Segment Information

12 Months Ended

May 31, 2014

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company categorizes its businesses into five reportable segments: Children’s Book Publishing and Distribution; Educational Technology and Services; Classroom and Supplemental Materials Publishing; Media, Licensing and Advertising; and International. This classification reflects the nature of products and services consistent with the method by which the Company’s chief operating decision-maker assesses operating performance and allocates resources.

• Children’s Book Publishing and Distribution operates as an integrated business which includes the publication and distribution of children’s books, media and interactive products in the United States through school-based book clubs and book fairs and the trade channel. This segment is comprised of three operating segments.

• Educational Technology and Services includes the production and distribution to schools of curriculum-based learning technology and materials for grades pre-kindergarten to 12 in the United States, together with related implementation and assessment services and school consulting services. This segment is comprised of one operating segment.

• Classroom and Supplemental Materials Publishing includes the publication and distribution to schools and libraries of children’s books, classroom magazines, supplemental classroom materials and print and on-line reference and non-fiction products for grades pre-kindergarten to 12 in the United States. This segment is comprised of two operating segments.

• Media, Licensing and Advertising includes the production and/or distribution of digital media, consumer promotions and merchandising and advertising revenue, including sponsorship programs. This segment is comprised of two operating segments.

• International includes the publication and distribution of products and services outside the United States by the Company’s international operations, and its export and foreign rights businesses. This segment is comprised of three operating segments.

The following table sets forth information for the Company’s segments for the three fiscal years ended May 31:

	Children's Book Publishing & Distribution (1)		Educational Technology & Services		Classroom & Supplemental Materials Publishing		Media, Licensing & Advertising (1)			Overhead (1) (2)			Total Domestic		International		Total
2014
Revenues	$	873.5	$	248.7	$	229.6	$	56.2		$	—		$	1,408.0	$	414.3	$	1,822.3
Bad debts	2.6		0.9		1.6		0.1			—			5.2		3.0		8.2
Depreciation and   amortization (3)	31.9		28.0		10.5		5.3			39.0			114.7		7.1		121.8
Asset Impairments	28.0		—		—		—			—			28.0		—		28.0
Segment operating income   (loss)	22.8		39.6		37.5		(0.7		)	(66.9		)	32.3		30.8		63.1
Segment assets at May 31,   2014	371.3		173.7		166.8		30.7			532.9			1,275.4		252.7		1,528.1
Goodwill at May 31, 2014	40.9		22.7		65.4		5.4			—			134.4		10.1		144.5
Expenditures for long-lived   assets including royalty    advances	43.4		30.7		10.2		8.1			269.6			362.0		11.7		373.7
Long-lived assets at May    31, 2014	135.3		119.0		90.1		14.1			406.1			764.6		63.6		828.2
2013
Revenues	$	846.9	$	227.7	$	218.0	$	58.7		$	—		$	1,351.3	$	441.1	$	1,792.4
Bad debts	1.8		1.1		1.4		0.1			—			4.4		2.4		6.8
Depreciation and    amortization (3)	31.5		22.7		9.4		3.0			41.6			108.2		7.2		115.4
Segment operating income (loss)	24.5		29.5		29.6		4.7			(60.2		)	28.1		39.8		67.9
Segment assets at May 31, 2013	407.5		170.8		168.6		26.9			402.1			1,175.9		264.7		1,440.6
Goodwill at May 31, 2013	54.3		22.7		65.4		5.4			—			147.8		10.1		157.9
Expenditures for long-lived assets including royalty advances	52.3		40.3		10.9		3.7			33.3			140.5		13.4		153.9
Long-lived assets at May 31, 2013	165.3		116.5		91.4		12.0			236.5			621.7		68.0		689.7
2012
Revenues	$	1,111.3	$	254.7	$	208.2	$	75.3		$	—		$	1,649.5	$	489.6	$	2,139.1
Bad debts	6.4		0.7		1.9		0.1			—			9.1		3.2		12.3
Depreciation and   amortization (3)	33.1		22.2		7.7		12.8			39.0			114.8		9.1		123.9
Asset Impairments	0.5		—		—		—			6.2			6.7		0.3		7.0
Segment operating income   (loss)	152.2		49.2		18.3		(4.9		)	(87.1		)	127.7		57.6		185.3
Segment assets at May 31,   2012	543.5		168.5		163.6		38.1			438.6			1,352.3		310.3		1,662.6
Goodwill at May 31, 2012	54.3		22.7		65.4		5.4			—			147.8		9.9		157.7
Expenditures for long-lived   assets including royalty     advances	44.4		26.2		17.9		6.3			37.9			132.7		13.2		145.9
Long-lived assets at May   31, 2012	167.5		101.1		90.3		11.6			246.7			617.2		67.1		684.3

(1) As discussed in Note 3, “Discontinued Operations,” the Company closed or sold several operations during the first quarter of fiscal 2012 and the fourth quarter of fiscal 2013. All of these businesses are classified as discontinued operations in the Company’s financial statements and, as such, are not reflected in this table.

(2) Overhead includes all domestic corporate amounts not allocated to segments, including expenses and costs related to the management of corporate assets. Unallocated assets are principally comprised of deferred income taxes and property, plant and equipment related to the Company’s headquarters in the metropolitan New York area, its fulfillment and distribution facilities located in Missouri and its facility located in Connecticut. Overhead also includes amounts previously allocated to the Media, Licensing and Advertising segment for the Company’s direct-to-home toy catalog business that was discontinued in the first quarter of fiscal 2012 and amounts previously allocated to the Children’s Book Publishing and Distribution segment for the computer club business that was discontinued in the fourth quarter of fiscal 2013.

(3) Includes depreciation of property, plant and equipment and amortization of intangible assets and prepublication and production costs.