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All of these businesses are classified as discontinued operations in the Company's financial statements and, as such, are not reflected in this table. As discussed under "Segment" in Note 1, a business previously reported in the Media, Licensing and Advertising segment is now included in the Children's Book Publishing and Distribution segment. Includes assets and results of operations acquired in a business acquisition as of February 8, 2012. 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. 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SCHOLASTIC CORP 10-Q --05-31 30006581 1656200 false 0000866729 Yes No Large Accelerated Filer Yes 2013 Q1 2012-08-31

1. Basis of Presentation Principles of consolidation The accompanying condensed consolidated financial statements include the accounts of Scholastic Corporation (the “Corporation”) and all wholly-owned and majority-owned subsidiaries (collectively, “Scholastic” or the “Company”). Intercompany transactions are eliminated in consolidation. These financial statements have not been audited but reflect those adjustments consisting of normal recurring items that management considers necessary for a fair presentation of financial position, results of operations and cash flows. These financial statements should be read in conjunction with the consolidated financial statements and related notes in the Annual Report on Form 10-K for the fiscal year ended May 31, 2012 (the “Annual Report”). The Company’s fiscal year is not a calendar year. Accordingly, references in this document to fiscal 2012 relate to the twelve-month period ended May 31, 2012. Segment The Company determined that a software business previously reported in the Media, Licensing and Advertising segment should be reported in the Children’s Book Publishing and Distribution segment consistent with changes in the Company’s internal reporting structure. All prior periods reflect this change. Other Comprehensive Income (Loss) The Company reported net amortization expense of prior service and gains and losses for pension and post-retirement benefit plans in Selling, general and administrative expenses of $1.1 and $1.3 for the three months ended August 31, 2012 and 2011, respectively. These amounts had previously been recognized as a component of accumulated other comprehensive income. Discontinued Operations The Company closed or sold several operations during fiscal 2009, fiscal 2010 and fiscal 2012, and presently holds for sale one facility. All of these businesses are classified as discontinued operations in the Company’s financial statements. See Note 2, “Discontinued Operations,” for additional information. Seasonality The Company’s school-based book clubs, school-based book fairs and most of its magazines operate on a school-year basis; therefore, the Company’s business is highly seasonal. As a result, the Company’s revenues in the first and third quarters of the fiscal year generally are lower than its revenues in the other two fiscal quarters. Typically, school-based book club and book fair revenues are greatest in the second and fourth quarters of the fiscal year, while revenues from the sale of instructional materials and educational technology products and services are highest in the first and fourth quarters. The Company generally experiences a loss from operations in the first and third quarters of each fiscal year. Use of estimates The Company’s condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and with the instructions to Form 10-Q and Regulation S-X. The preparation of these financial statements involves the use of estimates and assumptions by management, which affects the amounts reported in the condensed 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: <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="4%" valign="top">   </td> <td width="4%" valign="top">   </td> <td width="92%" valign="top">   </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Accounts receivable, returns and allowances </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Pension and other post-retirement obligations </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Uncertain tax positions </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Inventory reserves </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Gross profits for book fair operations during interim periods </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Sales taxes </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Royalty advance reserves </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Customer reward programs </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Impairment testing for goodwill, intangibles and other long-lived assets </td> </tr> </table> Restricted Cash The condensed consolidated balance sheets include restricted cash of $0.8, $1.0 and $0.2 at August 31, 2012, May 31, 2012 and August 31, 2011, respectively, which is reported in “Other current assets.” New Accounting Pronouncements In July 2012, the FASB issued an update to the authoritative guidance related to the impairment testing of indefinite-lived intangible assets. Similar to the guidance for goodwill impairment testing, companies will have the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying value. The guidance provides companies with a revised list of examples of events and circumstances to consider, in their totality, to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount. If a company concludes that this is the case, the company is required to perform the quantitative impairment test by comparing the fair value with the carrying value. Otherwise, a company can skip the quantitative test. Companies are not required to perform the qualitative assessment and are permitted to skip the qualitative assessment for any indefinite-lived asset in any period and proceed directly to the quantitative impairment test. The company may resume performing the qualitative assessment in any subsequent period. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted, including for annual and interim impairment tests performed as of a date before July 27, 2012, if a public entity’s financial statements for the most recent annual or interim period have not yet been issued. The Company is evaluating the impact of this update on its consolidated financial position and results of operations. In June 2011, the FASB issued an update related to the reporting of other comprehensive income. The amendments require that all non-owner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The amendments also require the presentation on the face of the financial statements of reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statements where the components of net income and the components of other comprehensive income are presented. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. In December 2011, the FASB issued an update that effectively deferred the requirements related to the presentation of reclassification adjustments out of accumulated other comprehensive income. The amendments will be temporary to allow the FASB time to re-deliberate the presentation requirements for reclassifications out of accumulated other comprehensive income for annual and interim financial statements for public, private and non-profit entities. The Company adopted this update during the current fiscal quarter and has presented a separate statement of comprehensive income.

Principles of consolidation The accompanying condensed consolidated financial statements include the accounts of Scholastic Corporation (the “Corporation”) and all wholly-owned and majority-owned subsidiaries (collectively, “Scholastic” or the “Company”). Intercompany transactions are eliminated in consolidation. These financial statements have not been audited but reflect those adjustments consisting of normal recurring items that management considers necessary for a fair presentation of financial position, results of operations and cash flows. These financial statements should be read in conjunction with the consolidated financial statements and related notes in the Annual Report on Form 10-K for the fiscal year ended May 31, 2012 (the “Annual Report”). The Company’s fiscal year is not a calendar year. Accordingly, references in this document to fiscal 2012 relate to the twelve-month period ended May 31, 2012.

Segment The Company determined that a software business previously reported in the Media, Licensing and Advertising segment should be reported in the Children’s Book Publishing and Distribution segment consistent with changes in the Company’s internal reporting structure. All prior periods reflect this change.

