidance is provided. |
Retirement Plans |
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Retirement Plans | Note 13 — Retirement Plans The components of net pension expense (income) for our global defined benefit plans were as follows:
We adopted ASU 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” on May 1, 2018. Refer to Note 2, "Recent Accounting Standards," in the Notes to Unaudited Condensed Consolidated Financial Statements for more information. The guidance requires that the service cost component of net pension and postretirement benefit costs be reported in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. Such amounts are reflected in Operating and Administrative Expenses on our Unaudited Condensed Consolidated Statement of Operations. The guidance requires that the other components of net benefit costs be reported separately from the service cost component and below operating income. Such amounts are reflected in Interest Income and Other on our Unaudited Condensed Consolidated Statement of Operations. We were required to retrospectively adopt this guidance. Employer defined benefit pension plan contributions were $15.8 million and $2.8 million for the three months ended January 31, 2019 and 2018, respectively, and $22.9 million and $8.4 million for the nine months ended January 31, 2019 and 2018, respectively. Included in our defined benefit pension contributions for the three and nine months ended January 31, 2019 was a discretionary contribution of $10.0 million to the U.S. Employees' Retirement Plan of John Wiley & Sons, Inc. The expense for employer defined contribution plans were approximately $2.6 million and $3.4 million for the three months ended January 31, 2019 and 2018, respectively, and $9.9 million and $11.3 million for the nine months ended January 31, 2019 and 2018, respectively. |
Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities | Note 14 — Derivative Instruments and Hedging Activities From time-to-time, we enter into forward exchange and interest rate swap contracts as a hedge against foreign currency asset and liability commitments, changes in interest rates and anticipated transaction exposures, including intercompany purchases. All derivatives are recognized as assets or liabilities and measured at fair value on our Unaudited Condensed Consolidated Balance Sheets. Derivatives that are not determined to be effective hedges are adjusted to fair value with a corresponding adjustment to earnings. We do not use financial instruments for trading or speculative purposes. Interest Rate Contracts We had $633.5 million of variable rate loans outstanding at January 31, 2019, which approximated fair value. As of January 31, 2019 and 2018 the interest rate swap agreements maintained by us were designated as cash flow hedges as defined under ASC 815 “Derivatives and Hedging.” As a result, there was no impact on our Unaudited Condensed Consolidated Statements of Income for changes in the fair value of the interest rate swaps as they were fully offset by changes in the interest expense on the underlying variable rate debt instruments. On April 4, 2016, we entered into a forward starting interest rate swap agreement which fixed a portion of the variable interest due on a variable rate debt renewal on May 16, 2016. Under the terms of the agreement, we pay a fixed rate of 0.92% and receive a variable rate of interest based on one-month LIBOR from the counterparty which is reset every month for a three-year period ending May 15, 2019. As of January 31, 2019 and April 30, 2018, the notional amount of the interest rate swap was $350.0 million. It is management’s intention that the notional amount of interest rate swaps be less than the variable rate loans outstanding during the life of the derivatives. We record the fair value of our interest rate swaps on a recurring basis using Level 2 inputs of quoted prices for similar assets or liabilities in active markets. The fair value of the interest rate swaps as of January 31, 2019 and April 30, 2018 was a deferred gain of $1.8 million and $5.1 million, respectively. Based on the maturity dates of the contracts, the entire deferred gain as of January 31, 2019 was recorded within Prepaid Expenses and Other Current Assets and as of April 30, 2018 was recorded within Other Non-Current Assets. The pre-tax gains that were reclassified from Accumulated Other Comprehensive Loss into Interest Expense for the three months ended January 31, 2019 and 2018 were $1.3 million and $0.4 million, respectively. The pre-tax gains that were reclassified from Accumulated Other Compensation Loss into Interest Expense in the Unaudited Condensed Consolidated Statements of Income for the nine months ended January 31, 2019 and 2018 were $3.4 million and $0.8 million, respectively. Foreign Currency Contracts We may enter into forward exchange contracts to manage our exposure on certain foreign currency denominated assets and liabilities. The forward exchange contracts are marked to market through Foreign Exchange Transaction (Losses) Gains in the Unaudited Condensed Consolidated Statements of Income and carried at their fair value in the Unaudited Condensed Consolidated Statements of Financial Position. Foreign currency denominated assets and liabilities are remeasured at spot rates in effect on the balance sheet date, with the effects of changes in spot rates reported in Foreign Exchange Transaction (Losses) Gains in the Unaudited Condensed Consolidated Statements of Income. As of January 31, 2019, and April 30, 2018, we did not maintain any open forward exchange contracts. In addition, we did not maintain any open forward contracts during the nine months ended January 31, 2019 and 2018. |
Commitments and Contingencies |
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Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 15 — Commitments and Contingencies We are involved in routine litigation in the ordinary course of our business. A provision for litigation is accrued when information available to us indicates that it is probable a liability has been incurred and the amount of loss can be reasonably estimated. Significant judgment may be required to determine both the probability and estimates of loss. When the amount of the loss can only be estimated within a range, the most likely outcome within that range is accrued. If no amount within the range is a better estimate than any other amount, the minimum amount within the range is accrued. When uncertainties exist related to the probable outcome of litigation and/or the amount or range of loss, we do not record a liability, but disclose facts related to the nature of the contingency and possible losses if management considers the information to be material. Reserves for legal defense costs are recognized when incurred. The accruals for loss contingencies and legal costs are reviewed regularly and may be adjusted to reflect updated information on the status of litigation and advice of legal counsel. In the opinion of management, the ultimate resolution of all pending litigation as of January 31, 2019, will not have a material effect upon our Unaudited Condensed Consolidated Financial Condition or Results of Operations. |
Basis of Presentation (Policies) |
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Basis of Presentation | Throughout this report, when we refer to “Wiley,” the “Company,” “we,” “our,” or “us,” we are referring to John Wiley & Sons, Inc. and all our subsidiaries, except where the context indicates otherwise. Our unaudited Condensed Consolidated Financial Statements include all the accounts of the Company and our subsidiaries. We have eliminated all significant intercompany transactions and balances in consolidation. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Condensed Consolidated Financial Condition, Results of Operations, Comprehensive Income and Cash Flows for the periods presented. Operating results for the interim period are not necessarily indicative of the results expected for the full year. All amounts are in thousands, except per share amounts, and approximate due to rounding. These financial statements should be read in conjunction with the most recent audited consolidated financial statements included in our Form 10-K for the fiscal year ended April 30, 2018 as filed with the SEC on June 29, 2018 (“2018 Form 10-K”). Our Condensed Consolidated Financial Statements were prepared in accordance with the interim reporting requirements of the SEC. As permitted under those rules, annual footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted. The preparation of our Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Certain prior year amounts have been reclassified to conform to the current year’s presentation. Change in Accounting Policy In connection with the acquisition of Learning House (See Note 3, “Acquisition”), we changed our accounting policy for certain advertising and marketing costs incurred by our Education Services business to fulfill performance obligations from contracts with educational institutions. Under the new accounting policy, these costs are included in Cost of Sales whereas they were previously included in Operating and Administrative Expenses on the Unaudited Condensed Consolidated Statements of Income. Including these expenses in Cost of Sales will better align these costs with the related revenue and conform with the presentation of such costs for Learning House. This change in accounting policy was applied retrospectively. The Unaudited Condensed Consolidated Statements of Income for the three and nine months ended January 31, 2018 have been reclassified to reflect this change in accounting policy. The impact of this reclassification was an increase to Cost of Sales and a corresponding decrease to Operating and Administrative Expenses of $11.2 million and $34.7 million for the three and nine months ended January 31, 2018, respectively. This reclassification had no impact on Revenue, net, Operating Income, Net Income, or Earnings per Share on the Unaudited Condensed Consolidated Statements of Income. |
Recent Accounting Standards (Policies) |
