Discontinued Operations

12 Months Ended

May 31, 2013

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

3. DISCONTINUED OPERATIONS

The Company continuously evaluates its portfolio of businesses for both impairment and economic viability. The Company monitors the expected cash proceeds to be realized from the disposition of discontinued operations’ assets, and adjusts asset values accordingly.

In the first quarter of fiscal 2012, the Company ceased operations in its direct-to-home catalog business specializing in toys. This business was a separate reporting unit included in the Media, Licensing and Advertising segment. The prior fiscal year loss before income taxes includes lease costs associated with a vacant facility which formerly served the Company’s direct-to-home toy catalog business.

In the fourth quarter of fiscal 2012, the Company reviewed the estimate of the fair value less cost to sell of its Maumelle facility and recognized an additional charge of $2.2. The Company used market value estimates of the property and an estimate of the anticipated costs to sell the asset. The Company subsequently sold the Maumelle facility during the fourth quarter of fiscal 2013 for approximately $5.0, recognizing a loss on the sale in the amount of $1.1.

In the fourth quarter of fiscal 2013, the Company discontinued a computer club business which was included in the Children’s Book Publishing and Distribution segment. In addition, the Company discontinued a subscription-based business which was previously reported in the Media, Licensing and Advertising segment. All of these businesses are classified as discontinued operations in the Company’s Consolidated Financial Statements.

The following table summarizes the operating results of the discontinued operations for the fiscal years ended May 31:

	2013			2012			2011
Revenues	$	6.2		$	9.8		$	28.5
Gain (loss) on sale		(1.1	)		—			0.3
Earnings (loss) before income taxes		(7.2	)		(7.2	)		(7.6	)
Income tax benefit (provision)		2.5			1.5			1.7
Earnings (loss) from discontinued operations, net of tax	$	(4.7	)	$	(5.7	)	$	(5.9	)

The following table sets forth the assets and liabilities of the discontinued operations included in the Consolidated Balance Sheets of the Company as of May 31:

	2013		2012
Accounts receivable, net	$	0.0	$	0.2
Other assets		0.4		7.5
Current assets of discontinued operations	$	0.4	$	7.7
Accrued expenses and other current liabilities		1.3		2.1
Current liabilities of discontinued operations	$	1.3	$	2.1