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Use of estimates The Company’s condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and with the instructions to Form 10-Q and Regulation S-X. The preparation of these financial statements involves the use of estimates and assumptions by management, which affects the amounts reported in the condensed 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: <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="4%" valign="top">   </td> <td width="4%" valign="top">   </td> <td width="92%" valign="top">   </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Accounts receivable, returns and allowances </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Pension and other post-retirement obligations </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Uncertain tax positions </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Inventory reserves </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Gross profits for book fair operations during interim periods </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Sales taxes </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Royalty advance reserves </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Customer reward programs </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Impairment testing for goodwill, intangibles and other long-lived assets</td></tr></table>

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2. Discontinued Operations The Company continuously evaluates its portfolio of businesses for both impairment and economic viability. The Company monitors the expected cash proceeds to be realized from the disposition of discontinued operations’ assets, and adjusts asset values accordingly. The following table summarizes the operating results of the discontinued operations for the periods indicated: <table border="0" cellspacing="0" cellpadding="0" width="80%"> <tr style="FONT-SIZE:1PX"> <td width="57%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="7%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="7%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="5" valign="bottom"> Three months ended </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Revenues </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.1 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Non-cash impairment </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.9 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Earnings (loss) before income taxes </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (0.1 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (2.6 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom"> Income tax benefit (expense) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.6 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Earnings (loss) from discontinued operations, net of tax </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.1 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> (2.0 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table> The following table sets forth the assets and liabilities of the discontinued operations included in the condensed consolidated balance sheets of the Company as of the dates indicated: <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="50%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="5%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="5%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="5%" valign="bottom">   </td> <td width="2%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="4" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="4" valign="bottom"> May 31, 2012 </td> <td valign="bottom">   </td> <td colspan="4" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="4" valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="4" valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="4" valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Accounts receivable, net </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Inventories, net </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Other assets </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 7.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 7.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 9.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Current assets of discontinued operations </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 7.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 7.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 9.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Accounts payable </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Accrued expenses and other current liabilities </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 2.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 2.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Current liabilities of discontinued operations </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 1.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table>

The following table summarizes the operating results of the discontinued operations for the periods indicated: <table border="0" cellspacing="0" cellpadding="0" width="80%"> <tr style="FONT-SIZE:1PX"> <td width="57%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="7%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="7%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="5" valign="bottom"> Three months ended </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Revenues </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.1 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Non-cash impairment </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.9 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Earnings (loss) before income taxes </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (0.1 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (2.6 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom"> Income tax benefit (expense) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.6 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Earnings (loss) from discontinued operations, net of tax </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.1 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> (2.0 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table>

100000

900000

-100000

-2600000

600000

The following table sets forth the assets and liabilities of the discontinued operations included in the condensed consolidated balance sheets of the Company as of the dates indicated: <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="50%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="5%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="5%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="5%" valign="bottom">   </td> <td width="2%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="4" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="4" valign="bottom"> May 31, 2012 </td> <td valign="bottom">   </td> <td colspan="4" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="4" valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="4" valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="4" valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Accounts receivable, net </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Inventories, net </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Other assets </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 7.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 7.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 9.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Current assets of discontinued operations </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 7.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 7.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 9.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Accounts payable </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Accrued expenses and other current liabilities </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 2.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 2.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Current liabilities of discontinued operations </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 1.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="bottom"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table>

100000

300000

7000000

9200000

100000

2000000 2100000 1100000

3. Segment Information The Company categorizes its businesses into five reportable segments: Children’s Book Publishing and Distribution; Educational Technology and Services; Classroom and Supplemental Materials Publishing; Media, Licensing and Advertising; and International. This classification reflects the nature of products and services consistent with the method by which the Company’s chief operating decision-maker assesses operating performance and allocates resources. <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="4%" valign="top">   </td> <td width="96%" valign="top">   </td> </tr> <tr> <td valign="top"> • </td> <td valign="top"> Children’s Book Publishing and Distribution operates as an integrated business which includes the publication and distribution of children’s books and other products in the United States through school-based book clubs and book fairs, ecommerce and the trade channel. This segment is comprised of three operating segments. </td> </tr> <tr> <td valign="top">   </td> <td valign="top">   </td> </tr> <tr> <td valign="top"> • </td> <td valign="top"> Educational Technology and Services includes the production and distribution to schools of curriculum-based learning technology and materials for grades pre-kindergarten to 12 in the United States, together with related implementation and assessment services and school consulting services. This segment is comprised of one operating segment. </td> </tr> <tr> <td valign="top">   </td> <td valign="top">   </td> </tr> <tr> <td valign="top"> • </td> <td valign="top"> Classroom and Supplemental Materials Publishing includes the publication and distribution to schools and libraries of children’s books, classroom magazines, supplemental classroom materials 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 two operating segments. </td> </tr> <tr> <td valign="top">   </td> <td valign="top">   </td> </tr> <tr> <td valign="top"> • </td> <td valign="top"> Media, Licensing and Advertising includes the production and/or distribution of digital media, consumer promotions and merchandising and advertising revenue, including sponsorship programs. This segment is comprised of two operating segments. </td> </tr> <tr> <td valign="top">   </td> <td valign="top">   </td> </tr> <tr> <td valign="top"> • </td> <td valign="top"> International includes the publication and distribution of products and services outside the United States by the Company’s international operations, and its export and foreign rights businesses. This segment is comprised of two operating segments. </td> </tr> </table> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td valign="bottom">   </td> <td width="2%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="7%" valign="bottom">   </td> <td width="2%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="7%" valign="bottom">   </td> <td width="2%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="7%" valign="bottom">   </td> <td width="2%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="7%" valign="bottom">   </td> <td width="2%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="7%" valign="bottom">   </td> <td width="2%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="6%" valign="bottom">   </td> <td width="2%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="7%" valign="bottom">   </td> <td width="2%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="6%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Children’s Book Publishing and Distribution (1)(2) </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Educational Technology and Services (1) </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Class room and Supplemental Materials Publishing (1)(3) </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Media, Licensing and Advertising (1)(2) </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Overhead (1)(4) </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> Total Domestic </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> International (1)(5) </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> Total </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Three months ended </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Revenues </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 71.1 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 80.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 37.9 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 14.4 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 203.4 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 90.2 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 293.6 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Bad debt expense </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (0.2 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> 0.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (0.2 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (0.1 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> 0.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.5 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Depreciation and </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> amortization(6) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 3.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 10.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 14.9 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 16.1 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Amortization(7) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 3.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 5.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.7 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 11.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 11.8 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Segment operating income (loss) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (55.2 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> 24.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (2.6 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (17.3 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (50.3 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> 2.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (47.5 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom"> Segment assets at 8/31/12 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 526.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 219.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 171.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 41.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 441.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1,400.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 315.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1,715.8 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Goodwill at 8/31/12 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 54.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 22.7 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 65.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 5.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 147.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 9.9 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 157.7 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Expenditures for long-lived assets including royalty advances </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 15.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 8.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 2.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 7.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 34.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 2.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 37.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Long-lived assets at 8/31/12 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 170.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 103.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 90.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 13.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 244.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 620.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 68.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 689.3 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Three months ended </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Revenues </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 77.5 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 96.6 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 45.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 10.5 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 230.3 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 87.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 318.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Bad debt expense </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.7 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.7 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.4 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Depreciation and amortization(6) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 3.7 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 9.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 13.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 15.1 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Amortization(7) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 3.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 5.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 11.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.7 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 11.9 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Segment operating income (loss) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (50.2 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> 38.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 2.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (4.6 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (19.2 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (33.1 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (0.1 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (33.2 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom"> Segment assets at 8/31/11 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 506.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 185.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 149.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 40.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 396.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1,279.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 270.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1,549.5 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Goodwill at 8/31/11 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 54.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 21.9 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 64.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 5.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 145.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 8.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 154.2 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Expenditures for long-lived assets including royalty advances </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 8.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 5.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.9 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 5.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 21.7 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 2.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 24.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Long-lived assets at 8/31/11 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 172.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 97.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 79.7 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 20.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 244.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 614.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 71.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 685.1 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="4%" valign="top">   </td> <td width="96%" valign="top">   </td> </tr> <tr> <td valign="top"> (1) </td> <td valign="top"> As discussed under “Discontinued Operations” in Note 1, “Basis of Presentation,” the Company closed or sold several operations during fiscal 2009, fiscal 2010 and the first quarter of fiscal 2012 and presently holds for sale one facility. All of these businesses are classified as discontinued operations in the Company’s financial statements and, as such, are not reflected in this table. </td> </tr> <tr> <td valign="top">   </td> <td valign="top">   </td> </tr> <tr> <td valign="top"> (2) </td> <td valign="top"> As discussed under “Segment” in Note 1, a business previously reported in the Media, Licensing and Advertising segment is now included in the Children’s Book Publishing and Distribution segment. </td> </tr> <tr> <td valign="top">   </td> <td valign="top">   </td> </tr> <tr> <td valign="top"> (3) </td> <td valign="top"> Includes assets and results of operations acquired in a business acquisition as of February 8, 2012. </td> </tr> <tr> <td valign="top">   </td> <td valign="top">   </td> </tr> <tr> <td valign="top"> (4) </td> <td valign="top"> 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. Overhead also includes amounts previously allocated to the Media, Licensing and Advertising segment for the Company’s direct-to-home toy catalog business that was discontinued in the first quarter of fiscal 2012. </td> </tr> <tr> <td valign="top">   </td> <td valign="top">   </td> </tr> <tr> <td valign="top"> (5) </td> <td valign="top"> Includes assets and results of operations acquired in a business acquisition as of January 3, 2012. </td> </tr> <tr> <td valign="top">   </td> <td valign="top">   </td> </tr> <tr> <td valign="top"> (6) </td> <td valign="top"> Includes depreciation of property, plant and equipment and amortization of intangible assets. </td> </tr> <tr> <td valign="top">   </td> <td valign="top">   </td> </tr> <tr> <td valign="top"> (7) </td> <td valign="top"> Includes amortization of prepublication and production costs. </td> </tr> </table>

