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Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	May 31, 2011	Jun. 30, 2011	Nov. 30, 2010
Document and Entity Information [Abstract]
Entity Registrant Name	SCHOLASTIC CORPORATION
Document Type	10-K
Current Fiscal Year End Date	--05-31
Entity Common Stock, Shares Outstanding		30,975,371
Entity Public Float			$ 700,755,976
Amendment Flag	false
Entity Central Index Key	0000866729
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Well-known Seasoned Issuer	Yes
Document Period End Date	May 31, 2011
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY

Consolidated Statements of Operations - USD ($) $ in Millions	12 Months Ended
	May 31, 2011	May 31, 2010	May 31, 2009
Revenues	$ 1,906.1	$ 1,912.9	$ 1,849.3
Operating costs and expenses:
Cost of goods sold (exclusive of depreciation)	885.9	859.8	881.7
Selling, general and administrative expenses	835.7	803.4	777.2
Bad debt expense	13.6	9.5	15.8
Depreciation and amortization	60.1	59.5	61.2
Severance	6.7	9.2	26.5
Impairment charge	3.4	43.1	26.3
Total operating costs and expenses	1,805.4	1,784.5	1,788.7
Operating income	100.7	128.4	60.6
Other (expense) income	(0.4)	0.9	0.7
Interest income	1.5	1.6	1.2
Interest expense	(17.1)	(17.8)	(24.2)
Loss on investments	(3.6)	(1.5)	(13.5)
Earnings from continuing operations before income taxes	81.1	111.6	24.8
Provision for income taxes	37.5	52.9	17.8
Earnings from continuing operations	43.6	58.7	7.0
Loss from discontinued operations, net of tax	(4.2)	(2.6)	(21.3)
Net income (loss)	$ 39.4	$ 56.1	$ (14.3)
Basic:
Earnings from continuing operations (in Dollars per share)	$ 1.31	$ 1.61	$ 0.19
Loss from discontinued operations (in Dollars per share)	(0.13)	(0.07)	(0.57)
Net income (loss) (in Dollars per share)	1.18	1.54	(0.38)
Diluted:
Earnings from continuing operations (in Dollars per share)	1.29	1.59	0.19
Loss from discontinued operations (in Dollars per share)	(0.13)	(0.07)	(0.57)
Net income (loss) (in Dollars per share)	1.16	1.52	(0.38)
Dividends declared per common share (in Dollars per share)	$ 0.35	$ 0.30	$ 0.30

Consolidated Balance Sheets - USD ($) $ in Millions	May 31, 2011	May 31, 2010
Current Assets:
Cash and cash equivalents	$ 105.3	$ 244.1
Accounts receivable (less allowance for doubtful accounts of $22.3 at May 31, 2011 and $18.5 at May 31, 2010)	220.3	212.5
Inventories	309.9	315.7
Deferred income taxes	56.2	59.3
Prepaid expenses and other current assets	57.1	42.5
Current assets of discontinued operations	9.3	12.9
Total current assets	758.1	887.0
Property, Plant and Equipment
Land	37.1	13.0
Buildings	102.0	96.9
Capitalized software	234.0	214.6
Furniture, fixtures and equipment	245.8	227.1
Leasehold improvements	181.4	177.6
	800.3	729.2
Less accumulated depreciation and amortization	(461.3)	(412.6)
Net property, plant and equipment	339.0	316.6
Other Assets and Deferred Charges:
Prepublication costs	117.7	110.7
Royalty advances (less allowance for reserves of $71.8 at May 31, 2011 and $68.9 at May 31, 2010)	35.5	38.0
Production costs	7.4	7.1
Goodwill	154.2	156.6
Other intangibles	19.8	15.5
Noncurrent deferred income taxes	20.2	33.6
Other assets and deferred charges	35.1	35.3
Total other assets and deferred charges	389.9	396.8
Total assets	1,487.0	1,600.4
Current Liabilities:
Lines of credit and current portion of long-term debt	43.5	50.3
Capital lease obligations	0.5	0.9
Accounts payable	120.2	101.0
Accrued royalties	35.4	42.3
Deferred revenue	49.1	39.8
Other accrued expenses	173.4	156.2
Current liabilities of discontinued operations	0.6	2.9
Total current liabilities	422.7	393.4
Noncurrent Liabilities:
Long-term debt	159.9	202.5
Capital lease obligations	55.0	55.0
Other noncurrent liabilities	109.4	119.1
Total noncurrent liabilities	324.3	376.6
Commitments and Contingencies:
Stockholders’ Equity:
Preferred Stock, $1.00 par value Authorized - 2,000,000; Issued - None
Common Stock, value	0.4	0.4
Additional paid-in capital	576.6	569.2
Accumulated other comprehensive loss	(53.9)	(85.4)
Retained earnings	635.8	607.8
Treasury stock at cost	(418.9)	(261.6)
Total stockholders’ equity	740.0	830.4
Total liabilities and stockholders’ equity	1,487.0	1,600.4
Common Class A [Member]
Stockholders’ Equity:
Common Stock, value	$ 0.0	$ 0.0

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions	May 31, 2011	May 31, 2010
Allowance for doubtful accounts (in Dollars)	$ 22.3	$ 18.5
Allowance for royalty advances (in Dollars)	$ 71.8	$ 68.9
Preferred stock, par value per share (in Dollars per share)	$ 1.00	$ 1.00
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Common Stock, par value per share (in Dollars per share)	$ 0.01	$ 0.01
Common Stock, shares authorized	70,000,000	70,000,000
Common Stock, shares issued	42,911,624	42,911,624
Common Stock, shares outstanding	29,316,691	34,598,258
Common Class A [Member]
Common Stock, par value per share (in Dollars per share)	$ 0.01	$ 0.01
Common Stock, shares authorized	4,000,000	4,000,000
Common Stock, shares issued	1,656,200	1,656,200

Consolidated Statement of Changes in Stockholders' Equity and Comprehensive Income (Loss) - USD ($) $ in Millions	Total	Common Class A [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]	Treasury Stock [Member]
Balance at May. 31, 2008	$ 873.1	$ 0.0	$ 0.4	$ 539.1	$ (34.7)	$ 588.3	$ (220.0)
Balance (in Shares) at May. 31, 2008		1,656,200	36,444,518
Comprehensive loss:
Net income (loss)	(14.3)					(14.3)
Other comprehensive loss, net:
Foreign currency translation adjustment	(30.3)				(30.3)
Pension and postretirement adjustments	(12.1)				(12.1)
Total other comprehensive income (loss)	(42.4)
Total comprehensive income (loss)	(56.7)
Stock-based compensation	11.6			11.6
Proceeds from issuance of common stock pursuant to stock-based compensation	2.2			2.2
Proceeds from issuance of common stock pursuant to stock-based compensation (in Shares)			234,446
Purchases of treasury stock at cost	(34.0)						(34.0)
Purchases of treasury stock at cost (in Shares)			(1,938,689)
Dividends	(11.2)					(11.2)
Balance at May. 31, 2009	785.0	$ 0.0	$ 0.4	552.9	(77.1)	562.8	(254.0)
Balance (in Shares) at May. 31, 2009		1,656,200	34,740,275
Comprehensive loss:
Net income (loss)	56.1					56.1
Other comprehensive loss, net:
Foreign currency translation adjustment	2.8				2.8
Pension and postretirement adjustments	(11.1)				(11.1)
Total other comprehensive income (loss)	(8.3)
Total comprehensive income (loss)	47.8
Stock-based compensation	14.0			14.0
Proceeds from issuance of common stock pursuant to stock-based compensation	3.2			3.2
Proceeds from issuance of common stock pursuant to stock-based compensation (in Shares)			134,045
Purchases of treasury stock at cost	(10.8)						(10.8)
Purchases of treasury stock at cost (in Shares)			(411,977)
Treasury stock issued pursuant to stock purchase plans	2.3			(0.9)			3.2
Treasury stock issued pursuant to stock purchase plans (in Shares)			135,915
Dividends	(11.1)					(11.1)
Balance at May. 31, 2010	830.4	$ 0.0	$ 0.4	569.2	(85.4)	607.8	(261.6)
Balance (in Shares) at May. 31, 2010		1,656,200	34,598,258
Comprehensive loss:
Net income (loss)	39.4					39.4
Other comprehensive loss, net:
Foreign currency translation adjustment	25.2				25.2
Pension and postretirement adjustments	6.3				6.3
Total other comprehensive income (loss)	31.5
Total comprehensive income (loss)	70.9
Stock-based compensation	13.7			13.7
Proceeds from issuance of common stock pursuant to stock-based compensation	2.9			2.9
Proceeds from issuance of common stock pursuant to stock-based compensation (in Shares)			104,100
Purchases of treasury stock at cost	(166.9)						(166.9)
Purchases of treasury stock at cost (in Shares)			(5,588,125)
Treasury stock issued pursuant to stock purchase plans	0.4			(9.2)			9.6
Treasury stock issued pursuant to stock purchase plans (in Shares)			202,458
Dividends	(11.4)					(11.4)
Balance at May. 31, 2011	$ 740.0	$ 0.0	$ 0.4	$ 576.6	$ (53.9)	$ 635.8	$ (418.9)
Balance (in Shares) at May. 31, 2011		1,656,200	29,316,691

Consolidated Statement of Changes in Stockholders' Equity and Comprehensive Income (Loss) (Parentheticals) - USD ($) $ in Millions	12 Months Ended
	May 31, 2011	May 31, 2010	May 31, 2009
Pension and postretirement adjustments, tax portion	$ 4.0	$ (9.1)	$ (3.4)

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	May 31, 2011	May 31, 2010	May 31, 2009
Cash flows provided by operating activities:
Net income (loss)	$ 39.4	$ 56.1	$ (14.3)
Loss from discontinued operations, net of tax	(4.2)	(2.6)	(21.3)
Earnings from continuing operations	43.6	58.7	7.0
Adjustments to reconcile earnings from continuing operations to net cash provided by operating activities of continuing operations:
Provision for losses on accounts receivable	13.6	9.5	15.8
Provision for losses on inventory	27.3	27.2	28.4
Provision for losses on royalty advances	4.5	6.8	12.6
Amortization of prepublication and production costs	51.1	51.0	44.8
Depreciation and amortization	60.1	59.5	61.2
Deferred income taxes	(3.0)	29.4	35.3
Stock-based compensation	13.7	14.0	11.6
Non cash write off related to asset impairment	3.4	43.1	26.3
Unrealized loss on investments	3.6	1.5	13.5
Changes in assets and liabilities:
Accounts receivable	(12.6)	(22.4)	(17.7)
Inventories	(10.0)	3.4	(25.8)
Prepaid expenses and other current assets	1.6	2.4	7.3
Deferred promotion costs	0.1	0.8	0.3
Royalty advances	(1.2)	(3.7)	(6.6)
Accounts payable	18.9	(27.0)	25.6
Other accrued expenses	14.5	18.8	(28.3)
Accrued royalties	(8.3)	0.4	(2.5)
Deferred revenue	8.7	5.6	(0.5)
Pension and post-retirement liabilities	(11.3)	(3.6)	(4.4)
Other noncurrent liabilities	5.2	(5.0)	5.0
Other, net	5.8	3.2	(3.3)
Total adjustments	185.7	214.9	198.6
Net cash provided by operating activities of continuing operations	229.3	273.6	205.6
Net cash (used in) provided by operating activities of discontinued operations	(0.9)	2.2	(17.0)
Net cash provided by operating activities	228.4	275.8	188.6
Cash flows used in investing activities:
Prepublication and production expenditures	(57.9)	(48.9)	(57.8)
Additions to property, plant and equipment	(50.0)	(55.3)	(45.1)
Acquisition related payments	(10.1)	(1.0)	(4.4)
Land acquisition	(24.3)
Net cash proceeds from sale of discontinued operations		0.2	33.0
Other	1.2		1.7
Net cash used in investing activities of continuing operations	(141.1)	(105.0)	(72.6)
Net cash used in investing activities of discontinued operations			(0.8)
Net cash used in investing activities	(141.1)	(105.0)	(73.4)
Cash flows used in financing activities:
Borrowings under credit agreement and revolving loan	70.0		220.3
Repayment of credit agreement and revolving loan	(70.0)		(220.3)
Repayment of term loan	(42.8)	(42.8)	(42.8)
Repurchase of 5.00% notes		(4.1)	(2.1)
Borrowings under lines of credit	118.6	157.0	465.0
Repayments under lines of credit	(128.2)	(159.0)	(461.4)
Repayment of capital lease obligations	(2.0)	(3.4)	(4.9)
Reacquisition of common stock	(166.9)	(10.8)	(34.0)
Proceeds pursuant to stock-based compensation plans	2.9	3.2	2.3
Payment of dividends	(10.8)	(10.9)	(8.4)
Other	(1.3)	(0.1)
Net cash used in financing activities of continuing operations	(230.5)	(70.9)	(86.3)
Net cash used in financing activities	(230.5)	(70.9)	(86.3)
Effect of exchange rate changes on cash and cash equivalents	4.4	0.6	(5.7)
Net (decrease) increase in cash and cash equivalents	(138.8)	100.5	23.2
Cash and cash equivalents at beginning of period, including cash of discontinued operations of $0.0, $0.0 and $4.3 at June 1, 2010, 2009 and 2008, respectively	244.1	143.6	120.4
Cash and cash equivalents at end of period, including cash of discontinued operations of $0.0, $0.0 and $0.0 at May 31, 2011, 2010 and 2009, respectively	105.3	244.1	143.6
Supplemental Information:
Income taxes payments (refunds), net	31.5	22.3	(5.3)
Interest paid	$ 15.4	$ 16.5	$ 23.1

Consolidated Statements of Cash Flows (Parentheticals) - USD ($) $ in Millions	May 31, 2011	May 31, 2010	May 31, 2009
Cash and cash equivalents at beginning of period, discontinued operations	$ 0.0	$ 0.0	$ 4.3
Cash and cash equivalents at end of period, discontinued operations	$ 0.0	$ 0.0	$ 0.0

- Definition

For the disposal group, including a component of the entity (discontinued operation), cash includes currency on hand as well as demand deposits with banks or financial institutions. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months.

