Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Oct. 31, 2019 | Nov. 30, 2019 | |
Entity Listings [Line Items] | ||
Entity Registrant Name | JOHN WILEY & SONS, INC. | |
Entity Central Index Key | 0000107140 | |
Current Fiscal Year End Date | --04-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-11507 | |
Entity Tax Identification Number | 13-5593032 | |
Entity Incorporation, State or Country Code | NY | |
Entity Address, Address Line One | 111 River Street | |
Entity Address, City or Town | Hoboken | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07030 | |
City Area Code | 201 | |
Local Phone Number | 748-6000 | |
Common Stock Class A [Member] | ||
Entity Listings [Line Items] | ||
Entity Common Stock, Shares Outstanding | 47,041,052 | |
Title of 12(b) Security | Class A Common Stock, par value $1.00 per share | |
Trading Symbol | JW.A | |
Security Exchange Name | NYSE | |
Common Stock Class B [Member] | ||
Entity Listings [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,115,923 | |
Title of 12(b) Security | Class B Common Stock, par value $1.00 per share | |
Trading Symbol | JW.B | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - UNAUDITED - USD ($) $ in Thousands | Oct. 31, 2019 | Apr. 30, 2019 | |
Current Assets | |||
Cash and cash equivalents | $ 107,744 | $ 92,890 | |
Accounts receivable, net | 235,466 | 294,867 | |
Inventories, net | 45,032 | 35,582 | |
Prepaid expenses and other current assets | 58,926 | 67,441 | |
Total Current Assets | 447,168 | 490,780 | |
Product Development Assets, net | 57,394 | 62,470 | |
Royalty Advances, net | 16,473 | 36,185 | |
Technology, Property and Equipment, net | 294,761 | 289,021 | |
Intangible Assets, net | 880,613 | 865,572 | |
Goodwill | 1,143,197 | 1,095,666 | |
Operating Lease Right-of-Use Assets | 145,886 | 0 | |
Other Non-Current Assets | 97,279 | 97,308 | |
Total Assets | 3,082,771 | 2,937,002 | |
Current Liabilities | |||
Accounts payable | 74,425 | 90,980 | |
Accrued royalties | 91,438 | 78,062 | |
Short-term portion of long-term debt | 6,250 | 0 | |
Contract liabilities | [1] | 248,653 | 507,365 |
Accrued employment costs | 74,727 | 97,230 | |
Accrued income taxes | 3,294 | 21,025 | |
Short-term portion of operating lease liabilities | 18,409 | 0 | |
Other accrued liabilities | 68,446 | 75,900 | |
Total Current Liabilities | 585,642 | 870,562 | |
Long-Term Debt | 788,360 | 478,790 | |
Accrued Pension Liability | 152,707 | 166,331 | |
Deferred Income Tax Liabilities | 137,295 | 143,775 | |
Operating Lease Liabilities | 164,622 | 0 | |
Other Long-Term Liabilities | 75,149 | 96,197 | |
Total Liabilities | 1,903,775 | 1,755,655 | |
Shareholders' Equity | |||
Preferred Stock, $1 par value: Authorized - 2 million, Issued 0 | 0 | 0 | |
Additional paid-in-capital | 429,968 | 422,305 | |
Retained earnings | 1,940,902 | 1,931,074 | |
Accumulated other comprehensive loss | (505,026) | (508,738) | |
Treasury stock | (770,030) | (746,476) | |
Total Shareholders' Equity | 1,178,996 | 1,181,347 | |
Total Liabilities and Shareholders' Equity | 3,082,771 | 2,937,002 | |
Class A [Member] | |||
Shareholders' Equity | |||
Common Stock | 70,149 | 70,127 | |
Class B [Member] | |||
Shareholders' Equity | |||
Common Stock | $ 13,033 | $ 13,055 | |
[1] | The sales return reserve recorded in Contract Liabilities is $37.7 million and $25.9 million, as of October 31, 2019 and April 30, 2019, respectively. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - UNAUDITED (Parenthetical) - $ / shares shares in Thousands | Oct. 31, 2019 | Apr. 30, 2019 |
Shareholders' Equity | ||
Preferred Stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred Stock, shares authorized (in shares) | 2,000 | 2,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Class A [Member] | ||
Shareholders' Equity | ||
Common Stock, par value (in dollars per share) | $ 1 | $ 1 |
Common Stock, shares authorized (in shares) | 180,000 | 180,000 |
Common Stock, shares issued (in shares) | 70,149 | 70,127 |
Treasury stock (in shares) | 23,107 | 22,634 |
Class B [Member] | ||
Shareholders' Equity | ||
Common Stock, par value (in dollars per share) | $ 1 | $ 1 |
Common Stock, shares authorized (in shares) | 72,000 | 72,000 |
Common Stock, shares issued (in shares) | 13,033 | 13,055 |
Treasury stock (in shares) | 3,918 | 3,918 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | ||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED [Abstract] | |||||
Revenue, net | $ 466,205 | $ 448,622 | $ 889,735 | $ 859,523 | |
Costs and Expenses | |||||
Cost of sales | 143,413 | 132,577 | 286,509 | 260,315 | |
Operating and administrative expenses | 240,380 | 236,207 | 490,550 | 476,633 | |
Restructuring and related charges | 4,001 | 9,996 | 14,736 | 3,910 | |
Amortization of intangibles | 15,020 | 12,367 | 29,990 | 25,050 | |
Total Costs and Expenses | 402,814 | 391,147 | 821,785 | 765,908 | |
Operating Income | [1] | 63,391 | 57,475 | 67,950 | 93,615 |
Interest Expense | (6,787) | (3,608) | (12,864) | (6,404) | |
Foreign Exchange Transaction Losses | (2,668) | (54) | (16) | (1,783) | |
Interest and Other Income | 2,537 | 2,509 | 5,370 | 4,975 | |
Income Before Taxes | 56,473 | 56,322 | 60,440 | 90,403 | |
Provision for Income Taxes | 11,783 | 12,538 | 12,126 | 20,324 | |
Net Income | $ 44,690 | $ 43,784 | $ 48,314 | $ 70,079 | |
Earnings Per Share | |||||
Basic (in dollars per share) | $ 0.79 | $ 0.76 | $ 0.86 | $ 1.22 | |
Diluted (in dollars per share) | $ 0.79 | $ 0.76 | $ 0.85 | $ 1.21 | |
Weighted Average Number of Common Shares Outstanding | |||||
Basic (in shares) | 56,326 | 57,379 | 56,431 | 57,392 | |
Diluted (in shares) | 56,664 | 57,870 | 56,791 | 57,955 | |
[1] | Adjusted Contribution to Profit is Contribution to Profit adjusted for restructuring charges (credits). See Note 9, “Restructuring and Related Charges” for these charges (credits) by segment.Adjusted EBITDA is Adjusted Contribution to Profit with depreciation and amortization added back. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED [Abstract] | ||||
Net Income | $ 44,690 | $ 43,784 | $ 48,314 | $ 70,079 |
Other Comprehensive Income (Loss): | ||||
Foreign currency translation adjustment | 38,319 | (20,424) | 2,780 | (60,749) |
Unamortized retirement costs, net of tax benefit (provision) of $1,822, $(1,229), $(358), and $(3,717), respectively | (6,576) | 4,387 | 1,592 | 13,198 |
Unrealized (loss) gain on interest rate swaps, net of tax benefit of $236, $245, $280 and $449, respectively | (745) | (781) | (660) | (1,433) |
Total Other Comprehensive Income (Loss) | 30,998 | (16,818) | 3,712 | (48,984) |
Comprehensive Income | $ 75,688 | $ 26,966 | $ 52,026 | $ 21,095 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Other Comprehensive Income (Loss): | ||||
Unamortized retirement costs, tax benefit (provision) | $ 1,822 | $ (1,229) | $ (358) | $ (3,717) |
Unrealized (loss) gain on interest rate swaps, tax benefit | $ 236 | $ 245 | $ 280 | $ 449 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW - UNAUDITED - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Operating Activities | ||
Net income | $ 48,314 | $ 70,079 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Amortization of intangibles | 29,990 | 25,050 |
Amortization of product development assets | 17,616 | 18,928 |
Depreciation and amortization of technology, property and equipment | 37,251 | 35,845 |
Restructuring and related charges | 14,736 | 3,910 |
Stock-based compensation expense | 10,289 | 8,882 |
Employee retirement plan expense | 4,054 | 3,369 |
Royalty advances | (48,250) | (50,580) |
Earned royalty advances | 67,814 | 71,317 |
Foreign exchange transaction losses | 16 | 1,783 |
Other non-cash charges | 10,643 | 4,328 |
Changes in Operating Assets and Liabilities | ||
Accounts receivable, net | 60,836 | 1,921 |
Accounts payable | (17,765) | (13,856) |
Contract liabilities | (263,665) | (255,890) |
Other accrued liabilities | (34,612) | (54,437) |
Other assets and liabilities | (36,788) | 12,790 |
Net Cash Used in Operating Activities | (99,521) | (116,561) |
Investing Activities | ||
Product development spending | (11,686) | (12,351) |
Additions to technology, property and equipment | (44,531) | (34,560) |
Businesses acquired in purchase transactions, net of cash acquired | (74,169) | 0 |
Acquisitions of publication rights and other | (4,045) | (2,795) |
Net Cash Used in Investing Activities | (134,431) | (49,706) |
Financing Activities | ||
Repayment of long-term debt | (65,680) | (65,800) |
Borrowing of long-term debt | 383,151 | 245,075 |
Payment of debt issuance costs | (4,006) | 0 |
Purchase of treasury shares | (25,000) | (24,994) |
Change in book overdrafts | 681 | (3,066) |
Cash dividends | (38,486) | (38,033) |
Net (payments) proceeds from exercise of stock options and other | (1,393) | 7,283 |
Net Cash Provided by Financing Activities | 249,267 | 120,465 |
Effects of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash | (461) | (8,368) |
Cash Reconciliation: | ||
Cash and cash equivalents | 92,890 | 169,773 |
Restricted cash included in Prepaid expenses and other current assets | 658 | 484 |
Balance at Beginning of Period | 93,548 | 170,257 |
Increase/(Decrease) for the Period | 14,854 | (54,170) |
Cash and cash equivalents | 107,744 | 115,603 |
Restricted cash included in Prepaid expenses and other current assets | 658 | 484 |
Balance at End of Period | 108,402 | 116,087 |
Cash Paid During the Period for: | ||
Interest | 12,125 | 5,713 |
Income taxes, net of refunds | $ 30,170 | $ 18,404 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - UNAUDITED - USD ($) $ in Thousands | Common Stock [Member]Class A [Member] | Common Stock [Member]Class B [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]Class A [Member] | Additional Paid-in Capital [Member]Class B [Member] | Retained Earnings [Member] | Retained Earnings [Member]Class A [Member] | Retained Earnings [Member]Class B [Member] | Treasury Stock [Member] | Treasury Stock [Member]Class A [Member] | Treasury Stock [Member]Class B [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Other Comprehensive Loss [Member]Class A [Member] | Accumulated Other Comprehensive Loss [Member]Class B [Member] | Total | Class A [Member] | Class B [Member] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Adjustment Due to Adoption of New Revenue Standard | $ 0 | $ 0 | $ 0 | $ 4,503 | $ 0 | $ 0 | $ 4,503 | ||||||||||
Balance at Apr. 30, 2018 | 70,111 | 13,071 | 407,120 | 1,834,057 | (694,222) | (439,580) | 1,190,557 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Restricted Shares Issued under Stock-based Compensation Plans | 0 | 0 | (2,984) | 3 | 3,080 | 0 | 99 | ||||||||||
Net (Payments) Proceeds from Exercise of Stock Options and Other | 0 | 0 | 4,700 | 0 | 2,583 | 0 | 7,283 | ||||||||||
Stock-based Compensation Expense | 0 | 0 | 8,882 | 0 | 0 | 0 | 8,882 | ||||||||||
Purchase of Treasury Shares | 0 | 0 | 0 | 0 | (24,994) | 0 | (24,994) | ||||||||||
Common Stock Dividends | 0 | 0 | $ 0 | $ 0 | $ (31,996) | $ (6,037) | $ 0 | $ 0 | $ 0 | $ 0 | $ (31,996) | $ (6,037) | |||||
Common Stock Class Conversions | 14 | (14) | 0 | 0 | 0 | 0 | 0 | ||||||||||
Comprehensive (Loss) Income, Net of Tax | 0 | 0 | 0 | 70,079 | 0 | (48,984) | 21,095 | ||||||||||
Balance at Oct. 31, 2018 | 70,125 | 13,057 | 417,718 | 1,870,609 | (713,553) | (488,564) | 1,169,392 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Adjustment Due to Adoption of New Revenue Standard | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Balance at Jul. 31, 2018 | 70,115 | 13,067 | 413,488 | 1,845,811 | (696,727) | (471,746) | 1,174,008 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Restricted Shares Issued under Stock-based Compensation Plans | 0 | 0 | (828) | 4 | 877 | 0 | 53 | ||||||||||
Net (Payments) Proceeds from Exercise of Stock Options and Other | 0 | 0 | 106 | 0 | (703) | 0 | (597) | ||||||||||
Stock-based Compensation Expense | 0 | 0 | 4,952 | 0 | 0 | 0 | 4,952 | ||||||||||
Purchase of Treasury Shares | 0 | 0 | 0 | 0 | (17,000) | 0 | (17,000) | ||||||||||
Common Stock Dividends | 0 | 0 | 0 | 0 | (15,974) | (3,016) | 0 | 0 | 0 | 0 | (15,974) | (3,016) | |||||
Common Stock Class Conversions | 10 | (10) | 0 | 0 | 0 | 0 | 0 | ||||||||||
Comprehensive (Loss) Income, Net of Tax | 0 | 0 | 0 | 43,784 | 0 | (16,818) | 26,966 | ||||||||||
Balance at Oct. 31, 2018 | 70,125 | 13,057 | 417,718 | 1,870,609 | (713,553) | (488,564) | 1,169,392 | ||||||||||
Balance at Apr. 30, 2019 | 70,127 | 13,055 | 422,305 | 1,931,074 | (746,476) | (508,738) | 1,181,347 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Restricted Shares Issued under Stock-based Compensation Plans | 0 | 0 | (2,793) | 0 | 3,006 | 0 | 213 | ||||||||||
Net (Payments) Proceeds from Exercise of Stock Options and Other | 0 | 0 | 167 | 0 | (1,560) | 0 | (1,393) | ||||||||||
Stock-based Compensation Expense | 0 | 0 | 10,289 | 0 | 0 | 0 | 10,289 | ||||||||||
Purchase of Treasury Shares | 0 | 0 | 0 | 0 | (25,000) | 0 | (25,000) | ||||||||||
Common Stock Dividends | 0 | 0 | 0 | 0 | (32,278) | (6,208) | 0 | 0 | 0 | 0 | (32,278) | (6,208) | |||||
Common Stock Class Conversions | 22 | (22) | 0 | 0 | 0 | 0 | 0 | ||||||||||
Comprehensive (Loss) Income, Net of Tax | 0 | 0 | 0 | 48,314 | 0 | 3,712 | 52,026 | ||||||||||
Balance at Oct. 31, 2019 | 70,149 | 13,033 | 429,968 | 1,940,902 | (770,030) | (505,026) | 1,178,996 | ||||||||||
Balance at Jul. 31, 2019 | 70,139 | 13,043 | 424,904 | 1,915,445 | (755,501) | (536,024) | 1,132,006 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Restricted Shares Issued under Stock-based Compensation Plans | 0 | 0 | (681) | 1 | 787 | 0 | 107 | ||||||||||
Net (Payments) Proceeds from Exercise of Stock Options and Other | 0 | 0 | 60 | 0 | (316) | 0 | (256) | ||||||||||
Stock-based Compensation Expense | 0 | 0 | 5,685 | 0 | 0 | 0 | 5,685 | ||||||||||
Purchase of Treasury Shares | 0 | 0 | 0 | 0 | (15,000) | 0 | (15,000) | ||||||||||
Common Stock Dividends | 0 | 0 | $ 0 | $ 0 | $ (16,130) | $ (3,104) | $ 0 | $ 0 | $ 0 | $ 0 | $ (16,130) | $ (3,104) | |||||
Common Stock Class Conversions | 10 | (10) | 0 | 0 | 0 | 0 | 0 | ||||||||||
Comprehensive (Loss) Income, Net of Tax | 0 | 0 | 0 | 44,690 | 0 | 30,998 | 75,688 | ||||||||||
Balance at Oct. 31, 2019 | $ 70,149 | $ 13,033 | $ 429,968 | $ 1,940,902 | $ (770,030) | $ (505,026) | $ 1,178,996 |
CONDENSED CONSOLIDATED STATEM_8
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - UNAUDITED (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Class A [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock dividend (in dollars per share) | $ 0.34 | $ 0.33 | $ 0.34 | $ 0.33 |