Schedule of segment reporting information <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td valign="bottom">   </td> <td width="2%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="7%" valign="bottom">   </td> <td width="2%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="7%" valign="bottom">   </td> <td width="2%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="7%" valign="bottom">   </td> <td width="2%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="7%" valign="bottom">   </td> <td width="2%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="7%" valign="bottom">   </td> <td width="2%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="6%" valign="bottom">   </td> <td width="2%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="7%" valign="bottom">   </td> <td width="2%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="6%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Children’s Book Publishing and Distribution (1)(2) </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Educational Technology and Services (1) </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Class room and Supplemental Materials Publishing (1)(3) </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Media, Licensing and Advertising (1)(2) </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Overhead (1)(4) </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> Total Domestic </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> International (1)(5) </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> Total </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Three months ended </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Revenues </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 71.1 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 80.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 37.9 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 14.4 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 203.4 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 90.2 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 293.6 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Bad debt expense </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (0.2 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> 0.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (0.2 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (0.1 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> 0.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.5 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Depreciation and </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> amortization(6) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 3.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 10.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 14.9 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 16.1 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Amortization(7) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 3.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 5.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.7 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 11.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 11.8 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Segment operating income (loss) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (55.2 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> 24.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (2.6 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (17.3 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (50.3 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> 2.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (47.5 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom"> Segment assets at 8/31/12 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 526.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 219.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 171.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 41.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 441.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1,400.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 315.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1,715.8 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Goodwill at 8/31/12 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 54.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 22.7 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 65.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 5.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 147.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 9.9 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 157.7 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Expenditures for long-lived assets including royalty advances </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 15.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 8.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 2.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 7.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 34.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 2.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 37.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Long-lived assets at 8/31/12 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 170.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 103.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 90.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 13.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 244.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 620.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 68.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 689.3 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Three months ended </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Revenues </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 77.5 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 96.6 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 45.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 10.5 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 230.3 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 87.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 318.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Bad debt expense </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.7 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.7 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.4 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Depreciation and amortization(6) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 3.7 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 9.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 13.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 15.1 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Amortization(7) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 3.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 5.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 11.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.7 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 11.9 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Segment operating income (loss) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (50.2 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> 38.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 2.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (4.6 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (19.2 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (33.1 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (0.1 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (33.2 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom"> Segment assets at 8/31/11 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 506.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 185.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 149.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 40.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 396.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1,279.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 270.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1,549.5 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Goodwill at 8/31/11 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 54.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 21.9 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 64.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 5.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 145.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 8.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 154.2 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Expenditures for long-lived assets including royalty advances </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 8.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 5.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.9 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 5.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 21.7 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 2.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 24.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Long-lived assets at 8/31/11 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 172.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 97.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 79.7 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 20.2 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 244.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 614.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 71.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 685.1 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table>

71100000

80000000

37900000

14400000

203400000

90200000

-200000

300000

-200000

-100000

600000

3800000

300000

400000

100000

10300000

14900000

1200000

3500000 5500000 1700000 500000 11200000 600000

-55200000

24800000

-2600000

-17300000

-50300000

2800000

526400000 219600000 171400000 41500000 441400000 1400300000 315500000 1715800000

54300000

22700000

65400000

5400000

147800000

9900000

15100000 8200000 1800000 2000000 7500000 34600000 2400000 37000000 170100000 103300000 90000000 13100000 244000000 620500000 68800000 689300000

77500000

96600000

45700000

10500000

230300000

87700000

300000

400000

700000

3700000

300000

100000

9200000

13600000

1500000

3100000 5200000 1400000 1500000 11200000 700000

-50200000

38800000

2100000

-4600000

-19200000

-33100000

-100000

506500000 185800000 149800000 40600000 396600000 1279300000 270200000 1549500000

54300000

21900000

64000000

5400000

145600000

8600000

8200000 5300000 1300000 1900000 5000000 21700000 2300000 24000000 172500000 97100000 79700000 20200000 244600000 614100000 71000000 685100000