+ References + Details

DESCRIPTION OF THE BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

May 31, 2011

Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

1. DESCRIPTION OF THE BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of the business

Scholastic Corporation (the “Corporation” and together with its subsidiaries, “Scholastic” or the “Company”) is a global children’s publishing, education and media company. Since its founding in 1920, Scholastic has emphasized quality products and a dedication to reading and learning. The Company is the world’s largest publisher and distributor of children’s books and a leading developer of educational technology products. Scholastic also creates quality educational and entertainment materials and products for use in school and at home, including magazines, children’s reference and non-fiction materials, teacher materials, television programming, film, ebooks and toys. The Company is a leading operator of school-based book clubs and book fairs in the United States. It distributes its products and services through these proprietary channels, as well as directly to schools and libraries, through retail stores and through the internet. The Company’s website, scholastic.com, is a leading site for teachers, classrooms and parents and an award-winning destination for children. In addition to its operations in the United States, Scholastic has operations in Canada, the United Kingdom, Australia, New Zealand, Ireland, India, China, Singapore and other parts of Asia, and, through its export business, sells products in over 140 countries.

Basis of presentation

Principles of consolidation

The consolidated financial statements include the accounts of the Corporation and all wholly-owned and majority-owned subsidiaries. All significant intercompany transactions are eliminated in consolidation.

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.

During the first quarter of fiscal 2011, the Company determined that its distribution facility in Danbury, Connecticut (the “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.

Use of estimates

The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements involves the use of estimates and assumptions by management, which affects the amounts reported in the consolidated financial statements and accompanying notes. The Company bases its estimates on historical experience, current business factors, and various other assumptions believed to be reasonable under the circumstances, all of which are necessary in order to form a basis for determining the carrying values of assets and liabilities. Actual results may differ from those estimates and assumptions.

The Company’s significant estimates include those developed for:


	•	Accounts receivable, returns and allowances

	•	Pension and post-retirement obligations

	•	Uncertain tax positions

	•	Inventory reserves

	•	Sales taxes

	•	Royalty advance reserves

	•	Customer reward programs

	•	Impairment testing for goodwill, intangibles and other long-lived assets

Summary of Significant Accounting Policies

Revenue recognition

The Company’s revenue recognition policies for its principal businesses are as follows:

School-Based Book Clubs – Revenue from school-based book clubs is recognized upon shipment of the products.

School-Based Book Fairs – Revenues associated with school-based book fairs are related to sales of product. Book fairs are typically run by schools and/or parent teacher organizations over a five business-day period. At the end of reporting periods, the Company defers revenue for those fairs that have not been completed as of the period end based on the number of fair days occurring after period end on a straight-line calculation of the full fair’s revenue.

Trade – Revenue from the sale of children’s books for distribution in the retail channel is primarily recognized when risks and benefits transfer to the customer, which generally is at the time of shipment, or when the product is on sale and available to the public. For newly published titles, the Company, on occasion, contractually agrees with its customers when the publication may be first offered for sale to the public, or an agreed upon “Strict Laydown Date.” For such titles, the risks and benefits of the publication are not deemed to be transferred to the customer until such time that the publication can contractually be sold to the public, and the Company defers revenue on sales of such titles until such time as the customer is permitted to sell the product to the public.

A reserve for estimated returns is established at the time of sale and recorded as a reduction to revenue. Actual returns are charged to the reserve as received. The calculation of the reserve for estimated returns is based on historical return rates and sales patterns. Actual returns could differ from the Company’s estimate. A reserve for estimated bad debts is established at the time of sale and is based on the aging of accounts receivable held by the Company’s third party administrator. While the Company uses a third party to invoice and collect for the majority of shipments made, the Company bears the majority of the responsibility in the case of uncollectible accounts.

Educational Publishing – For shipments to schools, revenue is recognized when risks and benefits transfer to the customer. Shipments to depositories are on consignment and revenue is recognized based on actual shipments from the depositories to the schools. For certain software-based products, the Company offers new customers installation and training with the products and, in such cases, revenue is deferred and recognized as services are delivered over the life of the contract.

Toy Catalog – Revenue from the sale of children’s toys to the home through catalogs is recognized when risks and benefits transfer to the customer, which generally is at the time of shipment. A reserve for estimated returns is established at the time of sale and recorded as a reduction to revenue. Actual returns are charged to the reserve as received. The calculation of the reserve for estimated returns is based on historical return rates and sales patterns over the allowable return period.

Film Production and Licensing – Revenue from the sale of film rights, principally for the home video and domestic and foreign television markets, is recognized when the film has been delivered and is available for showing or exploitation. Licensing revenue is recorded in accordance with royalty agreements at the time the licensed materials are available to the licensee and collections are reasonably assured.

Magazines – Revenue is deferred and recognized ratably over the subscription period, as the magazines are delivered.

Magazine Advertising - Advertising revenue is recognized when the magazine is for sale and available to the subscribers.

Scholastic In-School Marketing – Revenue is recognized when the Company has satisfied its obligations under the program and the customer has acknowledged acceptance of the product or service. Certain revenues may be deferred pending future deliverables.

Cash equivalents

Cash equivalents consist of short-term investments with original maturities of three months or less.

Accounts receivable

Accounts receivable are recorded net of allowances for doubtful accounts and reserves for returns. In the normal course of business, the Company extends credit to customers that satisfy predefined credit criteria. The Company is required to estimate the collectability of its receivables. Allowances for doubtful accounts are established through the evaluation of accounts receivable aging and prior collection experience to estimate the ultimate collectability of these receivables. At the time the Company determines that a receivable balance, or any portion thereof, is deemed to be permanently uncollectable, the balance is then written off.

Inventories

Inventories, consisting principally of books, are stated at the lower of cost, using the first-in, first-out method, or market. The Company records a reserve for excess and obsolete inventory based upon a calculation using the historical usage rates, and sales patterns of its products and specifically identified obsolete inventory.

Property, plant and equipment

Property, plant and equipment are stated at cost. Depreciation and amortization are recorded on a straight-line basis, over estimated useful lives. Buildings have an estimated useful life, for purposes of depreciation, of forty years. Capitalized software, net of accumulated amortization, was $59.2 and $61.2 at May 31, 2011 and 2010, respectively. Capitalized software is depreciated over a period of three to seven years. Amortization expense for capitalized software was $25.8, $25.0 and $25.2 for the fiscal years ended May 31, 2011, 2010 and 2009, respectively. Furniture, fixtures and equipment are depreciated over periods not exceeding ten years. Leasehold improvements are amortized over the life of the lease or the life of the assets, whichever is shorter. Included in Depreciation and amortization is $1.2 related to capitalized leases for the year ended May 31, 2011. The Company evaluates the depreciation periods of property, plant and equipment to determine whether events or circumstances warrant revised estimates of useful lives.

Leases

Lease agreements are evaluated to determine whether they are capital or operating leases. When substantially all of the risks and benefits of property ownership have been transferred to the Company, as determined by the test criteria in the current authoritative guidance, the lease is recognized as a capital lease.

Capital leases are capitalized at the lower of the net present value of the total amount of rent payable under the leasing agreement (excluding finance charges) or the fair market value of the leased asset. Capital lease assets are depreciated on a straight-line basis, over a period consistent with the Company’s normal depreciation policy for tangible fixed assets, but not exceeding the lease term. Interest charges are expensed over the period of the lease in relation to the carrying value of the capital lease obligation.

Rent expense for operating leases, which may include free rent or fixed escalation amounts in addition to minimum lease payments, is recognized on a straight-line basis over the duration of each lease term.

Prepublication costs

The Company capitalizes the art, prepress, editorial, digital conversion and other costs incurred in the creation of the master copy of a book or other media (the “prepublication costs”). Prepublication costs are amortized on a straight-line basis over a three- to seven-year period based on expected future revenues. The Company regularly reviews the recoverability of the capitalized costs based on expected future revenues.

Royalty advances

Royalty advances are initially capitalized and subsequently expensed as related revenues are earned or when the Company determines future recovery is not probable. The Company has a long history of providing authors with royalty advances, and it tracks each advance earned with respect to the sale of the related publication. The royalties earned are applied first against the remaining unearned portion of the advance. Historically, the longer the unearned portion of the advance remains outstanding, the less likely it is that the Company will recover the advance through the sale of the publication. The Company applies this historical experience to its existing outstanding royalty advances to estimate the likelihood of recovery. Additionally, the Company’s editorial staff regularly reviews its portfolio of royalty advances to determine if individual royalty advances are not recoverable for discrete reasons, such as the death of an author prior to completion of a title or titles, a Company decision to not publish a title, poor market demand or other relevant factors that could impact recoverability.

Goodwill and intangible assets

Goodwill and other intangible assets with indefinite lives are not amortized and are reviewed for impairment annually or more frequently if impairment indicators arise. With regard to goodwill, the Company compares the estimated fair value of its identified reporting units to the carrying value of the net assets. For each of the reporting units, the estimated fair value is determined utilizing the expected present value of the projected future cash flows of the units, in addition to comparisons to similar companies. The Company reviews its definition of reporting units annually or more frequently if conditions indicate that the reporting units may change. The Company evaluates its operating segments to determine if there are components one level below the operating segment. A component is present if discrete financial information is available, and segment management regularly reviews the operating results of the business. If an operating segment only contains a single component, that component is determined to be a reporting unit for goodwill impairment testing purposes. If an operating segment contains multiple components, the Company evaluates the economic characteristics of these components. Any components within an operating segment that share similar economic characteristics are aggregated and deemed to be a reporting unit for goodwill impairment testing purposes. Components within the same operating segment that do not share similar economic characteristics are deemed to be individual reporting units for goodwill impairment testing purposes. The Company has identified twelve separate reporting units for goodwill impairment testing purposes. For each reporting unit with a goodwill asset, impairment testing is conducted at the reporting unit level.

With regard to other intangibles with indefinite lives, the Company determines the fair value by asset, which is then compared to its carrying value. The estimated fair value is determined utilizing the expected present value of the projected future cash flows of the asset. Intangible assets with definite lives consist principally of customer lists, covenants not to compete, and certain other intellectual property assets and are amortized over their expected useful lives. Customer lists are amortized on a straight-line basis over a five-year period, while covenants not to compete are amortized on a straight-line basis over their contractual term. Other intellectual property assets are amortized over their remaining useful lives which range primarily from three to five years.

Income taxes

The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using enacted tax rates and laws that will be in effect when the differences are expected to enter into the determination of taxable income.

The Company believes that its taxable earnings, during the periods when the temporary differences giving rise to deferred tax assets become deductible or when tax benefit carryforwards may be utilized, should be sufficient to realize the related future income tax benefits. For those jurisdictions where the expiration date of the tax benefit carryforwards or the projected taxable earnings indicates that realization is not likely, the Company establishes a valuation allowance.

In assessing the need for a valuation allowance, the Company estimates future taxable earnings, with consideration for the feasibility of on-going tax planning strategies and the realizability of tax benefit carryforwards, to determine which deferred tax assets are more likely than not to be realized in the future. Valuation allowances related to deferred tax assets can be impacted by changes to tax laws, changes to statutory tax rates and future taxable earnings. In the event that actual results differ from these estimates in future periods, the Company may need to adjust the valuation allowance.

