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Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	May 31, 2019	Jun. 30, 2019	Nov. 30, 2018
Document Information [Line Items]
Entity Registrant Name	SCHOLASTIC CORP
Document Type	10-K
Current Fiscal Year End Date	--05-31
Entity Public Float			$ 1,368,279,434
Amendment Flag	false
Entity Central Index Key	0000866729
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Small Business	false
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Filer Category	Large Accelerated Filer
Entity Well-known Seasoned Issuer	Yes
Document Period End Date	May 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,656,200
Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		33,163,721

Consolidated Statements of Operations - USD ($) $ in Millions	12 Months Ended
	May 31, 2019	May 31, 2018	May 31, 2017
Income Statement [Abstract]
Revenues	$ 1,653.9	$ 1,628.4	$ 1,741.6
Operating costs and expenses:
Cost of goods sold	779.9	744.6	814.5
Selling, general and administrative expenses	781.4	765.7	777.5
Depreciation and amortization	56.1	41.4	38.7
Severance	10.6	9.9	14.9
Asset impairments	0.9	11.2	6.8
Total operating costs and expenses	1,628.9	1,572.8	1,652.4
Operating income	25.0	55.6	89.2
Interest income	5.6	3.1	1.4
Interest expense	(2.2)	(2.0)	(2.4)
Other components of net periodic benefit (cost)	(1.4)	(58.2)	(0.3)
Gain (loss) on investments and other	1.0	0.0	0.0
Earnings (loss) from continuing operations before income taxes	26.0	(1.5)	87.9
Provision (benefit) for income taxes	10.4	3.5	35.4
Earnings (loss) from continuing operations	15.6	(5.0)	52.5
Earnings (loss) from discontinued operations, net of tax	0.0	0.0	(0.2)
Earnings (loss) from discontinued operations, net of tax	0.0	0.0	(0.2)
Net income (loss)	15.6	(5.0)	52.3
Less: Net income (loss) attributable to noncontrolling interest	0.0	0.0	0.0
Net income (loss)	$ 15.6	$ (5.0)	$ 52.3
Basic:
Earnings (loss) from continuing operations (in Dollars per share)	$ 0.44	$ (0.14)	$ 1.51
Earnings (loss) from discontinued operations (in Dollars per share)	0.00	0.00	0.00
Net income (loss) (in Dollars per share)	0.44	(0.14)	1.51
Diluted:
Earnings (loss) from continuing operations (in Dollars per share)	0.43	(0.14)	1.48
Earnings (loss) from discontinued operations (in Dollars per share)	0.00	0.00	(0.01)
Net income (loss) (in Dollars per share)	0.43	(0.14)	1.47
Dividends declared per common share (in Dollars per share)	$ 0.6	$ 0.6	$ 0.6

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	12 Months Ended
	May 31, 2019	May 31, 2018	May 31, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 15.6	$ (5.0)	$ 52.3
Other comprehensive income (loss), net:
Foreign currency translation adjustments	(5.2)	3.4	(5.3)
Pension and postretirement adjustments (net of tax)	1.2	35.1	(2.2)
Total other comprehensive income (loss)	(4.0)	38.5	(7.5)
Comprehensive income (loss)	11.6	33.5	44.8
Less: Net income (loss) attributable to noncontrolling interest	0.0	0.0	0.0
Comprehensive income (loss)	$ 11.6	$ 33.5	$ 44.8

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Consolidated Balance Sheets - USD ($)	May 31, 2019	May 31, 2018
Current Assets:
Cash and cash equivalents	$ 334,100,000	$ 391,900,000
Accounts receivable, net	250,100,000
Inventories, net	323,700,000
Prepaid expenses and other current assets	52,700,000
Total current assets	960,600,000	958,300,000
Noncurrent Assets:
Property, plant and equipment, net	577,700,000	555,600,000
Prepublication costs, net	70,200,000	55,300,000
Royalty advances, net	47,500,000	44,800,000
Goodwill	125,200,000	119,200,000
Noncurrent deferred income taxes	37,000,000
Other assets and deferred charges	60,300,000	67,000,000
Total noncurrent assets	917,900,000	867,100,000
Total assets	1,878,500,000	1,825,400,000
Current Liabilities:
Lines of credit and current portion of long-term debt	7,300,000	7,900,000
Accounts payable	195,300,000	198,900,000
Accrued royalties	41,900,000	34,600,000
Deferred revenue	130,800,000
Other accrued expenses	164,800,000
Accrued income taxes	1,400,000	1,800,000
Total current liabilities	541,500,000	445,800,000
Noncurrent Liabilities:
Long-term debt	0	0
Other noncurrent liabilities	64,200,000	58,800,000
Total noncurrent liabilities	64,200,000	58,800,000
Commitments and Contingencies:	0	0
Stockholders’ Equity:
Preferred Stock, $1.00 par value: Authorized, 2.0 shares; Issued and Outstanding, none	0	0
Additional paid-in capital	620,800,000	614,400,000
Accumulated other comprehensive income (loss)	(59,700,000)	(55,700,000)
Retained earnings	1,012,600,000
Treasury stock at cost	(302,600,000)	(303,500,000)
Total stockholders' equity of Scholastic Corporation	1,272,800,000	1,320,800,000
Total stockholders’ equity	1,300,000	0
Total stockholders’ equity	1,271,500,000	1,320,800,000
Total liabilities and stockholders’ equity	1,878,500,000	1,825,400,000
Class A Stock [Member]
Stockholders’ Equity:
Common Stock	0	0
Common Stock [Member]
Stockholders’ Equity:
Common Stock	$ 400,000	$ 400,000

Consolidated Balance Sheets (Parentheticals) - $ / shares	May 31, 2019	May 31, 2018
Preferred stock par value (in Dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Treasury stock (in shares)	9,500,000	9,600,000
Common Stock [Member]
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	42,900,000	42,900,000
Common Stock, shares outstanding	33,410,323	33,300,000
Class A Stock [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	1,700,000	1,700,000
Common Stock, shares outstanding	1,656,200	1,700,000

Consolidated Statement of Changes in Stockholders’ Equity - USD ($) shares in Millions, $ in Millions	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]	Treasury Stock At Cost [Member]	Parent [Member]	Noncontrolling Interest [Member]	Class A Stock [Member] Common Stock [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 1,257.6
Balance at May. 31, 2016		$ 0.4	$ 600.7	$ (86.7)	$ 1,059.8	$ (316.6)	$ 1,257.6		$ 0.0
Balance (in Shares) at May. 31, 2016		32.7							1.7
Net Income (loss)	52.3				52.3		52.3
Foreign currency translation adjustment	(5.3)			(5.3)			(5.3)
Pension and postretirement adjustments, net of tax	(2.2)			(2.2)			(2.2)
Stock-based compensation	10.1		10.1				10.1
Proceeds pursuant to stock-based compensation plans	22.5		22.5				22.5
Proceeds from issuance of common stock pursuant to stock-based compensation (in Shares)		0.0
Purchases of treasury stock at cost	(6.9)					(6.9)	(6.9)
Purchases of treasury stock at cost (in Shares)		(0.2)
Treasury stock issued pursuant to equity-based plans	0.7		(26.5)			27.2	0.7
Treasury stock issued pursuant to stock purchase plans (in Shares)		0.9
Dividends	(20.9)				(20.9)		(20.9)
Balance at May. 31, 2017		$ 0.4	606.8	(94.2)	1,091.2	(296.3)	1,307.9		$ 0.0
Balance (in Shares) at May. 31, 2017		33.4							1.7
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,307.9
Net Income (loss)	(5.0)				(5.0)		(5.0)
Foreign currency translation adjustment	3.4			3.4			3.4
Pension and postretirement adjustments, net of tax	35.1			35.1			35.1
Stock-based compensation	10.7		10.7				10.7
Proceeds pursuant to stock-based compensation plans	15.8		15.8				15.8
Proceeds from issuance of common stock pursuant to stock-based compensation (in Shares)		0.0
Purchases of treasury stock at cost	(27.2)					(27.2)	(27.2)
Purchases of treasury stock at cost (in Shares)		(0.7)
Treasury stock issued pursuant to equity-based plans	1.1		(18.9)			20.0	1.1
Treasury stock issued pursuant to stock purchase plans (in Shares)		0.6
Dividends	(21.0)				(21.0)		(21.0)
Balance at May. 31, 2018	1,320.8	$ 0.4	614.4	(55.7)	1,065.2	(303.5)	1,320.8		$ 0.0
Balance (in Shares) at May. 31, 2018		33.3							1.7
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,320.8
Net Income (loss)	15.6				15.6		15.6
Foreign currency translation adjustment	(5.2)			(5.2)			(5.2)
Pension and postretirement adjustments, net of tax	1.2			1.2			1.2
Stock-based compensation	8.3		8.3				8.3
Proceeds pursuant to stock-based compensation plans	6.0		6.0				6.0
Proceeds from issuance of common stock pursuant to stock-based compensation (in Shares)		0.0
Purchases of treasury stock at cost	$ (8.5)					(8.5)	(8.5)
Purchases of treasury stock at cost (in Shares)	(0.2)	(0.2)
Treasury stock issued pursuant to equity-based plans	$ 1.5		(7.9)			9.4	1.5
Treasury stock issued pursuant to stock purchase plans (in Shares)		0.3
Dividends	(21.2)				(21.2)		(21.2)
Fair value of noncontrolling interest in Make Believe Ideas Limited	1.3							$ 1.3
Balance at May. 31, 2019	1,271.5	$ 0.4	$ 620.8	$ (59.7)	$ 1,012.6	$ (302.6)	$ 1,271.5	$ 1.3	$ 0.0
Balance (in Shares) at May. 31, 2019		33.4							1.7
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 1,272.8

Consolidated Statement of Changes in Stockholders Equity (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	May 31, 2019	May 31, 2018	May 31, 2017
Statement of Stockholders' Equity [Abstract]
Pension and postretirement adjustments, tax portion	$ 0.5	$ 20.9	$ 0.4
Income Tax Effects Allocated Directly to Equity, Cumulative Effect of Change in Accounting Principle	$ 16.0

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	May 31, 2019	May 31, 2018	May 31, 2017
Cash flows - operating activities:
Net income (loss)	$ 15,600,000	$ (5,000,000)	$ 52,300,000
Earnings (loss) from discontinued operations, net of tax	0	0	(200,000)
Earnings (loss) from continuing operations	15,600,000	(5,000,000)	52,500,000
Adjustments to reconcile earnings (loss) from continuing operations to net cash provided by (used in) operating activities of continuing operations:
Provision for losses on accounts receivable	7,000,000	9,500,000	11,000,000
Provision for losses on inventory	20,800,000	18,400,000	16,000,000
Provision for losses on royalty advances	6,800,000	4,100,000	4,300,000
Pension settlement	0	57,300,000	0
Amortization of prepublication and production costs	22,400,000	21,800,000	23,300,000
Depreciation and amortization	59,300,000	44,200,000	39,100,000
Amortization of pension and postretirement actuarial gains and losses	700,000	2,200,000	2,100,000
Deferred income taxes	3,300,000	7,700,000	15,500,000
Stock-based compensation	8,300,000	10,700,000	10,100,000
Income from equity investments	(5,900,000)	(4,800,000)	(5,300,000)
Non cash write off related to asset impairments	900,000	11,200,000	6,800,000
(Gain) loss on investments	1,000,000	0	0
Changes in assets and liabilities, net of amounts acquired:
Accounts receivable	(11,900,000)	(12,900,000)	(15,200,000)
Inventories	(49,800,000)	(27,400,000)	(29,400,000)
Prepaid expenses and other current assets	15,500,000	(22,100,000)	24,900,000
Royalty advances	(9,800,000)	(7,000,000)	(2,300,000)
Accounts payable	11,800,000	45,900,000	(6,000,000)
Other accrued expenses	(19,600,000)	(3,100,000)	3,100,000
Accrued income taxes	(900,000)	(1,100,000)	1,200,000
Accrued royalties	7,900,000	(300,000)	2,900,000
Deferred revenue	20,100,000	200,000	800,000
Pension and postretirement obligations	(2,700,000)	(4,300,000)	(5,300,000)
Other noncurrent liabilities	6,700,000	(1,100,000)	(3,700,000)
Returns liability	4,500,000	0	0
Other, net	4,400,000	(2,600,000)	(4,200,000)
Total adjustments	100,800,000	146,500,000	89,700,000
Net cash provided by (used in) operating activities of continuing operations	116,400,000	141,500,000	142,200,000
Net cash provided by (used in) operating activities of discontinued operations	0	0	(800,000)
Net cash provided by (used in) operating activities	116,400,000	141,500,000	141,400,000
Cash flows - investing activities:
Prepublication and production expenditures	(38,100,000)	(36,100,000)	(26,900,000)
Additions to property, plant and equipment	(95,000,000)	(121,500,000)	(65,700,000)
Other investment and acquisition-related payments	(18,500,000)	(4,400,000)	(10,100,000)
Cash acquired through acquisition	4,300,000	0	0
Net cash provided by (used in) investing activities of continuing operations	(147,300,000)	(162,000,000)	(102,700,000)
Changes in restricted cash held in escrow for discontinued assets	0	0	9,900,000
Net cash provided by (used in) investing activities	(147,300,000)	(162,000,000)	(92,800,000)
Cash flows - financing activities:
Borrowings under lines of credit	58,800,000	44,900,000	28,300,000
Repayments of lines of credit	(60,100,000)	(42,000,000)	(28,500,000)
Repayment of capital lease obligations	(1,600,000)	(1,300,000)	(1,100,000)
Reacquisition of common stock	(8,500,000)	(27,300,000)	(6,900,000)
Proceeds pursuant to stock-based compensation plans	6,000,000	15,800,000	25,400,000
Payment of dividends	(21,100,000)	(21,100,000)	(20,800,000)
Other	800,000	(1,000,000)	(500,000)
Net cash provided by (used in) financing activities	(25,700,000)	(32,000,000)	(4,100,000)
Effect of exchange rate changes on cash and cash equivalents	(1,200,000)	300,000	(100,000)
Net increase (decrease) in cash and cash equivalents	(57,800,000)	(52,200,000)	44,400,000
Cash and cash equivalents at beginning of period	391,900,000	444,100,000	399,700,000
Cash and cash equivalents at end of period	334,100,000	391,900,000	444,100,000
Supplemental Information:
Income tax payments (refunds)	2,500,000	14,500,000	3,000,000
Interest paid	1,300,000	1,400,000	1,400,000
Non cash: Property, plant and equipment additions accrued in accounts payable	$ 6,100,000	$ 23,700,000	$ 14,400,000

Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

May 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies

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 the world’s largest publisher and distributor of children’s books, a leading provider of print and digital instructional materials for grades pre-kindergarten ("pre-K") to grade 12 and a producer of educational and entertaining children’s media. The Company creates quality books and ebooks, print and technology-based learning materials and programs, classroom magazines and other products that, in combination, offer schools, as well as parents and children, customized and comprehensive solutions to support children’s learning and reading both at school and at home. Since its founding in 1920, Scholastic has emphasized quality products and a dedication to reading, learning and literacy. The Company is the leading operator of school-based book club and book fair proprietary channels. It distributes its products and services through these 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. Scholastic has operations in the United States and throughout the world including Canada, the United Kingdom, Australia, New Zealand and Asia and, through its export business, sells products in approximately 165 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. Certain reclassifications have been made to conform to the current year presentation.

Discontinued operations

During the twelve month periods ended May 31, 2019, 2018 and 2017, the Company did not dispose of any components of the business that would meet the criteria of discontinued operations.

Use of estimates

The Company’s Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). 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. On an on-going basis, the Company evaluates the adequacy of its reserves and the estimates used in calculations, including, but not limited to:


•	Accounts receivable allowance for doubtful accounts


•	Pension and other postretirement obligations


•	Uncertain tax positions


•	The timing and amount of future income taxes and related deductions


•	Inventory reserves


•	Cost of goods sold from book fair operations during interim periods based on estimated gross profit rates


•	Sales tax contingencies


•	Royalty advance reserves and royalty expense accruals


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


•	Assets and liabilities acquired in business combinations


•	Variable consideration related to anticipated returns


•	Allocation of transaction price to contractual performance obligations

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 relate to the sale of children's books and other products to book fair sponsors. In addition, the Company employs an incentive program to encourage the sponsorship of book fairs and increase the number of fairs held each school year. The Company identifies two potential performance obligations within its school-based book fair contracts, which include the fulfillment of book fairs product and the fulfillment of product upon the redemption of incentive program credits by customers. The Company allocates the transaction price to each performance obligation and recognizes revenue at a point in time. The Company utilizes certain estimates based on historical experience, redemption patterns and future expectations related to the participation in the incentive program to determine the relative fair value of each performance obligation when allocating the transaction price. Changes in these estimates could impact the timing of the recognition of revenue. Revenue allocated to the book fair product is recognized at the point at which

product is delivered to the customer and control is transferred. The revenue allocated to the incentive

program credits is recognized upon redemption of incentive credits and the transfer of control of the redeemed

product. Incentive credits are generally redeemed within 12 months of issuance. Payment for school-based

book fairs product is due at the completion of a customer's fair.

Trade – Revenue from the sale of children’s books for distribution in the retail channel is primarily recognized when performance obligations are satisfied and control is transferred to the customer, 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 control of the product is 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. Revenue for ebooks, which is generally the net amount received from the retailer, is recognized upon electronic delivery to the customer by the retailer. The sale of trade product includes a right of return.

Education – Revenue from the sale of educational materials is recognized upon shipment of the products, or upon acceptance of product by the customer depending on individual contractual terms. Revenues from professional development services are recognized when the services have been provided to the customer.

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 recognized in accordance with royalty agreements at the time the licensed materials are available to the licensee.

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

Magazine Advertising – Revenue is recognized when the magazine is for sale and available to 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.

The Company has elected to present sales and other related taxes on a net basis, excluded from revenues, and as such, these are included within Other accrued expenses until remitted to taxing authorities.

Cash equivalents

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

Accounts receivable

Accounts receivable are recognized net of allowances for doubtful accounts. 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. Reserves for estimated bad debts are established at the time of sale and are based on an evaluation of accounts receivable aging, and, where applicable, specific reserves on a customer-by-customer basis, creditworthiness of the Company’s customers 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 uncollectible, the balance is then written off. Accounts receivable allowance for doubtful accounts was $11.6 and $12.4 as of May 31, 2019 and 2018, respectively.

Estimated returns

For sales that include a right of return, the Company will estimate the transaction price and record revenues as variable consideration based on the amounts the Company expects to ultimately be entitled. In order to determine estimated returns, the Company utilizes historical return rates, sales patterns, types of products and expectations and recognizes a corresponding reduction to Revenues and Cost of goods sold. Management also considers patterns of sales and returns in the months preceding the fiscal year, as well as actual returns received subsequent to the fiscal year, available customer and market specific data and other return rate information that management believes is relevant. In addition, a refund liability is recorded within Other accrued expenses for the consideration to which the Company believes it will not ultimately be entitled and a return asset is recorded within Prepaid expenses and other current assets for the expected inventory to be returned. Actual returns could differ from the Company's estimate.

Inventories

Inventories, consisting principally of books, are stated at the lower of cost, using the first-in, first-out method, or net realizable value. The Company records a reserve for excess and obsolete inventory based upon a calculation using the historical usage rates by channel, the 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 recognized on a straight-line basis over the estimated useful lives of the assets. Buildings have estimated useful life, for purposes of depreciation, of forty years. Building improvements are depreciated over the life of the improvement which typically does not exceed twenty-five years. Capitalized software, net of accumulated amortization, was $43.9 and $44.7 at May 31, 2019 and 2018, respectively. Capitalized software is amortized over a period of three to seven years. Amortization expense for capitalized software was $25.4, $16.3 and $12.9 for the fiscal years ended May 31, 2019, 2018 and 2017, 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. The Company evaluates the depreciation periods of property, plant and equipment to determine whether events or circumstances indicate that the asset’s carrying value is not recoverable or 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 in Depreciation and amortization expense, 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. Sublease income is recognized on a straight-line basis over the duration of each lease term. To the extent expected sublease income is less than expected rental payments the Company recognizes a loss on the difference between the present value of the minimum lease payments under each lease. The Company also receives lease payments from retail stores that utilize the Broadway-facing space of the Company's headquarters location in New York City. Lease payments received are presented as a reduction to rent expense in Selling, general and administrative expenses.

Prepublication costs

Prepublication costs are incurred in all of the Company’s reportable segments. Prepublication costs include costs incurred to create and develop the art, prepress, editorial, digital conversion and other content required for the creation of the master copy of a book or other media. Prepublication costs are amortized on a straight-line basis over a two-to-five-year period based on expected future revenues. The Company regularly reviews the recoverability of these capitalized costs based on expected future profitability.

Royalty advances

Royalty advances are incurred in all of the Company’s reportable segments, but are most prevalent in the Children’s Book Publishing and Distribution segment and enable the Company to obtain contractual commitments from authors to produce content. The Company regularly provides authors with advances against expected future royalty payments, often before the books are written. Upon publication and sale of the books or other media, the authors generally will not receive further royalty payments until the contractual royalties earned from sales of such books or other media exceed such advances.

Royalty advances are initially capitalized and subsequently expensed as related revenues are earned or when the Company determines future recovery through earndowns 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 recoveries through earndowns. Additionally, the Company’s editorial staff regularly reviews its portfolio of royalty advances to determine if individual royalty advances are not recoverable through earndowns 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. The reserve for royalty advances was $102.9 and $97.0 as of May 31, 2019 and 2018, respectively.

Goodwill and intangible assets

Goodwill and other intangible assets with indefinite lives are not amortized and are reviewed for impairment annually as of May 31 or more frequently if impairment indicators arise.

With regard to goodwill, the Company compares the estimated fair values of its identified reporting units to the carrying values of their net assets. The Company first performs a qualitative assessment to determine whether it is more likely than not that the fair values of its identified reporting units are less than their carrying values. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company performs the two-step goodwill impairment test. 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 reporting unit, 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 seven reporting units with goodwill subject to impairment testing.

With regard to other intangibles with indefinite lives, the Company first performs a qualitative assessment to determine whether it is more likely than not that the fair value of the identified asset is less than its carrying value. If it is more likely than not that the fair value of the asset is less than its carrying amount, the Company performs a quantitative test. 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, intellectual property and other agreements and are amortized over their expected useful lives. Customer lists are amortized on a straight-line basis over five to ten years, while other agreements are amortized on a straight-line basis over their contractual term. Intellectual property assets are amortized over their remaining useful lives, which is approximately five years.

Income taxes

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

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.

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. Any required adjustment to the income tax provision would be reflected in the period that the Company changes this assessment.

On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act. The Tax Cuts and Jobs Act imposes a new minimum tax on global intangible low-taxed income ("GILTI") earned by foreign subsidiaries. The Financial Accounting Standards Board ("FASB") Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity may make an accounting policy election to either recognize deferred taxes for temporary differences expected to be reserved as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. The Company elects to recognize the tax on GILTI as a period expense in the period the tax is incurred.

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 a sales tax liability with respect to a jurisdiction is probable and can be reliably estimated, the Company has made accruals for these matters which are reflected in the Company’s Consolidated Financial Statements. These amounts are included in the Consolidated Financial Statements in Selling, general and administrative expenses. Future developments relating to the foregoing could result in adjustments being made to these accruals.

Other noncurrent liabilities

The rate assumptions discussed below impact the Company’s calculations of its UK pension and U.S. postretirement obligations. The rates applied by the Company are based on the UK pension plan asset portfolio's past average rates of return, discount rates and actuarial information. Any change in market performance, interest rate performance, assumed health care cost trend rate and compensation rates could result in significant changes in the Company’s UK pension plan and U.S. postretirement obligations. The U.S. Pension Plan was terminated in fiscal 2018.

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 postretirement benefits are accounted for using actuarial valuations.

UK Pension Plan

The Company’s UK Pension Plan 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 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 component of net periodic pension costs.

U.S. Pension Plan

The Company's U.S. Pension Plan was terminated in fiscal 2018. There are no actuarial assumptions reflected in any U.S. Pension Plan estimates and there is no ongoing net periodic benefit cost.

Other postretirement benefits – The Company provides postretirement benefits, consisting of healthcare and life insurance benefits, to eligible retired U.S.-based employees. The postretirement 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 existing benefit obligation 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 service and interest cost component of net periodic postretirement 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 weighted 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 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

Advertising costs are expensed by the Company as incurred. Total advertising expense was $106.8, $110.0 and $121.0 for the twelve months ended May 31, 2019, 2018 and 2017, respectively.

Stock-based compensation

The Company recognizes the cost of services received in exchange for any stock-based awards. The Company recognizes the cost on a straight-line basis over an award’s requisite service period, which is generally the vesting period, except for the grants to retirement-eligible employees, 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 those 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 annually 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 recognized as a cumulative adjustment in the period such estimates are revised.

The table set forth below provides the estimated fair value of options granted by the Company during fiscal years 2019, 2018 and 2017 and the significant weighted average assumptions used in determining such fair value under the Black-Scholes option-pricing model. The average 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.



	2019			2018			2017
Estimated fair value of stock options granted	$	11.97		$	10.45		$	12.70
Assumptions:
Expected dividend yield	1.4		%	1.5		%	1.5		%
Expected stock price volatility	28.4		%	29.8		%	36.6		%
Risk-free interest rate	3.0		%	2.1		%	1.5		%
Average expected life of options	6 years			6 years			6 years

New Accounting Pronouncements

Current Fiscal Year Adoptions:

Topic 606, Revenue from Contracts with Customers

In May 2014, the Financial Accounting Standards Board (the "FASB") issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ("Topic 606"). ASU No. 2014-09, along with various amendments that comprise Topic 606, provide a single model for use in accounting for revenue from contracts with customers and supersedes the previous revenue recognition guidance, including certain industry-specific and transaction-specific guidance. The core principle of Topic 606 is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services.

