EMPLOYEE BENEFIT PLANS

The following table sets forth components of the net periodic benefit (cost) 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 postretirement benefits, consisting of certain healthcare and life insurance benefits provided by the Company to its eligible retired United States-based employees (the “Postretirement Benefits”).



	U.S. Pension Plan					UK Pension Plan						Postretirement Benefits
	Three months ended August 31,					Three months ended August 31,						Three months ended August 31,
	2018		2017			2018			2017			2018			2017
Components of net periodic benefit (cost):
Service cost	$	—	$	—		$	—		$	—		$	0.0		$	0.0
Interest cost	—		(0.7		)	(0.2		)	(0.3		)	(0.2		)	(0.3		)
Expected return on assets	—		1.5			0.2			0.3			—			—
Amortization of (gain) loss	—		(0.3		)	(0.2		)	(0.3		)	—			0.0
Net periodic benefit (cost)	$	—	$	0.5		$	(0.2	)	$	(0.3	)	$	(0.2	)	$	(0.3	)

As discussed below, the U.S. Pension Plan has been terminated. The Company’s funding practice with respect to the UK Pension Plan is to contribute on an annual basis at least the minimum amounts required by applicable law. For the three months ended August 31, 2018, the Company contributed $0.3 to the UK Pension Plan. The Company expects, based on actuarial calculations, to contribute cash of approximately $1.1 to the UK Pension Plan for the fiscal year ending May 31, 2019.

On July 20, 2016, the Board approved the termination of the U.S. Pension Plan, in which all benefit accruals were previously frozen as of June 1, 2009. Based on the U.S. Pension Plan’s funded status and the frozen benefit, it was determined that the on-going costs of maintaining the U.S. Pension Plan were growing at a greater rate than the benefit delivered to the Company’s employees and former employees.

During fiscal 2018, the U.S. Pension Plan made $37.8 of lump sum benefit payments to vested plan participants. On February 14, 2018, the Company completed the final step in the distribution of the U.S. Pension Plan assets to participants by purchasing group annuity contracts for the remaining U.S. Pension Plan participants. The total cost of these contracts was $86.3, paid to the respective insurers on February 21, 2018, and resulted in a final settlement charge.