The Company accounts for uncertain tax positions using a two step method. Recognition occurs when an entity concludes that a tax position, based solely on technical merits, is more likely than not to be sustained upon examination. If a tax position is more likely than not to be sustained upon examination, the amount recognized is the largest amount of benefit, determined on a cumulative probability basis, which is more likely than not to be realized upon settlement. The Company assesses all income tax positions and adjusts its reserves against these positions periodically based upon these criteria. The Company also assesses potential penalties and interest associated with these tax positions, and includes these amounts as a component of income tax expense.

In calculating the provision for income taxes on an interim basis, the Company uses an estimate of the annual effective tax rate based upon the facts and circumstances known. The Company’s effective tax rate is based on expected income and statutory tax rates and permanent differences between financial statement and tax return income applicable to the Company in the various jurisdictions in which the Company operates.

The Company assesses foreign investment levels periodically to determine if all or a portion of the Company’s investments in foreign subsidiaries are indefinitely invested.

Unredeemed incentive credits

The Company employs incentive programs to encourage sponsor participation in its book clubs and book fairs. These programs allow the sponsors to accumulate credits which can then be redeemed for Company products or other items offered by the Company. The Company recognizes a liability for these credits at the time of the recognition of revenue for the underlying purchases of Company product that resulted in the granting of the credits, based on the estimated cost to provide the free products. As the credits are redeemed, such liability is reduced.

Other noncurrent liabilities

All of the rate assumptions discussed below impact the Company’s calculations of its pension and post-retirement obligations. The rates applied by the Company are based on the portfolios’ past average rates of return, discount rates and actuarial information. Any change in market performance, interest rate performance, assumed health care costs trend rate or compensation rates could result in significant changes in the Company’s pension and post-retirement obligations.

Pension obligations – Scholastic Corporation and certain of its subsidiaries have defined benefit pension plans covering the majority of their employees who meet certain eligibility requirements. The Company’s pension plans and other post-retirement benefits are accounted for using actuarial valuations.

The Company’s pension calculations are based on three primary actuarial assumptions: the discount rate, the long-term expected rate of return on plan assets, and the anticipated rate of compensation increases. The discount rate is used in the measurement of the projected, accumulated and vested benefit obligations and the interest cost component of net periodic pension costs. The long-term expected return on plan assets is used to calculate the expected earnings from the investment or reinvestment of plan assets. The anticipated rate of compensation increase is used to estimate the increase in compensation for participants of the plan from their current age to their assumed retirement age. The estimated compensation amounts are used to determine the benefit obligations and the service cost. Pension benefits in the cash balance plan for employees located in the United States are based on formulas in which the employees’ balances are credited monthly with interest based on the average rate for one-year United States Treasury Bills plus 1%. Contribution credits are based on employees’ years of service and compensation levels during their employment periods.

Other post-retirement benefits – Scholastic Corporation provides post-retirement benefits, consisting of healthcare and life insurance benefits, to eligible retired United States-based employees. The post-retirement medical plan benefits are funded on a pay-as-you-go basis, with the Company paying a portion of the premium and the employee paying the remainder. The Company follows current authoritative guidance in calculating the existing benefit obligation, which is based on the discount rate and the assumed health care cost trend rate. The discount rate is used in the measurement of the projected and accumulated benefit obligations and the interest cost component of net periodic post-retirement benefit cost. The assumed health care cost trend rate is used in the measurement of the long-term expected increase in medical claims.

Foreign currency translation

The Company’s non-United States dollar-denominated assets and liabilities are translated into United States dollars at prevailing rates at the balance sheet date and the revenues, costs and expenses are translated at the average rates prevailing during each reporting period. Net gains or losses resulting from the translation of the foreign financial statements and the effect of exchange rate changes on long-term intercompany balances are accumulated and charged directly to the foreign currency translation adjustment component of stockholders’ equity until such time as the operations are substantially liquidated or sold. The Company considers its investments in foreign subsidiaries to be indefinitely reinvested, and accordingly, has not provided taxes for the repatriation of these investments. Therefore, the Company has not provided for taxes on cumulative translation adjustments within stockholders’ equity. The Company assesses foreign investment levels periodically to determine if all or a portion of the Company’s investments in foreign subsidiaries are indefinitely invested.

Shipping and handling costs

Amounts billed to customers for shipping and handling are classified as revenue. Costs incurred in shipping and handling are recognized in cost of goods sold.

Advertising Costs

The Company incurs costs for both direct-response and non direct-response advertising. The Company capitalizes direct-response advertising costs for expenditures, primarily in its Classroom Magazines division. The asset is amortized on a cost-pool-by-cost-pool basis over the period during which the future benefits are expected to be received. Included in Prepaid expenses and other current assets on the balance sheet is $4.8 of capitalized advertising costs as of May 31, 2011 and 2010. The Company expenses non-direct response advertising costs as incurred.

Discontinued Operations

Long-lived assets classified within discontinued operations are recognized at the estimated fair value less cost to sell those long-lived assets for assets held for sale. The calculation of estimated fair value less cost to sell includes significant estimates and assumptions, including, but not limited to: operating projections; excess working capital levels; real estate values; and the anticipated costs involved in the selling process. The Company recognizes operations as discontinued when the operations have either ceased or are expected to be disposed of in a sale transaction in the near term; the operations and cash flows of all discontinued operations have been eliminated, or will be eliminated upon consummation of the expected sale transaction and the Company will not have any significant continuing involvement in the discontinued operations subsequent to the expected sale transaction.

Stock-based compensation

The Company recognizes the cost of employee and director services received in exchange for any stock-based awards. The Company recognizes compensation expense on a straight-line basis over an award’s requisite service period, which is generally the vesting period, based on the award’s fair value at the date of grant.

The fair values of stock options granted by the Company are estimated at the date of grant using the Black-Scholes option-pricing model. The Company’s determination of the fair value of stock-based payment awards using this option-pricing model is affected by the price of the Common Stock as well as by assumptions regarding highly complex and subjective variables, including, but not limited to, the expected price volatility of the Common Stock over the terms of the awards, the risk-free interest rate, and actual and projected employee stock option exercise behaviors. Estimates of fair value are not intended to predict actual future events or the value that may ultimately be realized by employees or directors who receive these awards.

Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates, in order to derive the Company’s best estimate of awards ultimately expected to vest. In determining the estimated forfeiture rates for stock-based awards, the Company periodically conducts an assessment of the actual number of equity awards that have been forfeited previously. When estimating expected forfeitures, the Company considers factors such as the type of award, the employee class and historical experience. The estimate of stock-based awards that will ultimately be forfeited requires significant judgment and, to the extent that actual results or updated estimates differ from current estimates, such amounts will be recorded as a cumulative adjustment in the period such estimates are revised.

The table set forth below provides the estimated fair value of options granted during fiscal years 2011, 2010 and 2009 and the significant weighted average assumptions used in determining the fair value for options granted by the Company under the Black-Scholes option pricing model. The expected life represents an estimate of the period of time stock options are expected to remain outstanding based on the historical exercise behavior of the option grantees. The risk-free interest rate was based on the U.S. Treasury yield curve corresponding to the expected life in effect at the time of the grant. The volatility was estimated based on historical volatility corresponding to the expected life.



	2011			2010			2009

Estimated fair value of stock options granted	$	8.15		$	8.34		$	9.51
Assumptions:
Expected dividend yield		1.3	%		1.4	%		0.7	%
Expected stock price volatility		37.3	%		37.6	%		34.3	%
Risk-free interest rate		2.0	%		3.3	%		3.4	%
Expected life of options		6 years			7 years			6 years

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

In June 2009, the FASB issued authoritative accounting guidance that changes the consolidation model for variable interest entities (“VIE”s). The guidance requires companies to qualitatively assess the determination of the primary beneficiary of a VIE based on whether the company (1) has the power to direct matters that most significantly impact the VIE’s economic performance, and (2) has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The guidance is effective for fiscal years beginning after November 15, 2009. The adoption of this standard had no impact on the Company’s consolidated financial position, results of operations or cash flows.

NEW ACCOUNTING PRONOUNCEMENTS

In October 2009, the FASB issued an update to authoritative guidance on the revenue recognition related to multiple deliverable revenue arrangements. The guidance addresses the accounting for multiple deliverable arrangements to enable vendors to account for products or services (deliverables) separately rather than as a combined unit. Vendors often provide multiple products or services to their customers. Those deliverables often are provided at different points in time or over different time periods. The current authoritative guidance establishes the accounting and reporting guidance for arrangements under which the vendor will perform multiple revenue-generating activities. Specifically, this guidance addresses how to separate deliverables and how to measure and allocate arrangement consideration to one or more units of accounting. This guidance will be effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. Early adoption is permitted. The Company has not chosen early adoption and is evaluating the impact on the Company’s consolidated financial position, results of operations and cash flows.

In October 2009, the FASB issued an update to authoritative guidance related to certain revenue arrangements that include software elements. The accounting guidance update addresses the accounting revenue arrangements that contain tangible products and software and it affects vendors that sell or lease tangible products in an arrangement that contains software that is more than incidental to the tangible product as a whole. The update clarifies what guidance should be used in allocating and measuring revenue. Tangible products containing software components and non-software components that function together to deliver the tangible product’s essential functionality are no longer within the scope of the software recognition guidance “Software – Revenue Recognition.” The amendment requires that hardware components of a tangible product containing software components always be excluded from the software revenue guidance. This guidance will be effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. Early adoption is permitted. The Company has not chosen early adoption and is evaluating the impact on the Company’s consolidated financial position, results of operations and cash flows.

In December 2010, the FASB issued an update to the authoritative guidance on the two-step testing required for impairment of goodwill and other intangible assets. When a goodwill impairment test is performed (either on an annual or interim basis), an entity must assess whether the carrying amount of a reporting unit exceeds its fair value. If it does, an entity must perform an additional test to determine whether goodwill has been impaired and to calculate the amount of that impairment. The amendments in this update modify Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists. In determining whether it is more likely than not that an impairment of goodwill exists, an entity should consider whether there are any adverse qualitative factors indicating that impairment may exist. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2010. Early adoption is not permitted. The Company is evaluating the impact on its consolidated financial position, results of operations and cash flows.

In December 2010, the FASB issued an update to the authoritative guidance related to business combinations. The amendments in this update specify that, for material business combinations, on an individual or aggregate basis, when comparative financial statements are presented, revenue and earnings of the combined entity should be disclosed as though the business combination had occurred as of the beginning of the comparable prior annual reporting period. The amendments in this update also expand the supplemental pro forma disclosures to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. The amendments in this update are effective prospectively for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2010. Early adoption is permitted. The Company has not chosen early adoption and is evaluating the impact on its consolidated financial position, results of operations and cash flows.

In May 2011, the FASB issued an update to the authoritative guidance related to fair value measurements as a result of the FASB and the IASB working together to develop common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. generally accepted accounting principles (“GAAP”) and International Financial Reporting Standards (“IFRS”). The amendments will add new disclosures, with a particular focus on Level 3 measurements. The objective of these amendments is to improve the comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. GAAP and IFRS. The amendments in this update are to be applied prospectively. The amendments are effective during interim and annual periods beginning after December 15, 2011. Early application is not permitted. The Company is evaluating the impact on its consolidated financial position, results of operations and cash flows.

- Definition

The entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.

+ References + Details

ACQUISITION AND LAND PURCHASE

12 Months Ended

May 31, 2011

Acquisition And Land Purchase [Text Block]

2. ACQUISITION AND LAND PURCHASE

On September 9, 2010, the Company acquired Math Solutions, an education resources and professional development company focusing on K-12 math instruction, for $8.2, net of cash acquired. The Company has integrated this business with its existing educational technology businesses. As a result of this transaction, the Company recognized $0.8 of goodwill and $5.6 of amortizable intangible assets.

Transaction costs of $0.4 were expensed in fiscal 2011 and are included in “Other (expense) income” on the Company’s consolidated statements of operations. The results of operations of this acquisition subsequent to the acquisition date are included in the Educational Publishing segment.

In the second quarter of fiscal 2011, the Company purchased the land on which its corporate headquarters are located for $24.3 and also satisfied capital lease obligations on this property of $1.3.

DISCONTINUED OPERATIONS

12 Months Ended

May 31, 2011

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

3. DISCONTINUED OPERATIONS

The Company monitors the expected cash proceeds to be realized from the disposition of discontinued operations’ assets, and adjusts asset values accordingly. The Company continuously evaluates its portfolio of businesses for both impairment and economic viability. The Company did not cease any additional operations or classify any additional operations as “held for sale” during the fiscal year ended May 31, 2011. During the first quarter of fiscal 2011, the Company determined that the 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.