The Company adopted Topic 606 on June 1, 2018 and elected to apply Topic 606 using the modified retrospective method. The Company determined that the adoption of Topic 606 had the following impact: (i) a deferral of certain revenue associated with the Company's book fairs incentive program (reflected in Deferred revenue), (ii) recognition of a refund liability (recorded as an increase to Other accrued expenses) and a return asset (recorded as an increase to Prepaid expenses and other current assets) for the right to recover products from customers upon settling the refund liability based on expected returns and (iii) recognition of previously capitalized direct-response advertising costs as incurred, primarily related to the classroom magazines business. See Note 2, "Revenues," for a discussion of the Company's revenue recognition accounting following the adoption of Topic 606.

Forthcoming Adoptions:

ASU No. 2016-02, ASU No. 2018-10, ASU No. 2018-11 and ASU 2019-01

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) which supersedes existing guidance on accounting for leases in ASC Topic 840, Leases. The amendments in this ASU, among other things, retains a dual model to account for classifying leases as either financing or operating and generally require all leases to be recorded on the balance sheet, through the recognition of right-of-use assets and corresponding lease liabilities. The lease liability should be measured at the present value of the lease payments over the lease term. The right-of-use asset should be measured at the lease liability amount, adjusted for lease prepayments, lease incentives received and lessee's initial direct costs (e.g., commissions). The guidance also requires specific qualitative and quantitative disclosures about leasing activities. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases and ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provide an additional (and optional) transition method whereby the new lease standard is applied at the adoption date and recognized as an adjustment to retained earnings.

A modified retrospective approach is required for adoption for all leases that exist at the date of initial application with an option to use certain practical expedients. The Company expects to use the practical expedients that allow the Company to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. The Company additionally expects to use the practical expedient that allows lessees to treat the lease and non-lease components of leases as a single lease component. The Company will adopt this standard at the adoption date of June 1, 2019, using the transition method that allows the Company to initially apply Topic 842 as of June 1, 2019 and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company does not expect to recognize an adjustment to retained earnings upon adoption. The Company is also assessing the impact of Topic 842 on its internal controls over financial reporting.

The adoption of Topic 842 will have a material impact on the consolidated balance sheet due to the recognition of right-of-use assets and lease liabilities. The Company currently expects to recognize right-of-use assets and lease liabilities related to operating leases totaling between $75.0 and $90.0 upon adoption. The adoption of Topic 842 is not expected to have a material impact on the consolidated income statement or the consolidated cash flow statement. SInce the Company is adopting Topic 842 using the transition method, the guidance will not be applied to periods prior to adoption and thus the adoption of Topic 842 will have no impact on the Company's previously reported results.

ASU 2018-15

In August 2018, the FASB issued ASU No. 2018-15, Intangibles— Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, which reduces the complexity in accounting for costs of implementing a cloud computing service arrangement. This standard aligns the accounting for implementation costs of hosting arrangements, regardless of whether they convey a license to the hosted software. The ASU aligns the following requirements for capitalizing implementation costs: (1) those incurred in a hosting arrangement that is a service contract and (2) those incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license).

The ASU is effective for the Company in the first quarter of fiscal 2021 and the Company has elected to early adopt in the first quarter of fiscal 2020. As the Company increasingly engages third parties to provide SaaS services, the Company expects to recognize additional assets within Prepaid expenses and other assets and additional expense within Selling, general and administrative expenses related to capitalized implementation costs. In addition, these amounts will be included within the operating section of the Company's Consolidated statement of cash flows.

ASU 2018-02

In February 2018, the FASB issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220)—Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this Update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement-Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by U.S. GAAP.

The Update will be effective for the Company in the first quarter of fiscal 2020. The Company does not expect the amendments in this ASU to have a material impact on its consolidated financial position, results of operations and cash flows.

ASU 2016-13

In June 2016, the FASB issued ASU No. 2016-13, "Measurement of Credit Losses on Financial Instruments" (ASU 2016-13). ASU 2016-13, which was further updated and clarified by the FASB through the issuance of additional related ASUs, amends the guidance surrounding measurement and recognition of credit losses on financial assets measured at amortized cost, including trade receivables and debt securities, by requiring recognition of an allowance for credit losses expected to be incurred over an asset's lifetime based on relevant information about past events, current conditions, and supportable forecasts impacting its ultimate collectibility. This "expected loss" model may result in earlier recognition of credit losses than the current "as incurred" model, under which losses are recognized only upon an occurrence of an event that gives rise to the incurrence of a probable loss.

The ASU will be effective for the Company in the first quarter of fiscal 2021, with early adoption permitted. The Company is currently evaluating the impact that ASU 2016-13 will have on its consolidated financial position, results of operations and cash flows.

ASU 2017-04

In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which removes step two from the goodwill impairment test (comparison of implied fair value of goodwill with the carrying amount of that goodwill for a reporting unit). Instead, an entity should measure its goodwill impairment by the amount the carry value exceeds the fair value of a reporting unit.

The ASU will be effective for the Company in the first quarter of fiscal 2021. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact that ASU 2017-04 will have on its consolidated financial position, results of operations and cash flows.

Revenues Revenues

12 Months Ended

May 31, 2019

Revenue from Contract with Customer [Abstract]

Revenues

REVENUES

Adoption of Topic 606, Revenue from Contracts with Customers

In May 2014, the FASB issued Topic 606 which provides a single accounting model for revenue from contracts with customers and supersedes the previous revenue recognition guidance, including certain industry-specific and transaction-specific guidance. The core principle of Topic 606 is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services.

The Company adopted Topic 606 on June 1, 2018 and elected to apply Topic 606 using the modified retrospective method. The Company determined that the adoption of Topic 606 had the following impact: (i) a deferral of certain revenue associated with the Company's book fairs incentive program (reflected in Deferred revenue), (ii) recognition of a refund liability (recorded as an increase to Other accrued expenses) and a return asset (recorded as an increase to Prepaid expenses and other current assets) for the right to recover products from customers upon settling the refund liability based on expected returns and (iii) recognition of previously capitalized direct response advertising costs as incurred, primarily related to the magazines business.

Transition

The Company applied Topic 606 to all contracts as of the date of initial adoption, June 1, 2018. The cumulative effect of adopting Topic 606 was a $47.0 decrease to the opening balance of Retained earnings as of June 1, 2018.

The cumulative effect of the changes made to the Company’s Consolidated Balance Sheet at June 1, 2018 are as follows:



	As reported - May 31, 2018		Adjustments due to adoption				June 1, 2018
Accounts receivable, net	$	204.9	$	31.1		⁽¹⁾	$	236.0
Inventories, net	294.9		(1.9		)	⁽²⁾	293.0
Prepaid expenses and other current assets	66.6		(4.3		)	⁽²⁾⁽³⁾	62.3
Noncurrent deferred income taxes	25.2		16.0			⁽⁴⁾	41.2
Deferred revenue	24.7		86.8			⁽⁵⁾	111.5
Other accrued expenses	177.9		1.1			⁽⁶⁾	179.0
Retained earnings	1,065.2		(47.0		)		1,018.2

(1) - Primarily represents the reclassification of the Company’s accounting for estimated returns from a reduction to Accounts receivable, net, to a current liability within Other accrued expenses.

(2) - Represents the reclassification of a return asset from Inventory to Prepaid expenses and other current assets.

(3) - Primarily represents the adjustment for previously capitalized direct response advertising costs.

(4) - Represents the income tax impact of Topic 606 adjustments.

(5) - Represents the deferred revenue related to outstanding book fairs incentive credits as of June 1, 2018.

(6) - Represents a reduction to Other accrued expenses of $27.2 for outstanding book fair incentive credits as of June 1, 2018. This decrease was offset by a $28.3 increase for estimated returns recorded to Other accrued expenses.

Application of Topic 606 to the Current Fiscal Year

The comparative prior fiscal period information continues to be reported under the accounting standards in effect during those fiscal periods. The following table illustrates the amounts by which each income statement line item was affected by the adoption of Topic 606:



	May 31, 2019
	As reported			Adjustments			Without adoption of Topic 606
Revenues	$	1,653.9		$	12.8	⁽¹⁾	$	1,666.7
Cost of goods sold	779.9			4.0		⁽¹⁾	783.9
Selling, general and administrative expenses	781.4			1.1		⁽²⁾	782.5
Depreciation and amortization	56.1			—			56.1
Severance	10.6			—			10.6
Asset Impairments	0.9			—			0.9
Operating income (loss)	25.0			7.7			32.7
Interest (income) expense, net	(3.4		)	—			(3.4		)
Other components of net periodic benefit (cost)	(1.4		)	—			(1.4		)
Gain (Loss) on investments and other	(1.0		)	—			(1.0		)
Provision (benefit) for income taxes	10.4			2.1		⁽³⁾	12.5
Net income (loss)	15.6			5.6			21.2
Basic earnings (loss) per share:	$	0.44		$	0.16		$	0.60
Diluted earnings (loss) per share:	$	0.43		$	0.16		$	0.59

(1) - Represents an additional deferral of revenue and reduction of cost of goods sold related to the issuance of book fairs incentive

credits, partially offset by revenue recognized on incentive credits redeemed during the period.

(2) - Represents direct response advertising costs being expensed as incurred.

(3) - Represents the income tax impact of Topic 606 adjustments.

Estimated Returns

As of May 31, 2019, a liability for expected returns of $34.5 was recorded within Other accrued expenses on the Company's Consolidated Balance Sheet. In addition, as of May 31, 2019, a return asset of $1.6 was recorded within Prepaid expenses and other current assets for the recoverable cost of product estimated to be returned by customers.

Deferred Revenue

The Company's contract liabilities consist of advance billings and payments received from customers in excess of revenue recognized and revenue allocated to outstanding book fairs incentive credits. These liabilities are recorded within Deferred revenue on the Company's Consolidated Balance Sheets and are classified as short term, as substantially all of the associated performance obligations are expected to be satisfied, and related revenue recognized, within one year. The amount of revenue recognized during the year ended May 31, 2019 included within the opening Deferred revenue balance was $107.2.

Disaggregated Revenue Data

The following table presents the Company’s revenues disaggregated by region and channel during the year ended May 31:



	2019		2018
Book Clubs	$	212.4	$	224.3
Book Fairs	499.6		513.6
Trade	278.3		232.3
Total Children's Book Publishing & Distribution	990.3		970.2

Education	297.4		288.6

Major Markets⁽¹⁾	254.9		258.3
Other Markets⁽²⁾	111.3		111.3
Total International	366.2		369.6
Total Revenues	$	1,653.9	$	1,628.4

(1) - Includes Canada, UK, Australia and New Zealand.

(2) - Primarily includes markets in Asia.

Segment Information

12 Months Ended

May 31, 2019

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company categorizes its businesses into three reportable segments: Children’s Book Publishing and Distribution and Education, which comprise the Company's domestic operations, and International.


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


•	Education includes the publication and distribution to schools and libraries of children’s books, classroom magazines, supplemental and core classroom materials and programs and related support services, 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.


•	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 three operating segments.

The following table sets forth information for the Company’s segments for the three fiscal years ended May 31:



	Children's Book Publishing & Distribution		Education		Overhead ⁽¹⁾			Total Domestic		International		Total
2019
Revenues	$	990.3	$	297.4	$	—		$	1,287.7	$	366.2	$	1,653.9
Bad debts	3.8		1.4		—			5.2		1.8		7.0
Depreciation and amortization⁽²⁾	23.7		9.5		41.7			74.9		6.8		81.7
Asset impairments	—		—		0.9			0.9		—		0.9
Segment operating income (loss)	82.9		30.6		(102.3		)	11.2		13.8		25.0
Segment assets at May 31, 2019	523.4		214.7		887.6			1,625.7		252.8		1,878.5
Goodwill at May 31, 2019	47.0		68.2		—			115.2		10.0		125.2
Expenditures for other non-current assets⁽³⁾	75.2		22.6		77.6			175.4		13.5		188.9
Other non-current assets at May 31, 2019⁽³⁾	175.0		116.3		507.7			799.0		65.3		864.3
2018
Revenues	$	970.2	$	288.6	$	—		$	1,258.8	$	369.6	$	1,628.4
Bad debts	4.4		1.4		—			5.8		3.7		9.5
Depreciation and amortization⁽²⁾	23.3		7.4		29.1			59.8		6.2		66.0
Asset impairments	0.2		—		11.0			11.2		—		11.2
Segment operating income (loss)	105.8		33.9		(101.8		)	37.9		17.7		55.6
Segment assets at May 31, 2018	434.8		202.4		927.9			1,565.1		260.3		1,825.4
Goodwill at May 31, 2018	40.9		68.3		—			109.2		10.0		119.2
Expenditures for other non-current assets⁽³⁾	58.6		19.2		104.5			182.3		15.3		197.6
Other non-current assets at May 31, 2018⁽³⁾	151.2		101.8		492.7			745.7		74.3		820.0
2017
Revenues	$	1,061.2	$	303.6	$	—		$	1,364.8	$	376.8	$	1,741.6
Bad debts	4.2		1.1		—			5.3		5.7		11.0
Depreciation and amortization⁽²⁾	24.1		6.9		24.0			55.0		7.4		62.4
Asset impairments	—		1.1		5.7			6.8		—		6.8
Segment operating income (loss)	143.5		50.3		(124.3		)	69.5		19.7		89.2
Segment assets at May 31, 2017	404.5		191.8		922.2			1,518.5		241.5		1,760.0
Goodwill at May 31, 2017	40.9		68.0		—			108.9		10.0		118.9
Expenditures for other non-current assets⁽³⁾	65.3		20.1		54.5			139.9		11.5		151.4
Other non-current assets at May 31, 2017⁽³⁾	143.6		90.5		418.2			652.3		67.1		719.4

(1)

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 Missouri and its facility located in Connecticut.


