Segment Information

3 Months Ended

Aug. 31, 2019

SEGMENT INFORMATION

The Company categorizes its businesses into three reportable segments: Children’s Book Publishing and Distribution, Education 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, print and digital 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 three 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.

The following table sets forth information for the Company's segments for the fiscal quarters ended August 31, 2019 and 2018:



	Children’s Book Publishing & Distribution		Education		Overhead ⁽¹⁾		Total Domestic		International		Total
Three months ended August 31, 2019
Revenues	$109.6		$48.4		$0.0		$158.0		$74.6		$232.6
Bad debt expense	0.5		0.0		—		0.5		1.1		1.6
Depreciation and amortization ⁽²⁾	6.7		3.1		11.0		20.8		1.7		22.5
Segment operating income (loss)	(41.7	)	(13.4	)	(28.6	)	(83.7	)	(3.7	)	(87.4	)
Segment assets at August 31, 2019	651.9		198.7		808.4		1,659.0		285.6		1,944.6
Goodwill at August 31, 2019	46.8		68.2		—		115.0		10.0		125.0
Expenditures for other noncurrent assets⁽³⁾	14.0		4.6		6.9		25.5		7.6		33.1
Other noncurrent assets at August 31, 2019 ⁽³⁾	219.2		120.0		520.0		859.2		93.0		952.2
Three months ended August 31, 2018
Revenues	$95.7		$47.9		$0.0		$143.6		$74.8		$218.4
Bad debt expense	0.8		0.0		—		0.8		0.6		1.4
Depreciation and amortization ⁽²⁾	5.7		2.0		9.9		17.6		1.6		19.2
Segment operating income (loss)	(46.0	)	(14.9	)	(20.9	)	(81.8	)	(2.0	)	(83.8	)
Segment assets at August 31, 2018	554.6		182.9		884.2		1,621.7		277.9		1,899.6
Goodwill at August 31, 2018	40.9		68.2		—		109.1		10.0		119.1
Expenditures for other noncurrent assets ⁽³⁾	10.8		5.1		25.5		41.4		4.3		45.7
Other noncurrent assets at August 31, 2018 ⁽³⁾	151.5		106.9		499.7		758.1		76.2		834.3

(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, its facility located in Connecticut and certain technology assets.


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

(3)

Other noncurrent assets include property, plant and equipment, prepublication assets, production assets, royalty advances, goodwill, intangible assets and investments. Expenditures for other noncurrent assets for the International reportable segment include expenditures for long-lived assets of $5.7 and $2.8 for the three months ended August 31, 2019 and August 31, 2018, respectively. Other noncurrent assets for the International reportable segment include long-lived assets of $64.5 and $37.0 as of August 31, 2019 and August 31, 2018, respectively.