SEGMENT INFORMATION

12 Months Ended

May 31, 2011

Segment Reporting Disclosure [Text Block]

4. SEGMENT INFORMATION

The Company categorizes its businesses into four reportable segments: Children’s Book Publishing and Distribution; Educational Publishing; Media, Licensing and Advertising (which collectively represent the Company’s domestic operations); and International. This classification reflects the nature of products and services consistent with the method by which the Company’s chief operating decision-maker assesses operating performance and allocates resources.

• Children’s Book Publishing and Distribution operates as an integrated business which includes the publication and distribution of children’s books in the United States through school-based book clubs, book fairs, ecommerce and the trade channel. This segment is comprised of three operating segments.

• Educational Publishing includes the production and/or publication and distribution to schools and libraries of educational technology products and services, curriculum materials, children’s books and collections, classroom magazines 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.

• Media, Licensing and Advertising includes the production and/or distribution of media, merchandising and advertising revenue, including sponsorship programs and consumer promotions. 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 two operating segments.

	Children’s Book Publishing & Distribution (1)		Educational Publishing (1) (2)		Media, Licensing & Advertising (1)			Overhead (1) (3)			Total Domestic		International (1)		Total
2011
Revenues	$	922.0	$	428.0	$	111.2		$	—		$	1,461.2	$	444.9	$	1,906.1
Bad debts		8.7		1.9		0.2			—			10.8		2.8		13.6
Depreciation and amortization (4)		15.6		2.6		0.7			35.6			54.5		5.6		60.1
Amortization (5)		12.6		27.8		8.0			—			48.4		2.7		51.1
Asset Impairments		—		3.4		—			—			3.4		—		3.4
Royalty advances expensed		19.1		0.7		0.4			—			20.2		3.5		23.7
Segment operating income/(loss)		78.1		51.6		(1.2	)		(66.1	)		62.4		38.3		100.7
Segment assets at May 31, 2011		427.1		311.9		46.1			405.1			1,190.2		287.5		1,477.7
Goodwill at May 31, 2011		54.3		85.8		5.4			—			145.5		8.7		154.2
Expenditures for long-lived assets		40.4		44.8		9.4			56.3			150.9		11.8		162.7
Long-lived assets at May 31, 2011		175.9		177.8		20.1			249.0			622.8		71.2		694.0
2010
Revenues	$	910.6	$	476.5	$	113.8		$	—		$	1,500.9	$	412.0	$	1,912.9
Bad debts		3.9		1.7		0.1			—			5.7		3.8		9.5
Depreciation and amortization (4)		14.2		3.0		0.7			35.6			53.5		6.0		59.5
Amortization (5)		12.0		25.9		10.2			—			48.1		2.9		51.0
Asset Impairments		—		36.3		3.0			—			39.3		3.8		43.1
Royalty advances expensed		20.3		0.7		0.9			—			21.9		4.1		26.0
Segment operating income/(loss)		117.9		67.2		(4.2	)		(82.5	)		98.4		30.0		128.4
Segment assets at May 31, 2010		516.3		344.3		59.2			377.0			1,296.8		290.7		1,587.5
Goodwill at May 31, 2010		54.3		88.4		5.4			—			148.1		8.5		156.6
Expenditures for long-lived assets		43.7		31.8		6.9			28.9			111.3		11.2		122.5
Long-lived assets at May 31, 2010		176.8		169.8		19.2			232.2			598.0		67.1		665.1
2009
Revenues	$	940.4	$	384.2	$	125.7		$	—		$	1,450.3	$	399.0	$	1,849.3
Bad debts		10.0		1.6		0.3			—			11.9		3.9		15.8
Depreciation and amortization (4)		16.3		3.8		1.0			34.3			55.4		5.8		61.2
Amortization (5)		12.3		22.5		7.9			—			42.7		2.1		44.8
Asset Impairments		—		—		—			9.3			9.3		17.0		26.3
Royalty advances expensed		26.3		1.7		0.6			—			28.6		3.6		32.2
Segment operating income/(loss)		101.8		55.8		—			(104.3	)		53.3		7.3		60.6
Segment assets at May 31, 2009		560.7		331.2		59.4			381.1			1,332.4		252.9		1,585.3
Goodwill at May 31, 2009		54.3		88.4		5.8			—			148.5		8.5		157.0
Expenditures for long-lived assets		48.5		37.7		12.3			25.0			123.5		10.0		133.5
Long-lived assets at May 31, 2009		186.9		206.3		27.2			229.4			649.8		73.0		722.8

(1)	As discussed in Note 3, “Discontinued Operations,” the Company closed or sold several operations during fiscal 2008, 2009 and 2010 and presently holds for sale one operation. All of these businesses are classified as discontinued operations in the Company’s financial statements and, as such, are not reflected in this table. During the first quarter of fiscal 2011, the Company determined that its Danbury Facility was no longer “held for sale.” Accordingly, the assets, liabilities and results of operations of the Danbury Facility are included in continuing operations for all periods presented.
(2)	Includes assets and results of operations acquired in a business acquisition as of September 9, 2010.
(3)	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 Jefferson City, Missouri and the Danbury Facility.
(4)	Includes depreciation of property, plant and equipment and amortization of intangible assets.
(5)	Includes amortization of prepublication and production costs.