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Goodwill and Other Intangibles
3 Months Ended
Aug. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]

7. Goodwill and Other Intangibles


Goodwill and other intangible assets with indefinite lives are reviewed annually for impairment or more frequently if impairment indicators arise.


The Company assesses goodwill annually or more frequently if impairment indicators are such that the goodwill is more likely than not impaired. The Company continues to monitor impairment indicators in light of reduced earnings, changes in market conditions, near and long-term demand for the Company’s products and other relevant factors.  


The Company did not have any impairment indicators in the fiscal quarter ended August 31, 2013, but continues to closely monitor its book clubs reporting unit, as this reporting unit’s fair value is largely dependent upon the success of the Storia ereading app, which was launched in fiscal 2012. Should Storia not achieve its projected revenue, and the Company is unable to adjust its strategy to effectively compensate, there is a potential for an impairment of goodwill in this reporting unit in future periods.


The following table summarizes the activity in Goodwill for the periods indicated:


    Three months ended
August 31, 2013
    Twelve months ended
May 31, 2013
    Three months ended
August 31, 2012
 
                         
Gross beginning balance   $ 178.7     $ 178.5     $ 178.5  
Accumulated impairment     (20.8 )     (20.8 )     (20.8 )
                         
Beginning balance   $ 157.9     $ 157.7     $ 157.7  
Foreign currency translation     0.0       0.0       0.0  
Other           0.2        
Gross ending balance   $ 178.7     $ 178.7     $ 178.5  
Accumulated impairment     (20.8 )     (20.8 )     (20.8 )
Ending balance   $ 157.9     $ 157.9     $ 157.7  

The following table summarizes the activity in Total other intangibles subject to amortization for the periods indicated:


    Three months ended
August 31, 2013
    Twelve months ended
May 31, 2013
    Three months ended
August 31, 2012
 
                         
                         
Beginning balance - customer lists   $ 3.4     $ 4.3     $ 4.3  
Additions           0.1       0.1  
Amortization expense     (0.2 )     (1.0 )     (0.2 )
Foreign currency translation     0.0       0.0       0.0  
                         
Customer lists, net of accumulated amortization of $2.5, $2.3 and $1.5, respectively   $ 3.2     $ 3.4     $ 4.2  
                         
Beginning balance - other intangibles   $ 9.2     $ 10.4     $ 10.4  
Additions           0.2        
Amortization expense     (0.4 )     (1.5 )     (0.3 )
Foreign currency translation     0.0              
Other           0.1       0.1  
Other intangibles, net of accumulated amortization of $12.4, $12.0 and $10.8, respectively   $ 8.8     $ 9.2     $ 10.2  
Total other intangibles subject to amortization   $ 12.0     $ 12.6     $ 14.4  
Trademarks and other   $ 2.0     $ 2.0     $ 2.0  
Total other intangibles not subject to amortization   $ 2.0     $ 2.0     $ 2.0  
Total other intangibles   $ 14.0     $ 14.6     $ 16.4  

Amortization expense for Total other intangibles was $0.6 and $0.5 for the three months ended August 31, 2013 and 2012, respectively. Intangible assets with definite lives consist principally of customer lists, covenants not to compete and trademark rights. Intangible assets with definite lives are amortized over their estimated useful lives. The weighted-average remaining useful lives of all amortizable intangible assets is 9 years.