(2)	Includes depreciation of property, plant and equipment and amortization of intangible assets and prepublication and production costs.

(3)

Other non-current assets include property, plant and equipment, prepublication assets, production assets, royalty advances, goodwill, intangible assets and investments. Expenditures for other non-current assets for the International reportable segment include expenditures for long-lived assets of $8.2, $10.0 and $6.7 for the fiscal years ended May 31, 2019, 2018 and 2017, respectively. Other non-current assets for the International reportable segment include long-lived assets of $35.9, $36.8 and $33.4 at May 31, 2019, 2018 and 2017, respectively.

Debt

12 Months Ended

May 31, 2019

Debt Disclosure [Abstract]

Debt

DEBT

The following table summarizes the Company's debt as of May 31:



	Carrying Value			Fair Value			Carrying Value			Fair Value
	2019						2018
Loan Agreement:
Revolving Loan	$	—		$	—		$	—		$	—
Unsecured Lines of Credit (weighted average interest rates of 4.1% and 2.9%, respectively)	7.3			7.3			7.9			7.9
Total debt	$	7.3		$	7.3		$	7.9		$	7.9
Less: lines of credit and current portion of long-term debt	(7.3		)	(7.3		)	(7.9		)	(7.9		)
Total long-term debt	$	—		$	—		$	—		$	—

The Company's debt obligations as of May 31, 2019 have maturities of one year or less.

Loan Agreement

On January 5, 2017, Scholastic Corporation and Scholastic Inc. (each, a “Borrower” and together , the “Borrowers”) entered into a 5-year credit facility with certain banks (the “Loan Agreement”). The Loan Agreement replaced the Company's then existing loan agreement and has substantially similar terms, except that:


•	the borrowing limit was reduced to $375.0 from $425.0;

•the “starter” basket for permitted payments of dividends and other payments in respect of capital stock was

increased to $275.0 from $75.0; and

•the maturity date was extended to January 5, 2022.

The prior loan agreement, which was originally entered into in 2007 and had a maturity date of December 5, 2017, was terminated on January 5, 2017 in connection with the entry into the new Loan Agreement and was treated as a debt modification.

The Loan Agreement allows the Company to borrow, repay or prepay and reborrow at any time prior to the January 5, 2022 maturity date. Under the Loan Agreement, interest on amounts borrowed thereunder 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). The interest pricing under the Loan Agreement is dependent upon the Borrower’s election of a rate that is either:


•	A Base Rate equal to the higher of (i) the prime rate, (ii) the prevailing Federal Funds rate plus 0.50% or (iii) the Eurodollar Rate for a one month interest period plus 1.00%, as well as, in each case, an applicable spread ranging from 0.175% to 0.60%, as determined by the Company’s prevailing consolidated debt to total capital ratio.

- or -


•	A Eurodollar Rate equal to the London interbank offered rate (LIBOR) plus an applicable spread ranging from 1.175% to 1.60%, as determined by the Company’s prevailing consolidated debt to total capital ratio.

As of May 31, 2019, the indicated spread on Base Rate Advances was 0.175% and the indicated spread on Eurodollar Advances was 1.175%, both based on the Company’s prevailing consolidated debt to total capital ratio.

The Loan Agreement also provides for the payment of a facility fee in respect of the aggregate amount of revolving credit commitments ranging from 0.20% to 0.40% per annum based upon the Company’s prevailing consolidated debt to total capital ratio. At May 31, 2019, the facility fee rate was 0.20%.

A portion of the revolving credit facility up to a maximum of $50.0 is available for the issuance of letters of credit. In addition, a portion of the revolving credit facility up to a maximum of $15.0 is available for swingline loans. The Loan Agreement has an accordion feature which permits the Company, provided certain conditions are satisfied, to increase the facility by up to an additional $150.0.

As of May 31, 2019 and May 31, 2018, the Company had no outstanding borrowings under the Loan Agreement. At May 31, 2019, the Company had open standby letters of credit totaling $5.3 issued under certain credit lines, including $0.4 under the Loan Agreement and $4.9 under the domestic credit lines discussed below. 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, 2019, the Company was in compliance with these covenants.

Lines of Credit

As of May 31, 2019, the Company’s domestic credit lines available under unsecured money market bid rate credit lines totaled $25.0. There were no outstanding borrowings under these credit lines as of May 31, 2019 and May 31, 2018. As of May 31, 2019, availability under these unsecured money market bid rate credit lines totaled $20.1. 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, 2019, the Company had various local currency credit lines, totaling $24.5, underwritten by banks primarily in the United States, Canada and the United Kingdom. Outstanding borrowings under these facilities were $7.3 at May 31, 2019 at a weighted average interest rate of 4.1%, compared to outstanding borrowings of $7.9 at May 31, 2018 at a weighted average interest rate of 2.9%. As of May 31, 2019, amounts available under these facilities totaled $17.2. 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.

Commitments and Contingencies

12 Months Ended

May 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

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 ten 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 fiscal years ended May 31, 2019, 2018 and 2017 was $22.8, $26.0 and $24.9, respectively. Net rent expense represents rent expense reduced for sublease and rental income.

Amortization of assets under capital leases for buildings and equipment was $1.6, $1.3 and $1.1 for the fiscal years ended May 31, 2019, 2018 and 2017, respectively, and is included in Depreciation and amortization expense.

The following table sets forth the aggregate minimum future annual rental commitments at May 31, 2019 under non-cancelable operating and capital leases for the fiscal years ending May 31:



	Operating Leases		Capital Leases
2020	$	27.8	$	2.0
2021	22.3		2.0
2022	17.7		1.9
2023	12.3		1.7
2024	7.1		1.6
Thereafter	11.7		2.1
Total minimum lease payments	$	98.9	$	11.3
Less: amount representing interest			(1.2		)
Present value of net minimum capital lease payments			$	10.1
Less: current maturities of capital lease obligations			(1.7		)
Long-term capital lease obligations			$	8.4

Other Commitments

The following table sets forth the aggregate minimum future contractual commitments at May 31, 2019 relating to royalty advances and minimum print quantities for the fiscal years ending May 31:



	Royalty Advances		Minimum Print Quantities
2020	$	6.7	$	49.2
2021	2.6		1.7
2022	2.1		1.4
2023	0.2		1.4
2024 and thereafter	—		—
Total commitments	$	11.6	$	53.7

The Company had open standby letters of credit of $5.3 issued under certain credit lines as of May 31, 2019 and 2018, in support of its insurance programs. 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 their expiration.

Contingencies

Various claims and lawsuits arising in the normal course of business are pending against the Company. The Company accrues a liability for such matters when it is probable that a liability has occurred and the amount of such liability can be reasonably estimated. When only a range can be estimated, the most probable amount in the range is accrued unless no amount within the range is a better estimate than any other amount, in which case the minimum amount in the range is accrued. Legal costs associated with litigation are expensed in the period in which they are incurred. The Company does not expect, in the case of those various claims and lawsuits arising in the normal course of business where a loss is considered probable or reasonably possible, that the reasonably possible losses from such claims and lawsuits (either individually or in the aggregate) would have a material adverse effect on the Company’s consolidated financial position or results of operations.

On June 21, 2018, the U.S. Supreme Court issued its opinion in South Dakota v. Wayfair, Inc. et. al., reversing prior precedent, in particular Quill Corp. v. North Dakota (1992), which held that states could not constitutionally require retailers to collect and remit sales or use taxes in respect to mail order or internet sales made to residents of a state in the absence of the retailer having a physical presence in the taxing state. As a result, the Company will now have an obligation, at least on a going forward basis, to collect and remit sales and use taxes, primarily in respect to sales made through its school book club channel, as well as certain sales made through its ecommerce internet sites, to residents in states that the Company has not previously remitted sales or use taxes based on its having no physical presence in such states. In the majority opinion, several factors were discussed in support of the Court’s reasoning that the collection of sales and use taxes from out-of-state retailers did not constitute an undue burden on interstate commerce, including the fact that South Dakota did not require retroactive application of its statute. However, the question of retroactive application, as well as certain other factors noted in the opinion are subject to how the states, on a state-by-state basis, interpret and apply the Court’s decision in their implementation of their respective state laws or regulations addressing the collection of sales and use taxes from out-of-state retailers. As a result, how the decision will affect the Company will depend on the positions taken by the states, on a state-by-state basis, relating to the retroactive application of the obligation to collect such taxes, as well as other factors noted in the opinion. The Company is not in a position at this time to determine or estimate the probable effect of the Court’s decision for retroactive application. However, depending on the positions taken by the respective states, the number of states taking such positions and the time periods for retroactive application, as well as the treatment by the states of other factors noted in the Court’s opinion, the Company could be significantly impacted by the states’ interpretations and applications of the Court’s decision. As of May 31, 2019, the Company’s school book club channel remitted sales taxes in 39 states. Any on-going or future litigation with states relating to sales and use taxes could be impacted favorably or unfavorably by the Court’s decision in future fiscal periods.

Investments	12 Months Ended
Investments	May 31, 2019
Equity Method And Cost Method Investments [Abstract]
Investments	INVESTMENTS Included in Other assets and deferred charges in the Company’s Consolidated Balance Sheets were investments of $29.4 and $31.1 at May 31, 2019 and May 31, 2018, respectively. The Company’s 26.2% equity interest in a children’s book publishing business located in the UK is accounted for using the equity method of accounting. Equity method income from this investment is reported in the International segment. The net carrying value of this investment was $23.4 and $20.5 at May 31, 2019 and May 31, 2018, respectively. In April 2019, the Company acquired an equity investment for $6.0, which provided a 4.6% ownership interest in a financing and production company that will make film, television, and digital programming designed for the youth market. This equity investment does not have a readily determinable fair value and the Company has elected to apply the measurement alternative, and report this investment at cost, less impairment, on the Company's Consolidated Balance Sheets. There have been no impairments or adjustments to the carrying value of this investment. The Company has other equity and cost method investments with a net carrying value of less than $0.1 and less than $0.1 at May 31, 2019 and May 31, 2018, respectively. In fiscal 2018, the Company's 48.5% equity interest in Make Believe Ideas Limited ("MBI"), a UK-based children's book publishing company, was accounted for using the equity method of accounting. As of May 31, 2019, this entity is fully consolidated and the Company no longer has an equity method investment related to MBI due to the additional equity interest acquired in fiscal 2019. Reference is made to Note 9, "Acquisitions," for details of the transaction and the related accounting. In fiscal 2018, equity method income from this investment was reported in the International segment. The net carrying value of this investment was $10.6 at May 31, 2018. Income from equity investments reported in Selling, general and administrative expenses in the Consolidated Statements of Operations totaled $5.9 for the year ended May 31, 2019, $4.8 for the year ended May 31, 2018 and $5.3 for the year ended May 31, 2017.

Property, Plant and Equipment

12 Months Ended

May 31, 2019

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

PROPERTY, PLANT AND EQUIPMENT

The following table summarizes the major classes of assets at cost and accumulated depreciation for the fiscal years ended May 31:



	2019			2018
Land	$	79.1		$	78.9
Buildings	239.1			240.0
Capitalized software	204.0			158.7
Furniture, fixtures and equipment	213.9			215.5
Building and leasehold improvements	212.2			202.7
Total at cost	$	948.3		$	895.8
Less Accumulated depreciation and amortization	(370.6		)	(340.2		)
Property, plant and equipment, net	$	577.7		$	555.6

Depreciation and amortization expense related to property, plant, and equipment was $56.2, $41.8 and $36.2 for the fiscal years ended May 31, 2019, 2018 and 2017, respectively. For the twelve months ended May 31, 2019 and May 31, 2018, the Company capitalized $72.5 and $99.6 of building and leasehold improvements and capitalized software. The Company's construction in progress was $46.8 and $59.3 as of May 31, 2019 and 2018, respectively, related to building and leasehold improvements and capitalized software.

In fiscal 2019, the Company recognized pretax impairment charges of $0.9 related to the abandonment of legacy building improvements. In fiscal 2018, the Company recognized pretax impairment charges of $11.0 related to the abandonment of legacy building improvements and an impairment of $0.2 related to book fairs trucks. In fiscal 2017 the Company recognized a pretax impairment charge related to certain website development assets of $5.7.

Goodwill and Other Intangibles

12 Months Ended

May 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

GOODWILL AND OTHER INTANGIBLES

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



	2019			2018
Gross beginning balance	$	158.8		$	158.5
Accumulated impairment	(39.6		)	(39.6		)
Beginning balance	$	119.2		$	118.9
Additions	6.3			—
Foreign currency translation	(0.3		)	0.2
Other	—			0.1
Ending balance	$	125.2		$	119.2

In fiscal 2019, the Company completed the purchase of a majority-ownership position in MBI, a UK-based children's book publishing business, resulting in the recognition of $6.3 of Goodwill. See Note 9, "Acquisitions," for more information. There were no impairment charges related to Goodwill in any of the periods presented.