During the fiscal year ended May 31, 2011, the Company completed the settlement of the pension plan of Grolier Limited, a Canadian entity in the continuities business. Losses related to the recognition of prior service costs are reflected in the table below. See Note 12, “Employee Benefit Plans,” for further details pertaining to the settlement.

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



	2011		2010			2009

Revenues	$	—	$	2.4		$	74.2
Gain (loss) on sale		0.3		(0.9	)		32.0
Non-cash impairment charge and loss on operations		4.9		2.1			52.6
Loss before income taxes		4.6		3.0			20.6
Income tax benefit (provision)		0.4		0.4			(0.7	)

Loss from discontinued operations, net of tax	$	4.2	$	2.6		$	21.3

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:



	2011		2010

Accounts receivable, net	$	0.1	$	3.7
Other assets		9.2		9.2

Current assets of discontinued operations	$	9.3	$	12.9

Accrued expenses and other current liabilities		0.6		2.9

Current liabilities of discontinued operations	$	0.6	$	2.9

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43-48
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 360
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 205
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-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760

+ Details

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.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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+ Details

Debt

12 Months Ended

May 31, 2011

Debt Disclosure [Text Block]

5. Debt

The following table summarizes debt as of May 31:



	Carrying Value			Fair Value			Carrying Value			Fair Value

	2011						2010

Lines of Credit (weighted average interest rates of 6.7% and 3.9%, respectively)	$	0.7		$	0.7		$	7.5		$	7.5
Loan Agreement:
Revolving Loan		—			—			—			—
Term Loan (interest rates of 1.0% and 1.1%, respectively)		50.2			50.2			93.0			93.0
5% Notes due 2013, net of discount		152.5			156.6			152.3			151.3


Total debt		203.4			207.5			252.8			251.8

Less lines of credit and current portion of long-term debt		(43.5	)		(43.5	)		(50.3	)		(50.3	)


Total long-term debt	$	159.9		$	164.0		$	202.5		$	201.5

The short-term debt’s carrying value approximates its fair value. The fair value of the Loan Agreement approximates its carrying value due to its variable interest rate and the Company’s stable credit rating. The fair values of the Notes were estimated based on market quotes, where available, or dealer quotes.

The following table sets forth the maturities of the carrying values of the Company’s debt obligations as of May 31, 2011 for fiscal years ended May 31:



2012	$	43.5
2013		159.9

Total debt	$	203.4

Loan Agreement

On June 1, 2007, Scholastic Corporation and Scholastic Inc. (each, a “Borrower” and together, the “Borrowers”) entered into a new $525.0 credit facility with certain banks, as amended, (the “Loan Agreement”), consisting of a $325.0 revolving credit component (the “Revolving Loan”) and a $200.0 amortizing term loan component (the “Term Loan”). The Loan Agreement is a contractually committed unsecured credit facility that is scheduled to expire on June 1, 2012. The $325.0 Revolving Loan component allows the Company to borrow, repay or prepay and reborrow at any time prior to the stated maturity date, and the proceeds may be used for general corporate purposes, including financing for acquisitions and share repurchases. The Loan Agreement also provides for an increase in the aggregate Revolving Loan commitments of the lenders of up to an additional $150.0. The $200.0 Term Loan component was established in order to fund the reacquisition by the Corporation of shares of its Common Stock pursuant to an Accelerated Share Repurchase Agreement (see Note 11, “Treasury Stock”) and was fully drawn on June 28, 2007 in connection with that transaction. The Term Loan, which may be prepaid at any time without penalty, requires quarterly principal payments of $10.7, with the first payment on December 31, 2007, and a final payment of $7.4 due on June 1, 2012.

On August 16, 2010, the Borrowers entered into an amendment to the Loan Agreement, which added certain provisions related to covenants and interest. Interest on both the Term Loan and Revolving Loan is due and payable in arrears on the last day of the interest period (defined as the period commencing on the date of the advance and ending on the last day of the period selected by the Borrower at the time each advance is made). At the election of the Borrower, the interest rate charged for each loan made under the Loan Agreement is based on (1) a rate equal to the higher of (a) the prime rate or (b) the prevailing Federal Funds rate plus 0.500% or (c) the Eurodollar Rate for a one month interest period plus 1%; or (2) an adjusted LIBOR rate plus an applicable margin, ranging from 0.500% to 1.250% based on the Company’s prevailing consolidated debt to total capital ratio. As of May 31, 2011 and May 31, 2010, the applicable margin on the Term Loan was 0.750% and the applicable margin on the Revolving Loan was 0.600%. The Loan Agreement also provides for a payment of a facility fee ranging from 0.125% to 0.25% per annum on the Revolving Loan only, which was 0.150% at May 31, 2011 and May 31, 2010. As of May 31, 2011, $50.2 was outstanding under the Term Loan at an interest rate of 1.0%. As of May 31, 2010, $93.0 was outstanding under the Term Loan at an interest rate of 1.1%. There were no outstanding borrowings under the Revolving Loan as of May 31, 2011 and 2010, respectively. As of May 31, 2011, standby letters of credit outstanding under the Loan Agreement totaled $1.4. The Loan Agreement contains certain covenants, including interest coverage and leverage ratio tests and certain limitations on the amount of dividends and other distributions, and at May 31, 2011 the Company was in compliance with these covenants.

5% Notes due 2013

In April 2003, Scholastic Corporation issued $175.0 of 5% Notes (the “5% Notes”). The 5% Notes are senior unsecured obligations that mature on April 15, 2013. Interest on the 5% Notes is payable semi-annually on April 15 and October 15 of each year through maturity. The Company may at any time redeem all or a portion of the 5% Notes at a redemption price (plus accrued interest to the date of the redemption) equal to the greater of (i) 100% of the principal amount, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest discounted to the date of redemption.

The Company repurchased $5.0 of the 5% Notes on the open market in fiscal 2010. The Company did not make any additional purchases during fiscal 2011.

Lines of Credit

The Company has unsecured money market bid rate credit lines totaling $20.0. There were no outstanding borrowings under these credit lines at May 31, 2011 and 2010. All loans made under these credit lines are at the sole discretion of the lender and at an interest rate and term agreed to at the time each loan is made, but not to exceed 365 days. These credit lines may be renewed, if requested by the Company, at the option of the lender.

As of May 31, 2011, the Company had various local currency credit lines, with maximum available borrowings in amounts equivalent to $30.3, underwritten by banks primarily in the United States, Canada and the United Kingdom. These credit lines are typically available for overdraft borrowings or loans up to 364 days and may be renewed, if requested by the Company, at the sole option of the lender. There were borrowings outstanding under these facilities equivalent to $0.7 at May 31, 2011 at a weighted average interest rate of 6.7%, compared to the equivalent of $7.5 at May 31, 2010 at a weighted average interest rate of 3.9%. The increased interest rate in fiscal 2011 was due to higher local borrowing interest rates in Asia.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

COMMITMENTS AND CONTINGENCIES

12 Months Ended

May 31, 2011

Commitments and Contingencies Disclosure [Text Block]

6. COMMITMENTS AND CONTINGENCIES

Lease obligations

The Company leases warehouse space, office space and equipment under various capital and operating leases over periods ranging from one to forty years. Certain of these leases provide for scheduled rent increases based on price-level factors. The Company generally does not enter into leases that call for contingent rent. In most cases, the Company expects that, in the normal course of business, leases will be renewed or replaced. Net rent expense relating to the Company’s non-cancelable operating leases for the three fiscal years ended May 31, 2011, 2010 and 2009 was $47.3, $44.8 and $45.3, respectively.

The Company was obligated under capital leases covering land, buildings and equipment in the amount of $55.5 and $55.9 at May 31, 2011 and 2010, respectively. Amortization of assets under capital leases was $1.2, $3.5 and $4.0 for the fiscal years ended May 31, 2011, 2010 and 2009, respectively and is included in Depreciation and amortization expense. The most significant of the Company’s capital leases is the lease related to the New York office where the Company’s headquarters are located. This capital lease has an imputed interest rate of 7.9% and the term ends July 2039.

The following table sets forth the composition of capital leases reflected as Property, Plant and Equipment in the Consolidated Balance Sheets at May 31:



	2011			2010

Land	$	3.5		$	3.5
Buildings		39.0			39.0
Equipment		3.0			8.0

		45.5			50.5
Accumulated amortization		(14.1	)		(17.6	)

Total	$	31.4		$	32.9

The following table sets forth the aggregate minimum future annual rental commitments at May 31, 2011 under all non-cancelable leases for fiscal years ending May 31:



	Operating Leases		Capital Leases

2012	$	34.5	$	5.0
2013		31.0		5.6
2014		23.9		5.1
2015		19.2		5.1
2016		15.4		5.1
Thereafter		43.2		191.1

Total minimum lease payments	$	167.2	$	217.0
Less amount representing interest				161.5
Present value of net minimum capital lease payments				55.5
Less current maturities of capital lease obligations				0.5

Long-term capital lease obligations			$	55.0

Other Commitments

The Company had contractual commitments relating to royalty advances at May 31, 2011 totaling $8.6. The aggregate annual commitments for royalty advances are as follows: fiscal 2012 – $5.8; fiscal 2013 – $2.0; fiscal 2014 - $0.6; fiscal 2015 - $0.1; fiscal 2016 - $0.1.

The Company had contractual commitments relating to minimum print quantities at May 31, 2011 totaling $504.9. The annual commitments relating to minimum print quantities are as follows: fiscal 2012 – $55.7; fiscal 2013 – $56.7; fiscal 2014 – $57.8; fiscal 2015 - $58.8; fiscal 2016 - $59.8; thereafter – $216.1.

As of May 31, 2011, the Company had open standby letters of credit of $6.6 issued under certain credit lines, compared to $7.2 as of May 31, 2010. These letters of credit are scheduled to expire within one year; however, the Company expects that substantially all of these letters of credit will be renewed, at similar terms, prior to expiration.

Contingencies

As previously reported, the Company is party to certain actions filed by each of Alaska Laborers Employee Retirement Fund and Paul Baicu, which were consolidated on November 8, 2007. On September 26, 2008, the plaintiff sought leave of the Court to file a second amended class action complaint, in order to add allegations relating to the Company’s restatement announced in the Company’s Annual Report on Form 10-K filed on July 30, 2008. The Court thereafter dismissed the Company’s pending motion to dismiss as moot. On October 20, 2008, the plaintiff filed the second amended complaint, and on October 31, 2008, the Company filed a motion to dismiss the second amended complaint. On September 30, 2010, the Court granted the Company’s motion to dismiss the second amended complaint for failure to state a cause of action, while also granting leave to the plaintiff to move to file a new proposed amended complaint. On December 1, 2010, the plaintiff filed a motion for leave to file a proposed third amended class action complaint, as well as a motion to replace Alaska Laborer Employers Retirement Fund with City of Sterling Heights Police and Fire Retirement System as lead plaintiff, and, on January 14, 2011, the Company filed an opposition to plaintiff’s motions for leave to file a third amended class action complaint and to substitute lead plaintiff, which was argued on March 3, 2011 and is awaiting decision by the court. The proposed third amended class action complaint shortens the original class action period to end on December 16, 2005 rather than on March 23, 2006, but otherwise continues to allege securities fraud relating to statements made by the Company concerning its operations and financial results, now for the period between March 18, 2005 and December 16, 2005, and seeks unspecified compensatory damages. The Company continues to believe that the allegations in such complaint are without merit and is vigorously defending the lawsuit.

In addition to the above suit, various claims and lawsuits arising in the normal course of business are pending against the Company. The results of these proceedings are not expected to have a material adverse effect on the Company’s consolidated financial position or results of operations.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 210
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+ Details

INVESTMENTS

12 Months Ended

May 31, 2011

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 $20.4 and $20.6 at May 31, 2011 and May 31, 2010, respectively.

In fiscal 2010, the Company determined that a cost-method investment in a U.S.-based internet company was other than temporarily impaired. Accordingly, the Company recognized a loss of $1.5 for the fiscal year ended May 31, 2010.

The Company owns a non-controlling interest in a book distribution business located in the United Kingdom. In fiscal 2009, the Company determined that these assets were other than temporarily impaired. For the fiscal year ended May 31, 2009, the Company recorded impairments on investments related to these operations of $13.5. In fiscal 2011, the Company again 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 $5.7 as of May 31, 2011.

In fiscal 2007, the Company participated in the organization of a new entity that produces and distributes educational children’s television programming. Since inception in August 2006, the Company has contributed a total of $6.0 in cash and certain rights to existing television programming. The Company’s investment, which consists of a 12.25% equity interest, is accounted for using the equity method of accounting. The net value of this investment at May 31, 2011 was $1.3.