Class B [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock dividend (in dollars per share) | $ 0.34 | $ 0.33 | $ 0.34 | $ 0.33 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Oct. 31, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1 Basis of Presentation Throughout this report, when we refer to “Wiley,” the “Company,” “we,” “our,” or “us,” we are referring to John Wiley & Sons, Inc. and all our subsidiaries, except where the context indicates otherwise. Our Unaudited Condensed Consolidated Financial Statements include all the accounts of the Company and our subsidiaries. We have eliminated all intercompany transactions and balances in consolidation. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Unaudited Condensed Consolidated Financial Condition, Results of Operations, Comprehensive Income and Cash Flows for the periods presented. Operating results for the interim period are not necessarily indicative of the results expected for the full year. All amounts are in thousands, except per share amounts, and approximate due to rounding. These financial statements should be read in conjunction with the most recent audited consolidated financial statements included in our Form 10-K for the fiscal year ended April 30, 2019 as filed with the SEC on July 1, 2019 (“2019 Form 10-K”). Our Unaudited Condensed Consolidated Financial Statements were prepared in accordance with the interim reporting requirements of the SEC. As permitted under those rules, annual footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted. The preparation of our Unaudited Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Certain prior year amounts have been reclassified to conform to the current year’s presentation. The Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended October 31, 2018, includes a reclassification of $4.5 million, between Operating Activities within the net change in operating assets and liabilities and Investing Activities related to costs to fulfill a contract and product development spending. In addition, for the six months ended October 31, 2018, amortization expense related to costs to fulfill a contract of $1.2 million was reclassified from amortization of product development spending to other non-cash charges (credits) within Operating Activities. |
Recent Accounting Standards
Recent Accounting Standards | 6 Months Ended |
Oct. 31, 2019 | |
Recent Accounting Standards [Abstract] | |
Recent Accounting Standards | Note 2 Recent Accounting Standards Recently Adopted Accounting Standards Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-02 “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. We adopted ASU 2018-02 on May 1, 2019. We did not elect to reclassify the income tax effects from comprehensive income to retained earnings for the stranded tax effects resulting from the Tax Cuts and Jobs Act. Our policy for releasing the income tax effects from accumulated other comprehensive income is when the corresponding pretax accumulated other comprehensive income items are reclassified to earnings. Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” to simplify and improve the application and financial reporting of hedge accounting. Subsequently, in November 2018, the FASB issued ASU 2018-1 6, “Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes”. ASU 2017-12 Leases In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)”. Subsequently, the FASB issued in March 2019, ASU 2019-01, “Leases (Topic 842): Codification Improvements”, in December 2018 ASU 2018-20, “Leases (Topic 842): Narrow Scope Improvements for Lessors”, and in July 2018 the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements” and ASU 2018-10, “Codification Improvements to Topic 842, Leases”. ASU 2016-02 requires an entity to recognize a right-of-use asset (“ROU”) and lease liability for all leases with terms of more than 12 months and provide enhanced disclosures. Recognition, measurement, and presentation of expenses depends on classification as a finance or operating lease. Similar modifications have been made to lessor accounting in-line with revenue recognition guidance. The new standard provides a number of optional practical expedients in transition. We elected the practical expedients to forgo a reassessment of (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) initial direct costs. We did not elect the practical expedient allowing the use-of-hindsight which would have required us to reassess the lease term of our leases based on all facts and circumstances through the effective date. In addition, we did not elect the practical expedient pertaining to land easements. In addition, the new standard provides as a practical expedient, certain policy elections for ongoing lease accounting which we elected at the date of adoption and included the following, (i) to not separate nonlease components from the associated lease component if certain conditions are met, and (ii) to not recognize ROU assets and lease liabilities for leases that qualify as short-term. A modified retrospective transition approach was required, applying the standard to all leases existing at the date of initial application. A company could choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as of its date of initial application. We adopted the new standard on May 1, 2019 and used the effective date as the date of initial application. Accordingly, previously reported financial information was not updated, and the disclosures required under the new standard will not be provided for dates and periods before May 1, 2019. At adoption, we recognized operating lease liabilities of $178 million based on the present value of the remaining minimum rental payments for existing operating leases and ROU assets of $142 million on our Unaudited Condensed Consolidated Statement of Financial Position. The difference between the ROU assets and operating lease liabilities represents the existing deferred rent liabilities, prepaid rent balances, and applicable restructuring liabilities, which were reclassified upon adoption to reduce the measurement of the ROU assets. The adoption of the standard did not have an impact on our Unaudited Condensed Consolidated Statement of Shareholders’ Equity, Condensed Consolidated Statement of Income or Condensed Consolidated Statement of Cash Flow. See Note 5, “Operating Leases”, for further details on our operating leases. Recently Issued Accounting Standards Intangibles-Goodwill and Other-Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In August 2018, the FASB issued ASU 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract.” ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for us on May 1, 2020, and interim periods within that fiscal year, with early adoption permitted. We are currently assessing the impact the new guidance will have on our consolidated financial statements. Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans.” ASU 2018-14 removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and added additional disclosures. The standard is effective for us on May 1, 2021, with early adoption permitted. The amendments in ASU 2018-14 would need to be applied on a retrospective basis. We are currently assessing the impact the new guidance will have on our disclosures. Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 removes, modifies and added disclosures. The standard is effective for us on May 1, 2020, with early adoption permitted. Certain disclosures in ASU 2018-13 would need to be applied on a retrospective basis and others on a prospective basis. We are currently assessing the impact the new guidance will have on our disclosures. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, “Intangibles–Goodwill and Other (Topic 350): “Simplifying the Test for Goodwill Impairment”, which simplifies the measurement of a potential goodwill impairment charge by eliminating the requirement to calculate an implied fair value of the goodwill based on the fair value of a reporting unit’s other assets and liabilities. The new guidance eliminates the implied fair value method and instead measures a potential impairment charge based on the excess of a reporting unit’s carrying value compared to its fair value. The impairment charge cannot exceed the total amount of goodwill allocated to that reporting unit. The standard is effective for us on May 1, 2020, with early adoption permitted. Based on our most recent annual goodwill impairment test completed in the year ended April 30, 2019, we expect no impact upon adoption. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” Subsequently, in May 2019, the FASB issued ASU 2019-05 - "Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief”, in April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” in November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses,” and in November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses”. ASU 2016-13 requires entities to measure all expected credit losses for most financial assets held at the reporting date based on an expected loss model which includes historical experience, current conditions, and reasonable and supportable forecasts. Entities will now use forward-looking information to better form their credit loss estimates. ASU 2016-13 also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. ASU 2016-13, ASU 2019-05, ASU 2019-04, ASU 2018-19, and ASU 2019-11 are effective for us on May 1, 2020, including interim periods within those fiscal periods, with early adoption permitted. We are currently assessing the impact the new guidance will have on our consolidated financial statements. |
Acquisitions
Acquisitions | 6 Months Ended |
Oct. 31, 2019 | |
Acquisitions [Abstract] | |
Acquisitions | Note 3 Acquisitions Fiscal Year 2020 Zyante Inc. On July 1, 2019, we completed the acquisition of Zyante Inc. (“zyBooks”), a leading provider of computer science and STEM education courseware. The results of operations of zyBooks is included in our Academic & Professional Learning segment results. The preliminary fair value of the consideration transferred at the acquisition date was $57.0 million which included $55.9 million of cash and $1.1 million of additional consideration to be paid after the acquisition date. The fair value of the cash consideration transferred including those amounts paid after the acquisition date, net of $1.8 million of cash acquired was approximately $54.3 million. The following table summarizes the preliminary consideration transferred to acquire zyBooks and the preliminary allocation of the purchase price among the assets acquired and liabilities assumed. Preliminary Allocation as of July 1, 2019 Total cash consideration transferred at the acquisition date $ 55,884 Assets: Current Assets 2,280 Technology, Property and Equipment, net 28 Intangible Assets, net 24,500 Goodwill 37,246 Total Assets $ 64,054 Liabilities: Current Liabilities 2,581 Deferred Income Tax Liabilities 5,589 Total Liabilities $ 8,170 The following table summarizes the identifiable intangible assets acquired and their weighted-average useful life at the date of acquisition. Estimated Fair Value Weighted-Average Useful Life (in Years) Developed Technology $ 10,400 7 Customer Relationships 6,800 10 Content 4,400 10 Trademarks 2,900 10 Total $ 24,500 Other Acquisitions On May 31, 2019, we completed the acquisition of certain assets of Knewton, Inc. (“Knewton”). Knewton is a provider of affordable courseware and adaptive learning technology. The results of Knewton are included in our Academic & Professional Learning segment results. In addition, in the three months ended July 31, 2019 we also completed the acquisition of two immaterial businesses, which are included in our Research Publishing & Platforms segment and in the three months ended October 31, 2019 one immaterial business included in our Academic & Professional Learning segment results. The preliminary fair value of cash consideration transferred during the six months ended October 31, 2019 was approximately $19.9 million. We recorded the preliminary fair value of the assets acquired and liabilities assumed on the acquisition date, which included a preliminary allocation of $9.4 million of goodwill and $16.2 million of intangible assets. The allocation of the total consideration transferred to the assets acquired and the liabilities assumed for the acquisitions discussed above is preliminary and could be revised as a result of additional information obtained due to the finalization of the third-party valuation report, tax related matters and contingencies, but such amounts will be finalized within the measurement period, which will not exceed one year from the acquisition dates. Fiscal Year 2019 The Learning House, Inc. On November 1, 2018, we completed the acquisition of 100% of the outstanding stock of The Learning House, Inc. (“Learning House”) a diversified education services provider. The results of operations of Learning House are included in our Education Services segment. The fair value of the consideration transferred was $201.3 million which included $200.7 million of cash and $0.6 million of warrants, inclusive of purchase price adjustments which were finalized in the fourth quarter of fiscal year 2019. We financed the payment of the cash consideration through borrowings under our RCA (as defined below in Note 15, “Debt and Available Credit Facilities”). The warrants were classified as equity and allow the holder to purchase 400,000 shares of our Class A Common Stock at an exercise price of $90.00, subject to adjustments. The term of the warrants is three years, expiring on November 1, 2021. The fair value of the warrants was determined using the Black-Scholes option pricing model. The final fair value of the cash consideration transferred, net of $10.3 million of cash acquired was $190.4 million. The allocation of the consideration transferred to the assets acquired and the liabilities assumed is final. |
Revenue Recognition, Contracts
Revenue Recognition, Contracts with Customers | 6 Months Ended |
Oct. 31, 2019 | |
Revenue Recognition, Contracts with Customers [Abstract] | |
Revenue Recognition, Contracts with Customers | Note 4 Revenue Recognition, Contracts with Customers Disaggregation of Revenue As previously announced, we changed our segment reporting structure to align with our strategic focus areas. See Note 10, “Segment Information,” for more details. The following table presents our revenue from contracts with customers disaggregated by segment and product type. Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Research Publishing & Platforms: Research Publishing $ 225,085 $ 219,710 $ 445,012 $ 436,424 Research Platforms 9,624 9,365 19,072 17,968 Total Research Publishing & Platforms 234,709 229,075 464,084 454,392 Academic & Professional Learning: Education Publishing 101,741 107,474 167,264 181,508 Professional Learning 75,984 82,196 155,319 164,586 Total Academic & Professional Learning 177,725 189,670 322,583 346,094 Education Services: Education Services 53,771 29,877 103,068 59,037 Total Education Services 53,771 29,877 103,068 59,037 Total Revenue $ 466,205 $ 448,622 $ 889,735 $ 859,523 Accounts Receivable, net and Contract Liability Balances When consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue when, or as, control of the products or services are transferred to the customer and all revenue recognition criteria have been met. The following table provides information about receivables and contract liabilities from contracts with customers. October 31, 2019 April 30, 2019 Increase/ (Decrease) Balances from contracts with customers: Accounts receivable, net $ 235,466 $ 294,867 $ (59,401 ) Contract liabilities (1) 248,653 507,365 (258,712 ) Contract liabilities (included in Other Long-Term Liabilities) $ 19,622 $ 10,722 $ 8,900 (1) The sales return reserve recorded in Contract Liabilities is $37.7 million and $25.9 million, as of October 31, 2019 and April 30, 2019, respectively. Revenue recognized for the three and six months ended October 31, 2019 relating to the contract liability at April 30, 2019 was $184.6 million and $378.9 million, respectively. Remaining Performance Obligations included in Contract Liability As of October 31, 2019, the aggregate amount of the transaction price allocated to the remaining performance obligations is approximately $268.3 million, which included the sales return reserve of $37.7 million. Excluding the sales return reserve, we expect that approximately $211.0 million will be recognized in the next twelve months with the remaining $19.6 million to be recognized thereafter. Assets Recognized for the Costs to Fulfill a Contract Costs to fulfill a contract are directly related to a contract that will be used to satisfy a performance obligation in the future and are expected to be recovered. These types of costs are incurred in the following revenue streams, (1) Research Platforms and (2) Education Services. Our assets associated with incremental costs to fulfill a contract were $10.3 million at October 31, 2019 and are included within Other Non-Current Assets on our Unaudited Condensed Consolidated Statements of Financial Position. We recorded amortization expense of $1.1 million and $2.1 million during the three and six months ended October 31, 2019, respectively, related to these assets within Cost of Sales on the Unaudited Condensed Consolidated Statements of Income. We recorded amortization expense of $0.4 million and $1.2 million during the three and six months ended October 31, 2018, respectively, related to these assets within Cost of Sales on the Unaudited Condensed Consolidated Statements of Income. Sales and value-added taxes are excluded from revenues. Shipping and handling costs, which are primarily incurred within the Academic & Professional Learning segment occur before the transfer of control of the related goods. Therefore, in accordance with the new revenue standard, it is not considered a promised service to the customer and would be considered a cost to fulfill our promise to transfer the goods. Costs incurred for third party shipping and handling are reflected in Operating and Administrative Expenses on the Unaudited Condensed Consolidated Statements of Income. We incurred $7.6 million and $15.0 million in shipping and handling costs in the three and six months ended October 31, 2019, respectively. We incurred $8.6 million and $16.5 million in shipping and handling costs in the three and six months ended October 31, 2018, respectively. |
