Employee Benefit Plans

The following table sets forth components of the net periodic benefit costs for the periods indicated under the Company’s cash balance retirement plan for its United States employees meeting certain eligibility requirements (the “U.S. Pension Plan”) and the defined benefit pension plan of Scholastic Ltd., an indirect subsidiary of Scholastic Corporation located in the United Kingdom (the “UK Pension Plan” and, together with the U.S. Pension Plan, the “Pension Plans”). Also included are the post-retirement benefits, consisting of certain healthcare and life insurance benefits provided by the Company to its eligible retired United States-based employees (the “Post-Retirement Benefits”). The Pension Plans and Post-Retirement Benefits include participants associated with both continuing operations and discontinued operations.



	Pension Plans Three months ended November 30,						Post-Retirement Benefits Three months ended November 30,
	2014			2013			2014		2013
Components of net periodic benefit (credit) cost:
Service cost	$	—		$	—		$	0.0	$	0.0
Interest cost	1.6			1.8			0.3		0.3
Expected return on assets	(2.2		)	(3.2		)	—		—
Net amortization of prior service credit	—			—			(0.0)		(0.0		)
Benefit cost of settlement event	3.7			—			—		—
Amortization of (gain) loss	0.4			0.5			0.3		0.6
Net periodic benefit (credit) cost	$	3.5		$	(0.9	)	$	0.6	$	0.9



	Pension Plans Six months ended November 30,						Post-Retirement Benefits Six months ended November 30,
	2014			2013			2014			2013
Components of net periodic benefit (credit) cost:
Service cost	$	—		$	—		$	0.0		$	0.0
Interest cost	3.4			3.6			0.6			0.7
Expected return on assets	(4.7		)	(6.3		)	—			—
Net amortization of prior service credit	—			—			(0.1		)	(0.1		)
Benefit cost of settlement event	3.7			—			—			—
Amortization of (gain) loss	0.7			0.9			0.7			1.2
Net periodic benefit (credit) cost	$	3.1		$	(1.8	)	$	1.2		$	1.8

The Company’s funding practice with respect to the Pension Plans is to contribute on an annual basis at least the minimum amounts required by applicable laws. For the six months ended November 30, 2014, the Company made no contribution to the U.S. Pension Plan and contributed $0.7 to the UK Pension Plan.

The Company expects, based on actuarial calculations, to contribute cash of approximately $1.4 to the Pension Plans for the fiscal year ending May 31, 2015.

During fiscal 2014, the U.S. Pension Plan's funding status was sufficient to allow a participant to receive a lump sum benefit payment. In the current fiscal year, certain participants elected to receive a lump sum benefit payment. Under certain circumstances, such lump sum payments must be accounted for as a settlement of the related pension obligation when paid. Accordingly, in the quarter ended November 30, 2014, the Company recorded a pretax settlement charge of $3.7 related to net unrecognized pension benefit costs in respect of lump sum benefit payments made in such quarter.