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



	2011		2010

Cost method investments:
UK-based	$	5.7	$	9.1

Total cost method investments		5.7		9.1

Equity method investments:
UK-based		13.4		10.8
U.S.-based	$	1.3	$	0.7

Total equity method investment		14.7		11.5

Total	$	20.4	$	20.6

GOODWILL AND OTHER INTANGIBLES

12 Months Ended

May 31, 2011

Goodwill and Intangible Assets Disclosure [Text Block]

8. GOODWILL AND OTHER INTANGIBLES

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

The following table summarizes the activity in Goodwill for the fiscal years ended May 31:



	2011			2010

Gross beginning balance	$	174.0		$	174.0
Accumulated impairment		(17.4	)		(17.0	)

Beginning balance		156.6			157.0
Additions due to acquisition		1.0			—
Impairment charge		(3.4	)		(0.4	)

Gross ending balance		175.0			174.0
Accumulated impairment		(20.8	)		(17.4	)

Ending balance	$	154.2		$	156.6

On September 9, 2010, the Company purchased the assets of Math Solutions, an education resources and professional development company focusing on K-12 math instruction, for $8.2, net of cash acquired. The Company has integrated this business with its existing educational technology businesses. The Company utilized Level 3 fair value measurement inputs, using its own assumptions, including internally-developed discounted cash flow forecasts, to determine the fair value of the assets acquired and the amount of goodwill to be allocated to the Math Solutions business. As a result, the Company recognized $0.8 of goodwill and $5.6 of amortizable intangible assets. In the second quarter of fiscal 2011, the Company also recognized $0.2 of goodwill associated with a previously acquired international entity.

As of May 31, 2011, the Company determined the carrying value of its Scholastic Library Publishing and Classroom Magazines business within the Educational Publishing segment exceeded the fair value of this reporting unit. The Company employed internally-developed discounted cash flow forecasts and market comparisons to determine the fair value of the reporting unit and the implied fair value of the reporting unit’s assets and liabilities. Accordingly, the Company recognized an impairment charge of $3.4 at May 31, 2011.

As of May 31, 2010, the Company determined the carrying value of its direct-to-home catalog business specializing in toys exceeded the fair value of this reporting unit. The Company employed internally-developed discounted cash flow forecasts and market comparisons to determine the fair value of the reporting unit and the implied fair value of the reporting unit’s assets and liabilities. Accordingly, the Company recognized an impairment charge of $0.4 at May 31, 2010.

The following table summarizes Other intangibles subject to amortization as of May 31:





	2011			2010

Beginning balance-Customer lists	$	0.8		$	0.1
Additions		—			5.1
Impairment charge		—			(3.8	)
Other adjustments		—			(0.3	)
Amortization expense		(0.2	)		(0.2	)
Foreign currency translation		0.1			(0.1	)


Customer lists, net of accumulated amortization of $1.1 and $0.9, respectively	$	0.7		$	0.8

Beginning balance-Other intangibles	$	2.2		$	2.8
Additions due to acquisition		5.6			—
Reclassified from indefinite-lived intangible assets		10.7			—
Amortization expense		(1.2	)		(0.6	)

Other intangibles, net of accumulated amortization of $4.2 and $3.0, respectively	$	17.3		$	2.2

Total	$	18.0		$	3.0

Amortization expense for Other intangibles totaled $1.4, $0.8 and $0.6 for the fiscal years ended May 31, 2011, 2010 and 2009, respectively. Amortization expense for these assets is currently estimated to total $1.7 for each of the fiscal years ending May 31, 2012 and 2013, $1.2 for the fiscal year ending May 31, 2014, $1.1 for the fiscal year ending May 31, 2015 and $1.0 for the fiscal year ending May 31, 2016. Intangible assets with definite lives consist principally of customer lists and covenants not to compete. Intangible assets with definite lives are amortized over their estimated useful lives. The average remaining useful lives of all amortizable intangible assets is 7 years.

In fiscal 2011, the Company recognized $5.6 of amortizable intangible assets as a result of the Math Solutions acquisition. The Company utilized Level 3 fair value measurement inputs, using its own assumptions including internally-developed discounted cash flow forecasts and market comparisons, to determine the fair value of the intangible assets acquired.

In fiscal 2011, the Company determined that certain intangible assets associated with publishing and trademark rights, which were previously accounted for as indefinite-lived assets, were no longer indefinite-lived. Accordingly, the Company assessed these assets for impairment as of September 1, 2010, and subsequently commenced amortization of the assets. The Company determined that the fair value of the assets exceeded their carrying value as of September 1, 2010, and therefore no impairment was recognized. The Company employed Level 3 fair value measurement techniques to determine the fair value of these assets as of September 1, 2010, including the relief from royalty method.

In the fourth quarter of fiscal 2010, the Company determined that the fair value of the trademark associated with the Company’s direct-to-home catalog business specializing in toys was less than the carrying value of the trademark. The Company used historical and projected results while applying a residual income fair value method to make this determination and recognized an impairment of this trademark of $2.6.

During the first quarter of fiscal 2010, the Company and its joint venture partner terminated a book distribution joint venture in the United Kingdom. As a result of this transaction, the Company received a portion of the business and a related customer list previously held by the joint venture, in exchange for the partial forgiveness of amounts owed to the Company by the joint venture and related entities. The Company recognized this customer list in the first quarter of fiscal 2010 with a carrying value of $5.1, which the Company intended to operate apart from its existing customer list. In the second quarter of fiscal 2010, the Company determined that, to maximize profitability, the acquired customer list should ultimately be combined with its existing customer list. As a result, the Company assessed this customer list for impairment and determined that the customer list was impaired based upon the highest and best use for this asset. This assessment incorporated internally-developed cash flow projections to measure fair value, as market data for this asset is not readily available. Accordingly, the Company recognized an impairment charge in the second quarter of fiscal 2010 related to this asset of $3.8.

The following table summarizes Other intangibles not subject to amortization as of May 31:




	2011		2010

Net carrying value by major class:
Trademarks and other	$	1.8	$	12.5

Total	$	1.8	$	12.5

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

TAXES

12 Months Ended

May 31, 2011

Income Tax And Non Income Tax Disclosure [Text Block]

9. TAXES

The components of earnings from continuing operations before income taxes for the fiscal years ended May 31 are:



	2011		2010		2009

United States	$	73.9	$	109.6	$	41.1
Non-United States	$	7.2	$	2.0	$	(16.3	)

Total	$	81.1	$	111.6	$	24.8

The provision for income taxes for the fiscal years ended May 31 consists of the following components:



	2011		2010		2009

Federal
Current	$	9.1	$	10.2	$	6.8
Deferred	$	9.1	$	29.8	$	2.9

	$	18.2	$	40.0	$	9.7


State and local
Current	$	3.6	$	1.8	$	1.1
Deferred	$	2.2	$	1.1	$	0.3

	$	5.8	$	2.9	$	1.4


International
Current	$	12.5	$	8.6	$	5.5
Deferred	$	1.0	$	1.4	$	1.2

	$	13.5	$	10.0	$	6.7


Total
Current	$	25.2	$	20.6	$	13.4
Deferred	$	12.3	$	32.3	$	4.4

	$	37.5	$	52.9	$	17.8

Effective Tax Rate Reconciliation

A reconciliation of the significant differences between the effective income tax rate and the federal statutory rate on earnings from continuing operations before income taxes for the fiscal years ended May 31 is as follows:



	2011			2010			2009

Computed federal statutory provision		35.0	%		35.0	%		35.0	%
State income tax provision, net of federal income tax benefit		5.2	%		5.2	%		6.0	%
Difference in effective tax rates on earnings of foreign subsidiaries		-0.8	%		-0.4	%		-1.3	%
Charitable contributions		-1.6	%		-1.1	%		-1.7	%
Tax credits		-0.2	%		-0.2	%		0.0	%
Valuation allowances		6.1	%		5.4	%		20.5	%
Other - net		2.5	%		3.5	%		13.3	%

Effective tax rates		46.2	%		47.4	%		71.8	%

Total provision for income taxes	$	37.5		$	52.9		$	17.8

Unremitted Earnings

At May 31, 2011, the Company had not provided U.S. income taxes on accumulated but undistributed earnings of its non-U.S. subsidiaries of approximately $78.6 as substantially all of these undistributed earnings are expected to be permanently reinvested. However, if any portion were to be distributed, the related U.S. tax liability may be reduced by foreign income taxes paid on those earnings. Determining the unrecognized deferred tax liability related to those investments in these non-U.S. subsidiaries is not practicable. The Company assesses foreign investment levels periodically to determine if all or a portion of the Company’s investments in foreign subsidiaries are indefinitely invested.

Deferred Taxes

The significant components for deferred income taxes for the fiscal years ended May 31, including deferred income taxes related to discontinued operations, are as follows:



	2011			2010

Deferred tax assets
Tax uniform capitalization	$	17.1		$	19.8
Inventory reserves		25.8			25.0
Allowance for doubtful accounts		6.5			5.3
Other reserves		23.2			18.7
Post-retirement, post-employment and pension obligations		21.3			24.0
Tax carryforwards		41.0			38.2
Lease accounting		9.4			8.6
Other - net		29.1			29.4

Gross deferred tax assets		173.4			169.0
Valuation allowance		(36.8	)		(36.0	)

Total deferred tax assets		136.6			133.0

Deferred tax liabilities
Prepaid expenses		(0.8	)		(0.8	)
Depreciation and amortization		(59.4	)		(39.3	)

Total deferred tax liability		(60.2	)		(40.1	)
Total net deferred tax assets	$	76.4		$	92.9

Total net deferred tax assets of $76.4 at May 31, 2011 and $92.9 at May 31, 2010 include $56.2 and $59.3, respectively, in current assets. Total non current deferred tax assets of $20.2 and $33.6 are reflected in noncurrent assets at May 31, 2011 and 2010, respectively.

For the years ended May 31, 2011 and 2010, the valuation allowance increased by $0.8 and $5.9, respectively. The valuation allowance is based on the Company’s assessment that it is more likely than not that certain deferred tax assets will not be realized in the foreseeable future. The valuation allowance primarily relates to foreign operating loss carryforwards of $117.2, principally in the UK, which do not expire, and charitable contributions of $17.4 at May 31, 2011.

The benefits of uncertain tax positions are recorded in the financial statements only after determining a more likely-than-not probability that the uncertain tax positions will withstand challenge, if any, from taxing authorities. These uncertain tax positions are included in long-term income taxes payable, reduced by the associated federal deduction for state taxes and non-U.S. tax credits, and may also include other long-term tax liabilities that are not uncertain but have not yet been paid. The interest and penalties related to these uncertain tax positions are recorded as part of the Company’s income tax expense and part of the income tax liability on the Company’s Consolidated Balance Sheets.

The total amount of unrecognized tax benefits at May 31, 2011, 2010 and 2009 were $30.8, excluding $5.9 accrued for interest and penalties, $30.6, excluding $5.7 accrued for interest and penalties, and $33.6, excluding $8.5 for interest and penalties, respectively. Of the total amount of unrecognized tax benefits at May 31, 2011, 2010 and 2009, $19.2, $19.5, and $15.1, respectively, would impact the Company’s effective tax rate.

A reconciliation of the unrecognized tax benefits for the fiscal years ended May 31 is as follows:



Gross unrecognized benefits at May 31, 2008	$	33.1
Decreases related to prior year tax positions		(1.2	)
Increase related to prior year tax position		—
Increases related to current year tax positions		1.7
Settlements during the period		—
Lapse of statute of limitation		—

Gross unrecognized benefits at May 31, 2009	$	33.6
Decreases related to prior year tax positions		(17.6	)
Increase related to prior year tax position		15.1
Increases related to current year tax positions		4.0
Settlements during the period		(1.3	)
Lapse of statute of limitation		(3.2	)

Gross unrecognized benefits at May 31, 2010	$	30.6
Decreases related to prior year tax positions		(2.9	)
Increase related to prior year tax position		2.5
Increases related to current year tax positions		2.8
Settlements during the period		(2.2	)
Lapse of statute of limitation		—

Gross unrecognized benefits at May 31, 2011	$	30.8

Unrecognized tax benefits for the Company increased by $0.2 and decreased by $3.0 for the years ended May 31, 2011 and 2010, respectively. Although the timing of the resolution and/or closure on audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next twelve months. However, given the number of years remaining subject to examination and the number of matters being examined, the Company is unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits.

