EMPLOYEE BENEFIT PLANS

The following table sets forth the components of net periodic benefit (cost) for the periods indicated under the Company’s terminated 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 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 February 28,					Three months ended February 28,						Three months ended February 28,
	2019		2018			2019			2018			2019		2018
Components of net periodic (benefit) cost:
Service cost	$	—	$	—		$	—		$	—		$	0.0	$	0.0
Interest cost	—		0.5			0.3			0.3			0.2		0.2
Expected return on assets	—		(1.1		)	(0.3		)	(0.3		)	—		—
Net amortization of prior service credit	—		—			—			—			0.0		—
Benefit cost of settlement event	—		39.6			—			—			—		—
Amortization of (gains) losses	—		0.3			0.2			0.3			—		0.0
Net periodic (benefit) cost	$	—	$	39.3		$	0.2		$	0.3		$	0.2	$	0.2



	U.S. Pension Plan					UK Pension Plan						Postretirement Benefits
	Nine months ended February 28,					Nine months ended February 28,						Nine months ended February 28,
	2019		2018			2019			2018			2019			2018
Components of net periodic (benefit) cost:
Service cost	$	—	$	—		$	—		$	—		$	0.0		$	0.0
Interest cost	—		1.9			0.8			0.8			0.6			0.7
Expected return on assets	—		(4.0		)	(0.8		)	(0.8		)	—			—
Net amortization of prior service credit	—		—			—			—			(0.1		)	—
Benefit cost of settlement event	—		55.0			—			—			—			—
Amortization of (gains) losses	—		0.9			0.6			0.9			—			0.0
Net periodic (benefit) cost	$	—	$	53.8		$	0.6		$	0.9		$	0.5		$	0.7

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, and the U.S. Pension Plan was terminated in fiscal 2018. During fiscal 2018, the U.S. Pension Plan made $37.8 of lump sum benefit payments to vested plan participants and purchased group annuity contracts for the remaining U.S. Pension Plan vested participants for a total cost of $86.3, paid to the respective insurers. As a result of the termination, pretax plan settlement charges of $55.0 were recognized for the nine months ended February 28, 2018. In December 2018, the U.S. Pension Plan disbursed the remaining plan assets as a transfer to eligible 401(k) plan participants’ accounts resulting in the final resolution of the plan.

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 nine months ended February 28, 2019, the Company contributed $0.8 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.

In the second quarter of fiscal 2019, the Company announced a change in benefits for certain postretirement benefit plan participants. Beginning January 1, 2019, the plan will establish Health Reimbursement Accounts (HRAs) to provide these participants with additional flexibility to choose healthcare options based on individual needs. As a result of this change, the Company remeasured its Postretirement Benefit obligation as of November 30, 2018, and recognized a reduction of $2.7 to its benefit obligation and a reduction to its accumulated comprehensive loss of $2.7 in the second quarter of fiscal 2019. The related prior service credit will be amortized as a Component of net periodic benefit (cost) over the average remaining life expectancy of plan participants of approximately 13 years.