4. Debt The following table summarizes debt as of the dates indicated: <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="38%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="6%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="6%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="6%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="6%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="6%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="6%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> Carrying Value </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> Fair Value </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> Carrying Value </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> Fair Value </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> Carrying Value </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> Fair Value </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="5" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="5" valign="bottom"> May 31, 2012 </td> <td valign="bottom">   </td> <td colspan="5" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="5" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="5" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="5" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="top">   </td> </tr> <tr> <td valign="bottom"> Lines of Credit (weighted average interest rates of 4.9%, 5.3% and 4.0%, respectively) </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.6 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.6 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 6.5 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 6.5 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 7.9 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 7.9 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Loan Agreement: </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Revolving Loan </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Term Loan (interest rates of n/a, n/a and 1.0%, respectively) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 39.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 39.5 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> 5% Notes due 2013, net of discount </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 152.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 153.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 152.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 155.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 152.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 153.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Total debt </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 153.4 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 154.2 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 159.3 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 161.9 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 200.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 200.4 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Less lines of credit, short-term debt and current portion of long-term debt </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (0.6 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (0.6 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (6.5 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (6.5 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (47.4 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (47.4 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Total long-term debt </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 152.8 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 153.6 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 152.8 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 155.4 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 152.6 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 153.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table> Short-term debt’s carrying value approximates fair value. Fair value of the Loan Agreement approximates its carrying value due to its variable interest rate and consistent credit rating. Fair values of the Notes were estimated based on market quotes, where available, or dealer quotes. The following table sets forth the maturities of the Company’s debt obligations as of August 31, 2012, for the twelve-month periods ending August 31, <table border="0" cellspacing="0" cellpadding="0" width="52%"> <tr style="FONT-SIZE:1PX"> <td width="77%" valign="bottom">   </td> <td width="5%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="11%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom"> 2013 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.6 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> 2014 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 152.8 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Total debt </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 153.4 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table> Loan Agreement On June 1, 2007, Scholastic Corporation and Scholastic Inc. (each, a “Borrower” and together, the “Borrowers”) entered into a $525.0 credit facility with certain banks (the “Loan Agreement”), consisting of a $325.0 revolving credit component (the “Revolving Loan”) and a $200.0 amortizing term loan component (the “Term Loan”). The Loan Agreement was amended on August 16, 2010, and again on October 25, 2011. The October 25, 2011 amendment extended the maturity of the Revolving Loan facility to June 1, 2014 from June 1, 2012 and provided for the repayment of the outstanding balance of the Term Loan on October 25, 2011. The $325.0 Revolving Loan allows the Company to borrow, repay or prepay and reborrow at any time prior to the stated maturity date, and the proceeds may be used for general corporate purposes, including financing for acquisitions and share repurchases. The Loan Agreement also provides for an increase in the aggregate Revolving Loan commitments of the lenders of up to an additional $150.0. Interest on the Revolving Loan is due and payable in arrears on the last day of the interest period (defined as the period commencing on the date of the advance and ending on the last day of the period selected by the Borrower at the time each advance is made). The interest pricing under the Revolving Loan is dependent upon the Borrower’s election of a rate that is either: <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="4%" valign="top">   </td> <td width="4%" valign="top">   </td> <td width="92%" valign="top">   </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> A Base Rate equal to the higher of (i) the prime rate, (ii) the prevailing Federal Funds rate plus 0.500% or (iii) the Eurodollar Rate for a one month interest period plus 1% plus an applicable spread ranging from 0.18% to 0.60%, as determined by the Company’s prevailing consolidated debt to total capital ratio. </td> </tr> <tr> <td valign="top">   </td> <td valign="top">   </td> <td valign="top">   </td> </tr> <tr> <td valign="top">   </td> <td valign="top">   </td> <td valign="top">                     - Or - </td> </tr> <tr> <td valign="top">   </td> <td valign="top">   </td> <td valign="top">   </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> A Eurodollar Rate equal to the London interbank offered rate (LIBOR) plus an applicable spread ranging from 1.18% to 1.60%, as determined by the Company’s prevailing consolidated debt to total capital ratio. </td> </tr> </table> As of August 31, 2012, the indicated spread on Base Rate Advances was 0.18% and the indicated spread on Eurodollar Rate Advances was 1.18%, both based on the Company’s prevailing consolidated debt to total capital ratio. There were no Revolving Loan Advances outstanding on August 31, 2012. The Loan Agreement also provides for the payment of a facility fee ranging from 0.20% to 0.40% per annum based upon the Company’s prevailing consolidated debt to total capital ratio. At August 31, 2012, the facility fee rate was 0.20%. At August 31, 2012, the Company had open standby letters of credit totaling $6.6, including $1.4 under the Loan Agreement. 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 August 31, 2012, the Company was in compliance with these covenants. Lines of Credit As of August 31, 2012, the Company’s domestic credit lines available under unsecured money market bid rate credit lines totaled $20.0. There were no outstanding borrowings under these credit lines at August 31, 2012, May 31, 2012 and August 31, 2011. 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 August 31, 2012, the Company had various local currency credit lines, with maximum available borrowings in amounts equivalent to $33.8, underwritten by banks primarily in the United States, Canada, Australia and the United Kingdom. These credit lines are typically available for overdraft borrowings or loans up to 364 days and may be renewed, if requested by the Company, at the sole option of the lender. Borrowings and weighted average interest rates for these lines of credit are presented in the table above. 5% Notes due 2013 In April 2003, Scholastic Corporation issued $175.0 of 5% Notes (the “5% Notes”). The 5% Notes are senior unsecured obligations that mature on April 15, 2013. Interest on the 5% Notes is payable semi-annually on April 15 and October 15 of each year through maturity. The Company may at any time redeem all or a portion of the 5% Notes at a redemption price (plus accrued interest to the date of the redemption) equal to the greater of (i) 100% of the principal amount, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest discounted to the date of redemption. As noted above under “Loan Agreement,” the Company amended the terms of the Revolving Loan to extend the maturity date from June 1, 2012 to June 1, 2014. The Company has the ability to use a portion of this credit facility to fully redeem the 5% Notes due 2013 and intends to draw on this credit facility for this purpose. Accordingly, the balance of the 5% Notes is excluded from current liabilities and classified as long-term debt on the Company’s condensed consolidated balance sheet at August 31, 2012 and May 31, 2012.