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Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Stock Compensation – Scope of Modification Accounting In May 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-09, “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting,” which clarifies when changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Under the new guidance, modification accounting is only required if the fair value, vesting conditions or classification (equity or liability) of the new award are different from the original award immediately before the original award is modified. We adopted ASU 2017-09 on May 1, 2018 and there was no impact to our condensed consolidated financial statements. The new guidance must be applied prospectively to awards modified on or after the adoption date. The future impact of ASU 2017-09 will be dependent on the nature of future stock award modifications. Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued ASU 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The guidance requires that the service cost component of net pension and postretirement benefit costs be reported in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period, while the other components of net benefit costs must be reported separately from the service cost component and below operating income. The guidance also allows only the service cost component to be eligible for capitalization when applicable. We adopted ASU 2017-07 on May 1, 2018. The new guidance must be applied retrospectively for the presentation of net benefit costs in the income statement and prospectively for the capitalization of the service cost component of net benefit costs. The effect of retrospectively adopting this guidance resulted in a reclassification of net benefits of $2.0 million and $6.0 million from Operating and Administrative Expenses to Interest and Other Income on the Unaudited Condensed Consolidated Statement of Operations for the three and nine months ended January 31, 2018, respectively. The amount included in Interest and Other Income on the Unaudited Condensed Consolidated Statement of Operations for the three and nine months ended January 31, 2019 was a net benefit of $2.1 million and $6.6 million, respectively. We do not capitalize any service costs. Business Combinations: Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”, which clarifies the definition of a business in order to allow for the evaluation of whether transactions should be accounted for as acquisitions or disposals of assets or business. We adopted ASU 2017-01 on May 1, 2018. The future impact of ASU 2017-01 will be dependent upon the nature of future acquisitions or dispositions made by us. Statement of Cash Flows: Restricted Cash In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” ASU 2016-18 requires that entities include restricted cash and restricted cash equivalents with cash and cash equivalents in the beginning-of-period and end-of-period total amounts shown on the Statement of Cash Flows. We adopted ASU 2016-18 on May 1, 2018. Retrospective transition method is to be applied to each period presented. As a result of this retrospective adoption, the reclassification of restricted cash into a change in total cash resulted in a reduction in Cash Used in Operating Activities of $0.5 million for the nine months ended January 31, 2018. Income taxes: Intra-Entity Transfers of Assets Other than Inventory In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory”, which simplifies the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Current U.S. GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. The new guidance states that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in this Standard eliminate the exception for an intra-entity transfer of an asset other than inventory. We adopted ASU 2016-16 on May 1, 2018. The adoption of ASU 2016-16 did not have a material impact to our condensed consolidated financial statements. Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which provides clarification on classifying a variety of activities within the Statement of Cash Flows. We adopted ASU 2016-15 on May 1, 2018. The adoption of ASU 2016-15 did not have a material impact to our condensed consolidated statements of cash flows. Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” Subsequently, the FASB issued ASU 2018-03, “Technical Corrections and Improvements to Financial Instruments-Overall.” ASU 2016-01 requires equity investments except those under the equity method of accounting to be measured at fair value with the changes in fair value recognized in net income. The amendment simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. In addition, it also requires enhanced disclosures about investments. We adopted ASU 2016-01 on May 1, 2018. The adoption of ASU 2016- 01 did not have a material impact to our condensed consolidated financial statements. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers," (Topic 606) which superseded most existing revenue recognition guidance. We adopted ASU 2014-09 on May 1, 2018. The standard allows for either "full retrospective" adoption, meaning the standard is applied to all periods presented, or "modified retrospective" adoption, meaning the standard is applied only to the most current period presented in the financial statements. Subsequently, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers (Topic 606) – Principal versus Agent Considerations", ASU 2016-10, "Revenue from Contracts with Customers (Topic 606) – Identifying Performance Obligations and Licensing", ASU 2016-12, "Revenue from Contracts with Customers (Topic 606) – Narrow Scope Improvements and Practical Expedients", and ASU 2016-20, "Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers," which provide clarification and additional guidance related to ASU 2014-09. We also adopted ASU 2016-08, ASU 2016-10, ASU 2016-12, and ASU 2016-20 with ASU 2014-09 (collectively, the “new revenue standard”) on May 1, 2018. We utilized a comprehensive approach to assess the impact of the new revenue standard on our contract portfolio by reviewing our current accounting policies and practices to identify differences that would result from applying the new revenue standard to our revenue contracts. Additionally, we reviewed customer agreements representative of our business models and assessed whether changes in revenue recognition were appropriate under the new revenue standard. We adopted the new revenue standard as of May 1, 2018, using the modified retrospective method. The adoption of the new revenue standard did not have a material impact to our consolidated revenues, financial position, or results of operations. Upon adoption, we recorded an immaterial net increase to opening retained earnings resulting from the change in timing of when certain components of our revenue are recognized as required under the new revenue standard as compared to historical policies. Such changes include:
The adoption of the new revenue standard resulted in the discontinuance of the historical practice of presenting accounts receivable and deferred revenue balances on a net basis for some of our subscription licensing agreements where we have invoiced a customer in advance of the related revenue being recognized and payment has not yet been received. As of April 30, 2018, the amounts that were previously netted down from accounts receivable and deferred revenue were $59.5 million. The current policy for our subscription licensing agreements is to record accounts receivable when performance occurs and recognize contract liabilities once the invoice is due, or cash payment is received from the customer. In addition, the adoption of the new revenue standard resulted in the reclassification of the sales return reserve provision to Contract Liability (Deferred Revenue) from Accounts Receivable, Net on the Unaudited Condensed Consolidated Statement of Financial Position. As of April 30, 2018, the amount was $28.3 million. The impact of the adoption of the new revenue standard on the Unaudited Condensed Consolidated Statements of Income was $0.4 million and $11.1 million in revenue, net, for the three months and nine months ended January 31, 2019, respectively, and was a credit of $(0.7) million in cost of sales for the three months ended January 31, 2019 and expense of $1.7 million for the nine months ended January 31, 2019. The impact to the Unaudited Condensed Consolidated Statement of Financial Position was not material by line item, except for the reclassification of the sales return reserve provision to contract liability from accounts receivable, net. The sales return reserve provision amount that is included in Contract Liability (Deferred Revenue) on the Unaudited Condensed Consolidated Statement of Financial Position as of January 31, 2019 was $36.7 million. |
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Recently Issued Accounting Standards | Recently Issued Accounting Standards Intangibles-Goodwill and Other-Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In August 2018, the FASB issued ASU 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract.” ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for us on May 1, 2020, and interim periods within that fiscal year, with early adoption permitted. We are currently assessing the impact the new guidance will have on our consolidated financial statements. Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans.” ASU 2018-14 removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and added additional disclosures. The standard is effective for us on May 1, 2021, with early adoption permitted. The amendments in ASU 2018-14 would need to be applied on a retrospective basis. We are currently assessing the impact the new guidance will have on our disclosures. Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 removes certain disclosures, modifies certain disclosures and added additional disclosures. The standard is effective for us on May 1, 2020, with early adoption permitted. Certain disclosures in ASU 2018-13 would need to be applied on a retrospective basis and others on a prospective basis. We are currently assessing the impact the new guidance will have on our disclosures. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-02 “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The standard is effective for us on May 1, 2019, and interim periods within that fiscal year, with early adoption permitted. We are currently assessing the impact the new guidance will have on our consolidated financial statements. Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” to simplify and improve the application and financial reporting of hedge accounting. Subsequently, in November 2018, the FASB issued ASU 2018-16, “Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes”. ASU 2017-12 eases the requirements for measuring and reporting hedge ineffectiveness and clarifies that changes in the fair value of hedging instruments for cash flow, net investment, and fair value hedges should be reflected in the same income statement line item as the earnings effect of the hedged item. The guidance also permits entities to designate specific components in cash flow and interest rate hedges as the hedged risk, instead of using total cash flows. ASU 2018-16 allows the use of the OIS rate based on the SOFR as a U.S. benchmark interest rate for hedge accounting purposes. These ASUs are effective for us on May 1, 2019, with early adoption permitted. We are currently assessing the impact the new guidance will have on our consolidated financial statements. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, “Intangibles–Goodwill and Other (Topic 350): “Simplifying the Test for Goodwill Impairment”, which simplifies the measurement of a potential goodwill impairment charge by eliminating the requirement to calculate an implied fair value of the goodwill based on the fair value of a reporting unit’s other assets and liabilities. The new guidance eliminates the implied fair value method and instead measures a potential impairment charge based on the excess of a reporting unit’s carrying value compared to its fair value. The impairment charge cannot exceed the total amount of goodwill allocated to that reporting unit. The standard is effective for us on May 1, 2020, with early adoption permitted. Based on our most recent annual goodwill impairment test completed in fiscal year 2018, we expect no initial impact on adoption. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” Subsequently, in November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses”. ASU 2016-13 requires entities to measure all expected credit losses for most financial assets held at the reporting date based on an expected loss model which includes historical experience, current conditions, and reasonable and supportable forecasts. Entities will now use forward-looking information to better form their credit loss estimates. ASU 2016-13 also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. ASU 2016-13 and ASU 2018-19 are effective for us on May 1, 2020, including interim periods within those fiscal periods, with early adoption permitted. We are currently assessing the impact the new guidance will have on our consolidated financial statements. Leases In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)”. Subsequently, the FASB issued in March 2019, ASU 2019-01, “Leases (Topic 842): Codification Improvements”, in December 2018 ASU 2018-20, “Leases (Topic 842): Narrow Scope Improvements for Lessors”, and in July 2018 the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements” and ASU 2018-10, “Codification Improvements to Topic 842, Leases”. ASU 2016-02 requires an entity to recognize a right-of-use asset (“ROU”) and lease liability for all leases with terms of more than 12 months and provide enhanced disclosures. Recognition, measurement, and presentation of expenses will depend on classification as a finance or operating lease. Similar modifications have been made to lessor accounting in-line with revenue recognition guidance. The new standard provides a number of optional practical expedients in transition. We expect to elect the practical expedients to forgo a reassessment of (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) initial direct costs. We do not expect to elect the practical expedient allowing the use-of-hindsight which would require us to reassess the lease term of our leases based on all facts and circumstances through the effective date. In addition, we do not expect to elect the practical expedient pertaining to land easements. In addition, the new standard provides as a practical expedient, certain policy elections for ongoing lease accounting to (i) not separate nonlease components from the associated lease component if certain conditions are met, and (ii) not recognize ROU assets and lease liabilities for leases that qualify as short-term. If the short-term recognition exemption is elected, we will not recognize ROU assets or lease liabilities for existing short-term leases in transition. We are currently assessing the impact these policy elections will have on our consolidated financial statements. The standard is effective for us on May 1, 2019, with early adoption permitted. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. A company may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as of its date of initial application. We will adopt the new standard on May 1, 2019 and expect to use the effective date as the date of initial application. Accordingly, previously reported financial information will not be updated, and the disclosures required under the new standard will not be provided for dates and periods before May 1, 2019. We are currently assessing the impact the new guidance will have on our consolidated financial statements. Additionally, we are assessing the implementation of a lease accounting system for our leases, including the conversion of our existing lease data to a new system and implementing relevant internal controls and procedures. |
Revenue Recognition, Contracts with Customers (Policies) |
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Revenue Recognition, Contracts with Customers [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer | Description of Revenue Generating Activities We generate our revenues from sales from our three reportable segments. We report our segment information in accordance with the provisions of FASB ASC Topic 280, “Segment Reporting” (“FASB ASC Topic 280”). Our segment reporting structure consists of three reportable segments, which are listed below, and a Corporate category:
Research Segment Included within the Research segment are the following revenue streams:
Journal Subscriptions We publish approximately 1,700 academic research journals. We sell journal subscriptions directly through our sales representatives, indirectly through independent subscription agents, through promotional campaigns, and through memberships in professional societies for those journals that are sponsored by societies. Journal subscriptions are primarily licensed through contracts for digital content available online through Wiley Online Library. In March 2018, we migrated our Wiley Online Library platform to our Literatum platform, which we acquired as part of our purchase of Atypon Systems, Inc. (“Atypon”) in fiscal year 2017. Contracts are negotiated by us directly with customers or their subscription agents. Subscription periods typically cover calendar years. Print journals are generally mailed to subscribers directly from independent printers. We do not own or manage printing facilities. Subscription revenue is generally collected in advance. In a typical journal subscription sale, there is a written agreement between us and our customer that cover multiple years. However, we typically account for these agreements as one-year contracts because our enforceable rights under the agreements are subject to an annual confirmation and negotiation process with the customer. In journal subscriptions, multiple performance obligations exist, which include a stand-ready promise to provide access to new content for one year and a perpetual license for access to historical journal content. The transaction price consists of fixed consideration. We allocate revenue to the stand-ready promise to provide access to new content for one year based on its standalone selling price and the revenue for new content is recognized over time as we have a continuous stand-ready obligation to provide the right of access to additional intellectual property. The allocation of revenue to the perpetual licenses for access to historical journal content is done using the expected cost plus a margin approach as permitted by the new revenue standard. Revenue is recognized at the point in time when access to historical content is initially granted. Open Access Under the Author-Funded Access business model, accepted research articles are published subject to payment of Article Publication Charges (“APC”). All Author-Funded Access articles are immediately free to access online. Contributors of Author-Funded Access articles retain many rights and typically license their work under terms that permit re-use. Author-Funded Access offers authors choices in how to share and disseminate their work, and it serves the needs of researchers who may be required by their research funder to make articles freely accessible without embargo. APCs are typically paid by the individual author or by the author’s funder, and payments are often mediated by the author’s institution. We provide specific workflows and infrastructure to authors, funders and institutions to support the requirements of the Author-Funded Access model. Customers in open access are typically individual educational institutions or a consortium of universities. Under the Author-Funded Access model, we have a signed contract with the customer that contains enforceable rights. The Author-Funded Access model in a typical model includes an over-time single performance obligation that combines a promise to host the customer’s content on our open access platform, and a promise to provide a discount on APCs of eligible users (as defined in the contract) in exchange for an upfront payment. Enforceable right to payment occurs over time as we fulfill our obligation to provide a discount to eligible users, as defined, on future APCs. Therefore, the upfront payment is deferred and recognized over time. Licensing, Reprints, Backfiles and Other Licensing, Reprints, Backfiles, and Other includes advertising, backfile sales, the licensing of publishing rights, journal and article reprints, and individual article sales. A backfile license provides access to a historical collection of Wiley journals, generally for a one-time fee. Within Licensing, the revenue derived from these contracts is primarily comprised of advance payments, including minimum guarantees and sales- or usage-based royalty agreements. For our sales-or usage-based royalty agreements, we recognize revenue in the period of usage based on the amounts earned. We record revenue under these arrangements for the amounts due and not yet reported to us based on estimates of the sales or usage of these customers and pursuant to the terms of the contracts. We also have certain licenses whereby we receive a non-refundable minimum guarantee against a volume-based royalty throughout the term of the agreement. We recognize revenue for the minimum guarantee on a straight-line basis over the term of the agreement because of the stand-ready promise to provide updates during the subscription period. We recognize volume-based royalty income only when cumulative consideration exceeds the minimum guarantee. Reprints contracts generally contain a single performance obligation which is the delivery of printed articles. Revenue is recognized at the time of delivery of the printed articles. For Backfiles, the performance obligation is the granting of a functional intellectual property license. Revenue is recognized at the time the functional intellectual property license is granted. Other includes our Article Select offering, whereby we have a single performance obligation to our customers to give access to an article through the purchase of a token. The customer redeems the token for access to the article for a 24-hour period. The customer purchases the tokens with an upfront cash payment. Revenue is recognized when access to the article is provided. Publishing Technology Services (Atypon) Atypon is a publishing software and service provider that enables scholarly and professional societies and publishers to deliver, host, enhance, market, and manage their content on the web through the Literatum platform. The duration of these contracts is generally multi-year ranging from 2-5 years. Atypon contracts typically include a single performance obligation for the implementation and hosting subscription services. The transaction price is fixed which may include price escalators that are fixed increases per year, and therefore, revenue is recognized upon the initiation of the subscription period and straight-lined over the contract period. Publishing Segment Included within the Publishing segment are the following revenue streams:
STM (Scientific, Technical and Medical) and Professional Publishing and Education Publishing STM books are sold and distributed globally in digital and print formats through multiple channels, including research libraries and library consortia, independent subscription agents, direct sales to professional society members, bookstores, online booksellers, and other customers. Professional books, which include business and finance, technology, and other professional categories, as well as the For Dummies brand, are sold to bookstores and online booksellers serving the general public, wholesalers who supply such bookstores, warehouse clubs, college bookstores, individual practitioners, industrial organizations and government agencies. We employ sales representatives who call upon independent bookstores, national and regional chain bookstores, and wholesalers. Sales of professional books also result from direct mail campaigns, telemarketing, online access, advertising, and reviews in periodicals. Education textbooks and related supplementary material and digital products are sold primarily to bookstores and online booksellers serving both for-profit and nonprofit educational institutions (primarily colleges and universities), and direct-to-students. We employ sales representatives who call on faculty responsible for selecting books to be used in courses, and on the bookstores that serve such institutions and their students. The textbook business is seasonal, with the majority of textbook sales occurring during the July-through-October and December-through-January periods. Book sales for STM, Professional and Education Publishing are generally made on a returnable basis with certain restrictions. Our performance obligations as it relates to STM, Professional and Education Publishing are primarily book products delivered in both print and digital form which could include a single or multiple performance obligations based on the number of International Standard Book Number (“ISBN’s”) purchased. This revenue stream also includes variable consideration as it relates to discounts and returns for both print and digital books. Discounts are identifiable by performance obligation and therefore are applied at the point of sale by performance obligation. The process that we use to determine our sales returns and the related reserve provision charged against revenue is based on applying an estimated return rate to current year returnable print book sales. This rate is based upon an analysis of actual historical return experience in the various markets and geographic regions in which we do business. We collect, maintain and analyze significant amounts of sales returns data for large volumes of homogeneous transactions. This allows us to make reasonable estimates of the amount of future returns. All available data is utilized to identify the returns by market and to which fiscal year the sales returns apply. This enables management to track the returns in detail and identify and react to trends occurring in the marketplace, with the objective of being able to make the most informed judgments possible in setting reserve rates. Associated with the estimated sales return reserves, we also include a related reduction in inventory and royalty costs as a result of the expected returns. As it relates to print and digital books within the STM, Professional and Education Publishing, revenue is recognized at the point when control of product transfers, which for print is upon shipment or for digital when fulfillment of the products has been rendered. Course Workflow (WileyPLUS) We offer high-quality online learning solutions, including WileyPLUS, a research-based, online environment for effective teaching and learning that is integrated with a complete digital textbook. Course Workflow customers purchase access codes to utilize the product. This could include a single or multiple performance obligations based on the number of course ISBN’s purchased. Revenue is recognized from the point in time when the access codes are activated and then over the applicable semester term such product relates to. Test Preparation and Certification The Test Preparation and Certification business represents learning solutions and training activities that are delivered to customers directly through online digital delivery platforms. Products include CPAExcel, a modular, digital platform comprised of online self-study, videos, mobile apps, and sophisticated planning tools to help professionals prepare for the CPA exam, and test preparation products for the CFA®, CMA, CIA®, CMT®, FRN®, FINRA, Banking, and PMP® exams. Test Preparation and Certification contracts are generally three-year agreements. This revenue stream includes multiple performance obligations as it relates to the on-line and printed course materials, including such items as text books, e-books, video lectures, flashcards, study guides and test banks. The transaction price is fixed; however, discounts are offered and returns of certain products are allowed. We allocate revenue to each performance obligation based on its standalone selling price. Depending on the performance obligation, revenue is recognized at the time the product is delivered and control has passed to the customer or over time due to our stand-ready obligation to provide updates to the customer. Licensing, Distribution, Advertising and Other Licensing and distribution services are made available to other publishers under agency arrangements. We also engage in co-publishing titles with international publishers and receive licensing revenue from photocopies, reproductions, translations, and digital uses of our content. Wiley also realizes advertising revenue from branded Web sites (e.g., Dummies.com, etc.) and online applications. Licensing, Distribution, Advertising and Other contracts are generally multi-year agreements. Revenue derived from our licensing contracts is primarily comprised of advance payments and sales- or usage-based royalties. Revenue for advance payments is recognized at the point in time that the functional intellectual property license is granted. For sales- or usage- based royalties, we record revenue under these arrangements for the amounts due and not yet reported to us based on estimates of the sales or usage of these customers and pursuant to the terms of the contracts. Solutions Segment Included within the Solutions segment are the following revenue streams:
Education Services As student demand for online degree and certificate programs continues to increase, traditional institutions are partnering with online program management providers to develop and support these programs. Education Services include market research, marketing, student recruitment, enrollment support, proactive retention support, academic services to design courses, faculty support, and access to the Engage Learning Management System, which facilitates the online education experience. Revenue is derived from pre-negotiated contracts with institutions that provide for a share of tuition generated from students who enroll in a program. The duration of Education Services contracts are generally multi-year agreements ranging from a period of 7-10 years, with some having optional renewal periods. Education Services includes a single performance obligation for the services provided because of the integrated technology and services our institutional clients need to attract, enroll, educate and support students. Consideration is variable since it is based on the number of students enrolled in a program. We begin to recognize revenue at the start of the delivery of the class within a semester, which is also the point at which the variable consideration contingency is resolved. Professional Assessment Our Professional Assessment services include pre-hire screening and post-hire personality assessments, which are delivered to business customers through online digital delivery platforms, either directly or through an authorized distributor network of independent consultants, trainers, and coaches. Professional Assessment services contracts are generally one year. Professional Assessment includes a performance obligation to stand ready to provide assessments to our distributor’s customers or to provide assessments direct to a customer. Revenue for Professional Assessments is recognized at the time the product or service is provided or delivered. Consideration is allocated to assessments based on standalone selling prices. In addition, as it relates to Professional Assessments customers' unexercised rights for situations where we have received a nonrefundable payment for a customer to receive a good or service and the customer is not expected to exercise such right, we will recognize such “breakage” amounts as revenue in proportion to the pattern of rights exercised by the customer. Corporate Learning The Corporate Learning business offers online learning and training solutions for global corporations, universities, and small and medium-sized enterprises, which are sold on a subscription or fee basis. Learning formats and modules on topics such as leadership development, value creation, client orientation, change management and corporate strategy are delivered on a cloud-based Learning Management System (“LMS”) platform that hosts over 20,000 content assets (videos, digital learning modules, written files, etc.) in 17 languages. Its Mohive offering also provides a collaborative e-learning publishing and program creation system. Revenue growth is derived from legacy markets, such as France, England, and other European markets, and newer markets, such as the U.S. and Brazil. In addition, content and LMS offerings are continuously refreshed and expanded to serve a wider variety of customer needs. These digital learning solutions are sold directly to corporate customers either direct or through our partners. Corporate Learning contracts are generally multi-year agreements. The transaction price consists of fixed consideration that is determined at the beginning of each year and received at the same time. Within Corporate Learning there are multiple performance obligations which includes the licenses to learning content and the learning application. Revenue is recognized over time as we have a continuous obligation to provide the right of access to the intellectual property which includes the licenses and learning applications. |
Recent Accounting Standards (Tables) |
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Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Unaudited Condensed Consolidated Statement of Financial Position that sum to the total of the same such amounts shown in the Unaudited Condensed Consolidated Statement of Cash Flows.
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Cumulative Effect of Changes Made to Consolidated Balance Sheet As a Result of Adoption of New Revenue Standard | The cumulative effect of the changes made to our consolidated balance sheet at May 1, 2018 as a result of adoption of the new revenue standard using the modified retrospective method were as follows:
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Acquisition (Tables) |
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Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||
Intangible Assets Acquired and Weighted-Average Useful Life | The transaction was accounted for using the acquisition method of accounting. We recorded the preliminary fair value of the assets acquired and liabilities assumed on the acquisition date, which included $109.5 million of intangible assets, goodwill of $109.1 million and net liabilities assumed of $17.3 million, all of which are included in the Solutions segment. None of the goodwill will be deductible for tax purposes. The final allocation of the consideration transferred to the assets acquired and the liabilities assumed will be finalized within the measurement period, which will not exceed one year from the acquisition date. The following table summarizes the identifiable intangible assets acquired and their weighted-average useful life.
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Revenue Recognition, Contracts with Customers (Tables) |
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Revenue from Contracts With Customers Disaggregated by Segment and Product Type | The following tables present our revenue from contracts with customers disaggregated by segment and product type for the three and nine months ended January 31, 2019 and 2018:
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Contract Asset and Liability Balances | The following table provides information about receivables and contract liabilities from contracts with customers.
(1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. (2) Due to the adoption of the new revenue standard, the sales return reserve as of January 31, 2019 of $36.7 million is recorded in Contract Liability (Deferred Revenue). In prior periods, it was recorded as a reduction to Accounts Receivable, net on the Unaudited Condensed Consolidated Statement of Financial Position. |
Stock-Based Compensation (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Jan. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock Data for Awards Granted | The following table summarizes restricted stock awards we granted:
|
Accumulated Other Comprehensive Loss (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Loss by Component, Net of Tax | Changes in Accumulated Other Comprehensive Loss by component, net of tax, for the three and nine months ended January 31, 2019 and 2018 were as follows:
|
Reconciliation of Weighted Average Shares Outstanding and Share Repurchases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Weighted Average Shares Outstanding and Share Repurchases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Shares used in Computation of Earnings Per Share | A reconciliation of the shares used in the computation of earnings per share follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Cash Dividends Paid | The following table summarizes the cash dividends paid during the nine months ended January 31, 2019:
|
Restructuring and Related Charges (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-tax Restructuring (Credits) Charges | The following tables summarize the pre-tax restructuring (credits) charges related to this program:
|
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Activity for Restructuring and Reinvestment Program Liability | The following table summarizes the activity for the Restructuring and Reinvestment Program liability for the nine months ended January 31, 2019:
|
Segment Information (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment information is as follows:
|
Inventories (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories were as follows:
|
Goodwill and Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity in Goodwill by Segment | Goodwill The following table summarizes the activity in goodwill by segment as of January 31, 2019:
(1) Refer to Note 3, “Acquisition,” in the Notes to Unaudited Condensed Consolidated Financial Statements for more information related to the acquisition of Learning House on November 1, 2018. |
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Intangible Assets | Intangible Assets Identifiable intangible assets, net consisted of the following:
(1) As of January 31, 2019, amounts include intangible assets acquired as part of the acquisition of Learning House on November 1, 2018. Refer to Note 3, “Acquisition,” in the Notes to Unaudited Condensed Consolidated Financial Statements for more information related to the acquisition of Learning House. |
Retirement Plans (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plans [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Pension Expense (Income) for Defined Benefit Plans | The components of net pension expense (income) for our global defined benefit plans were as follows:
|
Basis of Presentation (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
||||||||
Change in Accounting Policy [Abstract] | |||||||||||
Cost of sales | [1] | $ 143,879 | $ 136,362 | [2] | $ 404,194 | $ 394,444 | [2] | ||||
Operating and administrative expenses | [1],[2] | $ 240,715 | 239,548 | $ 717,348 | 703,158 | ||||||
Learning House [Member] | Change in Accounting Policy for Certain Advertising and Marketing Costs [Member] | |||||||||||
Change in Accounting Policy [Abstract] | |||||||||||
Cost of sales | 11,200 | 34,700 | |||||||||
Operating and administrative expenses | $ (11,200) | $ (34,700) | |||||||||
|
Recent Accounting Standards, Recently Adopted Accounting Standards (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
Apr. 30, 2018 |
Apr. 30, 2017 |
|||
Recently Adopted Accounting Standards [Abstract] | ||||||||
Net charges (benefits) | $ (1,904) | $ (1,762) | $ (5,823) | $ (5,144) | ||||
Reconciliation of cash, cash equivalents and restricted cash reported within Condensed Consolidated Statement of Cash Flows [Abstract] | ||||||||
Cash and cash equivalents | 132,758 | 128,217 | 132,758 | 128,217 | $ 169,773 | $ 58,516 | ||
Restricted cash included in Prepaid expenses and other current assets | 632 | 545 | 632 | 545 | 484 | 0 | ||
Total cash, cash equivalents, and restricted cash shown in the Unaudited Condensed Consolidated Statement of Cash Flows | [1] | 133,390 | 128,762 | 133,390 | 128,762 | $ 170,257 | $ 58,516 | |
ASU 2017-07 Member] | Operating and Administrative Expenses [Member] | ||||||||
Recently Adopted Accounting Standards [Abstract] | ||||||||
Net charges (benefits) | 2,000 | 6,000 | ||||||
ASU 2017-07 Member] | Interest and Other Income [Member] | ||||||||
Recently Adopted Accounting Standards [Abstract] | ||||||||
Net charges (benefits) | $ 2,100 | $ (2,000) | $ 6,600 | (6,000) | ||||
ASU 2016-18 [Member] | ||||||||
Recently Adopted Accounting Standards [Abstract] | ||||||||
Reduction in cash used in operating activities | $ (500) | |||||||
|
Recent Accounting Standards, Changes in Accounting Policy Resulting from Adoption of Topic 606 (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
Apr. 30, 2018 |
||||||||||||||
Assets [Abstract] | ||||||||||||||||||
Accounts receivable, net | $ 194,764 | [1] | $ 194,764 | [1] | $ 212,377 | |||||||||||||
Product development assets | 62,004 | 62,004 | 78,814 | |||||||||||||||
Technology, property and equipment, net | 286,172 | 286,172 | 289,934 | |||||||||||||||
Other non-current assets | 93,279 | 93,279 | 85,802 | |||||||||||||||
Liabilities [Abstract] | ||||||||||||||||||
Accrued royalties | 135,863 | 135,863 | 73,007 | |||||||||||||||
Contract liability (Deferred revenue) | 271,541 | [1] | 271,541 | [1] | 486,353 | |||||||||||||
Deferred income tax liabilities | 157,786 | 157,786 | 143,518 | |||||||||||||||
Retained earnings | 1,886,620 | 1,886,620 | 1,834,057 | |||||||||||||||
Revenue, net | 449,367 | $ 455,675 | 1,308,890 | $ 1,318,850 | ||||||||||||||
Cost of sales | [2] | 143,879 | $ 136,362 | [3] | 404,194 | $ 394,444 | [3] | |||||||||||
Accounts receivable, net | 194,764 | [1] | 194,764 | [1] | 212,377 | |||||||||||||
Contract liability (Deferred revenue) | 271,541 | [1] | 271,541 | [1] | 486,353 | |||||||||||||
Topic 606 [Member] | ||||||||||||||||||
Liabilities [Abstract] | ||||||||||||||||||
Amounts netted down from accounts receivable, net and deferred revenue | 59,500 | |||||||||||||||||
Revenue, net | 400 | 11,100 | ||||||||||||||||
Cost of sales | (700) | 1,700 | ||||||||||||||||
Topic 606 [Member] | Sales Return Reserve Provision [Member] | ||||||||||||||||||
Assets [Abstract] | ||||||||||||||||||
Accounts receivable, net | (36,700) | (36,700) | (28,300) | |||||||||||||||
Liabilities [Abstract] | ||||||||||||||||||
Contract liability (Deferred revenue) | 36,700 | 36,700 | 28,300 | |||||||||||||||
Accounts receivable, net | (36,700) | (36,700) | (28,300) | |||||||||||||||
Contract liability (Deferred revenue) | $ 36,700 | $ 36,700 | 28,300 | |||||||||||||||
Adjustments due to Adoption [Member] | Topic 606 [Member] | ||||||||||||||||||
Assets [Abstract] | ||||||||||||||||||
Accounts receivable, net | 93,349 | |||||||||||||||||
Product development assets | (3,725) | |||||||||||||||||
Technology, property and equipment, net | (361) | |||||||||||||||||
Other non-current assets | 5,274 | |||||||||||||||||
Liabilities [Abstract] | ||||||||||||||||||
Accrued royalties | (731) | |||||||||||||||||
Contract liability (Deferred revenue) | 89,364 | |||||||||||||||||
Deferred income tax liabilities | 1,400 | |||||||||||||||||
Retained earnings | 4,503 | |||||||||||||||||
Accounts receivable, net | 93,349 | |||||||||||||||||
Contract liability (Deferred revenue) | 89,364 | |||||||||||||||||
Balances without Adoption of Topic 606 [Member] | Topic 606 [Member] | ||||||||||||||||||
Assets [Abstract] | ||||||||||||||||||
Accounts receivable, net | [1],[4] | 212,377 | ||||||||||||||||
Liabilities [Abstract] | ||||||||||||||||||
Contract liability (Deferred revenue) | [1],[4] | 486,353 | ||||||||||||||||
Accounts receivable, net | [1],[4] | 212,377 | ||||||||||||||||
Contract liability (Deferred revenue) | [1],[4] | 486,353 | ||||||||||||||||
Balances upon Adoption of Topic 606 [Member] | Topic 606 [Member] | ||||||||||||||||||
Assets [Abstract] | ||||||||||||||||||
Accounts receivable, net | 305,726 | |||||||||||||||||
Product development assets | 75,089 | |||||||||||||||||
Technology, property and equipment, net | 289,573 | |||||||||||||||||
Other non-current assets | 91,076 | |||||||||||||||||
Liabilities [Abstract] | ||||||||||||||||||
Accrued royalties | 72,276 | |||||||||||||||||
Contract liability (Deferred revenue) | 575,717 | |||||||||||||||||
Deferred income tax liabilities | 144,918 | |||||||||||||||||
Retained earnings | 1,838,560 | |||||||||||||||||
Accounts receivable, net | 305,726 | |||||||||||||||||
Contract liability (Deferred revenue) | $ 575,717 | |||||||||||||||||
|
Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 01, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
Oct. 31, 2018 |
Apr. 30, 2018 |
|||||||||
Acquisitions [Abstract] | |||||||||||||||