The Company, including subsidiaries, files income tax returns in the U.S., various states and various foreign jurisdictions. The Company is routinely audited by various tax authorities. During the year, the IRS completed the audit for the fiscal years ended May 31, 2004, 2005 and 2006. The IRS has disallowed certain deductions. The Company is contesting the disallowance. At May 31, 2011, the Company is currently under audit by the Internal Revenue Service for its fiscal years ended May 31, 2007, 2008 and 2009. The Company is also currently under audit by New York State for its fiscal years ended May 31, 2002, 2003 and 2004 and New York City for its fiscal years ended May 31, 2005, 2006 and 2007. If any of these tax examinations are concluded within the next twelve months, the Company will make any necessary adjustments to its unrecognized tax benefits.

Non-income Taxes

The Company is subject to tax examinations for sales-based taxes. A number of these examinations are ongoing and, in certain cases, have resulted in assessments from taxing authorities. Where appropriate, the Company has made accruals for these matters which are reflected in the Company’s Consolidated Financial Statements.

CAPITAL STOCK AND STOCK-BASED AWARDS

12 Months Ended

May 31, 2011

Capital Stock And Stock Based Awards [Text Block]

10. CAPITAL STOCK AND STOCK-BASED AWARDS

Scholastic Corporation has authorized capital stock of: 4,000,000 shares of Class A Stock; 70,000,000 shares of Common Stock; and 2,000,000 shares of Preferred Stock.

Class A Stock and Common Stock

The only voting rights vested in the holders of Common Stock, except as required by law, are the election of such number of directors as shall equal at least one-fifth of the members of the Board. The Class A Stockholders are entitled to elect all other directors and to vote on all other matters. The Class A Stockholders and the holders of Common Stock are entitled to one vote per share on matters on which they are entitled to vote. The Class A Stockholders have the right, at their option, to convert shares of Class A Stock into shares of Common Stock on a share-for-share basis.

With the exception of voting rights and conversion rights, and as to the rights of holders of Preferred Stock if issued, the Class A Stock and the Common Stock are equal in rank and are entitled to dividends and distributions, when and if declared by the Board.

At May 31, 2011, there were 1,656,200 shares of Class A Stock and 29,316,691 shares of Common Stock outstanding. At May 31, 2011, there were 1,499,000 shares of Class A stock authorized for issuance under the Company’s stock-based compensation plans. At May 31, 2011, Scholastic Corporation had reserved for issuance 8,385,923 shares of Common Stock, which includes both shares of Common Stock that were reserved for issuance under the Company’s stock-based compensation plans and 3,155,200 shares of Common Stock that were reserved for the potential issuance of Common Stock upon conversion of the outstanding shares of Class A Stock and shares of Class A Stock reserved for issuance under the Company’s stock-based compensation plans.

Preferred Stock

The Preferred Stock may be issued in one or more series, with the rights of each series, including voting rights, to be determined by the Board before each issuance. To date, no shares of Preferred Stock have been issued.

Stock-based awards

At May 31, 2011, the Company maintained two stockholder-approved employee stock-based compensation plans with regard to the Common Stock: the Scholastic Corporation 1995 Stock Option Plan (the “1995 Plan”), under which no further awards can be made; and the Scholastic Corporation 2001 Stock Incentive Plan (the “2001 Plan”). The 2001 Plan provides for the issuance of: incentive stock options, which qualify for favorable treatment under the Internal Revenue Code; options that are not so qualified, called non-qualified stock options; restricted stock; and other stock-based awards.

The Company’s stock-based compensation vests over periods not exceeding four years. Provisions in the Company’s stock-based compensation plans allow for the acceleration of vesting for certain retirement eligible employees, as well as in certain other events.

Stock Options – At May 31, 2011, non-qualified stock options to purchase 316,740 shares and 3,289,126 shares of Common Stock were outstanding under the 1995 Plan and 2001 Plan, respectively. During fiscal 2011, Mr. Robinson was granted 250,000 options at an exercise price of $22.81 under the 2001 Plan, and an additional 303,200 options were granted under the 2001 Plan to other employees at a weighted average exercise price of $23.59.

At May 31, 2011, 409,189 shares of Common Stock were available for additional awards under the 2001 Plan.

The Company also maintains the 1997 Outside Directors’ Stock Option Plan (the “1997 Directors’ Plan”), a stockholder-approved stock option plan for outside directors under which no further awards may be made. The 1997 Directors’ Plan, as amended, provided for the automatic grant to each non-employee director on the date of each annual stockholders’ meeting of non-qualified stock options to purchase 6,000 shares of Common Stock.

At May 31, 2011, options to purchase 210,000 shares of Common Stock were outstanding under the 1997 Directors’ Plan.

In September 2007, the Corporation adopted the Scholastic Corporation 2007 Outside Directors’ Stock Option Plan (the “2007 Directors’ Plan”). The 2007 Directors’ Plan provides for the automatic grant to each non-employee director on the date of each annual stockholders’ meeting of non-qualified stock options to purchase 3,000 shares of Common Stock at a purchase price per share equal to the fair market value of a share of Common Stock on the date of grant and 1,200 restricted stock units. In September 2010, 27,000 options at an exercise price of $25.61 per share and 10,800 restricted stock units were granted under the 2007 Directors’ Plan. As of May 31, 2011, 90,000 options were outstanding under the 2007 Directors’ Plan and 371,600 shares of Common Stock remained available for additional awards under the 2007 Directors’ Plan.

The Scholastic Corporation 2004 Class A Stock Incentive Plan (the “Class A Plan”) provided for the grant to Richard Robinson, the Chief Executive Officer of the Corporation as of the effective date of the Class A Plan, of options to purchase Class A Stock (the “Class A Options”). In fiscal 2011, there were no awards granted under the Class A Plan. At May 31, 2011, there were 1,499,000 Class A Options granted to Mr. Robinson outstanding, and no shares of Class A Stock remained available for additional awards under the Class A Plan.

Generally, options granted under the various plans may not be exercised for a minimum of one year after the date of grant and expire approximately ten years after the date of grant. The total intrinsic value of stock options exercised during the years ended May 31, 2011, 2010 and 2009 was $0.4, $0.3 and $0.0, respectively. The intrinsic value of these stock options is deductible by the Company for tax purposes upon exercise. The total pretax compensation cost for stock-based payment arrangements recognized in income for fiscal 2011, 2010 and 2009 was $13.7, $14.0 and $11.6, respectively. The Company amortizes the fair value of stock options as stock-based compensation expense over the requisite service period on a straight-line basis, or sooner if the employee effectively vests by meeting certain retirement provisions. The total tax benefit related to stock-based compensation expense for fiscal 2011, 2010 and 2009 was $1.8, $2.1 and $1.9, respectively.

As of May 31, 2011, the total pretax compensation cost not yet recognized by the Company with regard to outstanding unvested stock options was $5.1. The weighted average period over which this compensation cost is expected to be recognized is 1.6 years.

The following table sets forth the stock option activity for the Class A Stock and Common Stock plans for the fiscal year ended May 31, 2011:


	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value

Outstanding at May 31, 2010		5,589,156		$	31.26
Granted		580,200			23.59
Exercised		(104,100	)		26.52
Expired		(519,250	)		33.27
Cancellations and forfeitures		(141,140	)		33.27

Outstanding at May 31, 2011		5,404,866		$	30.28		5.3		5.8
Exercisable at May 31, 2011		3,924,015			32.20		4.3		1.3

Restricted Stock Units – In addition to stock options, the Company has issued restricted stock units to certain officers and key executives under the 2001 Plan (“Stock Units”). During fiscal 2011 and 2010, the Company granted 141,600 and 401,541 Stock Units, respectively, with weighted average grant date prices of $25.03 and $20.11 per share, respectively. The Stock Units automatically convert to shares of Common Stock on a one-for-one basis as the award vests, which is typically over a four-year period beginning thirteen months from the grant date and thereafter annually on the anniversary of the grant date. There were 166,553 shares of Common Stock issued upon conversion of Stock Units during fiscal 2011. The Company measures the value of Stock Units at fair value based on the number of Stock Units granted and the price of the underlying Common Stock on the grant date. The Company amortizes the fair value of outstanding Stock Units as stock-based compensation expense over the requisite service period on a straight-line basis, or sooner if the employee effectively vests by meeting certain retirement eligibility requirements. As of May 31, 2011, the total pretax compensation cost not yet recognized by the Company with regard to unvested Stock Units was $6.0. The weighted average period over which this compensation cost is expected to be recognized is 2.4 years.

Management Stock Purchase Plan - The Company maintains a Management Stock Purchase Plan (“MSPP”), which allows certain members of senior management to defer up to 100% of their annual cash bonus payments in the form of restricted stock units (“RSUs”). The RSUs are purchased by the employee at a 25% discount from the lowest closing price of the Common Stock on NASDAQ on any day during the fiscal quarter in which such bonuses are payable and are converted into shares of Common Stock on a one-for-one basis at the end of the applicable deferral period. During fiscal 2011 and 2010, the Company allocated 121,550 RSUs and 17,191 RSUs, respectively, to participants under the MSPP at a price of $16.90 and $13.90 per RSU, respectively. At May 31, 2011, there were 201,128 shares of Common Stock remaining authorized for issuance under the MSPP. The Company measures the value of RSUs at fair value based on the number of RSUs granted and the price of the underlying Common Stock on the grant date, giving effect to the 25% discount. The Company amortizes this discount as stock-based compensation expense over the vesting term on a straight-line basis, or sooner if the employee effectively vests by meeting certain retirement provisions. As of May 31, 2011, the total pretax compensation cost not yet recognized by the Company with regard to unvested RSUs was $0.2. The weighted average period over which this compensation cost is expected to be recognized is 2.0 years.

The following table sets forth Stock Unit and RSU activity for the year ended May 31, 2011:



	Stock Units/RSUs			Weighted Average grant date fair value

Nonvested as of May 31, 2010		663,430		$	9.22
Granted		273,950			21.43
Vested		(166,553	)		24.37
Forfeited		(18,423	)		21.74

Nonvested as of May 31, 2011		752,404		$	21.51

The total fair value of shares vested during the fiscal years ended May 31, 2011, 2010 and 2009 was $4.1, $2.6 and $3.7, respectively.

Employee Stock Purchase Plan

The Company maintains an Employee Stock Purchase Plan (the “ESPP”), which is offered to eligible United States employees. The ESPP permits participating employees to purchase Common Stock, with after-tax payroll deductions, on a quarterly basis at a 15% discount from the closing price of the Common Stock on NASDAQ on the last business day of the fiscal quarter. The Company recognizes the fair value of the Common Stock issued under the ESPP as stock-based compensation expense in the quarter in which the employees participated in the plan. During fiscal 2011 and 2010, the Company issued 88,370 shares and 73,021 shares of Common Stock under the ESPP at a weighted average price of $22.75 and $20.82 per share, respectively. At May 31, 2011, there were 342,940 shares of Common Stock remaining authorized for issuance under the ESPP.

TREASURY STOCK

12 Months Ended

May 31, 2011

Treasury Stock [Text Block]

11. TREASURY STOCK

On June 1, 2007, the Corporation entered into an agreement with a financial institution to repurchase $200.0 of its outstanding Common Stock under an Accelerated Share Repurchase Agreement (the “ASR”). The entire $200.0 repurchase was executed under a “collared” transaction whereby a price range for the shares was established. Under the ASR, the Corporation initially received 5.1 million shares on June 28, 2007 (the “Initial Execution Date”), representing the minimum number of shares to be received based on a calculation using the “cap” or high-end of the price range collar. On October 29, 2007 (the “Settlement Date”), the Corporation received an additional 0.7 million shares at no additional cost, bringing the total number of shares repurchased under the ASR to 5.8 million shares, which is reflected in the Treasury Stock component of Stockholders’ Equity. The total number of shares received under the ASR was determined based on the adjusted volume weighted average price of the Common Stock, as defined in the ASR, during the four month period from the Initial Execution Date through the Settlement Date, which was $34.64 per share.

On December 20, 2007, the Company announced that its Board of Directors had authorized a program to repurchase up to $20.0 of Common Stock, from time to time as conditions allow, on the open market or through negotiated private transactions. During the five months ended May 31, 2008, the Corporation purchased approximately 0.7 million shares on the open market for approximately $20.0 at an average cost of $30.09 per share. On May 28, 2008, the Company announced that its Board of Directors had authorized a new program to repurchase up to $20.0 of Common Stock as conditions allow, on the open market or through negotiated private transactions. On November 20, 2008, the Board of Directors authorized a further program to repurchase up to an additional $10.0 of Common Stock and, on February 4, 2009, the Board of Directors authorized an additional program to repurchase up to another $5.0 of Common Stock, in each case, from time to time as conditions allow, on the open market. On December 16, 2009, the Company announced that its Board of Directors had authorized a further program to repurchase up to $20.0 of Common Stock, from time to time as conditions allow, on the open market or in negotiated private transactions. During the twelve months ended May 31, 2011, the Company repurchased approximately 0.4 million shares on the open market for approximately $9.7 at an average cost of $24.98 per share.