525000000 325000000 200000000 150000000

0.00500

Eurodollar Rate for a one month interest period plus 1% plus an applicable spread ranging from 0.18% to 0.60%

London interbank offered rate (LIBOR) plus an applicable spread ranging from 1.18% to 1.60%

0.0018 0.0118 0.0020 0.0040 0.0020

6600000

1400000

20000000

33800000

175000000

0.05

The following table summarizes debt as of the dates indicated: <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="38%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="6%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="6%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="6%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="6%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="6%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="6%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> Carrying Value </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> Fair Value </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> Carrying Value </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> Fair Value </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> Carrying Value </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> Fair Value </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="5" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="5" valign="bottom"> May 31, 2012 </td> <td valign="bottom">   </td> <td colspan="5" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="5" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="5" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="5" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="top">   </td> </tr> <tr> <td valign="bottom"> Lines of Credit (weighted average interest rates of 4.9%, 5.3% and 4.0%, respectively) </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.6 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.6 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 6.5 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 6.5 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 7.9 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 7.9 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Loan Agreement: </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Revolving Loan </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Term Loan (interest rates of n/a, n/a and 1.0%, respectively) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 39.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 39.5 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> 5% Notes due 2013, net of discount </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 152.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 153.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 152.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 155.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 152.6 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 153.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Total debt </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 153.4 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 154.2 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 159.3 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 161.9 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 200.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 200.4 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Less lines of credit, short-term debt and current portion of long-term debt </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (0.6 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (0.6 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (6.5 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (6.5 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (47.4 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (47.4 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Total long-term debt </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 152.8 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 153.6 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 152.8 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 155.4 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 152.6 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 153.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table>

600000

6500000

7900000

39500000

152800000

153600000

152800000

155400000

152600000

153000000

153400000

154200000

159300000

161900000

200000000

200400000 600000 6500000 47400000

153600000

155400000

153000000

0.049

0.053

0.040

0.010

0.05

The following table sets forth the maturities of the Company’s debt obligations as of August 31, 2012, for the twelve-month periods ending August 31 <table border="0" cellspacing="0" cellpadding="0" width="52%"> <tr style="FONT-SIZE:1PX"> <td width="77%" valign="bottom">   </td> <td width="5%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="11%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom"> 2013 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.6 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> 2014 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 152.8 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Total debt </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 153.4 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table> 600000

152800000

5. Commitments and 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 loss contingencies 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. Grolier Limited is an indirect subsidiary of Scholastic Corporation, located in the United Kingdom, which ceased operations in fiscal 2008 and the operations of which are included in discontinued operations. The Company is currently in the process of settling a Grolier Limited pension plan in effect at the time it ceased operations and is evaluating the potential pension liabilities under the plan relating to the status of the plan as a defined contribution or a defined benefit plan in the context of the conversion of the plan from a defined benefit to a defined contribution plan in 1986. The Company is not in a position to estimate a range of the reasonably possible liability at this time.

6. 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 three-month periods ended August 31, 2012 and 2011, respectively: <table border="0" cellspacing="0" cellpadding="0" width="80%"> <tr style="FONT-SIZE:1PX"> <td width="47%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="5" valign="bottom"> Three months ended </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Earnings (loss) from continuing operations attributable to Class A and Common Shares </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> (31.9 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> (25.0 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Earnings (loss) from discontinued operations attributable to Class A and Common Shares, net of tax </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (0.1 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (2.0 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Net income (loss) attributable to Class A and Common Shares </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> (32.0 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> (27.0 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Weighted average Shares of Class A Stock and Common Stock outstanding for basic earnings (loss) per share (in millions) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 31.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 31.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Dilutive effect of Class A Stock and Common Stock potentially issuable pursuant to stock-based compensation plans (in millions) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> * </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> * </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Adjusted weighted average Shares of Class A Stock and Common Stock outstanding for diluted earnings (loss) per share (in millions) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> * </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> * </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Earnings (loss) per share of Class A Stock and Common Stock: </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Basic earnings (loss) per share: </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Earnings (loss) from continuing operations </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> (1.02 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.81 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Earnings (loss) from discontinued operations, net of tax </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.00 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.06 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Net income (loss) </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> (1.02 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.87 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Diluted earnings (loss) per share: </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Earnings (loss) from continuing operations </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> (1.02 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.81 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Earnings (loss) from discontinued operations, net of tax </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.00 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.06 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Net income (loss) </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> (1.02 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.87 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table> * In the three months ended August 31, 2012 and 2011, the Company experienced a loss from continuing operations and therefore did not report any dilutive share impact. In periods of Net loss, dilutive earnings per share are not reported as the effect of the potentially dilutive shares becomes anti-dilutive. 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. A portion of the Company’s restricted stock units (“RSUs”) which are granted to employees participate in earnings through cumulative non-forfeitable dividends payable to the employees upon vesting of the RSUs. Accordingly, the Company measures earnings per share based upon the two-class method. Loss from continuing operations exclude losses of less than $0.1 for the three months ended August 31, 2012 and 2011, respectively, for earnings attributable to participating RSUs. Potentially dilutive shares outstanding pursuant to compensation plans that were not included in the diluted earnings per share calculation because they were anti-dilutive were 2.8 million and 4.5 million for the three months ended August 31, 2012 and 2011, respectively. Options outstanding pursuant to compensation plans were 5.1 million and 6.0 million as of August 31, 2012 and 2011, respectively. As of August 31, 2012, $31.4 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.

less than $0.1 less than $0.1

2800000

4500000

5100000

6000000

31400000

The following table summarizes the reconciliation of the numerators and denominators for the basic and diluted earnings (loss) per share computation for the three-month periods ended August 31, 2012 and 2011, respectively: <table border="0" cellspacing="0" cellpadding="0" width="80%"> <tr style="FONT-SIZE:1PX"> <td width="47%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="5" valign="bottom"> Three months ended </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Earnings (loss) from continuing operations attributable to Class A and Common Shares </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> (31.9 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> (25.0 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Earnings (loss) from discontinued operations attributable to Class A and Common Shares, net of tax </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (0.1 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (2.0 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Net income (loss) attributable to Class A and Common Shares </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> (32.0 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> (27.0 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Weighted average Shares of Class A Stock and Common Stock outstanding for basic earnings (loss) per share (in millions) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 31.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 31.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Dilutive effect of Class A Stock and Common Stock potentially issuable pursuant to stock-based compensation plans (in millions) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> * </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> * </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Adjusted weighted average Shares of Class A Stock and Common Stock outstanding for diluted earnings (loss) per share (in millions) </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> * </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> * </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Earnings (loss) per share of Class A Stock and Common Stock: </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Basic earnings (loss) per share: </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Earnings (loss) from continuing operations </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> (1.02 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.81 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Earnings (loss) from discontinued operations, net of tax </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.00 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.06 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Net income (loss) </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> (1.02 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.87 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Diluted earnings (loss) per share: </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Earnings (loss) from continuing operations </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> (1.02 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.81 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Earnings (loss) from discontinued operations, net of tax </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.00 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.06 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Net income (loss) </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> (1.02 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.87 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table>