Operating Leases
Operating Leases | 6 Months Ended |
Oct. 31, 2019 | |
Operating Leases [Abstract] | |
Operating Leases | Note 5 Operating Leases On May 1, 2019, we adopted a new accounting standard for leases. For further information, see Note 2, “Recent Accounting Standards.” We have contractual obligations as a lessee with respect to offices, warehouses and distribution centers, automobiles, and office equipment. We determine if an arrangement is a lease at inception of the contract in accordance with guidance detailed in the new standard and we perform the lease classification test as of the lease commencement date. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The present value of the lease payments is calculated using an incremental borrowing rate, which was determined based on the rate of interest that we would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. We use an unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate. Under the new leasing standard, leases that are more than one year in duration are capitalized and recorded on the Unaudited Condensed Consolidated Statements of Financial Position. Some of our leases offer an option to extend the term of such leases. We utilize the reasonably certain threshold criteria in determining which options we will exercise. Furthermore, some of our lease payments are based on index rates with minimum annual increases. These represent fixed payments and are captured in the future minimum lease payments calculation. For operating leases, the ROU assets and liabilities are presented in our Unaudited Condensed Consolidated Statement of Financial Position as follows: October 31, 2019 Operating Lease Right-of-Use Assets $ 145,886 Short-term portion of operating lease liabilities 18,409 Operating Lease Liabilities, non-current $ 164,622 During the six months ended October 31, 2019, we added $12.1 million to the ROU assets and $13.7 million to the operating lease liabilities due to new leases as well as modifications and remeasurements to our existing operating leases. Our total net lease costs are as follows: Three Months Ended October 31, 2019 Six Months Ended October 31, 2019 Operating lease cost $ 6,199 $ 13,060 Variable lease cost 915 2,118 Sublease income 184 (339 ) Total net lease cost $ 7,298 $ 14,839 Other supplemental information includes the following: Weighted-Average Remaining Contractual Lease Term (Years) Six Months Ended October 31, 2019 Operating leases 10 Weighted-average discount rate: Operating leases 5.91 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 14,716 The table below reconciles the undiscounted cash flows for the first five years and total of the remaining years to the operating lease liabilities recorded in the Unaudited Condensed Consolidated Statement of Financial Position as of October 31, 2019 : Fiscal Year Operating Lease Liabilities 2020 (remaining 6 months) $ 16,758 2021 28,073 2022 25,085 2023 22,683 2024 21,791 Thereafter 134,823 Total undiscounted lease payments 249,213 Less: Imputed interest 66,182 Present Value of Minimum Lease Payments 183,031 Less: Current portion 18,409 Noncurrent portion $ 164,622 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Oct. 31, 2019 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 6 Stock-Based Compensation We have stock-based compensation plans under which employees may be granted performance-based stock awards and other restricted stock awards. Prior to fiscal year 2017, we also granted options to purchase shares of our common stock at the fair market value at the time of grant. We recognize the grant date fair value of stock-based compensation in net income on a straight-line basis, net of estimated forfeitures over the requisite service period. The measurement of performance for performance-based stock awards is based on actual financial results for targets established three years in advance. For the three months ended October 31, 2019 and 2018, we recognized stock-based compensation expense, on a pre-tax basis, of $5.7 million and $5.0 million, respectively. For the six months ended October 31, 2019 and 2018, we recognized stock-based compensation expense, on a pre-tax basis, of $10.3 million and $8.9 million, respectively. The following table summarizes restricted stock awards we granted (shares in thousands): Six Months Ended October 31, 2019 2018 Restricted Stock: Awards granted 716 397 Weighted average fair value of grant $ 44.75 $ 63.33 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Oct. 31, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note 7 Accumulated Other Comprehensive Loss Changes in Accumulated Other Comprehensive Loss by component, net of tax, for the three and six months ended October 31, 2019 and 2018 were as follows: Foreign Currency Translation Unamortized Retirement Costs Interest Rate Swaps Total Balance at July 31, 2019 $ (347,646 ) $ (187,889 ) $ (489 ) $ (536,024 ) Other comprehensive income (loss) before reclassifications 38,319 (7,960 ) (481 ) 29,878 Amounts reclassified from accumulated other comprehensive loss — 1,384 (264 ) 1,120 Total other comprehensive income (loss) 38,319 (6,576 ) (745 ) 30,998 Balance at October 31, 2019 $ (309,327 ) $ (194,465 ) $ (1,234 ) $ (505,026 ) Balance at April 30, 2019 $ (312,107 ) $ (196,057 ) $ (574 ) $ (508,738 ) Other comprehensive income (loss) before reclassifications 2,780 (830 ) (153 ) 1,797 Amounts reclassified from accumulated other comprehensive loss — 2,422 (507 ) 1,915 Total other comprehensive income (loss) 2,780 1,592 (660 ) 3,712 Balance at October 31, 2019 $ (309,327 ) $ (194,465 ) $ (1,234 ) $ (505,026 ) Foreign Currency Translation Unamortized Retirement Costs Interest Rate Swaps Total Balance at July 31, 2018 $ (291,898 ) $ (182,215 ) $ 2,367 $ (471,746 ) Other comprehensive income (loss) before reclassifications (20,424 ) 3,273 543 (16,608 ) Amounts reclassified from accumulated other comprehensive loss — 1,114 (1,324 ) (210 ) Total other comprehensive income (loss) (20,424 ) 4,387 (781 ) (16,818 ) Balance at October 31, 2018 $ (312,322 ) $ (177,828 ) $ 1,586 $ (488,564 ) Balance at April 30, 2018 $ (251,573 ) $ (191,026 ) $ 3,019 $ (439,580 ) Other comprehensive income (loss) before reclassifications (60,749 ) 10,993 613 (49,143 ) Amounts reclassified from accumulated other comprehensive loss — 2,205 (2,046 ) 159 Total other comprehensive income (loss) (60,749 ) 13,198 (1,433 ) (48,984 ) Balance at October 31, 2018 $ (312,322 ) $ (177,828 ) $ 1,586 $ (488,564 ) During the three months ended October 31, 2019 and 2018, pre-tax actuarial losses included in Unamortized Retirement Costs of approximately $1.7 million and $1.4 million, respectively, and in the , approximately $ million and $ million, respectively, |
Reconciliation of Weighted Aver
Reconciliation of Weighted Average Shares Outstanding | 6 Months Ended |
Oct. 31, 2019 | |
Reconciliation of Weighted Average Shares Outstanding [Abstract] | |
Reconciliation of Weighted Average Shares Outstanding | Note 8 Reconciliation of Weighted Average Shares Outstanding A reconciliation of the shares used in the computation of earnings per share follows: Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Weighted average shares outstanding 56,339 57,426 56,451 57,451 Less: Unvested restricted shares (13 ) (47 ) (20 ) (59 ) Shares used for basic earnings per share 56,326 57,379 56,431 57,392 Dilutive effect of stock options and other stock awards 338 491 360 563 Shares used for diluted earnings per share 56,664 57,870 56,791 57,955 Since their inclusion in the calculation of diluted earnings per share would have been anti-dilutive, options to purchase 212,094 shares of Class A Common Stock have been excluded for both the three and six months ended October 31, 2019, respectively and 157,167 shares of Class A Common Stock have been excluded for the three and six months ended October 31, 2018, respectively. Warrants to purchase 515,114 shares of Class A Common Stock have not been included for both the three and six months ended October 31, 2019, respectively. There were no warrants issued during the three and six months ended October 31, 2018. There were no restricted shares excluded for the three and six months ended October 31, 2019 and 2018, respectively. |
Restructuring and Related Charg
Restructuring and Related Charges | 6 Months Ended |
Oct. 31, 2019 | |
Restructuring and Related Charges [Abstract] | |
Restructuring and Related Charges | Note 9 Restructuring and Related Charges Business Optimization Program Beginning in fiscal year 2020, we initiated a multi-year Business Optimization Program (the “Business Optimization Program”) to drive efficiency improvement and operating savings. The following tables summarize the pre-tax restructuring charges related to this program: Three Months Ended October 31, Six Months Ended October 31, 2019 2019 Charges (Credits) by Segment: Research Publishing & Platforms $ 29 $ 2,665 Academic & Professional Learning 765 3,542 Education Services (475 ) 1,717 Corporate Expenses 2,835 6,100 Total Restructuring and Related Charges $ 3,154 $ 14,024 Charges by Activity: Severance and termination benefits $ 578 $ 11,287 Operating lease right-of-use asset impairment — 161 Facility related charges 1,240 1,240 Other Activities 1,336 1,336 Total Restructuring and Related Charges $ 3,154 $ 14,024 Other Activities for the three and six months ended October 31, 2019 relate to reserves associated with the cessation of certain offerings and the impairment of certain software licenses. The following table summarizes the activity for the Business Optimization Program liability for the six months ended October 31, 2019 : April 30, 2019 Charges Payments Foreign Translation & Other Adjustments October 31, 2019 Severance and termination benefits $ — $ 11,287 $ (2,760 ) $ (168 ) $ 8,359 Other Activities — 1,336 — (365 ) 971 Total $ — $ 12,623 $ (2,760 ) $ (533 ) $ 9,330 The restructuring liability as of October 31, 2019 for accrued severance and termination benefits is reflected in Accrued Employment Costs in the Unaudited Condensed Consolidated Statement of Financial Position. The restructuring liability as of October 31, 2019 for other activities is reflected in Other Accrued Liabilities in the Unaudited Condensed Consolidated Statement of Financial Position. Restructuring and Reinvestment Program Beginning in the year ended April 30, 2013, we initiated a global program (the “Restructuring and Reinvestment Program”) to restructure and realign our cost base with current and anticipated future market conditions. We are targeting a majority of the expected cost savings achieved to improve margins and earnings, while the remainder will be reinvested in high-growth digital business opportunities. The following tables summarize the pre-tax restructuring charges related to this program: Three Months Ended October 31, Six Months Ended October 31, Total Charges 2019 2018 (1) 2019 2018 (1) Incurred to Date Charges (Credits) by Segment: Research Publishing & Platforms $ 697 $ 2,282 $ 681 $ 1,302 $ 27,225 Academic & Professional Learning 35 2,194 63 1,477 42,902 Education Services — 310 (103 ) 102 3,764 Corporate Expenses 115 5,210 71 1,029 96,449 Total Restructuring and Related Charges $ 847 $ 9,996 $ 712 $ 3,910 $ 170,340 Charges by Activity: Severance and termination benefits $ 847 $ 8,672 $ 497 $ 2,894 $ 116,756 Consulting and Contract Termination Costs — 90 — 225 21,155 Other Activities — 1,234 215 791 32,429 Total Restructuring and Related Charges $ 847 $ 9,996 $ 712 $ 3,910 $ 170,340 (1) As previously announced, we have changed our segment reporting structure to align with our strategic focus areas. See Note 10, “Segment Information,” for more details. Other Activities for the three and six months ended October 31, 2019 include facility related costs. Other Activities for the three and six months ended October 31, 2018 include lease impairment related costs. The following table summarizes the activity for the Restructuring and Reinvestment Program liability for the six months ended October 31, 2019 : April 30, 2019 Charges Payments Adoption of New Lease Standard (1) Foreign Translation & Other Adjustments October 31, 2019 Severance and termination benefits $ 4,887 $ 497 $ (3,125 ) $ — $ 203 $ 2,462 Consulting and Contract Termination Costs 303 — — — — 303 Other Activities 2,544 — — (2,258 ) (34 ) 252 Total $ 7,734 $ 497 $ (3,125 ) $ (2,258 ) $ 169 $ 3,017 (1) Refer to Note 2, “Recent Accounting Standards,” and Note 5, “Operating Leases” for more information related to the adoption of the new lease standard. The restructuring liability as of October 31, 2019 for accrued severance and termination benefits is reflected in Accrued Employment Costs in the Unaudited Condensed Consolidated Statement of Financial Position. The liability as of October 31, 2019, for Consulting and Contract Termination Costs is reflected in Other Accrued Liabilities. As of October 31, 2019, $0.3 million of Other Activities are reflected in Other Accrued Liabilities and mainly relate to facility relocation and lease impairment related costs. We currently do not anticipate any further material charges related to the Restructuring and Reinvestment Program. |
Segment Information
Segment Information | 6 Months Ended |
Oct. 31, 2019 | |
Segment Information [Abstract] | |
