Discontinued Operations

9 Months Ended

Feb. 28, 2017

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

The Company continuously evaluates its portfolio of businesses for both impairment and economic viability, as well as for possible strategic dispositions. The Company monitors the expected cash proceeds to be realized from the disposition of discontinued operations’ assets, and adjusts asset values accordingly.

During the nine month period ended February 28, 2017, the Company did not dispose of any new components of the business that would meet the criteria for discontinued operations reporting.

On May 29, 2015, the Company completed the sale of substantially all of the assets comprising its former educational technology and services (“Ed Tech”) business and categorized this business as a discontinued operation. In connection with the sale of the Ed Tech business to the purchaser, the Company entered into a transition services agreement whereby the Company provided administrative, distribution and other services to the purchaser. Transition service fees under this agreement were recorded as a reduction to Selling, general and administrative expenses. All services under the transition services agreement were terminated on August 1, 2016.

As of February 28, 2017, the Company had adequately fulfilled all service requirements and there were no hold backs from the escrow for breaches of representations and warranties or other claims.

The following table summarizes the operating results of the discontinued operations for the periods indicated:

	Three months ended					Nine months ended
	February 28,		February 29,			February 28,		February 29,
	2017		2016			2017		2016
Revenues	$	0.1	$	0.4		$	0.3	$	0.7
Operating costs and expenses	0.0		0.6			0.4		2.2
Interest income (expense)	0.1		0.0			0.1		0.1
Gain (loss) on sale (1)	—		(2.9		)	—		(2.9		)
Earnings (loss) before income taxes	$	0.2	$	(3.1	)	$	0.0	$	(4.3	)
Provision (benefit) for income taxes	0.1		(1.3		)	0.0		(1.7		)
Earnings (loss) from discontinued operations, net of tax	$	0.1	$	(1.8	)	$	0.0	$	(2.6	)

(1) For the three and nine months ended February 29, 2016, the Company recognized a pretax loss of $2.9 related to the final adjustment to the working capital estimate from the sale of the Ed Tech business.

The following table sets forth the assets and liabilities of the discontinued operations included in the condensed consolidated balance sheets of the Company:

	February 28, 2017		May 31, 2016		February 29, 2016
Accounts receivable, net	$	0.1	$	0.0	$	0.1
Prepaid expenses and other current assets	0.3		0.5		0.5
Current assets of discontinued operations	$	0.4	$	0.5	$	0.6
Accounts payable	—		0.0		0.0
Accrued royalties	0.0		0.0		0.1
Deferred revenue	—		—		0.1
Other accrued expenses	0.1		1.2		1.3
Current liabilities of discontinued operations	$	0.1	$	1.2	$	1.5

As of February 28, 2017, May 31, 2016 and February 29, 2016, assets and liabilities of discontinued operations primarily related to insignificant continuing cash flows from passive activities.