The following table summarizes Other intangibles for the fiscal years ended May 31:



	2019			2018
Other intangibles subject to amortization - beginning balance	$	10.1		$	9.0
Additions	4.5			3.3
Other	0.6			—
Amortization expense	(2.8		)	(2.1		)
Foreign currency translation	(0.2		)	(0.1		)
Total other intangibles subject to amortization, net of accumulated amortization of $26.9 and $24.1, respectively	$	12.2		$	10.1

Total other intangibles not subject to amortization	2.1			2.1
Total other intangibles	$	14.3		$	12.2

In fiscal 2019 the Company completed the purchase of a majority interest in a UK-based children's book publishing business, which resulted in $3.9 of amortizable intangible assets. In fiscal 2019, the Company also purchased a U.S.-based book fair business resulting in $0.3 of amortizable intangible assets and a UK-based book clubs business resulting in $0.3 of amortizable intangible assets. In fiscal 2018, the Company purchased two U.S.-based book fair businesses resulting in $1.8 of amortizable intangible assets and a UK-based book distribution business resulting in $1.5 of amortizable intangible assets.

Amortization expense for Other intangibles totaled $2.8, $2.1 and $2.5 for the fiscal years ended May 31, 2019, 2018 and 2017, respectively.

The following table reflects the estimated amortization expense for intangibles for future fiscal years ending May 31:



2020	$	3.1
2021	2.7
2022	2.4
2023	1.1
2024	0.8
Thereafter	2.1

Intangible assets with indefinite lives consist principally of trademark and tradename rights. Intangible assets with definite lives consist principally of customer lists, intellectual property, tradenames and other agreements. Intangible assets with definite lives are amortized over their estimated useful lives. The weighted-average remaining useful lives of all amortizable intangible assets is approximately 5.5 years.

Acquisitions (Notes)	12 Months Ended
Acquisitions (Notes)	May 31, 2019
Business Combinations [Abstract]
Acquisitions	ACQUISITIONS Make Believe Ideas Limited On March 27, 2019, the Company completed the acquisition of a majority ownership interest in Make Believe Ideas Limited, a UK-based children's book publishing company, by acquiring an additional 46.5% of equity interest in MBI to bring the Company's total ownership interest to 95.0%. Prior to March 27, 2019, the Company accounted for its 48.5% equity interest under the equity method of accounting. In connection with the acquisition, the carrying value of the pre-existing equity-method investment was remeasured to a fair value of $12.1, resulting in the recognition of a gain of $0.1. The fair value was estimated using future operating cash flow projections that were discounted at a rate of 17.0%, which accounted for the relative risks of the estimated future cash flows. The Company classified this as a Level 3 fair value measurement due to the use of these significant unobservable inputs. Additionally, a loss of $1.0 was recorded related to the recognition of accumulated foreign currency translation adjustments previously recorded within accumulated other comprehensive income (loss). The founder and chief executive officer of MBI, retains a 5.0% non-controlling ownership interest in MBI, which was assigned a fair value of $1.3. The Company fully consolidated MBI as of the acquisition date, and the 5.0% non-controlling interest is classified within stockholder's equity. The results of operations subsequent to the acquisition date are included in the Children's Book Publishing and Distribution segment. The Company accounted for the acquisition of the additional ownership interest as a business combination under the acquisition method of accounting. The acquisition date fair value of the consideration for the additional 46.5% interest was $4.6, consisting of $7.6 net cash paid and the elimination of a $3.0 pre-acquisition payable owed to MBI by the Company. As part of the business combination, the Company determined that the fair value of 100% of MBI was $22.3. Estimated fair values were assigned to the assets and liabilities acquired, including inventory, receivables, payables and a trade name. The Company utilized internally-developed discounted cash flow forecasts to determine the estimated fair value of the trade name of $3.9 and has therefore classified this as a Level 3 fair value measurement. As a result of this acquisition, $6.3 of goodwill was assigned to the Company’s Children's Book Publishing and Distribution segment, which will not be deductible for tax purposes. Other Acquisitions In fiscal 2019, the Company purchased a U.S.-based book fair business and a UK-based book clubs business resulting in $0.6 of amortizable intangible assets. The results of operations of these businesses subsequent to the acquisitions were included in the Children's Book Publishing and Distribution and International segments, respectively. In fiscal 2018, the Company purchased two U.S.-based book fair businesses resulting in $1.8 of amortizable intangible assets. The results of operations of these businesses subsequent to the acquisition were included in the Children's Book Publishing and Distribution segment. In fiscal 2018, the Company also purchased a UK-based book distribution business resulting in $1.5 of amortizable intangible assets. The results of operations of this business subsequent to the acquisition was included in the International segment. The transactions in fiscal 2019 and 2018 were not determined to be material individually, or in the aggregate, to the Company's results and therefore pro forma financial information is not presented.

Taxes

12 Months Ended

May 31, 2019

Income Tax And Non Income Tax Disclosure [Abstract]

Taxes

TAXES

The components of Earnings (loss) from continuing operations before income taxes for the fiscal years ended May 31 were:



	2019		2018			2017
United States	$	8.7	$	(18.4	)	$	78.7
Non-United States	17.3		16.9			9.2
Total	$	26.0	$	(1.5	)	$	87.9

The provision for income taxes from continuing operations for the fiscal years ended May 31 consisted of the following components:



	2019			2018			2017
Current
Federal	$	(0.2	)	$	(3.6	)	$	8.3
State and local	4.8			0.7			1.8
Non-United States	2.8			4.9			5.4
Total Current	$	7.4		$	2.0		$	15.5

Deferred
Federal	$	1.1		$	5.0		$	17.7
State and local	3.1			(3.5		)	2.2
Non-United States	(1.2		)	—			—
Total Deferred	$	3.0		$	1.5		$	19.9

Total Current and Deferred	$	10.4		$	3.5		$	35.4

Tax Reform

On December 22, 2017, the Tax Cuts and Jobs Act was signed into law. The Tax Cuts and Jobs Act, among other things, reduced the U.S. federal corporate tax rate from 35% to 21% and imposed a new minimum tax on Global Intangible Low-Taxed Income ("GILTI") earned by foreign subsidiaries. In accordance with Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, which was also included in ASU No. 2018-05, Income Taxes (Topic 740), Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (“SAB 118”), which was adopted by the Company upon issuance, any adjustments of the Company's provisional tax expense are recorded as a change in estimate. During the third quarter of fiscal 2019, the Company finalized the provisional calculation resulting in a period-to-date adjustment of $0.3 to the Company’s recorded provisional tax expense, representing an expense of $0.2 in the second fiscal quarter and tax benefit of $0.5 in the third fiscal quarter. Despite the completion of the Company’s accounting for the Tax Cuts and Jobs Act under SAB 118, many aspects of the law remain unclear and the Company expects ongoing guidance to be issued at both the federal and state levels and it will continue to monitor and assess the impact of any new developments.

Effective Tax Rate Reconciliation

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



	2019			2018			2017
Computed federal statutory provision	21.0		%	29.2		%	35.0		%
State income tax provision, net of federal income tax benefit	25.7			37.1			3.3
Difference in effective tax rates on earnings of foreign subsidiaries	2.3			(1.3		)	—
GILTI inclusion	3.4			—			—
Charitable contributions	(0.6		)	28.6			(0.3		)
Tax credits	(3.1		)	42.8			(0.5		)
Valuation allowances	2.3			68.1			0.1
Uncertain positions	(6.3		)	110.3			2.9
Remeasurement of deferred tax balances	—			(371.3		)	—
Permanent differences	0.1			(177.6		)	(0.3		)
Other - net	(4.8		)	0.8			0.1
Effective tax rates	40.0		%	(233.3		)%	40.3		%
Total provision for income taxes	$	10.4		$	3.5		$	35.4

The effective tax rate for the fiscal year ended May 31, 2019 was impacted by a reduction in the federal statutory rate under the Tax Cuts and Jobs Act, as the new rate was applicable to the entire current fiscal year period. The Company's income tax expense for the fiscal period includes $0.9 of expense related to GILTI, partially offset by applicable deductions and foreign tax credits. The Company's state income tax expense was primarily impacted by variations in state earnings and corresponding state net operating carryforwards.

The effective tax rate for the fiscal year ended May 31, 2018 was impacted by the loss from continuing operations before income taxes of $1.5, which included a pre-tax change of $57.3 related to the settlement of the Company's domestic defined benefit pension plan. The effective tax rate was also impacted by a reduction in the federal statutory rate under the Tax Cuts and Jobs Act, for a portion of the prior fiscal year period, and the re-measurement of the Company's U.S. deferred tax balances, resulting in $5.7 of additional tax provision.

Unremitted Earnings

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. The Company is permanently reinvested in certain foreign subsidiaries representing a portion of the Company's investments in foreign subsidiaries. Any required adjustment to the income tax provision would be reflected in the period that the Company changes this assessment. As of May 31, 2019, there have been no changes to this assessment.

Deferred Taxes

The significant components for deferred income taxes for the fiscal years ended May 31 were as follows:



	2019			2018
Deferred tax assets:
Tax uniform capitalization	$	12.8		$	9.6
Prepublication expenses	1.2			0.7
Inventory reserves	15.1			15.0
Allowance for doubtful accounts	1.9			2.2
Deferred revenue	23.5			—
Other reserves	17.2			16.9
Postretirement, post employment and pension obligations	6.0			7.1
Tax carryforwards	31.8			26.9
Other - net	13.7			13.7
Gross deferred tax assets	$	123.2		$	92.1
Valuation allowance	(25.7		)	(25.1		)
Total deferred tax assets	$	97.5		$	67.0
Deferred tax liabilities:
Prepaid expenses	(0.2		)	(0.4		)
Depreciation and amortization	(60.3		)	(41.4		)
Total deferred tax liability	$	(60.5	)	$	(41.8	)
Total net deferred tax assets	$	37.0		$	25.2

The Company regularly assesses the realizability of deferred tax assets considering all available evidence including, to the extent applicable, the nature, frequency and severity of prior cumulative losses, forecasts of future taxable income, tax filing status, duration of statutory carryforward periods, tax planning strategies and historical experience. For the fiscal year ended May 31, 2019, the valuation allowance increased by $0.6, driven by an increase to the valuation allowance of $3.9, partially offset by $3.3 of valuation allowance releases. For the fiscal year ended May 31, 2018, the valuation allowance increased by $0.3, driven by increases to the valuation allowance of $1.9, partially offset by $1.3 of valuation allowance releases and other items. For the fiscal year ended May 31, 2019, the Company has state and foreign net operating loss carryforwards of $60.0 and $117.4, respectively. Certain state net operating loss carryforwards, if not utilized, expire at various times, primarily between fiscal year 2020 and fiscal year 2039. Certain foreign net operating loss carryforwards, if not utilized, expire at various times, primarily between fiscal year 2020 and fiscal year 2025.

Unrecognized tax benefits

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, in which case such benefits are included in long-term income taxes payable and reduced by the associated federal deduction for state taxes and non-U.S. tax credits. The interest and penalties related to these uncertain tax positions are recorded as part of the Company’s income tax expense and constitute part of Other noncurrent liabilities on the Company’s Consolidated Balance Sheets.

The total amount of unrecognized tax benefits at May 31, 2019, 2018, and 2017 were $9.0, excluding $1.4 accrued for interest and penalties, $10.1, excluding $1.8 accrued for interest and penalties, and $14.1, excluding $1.7 accrued for interest and penalties, respectively. Of the total amount of unrecognized tax benefits at May 31, 2019, 2018, and 2017, $9.0, $10.1 and $14.1, respectively, would impact the Company’s effective tax rate.

During the years presented, the Company recognized interest and penalties related to unrecognized tax benefits in the provision for taxes in the Consolidated Financial Statements. The Company recognized a benefit of $0.4, an expense of $0.1, and a benefit of $0.6 for the years ended May 31, 2019, 2018, and 2017, respectively.

The table below presents a reconciliation of the unrecognized tax benefits for the fiscal years indicated:



Gross unrecognized benefits at May 31, 2016	$	17.9
Decreases related to prior year tax positions	(6.3		)
Increase related to prior year tax positions	0.1
Increases related to current year tax positions	3.0
Settlements during the period	(0.6		)
Lapse of statute of limitation	—
Gross unrecognized benefits at May 31, 2017	$	14.1
Decreases related to prior year tax positions	(2.6		)
Increase related to prior year tax positions	0.4
Increases related to current year tax positions	0.5
Settlements during the period	(1.9		)
Lapse of statute of limitation	(0.4		)
Gross unrecognized benefits at May 31, 2018	$	10.1
Decreases related to prior year tax positions	(1.1		)
Increase related to prior year tax positions	0.2
Increases related to current year tax positions	0.7
Settlements during the period	(0.2		)
Lapse of statute of limitation	(0.7		)
Gross unrecognized benefits at May 31, 2019	$	9.0

Unrecognized tax benefits for the Company decreased by $1.1 for the year ended May 31, 2019 and decreased by $4.0 for the year ended May 31, 2018. Although the timing of the resolution and/or closure on audits is 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.

Income Tax Returns

The Company, including its domestic subsidiaries, files a consolidated U.S. income tax return, and also files tax returns in various states and other local jurisdictions. Also, certain subsidiaries of the Company file income tax returns in foreign jurisdictions. The Company is routinely audited by various tax authorities and the fiscal 2015 through fiscal 2018 tax years remain open. In the current fiscal year, there were settlements of audits with taxing authorities. In the prior fiscal year, the Company reached a settlement with the Internal Revenue Service related to the audit of fiscal 2014.

