Asset Write Down

6 Months Ended

Nov. 30, 2025

Asset Impairment Charges [Abstract]

Asset Write Down

ASSET WRITE DOWN

During the first quarter of fiscal 2026, the Company identified certain assets that were not recoverable. The estimated future cash flows related to these assets were impacted by the Company's decision to no longer sell the related product. The assets consisted of capitalized costs related to cloud computing arrangements and were included within the Children's Book Publishing and Distribution segment. Accordingly, the Company

recognized an impairment charge of $0.8 which was included in Asset impairments and write downs within the Company's Condensed Consolidated Statement of Operations for the three months ended August 31, 2025.

During the second quarter of fiscal 2026, the Company identified assets that were not recoverable as the Company ceased development activities for certain education products and film and television programs. The related assets consisted of prepublication costs of $3.4 included in the Education Solutions segment and investment in film and television programs and other production costs of $4.9 included in the Entertainment segment. In addition, the Company identified indicators of impairment related to its 12% ownership interest in a children's book publishing business located in the UK as the business is being wound down. This investment had a carrying value of $0.3 and was included in the Entertainment segment. The Company performed an assessment and concluded the investment was not recoverable. Accordingly, the Company recognized total impairment charges of $8.6 which were included in Asset impairments and write downs within the Company's Condensed Consolidated Statement of Operations for the three months ended November 30, 2025. The related impact of the impairments was a loss per basic and diluted share of Class A and Common Stock of $0.26 and $0.25, respectively, in the three months ended November 30, 2025.

For the six months ended November 30, 2025, the related impact of the total impairment charges of $9.4 was a loss per basic and diluted share of Class A and Common Stock of $0.28.