In addition, pursuant to a subsequent Board of Directors authorization, on November 3, 2010 the Company completed a modified Dutch auction tender offer. The Company accepted for purchase 5,199,699 Common shares at a price of $30.00 per share for a total cost of $156.0, excluding related fees and expenses. The Common shares purchased pursuant to the tender offer represented approximately 15.1% of the Common shares outstanding as of October 27, 2010. The Company funded the purchase of the shares in the tender offer using cash on hand and short term borrowings under its existing credit facility, which borrowings were repaid prior to November 30, 2010. Fees for the modified Dutch auction tender offer were $1.2.

As of May 31, 2011, $44.5 remains available for future purchases under the current Board of Directors authorizations, which purchases may be made from time to time as conditions allow, on the open market or in negotiated private transactions. The repurchase program may be suspended at any time without prior notice.

See Part II, Item 5, “Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.”

EMPLOYEE BENEFIT PLANS

12 Months Ended

May 31, 2011

Pension and Other Postretirement Benefits Disclosure [Text Block]

12. EMPLOYEE BENEFIT PLANS

Pension Plans

The Company has a cash balance retirement plan (the “Pension Plan”), which covers the majority of United States employees who meet certain eligibility requirements. The Company funds all of the contributions for the Pension Plan. Benefits generally are based on the Company’s contributions and interest credits allocated to participants’ accounts based on years of benefit service and annual pensionable earnings. It is the Company’s policy to fund the minimum amount required by the Employee Retirement Income Security Act of 1974, as amended. Effective June 1, 2009, no further benefits will accrue to employees under the Pension Plan. Accordingly, the Company recognized a curtailment loss of $0.5 associated with this action in fiscal 2009.

Scholastic Ltd., an indirect subsidiary of Scholastic Corporation located in the United Kingdom, has a defined benefit pension plan (the “UK Pension Plan”) that covers its employees who meet various eligibility requirements. Benefits are based on years of service and on a percentage of compensation near retirement. The UK Pension Plan is funded by contributions from Scholastic Ltd. and its employees.

Grolier Ltd., an indirect subsidiary of Scholastic Corporation located in Canada, provided a defined benefit pension plan (the “Grolier Canada Pension Plan”) that covered its employees who met certain eligibility requirements. All full-time employees were eligible to participate in the plan after two years of employment. Employees were not required to contribute to the fund. In fiscal 2011, the Company completed the settlement of its outstanding liabilities under the Grolier Canada Pension Plan by purchasing non-participating annuities to service these liabilities prospectively. Accordingly, net liabilities of $1.3 were settled with $1.2 of contributions above plan assets and the Company recognized $4.2 of expense in fiscal 2011 related to the settlement of this pension plan.

The Company’s pension plans have a measurement date of May 31, 2011.

Post-Retirement Benefits

The Company provides post-retirement benefits to retired United States-based employees (the “Post-Retirement Benefits”) consisting of certain healthcare and life insurance benefits. Employees may become eligible for these benefits after completing certain minimum age and service requirements. At May 31, 2011, the unrecognized prior service credit remaining was $1.5.

Effective June 1, 2009, the Company modified the terms of the Post Retirement Benefits, effectively excluding a large percentage of employees from the plan. Accordingly, the Company recognized a $3.0 curtailment gain associated with this action in fiscal 2009.

The Medicare Prescription Drug, Improvement and Modernization Act (the “Medicare Act”) introduced a prescription drug benefit under Medicare (“Medicare Part D”) as well as a Federal subsidy of 28% to sponsors of retiree health care benefit plans providing a benefit that is at least actuarially equivalent to Medicare Part D. The Company has determined that the Post-Retirement Benefits provided to the retiree population are in aggregate the actuarial equivalent of the benefits under Medicare. As a result, in fiscal 2011, 2010 and 2009, the Company recognized a cumulative reduction of its accumulated post-retirement benefit obligation of $3.0, $2.8 and $9.4, respectively, due to the federal subsidy under the Medicare Act.

The following table sets forth the weighted average actuarial assumptions utilized to determine the benefit obligations for the Pension Plan, the UK Pension Plan and the Grolier Canada Pension Plan (collectively the “Pension Plans”), including the Post-Retirement Benefits, at May 31:


	Pension Plans									Post-Retirement Benefits

	2011			2010			2009			2011			2010			2009


Weighted average assumptions used to determine benefit obligations:
Discount rate		5.1	%		5.4	%		6.5	%		5.0	%		5.4	%		6.7	%
Rate of compensation increase		4.3	%		4.3	%		3.6	%		—			—			—
Weighted average assumptions used to determine net periodic benefit cost:
Discount rate		5.3	%		6.7	%		6.5	%		5.4	%		6.7	%		6.6	%
Expected long-term return on plan assets		7.5	%		7.7	%		8.5	%		—			—			—
Rate of compensation increase		4.3	%		3.6	%		3.6	%		—			—			—

Beginning in fiscal 2011, the Company selected a discount rate which more closely matches the future obligations and projected cash flows of the Pension Plans.

To develop the expected long-term rate of return on assets assumption for the Pension Plans, the Company considers historical returns and future expectations. Considering this information and the potential for lower future returns due to a generally lower interest rate environment, the Company selected an assumed weighted average long-term rate of return of 7.5% for all of the Pension Plans. The following table sets forth the change in benefit obligation for the Pension Plans and Post-Retirement Benefits at May 31:


	Pension Plans						Post-Retirement Benefits

	2011			2010			2011			2010


Change in benefit obligation:
Benefit obligation at beginning of year	$	171.1		$	153.9		$	34.4		$	23.3
Service cost		0.3			0.1			—			—
Interest cost		8.9			9.7			1.9			1.6
Plan participants’ contributions		—			—			0.5			0.4
Settlements		(7.5	)		(1.3	)		—			—
Curtailment gain		—			(0.3	)		—			—
Actuarial losses		6.0			21.4			4.7			12.0
Foreign currency translation		3.7			(2.6	)		—			—
Benefits paid, including expenses		(8.6	)		(9.8	)		(3.2	)		(2.9	)

Benefit obligation at end of year	$	173.9		$	171.1		$	38.3		$	34.4

The following table sets forth the change in plan assets for the Pension Plans and Post-Retirement Benefits at May 31:


	Pension Plans						Post-Retirement Benefits

	2011			2010			2011			2010

Change in plan assets:
Fair value of plan assets at beginning of year	$	126.5		$	105.3		$	—		$	—
Actual return on plan assets		24.6			18.1			—			—
Employer contributions		9.2			15.9			2.7			2.5
Benefits paid, including expenses		(8.6	)		(9.7	)		(3.2	)		(2.9	)
Settlements		(7.5	)		(1.3	)		—			—
Measurement change and other adjustments		—			(0.2	)		—			—
Plan participants’ contributions		—			—			0.5			0.4
Foreign currency translation		2.5			(1.6	)		—			—

Fair value of plan assets at end of year	$	146.7		$	126.5		$	—		$	—

The following table sets forth the net funded status of the Pension Plans and Post-Retirement Benefits and the related amounts recognized on the Company’s Consolidated Balance Sheets at May 31:


Amounts recognized in the Consolidated Balance Sheets	Pension Plans						Post-Retirement Benefits

	2011			2010			2011			2010

Current liabilities	$	—		$	—		$	(2.8	)	$	(2.5	)
Non-current liabilities		(27.2	)		(44.6	)		(35.5	)		(31.9	)

Net funded balance	$	(27.2	)	$	(44.6	)	$	(38.3	)	$	(34.4	)

The following pretax amounts were recognized in Accumulated other comprehensive loss for the Pension Plans and Post- Retirement Benefits in the Company’s Consolidated Balance Sheets at May 31:



	Pension Plans			2011 Post - Retirement Benefits			Total			Pension Plans			2010 Post - Retirement Benefits			Total

Net actuarial loss	$	(56.4	)	$	(21.3	)	$	(77.7	)	$	(69.5	)	$	(19.2	)	$	(88.7	)
Net prior service credit		—			1.5			1.5			—			2.2			2.2

Net amount recognized in accumulated other comprehensive loss	$	(56.4	)	$	(19.8	)	$	(76.2	)	$	(69.5	)	$	(17.0	)	$	(86.5	)

The estimated net loss and prior service cost for the Pension Plans that will be amortized from Accumulated other comprehensive loss into net periodic benefit cost over the Company’s fiscal year ending May 31, 2012 are $1.4 and less than $0.1, respectively. The estimated net loss and prior service credit for the Post-Retirement Benefits that will be amortized from Accumulated other comprehensive loss into net periodic benefit cost over the fiscal year ending May 31, 2012 are $4.1 and $0.6, respectively. Income tax expense of $4.0 and income tax benefit of $9.1 were recognized in accumulated other comprehensive income at May 31, 2011 and 2010, respectively.

The accumulated benefit obligation for the Pension Plans was $172.8 and $170.3 at May 31, 2011 and 2010, respectively. The following table sets forth information with respect to the Pension Plans with accumulated benefit obligations in excess of plan assets for the fiscal years ended May 31:



	2011		2010

Projected benefit obligations	$	173.9	$	171.1
Accumulated benefit obligations		172.8		170.3
Fair value of plan assets		146.7		126.5

The following table sets forth the net periodic cost for the Pension Plans and Post-Retirement Benefits for the fiscal years ended May 31:



	Pension Plans									Post - Retirement Benefits

	2011			2010			2009			2011			2010			2009

Components of net periodic benefit cost:
Service cost	$	0.3		$	0.1		$	7.8		$	—		$	—		$	0.1
Interest cost		8.9			9.7			10.5			1.9			1.6			1.5
Expected return on assets		(9.4	)		(8.1	)		(11.5	)		—			—			—
Net amortization and deferrals		—			(0.1	)		(0.1	)		(0.7	)		(0.7	)		(0.8	)
Curtailment loss (gain)		—			—			0.5			—			—			(3.0	)
Settlement		4.2			0.8			—			—			—			—
Special termination benefits		—			—			0.7			—			—			—
Recognized net actuarial loss		1.8			1.6			1.9			2.6			1.2			0.6

Net periodic cost (benefit)	$	5.8		$	4.0		$	9.8		$	3.8		$	2.1		$	(1.6	)

Plan Assets

The Company’s investment policy with regard to the assets in the Pension Plans is to actively manage, within acceptable risk parameters, certain asset classes where the potential exists to outperform the broader market.

The following table sets forth the total weighted average asset allocations for the Pension Plans by asset category at May 31:



	2011			2010

Equity securities		68.7	%		60.9	%
Debt securities		23.4	%		32.4	%
Real estate		1.1	%		0.7	%
Other		6.8	%		6.0	%

		100.0	%		100.0	%

The following table sets forth the weighted average target asset allocations for the Pension Plans included in the Company’s investment policy:



	US Pension Plan			UK Pension Plan

Equity		70	%		52	%
Debt and cash equivalents		30	%		14	%
Real estate and other		0	%		34	%

		100	%		100	%

The fair values of the Company’s Pension Plans’ assets are measured using Level 1, Level 2 and Level 3 fair value measurements. The fair values of the Level 1 Pension Plans’ assets are determined based on quoted market prices in active markets for identical assets. The fair values of the Level 2 and Level 3 Pension Plans’ assets are based on the net asset values of the funds, which are based on quoted market prices of the underlying investments. For a more complete description of fair value measurements see Note 19, “Fair Value Measurements.”

The following table sets forth the measurement of the Company’s Pension Plans’ assets at fair value by asset category at the respective dates:


	Assets at Fair Value as of May 31, 2011

	Level 1		Level 2		Level 3		Total

Cash and cash equivalents	$	4.4	$	—	$	—	$	4.4
Equity securities:
U.S. ⁽¹⁾		89.2		—		—		89.2
International ⁽²⁾		—		11.5		—		11.5
Fixed Income ⁽³⁾		31.1		3.1		—		34.2
Annuities		—		—		5.7		5.7
Real estate ⁽⁴⁾		—		1.7		—		1.7

Total	$	124.7	$	16.3	$	5.7	$	146.7


	Assets at Fair Value as of May 31, 2010

	Level 1		Level 2		Level 3		Total


Cash and cash equivalents	$	2.5	$	—	$	—	$	2.5
Equity securities:
U.S. ⁽¹⁾		54.0		—		—		54.0
International ⁽²⁾		13.7		9.4		—		23.1
Fixed Income ⁽³⁾		34.7		6.3		—		41.0
Annuities		—		—		4.9		4.9
Real estate ⁽⁴⁾		—		1.0		—		1.0

Total	$	104.9	$	16.7	$	4.9	$	126.5


(1)	Funds which invest in a diversified portfolio of publicly traded U.S. common stocks of large-cap, medium-cap and small-cap companies. There are no restrictions on these investments.