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. The Company assesses sales tax contingencies for each jurisdiction in which it operates, considering all relevant facts including statutes, regulations, case law and experience. Where a sales tax liability in respect to a jurisdiction is probable and can be reliably estimated for such jurisdiction, the Company has made accruals for these matters which are reflected in the Company’s Consolidated Financial Statements. These amounts are included in the Consolidated Financial Statements in Selling, general and administrative expenses. Future developments relating to the foregoing could result in adjustments being made to these accruals.

The Company entered into a settlement with the State of Wisconsin in order to resolve legacy sales and use tax assessments for fiscal years 2003 through 2014. The Company recorded $8.1 of expense in the current fiscal year in the Overhead segment.

Capital Stock and Stock-Based Awards

12 Months Ended

May 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Capital Stock and Stock-Based Awards

CAPITAL STOCK AND STOCK-BASED AWARDS

Class A Stock and Common Stock

Capital stock consisted of the following as of May 31, 2019:



	Class A Stock	Common Stock	Preferred Stock
Authorized	4,000,000	70,000,000	2,000,000
Reserved for Issuance	—	8,501,147	—
Outstanding	1,656,200	33,410,323	—

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 any 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.

The Company issues shares of Common Stock from its Treasury stock to meet its share-based payment requirements, net of shares required to be withheld to cover the recipient's tax obligations.

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

Common Stock Options

At May 31, 2019, the Company maintained four stockholder-approved stock-based compensation plans with regard to the Common Stock:


•	Scholastic Corporation 2001 Stock Incentive Plan (the “2001 Plan”), under which no further awards can be made;


•	Scholastic Corporation 2011 Stock Incentive Plan (the “2011 Plan”);


•	Scholastic Corporation 2007 Outside Directors Stock Incentive Plan (the “2007 Directors Plan”), under which no further grants can be made; and


•	Scholastic Corporation 2017 Outside Directors Stock Incentive Plan (the “2017 Directors Plan”)

The 2011 Plan was adopted in July 2011 and provides for the issuance of incentive stock options, non-qualified stock options, restricted stock and other stock-based awards. On September 24, 2014, the stockholders approved the second amendment to the 2011 Plan increasing the shares available for issuance pursuant to awards granted under the 2011 plan by 2,475,000 shares. On September 26, 2018, the stockholders approved the third amendment to the 2011 Plan increasing the shares available for issuance pursuant to awards granted under the 2011 plan by 2,540,000 shares, for a total of 7,115,000 shares.

The Company’s stock-based awards vest 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 for certain other events.

At May 31, 2019, non-qualified stock options to purchase 99,976 shares and 2,706,248 shares of Common Stock were outstanding under the 2001 Plan and the 2011 Plan, respectively. During fiscal 2019, 339,602 options were granted under the 2011 Plan at a weighted average exercise price of $42.76.

At May 31, 2019, 2,869,821 shares of Common Stock were available for additional awards under the 2011 Plan.

In September 2007, the stockholders approved the 2007 Outside Directors Plan. From September 2007 through September 2011, the 2007 Directors Plan provided for the automatic grant to each non-employee director, on the date of each annual meeting of stockholders, 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 July 2012, the Board approved an amended and restated 2007 Outside Directors Stock Incentive Plan (the “Amended 2007 Directors Plan”), which was approved by the stockholders in September 2012 and provided for the automatic grant to each non-employee director, on the date of each annual meeting of stockholders, of stock options and restricted stock units with a value equal to a fixed dollar amount. Such dollar amount, as well as the split of such amount between stock options and restricted stock units, were determined annually by the Board (or committee designated by the Board) in advance of the grant date. The value of the stock option portion of the annual grant is determined based on the Black-Scholes option pricing method, with the exercise price being the fair market value of the Common Stock on the grant date, and the value of the restricted stock unit portion is the fair market value of the Common Stock on the grant date.

In December 2015, the Board approved an amendment to the Amended 2007 Directors Plan to provide that a non-employee director elected between annual meetings of stockholders would receive a grant at the time of such election equal to a pro rata portion of the most recent annual grant of stock options and restricted stock units, based on the number of regular Board meetings remaining to be held for the annual period during which such election occurred.

In September 2017, the stockholders approved the 2017 Directors Plan. The 2017 Directors Plan reserved for issuance 400,000 shares of Common Stock. The 2017 Directors Plan also provides for the automatic grant to each non-employee director, on the date of each annual meeting of stockholders, of stock options and restricted stock units with a value equal to a fixed dollar amount. Such dollar amount, as well as the split of such dollar amount between stock options and restricted stock units, is determined annually by the Board (or Committee designated by the Board) in advance of the grant date. In July 2018, the Board approved the fiscal 2019 grant to each non-employee director, on the date of the 2018 annual meeting of stockholders, of stock options and restricted stock units having a combined value, as determined by the Board, of ninety thousand dollars (based on the fair market value on the date of grant), with 60% of such award to be awarded as restricted stock units and 40% of such award to be awarded as stock options.

On September 26, 2018, an aggregate of 18,767 options at an exercise price of $43.07 per share and 8,771 restricted stock units were granted to the non-employee directors under the 2017 Directors Plan. As of May 31, 2019, non-qualified stock options to purchase 98,394 shares and 37,511 shares were outstanding under the 2007 Plan and the 2017 Plan, respectively.

Class A Options - 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”). As of May 31, 2019, there were 244,506 shares issued upon exercise of options granted under the Class A Plan, no Class A Options outstanding under the Class A Plan, and no shares of Class A Stock remaining available for additional awards under the Class A Plan.

Common Stock Options - 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 intrinsic value of certain stock options is deductible, if compliant with current tax law, by the Company for tax purposes upon exercise. 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 upon termination of employment for certain retirement-eligible employees, as well as in certain other events.

The following table sets forth the intrinsic value of stock options exercised, pretax stock-based compensation cost and related tax benefits for the Class A Stock and Common Stock plans for the fiscal years ended May 31:



	2019			2018				2017
Total intrinsic value of stock options exercised		$	2.1		$	5.0			$	11.0
Total stock-based compensation cost (pretax)		8.3			10.7				10.1
Tax benefits (shortfalls) related to stock-based compensation cost		0.5			(0.2		)		0.8
Weighted average grant date fair value per option		$	11.97		$	10.45			$	12.70

Pretax stock-based compensation cost is recognized in Selling, general and administrative expenses. As of May 31, 2019, the total pretax compensation cost not yet recognized by the Company with regard to outstanding unvested stock options was $2.4. The weighted average period over which this compensation cost is expected to be recognized is 2.0 years.

The following table sets forth the stock option activity for the Common Stock plans for the fiscal year ended May 31, 2019:



	Options		Weighted Average Exercise Price			Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at May 31, 2018	2,822,126			$	35.52
Granted	358,369			42.77
Exercised	(214,273	)		31.87
Expired, canceled and forfeited	(24,093	)		42.02
Outstanding at May 31, 2019	2,942,129			$	36.62	6.3		$	3.6
Exercisable at May 31, 2019	1,799,534			$	34.14	5.0		$	3.6

Restricted Stock Units – In addition to stock options, the Company has issued restricted stock units to certain officers and key executives under the 2011 Plan. The restricted 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 39,805 shares of Common Stock issued upon vesting of restricted stock units during fiscal 2019. The Company measures the value of restricted stock units at fair value based on the number of units granted and the price of the underlying Common Stock on the grant date. The Company amortizes the fair value of outstanding restricted stock units as stock-based compensation expense over the requisite service period on a straight-line basis, or sooner if the employee effectively vests upon termination of employment under certain circumstances.

The following table sets forth the restricted stock unit award activity for the fiscal years ended May 31:



	2019			2018			2017
Granted		82,044			68,089			52,331
Weighted average grant date price per unit		$	42.86		$	38.97		$	39.22

As of May 31, 2019, the total pretax compensation cost not yet recognized by the Company with regard to unvested restricted stock units was $2.1. The weighted average period over which this compensation cost is expected to be recognized is 1.8 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 (“MSPP Stock Units”) which 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. The MSPP Stock Units are converted into shares of Common Stock on a one-for-one basis at the end of the applicable deferral period, which must be a minimum of three years. The Company measures the value of MSPP Stock Units based on the number of awards 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 upon termination of employment under certain circumstances.

The following table sets forth the MSPP Stock Unit activity for the fiscal years ended May 31:



	2019			2018			2017
MSPP Stock Units allocated		17,239			73,965			42,565
Purchase price per unit		$	30.48		$	28.76		$	28.49

At May 31, 2019, there were 270,236 shares of Common Stock remaining authorized for issuance under the MSPP.

As of May 31, 2019, the total pretax compensation cost not yet recognized by the Company with regard to unvested MSPP Stock Units under the MSPP was less than $0.1. The weighted average period over which this compensation cost is expected to be recognized is less than 1.0 year.

The following table sets forth the restricted stock unit and MSPP Stock Unit activity for the year ended May 31, 2019:



	Restricted stock units and MSPP stock units		Weighted Average grant date fair value
Nonvested as of May 31, 2018	298,094			$	21.78
Granted	99,283			37.07
Vested	(107,315	)		25.19
Forfeited	(2,498	)		42.02
Nonvested as of May 31, 2019	287,564			$	25.61

The total fair value of shares vested during the fiscal years ended May 31, 2019, 2018 and 2017 was $2.7, $3.6 and $2.1, respectively.

Employee Stock Purchase Plan - The Company maintains an Employee Stock Purchase Plan (“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. The purchase of Common Stock occurs on the last business day of the calendar quarter. The Company recognizes the discount on the Common Stock issued under the ESPP as stock-based compensation expense in the quarter in which the employees participated in the plan.

The following table sets forth the ESPP share activity for the fiscal years ended May 31:



	2019		2018		2017
Shares issued		48,000		50,516		42,799
Weighted average purchase price per share	$	36.25	$	33.74	$	35.58

At May 31, 2019, there were 421,953 shares of Common Stock remaining authorized for issuance under the ESPP.

Treasury Stock

12 Months Ended

May 31, 2019

Stockholders' Equity Attributable to Parent [Abstract]

Treasury Stock

TREASURY STOCK

The Company has authorizations from the Board of Directors to repurchase Common Stock, from time to time as conditions allow, on the open market or through negotiated private transactions, as summarized in the table below:



Authorizations	Amount
July 2015	$	50.0
March 2018	50.0
Total current Board authorizations	$	100.0
Less repurchases made under the authorizations as of May 31, 2019	$	(47.2	)
Remaining Board authorization at May 31, 2019	$	52.8

Total current Board authorizations represents the amount remaining under the Board authorization for Common share repurchases on July 22, 2015 and the current $50.0 Board authorization for Common share repurchases announced on March 21, 2018, which is available for further repurchases, from time to time as conditions allow, on the open market or through negotiated private transactions. During the twelve months ended May 31, 2019, the Company repurchased approximately 0.2 million shares on the open market for approximately $8.5 at an average cost of $39.42 per share. The Company’s repurchase program may be suspended at any time without prior notice.

Employee Benefit Plans

12 Months Ended

May 31, 2019

Retirement Benefits [Abstract]

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS

Pension Plans

The Company has a defined benefit pension plan (the “UK Pension Plan”) that covers certain employees located in the United Kingdom 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 the Company. The Company’s UK Pension Plan has a measurement date of May 31.

The Company had a cash balance retirement plan (the “U.S. Pension Plan”), which covered the majority of United States employees who met certain eligibility requirements. On July 20, 2016, the Board approved the termination of the U.S. Pension Plan, as it was determined that the on-going costs of maintaining the U.S. Pension Plan were growing at a greater rate than the benefit delivered to the Company’s participating and former employees. In fiscal 2018, the U.S. Pension Plan made $37.8 of lump sum benefit payments to vested plan participants. The Company completed the final step in the distribution of the U.S. Pension Plan assets to participants by purchasing group annuity contracts for the remaining U.S. Pension Plan participants (the "U.S. Pension Plan Termination"). The total cost of these contracts was $86.3, paid to the respective insurers on February 21, 2018. The net funded asset position of the U.S. Pension Plan had previously included the value of the insurance contracts and lump sums settled prior to the purchase of such contracts. The U.S. Pension Plan's asset balance was sufficient to fund the purchase of these insurance contracts as well as any remaining benefit obligations and plan related operating expenses, with no additional cost to the Company as the plan sponsor. As a result, a remeasurement was completed on the final settlement date and a non-cash, pre-tax settlement expense of $57.3 was recognized in fiscal 2018 as a final settlement charge in the Company's consolidated statement of operations in Other components of net periodic benefit (cost).

Postretirement Benefits

The Company provides postretirement benefits to eligible retired United States-based employees (the “Postretirement Benefits”) consisting of certain healthcare and life insurance benefits. Employees may become eligible for these benefits after completing certain minimum age and service requirements. Effective June 1, 2009, the Company modified the terms of the Postretirement Benefits, effectively excluding a large percentage of employees from the plan. The Company’s postretirement benefit plan has a measurement date of May 31.