Segment Information | Note 10 Segment Information As previously announced, we have changed our segment reporting structure to align with our strategic focus areas: (1) Research Publishing & Platforms, which includes the Research publishing and Atypon businesses, (2) Academic & Professional Learning, which is the former “Publishing” segment combined with our corporate training businesses – previously noted as Professional Assessment and Corporate Learning; and (3) Education Services, which is the online program management business. Prior period segment results have been revised to the new segment presentation. There were no changes to our consolidated financial results. We report our segment information in accordance with the provisions of FASB ASC Topic 280. These segments reflect the way our chief operating decision maker evaluates our business performance and manages the operations. Segment information is as follows: Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Revenue Research Publishing & Platforms $ 234,709 $ 229,075 $ 464,084 $ 454,392 Academic & Professional Learning 177,725 189,670 322,583 346,094 Education Services 53,771 29,877 103,068 59,037 Total Revenue $ 466,205 $ 448,622 $ 889,735 $ 859,523 Contribution to Profit: Research Publishing & Platforms $ 63,291 $ 59,210 $ 118,937 $ 116,527 Academic & Professional Learning 35,050 47,078 39,961 68,845 Education Services 2,583 (867 ) (4,616 ) (5,886 ) Total Contribution to Profit (1) $ 100,924 $ 105,421 $ 154,282 $ 179,486 Corporate Expenses (37,533 ) (47,946 ) (86,332 ) (85,871 ) Operating Income (1) $ 63,391 $ 57,475 $ 67,950 $ 93,615 Adjusted Contribution to Profit: (1) Research Publishing & Platforms $ 64,017 $ 61,492 $ 122,283 $ 117,829 Academic & Professional Learning 35,850 49,272 43,566 70,322 Education Services 2,108 (557 ) (3,002 ) (5,784 ) Total Adjusted Contribution to Profit $ 101,975 $ 110,207 $ 162,847 $ 182,367 Adjusted Corporate Expenses (34,583 ) (42,736 ) (80,161 ) (84,842 ) Total Adjusted Operating Income $ 67,392 $ 67,471 $ 82,686 $ 97,525 Depreciation and Amortization: Research Publishing & Platforms $ 17,037 $ 15,422 $ 34,190 $ 30,787 Academic & Professional Learning 17,349 17,473 33,873 35,050 Education Services 5,522 3,045 11,020 6,512 Total Depreciation and Amortization $ 39,908 $ 35,940 $ 79,083 $ 72,349 Corporate Depreciation and Amortization 2,730 3,712 5,774 7,474 Total Depreciation and Amortization $ 42,638 $ 39,652 $ 84,857 $ 79,823 Adjusted EBITDA: (2) Research Publishing & Platforms $ 81,054 $ 76,914 $ 156,473 $ 148,616 Academic & Professional Learning 53,199 66,745 77,439 105,372 Education Services 7,630 2,488 8,018 728 Total Segment Adjusted EBITDA $ 141,883 $ 146,147 $ 241,930 $ 254,716 Corporate Adjusted EBITDA (31,853 ) (39,024 ) (74,387 ) (77,368 ) Total Adjusted EBITDA $ 110,030 $ 107,123 $ 167,543 $ 177,348 (1) Adjusted Contribution to Profit is Contribution to Profit adjusted for restructuring charges (credits). See Note 9, “Restructuring and Related Charges” for these charges (credits) by segment. (2) Adjusted EBITDA is Adjusted Contribution to Profit with depreciation and amortization added back. The following table shows a reconciliation of GAAP net income to Non-GAAP EBITDA and Adjusted EBITDA: Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Net Income $ 44,690 $ 43,784 $ 48,314 $ 70,079 Interest expense 6,787 3,608 12,864 6,404 Provision for income taxes 11,783 12,538 12,126 20,324 Depreciation and amortization 42,638 39,652 84,857 79,823 Non-GAAP EBITDA $ 105,898 $ 99,582 $ 158,161 $ 176,630 Restructuring and related charges 4,001 9,996 14,736 3,910 Foreign exchange transaction losses 2,668 54 16 1,783 Interest and other income (2,537 ) (2,509 ) (5,370 ) (4,975 ) Non-GAAP Adjusted EBITDA $ 110,030 $ 107,123 $ 167,543 $ 177,348 |
Inventories
Inventories | 6 Months Ended |
Oct. 31, 2019 | |
Inventories [Abstract] | |
Inventories | Note 11 Inventories Inventories, net were as follows: October 31, 2019 April 30, 2019 Finished Goods $ 36,258 $ 33,736 Work-in-Process 2,637 2,094 Paper and Other Materials 344 373 $ 39,239 $ 36,203 Inventory Value of Estimated Sales Returns 9,889 3,739 LIFO Reserve (4,096 ) (4,360 ) Total Inventories $ 45,032 $ 35,582 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Oct. 31, 2019 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | Note 12 Goodwill and Intangible Assets Goodwill The following table summarizes the activity in goodwill by segment as of October 31, 2019: April 30, 2019 Acquisitions (1) Foreign Translation Adjustment October 31, 2019 Research Publishing & Platforms $ 438,511 $ 844 $ 640 $ 439,995 Academic & Professional Learning 458,145 45,752 134 504,031 Education Services 199,010 161 — 199,171 Total $ 1,095,666 $ 46,757 $ 774 $ 1,143,197 (1) Refer to Note 3, “Acquisitions,” for more information related to the acquisitions that occurred in the six months ended October 31, 2019. As previously announced, we have changed our segment reporting structure to align with our strategic focus areas. See Note 10, “Segment Information,” for more details. Due to this reorganization, we have reallocated goodwill to our reporting units using a relative fair value approach. We tested goodwill for impairment immediately before and after the reorganization, and we concluded that the fair values of the reporting units were above their carrying values and, therefore, there was no indication of impairment. Intangible Assets Identifiable intangible assets, net consisted of the following: October 31, 2019 April 30, 2019 Intangible Assets with Determinable Lives, net: Content and Publishing Rights (1) $ 384,364 $ 389,172 Customer Relationships (1) 245,822 245,830 Brands and Trademarks (1) 11,753 12,993 Covenants not to Compete 345 445 Developed Technology (1) 17,989 — Total 660,273 648,440 Intangible Assets with Indefinite Lives: Brands and Trademarks 134,005 130,909 Content and Publishing Rights 86,335 86,223 Total 220,340 217,132 Total Intangible Assets, Net $ 880,613 $ 865,572 (1) Refer to Note 3, “Acquisitions,” for more information related to the acquisitions that occurred in the six months ended October 31, 2019. |
Income Taxes
Income Taxes | 6 Months Ended |
Oct. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | Note 13 Income Taxes The effective tax rate for the three months ended October 31, 2019 was 20.9%, compared with 22.3% for the three months ended October 31, 2018. The effective tax rate for the was compared with for the six months ended October 31, 2018. The rates for the three and six months ended October 31, 2019 were lower than the rates for the three and six months ended October 31, 2018 primarily due to a more favorable earnings mix, as well as certain net discrete items, including a tax-free life insurance recovery. , the rates would have been and for the ended , respectively. |
Retirement Plans
Retirement Plans | 6 Months Ended |
Oct. 31, 2019 | |
Retirement Plans [Abstract] | |
Retirement Plans | Note 14 Retirement Plans The components of net pension expense (income) for our global defined benefit plans were as follows: Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Service cost $ 1,093 $ 229 $ 1,317 $ 462 Interest cost 6,350 6,169 12,184 12,381 Expected return on plan assets (9,886 ) (9,720 ) (19,945 ) (19,622 ) Net amortization of prior service cost (19 ) (24 ) (38 ) (48 ) Unrecognized net actuarial loss 1,581 1,474 3,181 2,908 Net pension income $ (881 ) $ (1,872 ) $ (3,301 ) $ (3,919 ) Employer defined benefit pension plan contributions were $3.3 million and $3.5 million for the three months ended October 31, 2019 and 2018, respectively, and $ million and $ million for the , respectively. The expense for employer defined contribution plans were approximately $3.1 million and $2.8 million for the three months ended October 31, 2019 and 2018, respectively , and $ million and $ million for the , respectively |
Debt and Available Credit Facil
Debt and Available Credit Facilities | 6 Months Ended |
Oct. 31, 2019 | |
Debt and Available Credit Facilities [Abstract] | |
Debt and Available Credit Facilities | Note 15 Debt and Available Credit Facilities Amended and Restated RCA On May 30, 2019, we entered into a credit agreement that amended and restated our existing revolving credit agreement (“Amended and Restated RCA”). The Amended and Restated RCA provides for senior unsecured credit facilities comprised of a (i) five-year revolving credit facility in an aggregate principal amount up to $1.25 billion, and (ii) a five-year term loan A facility consisting of $250 million. Under the terms of the Amended and Restated RCA, which can be drawn in multiple currencies, we have the option of borrowing at the following floating interest rates: (i) at a rate based on the London Interbank Offered Rate (“LIBOR”) plus an applicable margin ranging from 0.98% to 1.50%, depending on our consolidated net leverage ratio, as defined, or (ii) at the lender’s base rate plus an applicable margin ranging from zero to 0.50%, depending on our consolidated net leverage ratio. The lender’s base rate is defined as the highest of (i) the U.S. federal funds effective rate plus a 0.50% margin, (ii) the Eurocurrency rate, as defined, plus a 1.00% margin, or (iii) the Bank of America prime lending rate. In addition, we pay a facility fee for the revolving credit facility ranging from 0.15% to 0.25% depending on our consolidated net leverage ratio. We also have the option to request an increase in the revolving credit facility by an amount not to exceed $500 million, in minimum increments of $50 million, subject to the approval of the lenders. The Amended and Restated RCA We incurred in the three months ended July 31, 2019 an immaterial loss on the write-off of unamortized deferred costs in connection with the refinancing of our RCA (as defined below) which is reflected in Interest and Other Income on the Unaudited Condensed Consolidated Statements of Income for the six months ended October 31, 2019. We incurred in the three months ended July 31, 2019 $4.0 million of costs related to the Amended and Restated RCA which resulted in total costs capitalized of $5.2 million. The amount related to the term loan A facility was $0.9 million, consisting of $0.8 million of lender fees and recorded as a reduction to Long-Term Debt and $0.1 million of non-lender fees included in Other Non-Current Assets. The amount related to the five-year revolving credit facility was $4.3 million, all of which is included in Other Non-Current Assets. The amortization expense of the lender and non-lender fees is recognized over the five-year term of the Amended and Restated RCA. Total amortization expense in the three and six months ended October 31, 2019 was $0.3 million and $0.5 million respectively, and is included in Interest Expense on our Unaudited Condensed Consolidated Statement of Income. Our total debt outstanding as of October 31, 2019 was $794.7 million, which included $6.3 million of current portion of long-term debt related to our term loan A under the Amended and Restated RCA and long-term debt of $788.4 million. The long-term debt consisted of $241.4 million related to our term loan A under the Amended and Restated RCA (amount is net of unamortized issuance costs of $0.8 million) and $547.0 million related to the revolving credit facility under the Amended and Restated RCA. RCA As of April 30, 2019, total debt outstanding was $478.8 million, which consisted of amounts due under our RCA. We had a revolving credit agreement (“RCA”) with a syndicated bank group led by Bank of America. The RCA consisted of a $1.1 billion five-year senior revolving credit facility payable March 1, 2021. Since there were no principal payments due until the end of the agreement in the year ended April 30, 2021, we had classified our entire debt obligation as long-term as of April 30, 2019. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Oct. 31, 2019 | |
Derivative Instruments and Hedging Activities [Abstract] | |
Derivative Instruments and Hedging Activities | Note 16 Derivative Instruments and Hedging Activities From time-to-time, we enter into forward exchange and interest rate swap contracts as a hedge against foreign currency asset and liability commitments, changes in interest rates and anticipated transaction exposures, including intercompany purchases. All derivatives are recognized as assets or liabilities and measured at fair value on our Unaudited Condensed Consolidated Statements of Financial Position. Derivatives that are not determined to be effective hedges are adjusted to fair value with a corresponding adjustment to earnings. We do not use financial instruments for trading or speculative purposes. Interest Rate Contracts As of October 31, 2019, we had total debt outstanding of $794.7 million, net of unamortized issuance costs of $0.8 million of which $795.5 million are variable rate loans outstanding under the Amended and Restated RCA, which approximated fair value. On August 7, 2019 we entered into a forward starting interest rate swap agreement, which fixed a portion of the variable interest due on our Amended and Restated RCA. Under the terms of the agreement, we pay a fixed rate of 1.400% and receive a variable rate of interest based on one-month LIBOR from the counterparty which is reset every month for a three-year period ending August 15, 2022. As of October 31, 2019, the notional amount of the interest rate swap was $100.0 million. On June 24, 2019 we entered into a forward starting interest rate swap agreement, which fixed a portion of the variable interest due on our Amended and Restated RCA. Under the terms of the agreement, we pay a fixed rate of 1.650% and receive a variable rate of interest based on one-month LIBOR from the counterparty which is reset every month for a three-year period ending July 15, 2022. As of October 31, 2019, the notional amount of the interest rate swap was $100.0 million. It is management’s intention that the notional amount of interest rate swaps be less than the variable rate loans outstanding during the life of the derivatives. On April 4, 2016, we entered into a forward starting interest rate swap agreement which fixed a portion of the variable interest due on a variable rate debt renewal on May 16, 2016. Under the terms of the agreement, which expired on May 15, 2019, we paid a fixed rate of 0.92% and receive a variable rate of interest based on one-month LIBOR from the counterparty which was reset every month for a three-year period ending May 15, 2019. Prior to expiration, the notional amount of the interest rate swap was $350.0 million. As of October 31, 2019 and April 30, 2019, the interest rate swap agreements maintained by us were designated as cash flow hedges as defined under ASC 815 “Derivatives and Hedging.” As a result, there was no impact on our Unaudited Condensed Consolidated Statements of Income for changes in the fair value of the interest rate swaps as they were fully offset by changes in the interest expense on the underlying variable rate debt instruments. We record the fair value of our interest rate swaps on a recurring basis using Level 2 inputs of quoted prices for similar assets or liabilities in active markets. The fair value of the interest rate swaps as of October 31, 2019 and April 30, 2019 was a deferred loss of $0.7 million and a deferred gain of $0.5 million, respectively. Based on the maturity dates of the contracts, the entire deferred loss as of October 31, 2019 was recorded within Other Long-Term Liabilities and the entire deferred gain as of April 30, 2019 was recorded within Prepaid Expenses and Other Current Assets. The pre-tax gains that were reclassified from Accumulated Other Comprehensive Loss into Interest Expense for the three months ended October 31, 2019 and 2018 were $0.3 million and $1.1 million, respectively. The pre-tax gains that were reclassified from Accumulated Other Compensation Loss into Interest Expense for the months ended were $ million and $ million, respectively. Foreign Currency Contracts We may enter into forward exchange contracts to manage our exposure on certain foreign currency denominated assets and liabilities. The forward exchange contracts are marked to market through Foreign Exchange Transaction Losses in the Unaudited Condensed Consolidated Statements of Income and carried at their fair value in the Unaudited Condensed Consolidated Statements of Financial Position. Foreign currency denominated assets and liabilities are remeasured at spot rates in effect on the balance sheet date, with the effects of changes in spot rates reported in Foreign Exchange Transaction Losses in the Unaudited Condensed Consolidated Statements of Income. As of October 31, 2019, and April 30, 2019, we did not maintain any open forward exchange contracts. In addition, we did not maintain any open forward contracts during the three and six months ended October 31, 2019 and 2018. |