(2)	Funds which invest in a diversified portfolio of publicly traded common stock of non-U.S. companies, primarily in Europe and Asia. There are no restrictions on these investments.

(3)	Funds which invest in a diversified portfolio of publicly traded government bonds, corporate bonds and mortgage-backed securities. There are no restrictions on these investments.

(4)	Represents assets of a non-U.S. entity plan invested in a fund whose underlying investments are comprised of properties. The fund has publicly available quoted market prices and there are no restrictions on these investments.

The Company purchases annuities to service fixed payments to certain retired plan participants in the UK. These annuities are purchased from investment grade counterparties. These annuities are not traded on open markets, and are therefore valued based upon the actuarial determined valuation, and related assumptions, of the underlying projected benefit obligation, a Level 3 valuation technique. The fair value of these assets was $5.7 and $4.9 at May 31, 2011 and May 31, 2010, respectively.

Contributions

In fiscal 2012, the Company expects to contribute $3.9 to the Pension Plans.

Estimated future benefit payments

The following table sets forth the expected future benefit payments under the Pension Plans and the Post-Retirement Benefits by fiscal year:



			Post - Retirement

	Pension Benefits		Benefit Payments		Medicare Subsidy Receipts


2012	$	14.6	$	3.0	$	0.2
2013		12.0		3.1		0.3
2014		14.7		3.2		0.3
2015		11.2		3.2		0.3
2016		11.4		3.2		0.3
2017-2021		52.5		15.3		1.6

Assumed health care cost trend rates at May 31:

Assumed health care cost trend rates could have a significant effect on the amounts reported for the post-retirement health care plan. A one percentage point change in assumed health care cost trend rates would have the following effects:



	2011			2010

Total service and interest cost - 1% increase	$	0.2		$	0.1
Total service and interest cost - 1% decrease		(0.2	)		(0.1	)
Post-retirement benefit obligation - 1% increase		4.1			3.6
Post-retirement benefit obligation - 1% decrease		(3.5	)		(3.1	)

Defined contribution plans

The Company also provides defined contribution plans for certain eligible employees. In the United States, the Company sponsors a 401(k) retirement plan and has contributed $6.9, $5.0 and $7.1 for fiscal 2011, 2010 and 2009, respectively.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph q
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 8
-Subparagraph m
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-2
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 30
-Paragraph 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS106-2
-Paragraph 20, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Implementation Guide (Q and A)
-Number FAS88
-Paragraph 63
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

+ Details

ACCRUED SEVERANCE

12 Months Ended

May 31, 2011

Restructuring and Related Activities Disclosure [Text Block]

13. ACCRUED SEVERANCE

The table below provides information regarding the Company’s severance cost associated with certain cost reduction measures. Accrued severance of $1.9 and $3.4 as of May 31, 2011 and 2010, respectively, is included in “Other accrued expenses” on the Company’s Consolidated Balance Sheets.



	2011			2010

Beginning balance	$	3.4		$	3.4
Accruals		6.7			9.2
Payments		(8.2	)		(9.2	)

Ending balance	$	1.9		$	3.4

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References + Details

EARNINGS (LOSS) PER SHARE

12 Months Ended

May 31, 2011

Earnings Per Share [Text Block]

14. EARNINGS (LOSS) PER SHARE

A portion of the Company’s Stock Units granted to employees participate in earnings through cumulative non-forfeitable dividends payable to the employees upon vesting of the Stock Units. For periods in which the Company has Net income, basic earnings per Common and Class A shares outstanding (the “Issued Shares”) is calculated as the lesser of:


	•	Net earnings divided by the weighted average shares outstanding of the Issued Shares during the period (the “Treasury Stock Method”); or

	•	The sum of earnings distributed in the period to the Issued Shares and undistributed earnings available to the Issued Shares (excluding earnings attributable to the participating Stock Units) divided by the weighted average shares outstanding of the Issued Shares during the period (the “Two-Class Method”).

Diluted earnings per share for periods in which the Company has net income is calculated as the lesser of:


	•	The Treasury Stock Method incorporating the effect of dilutive shares; or

	•	The Two-Class Method incorporating the effect of dilutive shares.

In periods of net loss, dilutive earnings per share are not reported as the effect of the potentially dilutive shares becomes anti-dilutive. Options that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive totaled: 4,341,331 at May 31, 2011; 5,264,202 at May 31, 2010; and 6,198,855 at May 31, 2009.

In a period in which the Company reports a discontinued operation, Earnings (loss) from continuing operations is used as the “control number” in determining whether potentially dilutive common shares are dilutive or anti-dilutive. The Company calculates per share figures prior to rounding in millions.

The following table summarizes the reconciliation of the numerators and denominators for the Basic and Diluted earnings (loss) per share computation for the fiscal years ended May 31:



	2011			2010			2009


Earnings from continuing operations attributable to Class A and Common Shares	$	43.3		$	58.7		$	7.0
Loss from discontinued operations attributable to Class A and Common Shares, net of tax		(4.2	)		(2.6	)		(21.3	)
Net income (loss) attributable to Class A and Common Shares		39.1			56.1			(14.3	)
Weighted average Shares of Class A Stock and Common Stock outstanding for basic earnings per share (in millions)		33.1			36.5			37.2


Dilutive effect of Class A Stock and Common Stock potentially issuable pursuant to stock-based compensation plans (in millions)		0.5			0.3			0.2


Adjusted weighted average Shares of Class A Stock and Common Stock outstanding for diluted earnings per share (in millions)		33.6			36.8			37.4


Earnings (loss) per share of Class A Stock and Common Stock:
Basic earnings (loss) per share:
Earnings from continuing operations	$	1.31		$	1.61		$	0.19
Loss from discontinued operations, net of tax	$	(0.13	)	$	(0.07	)	$	(0.57	)
Net income (loss)	$	1.18		$	1.54		$	(0.38	)

Diluted earnings (loss) per share:
Earnings from continuing operations	$	1.29		$	1.59		$	0.19
Loss from discontinued operations, net of tax	$	(0.13	)	$	(0.07	)	$	(0.57	)
Net income (loss)	$	1.16		$	1.52		$	(0.38	)

Earnings from continuing operations exclude earnings of $0.3 for the year ended May 31, 2011, in respect of earnings attributable to participating Stock Units.

See Note 11, “Treasury Stock.”

OTHER ACCRUED EXPENSES

12 Months Ended

May 31, 2011

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

15. OTHER ACCRUED EXPENSES

Other accrued expenses consist of the following at May 31:



	2011		2010

Accrued payroll, payroll taxes and benefits	$	70.6	$	74.4
Accrued other taxes		25.6		8.9
Accrued commissions		13.9		15.9
Accrued advertising and promotions		25.4		23.6
Other accrued expenses		37.9		33.4

Total accrued expenses	$	173.4	$	156.2

OTHER (EXPENSE) INCOME

12 Months Ended

May 31, 2011

Other Income and Other Expense Disclosure [Text Block]

16. OTHER (EXPENSE) INCOME

Other (expense) income, net for fiscal 2011 was $0.4 consisting of transaction costs incurred for a business acquisition in fiscal 2011. Other (expense) income, net for fiscal 2010 was $0.9 consisting of a gain related to the repurchase of 5% Notes. Other income, net for fiscal 2009 was $0.7 consisting of a gain of $0.4 related to the repurchase of 5% Notes and a gain of $0.3 related to an accelerated payment of a note.

OTHER FINANCIAL DATA

12 Months Ended

May 31, 2011

Other Financial Data Disclosure [Text Block]

17. OTHER FINANCIAL DATA

Advertising expenses, including direct response and non-direct response advertising, were $163.4, $156.3, and $169.7 for the fiscal years ended May 31, 2011, 2010 and 2009, respectively.

Prepublication and production costs were $125.1, $117.8 and $127.5 at May 31, 2011, 2010 and 2009, respectively. The Company amortized $51.1, $51.0 and $44.8 of prepublication and production costs for the fiscal years ended May 31, 2011, 2010 and 2009, respectively.

Other accrued expenses include a reserve for unredeemed credits issued in conjunction with the Company’s school-based book club and book fair operations of $9.0 and $7.2 at May 31, 2011 and 2010, respectively.

The components of Accumulated other comprehensive loss at May 31, 2011 and 2010 include $2.7 and $28.0, respectively, of foreign currency translation and $76.2 ($51.2 net of tax) and $86.5 ($57.4 net of tax), respectively, of pension obligations.

Included in Operating income is $1.3 loss, a $0.5 gain and a $1.0 loss resulting from foreign currency transactions for the years ended May 31, 2011, 2010 and 2009, respectively

The Company had contractual commitments relating to minimum print quantities at May 31, 2011 totaling $504.9. During the fiscal years ended May 31, 2011, 2010 and 2009, the Company made purchases related to contractual commitments relating to minimum print quantities of $44.4, $39.1 and $31.3 respectively.

DERIVATIVES AND HEDGING

12 Months Ended

May 31, 2011

Derivative Instruments and Hedging Activities Disclosure [Text Block]

18. DERIVATIVES AND HEDGING

The Company enters into foreign currency derivative contracts to economically hedge the exposure to foreign currency fluctuations associated with the forecasted purchase of inventory and the foreign exchange risk associated with certain receivables denominated in foreign currencies. These derivative contracts are economic hedges and are not designated as cash flow hedges. The Company marks-to-market these instruments and records the changes in the fair value of these items in current earnings, and it recognizes the unrealized gain or loss in other current assets or liabilities. Unrealized losses of $0.5 were recognized at May 31, 2011 and unrealized gains of $1.1 were recognized at May 31, 2010, respectively.

- Definition

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 45
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
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+ Details

FAIR VALUE MEASUREMENTS

12 Months Ended

May 31, 2011

Fair Value Disclosures [Text Block]

19. FAIR VALUE MEASUREMENTS

The Company determines the appropriate level in the fair value hierarchy for each fair value measurement of assets and liabilities carried at fair value on a recurring basis in the Company’s financial statements. The fair value hierarchy prioritizes the inputs, which refer to assumptions that market participants would use in pricing an asset or liability, based upon the highest and best use, into three levels as follows:


•	Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.

•	Level 2 Observable inputs other than unadjusted quoted prices in active markets for identical assets or liabilities such as

		o	Quoted prices for similar assets or liabilities in active markets

		o	Quoted prices for identical or similar assets or liabilities in inactive markets

		o	Inputs other than quoted prices that are observable for the asset or liability

		o	Inputs that are derived principally from or corroborated by observable market data by correlation or other means

•	Level 3 Unobservable inputs in which there is little or no market data available, which are significant to the fair value measurement and require the Company to develop its own assumptions.

The Company’s financial assets and liabilities measured at fair value consisted of cash and cash equivalents, debt and foreign currency forward contracts. Cash and cash equivalents are comprised of bank deposits and short-term investments, such as money market funds, the fair value of which is based on quoted market prices, a Level 1 fair value measure. The Company employs Level 2 fair value measurements for its 5% Notes and its various lines of credit. For a more complete description, see Note 5, “Debt.” The fair values of foreign currency forward contracts, used by the Company to manage the impact of foreign exchange rate changes to the financial statements, are based on quotations from financial institutions, a Level 2 fair value measure. See Note 18, “Derivatives and Hedging,” for a more complete description of fair value measurements employed.

Non financial assets and liabilities for which the Company employs fair value measures on a non-recurring basis include:


	•	long-lived assets

	•	investments

	•	assets acquired in a business combination

	•	goodwill and indefinite-lived intangible assets

	•	long-lived assets held for sale

Level 2 and Level 3 inputs are employed by the Company in the fair value measurement of these assets and liabilities. In fiscal 2011, the Company recognized a loss related to an other-than-temporary impairment of $3.6 for a UK-based cost method investment. The Company utilized Level 3 measurements in the fair value assessment (see Note 7, “Investments”). In fiscal 2011, the Company recognized a loss of $3.4 related to an impairment of goodwill. In fiscal 2010, the Company recognized impairments of goodwill and indefinite-lived and long-lived assets totaling $43.1. The Company used Level 3 inputs in its determination of the fair value of these impaired assets. See Note 8, “Goodwill and Other Intangibles,” for a discussion of the fair value measures employed in these asset impairment analyses.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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+ Details

SUBSEQUENT EVENTS

12 Months Ended

May 31, 2011

Schedule of Subsequent Events [Table Text Block]

20. SUBSEQUENT EVENTS

On July 20, 2011, the Board of Directors declared a regular cash dividend of $0.10 per Class A and Common share in respect of the first quarter of fiscal 2012. The dividend is payable on September 15, 2011 to shareholders of record on August 31, 2011.