In the second quarter of fiscal 2019, the Company made a change in benefits for certain postretirement benefit plan participants. Beginning January 1, 2019, the plan established Health Reimbursement Accounts (HRAs) to provide certain participants with additional flexibility to choose healthcare options based on individual needs. As a result of this change, the Company remeasured its Postretirement Benefit obligation as of November 30, 2018, and recognized a reduction of $2.7 to its benefit obligation and a reduction to its accumulated comprehensive loss of $2.7 in the second quarter of fiscal 2019. The related prior service credit will be amortized as a Component of net periodic benefit (cost) over the average remaining life expectancy of plan participants of approximately 13 years.

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 Postretirement Benefits provided to its retiree population are in aggregate the actuarial equivalent of the benefits under Medicare Part D. As a result, in fiscal 2019, 2018 and 2017, the Company recognized a cumulative reduction of its accumulated postretirement benefit obligation of $1.5, $2.3 and $2.5, 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 U.S. Pension Plan and the UK Pension Plan (collectively the “Pension Plans”), including the Postretirement Benefits, at May 31:



	U.S. Pension Plan					UK Pension Plan						Postretirement Benefits
	2019 ^*	2018		2017		2019		2018		2017		2019			2018			2017
Weighted average assumptions used to determine benefit obligations:
Discount rate	*	—	%	2.4	%	2.3	%	2.6	%	2.5	%	3.6	%		4.0	%		3.7	%
Rate of compensation increase	*	—		—		4.1	%	3.9	%	4.1	%	—			—			—
Weighted average assumptions used to determine net periodic benefit cost:
Discount rate ⁽¹⁾	*	2.3	%	3.5	%	2.4	%	2.5	%	3.5	%	3.7	%		3.7	%		3.7	%
Expected short-term return on plan assets ⁽²⁾	*	4.8	%	4.8		—		—		—		—		—	—		—	—
Expected long-term return on plan assets	*	—		—		3.4	%	3.4	%	3.9	%	—			—			—
Rate of compensation increase	*	—		—		3.9	%	4.1	%	3.8	%	—			—			—

^*The U.S. Pension Plan was terminated in fiscal 2018.

⁽¹⁾The fiscal 2018 U.S. Pension Plan discount rate is for the period of June 1, 2017 through the plan settlement date.

⁽²⁾The fiscal 2018 U.S. Pension Plan expected short-term return on plan assets is for the period of June 1, 2017 through the plan settlement date.

To develop the expected long-term rate of return on plan assets assumption for the UK Pension Plan, 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 on plan assets of 3.4% for the UK Pension Plan. In fiscal 2018, the U.S. Pension Plan utilized a short-term rate of return assumption of 4.8% due to the U.S. Pension Plan termination for the period June 1, 2017 through the plan settlement date.

The following table sets forth the change in benefit obligation for the Pension Plans and Postretirement Benefits at May 31:



	U.S. Pension Plan					UK Pension Plan						Postretirement Benefits
	2019 ^*		2018			2019			2018			2019			2018
Change in benefit obligation:
Benefit obligation at beginning of year	*		$	127.8		$	40.0		$	41.7		$	26.8		$	28.8
Service cost	*		—			—			—			0.0			0.0
Interest cost	*		1.9			0.9			1.1			0.8			0.8
Plan participants’ contributions	*		—			—			—			0.4			0.4
Actuarial losses (gains)	*		1.7			3.1			(2.0		)	0.1			(2.4		)
Foreign currency translation	*		—			(2.0		)	1.3			—			—
Settlement	*		(125.2		)	—			—			—			—
Plan amendments	*		—			0.1			—			(2.7		)	—
Benefits paid, including expenses	*		(6.2		)	(1.2		)	(2.1		)	(2.0		)	(0.8		)
Benefit obligation at end of year	$	—	$	—		$	40.9		$	40.0		$	23.4		$	26.8

^*The U.S. Pension Plan was terminated in fiscal 2018.

The U.S. Pension Plan Termination resulted in an increase in actuarial losses for the U.S. Pension Plan in fiscal 2018. The increase primarily related to premiums associated with insurance company pricing for the obligations that were not distributed through lump sum payments.

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



	U.S. Pension Plan					UK Pension Plan						Postretirement Benefits
	2019 ^*		2018			2019			2018			2019		2018
Change in plan assets:
Fair value of plan assets at beginning of year	*		$	132.5		$	30.8		$	29.2		$	—	$	—
Actual return on plan assets	*		0.5			2.8			1.7			—		—
Employer contributions	*		—			1.0			1.1			—		2.0
Settlement	*		(125.2		)	—			—			—		—
Benefits paid, including expenses	*		(6.2		)	(1.2		)	(2.1		)	—		(2.4		)
Plan participants’ contributions	*		—			—			—			—		0.4
Foreign currency translation	*		—			(1.6		)	0.9			—		—
Fair value of plan assets at end of year	$	—	$	1.6		$	31.8		$	30.8		$	—	$	—

^*The U.S. Pension Plan was terminated in fiscal 2018.

The U.S. Pension Plan reflected a current asset of $1.6 as of May 31, 2018, that was used to pay plan-related expenses, with the remaining balance contributed for the benefit of the Company's employees participating in the Company's 401(k) plan.

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



	U.S. Pension Plan				UK Pension Plan						Postretirement Benefits
	2019 ^*		2018		2019			2018			2019			2018
Current assets	*		$	1.6	$	—		$	—		$	—		$	—
Current liabilities	*		—		—			—			(1.8		)	(2.2		)
Non-current liabilities	*		—		(9.1		)	(9.2		)	(21.6		)	(24.6		)
Net funded balance	$	—	$	1.6	$	(9.1	)	$	(9.2	)	$	(23.4	)	$	(26.8	)

^*The U.S. Pension Plan was terminated in fiscal 2018.

The following amounts were recognized in Accumulated other comprehensive income (loss) for the Pension Plans and Postretirement Benefits in the Company’s Consolidated Balance Sheets at May 31:



	2019									2018
	U.S. Pension Plan ^*	UK Pension Plan			Post - Retirement Benefits		Total			U.S. Pension Plan		UK Pension Plan			Post - Retirement Benefits			Total
Net actuarial gain (loss)	*	$	(13.0	)	$	0.5	$	(12.5	)	$	—	$	(12.5	)	$	(1.3	)	$	(13.8	)
Amount recognized in Accumulated comprehensive income (loss) before tax	*	(13.0		)	0.0		(13.0		)	—		(12.5		)	(2.4		)	(14.9		)

^*The U.S. Pension Plan was terminated in fiscal 2018.

Accumulated other comprehensive loss of $55.0 for the U.S Pension Plan was reversed during fiscal 2018 as a result of the U.S. Pension Plan Termination in fiscal 2018. For the fiscal year ended May 31, 2018, the Company recognized final pretax settlement charges of $57.3 in Other components of net periodic benefit (cost), related to the settlement of the U.S Pension Plan and the related purchase of insurance company group annuity contracts.

The estimated net loss for the UK Pension Plan that will be amortized from Accumulated other comprehensive loss into net periodic benefit (cost) over the fiscal year ending May 31, 2020 is $1.0.

The estimated net gain for the Postretirement Benefits plan that will be amortized from Accumulated other comprehensive loss into net periodic benefit (cost) over the fiscal year ending May 31, 2020 is $0.2.

Income tax benefit of $0.5, income tax expense of $20.9 and income tax expense of $0.4 were recognized in Accumulated other comprehensive loss at May 31, 2019, 2018 and 2017, respectively.

The following table sets forth the projected benefit obligations, accumulated benefit obligations and the fair value of plan assets with respect to the Pension Plans as of May 31:



	U.S. Pension Plan			UK Pension Plan
	2019^*	2018		2019		2018
Projected benefit obligations	*	$	—	$	40.9	$	40.0
Accumulated benefit obligations	*	—		40.2		39.4
Fair value of plan assets	*	1.6		31.8		30.8

^*The U.S. Pension Plan was terminated in fiscal 2018.

The following table sets forth the net periodic benefit (cost) for the Pension Plans and Postretirement Benefits for the fiscal years ended May 31:



	U.S. Pension Plan								UK Pension Plan									Postretirement Benefits
	2019 ^*		2018			2017			2019			2018			2017			2019			2018		2017
Components of net (benefit) cost:
Service cost	*		$	—		$	—		$	—		$	—		$	—		$	0.0		$	0.0	$	0.0
Interest cost	*		1.9			3.2			0.9			1.1			1.2			0.8			0.8		0.9
Expected return on assets	*		(4.1		)	(6.1		)	(1.0		)	(1.0		)	(1.0		)	—			—		—
Settlement charge	*		57.3			—			—			—			—			—			—		—
Amortization of net actuarial (gain) loss	*		0.9			0.9			0.8			1.2			0.8			(0.1		)	0.1		0.4
Net periodic (benefit) cost	$	—	$	56.0		$	(2.0	)	$	0.7		$	1.3		$	1.0		$	0.7		$	0.9	$	1.3

^*The U.S. Pension Plan was terminated in fiscal 2018.

Plan Assets

The Company’s investment policy with regard to the assets in the UK Pension Plan is to actively manage, within acceptable risk parameters, certain asset classes where the potential exists to outperform the broader market. The U.S. Pension Plan assets were invested in short term cash and cash equivalent investments due to the Plan's termination in fiscal 2018.

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



	U.S. Pension Plan				UK Pension Plan
	2019 ^*		2018		2019		2018
Equity securities	*		—	%	35.0	%	38.6	%
Cash and cash equivalents	*		100.0	%	3.0	%	2.6	%
Liability-driven instruments	*		—	%	38.0	%	32.8	%
Real estate	*		—	%	7.0	%	7.5	%
Other	*		—	%	17.0	%	18.5	%
	—	%	100.0	%	100.0	%	100.0	%

^*The U.S. Pension Plan was terminated in fiscal 2018.

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



	UK Pension Plan
Equity securities	35	%
Cash and cash equivalents	3	%
Liability-driven instruments and other	55	%
Real estate	7	%
Total	100	%

The fair values of the Company’s Pension Plan assets are measured using Level 1, Level 2 and Level 3 fair value measurements.

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



	Assets at Fair Value as of May 31, 2019
	U.S. Pension Plan ^*		UK Pension Plan		U.S. Pension Plan ⁽¹⁾		UK Pension Plan		U.S. Pension Plan ⁽¹⁾		UK Pension Plan		Total
	Level 1				Level 2				Level 3
Cash and cash equivalents	*		$	0.9	*		$	—	*		$	—	$	0.9
Equity securities:
U.S. ⁽²⁾	*		1.1		*		—		*		—		1.1
International ⁽³⁾	*		10.0		*		—		*		—		10.0
Pooled, Common and Collective Funds ^{(4) (5)}	*		—		*		12.0		*		—		12.0
Annuities	*		—		*		—		*		5.5		5.5
Real estate ⁽⁶⁾	*		2.3		*		—		*		—		2.3
Total	$	—	$	14.3	$	—	$	12.0	$	—	$	5.5	$	31.8



	Assets at Fair Value as of May 31, 2018
	U.S. Pension Plan		UK Pension Plan		U.S. Pension Plan		UK Pension Plan		U.S. Pension Plan		UK Pension Plan		Total
	Level 1				Level 2				Level 3
Cash and cash equivalents	$	1.6	$	0.8	$	—	$	—	$	—	$	—	$	2.4
Equity securities:
U.S.⁽¹⁾	—		1.5		—		—		—		—		1.5
International ⁽²⁾	—		10.4		—		—		—		—		10.4
Pooled, Common and Collective Funds ^{(3) (4)}	—		—		—		10.1		—		—		10.1
Annuities	—		—		—		—		—		5.7		5.7
Real estate ⁽⁵⁾	—		2.3		—		—		—		—		2.3
Total	$	1.6	$	15.0	$	—	$	10.1	$	—	$	5.7	$	32.4

* The U.S. Pension Plan was terminated in fiscal 2018.

(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 stocks of non-U.S. companies, primarily in Europe and

Asia. There are no restrictions on these investments.

(3) Funds which invest in UK government bonds and bond index-linked investments and interest rate and inflation swaps. There are

no restrictions on these investments.

(4) Funds which invest in bond index funds available to certain qualified retirement plans but not traded openly in any

public exchanges. There are no restrictions on these investments.

(5) 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 has purchased 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 $5.5 and $5.7 at May 31, 2019 and May 31, 2018, respectively.

The following table summarizes the changes in fair value of these Level 3 assets for the fiscal years ended May 31, 2019 and 2018:



Balance at May 31, 2017	$	5.8
Actual Return on Plan Assets:
Relating to assets still held at May 31, 2017	(0.3		)
Relating to assets sold during the year	—
Purchases, sales and settlements, net	—
Transfers in and/or out of Level 3	—
Foreign currency translation	0.2
Balance at May 31, 2018	$	5.7
Actual Return on Plan Assets:
Relating to assets still held at May 31, 2018	0.1
Relating to assets sold during the year	—
Purchases, sales and settlements, net	—
Transfers in and/or out of Level 3	—
Foreign currency translation	(0.3		)
Balance at May 31, 2019	$	5.5

Contributions

In fiscal 2020, the Company expects to make contributions of $1.1 to the UK Pension Plan.