-31900000 -25000000

-32000000

-27000000

31500000

31000000

7. Goodwill and Other Intangibles Goodwill and other intangible assets with indefinite lives are reviewed annually for impairment or more frequently if impairment indicators arise. The following table summarizes the activity in Goodwill for the periods indicated: <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="50%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Three months ended </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Twelve months ended </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Three months ended </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> May 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Gross beginning balance </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 178.5 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 175.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 175.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Accumulated impairment </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (20.8 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (20.8 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (20.8 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Beginning balance </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 157.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 154.2 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 154.2 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Additions due to acquisition </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 2.7 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Impairment charge </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Foreign currency translation </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Other </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Gross ending balance </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 178.5 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 178.5 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 175.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Accumulated impairment </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (20.8 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (20.8 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (20.8 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Ending balance </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 157.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 157.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 154.2 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table> On February 8, 2012, the Company acquired the business and certain assets of Weekly Reader, a publisher of weekly educational classroom magazines designed for children in grades Pre-K–12, for $2.0 in cash and $4.8 in assumed liabilities, which have been fulfilled by the Company. The Company utilized internally-developed discounted cash flow forecasts and market comparisons of royalty rates to determine the fair value of the assets acquired and the amount to be allocated to goodwill. As a result, the Company recognized $1.4 of goodwill and $5.4 of intangible assets. The results of operations of this business subsequent to the acquisition date are included in the Classroom and Supplemental Materials Publishing segment, and certain assets will benefit the Children’s Book Publishing and Distribution segment. On January 3, 2012, the Company acquired Learners Publishing, a Singapore-based publisher of supplemental learning materials for English-Language Learners, for $2.8, net of cash acquired. The Company utilized Level 3 fair value measurement inputs, using its own assumptions, including internally-developed discounted cash flow forecasts, to determine the fair value of the assets acquired and the amount of goodwill to be allocated to the Learners Publishing business. As a result of this transaction, the Company recorded $1.3 of goodwill. The results of operations of this business subsequent to the acquisition date are included in the International segment. The following table summarizes the activity in Total other intangibles subject to amortization for the periods indicated: <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="50%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Three months ended </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Twelve months ended </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Three months ended </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> May 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Beginning balance - customer lists </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 4.3 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.7 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Additions due to acquisition </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 3.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Amortization expense </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (0.2 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (0.2 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Foreign currency translation </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Customer lists, net of accumulated amortization of $1.5, $1.3 and $1.1, respectively </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 4.2 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 4.3 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.7 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Beginning balance - other </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 10.4 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 17.3 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 17.3 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Additions due to acquisition </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Impairment charge </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (5.4 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Amortization expense </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (0.3 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (1.4 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (0.4 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom"> Other </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (0.1 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Other intangibles, net of accumulated amortization of $10.8, $10.5 and $4.5, respectively </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 10.2 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 10.4 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 16.9 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Total other intangibles subject to amortization </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 14.4 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 14.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 17.6 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table> Amortization expense for Total other intangibles was $0.5 and $0.4 for the three months ended August 31, 2012 and 2011, respectively. Intangible assets with definite lives consist principally of customer lists, covenants not to compete and publishing and trademark rights. Intangible assets with definite lives are amortized over their estimated useful lives. The weighted-average remaining useful lives of all amortizable intangible assets is 9 years. In fiscal 2012, due to declining revenues associated with certain publishing and trademark rights in the Children’s Book Publishing and Distribution segment, the Company determined that the intangible assets associated with these rights were not fully recoverable and recognized an impairment in amortization expense of $4.9 based upon the difference between the carrying value and the fair value of the assets, and reduced the expected useful life of these assets. The Company employed Level 3 fair value measurement techniques to determine the fair value of these assets, including the relief from royalty method. The following table summarizes Other intangibles not subject to amortization at the dates indicated: <table border="0" cellspacing="0" cellpadding="0" width="90%"> <tr style="FONT-SIZE:1PX"> <td width="45%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="13%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="13%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="13%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> May 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Net carrying value by major class: </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Trademarks and other </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 1.8 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Total </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 1.8 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table>

2000000

4800000

1400000

5400000

2800000

1300000

500000

400000

P9Y 4900000

The following table summarizes the activity in Goodwill for the periods indicated: <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="50%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Three months ended </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Twelve months ended </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Three months ended </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> May 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Gross beginning balance </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 178.5 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 175.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 175.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Accumulated impairment </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (20.8 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (20.8 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (20.8 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Beginning balance </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 157.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 154.2 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 154.2 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Additions due to acquisition </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 2.7 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Impairment charge </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Foreign currency translation </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Other </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Gross ending balance </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 178.5 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 178.5 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 175.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Accumulated impairment </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (20.8 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (20.8 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (20.8 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Ending balance </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 157.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 157.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 154.2 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table>

178500000

175000000

-20800000

154200000

2700000

800000

178500000

175000000

-20800000

The following table summarizes the activity in Total other intangibles subject to amortization for the periods indicated: <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="50%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Three months ended </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Twelve months ended </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Three months ended </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> May 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Beginning balance - customer lists </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 4.3 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.7 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Additions due to acquisition </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 3.8 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Amortization expense </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (0.2 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (0.2 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Foreign currency translation </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Customer lists, net of accumulated amortization of $1.5, $1.3 and $1.1, respectively </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 4.2 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 4.3 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.7 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Beginning balance - other </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 10.4 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 17.3 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 17.3 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Additions due to acquisition </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Impairment charge </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (5.4 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Amortization expense </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (0.3 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (1.4 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (0.4 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom"> Other </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (0.1 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Other intangibles, net of accumulated amortization of $10.8, $10.5 and $4.5, respectively </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 10.2 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 10.4 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 16.9 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Total other intangibles subject to amortization </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 14.4 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 14.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 17.6 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table>

4300000

700000

100000

3800000

-200000

4200000

700000

10400000

17300000

-5400000

-300000

-1400000

-400000

100000 -100000

10200000

16900000

14400000

14700000

17600000

1500000

1300000

1100000

10800000

10500000

4500000

The following table summarizes Other intangibles not subject to amortization at the dates indicated: <table border="0" cellspacing="0" cellpadding="0" width="90%"> <tr style="FONT-SIZE:1PX"> <td width="45%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="13%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="13%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="13%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> May 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Net carrying value by major class: </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Trademarks and other </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 1.8 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Total </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 1.8 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table>