Net cash payment for acquisition | $ 190,467 | $ 0 | |||||||||||||
Goodwill | $ 1,103,222 | 1,103,222 | $ 1,019,801 | ||||||||||||
Identifiable intangible assets acquired and weighted-average useful life [Abstract] | |||||||||||||||
Identifiable intangible assets acquired | 671,441 | 671,441 | 615,244 | ||||||||||||
Revenue | 449,367 | $ 455,675 | 1,308,890 | 1,318,850 | |||||||||||
Operating loss | 50,346 | $ 65,394 | [1] | 143,961 | $ 158,752 | [1] | |||||||||
Solutions [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Goodwill | 374,808 | 374,808 | 272,531 | ||||||||||||
Customer Relationships [Member] | |||||||||||||||
Identifiable intangible assets acquired and weighted-average useful life [Abstract] | |||||||||||||||
Identifiable intangible assets acquired | 251,855 | [2] | 251,855 | [2] | $ 161,729 | ||||||||||
The Learning House, Inc. [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Percentage of ownership interest acquired | 100.00% | ||||||||||||||
Consideration transferred | $ 201,300 | ||||||||||||||
Payment to acquire business, gross | 200,800 | ||||||||||||||
Cash acquired | 10,300 | ||||||||||||||
Net cash payment for acquisition | 190,500 | ||||||||||||||
Identifiable intangible assets acquired and weighted-average useful life [Abstract] | |||||||||||||||
Identifiable intangible assets acquired | 109,500 | 109,500 | |||||||||||||
The Learning House, Inc. [Member] | Solutions [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Goodwill | $ 109,100 | ||||||||||||||
Net liabilities assumed | (17,300) | ||||||||||||||
Goodwill deductible for tax purposes | 0 | ||||||||||||||
Identifiable intangible assets acquired and weighted-average useful life [Abstract] | |||||||||||||||
Identifiable intangible assets acquired | $ 109,500 | ||||||||||||||
Revenue | 13,400 | 13,400 | |||||||||||||
Operating loss | (5,200) | (5,200) | |||||||||||||
The Learning House, Inc. [Member] | Warrants [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Issuance of warrants | $ 500 | ||||||||||||||
The Learning House, Inc. [Member] | Warrants [Member] | Common Stock Class A [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Number of shares of common stock warrantholders are allowed to purchase (in shares) | 400,000 | ||||||||||||||
Exercise price per share (in dollars per share) | $ 90.00 | ||||||||||||||
The Learning House, Inc. [Member] | Customer Relationships [Member] | |||||||||||||||
Identifiable intangible assets acquired and weighted-average useful life [Abstract] | |||||||||||||||
Identifiable intangible assets acquired | 103,800 | $ 103,800 | |||||||||||||
Weighted-average useful life | 15 years | ||||||||||||||
The Learning House, Inc. [Member] | Course Content [Member] | |||||||||||||||
Identifiable intangible assets acquired and weighted-average useful life [Abstract] | |||||||||||||||
Identifiable intangible assets acquired | $ 5,700 | $ 5,700 | |||||||||||||
Weighted-average useful life | 4 years | ||||||||||||||
|
Revenue Recognition, Contracts with Customers, Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
|
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | $ 449,367 | $ 455,675 | $ 1,308,890 | $ 1,318,850 |
Journals Subscriptions [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 152,291 | 160,287 | 482,000 | 498,775 |
Open Access [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 14,194 | 9,905 | 38,917 | 28,058 |
Licensing, Reprints, Backfiles and Other [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 50,804 | 45,035 | 132,041 | 124,594 |
Publishing Technology Services (Atypon) [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 9,064 | 8,262 | 27,032 | 24,559 |
STM and Professional Publishing [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 64,599 | 80,775 | 197,565 | 215,835 |
Education Publishing [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 37,437 | 48,446 | 127,736 | 151,893 |
Course Workflow (WileyPLUS) [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 22,935 | 21,406 | 42,142 | 38,926 |
Test Preparation and Certification [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 9,560 | 7,758 | 29,343 | 27,167 |
Licensing, Distribution, Advertising and Other [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 11,104 | 11,859 | 31,269 | 32,686 |
Education Services [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 46,207 | 32,242 | 105,244 | 88,316 |
Professional Assessment [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 14,600 | 13,228 | 47,667 | 43,936 |
Corporate Learning [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 16,572 | 16,472 | 47,934 | 44,105 |
Operating Segments [Member] | Research [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 226,353 | 223,489 | 679,990 | 675,986 |
Operating Segments [Member] | Research [Member] | Journals Subscriptions [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 152,291 | 160,287 | 482,000 | 498,775 |
Operating Segments [Member] | Research [Member] | Open Access [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 14,194 | 9,905 | 38,917 | 28,058 |
Operating Segments [Member] | Research [Member] | Licensing, Reprints, Backfiles and Other [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 50,804 | 45,035 | 132,041 | 124,594 |
Operating Segments [Member] | Research [Member] | Publishing Technology Services (Atypon) [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 9,064 | 8,262 | 27,032 | 24,559 |
Operating Segments [Member] | Research [Member] | STM and Professional Publishing [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Research [Member] | Education Publishing [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Research [Member] | Course Workflow (WileyPLUS) [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Research [Member] | Test Preparation and Certification [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Research [Member] | Licensing, Distribution, Advertising and Other [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Research [Member] | Education Services [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Research [Member] | Professional Assessment [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Research [Member] | Corporate Learning [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Publishing [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 145,635 | 170,244 | 428,055 | 466,507 |
Operating Segments [Member] | Publishing [Member] | Journals Subscriptions [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Publishing [Member] | Open Access [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Publishing [Member] | Licensing, Reprints, Backfiles and Other [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Publishing [Member] | Publishing Technology Services (Atypon) [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Publishing [Member] | STM and Professional Publishing [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 64,599 | 80,775 | 197,565 | 215,835 |
Operating Segments [Member] | Publishing [Member] | Education Publishing [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 37,437 | 48,446 | 127,736 | 151,893 |
Operating Segments [Member] | Publishing [Member] | Course Workflow (WileyPLUS) [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 22,935 | 21,406 | 42,142 | 38,926 |
Operating Segments [Member] | Publishing [Member] | Test Preparation and Certification [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 9,560 | 7,758 | 29,343 | 27,167 |
Operating Segments [Member] | Publishing [Member] | Licensing, Distribution, Advertising and Other [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 11,104 | 11,859 | 31,269 | 32,686 |
Operating Segments [Member] | Publishing [Member] | Education Services [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Publishing [Member] | Professional Assessment [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Publishing [Member] | Corporate Learning [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Solutions [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 77,379 | 61,942 | 200,845 | 176,357 |
Operating Segments [Member] | Solutions [Member] | Journals Subscriptions [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Solutions [Member] | Open Access [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Solutions [Member] | Licensing, Reprints, Backfiles and Other [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Solutions [Member] | Publishing Technology Services (Atypon) [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Solutions [Member] | STM and Professional Publishing [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Solutions [Member] | Education Publishing [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Solutions [Member] | Course Workflow (WileyPLUS) [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Solutions [Member] | Test Preparation and Certification [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Solutions [Member] | Licensing, Distribution, Advertising and Other [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Solutions [Member] | Education Services [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 46,207 | 32,242 | 105,244 | 88,316 |
Operating Segments [Member] | Solutions [Member] | Professional Assessment [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 14,600 | 13,228 | 47,667 | 43,936 |
Operating Segments [Member] | Solutions [Member] | Corporate Learning [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | $ 16,572 | $ 16,472 | $ 47,934 | $ 44,105 |
Revenue Recognition, Contracts with Customers, Description of Revenue Generating Activities (Details) |
3 Months Ended | 9 Months Ended |
---|---|---|
Jan. 31, 2018
Journal
|
Jan. 31, 2019
Segment
Asset
Language
|
|
Description of Revenue Generating Activities [Abstract] | ||
Number of reportable segments | Segment | 3 | |
Number of languages available for learning contracts | Language | 17 | |
Journals Subscriptions [Member] | ||
Description of Revenue Generating Activities [Abstract] | ||
Number of academic research journals published | Journal | 1,700 | |
Duration of contract | 1 year | |
Test Preparation and Certification [Member] | ||
Description of Revenue Generating Activities [Abstract] | ||
Duration of contract | 3 years | |
Professional Assessment [Member] | ||
Description of Revenue Generating Activities [Abstract] | ||
Duration of contract | 1 year | |
Minimum [Member] | ||
Description of Revenue Generating Activities [Abstract] | ||
Number of content assets available for corporate learning contracts | Asset | 20,000 | |
Minimum [Member] | Publishing Technology Services [Member] | ||
Description of Revenue Generating Activities [Abstract] | ||
Duration of contract | 2 years | |
Minimum [Member] | Education Services [Member] | ||
Description of Revenue Generating Activities [Abstract] | ||
Duration of contract | 7 years | |
Maximum [Member] | Publishing Technology Services [Member] | ||
Description of Revenue Generating Activities [Abstract] | ||
Duration of contract | 5 years | |
Maximum [Member] | Education Services [Member] | ||