Capital Stock and Changes in Ca
Capital Stock and Changes in Capital Accounts | 6 Months Ended |
Oct. 31, 2019 | |
Capital Stock and Changes in Capital Accounts [Abstract] | |
Capital Stock and Changes in Capital Accounts | Note 17 Capital Stock and Changes in Capital Accounts Share Repurchases The following table summarizes the shares repurchased of Class A Common Stock. Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Shares Repurchased 334,336 299,188 551,847 425,120 Average Price $ 44.87 $ 56.82 $ 45.30 $ 58.79 Dividends The following table summarizes the cash dividends paid during the six months ended October 31, 2019: Date of Declaration by Board of Directors Quarterly Cash Dividend Total Dividend Class of Common Stock Dividend Paid Date Shareholders of Record as of Date June 27, 2019 $0.34 per common share $19.2 million Class A and Class B July 24, 2019 July 10, 2019 September 26, 2019 $0.34 per common share $19.1 million Class A and Class B October 23, 2019 October 8, 2019 Changes in Common Stock The following is a summary of changes during the six months ended October 31, in shares of our common stock and common stock in treasury (shares in thousands): Changes in Common Stock A: 2019 2018 Number of shares, beginning of year 70,127 70,111 Common stock class conversions 22 14 Number of shares issued, end of period 70,149 70,125 Changes in Common Stock A in treasury: Number of shares held, beginning of year 22,634 21,853 Purchase of treasury shares 552 425 Restricted shares issued under stock-based compensation plans - non-PSU Awards (63 ) (54 ) Restricted shares issued under stock-based compensation plans - PSU Awards (43 ) (59 ) Restricted shares, forfeited — — Restricted shares issued from exercise of stock options (17 ) (224 ) Shares withheld for taxes 44 53 Other — 6 Number of shares held, end of period 23,107 22,000 Number of Common Stock A outstanding, end of period 47,042 48,125 Changes in Common Stock B: 2019 2018 Number of shares, beginning of year 13,055 13,071 Common stock class conversions (22 ) (14 ) Number of shares issued, end of period 13,033 13,057 Changes in Common Stock B in treasury: Number of shares held, beginning of year 3,918 3,918 Number of shares held, end of period 3,918 3,918 Number of Common Stock B outstanding, end of period 9,115 9,139 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Oct. 31, 2019 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 18 Commitments and Contingencies We are involved in routine litigation in the ordinary course of our business. A provision for litigation is accrued when information available to us indicates that it is probable a liability has been incurred and the amount of loss can be reasonably estimated. Significant judgment may be required to determine both the probability and estimates of loss. When the amount of the loss can only be estimated within a range, the most likely outcome within that range is accrued. If no amount within the range is a better estimate than any other amount, the minimum amount within the range is accrued. When uncertainties exist related to the probable outcome of litigation and/or the amount or range of loss, we do not record a liability, but disclose facts related to the nature of the contingency and possible losses if management considers the information to be material. Reserves for legal defense costs are recognized when incurred. The accruals for loss contingencies and legal costs are reviewed regularly and may be adjusted to reflect updated information on the status of litigation and advice of legal counsel. In the opinion of management, the ultimate resolution of all pending litigation as of October 31, 2019, will not have a material effect upon our Unaudited Condensed Consolidated Statements of Financial Position or Unaudited Condensed Consolidated Statements of Income. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Oct. 31, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Throughout this report, when we refer to “Wiley,” the “Company,” “we,” “our,” or “us,” we are referring to John Wiley & Sons, Inc. and all our subsidiaries, except where the context indicates otherwise. Our Unaudited Condensed Consolidated Financial Statements include all the accounts of the Company and our subsidiaries. We have eliminated all intercompany transactions and balances in consolidation. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Unaudited Condensed Consolidated Financial Condition, Results of Operations, Comprehensive Income and Cash Flows for the periods presented. Operating results for the interim period are not necessarily indicative of the results expected for the full year. All amounts are in thousands, except per share amounts, and approximate due to rounding. These financial statements should be read in conjunction with the most recent audited consolidated financial statements included in our Form 10-K for the fiscal year ended April 30, 2019 as filed with the SEC on July 1, 2019 (“2019 Form 10-K”). Our Unaudited Condensed Consolidated Financial Statements were prepared in accordance with the interim reporting requirements of the SEC. As permitted under those rules, annual footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted. The preparation of our Unaudited Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Reclassifications | Certain prior year amounts have been reclassified to conform to the current year’s presentation. The Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended October 31, 2018, includes a reclassification of $4.5 million, between Operating Activities within the net change in operating assets and liabilities and Investing Activities related to costs to fulfill a contract and product development spending. In addition, for the six months ended October 31, 2018, amortization expense related to costs to fulfill a contract of $1.2 million was reclassified from amortization of product development spending to other non-cash charges (credits) within Operating Activities. |
Recent Accounting Standards (Po
Recent Accounting Standards (Policies) | 6 Months Ended |
Oct. 31, 2019 | |
Recent Accounting Standards [Abstract] | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-02 “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. We adopted ASU 2018-02 on May 1, 2019. We did not elect to reclassify the income tax effects from comprehensive income to retained earnings for the stranded tax effects resulting from the Tax Cuts and Jobs Act. Our policy for releasing the income tax effects from accumulated other comprehensive income is when the corresponding pretax accumulated other comprehensive income items are reclassified to earnings. Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” to simplify and improve the application and financial reporting of hedge accounting. Subsequently, in November 2018, the FASB issued ASU 2018-1 6, “Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes”. ASU 2017-12 Leases In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)”. Subsequently, the FASB issued in March 2019, ASU 2019-01, “Leases (Topic 842): Codification Improvements”, in December 2018 ASU 2018-20, “Leases (Topic 842): Narrow Scope Improvements for Lessors”, and in July 2018 the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements” and ASU 2018-10, “Codification Improvements to Topic 842, Leases”. ASU 2016-02 requires an entity to recognize a right-of-use asset (“ROU”) and lease liability for all leases with terms of more than 12 months and provide enhanced disclosures. Recognition, measurement, and presentation of expenses depends on classification as a finance or operating lease. Similar modifications have been made to lessor accounting in-line with revenue recognition guidance. The new standard provides a number of optional practical expedients in transition. We elected the practical expedients to forgo a reassessment of (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) initial direct costs. We did not elect the practical expedient allowing the use-of-hindsight which would have required us to reassess the lease term of our leases based on all facts and circumstances through the effective date. In addition, we did not elect the practical expedient pertaining to land easements. In addition, the new standard provides as a practical expedient, certain policy elections for ongoing lease accounting which we elected at the date of adoption and included the following, (i) to not separate nonlease components from the associated lease component if certain conditions are met, and (ii) to not recognize ROU assets and lease liabilities for leases that qualify as short-term. A modified retrospective transition approach was required, applying the standard to all leases existing at the date of initial application. A company could choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as of its date of initial application. We adopted the new standard on May 1, 2019 and used the effective date as the date of initial application. Accordingly, previously reported financial information was not updated, and the disclosures required under the new standard will not be provided for dates and periods before May 1, 2019. At adoption, we recognized operating lease liabilities of $178 million based on the present value of the remaining minimum rental payments for existing operating leases and ROU assets of $142 million on our Unaudited Condensed Consolidated Statement of Financial Position. The difference between the ROU assets and operating lease liabilities represents the existing deferred rent liabilities, prepaid rent balances, and applicable restructuring liabilities, which were reclassified upon adoption to reduce the measurement of the ROU assets. The adoption of the standard did not have an impact on our Unaudited Condensed Consolidated Statement of Shareholders’ Equity, Condensed Consolidated Statement of Income or Condensed Consolidated Statement of Cash Flow. See Note 5, “Operating Leases”, for further details on our operating leases. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Intangibles-Goodwill and Other-Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In August 2018, the FASB issued ASU 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract.” ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for us on May 1, 2020, and interim periods within that fiscal year, with early adoption permitted. We are currently assessing the impact the new guidance will have on our consolidated financial statements. Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans.” ASU 2018-14 removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and added additional disclosures. The standard is effective for us on May 1, 2021, with early adoption permitted. The amendments in ASU 2018-14 would need to be applied on a retrospective basis. We are currently assessing the impact the new guidance will have on our disclosures. Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 removes, modifies and added disclosures. The standard is effective for us on May 1, 2020, with early adoption permitted. Certain disclosures in ASU 2018-13 would need to be applied on a retrospective basis and others on a prospective basis. We are currently assessing the impact the new guidance will have on our disclosures. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, “Intangibles–Goodwill and Other (Topic 350): “Simplifying the Test for Goodwill Impairment”, which simplifies the measurement of a potential goodwill impairment charge by eliminating the requirement to calculate an implied fair value of the goodwill based on the fair value of a reporting unit’s other assets and liabilities. The new guidance eliminates the implied fair value method and instead measures a potential impairment charge based on the excess of a reporting unit’s carrying value compared to its fair value. The impairment charge cannot exceed the total amount of goodwill allocated to that reporting unit. The standard is effective for us on May 1, 2020, with early adoption permitted. Based on our most recent annual goodwill impairment test completed in the year ended April 30, 2019, we expect no impact upon adoption. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” Subsequently, in May 2019, the FASB issued ASU 2019-05 - "Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief”, in April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” in November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses,” and in November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses”. ASU 2016-13 requires entities to measure all expected credit losses for most financial assets held at the reporting date based on an expected loss model which includes historical experience, current conditions, and reasonable and supportable forecasts. Entities will now use forward-looking information to better form their credit loss estimates. ASU 2016-13 also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. ASU 2016-13, ASU 2019-05, ASU 2019-04, ASU 2018-19, and ASU 2019-11 are effective for us on May 1, 2020, including interim periods within those fiscal periods, with early adoption permitted. We are currently assessing the impact the new guidance will have on our consolidated financial statements. |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Acquisitions [Abstract] | |
Consideration Transferred and Preliminary Allocation of Purchase Price | The following table summarizes the preliminary consideration transferred to acquire zyBooks and the preliminary allocation of the purchase price among the assets acquired and liabilities assumed. Preliminary Allocation as of July 1, 2019 Total cash consideration transferred at the acquisition date $ 55,884 Assets: Current Assets 2,280 Technology, Property and Equipment, net 28 Intangible Assets, net 24,500 Goodwill 37,246 Total Assets $ 64,054 Liabilities: Current Liabilities 2,581 Deferred Income Tax Liabilities 5,589 Total Liabilities $ 8,170 |
Intangible Assets Acquired and Weighted-Average Useful Life | The following table summarizes the identifiable intangible assets acquired and their weighted-average useful life at the date of acquisition. Estimated Fair Value Weighted-Average Useful Life (in Years) Developed Technology $ 10,400 7 Customer Relationships 6,800 10 Content 4,400 10 Trademarks 2,900 10 Total $ 24,500 |