2000000

1800000

2000000

1800000

8. Investments Included in “Other assets and deferred charges” on the Company’s condensed consolidated balance sheets were investments of $21.2, $20.6 and $21.2 at August 31, 2012, May 31, 2012 and August 31, 2011, respectively. The Company owns a non-controlling interest in a book distribution business located in the UK, which is accounted for as a cost-basis investment. The Company’s 26.2% non-controlling interest in a children’s book publishing business located in the UK is accounted for using the equity method of accounting. Income from equity investments totaled $0.5 for the three months ended August 31, 2012 and $0.4 for the three months ended August 31, 2011. The following table summarizes the Company’s investments as of the dates indicated: <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="51%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> May 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Cost method investments: </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> UK - based </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 5.5 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 5.2 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 5.7 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Total cost method investments </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 5.5 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 5.2 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 5.7 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Equity method investments: </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> UK - based </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 15.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 15.4 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 14.2 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> U.S. - based </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.3 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Total equity method investments </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 15.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 15.4 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 15.5 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Total </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 21.2 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 20.6 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 21.2 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table>

21200000

20600000

21200000

0.262

500000

400000

The following table summarizes the Company’s investments as of the dates indicated: <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="51%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> May 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Cost method investments: </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> UK - based </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 5.5 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 5.2 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 5.7 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Total cost method investments </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 5.5 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 5.2 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 5.7 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Equity method investments: </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> UK - based </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 15.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 15.4 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 14.2 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> U.S. - based </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.3 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Total equity method investments </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 15.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 15.4 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 15.5 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Total </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 21.2 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 20.6 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 21.2 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table>

5500000

5200000

5700000

5500000

5200000

5700000

15700000

15400000

14200000

1300000

15700000

15400000

15500000

9. Employee Benefit Plans The following table sets forth components of the net periodic benefit costs for the periods indicated under the Company’s cash balance retirement plan for its United States employees meeting certain eligibility requirements (the “U.S. Pension Plan”) and the defined benefit pension plan of Scholastic Ltd., an indirect subsidiary of Scholastic Corporation located in the United Kingdom (the “UK Pension Plan” and, together with the U.S. Pension Plan, the “Pension Plans”). Also included are the post-retirement benefits, consisting of certain healthcare and life insurance benefits, provided by the Company to its eligible retired United States-based employees (the “Post-Retirement Benefits”). The Pension Plans and Post-Retirement Benefits include participants associated with both continuing operations and discontinued operations. <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="34%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="5" valign="bottom"> Pension Plans Three months ended </td> <td valign="bottom">   </td> <td colspan="5" valign="bottom"> Post-Retirement Benefits Three months ended </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Components of net periodic benefit (credit) cost: </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Service cost </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Interest cost </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.7 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 2.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.5 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Expected return on assets </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (2.6 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (2.7 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Net amortization of prior service credit </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (0.1 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (0.2 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom"> Amortization of loss </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.9 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Net periodic benefit (credit) cost </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.4 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.3 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> 1.2 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 1.3 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table> The Company’s funding practice with respect to the Pension Plans is to contribute on an annual basis at least the minimum amounts required by applicable laws. For the three months ended August 31, 2012, the Company contributed $1.9 to the U.S. Pension Plan and $0.5 to the UK Pension Plan. The Company expects, based on actuarial calculations, to contribute cash of approximately $10.6 to the Pension Plans for the fiscal year ending May 31, 2013.

1900000 500000 10600000

Schedule of net periodic costs <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="34%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="5" valign="bottom"> Pension Plans Three months ended </td> <td valign="bottom">   </td> <td colspan="5" valign="bottom"> Post-Retirement Benefits Three months ended </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Components of net periodic benefit (credit) cost: </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Service cost </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Interest cost </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.7 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 2.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.4 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.5 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Expected return on assets </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (2.6 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (2.7 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Net amortization of prior service credit </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> — </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (0.1 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (0.2 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="bottom"> Amortization of loss </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.5 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.9 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Net periodic benefit (credit) cost </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.4 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> (0.3 </td> <td valign="bottom"> ) </td> <td valign="bottom"> $ </td> <td valign="bottom"> 1.2 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 1.3 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table>

1700000

2100000

400000

500000

2600000

2700000

-100000

-200000

500000

300000

900000

1000000

-400000

-300000

1200000

1300000

10. Stock-Based Compensation The following table summarizes stock-based compensation expense included in Selling, general and administrative expenses for the periods indicated: <table border="0" cellspacing="0" cellpadding="0" width="75%"> <tr style="FONT-SIZE:1PX"> <td width="42%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="5" valign="bottom"> Three months ended </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Stock option expense </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 1.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 1.5 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Restricted stock unit expense </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.9 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.7 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Management stock purchase plan </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Employee stock purchase plan </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Total stock-based compensation expense </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.2 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table>

The following table summarizes stock-based compensation expense included in Selling, general and administrative expenses for the periods indicated: <table border="0" cellspacing="0" cellpadding="0" width="75%"> <tr style="FONT-SIZE:1PX"> <td width="42%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="5" valign="bottom"> Three months ended </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Stock option expense </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 1.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 1.5 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Restricted stock unit expense </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.9 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.7 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Management stock purchase plan </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Employee stock purchase plan </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.1 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 0.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Total stock-based compensation expense </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.0 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.2 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table>

1000000

1500000

900000

700000

100000

11. Severance and Exit Costs Severance expense incurred by the Company was $1.3 during the three months ended August 31, 2012, $14.9 during the twelve months ended May 31, 2012 and $3.3 during the three months ended August 31, 2011. Accrued severance of $1.1, $2.7 and $2.4 as of August 31, 2012, May 31, 2012 and August 31, 2011, respectively, is included in “Other accrued expenses” on the Company’s condensed consolidated balance sheets. The table below provides information regarding the severance expense reported in the Company’s condensed consolidated statements of operations. <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="50%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Three months ended August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Twelve months ended May 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Three months ended August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Beginning balance </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 1.9 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 1.9 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Accruals </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 14.9 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 3.3 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Payments </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (2.9 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (14.1 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (2.8 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Ending balance </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 1.1 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.4 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table> 1300000 14900000 3300000 1100000 2700000 2400000 The table below provides information regarding the severance expense reported in the Company’s condensed consolidated statements of operations. <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="50%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="12%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Three months ended August 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Twelve months ended May 31, 2012 </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom" nowrap="nowrap"> Three months ended August 31, 2011 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td colspan="2" valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Beginning balance </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 1.9 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 1.9 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Accruals </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 1.3 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 14.9 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> 3.3 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Payments </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (2.9 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (14.1 </td> <td valign="bottom"> ) </td> <td valign="bottom">   </td> <td valign="bottom"> (2.8 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom"> Ending balance </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 1.1 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.7 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 2.4 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table> 1900000 -2900000 -14100000 -2800000 12. Treasury Stock The Board of Directors has authorized the Company to repurchase Common Stock, from time to time as conditions allow, on the open market or through negotiated private transactions. The table below represents the remaining Board authorization: <table border="0" cellspacing="0" cellpadding="0" width="80%"> <tr style="FONT-SIZE:1PX"> <td width="78%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="14%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Board Authorization </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> Amount </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> September 2010 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 44.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Less repurchases made from November 2011 through August 2012 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (12.6 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Remaining Board authorization at August 31, 2012 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 31.4 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table> The Company’s repurchase program may be suspended at any time without prior notice. No repurchases of Common Stock were made during the first fiscal quarter of 2013.