Description of Revenue Generating Activities [Abstract] | ||
Duration of contract | 10 years |
Revenue Recognition, Contracts with Customers, Accounts Receivable, net and Contract Liability (Deferred Revenue) Balances (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jan. 31, 2019 |
Apr. 30, 2018 |
|||||||
Balances from contracts with customers [Abstract] | ||||||||
Accounts receivable, net | $ 194,764 | [1] | $ 212,377 | |||||
Contract liability (Deferred revenue) | 271,541 | [1] | 486,353 | |||||
Contract liability (Deferred revenue) (included in Other Long-Term Liabilities) | 14,722 | |||||||
Increase/(decrease) [Abstract] | ||||||||
Sales return reserve recorded in contract liability | 36,700 | |||||||
Revenue recognized from beginning contract liability | 131,400 | 518,200 | ||||||
Balances without Adoption of Topic 606 [Member] | ASU 2014-09 [Member] | ||||||||
Balances from contracts with customers [Abstract] | ||||||||
Accounts receivable, net | [1],[2] | 212,377 | ||||||
Contract liability (Deferred revenue) | [1],[2] | 486,353 | ||||||
Contract liability (Deferred revenue) (included in Other Long-Term Liabilities) | [2] | 0 | ||||||
Effect of Change Higher/(Lower) [Member] | ASU 2014-09 [Member] | ||||||||
Balances from contracts with customers [Abstract] | ||||||||
Accounts receivable, net | 93,349 | |||||||
Contract liability (Deferred revenue) | $ 89,364 | |||||||
Increase/(decrease) [Abstract] | ||||||||
Accounts receivable, net | [1] | (17,613) | ||||||
Contract liability (Deferred revenue) | [1] | (214,812) | ||||||
Contract liability (Deferred revenue) (included in Other Long-Term Liabilities) | $ 14,722 | |||||||
|
Revenue Recognition, Contracts with Customers, Remaining Performance Obligations, Assets Recognized for the Costs to Obtain or Fulfill a Contract (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
|||||
Remaining Performance Obligations [Abstract] | ||||||||
Remaining performance obligations | $ 286,300 | $ 286,300 | ||||||
Assets Recognized for the Costs to Obtain or Fulfill a Contract [Abstract] | ||||||||
Costs capitalized | 7,600 | 7,600 | ||||||
Amortization | 700 | 1,900 | ||||||
Cost of revenue [Abstract] | ||||||||
Operating and administrative expenses | [1],[2] | 240,715 | $ 239,548 | 717,348 | $ 703,158 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-31 | ||||||||
Remaining Performance Obligations [Abstract] | ||||||||
Remaining performance obligations | $ 234,900 | $ 234,900 | ||||||
Expected timing of satisfaction, period | 12 months | 12 months | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-31 | ||||||||
Remaining Performance Obligations [Abstract] | ||||||||
Remaining performance obligations | $ 14,700 | $ 14,700 | ||||||
Expected timing of satisfaction, period | ||||||||
Shipping and Handling [Member] | ||||||||
Cost of revenue [Abstract] | ||||||||
Operating and administrative expenses | $ 7,900 | $ 8,700 | $ 24,400 | $ 25,300 | ||||
|
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
|
Stock-based Compensation [Abstract] | ||||
Share-based compensation expense | $ 6.1 | $ 4.0 | $ 15.0 | $ 6.5 |
Restricted Stock [Member] | ||||
Restricted stock data for awards granted by the Company [Abstract] | ||||
Awards granted (in shares) | 406 | 528 | ||
Weighted average fair value of grant (in dollars per share) | $ 63.09 | $ 53.27 | $ 63.09 | $ 53.27 |
Performance-based Stock Awards [Member] | ||||
Stock-based Compensation [Abstract] | ||||
Period for achievement of performance-based targets | 3 years |
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | $ 1,169,392 | $ 1,047,050 | $ 1,190,557 | $ 1,003,137 |
Other comprehensive income (loss) before reclassifications | 14,550 | 42,224 | (34,593) | 70,381 |
Amounts reclassified from accumulated other comprehensive loss | (252) | 1,324 | (93) | 3,728 |
Total Other Comprehensive Income (Loss) | 14,298 | 43,548 | (34,686) | 74,109 |
Balance | 1,195,429 | 1,168,326 | 1,195,429 | 1,168,326 |
Accumulated Other Comprehensive Loss [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (488,564) | (476,726) | (439,580) | (507,287) |
Balance | (474,266) | (433,178) | (474,266) | (433,178) |
Foreign Currency Translation [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (312,322) | (286,171) | (251,573) | (319,212) |
Other comprehensive income (loss) before reclassifications | 17,515 | 51,401 | (43,234) | 84,442 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Total Other Comprehensive Income (Loss) | 17,515 | 51,401 | (43,234) | 84,442 |
Balance | (294,807) | (234,770) | (294,807) | (234,770) |
Unamortized Retirement Costs [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (177,828) | (193,028) | (191,026) | (190,502) |
Other comprehensive income (loss) before reclassifications | (3,141) | (9,686) | 7,852 | (14,376) |
Amounts reclassified from accumulated other comprehensive loss | 1,060 | 1,099 | 3,265 | 3,263 |
Total Other Comprehensive Income (Loss) | (2,081) | (8,587) | 11,117 | (11,113) |
Balance | (179,909) | (201,615) | (179,909) | (201,615) |
Interest Rate Swaps [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | 1,586 | 2,473 | 3,019 | 2,427 |
Other comprehensive income (loss) before reclassifications | 176 | 509 | 789 | 315 |
Amounts reclassified from accumulated other comprehensive loss | (1,312) | 225 | (3,358) | 465 |
Total Other Comprehensive Income (Loss) | (1,136) | 734 | (2,569) | 780 |
Balance | $ 450 | $ 3,207 | $ 450 | $ 3,207 |
Accumulated Other Comprehensive Loss, Reclassification out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
|||||
Amortization from Accumulated Other Comprehensive Loss [Abstract] | ||||||||
Operating and administrative expenses | [1],[2] | $ 240,715 | $ 239,548 | $ 717,348 | $ 703,158 | |||
Unamortized Retirement Costs [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||||||||
Amortization from Accumulated Other Comprehensive Loss [Abstract] | ||||||||
Operating and administrative expenses | $ 1,400 | $ 1,500 | $ 4,100 | $ 4,400 | ||||
|
Reconciliation of Weighted Average Shares Outstanding and Share Repurchases (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
|
Reconciliation of Weighted Average Shares Outstanding and Share Repurchases [Abstract] | ||||
Weighted average shares outstanding (in shares) | 57,200,000 | 57,170,000 | 57,383,000 | 57,123,000 |
Less: Unvested restricted shares (in shares) | (42,000) | (135,000) | (53,000) | (144,000) |
Shares used for basic earnings per share (in shares) | 57,158,000 | 57,035,000 | 57,330,000 | 56,979,000 |
Dilutive effect of stock options and other stock awards (in shares) | 468,000 | 836,000 | 552,000 | 757,000 |
Shares used for diluted earnings per share (in shares) | 57,626,000 | 57,871,000 | 57,882,000 | 57,736,000 |
Stock Options [Member] | Class A Common [Member] | ||||
Reconciliation of Weighted Average Shares Outstanding and Share Repurchases [Abstract] | ||||
Anti-dilutive shares excluded from diluted EPS calculation (in shares) | 154,385 | 0 | 154,385 | 255,187 |
Warrants [Member] | ||||
Reconciliation of Weighted Average Shares Outstanding and Share Repurchases [Abstract] | ||||
Warrants issued during period (in shares) | 0 | 0 | ||
Warrants [Member] | Class A Common [Member] | ||||
Reconciliation of Weighted Average Shares Outstanding and Share Repurchases [Abstract] | ||||
Anti-dilutive shares excluded from diluted EPS calculation (in shares) | 470,000 | 158,148 | ||
Restricted Stock [Member] | ||||
Reconciliation of Weighted Average Shares Outstanding and Share Repurchases [Abstract] | ||||
Anti-dilutive shares excluded from diluted EPS calculation (in shares) | 0 | 0 | 0 | 26,740 |
Reconciliation of Weighted Average Shares Outstanding and Share Repurchases, Share Repurchases and Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jan. 16, 2019 |
Dec. 19, 2018 |
Oct. 24, 2018 |
Sep. 26, 2018 |
Jul. 18, 2018 |
Jun. 21, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
|
Cash dividend [Abstract] | ||||||||||
Cash dividends | $ 18,900 | $ 18,900 | $ 19,000 | $ 56,963 | $ 55,093 | |||||
Class A Common [Member] | ||||||||||
Share repurchases [Abstract] | ||||||||||
Shares repurchased (in shares) | 208,711 | 0 | 633,831 | 550,757 | ||||||
Average purchase price (in dollars per share) | $ 47.91 | $ 0 | $ 55.21 | $ 53.12 | ||||||
Cash dividend [Abstract] | ||||||||||
Common stock (in dollars per share) | 0.33 | 0.32 | $ 0.99 | 0.96 | ||||||
Class A Common [Member] | Dividend Declared in Q1 2019 [Member] | ||||||||||
Cash dividend [Abstract] | ||||||||||
Dividend declared date | Jun. 21, 2018 | |||||||||
Common stock (in dollars per share) | $ 0.33 | |||||||||
Dividend payable date | Jul. 18, 2018 | |||||||||
Dividend record date | Jul. 03, 2018 | |||||||||
Class A Common [Member] | Dividend Declared in Q2 2019 [Member] | ||||||||||
Cash dividend [Abstract] | ||||||||||
Dividend declared date | Sep. 26, 2018 | |||||||||
Common stock (in dollars per share) | $ 0.33 | |||||||||
Dividend payable date | Oct. 24, 2018 | |||||||||
Dividend record date | Oct. 09, 2018 | |||||||||
Class A Common [Member] | Dividend Declared in Q3 2019 [Member] | ||||||||||
Cash dividend [Abstract] | ||||||||||
Dividend declared date | Dec. 19, 2018 | |||||||||
Common stock (in dollars per share) | $ 0.33 | |||||||||
Dividend payable date | Jan. 16, 2019 | |||||||||
Dividend record date | Jan. 02, 2019 | |||||||||
Class B Common [Member] | ||||||||||
Cash dividend [Abstract] | ||||||||||
Common stock (in dollars per share) | $ 0.33 | $ 0.32 | $ 0.99 | $ 0.96 | ||||||
Class B Common [Member] | Dividend Declared in Q1 2019 [Member] | ||||||||||
Cash dividend [Abstract] | ||||||||||
Dividend declared date | Jun. 21, 2018 | |||||||||
Common stock (in dollars per share) | $ 0.33 | |||||||||
Dividend payable date | Jul. 18, 2018 | |||||||||
Dividend record date | Jul. 03, 2018 | |||||||||
Class B Common [Member] | Dividend Declared in Q2 2019 [Member] | ||||||||||
Cash dividend [Abstract] | ||||||||||
Dividend declared date | Sep. 26, 2018 | |||||||||
Common stock (in dollars per share) | $ 0.33 | |||||||||
Dividend payable date | Oct. 24, 2018 | |||||||||
Dividend record date | Oct. 09, 2018 | |||||||||
Class B Common [Member] | Dividend Declared in Q3 2019 [Member] | ||||||||||
Cash dividend [Abstract] | ||||||||||
Dividend declared date | Dec. 19, 2018 | |||||||||
Common stock (in dollars per share) | $ 0.33 | |||||||||
Dividend payable date | Jan. 16, 2019 | |||||||||
Dividend record date | Jan. 02, 2019 |
Restructuring and Related Charges, Pre-tax Restructuring (Credits) Charges (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
|
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||
Restructuring and related (credits) charges | $ (348) | $ 2,208 | $ 3,562 | $ 26,531 |
Restructuring and Reinvestment Program [Member] | ||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||
Restructuring and related (credits) charges | (348) | 2,208 | 3,562 | 26,531 |
Restructuring and related charges incurred to date | 170,072 | 170,072 | ||
Restructuring and Reinvestment Program [Member] | Severance [Member] | ||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||
Restructuring and related (credits) charges | (911) | 1,781 | 1,983 | 25,047 |