Revenue Recognition, Contract_2
Revenue Recognition, Contracts with Customers (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Revenue Recognition, Contracts with Customers [Abstract] | |
Revenue from Contracts With Customers Disaggregated by Segment and Product Type | As previously announced, we changed our segment reporting structure to align with our strategic focus areas. See Note 10, “Segment Information,” for more details. The following table presents our revenue from contracts with customers disaggregated by segment and product type. Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Research Publishing & Platforms: Research Publishing $ 225,085 $ 219,710 $ 445,012 $ 436,424 Research Platforms 9,624 9,365 19,072 17,968 Total Research Publishing & Platforms 234,709 229,075 464,084 454,392 Academic & Professional Learning: Education Publishing 101,741 107,474 167,264 181,508 Professional Learning 75,984 82,196 155,319 164,586 Total Academic & Professional Learning 177,725 189,670 322,583 346,094 Education Services: Education Services 53,771 29,877 103,068 59,037 Total Education Services 53,771 29,877 103,068 59,037 Total Revenue $ 466,205 $ 448,622 $ 889,735 $ 859,523 |
Contract Asset and Liability Balances | The following table provides information about receivables and contract liabilities from contracts with customers. October 31, 2019 April 30, 2019 Increase/ (Decrease) Balances from contracts with customers: Accounts receivable, net $ 235,466 $ 294,867 $ (59,401 ) Contract liabilities (1) 248,653 507,365 (258,712 ) Contract liabilities (included in Other Long-Term Liabilities) $ 19,622 $ 10,722 $ 8,900 (1) The sales return reserve recorded in Contract Liabilities is $37.7 million and $25.9 million, as of October 31, 2019 and April 30, 2019, respectively. |
Operating Leases (Tables)
Operating Leases (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Operating Leases [Abstract] | |
ROU Assets and Liabilities | For operating leases, the ROU assets and liabilities are presented in our Unaudited Condensed Consolidated Statement of Financial Position as follows: October 31, 2019 Operating Lease Right-of-Use Assets $ 145,886 Short-term portion of operating lease liabilities 18,409 Operating Lease Liabilities, non-current $ 164,622 |
Total Net Lease Costs | Our total net lease costs are as follows: Three Months Ended October 31, 2019 Six Months Ended October 31, 2019 Operating lease cost $ 6,199 $ 13,060 Variable lease cost 915 2,118 Sublease income 184 (339 ) Total net lease cost $ 7,298 $ 14,839 |
Other Supplemental Information | Other supplemental information includes the following: Weighted-Average Remaining Contractual Lease Term (Years) Six Months Ended October 31, 2019 Operating leases 10 Weighted-average discount rate: Operating leases 5.91 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 14,716 |
Reconciliation of Undiscounted Cash Flows to Operating Lease Liabilities | The table below reconciles the undiscounted cash flows for the first five years and total of the remaining years to the operating lease liabilities recorded in the Unaudited Condensed Consolidated Statement of Financial Position as of October 31, 2019 : Fiscal Year Operating Lease Liabilities 2020 (remaining 6 months) $ 16,758 2021 28,073 2022 25,085 2023 22,683 2024 21,791 Thereafter 134,823 Total undiscounted lease payments 249,213 Less: Imputed interest 66,182 Present Value of Minimum Lease Payments 183,031 Less: Current portion 18,409 Noncurrent portion $ 164,622 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Stock-Based Compensation [Abstract] | |
Restricted Stock Data for Awards Granted | The following table summarizes restricted stock awards we granted (shares in thousands): Six Months Ended October 31, 2019 2018 Restricted Stock: Awards granted 716 397 Weighted average fair value of grant $ 44.75 $ 63.33 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component, Net of Tax | Changes in Accumulated Other Comprehensive Loss by component, net of tax, for the three and six months ended October 31, 2019 and 2018 were as follows: Foreign Currency Translation Unamortized Retirement Costs Interest Rate Swaps Total Balance at July 31, 2019 $ (347,646 ) $ (187,889 ) $ (489 ) $ (536,024 ) Other comprehensive income (loss) before reclassifications 38,319 (7,960 ) (481 ) 29,878 Amounts reclassified from accumulated other comprehensive loss — 1,384 (264 ) 1,120 Total other comprehensive income (loss) 38,319 (6,576 ) (745 ) 30,998 Balance at October 31, 2019 $ (309,327 ) $ (194,465 ) $ (1,234 ) $ (505,026 ) Balance at April 30, 2019 $ (312,107 ) $ (196,057 ) $ (574 ) $ (508,738 ) Other comprehensive income (loss) before reclassifications 2,780 (830 ) (153 ) 1,797 Amounts reclassified from accumulated other comprehensive loss — 2,422 (507 ) 1,915 Total other comprehensive income (loss) 2,780 1,592 (660 ) 3,712 Balance at October 31, 2019 $ (309,327 ) $ (194,465 ) $ (1,234 ) $ (505,026 ) Foreign Currency Translation Unamortized Retirement Costs Interest Rate Swaps Total Balance at July 31, 2018 $ (291,898 ) $ (182,215 ) $ 2,367 $ (471,746 ) Other comprehensive income (loss) before reclassifications (20,424 ) 3,273 543 (16,608 ) Amounts reclassified from accumulated other comprehensive loss — 1,114 (1,324 ) (210 ) Total other comprehensive income (loss) (20,424 ) 4,387 (781 ) (16,818 ) Balance at October 31, 2018 $ (312,322 ) $ (177,828 ) $ 1,586 $ (488,564 ) Balance at April 30, 2018 $ (251,573 ) $ (191,026 ) $ 3,019 $ (439,580 ) Other comprehensive income (loss) before reclassifications (60,749 ) 10,993 613 (49,143 ) Amounts reclassified from accumulated other comprehensive loss — 2,205 (2,046 ) 159 Total other comprehensive income (loss) (60,749 ) 13,198 (1,433 ) (48,984 ) Balance at October 31, 2018 $ (312,322 ) $ (177,828 ) $ 1,586 $ (488,564 ) |
Reconciliation of Weighted Av_2
Reconciliation of Weighted Average Shares Outstanding (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Reconciliation of Weighted Average Shares Outstanding [Abstract] | |
Reconciliation of Shares used in Computation of Earnings Per Share | A reconciliation of the shares used in the computation of earnings per share follows: Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Weighted average shares outstanding 56,339 57,426 56,451 57,451 Less: Unvested restricted shares (13 ) (47 ) (20 ) (59 ) Shares used for basic earnings per share 56,326 57,379 56,431 57,392 Dilutive effect of stock options and other stock awards 338 491 360 563 Shares used for diluted earnings per share 56,664 57,870 56,791 57,955 |
Restructuring and Related Cha_2
Restructuring and Related Charges (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Business Optimization Program [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax Restructuring Charges | The following tables summarize the pre-tax restructuring charges related to this program: Three Months Ended October 31, Six Months Ended October 31, 2019 2019 Charges (Credits) by Segment: Research Publishing & Platforms $ 29 $ 2,665 Academic & Professional Learning 765 3,542 Education Services (475 ) 1,717 Corporate Expenses 2,835 6,100 Total Restructuring and Related Charges $ 3,154 $ 14,024 Charges by Activity: Severance and termination benefits $ 578 $ 11,287 Operating lease right-of-use asset impairment — 161 Facility related charges 1,240 1,240 Other Activities 1,336 1,336 Total Restructuring and Related Charges $ 3,154 $ 14,024 |
Activity for Restructuring Program Liability | The following table summarizes the activity for the Business Optimization Program liability for the six months ended October 31, 2019 : April 30, 2019 Charges Payments Foreign Translation & Other Adjustments October 31, 2019 Severance and termination benefits $ — $ 11,287 $ (2,760 ) $ (168 ) $ 8,359 Other Activities — 1,336 — (365 ) 971 Total $ — $ 12,623 $ (2,760 ) $ (533 ) $ 9,330 |
Restructuring and Reinvestment Program [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax Restructuring Charges | The following tables summarize the pre-tax restructuring charges related to this program: Three Months Ended October 31, Six Months Ended October 31, Total Charges 2019 2018 (1) 2019 2018 (1) Incurred to Date Charges (Credits) by Segment: Research Publishing & Platforms $ 697 $ 2,282 $ 681 $ 1,302 $ 27,225 Academic & Professional Learning 35 2,194 63 1,477 42,902 Education Services — 310 (103 ) 102 3,764 Corporate Expenses 115 5,210 71 1,029 96,449 Total Restructuring and Related Charges $ 847 $ 9,996 $ 712 $ 3,910 $ 170,340 Charges by Activity: Severance and termination benefits $ 847 $ 8,672 $ 497 $ 2,894 $ 116,756 Consulting and Contract Termination Costs — 90 — 225 21,155 Other Activities — 1,234 215 791 32,429 Total Restructuring and Related Charges $ 847 $ 9,996 $ 712 $ 3,910 $ 170,340 (1) As previously announced, we have changed our segment reporting structure to align with our strategic focus areas. See Note 10, “Segment Information,” for more details. |
Activity for Restructuring Program Liability | The following table summarizes the activity for the Restructuring and Reinvestment Program liability for the six months ended October 31, 2019 : April 30, 2019 Charges Payments Adoption of New Lease Standard (1) Foreign Translation & Other Adjustments October 31, 2019 Severance and termination benefits $ 4,887 $ 497 $ (3,125 ) $ — $ 203 $ 2,462 Consulting and Contract Termination Costs 303 — — — — 303 Other Activities 2,544 — — (2,258 ) (34 ) 252 Total $ 7,734 $ 497 $ (3,125 ) $ (2,258 ) $ 169 $ 3,017 (1) Refer to Note 2, “Recent Accounting Standards,” and Note 5, “Operating Leases” for more information related to the adoption of the new lease standard. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Segment Information [Abstract] | |
Segment Information | Segment information is as follows: Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Revenue Research Publishing & Platforms $ 234,709 $ 229,075 $ 464,084 $ 454,392 Academic & Professional Learning 177,725 189,670 322,583 346,094 Education Services 53,771 29,877 103,068 59,037 Total Revenue $ 466,205 $ 448,622 $ 889,735 $ 859,523 Contribution to Profit: Research Publishing & Platforms $ 63,291 $ 59,210 $ 118,937 $ 116,527 Academic & Professional Learning 35,050 47,078 39,961 68,845 Education Services 2,583 (867 ) (4,616 ) (5,886 ) Total Contribution to Profit (1) $ 100,924 $ 105,421 $ 154,282 $ 179,486 Corporate Expenses (37,533 ) (47,946 ) (86,332 ) (85,871 ) Operating Income (1) $ 63,391 $ 57,475 $ 67,950 $ 93,615 Adjusted Contribution to Profit: (1) Research Publishing & Platforms $ 64,017 $ 61,492 $ 122,283 $ 117,829 Academic & Professional Learning 35,850 49,272 43,566 70,322 Education Services 2,108 (557 ) (3,002 ) (5,784 ) Total Adjusted Contribution to Profit $ 101,975 $ 110,207 $ 162,847 $ 182,367 Adjusted Corporate Expenses (34,583 ) (42,736 ) (80,161 ) (84,842 ) Total Adjusted Operating Income $ 67,392 $ 67,471 $ 82,686 $ 97,525 Depreciation and Amortization: Research Publishing & Platforms $ 17,037 $ 15,422 $ 34,190 $ 30,787 Academic & Professional Learning 17,349 17,473 33,873 35,050 Education Services 5,522 3,045 11,020 6,512 Total Depreciation and Amortization $ 39,908 $ 35,940 $ 79,083 $ 72,349 Corporate Depreciation and Amortization 2,730 3,712 5,774 7,474 Total Depreciation and Amortization $ 42,638 $ 39,652 $ 84,857 $ 79,823 Adjusted EBITDA: (2) Research Publishing & Platforms $ 81,054 $ 76,914 $ 156,473 $ 148,616 Academic & Professional Learning 53,199 66,745 77,439 105,372 Education Services 7,630 2,488 8,018 728 Total Segment Adjusted EBITDA $ 141,883 $ 146,147 $ 241,930 $ 254,716 Corporate Adjusted EBITDA (31,853 ) (39,024 ) (74,387 ) (77,368 ) Total Adjusted EBITDA $ 110,030 $ 107,123 $ 167,543 $ 177,348 (1) Adjusted Contribution to Profit is Contribution to Profit adjusted for restructuring charges (credits). See Note 9, “Restructuring and Related Charges” for these charges (credits) by segment. (2) Adjusted EBITDA is Adjusted Contribution to Profit with depreciation and amortization added back. |
Reconciliation of GAAP Net Income to Non-GAAP EBITDA and Adjusted EBITDA | The following table shows a reconciliation of GAAP net income to Non-GAAP EBITDA and Adjusted EBITDA: Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Net Income $ 44,690 $ 43,784 $ 48,314 $ 70,079 Interest expense 6,787 3,608 12,864 6,404 Provision for income taxes 11,783 12,538 12,126 20,324 Depreciation and amortization 42,638 39,652 84,857 79,823 Non-GAAP EBITDA $ 105,898 $ 99,582 $ 158,161 $ 176,630 Restructuring and related charges 4,001 9,996 14,736 3,910 Foreign exchange transaction losses 2,668 54 16 1,783 Interest and other income (2,537 ) (2,509 ) (5,370 ) (4,975 ) Non-GAAP Adjusted EBITDA $ 110,030 $ 107,123 $ 167,543 $ 177,348 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Inventories [Abstract] | |
Inventories | Inventories, net were as follows: October 31, 2019 April 30, 2019 Finished Goods $ 36,258 $ 33,736 Work-in-Process 2,637 2,094 Paper and Other Materials 344 373 $ 39,239 $ 36,203 Inventory Value of Estimated Sales Returns 9,889 3,739 LIFO Reserve (4,096 ) (4,360 ) Total Inventories $ 45,032 $ 35,582 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Goodwill and Intangible Assets [Abstract] | |
Activity in Goodwill by Segment | The following table summarizes the activity in goodwill by segment as of October 31, 2019: April 30, 2019 Acquisitions (1) Foreign Translation Adjustment October 31, 2019 Research Publishing & Platforms $ 438,511 $ 844 $ 640 $ 439,995 Academic & Professional Learning 458,145 45,752 134 504,031 Education Services 199,010 161 — 199,171 Total $ 1,095,666 $ 46,757 $ 774 $ 1,143,197 (1) Refer to Note 3, “Acquisitions,” for more information related to the acquisitions that occurred in the six months ended October 31, 2019. |
Intangible Assets | Identifiable intangible assets, net consisted of the following: October 31, 2019 April 30, 2019 Intangible Assets with Determinable Lives, net: Content and Publishing Rights (1) $ 384,364 $ 389,172 Customer Relationships (1) 245,822 245,830 Brands and Trademarks (1) 11,753 12,993 Covenants not to Compete 345 445 Developed Technology (1) 17,989 — Total 660,273 648,440 Intangible Assets with Indefinite Lives: Brands and Trademarks 134,005 130,909 Content and Publishing Rights 86,335 86,223 Total 220,340 217,132 Total Intangible Assets, Net $ 880,613 $ 865,572 (1) Refer to Note 3, “Acquisitions,” for more information related to the acquisitions that occurred in the six months ended October 31, 2019. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Retirement Plans [Abstract] | |
Components of Net Periodic Pension Expense (Income) for Defined Benefit Plans | The components of net pension expense (income) for our global defined benefit plans were as follows: Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Service cost $ 1,093 $ 229 $ 1,317 $ 462 Interest cost 6,350 6,169 12,184 12,381 Expected return on plan assets (9,886 ) (9,720 ) (19,945 ) (19,622 ) Net amortization of prior service cost (19 ) (24 ) (38 ) (48 ) Unrecognized net actuarial loss 1,581 1,474 3,181 2,908 Net pension income $ (881 ) $ (1,872 ) $ (3,301 ) $ (3,919 ) |
Capital Stock and Changes in _2
Capital Stock and Changes in Capital Accounts (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Capital Stock and Changes in Capital Accounts [Abstract] | |