The Board of Directors has authorized the Company to repurchase Common Stock, from time to time as conditions allow, on the open market or through negotiated private transactions. The table below represents the remaining Board authorization: <table border="0" cellspacing="0" cellpadding="0" width="80%"> <tr style="FONT-SIZE:1PX"> <td width="78%" valign="bottom">   </td> <td width="3%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> <td width="14%" valign="bottom">   </td> <td width="1%" valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Board Authorization </td> <td valign="bottom">   </td> <td colspan="2" valign="bottom"> Amount </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> September 2010 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 44.0 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Less repurchases made from November 2011 through August 2012 </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom"> (12.6 </td> <td valign="bottom"> ) </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> <tr> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> <td valign="bottom">   </td> </tr> <tr> <td valign="bottom"> Remaining Board authorization at August 31, 2012 </td> <td valign="bottom">   </td> <td valign="bottom"> $ </td> <td valign="bottom"> 31.4 </td> <td valign="bottom">   </td> </tr> <tr> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> <td valign="top"> <hr size="1" width="100%" noshade="noshade" /> </td> </tr> </table>

44000000

12600000

13. 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: <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="3%" valign="top">   </td> <td width="3%" valign="top"> </td> <td width="3%" valign="top">   </td> <td width="88%" valign="top">   </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td colspan="2" valign="top"> Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. </td> </tr> <tr> <td valign="top">   </td> <td valign="top">   </td> <td valign="top">   </td> <td valign="top">   </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td colspan="2" valign="top"> Level 2 Observable inputs other than unadjusted quoted prices in active markets for identical assets or liabilities such as </td> </tr> </table> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="3%" valign="top">   </td> <td width="3%" valign="top">   </td> <td width="3%" valign="top">   </td> <td width="3%" valign="top">   </td> <td width="85%" valign="top">   </td> </tr> <tr> <td valign="top">   </td> <td valign="top">   </td> <td valign="top">   </td> <td valign="top"> o </td> <td valign="top"> Quoted prices for similar assets or liabilities in active markets </td> </tr> <tr> <td valign="top">   </td> <td valign="top">   </td> <td valign="top">   </td> <td valign="top"> o </td> <td valign="top"> Quoted prices for identical or similar assets or liabilities in inactive markets </td> </tr> <tr> <td valign="top">   </td> <td valign="top">   </td> <td valign="top">   </td> <td valign="top"> o </td> <td valign="top"> Inputs other than quoted prices that are observable for the asset or liability </td> </tr> <tr> <td valign="top">   </td> <td valign="top">   </td> <td valign="top">   </td> <td valign="top"> o </td> <td valign="top"> Inputs that are derived principally from or corroborated by observable market data by correlation or other means </td> </tr> <tr> <td valign="top">   </td> <td valign="top">   </td> <td valign="top">   </td> <td valign="top">   </td> <td valign="top">   </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td colspan="3" valign="top"> 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. </td> </tr> </table> 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 5% Notes and its various lines of credit. See Note 4, “Debt,” for a more complete description of fair value measurements employed. 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 15, “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: <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="FONT-SIZE:1PX"> <td width="4%" valign="top">   </td> <td width="4%" valign="top">   </td> <td width="92%" valign="top">   </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Long-lived assets </td> </tr> <tr> <td colspan="3" valign="top">   </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Investments </td> </tr> <tr> <td colspan="3" valign="top">   </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Assets acquired in a business combination </td> </tr> <tr> <td colspan="3" valign="top">   </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Goodwill and indefinite-lived intangible assets </td> </tr> <tr> <td colspan="3" valign="top">   </td> </tr> <tr> <td valign="top">   </td> <td valign="top"> • </td> <td valign="top"> Long-lived assets held for sale </td> </tr> </table>

0.05

14. Income Taxes and Other Taxes Income Taxes In calculating the provision for income taxes on an interim basis, the Company uses an estimate of the annual effective tax rate based upon the facts and circumstances known and applies that rate to its year-to-date earnings or losses. The Company’s effective tax rate is based on expected income and statutory tax rates and takes into consideration permanent differences between financial statement and tax return income applicable to the Company in the various jurisdictions in which the Company operates. The effect of discrete items, such as changes in estimates, changes in enacted tax laws or rates or tax status, and unusual or infrequently occurring events, is recognized in the interim period in which the discrete item occurs. The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained or as the result of new judicial interpretations or regulatory or tax law changes. The Company’s annual effective tax rate for the fiscal year ending May 31, 2013 is currently expected to be approximately 39.8%. The Corporation, 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 Corporation file income tax returns in foreign jurisdictions. The Company is routinely audited by various tax authorities. The Company is currently under audit by the Internal Revenue Service for fiscal years ended May 31, 2007, 2008 and 2009. The Company is currently under audit by New York State for fiscal years ended May 31, 2006, 2007 and 2008, and by New York City for fiscal years ended May 31, 2005, 2006 and 2007. If any of these tax examinations are concluded within the next twelve months, the Company will make any necessary adjustments to its unrecognized tax benefits. Non-income Taxes The Company is subject to tax examinations for sales-based taxes. A number of these examinations are ongoing and, in certain cases, have resulted in assessments from taxing authorities. Where a liability associated with these examinations and assessments is probable and can be reliably estimated, the Company has made accruals for these matters which are reflected in the Company’s condensed consolidated financial statements. 0.398

15. Derivatives and Hedging The Company enters into foreign currency derivative contracts to economically hedge the exposure to foreign currency fluctuations associated with the forecasted purchase of inventory and the foreign exchange risk associated with certain receivables denominated in foreign currencies. These derivative contracts are economic hedges and are not designated as cash flow hedges. The Company marks-to-market these instruments and records the changes in the fair value of these items in current earnings, and it recognizes the unrealized gain or loss in other current assets or liabilities. Unrealized gains of less than $0.1 and $0.1 were recognized at August 31, 2012 and 2011, respectively.

less than $0.1 $0.1

16. Subsequent Events On September 19, 2012, the Company announced that the Board of Directors declared a cash dividend of $0.125 per Class A and Common share in respect of the second quarter of fiscal 2013. The dividend is payable on December 17, 2012 to shareholders of record on October 31, 2012.

0.125