Employee Benefit Plans

9 Months Ended

Feb. 29, 2020

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”), for the periods indicated:



	UK Pension Plan				Postretirement Benefits
	Three months ended				Three months ended
	February 29,		February 28,		February 29,	February 28,
	2020		2019		2020	2019
Components of net periodic benefit cost:
Service cost	—		—		—	—
Interest cost	0.2		0.3		0.2	0.2
Expected return on assets	(0.3	)	(0.3	)	—	—
Net amortization of prior service (credit) cost	0.0		—		0.0	0.0
Amortization of (gains) losses	0.3		0.2		—	—
Total	$0.2		$0.2		$0.2	$0.2



	UK Pension Plan		Postretirement Benefits
	Nine months ended		Nine months ended
	February 29,	February 28,	February 29,	February 28,
	2020	2019	2020	2019
Components of net periodic benefit cost:
Service cost	—	—	—	$0.0
Interest cost	0.6	0.8	0.5	0.6
Expected return on assets	(0.8)	(0.8)	—	—
Net amortization of prior service (credit) cost	0.0	—	(0.1)	(0.1)
Amortization of (gains) losses	0.8	0.6	—	—
Total	$0.6	$0.6	$0.4	$0.5

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 29, 2020, the Company contributed $0.9 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. 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 lifetime of plan participants of approximately 13.0 years.