INVESTMENTS

12 Months Ended

May 31, 2012

Equity Method And Cost Method Investments [Text Block]

7. INVESTMENTS

Included in the Other assets and deferred charges section of the Company’s Consolidated Balance Sheets were investments of $20.6 and $20.4 at May 31, 2012 and May 31, 2011, respectively.

The Company owns a non-controlling interest in a book distribution business located in the UK, which is accounted for as a cost-basis investment. In fiscal 2011, the Company determined that these assets were other-than-temporarily impaired. The Company employed Level 3 fair value measures, including discounted cash flow projections, and recognized an impairment loss of $3.6. The carrying value of these assets was $5.2 as of May 31, 2012.

The Company’s 26.2% non-controlling interest in a children’s book publishing business located in the UK is accounted for using the equity method of accounting. The net value of this investment at May 31, 2012 was $15.4. The Company received $0.9 of dividends in fiscal 2012 from this investment.

The Company maintained an equity investment in an entity that produced and distributed educational children’s television programming. In the fourth quarter of fiscal 2012, the Company determined that these assets were other-than-temporarily impaired, and the Company recognized an impairment loss of $1.3 in Selling, general and administrative expense.

Income from equity investments totaled $2.6 for the year ended May 31, 2012, $1.8 for the year ended May 31, 2011 and $1.0 for the year ended May 31, 2010.

The following table summarizes the Company’s investments as of May 31:

	2012		2011
Cost method investments:
UK-based	$	5.2	$	5.7
Total cost method investments	$	5.2	$	5.7
Equity method investments:
UK-based	$	15.4	$	13.4
U.S.-based		—		1.3
Total equity method investments	$	15.4	$	14.7
Total	$	20.6	$	20.4