Summary of Shares Repurchased | The following table summarizes the shares repurchased of Class A Common Stock. Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Shares Repurchased 334,336 299,188 551,847 425,120 Average Price $ 44.87 $ 56.82 $ 45.30 $ 58.79 |
Summary of Cash Dividends | The following table summarizes the cash dividends paid during the six months ended October 31, 2019: Date of Declaration by Board of Directors Quarterly Cash Dividend Total Dividend Class of Common Stock Dividend Paid Date Shareholders of Record as of Date June 27, 2019 $0.34 per common share $19.2 million Class A and Class B July 24, 2019 July 10, 2019 September 26, 2019 $0.34 per common share $19.1 million Class A and Class B October 23, 2019 October 8, 2019 |
Summary of Changes of Common Stock and Common Stock in Treasury | The following is a summary of changes during the six months ended October 31, in shares of our common stock and common stock in treasury (shares in thousands): Changes in Common Stock A: 2019 2018 Number of shares, beginning of year 70,127 70,111 Common stock class conversions 22 14 Number of shares issued, end of period 70,149 70,125 Changes in Common Stock A in treasury: Number of shares held, beginning of year 22,634 21,853 Purchase of treasury shares 552 425 Restricted shares issued under stock-based compensation plans - non-PSU Awards (63 ) (54 ) Restricted shares issued under stock-based compensation plans - PSU Awards (43 ) (59 ) Restricted shares, forfeited — — Restricted shares issued from exercise of stock options (17 ) (224 ) Shares withheld for taxes 44 53 Other — 6 Number of shares held, end of period 23,107 22,000 Number of Common Stock A outstanding, end of period 47,042 48,125 Changes in Common Stock B: 2019 2018 Number of shares, beginning of year 13,055 13,071 Common stock class conversions (22 ) (14 ) Number of shares issued, end of period 13,033 13,057 Changes in Common Stock B in treasury: Number of shares held, beginning of year 3,918 3,918 Number of shares held, end of period 3,918 3,918 Number of Common Stock B outstanding, end of period 9,115 9,139 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | 3 Months Ended |
Oct. 31, 2018USD ($) | |
Reclassification for Costs to Fulfill Contract and Product Development Spending [Member] | |
Prior Period Adjustments [Abstract] | |
Prior period reclassification adjustment | $ 4.5 |
Reclassification for Amortization Expense Related to Costs to Fulfill Contract [Member] | |
Prior Period Adjustments [Abstract] | |
Prior period reclassification adjustment | $ 1.2 |
Recent Accounting Standards (De
Recent Accounting Standards (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Apr. 30, 2019 |
Recently Adopted Accounting Standards [Abstract] | ||
Operating lease liabilities | $ 183,031 | |
ROU assets | $ 145,886 | $ 0 |
ASU 2016-02 [Member] | ||
Recently Adopted Accounting Standards [Abstract] | ||
Operating lease liabilities | 178,000 | |
ROU assets | $ 142,000 |
Acquisitions (Details)
Acquisitions (Details) $ / shares in Units, $ in Thousands | Jul. 01, 2019USD ($) | Nov. 01, 2018USD ($) | Oct. 31, 2019USD ($)Business | Jul. 31, 2019Business | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($)$ / sharesshares | Apr. 30, 2019USD ($) |
Acquisitions [Abstract] | |||||||
Fair value of cash consideration transferred, net of cash acquired | $ 74,169 | $ 0 | |||||
Assets [Abstract] | |||||||
Goodwill | $ 1,143,197 | 1,143,197 | $ 1,095,666 | ||||
Identifiable intangible assets acquired and weighted-average useful life [Abstract] | |||||||
Goodwill | 1,143,197 | 1,143,197 | 1,095,666 | ||||
Research Publishing & Platforms [Member] | |||||||
Assets [Abstract] | |||||||
Goodwill | 439,995 | 439,995 | 438,511 | ||||
Identifiable intangible assets acquired and weighted-average useful life [Abstract] | |||||||
Goodwill | 439,995 | 439,995 | 438,511 | ||||
Academic and Professional Learning [Member] | |||||||
Assets [Abstract] | |||||||
Goodwill | 504,031 | 504,031 | 458,145 | ||||
Identifiable intangible assets acquired and weighted-average useful life [Abstract] | |||||||
Goodwill | 504,031 | 504,031 | $ 458,145 | ||||
zybooks [Member] | |||||||
Acquisitions [Abstract] | |||||||
Total cash consideration transferred at the acquisition date | $ 55,884 | ||||||
Assets [Abstract] | |||||||
Current Assets | 2,280 | ||||||
Technology, Property and Equipment, net | 28 | ||||||
Intangible Assets, net | 24,500 | ||||||
Goodwill | 37,246 | ||||||
Total Assets | 64,054 | ||||||
Liabilities [Abstract] | |||||||
Current Liabilities | 2,581 | ||||||
Deferred Income Tax Liabilities | 5,589 | ||||||
Total Liabilities | 8,170 | ||||||
Identifiable intangible assets acquired and weighted-average useful life [Abstract] | |||||||
Identifiable intangible assets acquired | 24,500 | ||||||
Goodwill | 37,246 | ||||||
zybooks [Member] | Academic and Professional Learning [Member] | |||||||
Acquisitions [Abstract] | |||||||
Fair value of consideration transferred | 57,000 | ||||||
Fair value of additional consideration to be paid after the acquisition date | 1,100 | ||||||
Cash acquired | 1,800 | ||||||
Fair value of cash consideration transferred, net of cash acquired | 54,300 | ||||||
zybooks [Member] | Developed Technology [Member] | |||||||
Identifiable intangible assets acquired and weighted-average useful life [Abstract] | |||||||
Identifiable intangible assets acquired | $ 10,400 | ||||||
Weighted-average useful life | 7 years | ||||||
zybooks [Member] | Customer Relationships [Member] | |||||||
Identifiable intangible assets acquired and weighted-average useful life [Abstract] | |||||||
Identifiable intangible assets acquired | $ 6,800 | ||||||
Weighted-average useful life | 10 years | ||||||
zybooks [Member] | Content [Member] | |||||||
Identifiable intangible assets acquired and weighted-average useful life [Abstract] | |||||||
Identifiable intangible assets acquired | $ 4,400 | ||||||
Weighted-average useful life | 10 years | ||||||
zybooks [Member] | Trademarks [Member] | |||||||
Identifiable intangible assets acquired and weighted-average useful life [Abstract] | |||||||
Identifiable intangible assets acquired | $ 2,900 | ||||||
Weighted-average useful life | 10 years | ||||||
Other Acquisitions [Member] | |||||||
Acquisitions [Abstract] | |||||||
Fair value of cash consideration transferred, net of cash acquired | 19,900 | ||||||
Assets [Abstract] | |||||||
Goodwill | 9,400 | 9,400 | |||||
Identifiable intangible assets acquired and weighted-average useful life [Abstract] | |||||||
Identifiable intangible assets acquired | 16,200 | ||||||
Goodwill | $ 9,400 | $ 9,400 | |||||
Other Acquisitions [Member] | Research Publishing & Platforms [Member] | |||||||
Identifiable intangible assets acquired and weighted-average useful life [Abstract] | |||||||
Number of immaterial businesses acquired | Business | 2 | ||||||
Other Acquisitions [Member] | Academic and Professional Learning [Member] | |||||||
Identifiable intangible assets acquired and weighted-average useful life [Abstract] | |||||||
Number of immaterial businesses acquired | Business | 1 | ||||||
The Learning House, Inc. [Member] | |||||||
Acquisitions [Abstract] | |||||||
Fair value of consideration transferred | $ 201,300 | ||||||
Cash acquired | 10,300 | ||||||
Fair value of cash consideration transferred, net of cash acquired | 190,400 | ||||||
Total cash consideration transferred at the acquisition date | 200,700 | ||||||
Identifiable intangible assets acquired and weighted-average useful life [Abstract] | |||||||
Percentage of ownership interest acquired | 100.00% | ||||||
The Learning House, Inc. [Member] | Warrants [Member] | |||||||
Identifiable intangible assets acquired and weighted-average useful life [Abstract] | |||||||
Term of warrants | 3 years | 3 years | |||||
Issuance of warrants | $ 600 | ||||||
The Learning House, Inc. [Member] | Common Stock Class A [Member] | Warrants [Member] | |||||||
Identifiable intangible assets acquired and weighted-average useful life [Abstract] | |||||||
Number of shares of common stock warrant holders are allowed to purchase (in shares) | shares | 400,000 | ||||||
Exercise price per share (in dollars per share) | $ / shares | $ 90 |
Revenue Recognition, Contract_3
Revenue Recognition, Contracts with Customers, Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | $ 466,205 | $ 448,622 | $ 889,735 | $ 859,523 |
Operating Segments [Member] | Research Publishing & Platforms [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 234,709 | 229,075 | 464,084 | 454,392 |
Operating Segments [Member] | Research Publishing & Platforms [Member] | Research Publishing [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 225,085 | 219,710 | 445,012 | 436,424 |
Operating Segments [Member] | Research Publishing & Platforms [Member] | Research Platforms [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 9,624 | 9,365 | 19,072 | 17,968 |
Operating Segments [Member] | Academic and Professional Learning [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 177,725 | 189,670 | 322,583 | 346,094 |
Operating Segments [Member] | Academic and Professional Learning [Member] | Education Publishing [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 101,741 | 107,474 | 167,264 | 181,508 |
Operating Segments [Member] | Academic and Professional Learning [Member] | Professional Learning [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 75,984 | 82,196 | 155,319 | 164,586 |
Operating Segments [Member] | Education Services [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | 53,771 | 29,877 | 103,068 | 59,037 |
Operating Segments [Member] | Education Services [Member] | Education Services [Member] | ||||
Revenue from contracts with customers disaggregated by segment and product type [Abstract] | ||||
Revenue | $ 53,771 | $ 29,877 | $ 103,068 | $ 59,037 |
Revenue Recognition, Contract_4
Revenue Recognition, Contracts with Customers, Accounts Receivable, net and Contract Liability Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2019 | Apr. 30, 2019 | ||
Balances from contracts with customers [Abstract] | ||||
Accounts receivable, net | $ 235,466 | $ 235,466 | $ 294,867 | |
Contract liabilities | [1] | 248,653 | 248,653 | 507,365 |
Contract liabilities (included in Other Long-Term Liabilities) | 19,622 | 19,622 | 10,722 | |
Increase/(decrease) [Abstract] | ||||
Accounts receivable, net | (59,401) | |||
Contract liabilities | [1] | (258,712) | ||
Contract liability (Deferred revenue) (included in Other Long-Term Liabilities) | 8,900 | |||
Sales return reserve recorded in contract liability | 37,700 | 37,700 | $ 25,900 | |
Revenue recognized from beginning contract liability | $ 184,600 | $ 378,900 | ||
[1] | The sales return reserve recorded in Contract Liabilities is $37.7 million and $25.9 million, as of October 31, 2019 and April 30, 2019, respectively. |
Revenue Recognition, Contract_5
Revenue Recognition, Contracts with Customers, Remaining Performance Obligations, Assets Recognized for the Costs to Obtain or Fulfill a Contract (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Remaining Performance Obligations [Abstract] | ||||
Remaining performance obligations | $ 268,300 | $ 268,300 | ||
Assets Recognized for the Costs to Obtain or Fulfill a Contract [Abstract] | ||||
Costs capitalized | 10,300 | 10,300 | ||
Amortization | 1,100 | $ 400 | 2,100 | $ 1,200 |
Cost of revenue [Abstract] | ||||
Operating and administrative expenses | 240,380 | 236,207 | 490,550 | 476,633 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-11-01 | ||||
Remaining Performance Obligations [Abstract] | ||||
Remaining performance obligations | $ 211,000 | $ 211,000 | ||
Expected timing of satisfaction, period | 12 months | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-11-01 | ||||
Remaining Performance Obligations [Abstract] | ||||
Remaining performance obligations | $ 19,600 | $ 19,600 | ||
Expected timing of satisfaction, period | ||||
Shipping and Handling [Member] | ||||
Cost of revenue [Abstract] | ||||
Operating and administrative expenses | $ 7,600 | $ 8,600 | $ 15,000 | $ 16,500 |
Operating Leases (Details)
Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2019 | Apr. 30, 2019 | |
ROU Assets and Liabilities [Abstract] | |||
Operating Lease Right-Of-Use Assets | $ 145,886 | $ 145,886 | $ 0 |
Short-term portion of operating lease liabilities | 18,409 | 18,409 | 0 |
Operating Lease Liabilities, non-current | 164,622 | 164,622 | 0 |
Increase (decrease) in right of use assets | 12,100 | ||
Increase (decrease) in operating lease liabilities | 13,700 | ||
Net Lease Costs [Abstract] | |||
Operating lease cost | 6,199 | 13,060 | |
Variable lease cost | 915 | 2,118 | |
Sublease income | 184 | (339) | |
Total net lease cost | $ 7,298 | $ 14,839 | |
Other Supplemental Information [Abstract] | |||
Weighted-average remaining contractual lease term, operating leases | 10 years | 10 years | |
Weighted-average discount rate, operating leases | 5.91% | 5.91% | |
Cash paid for amounts included in the measurement of lease liabilities [Abstract] | |||
Operating cash flows from operating leases | $ 14,716 | ||
Reconciliation of Undiscounted Cash Flows to Operating Lease Liabilities [Abstract] | |||
2020 (remaining 6 months) | $ 16,758 | 16,758 | |
2021 | 28,073 | 28,073 | |
2022 | 25,085 | 25,085 | |
2023 | 22,683 | 22,683 | |
2024 | 21,791 | 21,791 | |
Thereafter | 134,823 | 134,823 | |
Total undiscounted lease payments | 249,213 | 249,213 | |
Less: Imputed interest | 66,182 | 66,182 | |
Present value of minimum lease payments | 183,031 | 183,031 | |
Less: Current portion | 18,409 | 18,409 | 0 |
Noncurrent portion | $ 164,622 | $ 164,622 | $ 0 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Stock-based Compensation [Abstract] | ||||
Share-based compensation expense | $ 5.7 | $ 5 | $ 10.3 | $ 8.9 |
Restricted Stock [Member] | ||||
Restricted stock data for awards granted by the Company [Abstract] | ||||
Awards granted (in shares) | 716 | 397 | ||
Weighted average fair value of grant (in dollars per share) | $ 44.75 | $ 63.33 | $ 44.75 | $ 63.33 |
Performance-based Stock Awards [Member] | ||||
Stock-based Compensation [Abstract] | ||||
Period for achievement of performance-based targets | 3 years |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | $ 1,132,006 | $ 1,174,008 | $ 1,181,347 | $ 1,190,557 |
Other comprehensive income (loss) before reclassifications | 29,878 | (16,608) | 1,797 | (49,143) |
Amounts reclassified from accumulated other comprehensive loss | 1,120 | (210) | 1,915 | 159 |
Total Other Comprehensive Income (Loss) | 30,998 | (16,818) | 3,712 | (48,984) |
Balance | 1,178,996 | 1,169,392 | 1,178,996 | 1,169,392 |
Accumulated Other Comprehensive Loss [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (536,024) | (471,746) | (508,738) | (439,580) |
Balance | (505,026) | (488,564) | (505,026) | (488,564) |
Foreign Currency Translation [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (347,646) | (291,898) | (312,107) | (251,573) |
Other comprehensive income (loss) before reclassifications | 38,319 | (20,424) | 2,780 | (60,749) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Total Other Comprehensive Income (Loss) | 38,319 | (20,424) | 2,780 | (60,749) |
Balance | (309,327) | (312,322) | (309,327) | (312,322) |
Unamortized Retirement Costs [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (187,889) | (182,215) | (196,057) | (191,026) |
Other comprehensive income (loss) before reclassifications | (7,960) | 3,273 | (830) | 10,993 |
Amounts reclassified from accumulated other comprehensive loss | 1,384 | 1,114 | 2,422 | 2,205 |