Restructuring and related charges incurred to date | 116,786 | 116,786 | ||
Restructuring and Reinvestment Program [Member] | Consulting and Contract Termination Costs [Member] | ||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||
Restructuring and related (credits) charges | 301 | 427 | 526 | 1,948 |
Restructuring and related charges incurred to date | 21,155 | 21,155 | ||
Restructuring and Reinvestment Program [Member] | Other Activities [Member] | ||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||
Restructuring and related (credits) charges | 262 | 0 | 1,053 | (464) |
Restructuring and related charges incurred to date | 32,131 | 32,131 | ||
Research [Member] | Restructuring and Reinvestment Program [Member] | ||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||
Restructuring and related (credits) charges | (51) | 690 | 1,251 | 5,138 |
Restructuring and related charges incurred to date | 26,664 | 26,664 | ||
Publishing [Member] | Restructuring and Reinvestment Program [Member] | ||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||
Restructuring and related (credits) charges | (4) | (392) | 735 | 6,933 |
Restructuring and related charges incurred to date | 39,666 | 39,666 | ||
Solutions [Member] | Restructuring and Reinvestment Program [Member] | ||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||
Restructuring and related (credits) charges | 74 | 1,277 | 914 | 3,447 |
Restructuring and related charges incurred to date | 7,161 | 7,161 | ||
Corporate Expenses [Member] | Restructuring and Reinvestment Program [Member] | ||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||
Restructuring and related (credits) charges | (367) | $ 633 | 662 | $ 11,013 |
Restructuring and related charges incurred to date | $ 96,581 | $ 96,581 |
Restructuring and Related Charges, Activity for Restructuring and Reinvestment Program Liability (Details) - Restructuring and Reinvestment Program [Member] $ in Thousands |
9 Months Ended |
---|---|
Jan. 31, 2019
USD ($)
| |
Activity for Restructuring and Reinvestment Program liability [Roll Forward] | |
Restructuring liability, beginning of period | $ 20,051 |
Charges | 3,562 |
Payments | (12,581) |
Foreign translation & other adjustments | 32 |
Restructuring liability, end of period | 11,064 |
Severance [Member] | |
Activity for Restructuring and Reinvestment Program liability [Roll Forward] | |
Restructuring liability, beginning of period | 17,279 |
Charges | 1,983 |
Payments | (11,108) |
Foreign translation & other adjustments | (229) |
Restructuring liability, end of period | 7,925 |
Consulting and Contract Termination Costs [Member] | |
Activity for Restructuring and Reinvestment Program liability [Roll Forward] | |
Restructuring liability, beginning of period | 0 |
Charges | 526 |
Payments | (223) |
Foreign translation & other adjustments | 0 |
Restructuring liability, end of period | 303 |
Other Activities [Member] | |
Activity for Restructuring and Reinvestment Program liability [Roll Forward] | |
Restructuring liability, beginning of period | 2,772 |
Charges | 1,053 |
Payments | (1,250) |
Foreign translation & other adjustments | 261 |
Restructuring liability, end of period | 2,836 |
Other Activities [Member] | Other Accrued Liabilities [Member] | |
Activity for Restructuring and Reinvestment Program liability [Roll Forward] | |
Restructuring liability, end of period | 1,200 |
Other Activities [Member] | Other Long-Term Liabilities [Member] | |
Activity for Restructuring and Reinvestment Program liability [Roll Forward] | |
Restructuring liability, end of period | $ 1,600 |
Segment Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
|||||
Segment information [Abstract] | ||||||||
Revenue | $ 449,367 | $ 455,675 | $ 1,308,890 | $ 1,318,850 | ||||
Contribution to Profit | 90,811 | 112,551 | [1] | 270,292 | 294,883 | [1] | ||
Corporate Expenses | (40,465) | (47,157) | (126,331) | (136,131) | ||||
Operating Income | 50,346 | 65,394 | [1] | 143,961 | 158,752 | [1] | ||
Net benefits | (1,904) | (1,762) | (5,823) | (5,144) | ||||
Operating and Administrative Expenses [Member] | ASU 2017-07 Member] | ||||||||
Segment information [Abstract] | ||||||||
Net benefits | 2,000 | 6,000 | ||||||
Interest and Other Income [Member] | ASU 2017-07 Member] | ||||||||
Segment information [Abstract] | ||||||||
Net benefits | 2,100 | (2,000) | 6,600 | (6,000) | ||||
Research [Member] | Interest and Other Income [Member] | ASU 2017-07 Member] | ||||||||
Segment information [Abstract] | ||||||||
Net benefits | (1,000) | (3,100) | ||||||
Publishing [Member] | Interest and Other Income [Member] | ASU 2017-07 Member] | ||||||||
Segment information [Abstract] | ||||||||
Net benefits | (600) | (1,700) | ||||||
Operating Segments [Member] | Research [Member] | ||||||||
Segment information [Abstract] | ||||||||
Revenue | 226,353 | 223,489 | 679,990 | 675,986 | ||||
Contribution to Profit | 60,532 | 58,253 | 176,565 | 188,861 | ||||
Operating Segments [Member] | Publishing [Member] | ||||||||
Segment information [Abstract] | ||||||||
Revenue | 145,635 | 170,244 | 428,055 | 466,507 | ||||
Contribution to Profit | 33,706 | 47,895 | 86,881 | 94,278 | ||||
Operating Segments [Member] | Solutions [Member] | ||||||||
Segment information [Abstract] | ||||||||
Revenue | 77,379 | 61,942 | 200,845 | 176,357 | ||||
Contribution to Profit | $ (3,427) | 6,403 | $ 6,846 | 11,744 | ||||
Corporate [Member] | Interest and Other Income [Member] | ASU 2017-07 Member] | ||||||||
Segment information [Abstract] | ||||||||
Net benefits | $ (400) | $ (1,200) | ||||||
|
Inventories (Details) - USD ($) $ in Thousands |
Jan. 31, 2019 |
Apr. 30, 2018 |
---|---|---|
Inventories [Abstract] | ||
Finished goods | $ 31,777 | $ 36,503 |
Work-in-process | 2,384 | 2,139 |
Paper and other materials | 611 | 550 |
Gross inventory | 34,772 | 39,192 |
Inventory value of estimated sales returns | 5,046 | 4,626 |
LIFO reserve | (4,554) | (4,329) |
Total inventories | $ 35,264 | $ 39,489 |
Goodwill and Intangible Assets, Goodwill (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jan. 31, 2019 |
Apr. 30, 2018 |
||||
Goodwill [Roll Forward] | |||||
Beginning balance | $ 1,019,801 | ||||
Acquisition | [1] | 109,139 | |||
Foreign translation adjustment | (25,718) | ||||
Ending balance | 1,103,222 | $ 1,019,801 | |||
Research [Member] | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 463,419 | ||||
Acquisition | [1] | 0 | |||
Foreign translation adjustment | (18,338) | ||||
Ending balance | 445,081 | 463,419 | |||
Publishing [Member] | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 283,851 | ||||
Acquisition | [1] | 0 | |||
Foreign translation adjustment | (518) | (11,600) | |||
Ending balance | 283,333 | 283,851 | |||
Solutions [Member] | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 272,531 | ||||
Acquisition | [1] | 109,139 | |||
Foreign translation adjustment | (6,862) | 11,600 | |||
Ending balance | $ 374,808 | $ 272,531 | |||
|
Goodwill and Intangible Assets, Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jul. 31, 2017 |
Jan. 31, 2019 |
Jan. 31, 2018 |
Apr. 30, 2018 |
||||
Intangible Assets with Determinable Lives, net [Abstract] | |||||||
Total | $ 671,441 | $ 615,244 | |||||
Intangible Assets with Indefinite Lives [Abstract] | |||||||
Total | 221,162 | 232,827 | |||||
Intangible assets (excluding goodwill) [Abstract] | |||||||
Total Intangible Assets, Net | 892,603 | 848,071 | |||||
Impairment charges | 0 | $ 3,600 | |||||
Brands and Trademarks [Member] | |||||||
Intangible Assets with Indefinite Lives [Abstract] | |||||||
Total | 132,912 | 138,589 | |||||
Content and Publishing Rights [Member] | |||||||
Intangible Assets with Indefinite Lives [Abstract] | |||||||
Total | 88,250 | 94,238 | |||||
Brands [Member] | |||||||
Intangible assets (excluding goodwill) [Abstract] | |||||||
Impairment charges | $ 3,600 | ||||||
Fair value of intangible assets | $ 1,200 | ||||||
Content and Publishing Rights [Member] | |||||||
Intangible Assets with Determinable Lives, net [Abstract] | |||||||
Total | 405,426 | [1] | 436,760 | ||||
Customer Relationships [Member] | |||||||
Intangible Assets with Determinable Lives, net [Abstract] | |||||||
Total | 251,855 | [1] | 161,729 | ||||
Brands and Trademarks [Member] | |||||||
Intangible Assets with Determinable Lives, net [Abstract] | |||||||
Total | 13,663 | 16,100 | |||||
Covenants Not to Compete [Member] | |||||||
Intangible Assets with Determinable Lives, net [Abstract] | |||||||
Total | $ 497 | $ 655 | |||||
|
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 4 Months Ended | 8 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
Apr. 30, 2018 |
Dec. 31, 2017 |
Jan. 31, 2019 |
Jan. 31, 2018 |
|
Effective income tax rate [Abstract] | ||||||
Effective tax rate as reported | 22.70% | (18.10%) | 22.60% | 4.00% | ||
The Tax Act [Abstract] | ||||||
Provisional estimated net tax benefit related to the Tax Act | $ 25 | $ 25 | ||||
Effective Tax Rate excluding the impact of non-recurring items from the Tax Act | 24.80% | 21.40% | ||||
Federal statutory tax rate | 21.00% | 35.00% |
Retirement Plans (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
|
Defined benefit plans, net pension expense (income) [Abstract] | ||||
Service cost | $ 226 | $ 243 | $ 688 | $ 715 |
Interest cost | 6,103 | 6,407 | 18,484 | 19,005 |
Expected return on plan assets | (9,638) | (9,924) | (29,260) | (29,363) |
Net amortization of prior service cost | (24) | (24) | (72) | (72) |
Unrecognized net actuarial loss | 1,429 | 1,536 | 4,337 | 4,550 |
Pension plan actuarial loss | 0 | 0 | 0 | 21 |
Net pension income | (1,904) | (1,762) | (5,823) | (5,144) |
Employer defined benefit pension plan contributions | 15,800 | 2,800 | 22,900 | 8,400 |
Employer discretionary contribution | 10,000 | 10,000 | ||
Expense for employer defined contribution plans | $ 2,600 | $ 3,400 | $ 9,900 | $ 11,300 |
Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
Jan. 31, 2019 |
Jan. 31, 2018 |
Apr. 30, 2018 |
|
Derivative Instruments and Hedging Activities [Abstract] | |||||
Variable rate loans outstanding | $ 633.5 | $ 633.5 | |||
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Expense [Member] | |||||
Derivative Instruments and Hedging Activities [Abstract] | |||||
Net gain (losses) reclassified from Accumulated Other Comprehensive Loss | 1.3 | $ 0.4 | 3.4 | $ 0.8 | |
Interest Rate Swaps [Member] | Recurring [Member] | Level 2 [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||||
Derivative Instruments and Hedging Activities [Abstract] | |||||
Assets fair value of derivative instrument | $ 1.8 | $ 1.8 | $ 5.1 | ||
Interest Rate Swaps [Member] | April 2016 Interest Rate Swap (Variable Rate Loans) [Member] | LIBOR [Member] | |||||
Derivative Instruments and Hedging Activities [Abstract] | |||||
Inception date | Apr. 04, 2016 | ||||
Fixed interest rate to be paid | 0.92% | 0.92% | |||
Term of variable rate | 1 month | ||||
Term of derivative instrument | 3 years | ||||
Expiration date | May 15, 2019 | ||||
Notional amount of derivative liability | $ 350.0 | $ 350.0 | $ 350.0 |
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