Segment Information

12 Months Ended

May 31, 2020

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company categorizes its businesses into three reportable segments: Children’s Book Publishing and Distribution and Education, which comprise the Company's domestic operations, 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, supplemental and core classroom materials and programs 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 three fiscal years ended May 31:

	Children's Book Publishing & Distribution		Education		Overhead (1)			Total Domestic			International			Total
2020
Revenues	$	875.4	$	287.3	$	—		$	1,162.7		$	324.4		$	1,487.1
Bad debts		5.8		2.5		—			8.3			7.3			15.6
Depreciation and amortization(2)		26.5		13.0		43.4			82.9			7.3			90.2
Asset impairments and write downs		—		—		40.0			40.0			0.6			40.6
Segment operating income (loss)		23.6		29.9		(135.5	)		(82.0	)		(6.5	)		(88.5	)
Segment assets at May 31, 2020		523.7		223.4		1,012.7			1,759.8			273.8			2,033.6
Goodwill at May 31, 2020		46.9		68.1		—			115.0			9.9			124.9
Expenditures for other non-current assets(3)		49.5		20.1		49.0			118.6			22.0			140.6
Other non-current assets at May 31, 2020(3)		169.6		123.8		499.8			793.2			74.6			867.8
2019
Revenues	$	990.3	$	297.4	$	—		$	1,287.7		$	366.2		$	1,653.9
Bad debts		3.8		1.4		—			5.2			1.8			7.0
Depreciation and amortization(2)		23.7		9.5		41.7			74.9			6.8			81.7
Asset impairments and write downs		—		—		0.9			0.9			—			0.9
Segment operating income (loss)		82.9		30.6		(102.3	)		11.2			13.8			25.0
Segment assets at May 31, 2019		523.4		214.7		887.6			1,625.7			252.8			1,878.5
Goodwill at May 31, 2019		47.0		68.2		—			115.2			10.0			125.2
Expenditures for other non-current assets(3)		71.4		22.6		77.6			171.6			13.5			185.1
Other non-current assets at May 31, 2019(3)		175.0		116.3		507.7			799.0			65.3			864.3
2018
Revenues	$	970.2	$	288.6	$	—		$	1,258.8		$	369.6		$	1,628.4
Bad debts		4.4		1.4		—			5.8			3.7			9.5
Depreciation and amortization(2)		23.3		7.4		29.1			59.8			6.2			66.0
Asset impairments and write downs		0.2		—		11.0			11.2			—			11.2
Segment operating income (loss)		105.8		33.9		(101.8	)		37.9			17.7			55.6
Segment assets at May 31, 2018		434.8		202.4		927.9			1,565.1			260.3			1,825.4
Goodwill at May 31, 2018		40.9		68.3		—			109.2			10.0			119.2
Expenditures for other non-current assets(3)		58.6		19.2		104.5			182.3			15.3			197.6
Other non-current assets at May 31, 2018(3)		151.2		101.8		492.7			745.7			74.3			820.0

(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 and its facility located in Connecticut.

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

(3)

Other non-current assets include property, plant and equipment, prepublication assets, production assets, cloud computing costs, royalty advances, goodwill, intangible assets and investments. Expenditures for other non-current assets for the International reportable segment include expenditures for long-lived assets of $17.3, $8.2 and $10.0 for the fiscal years ended May 31, 2020, 2019 and 2018, respectively. Other non-current assets for the International reportable segment include long-lived assets of $43.8, $35.9 and $36.8 at May 31, 2020, 2019 and 2018, respectively.