SEGMENT INFORMATION

The Company categorizes its businesses into three reportable segments: Children’s Book Publishing and Distribution and Education, which comprise the Company's domestic operations; and International.


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


•	Education includes the publication and distribution to schools and libraries of children’s books, classroom magazines, supplemental and core classroom materials and related support services, 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.


•	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.



	Children’s Book Publishing & Distribution			Education			Overhead⁽¹⁾			Total Domestic			International			Total
Three months ended February 28, 2018
Revenues	$	199.4		$	61.7		$	—		$	261.1		$	83.6		$	344.7
Bad debt	0.7			0.4			—			1.1			0.6			1.7
Depreciation and amortization ⁽²⁾	5.4			2.3			7.5			15.2			1.8			17.0
Asset impairments	—			—			4.3			4.3			—			4.3
Segment operating income (loss)	(0.9		)	(0.2		)	(23.3		)	(24.4		)	0.7			(23.7		)
Expenditures for other non-current assets⁽³⁾	17.2			5.0			29.7			51.9			5.7			57.6
Three months ended February 28, 2017
Revenues	$	199.0		$	60.1		$	—		$	259.1		$	77.1		$	336.2
Bad debt	0.1			0.4			—			0.5			1.1			1.6
Depreciation and amortization ⁽²⁾	5.3			2.1			6.0			13.4			1.6			15.0
Segment operating income (loss)	6.3			3.5			(30.8		)	(21.0		)	(3.7		)	(24.7		)
Expenditures for other non-current assets ⁽³⁾	14.9			2.8			13.9			31.6			2.5			34.1



	Children’s Book Publishing & Distribution		Education			Overhead ⁽¹⁾			Total Domestic			International		Total
Nine months ended February 28, 2018
Revenues	$	678.0	$	177.6		$	—		$	855.6		$	276.6	$	1,132.2
Bad debt expense	3.4		1.4						4.8			3.1		7.9
Depreciation and amortization ⁽²⁾	15.8		6.6			20.7			43.1			5.2		48.3
Asset impairments	—		—			11.0			11.0			—		11.0
Segment operating income (loss)	55.3		(8.9		)	(77.3		)	(30.9		)	12.6		(18.3		)
Segment assets at February 28, 2018	494.8		179.1			886.1			1,560.0			273.7		1,833.7
Goodwill at February 28, 2018	40.9		68.2			—			109.1			10.0		119.1
Expenditures for other non-current assets⁽³⁾	44.9		12.5			78.4			135.8			10.7		146.5
Other non-current assets at February 28, 2018 ⁽³⁾	152.0		99.7			466.5			718.2			75.5		793.7
Nine months ended February 28, 2017
Revenues	$	769.3	$	186.4		$	—		$	955.7		$	286.3	$	1,242.0
Bad debt expense	3.3		0.9			—			4.2			5.1		9.3
Depreciation and amortization ⁽²⁾	16.6		6.2			17.4			40.2			5.6		45.8
Segment operating income (loss)	91.2		7.8			(91.3		)	7.7			17.2		24.9
Segment assets at February 28, 2017	478.4		158.8			948.7			1,585.9			261.3		1,847.2
Goodwill at February 28, 2017	40.9		65.4			—			106.3			9.9		116.2
Expenditures for other non-current assets⁽³⁾	52.2		7.8			28.5			88.5			8.5		97.0
Other non-current assets at February 28, 2017 ⁽³⁾	146.9		83.7			398.6			629.2			66.4		695.6

(1)

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.


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

(3)

Other non-current assets include property, plant and equipment, prepublication assets, production assets, royalty advances, goodwill, intangible assets and investments. Expenditures for other non-current assets for the International reportable segment include expenditures for long-lived assets of $3.6 and $1.5 for the three months and $6.6 and $4.8 for the nine months ended February 28, 2018 and February 28, 2017, respectively. Other non-current assets for the International reportable segment include long-lived assets of $35.8 and $33.4 as of February 28, 2018 and February 28, 2017, respectively.