Estimated future benefit payments

The following table sets forth the expected future benefit payments under the UK Pension Plan and the Postretirement Benefits by fiscal year:



	UK Pension Plan		Postretirement
	Pension benefits		Benefit payments		Medicare subsidy receipts
2020	$	1.0	$	1.9	$	0.1
2021	0.9		1.9		0.1
2022	0.9		1.9		0.1
2023	1.3		1.9		0.2
2024	1.2		1.9		0.2
2025 and thereafter	10.2		8.5		0.8

Beneficiary payments for the U.S. Pension Plan were paid in full in fiscal 2018.

Assumed health care cost trend rates at May 31:



	2019		2018
Health care cost trend rate assumed for the next fiscal year	6.5	%	6.8	%
Rate to which the cost trend is assumed to decline (the ultimate trend rate)	5.0	%	5.0	%
Year that the rate reaches the ultimate trend rate	2026		2026

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



	2019			2018
Total service and interest cost - 1% increase	$	0.1		$	0.1
Total service and interest cost - 1% decrease	(0.1		)	(0.1		)
Postretirement benefit obligation - 1% increase	2.1			2.8
Postretirement benefit obligation - 1% decrease	(1.9		)	(2.4		)

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 $7.6, $7.2 and $7.1 for fiscal years 2019, 2018 and 2017, respectively.

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

May 31, 2019

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table presents the impact on earnings of reclassifications out of Accumulated other comprehensive income (loss) for the fiscal years ended May 31:



	2019					2018					2017
	Pension Plans		Post - Retirement Benefits			Pension Plans			Post - Retirement Benefits		Pension Plans			Post - Retirement Benefits
Service cost	$	—	$	—		$	—		$	0.0	$	—		$	0.0
Net amortization and deferrals			(0.1		)	—			—		—			—
Lump sum settlement charge	—		—			55.0			—		—			—
Amortization of net actuarial (gain) loss	0.8		—			2.1			0.1		1.7			0.4
Tax benefit	—		0.0			(22.3		)	0.0		(0.4		)	(0.1		)
Amounts reclassified from Accumulated other comprehensive income (loss)	$	0.8	$	(0.1	)	$	34.8		$	0.1	$	1.3		$	0.3

The amounts reclassified out of Accumulated other comprehensive income (loss) were recognized in Other components of net periodic benefit (cost) for all periods presented.

For the fiscal year ended May 31, 2018, the Company recognized pretax settlement charges of $57.3 in Other components of net periodic benefit (cost), related to the settlement of the U.S Pension Plan and the related purchase of insurance company group annuity contracts.

The following tables summarize the activity in Accumulated other comprehensive income (loss), net of tax, by component for the periods indicated:



	Foreign currency translation adjustments			Pension Plans			Post - Retirement Benefits			Total
Balance at May 31, 2017 ⁽¹⁾	$	(45.3	)	$	(46.9	)	$	(2.0	)	$	(94.2	)
Other comprehensive income (loss) before reclassifications	3.4			(0.4		)	0.6			3.6
Less: amount reclassified from Accumulated other comprehensive income (loss) (net of taxes)
Settlement charge	—			33.0			—			33.0
Amortization of net actuarial loss	—			1.8			0.1			1.9
Net prior service credit	—			—			—			—
Other comprehensive income (loss)	3.4			34.4			0.7			38.5
Balance at May 31, 2018 ⁽¹⁾	$	(41.9	)	$	(12.5	)	$	(1.3	)	$	(55.7	)
Other comprehensive income (loss) before reclassifications	$	(5.2	)	$	(1.4	)	$	1.9		$	(4.7	)
Less: amount reclassified from Accumulated other comprehensive income (loss) (net of taxes)
Amortization of net actuarial loss	$	—		$	0.8		$	(0.1	)	$	0.7
Other comprehensive income (loss)	(5.2		)	(0.6		)	1.8			(4.0		)
Balance at May 31, 2019⁽¹⁾	$	(47.1	)	$	(13.1	)	$	0.5		$	(59.7	)

(1) Accumulated other comprehensive income (loss) related to Pension Plans and Postretirement Benefits are reported net of taxes of $0.5, $1.1 and $22.0 at May 31, 2019, 2018 and 2017, respectively.

Earnings (Loss) Per Share

12 Months Ended

May 31, 2019

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

EARNINGS (LOSS) PER SHARE

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:



	2019		2018			2017
Earnings (loss) from continuing operations attributable to Class A and Common Shares	$	15.5	$	(5.0	)	$	52.4
Earnings (loss) from discontinued operations attributable to Class A and Common Shares, net of tax	$	—	$	—		$	(0.2	)
Net income (loss) attributable to Class A and Common Shares	$	15.5	$	(5.0	)	$	52.2
Weighted average Shares of Class A Stock and Common Stock outstanding for basic earnings (loss) per share (in millions)	35.2		35.0			34.7
Dilutive effect of Class A Stock and Common Stock potentially issuable pursuant to stock-based compensation plans (in millions)	0.6		—			0.7
Adjusted weighted average Shares of Class A Stock and Common Stock outstanding for diluted earnings (loss) per share (in millions)	35.8		35.0			35.4

Earnings (loss) per share of Class A Stock and Common Stock
Basic earnings (loss) per share:
Earnings (loss) from continuing operations	$	0.44	$	(0.14	)	$	1.51
Earnings (loss) from discontinued operations, net of tax	$	—	$	—		$	(0.00	)
Net income (loss)	$	0.44	$	(0.14	)	$	1.51
Diluted earnings (loss) per share:
Earnings (loss) from continuing operations	$	0.43	$	(0.14	)	$	1.48
Earnings (loss) from discontinued operations, net of tax	$	—	$	—		$	(0.01	)
Net income (loss)	$	0.43	$	(0.14	)	$	1.47

Earnings from continuing operations exclude earnings of $0.1 and $0.1 for the fiscal years ended May 31, 2019 and 2017, respectively, for earnings attributable to participating restricted stock units. The Company experienced a loss from continuing operations for the fiscal year ended May 31, 2018 and therefore did not allocate any loss to the participating restricted stock units.

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. There were 2.2 million of potentially anti-dilutive shares outstanding pursuant to compensation plans as of May 31, 2019.

A portion of the Company’s restricted stock units which are granted to employees participate in earnings through cumulative dividends which are payable and non-forfeitable to the employees upon vesting of the restricted stock units. Accordingly, the Company measures earnings per share based upon the lower of the Two-class method or the Treasury Stock method.

The following table sets forth Options outstanding pursuant to stock-based compensation plans for the fiscal years ended May 31:



	2019	2018
Options outstanding pursuant to stock-based compensation plans (in millions)	2.9	2.8

As of May 31, 2019, $52.8 remains available for future purchases of common shares under the current repurchase authorization of the Board of Directors.

See Note 12, “Treasury Stock,” for a more complete description of the Company’s share buy-back program.

Other Accrued Expenses

12 Months Ended

May 31, 2019

Payables and Accruals [Abstract]

Other Accrued Expenses

OTHER ACCRUED EXPENSES

Other accrued expenses consisted of the following at May 31:



	2019		2018

Accrued payroll, payroll taxes and benefits	$	41.2	$	47.1
Accrued bonus and commissions	13.7		22.4
Accrued other taxes	29.3		25.7
Returns liability ⁽¹⁾	34.5		—
Accrued advertising and promotions⁽¹⁾	9.6		35.8
Other accrued expenses	36.5		46.9
Total accrued expenses	$	164.8	$	177.9

⁽¹⁾Refer to Note 2, "Revenues," for additional details regarding the impact of ASC 606 on Returns liability and Accrued advertising and promotions.

The table below provides information regarding Accrued severance which is included in Accrued payroll, payroll taxes and benefits on the Company’s Consolidated Balance Sheets at May 31:



	2019			2018
Beginning balance	$	4.2		$	6.6
Accruals	10.6			9.9
Payments	(9.3		)	(12.3		)
Ending balance	$	5.5		$	4.2

The Company implemented cost reduction programs in fiscal 2019 and 2018, recognizing severance expense of $6.5 and $7.4, respectively.

Derivatives and Hedging	12 Months Ended
Derivatives and Hedging	May 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives and Hedging	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, the foreign exchange risk associated with certain receivables denominated in foreign currencies and certain future commitments for foreign expenditures. 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 Selling, general and administrative expenses, and it recognizes the unrealized gain or loss in other current assets or other current liabilities. The notional values of the contracts as of May 31, 2019 and 2018 were $30.0 and $30.0, respectively. Net unrealized gains of $0.8 and $0.4 were recognized at May 31, 2019 and May 31, 2018, respectively.

Fair Value Measurements

12 Months Ended

May 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

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:


◦	Quoted prices for similar assets or liabilities in active markets


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


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


◦	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 the disclosure of the fair value of its various lines of credit. The fair value of the Company's debt approximates the carrying value for all periods presented. For a more complete description of fair value measurements employed, see Note 4, “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 17, “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


•	Impairment assessment of goodwill and 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. For the fair value measurements employed by the Company for goodwill, see Note 8, “Goodwill and Other Intangibles." For the fair value measurements employed by the Company for certain property, plant and equipment, production assets, investments and prepublication assets, the Company assessed future expected cash flows attributable to these assets.

The following tables present non-financial assets that were measured and recognized at fair value on a non-recurring basis and the total impairment losses and additions recognized on those assets:



	Net carrying value as of		Fair value measured and recognized using						Impairment losses for fiscal year ended		Additions due to acquisitions
	May 31, 2019		Level 1		Level 2		Level 3		May 31, 2019		Additions due to acquisitions
Property, plant and equipment, net	$	—	$	—	$	—	$	—	$	0.9	$	—
Investment acquired	6.0		—		—		6.0		—		6.0
Intangible assets	4.9		—		—		5.1		—		5.1



	Net carrying value as of		Fair value measured and recognized using						Impairment losses for fiscal year ended		Additions due to other investments and acquisitions
	May 31, 2018		Level 1		Level 2		Level 3		May 31, 2018		Additions due to other investments and acquisitions
Property, plant and equipment, net	$	—	$	—	$	—	$	—	$	11.2	$	—
Intangible assets	3.1		—		—		3.3		—		3.3



	Net carrying value as of		Fair value measured and recognized using						Impairment losses for fiscal year ended		Additions due to other investments and acquisitions
	May 31, 2017		Level 1		Level 2		Level 3		May 31, 2017		Additions due to other investments and acquisitions
Property, plant and equipment, net	$	—	$	—	$	—	$	—	$	5.7	$	—
Goodwill	2.8		—		—		2.8		—		2.8
Prepublication assets	—		—		—		—		1.1		—
Intangible assets	6.8		—		—		7.0		—		7.0

- 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 + Details

Subsequent Events	12 Months Ended
Subsequent Events	May 31, 2019
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS On July 24, 2019, the Board of Directors declared a regular cash dividend of $0.15 per Class A and Common share in respect of the first quarter of fiscal 2020. The dividend is payable on September 16, 2019 to shareholders of record on August 30, 2019.

Schedule II Valuation and Qualifying Accounts and Reserves

12 Months Ended

May 31, 2019

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II Valuation and Qualifying Accounts and Reserves

Schedule II

Valuation and Qualifying Accounts and Reserves



										(Amounts in millions)
										Years ended May 31,
	Balance at Beginning of Year			Expensed			Write-Offs and Other				Balance at End of Year
2019
Allowance for doubtful accounts		$	12.4		$	7.0		$	7.8			$	11.6
Returns liability, after adoption of Topic 606 ⁽¹⁾		30.0			67.2			62.7		⁽¹⁾		34.5
Reserves for obsolescence		67.5			20.8			15.4				72.9
Reserve for royalty advances		97.0			6.8			0.9				102.9
2018
Allowance for doubtful accounts		$	13.7		$	9.5		$	10.8			$	12.4
Reserve for returns		36.3			54.5			60.8		⁽²⁾		30.0
Reserves for obsolescence		71.9			18.4			22.8				67.5
Reserve for royalty advances		93.8			4.1			0.9				97.0
2017
Allowance for doubtful accounts		$	16.1		$	11.0		$	13.4			$	13.7
Reserve for returns		32.1			80.4			76.2		⁽²⁾		36.3
Reserves for obsolescence		73.9			16.0			18.0				71.9
Reserve for royalty advances		90.1			4.3			0.6				93.8


(1)	In fiscal year 2019, this balance was reclassified from a reduction to Accounts receivable, net, to a current liability within Other accrued expenses in accordance with Topic 606.


(2)	Represents actual returns charged to the reserve.

Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies)

12 Months Ended

May 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Principles of consolidation

Discontinued Operations

Discontinued operations

During the twelve month periods ended May 31, 2019, 2018 and 2017, the Company did not dispose of any components of the business that would meet the criteria of discontinued operations.

Use of estimates


•	Accounts receivable allowance for doubtful accounts


•	Pension and other postretirement obligations


•	Uncertain tax positions


•	The timing and amount of future income taxes and related deductions


•	Inventory reserves


•	Cost of goods sold from book fair operations during interim periods based on estimated gross profit rates


•	Sales tax contingencies


•	Royalty advance reserves and royalty expense accruals


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


•	Assets and liabilities acquired in business combinations


•	Variable consideration related to anticipated returns


•	Allocation of transaction price to contractual performance obligations