Employee Benefit Plans

3 Months Ended

Aug. 31, 2019

EMPLOYEE BENEFIT PLANS

The following table sets forth the components of net periodic benefit (cost) for the periods indicated under the Company’s defined benefit pension plan of Scholastic Ltd., an indirect subsidiary of Scholastic Corporation located in the United Kingdom (the “UK Pension Plan”) and the postretirement benefits plan, consisting of certain healthcare and life insurance benefits provided by the Company to its eligible retired United States-based employees (the “Postretirement Benefits”).



	UK Pension Plan				Postretirement Benefits
	Three months ended August 31,				Three months ended August 31,
	2019		2018		2019	2018
Components of net periodic (benefit) cost:
Service cost	$0.0		$0.0		$0.0	$0.0
Interest cost	0.2		0.2		0.2	0.2
Expected return on assets	(0.2	)	(0.2	)	—	—
Net amortization of prior service credit	—		—		0.0	—
Amortization of (gains) losses	0.2		0.2		—	—
Net periodic (benefit) cost	$0.2		$0.2		$0.2	$0.2

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, 2019, 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, 2020.

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 established 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 Benefits 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 future working lifetime for active plan participants of approximately 3.2 years.