Total Other Comprehensive Income (Loss) | (6,576) | 4,387 | 1,592 | 13,198 |
Balance | (194,465) | (177,828) | (194,465) | (177,828) |
Interest Rate Swaps [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (489) | 2,367 | (574) | 3,019 |
Other comprehensive income (loss) before reclassifications | (481) | 543 | (153) | 613 |
Amounts reclassified from accumulated other comprehensive loss | (264) | (1,324) | (507) | (2,046) |
Total Other Comprehensive Income (Loss) | (745) | (781) | (660) | (1,433) |
Balance | $ (1,234) | $ 1,586 | $ (1,234) | $ 1,586 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss, Reclassification out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Amortization from Accumulated Other Comprehensive Loss [Abstract] | ||||
Pension expense | $ (881) | $ (1,872) | $ (3,301) | $ (3,919) |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||||
Amortization from Accumulated Other Comprehensive Loss [Abstract] | ||||
Pension expense | $ 1,700 | $ 1,400 | $ 3,000 | $ 2,800 |
Reconciliation of Weighted Av_3
Reconciliation of Weighted Average Shares Outstanding (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Reconciliation of Weighted Average Shares Outstanding [Abstract] | ||||
Weighted average shares outstanding (in shares) | 56,339,000 | 57,426,000 | 56,451,000 | 57,451,000 |
Less: Unvested restricted shares (in shares) | (13,000) | (47,000) | (20,000) | (59,000) |
Shares used for basic earnings per share (in shares) | 56,326,000 | 57,379,000 | 56,431,000 | 57,392,000 |
Dilutive effect of stock options and other stock awards (in shares) | 338,000 | 491,000 | 360,000 | 563,000 |
Shares used for diluted earnings per share (in shares) | 56,664,000 | 57,870,000 | 56,791,000 | 57,955,000 |
Stock Options [Member] | Class A Common [Member] | ||||
Reconciliation of Weighted Average Shares Outstanding and Share Repurchases [Abstract] | ||||
Anti-dilutive shares excluded from diluted EPS calculation (in shares) | 212,094 | 157,167 | 212,094 | 157,167 |
Warrants [Member] | ||||
Reconciliation of Weighted Average Shares Outstanding and Share Repurchases [Abstract] | ||||
Warrants issued during period (in shares) | 0 | 0 | ||
Warrants [Member] | Class A Common [Member] | ||||
Reconciliation of Weighted Average Shares Outstanding and Share Repurchases [Abstract] | ||||
Anti-dilutive shares excluded from diluted EPS calculation (in shares) | 515,114 | 515,114 | ||
Restricted Stock [Member] | ||||
Reconciliation of Weighted Average Shares Outstanding and Share Repurchases [Abstract] | ||||
Anti-dilutive shares excluded from diluted EPS calculation (in shares) | 0 | 0 | 0 | 0 |
Restructuring and Related Cha_3
Restructuring and Related Charges, Pre-tax Restructuring (Credits) Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||||
Restructuring and related charges | $ 4,001 | $ 9,996 | $ 14,736 | $ 3,910 | ||
Business Optimization Program [Member] | ||||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||||
Restructuring and related charges | 3,154 | 14,024 | ||||
Business Optimization Program [Member] | Severance and Termination Benefits [Member] | ||||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||||
Restructuring and related charges | 578 | 11,287 | ||||
Business Optimization Program [Member] | Facility Related Charges [Member] | ||||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||||
Restructuring and related charges | 1,240 | 1,240 | ||||
Business Optimization Program [Member] | Other Activities [Member] | ||||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||||
Restructuring and related charges | 1,336 | 1,336 | ||||
Business Optimization Program [Member] | Operating Lease Right-of-use Asset Impairment [Member] | ||||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||||
Restructuring and related charges | 0 | 161 | ||||
Restructuring and Reinvestment Program [Member] | ||||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||||
Restructuring and related charges | 847 | 9,996 | [1] | 712 | 3,910 | [1] |
Restructuring and related charges incurred to date | 170,340 | 170,340 | ||||
Restructuring and Reinvestment Program [Member] | Severance and Termination Benefits [Member] | ||||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||||
Restructuring and related charges | 847 | 8,672 | [1] | 497 | 2,894 | [1] |
Restructuring and related charges incurred to date | 116,756 | 116,756 | ||||
Restructuring and Reinvestment Program [Member] | Consulting and Contract Termination Costs [Member] | ||||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||||
Restructuring and related charges | 0 | 90 | [1] | 0 | 225 | [1] |
Restructuring and related charges incurred to date | 21,155 | 21,155 | ||||
Restructuring and Reinvestment Program [Member] | Other Activities [Member] | ||||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||||
Restructuring and related charges | 0 | 1,234 | [1] | 215 | 791 | [1] |
Restructuring and related charges incurred to date | 32,429 | 32,429 | ||||
Research Publishing & Platforms [Member] | Business Optimization Program [Member] | ||||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||||
Restructuring and related charges | 29 | 2,665 | ||||
Research Publishing & Platforms [Member] | Restructuring and Reinvestment Program [Member] | ||||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||||
Restructuring and related charges | 697 | 2,282 | [1] | 681 | 1,302 | [1] |
Restructuring and related charges incurred to date | 27,225 | 27,225 | ||||
Academic & Professional Learning [Member] | Business Optimization Program [Member] | ||||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||||
Restructuring and related charges | 765 | 3,542 | ||||
Academic & Professional Learning [Member] | Restructuring and Reinvestment Program [Member] | ||||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||||
Restructuring and related charges | 35 | 2,194 | [1] | 63 | 1,477 | [1] |
Restructuring and related charges incurred to date | 42,902 | 42,902 | ||||
Education Services [Member] | Business Optimization Program [Member] | ||||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||||
Restructuring and related charges | (475) | 1,717 | ||||
Education Services [Member] | Restructuring and Reinvestment Program [Member] | ||||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||||
Restructuring and related charges | 0 | 310 | [1] | (103) | 102 | [1] |
Restructuring and related charges incurred to date | 3,764 | 3,764 | ||||
Corporate Expenses [Member] | Business Optimization Program [Member] | ||||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||||
Restructuring and related charges | 2,835 | 6,100 | ||||
Corporate Expenses [Member] | Restructuring and Reinvestment Program [Member] | ||||||
Summary of pre-tax restructuring (credits) charges [Abstract] | ||||||
Restructuring and related charges | 115 | $ 5,210 | [1] | 71 | $ 1,029 | [1] |
Restructuring and related charges incurred to date | $ 96,449 | $ 96,449 | ||||
[1] | As previously announced, we have changed our segment reporting structure to align with our strategic focus areas. See Note 10, “Segment Information,” for more details. |
Restructuring and Related Cha_4
Restructuring and Related Charges, Activity for Restructuring and Reinvestment Program Liability (Details) $ in Thousands | 6 Months Ended | |
Oct. 31, 2019USD ($) | ||
Business Optimization Program [Member] | ||
Activity for Restructuring and Related Charges Liability [Roll Forward] | ||
Restructuring liability, beginning of period | $ 0 | |
Charges | 12,623 | |
Payments | (2,760) | |
Foreign translation & other adjustments | (533) | |
Restructuring liability, end of period | 9,330 | |
Business Optimization Program [Member] | Severance and Termination Benefits [Member] | ||
Activity for Restructuring and Related Charges Liability [Roll Forward] | ||
Restructuring liability, beginning of period | 0 | |
Charges | 11,287 | |
Payments | (2,760) | |
Foreign translation & other adjustments | (168) | |
Restructuring liability, end of period | 8,359 | |
Business Optimization Program [Member] | Other Activities [Member] | ||
Activity for Restructuring and Related Charges Liability [Roll Forward] | ||
Restructuring liability, beginning of period | 0 | |
Charges | 1,336 | |
Payments | 0 | |
Foreign translation & other adjustments | (365) | |
Restructuring liability, end of period | 971 | |
Restructuring and Reinvestment Program [Member] | ||
Activity for Restructuring and Related Charges Liability [Roll Forward] | ||
Restructuring liability, beginning of period | 7,734 | |
Charges | 497 | |
Payments | (3,125) | |
Adoption of new lease standard | (2,258) | [1] |
Foreign translation & other adjustments | 169 | |
Restructuring liability, end of period | 3,017 | |
Restructuring and Reinvestment Program [Member] | Severance and Termination Benefits [Member] | ||
Activity for Restructuring and Related Charges Liability [Roll Forward] | ||
Restructuring liability, beginning of period | 4,887 | |
Charges | 497 | |
Payments | (3,125) | |
Adoption of new lease standard | 0 | [1] |
Foreign translation & other adjustments | 203 | |
Restructuring liability, end of period | 2,462 | |
Restructuring and Reinvestment Program [Member] | Consulting and Contract Termination Costs [Member] | ||
Activity for Restructuring and Related Charges Liability [Roll Forward] | ||
Restructuring liability, beginning of period | 303 | |
Charges | 0 | |
Payments | 0 | |
Adoption of new lease standard | 0 | [1] |
Foreign translation & other adjustments | 0 | |
Restructuring liability, end of period | 303 | |
Restructuring and Reinvestment Program [Member] | Other Activities [Member] | ||
Activity for Restructuring and Related Charges Liability [Roll Forward] | ||
Restructuring liability, beginning of period | 2,544 | |
Charges | 0 | |
Payments | 0 | |
Adoption of new lease standard | (2,258) | [1] |
Foreign translation & other adjustments | (34) | |
Restructuring liability, end of period | 252 | |
Restructuring and Reinvestment Program [Member] | Other Activities [Member] | Other Accrued Liabilities [Member] | ||
Activity for Restructuring and Related Charges Liability [Roll Forward] | ||
Restructuring liability, end of period | $ 300 | |
[1] | Refer to Note 2, “Recent Accounting Standards,” and Note 5, “Operating Leases” for more information related to the adoption of the new lease standard. |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | ||
Segment Information [Abstract] | |||||
Revenue | $ 466,205 | $ 448,622 | $ 889,735 | $ 859,523 | |
Contribution to Profit | [1] | 100,924 | 105,421 | 154,282 | 179,486 |
Corporate Expenses | (37,533) | (47,946) | (86,332) | (85,871) | |
Operating Income | [1] | 63,391 | 57,475 | 67,950 | 93,615 |
Adjusted Contribution to Profit | [1] | 101,975 | 110,207 | 162,847 | 182,367 |
Adjusted Corporate Expenses | [1] | (34,583) | (42,736) | (80,161) | (84,842) |
Adjusted Operating Income | [1] | 67,392 | 67,471 | 82,686 | 97,525 |
Depreciation and Amortization | 42,638 | 39,652 | 84,857 | 79,823 | |
Adjusted EBITDA | [2] | 110,030 | 107,123 | 167,543 | 177,348 |
Operating Segments [Member] | |||||
Segment Information [Abstract] | |||||
Depreciation and Amortization | 39,908 | 35,940 | 79,083 | 72,349 | |
Adjusted EBITDA | [2] | 141,883 | 146,147 | 241,930 | 254,716 |
Operating Segments [Member] | Research Publishing & Platforms [Member] | |||||
Segment Information [Abstract] | |||||
Revenue | 234,709 | 229,075 | 464,084 | 454,392 | |
Contribution to Profit | 63,291 | 59,210 | 118,937 | 116,527 | |
Adjusted Contribution to Profit | [1] | 64,017 | 61,492 | 122,283 | 117,829 |
Depreciation and Amortization | 17,037 | 15,422 | 34,190 | 30,787 | |
Adjusted EBITDA | [2] | 81,054 | 76,914 | 156,473 | 148,616 |
Operating Segments [Member] | Academic & Professional Learning [Member] | |||||
Segment Information [Abstract] | |||||
Revenue | 177,725 | 189,670 | 322,583 | 346,094 | |
Contribution to Profit | 35,050 | 47,078 | 39,961 | 68,845 | |
Adjusted Contribution to Profit | [1] | 35,850 | 49,272 | 43,566 | 70,322 |
Depreciation and Amortization | 17,349 | 17,473 | 33,873 | 35,050 | |
Adjusted EBITDA | [2] | 53,199 | 66,745 | 77,439 | 105,372 |
Operating Segments [Member] | Education Services [Member] | |||||
Segment Information [Abstract] | |||||
Revenue | 53,771 | 29,877 | 103,068 | 59,037 | |
Contribution to Profit | 2,583 | (867) | (4,616) | (5,886) | |
Adjusted Contribution to Profit | [1] | 2,108 | (557) | (3,002) | (5,784) |
Depreciation and Amortization | 5,522 | 3,045 | 11,020 | 6,512 | |
Adjusted EBITDA | [2] | 7,630 | 2,488 | 8,018 | 728 |
Corporate [Member] | |||||
Segment Information [Abstract] | |||||
Depreciation and Amortization | 2,730 | 3,712 | 5,774 | 7,474 | |
Adjusted EBITDA | [2] | $ (31,853) | $ (39,024) | $ (74,387) | $ (77,368) |
[1] | Adjusted Contribution to Profit is Contribution to Profit adjusted for restructuring charges (credits). See Note 9, “Restructuring and Related Charges” for these charges (credits) by segment.Adjusted EBITDA is Adjusted Contribution to Profit with depreciation and amortization added back. | ||||
[2] | Adjusted EBITDA is Adjusted Contribution to Profit with depreciation and amortization added back. |
Segment Information, Reconcilia
Segment Information, Reconciliation of GAAP Net Income to Non-GAAP EBITDA and Adjusted EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | ||
Reconciliation of GAAP Net Income to Non-GAAP EBITDA and Adjusted EBITDA [Abstract] | |||||
Net Income | $ 44,690 | $ 43,784 | $ 48,314 | $ 70,079 | |
Interest Expense | 6,787 | 3,608 | 12,864 | 6,404 | |
Provision for Income Taxes | 11,783 | 12,538 | 12,126 | 20,324 | |
Depreciation and Amortization | 42,638 | 39,652 | 84,857 | 79,823 | |
Non-GAAP EBITDA | 105,898 | 99,582 | 158,161 | 176,630 | |
Restructuring and related charges | 4,001 | 9,996 | 14,736 | 3,910 | |
Foreign Exchange Transaction Losses | 2,668 | 54 | 16 | 1,783 | |
Interest and other income | (2,537) | (2,509) | (5,370) | (4,975) | |
Non-GAAP Adjusted EBITDA | [1] | $ 110,030 | $ 107,123 | $ 167,543 | $ 177,348 |
[1] | Adjusted EBITDA is Adjusted Contribution to Profit with depreciation and amortization added back. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Apr. 30, 2019 |
Inventories [Abstract] | ||
Finished goods | $ 36,258 | $ 33,736 |
Work-in-process | 2,637 | 2,094 |
Paper and other materials | 344 | 373 |
Gross inventory | 39,239 | 36,203 |
Inventory value of estimated sales returns | 9,889 | 3,739 |
LIFO reserve | (4,096) | (4,360) |
Total inventories | $ 45,032 | $ 35,582 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Goodwill (Details) $ in Thousands | 6 Months Ended | |
Oct. 31, 2019USD ($) | ||
Goodwill [Roll Forward] | ||
Beginning balance | $ 1,095,666 | |
Acquisitions | 46,757 | [1] |
Foreign translation adjustment | 774 | |
Ending balance | 1,143,197 | |
Research Publishing & Platforms [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 438,511 | |
Acquisitions | 844 | [1] |
Foreign translation adjustment | 640 | |
Ending balance | 439,995 | |
Academic and Professional Learning [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 458,145 | |
Acquisitions | 45,752 | [1] |
Foreign translation adjustment | 134 | |
Ending balance | 504,031 | |
Education Services [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 199,010 | |
Acquisitions | 161 | [1] |
Foreign translation adjustment | 0 | |
Ending balance | $ 199,171 | |
[1] | Refer to Note 3, “Acquisitions,” for more information related to the acquisitions that occurred in the six months ended October 31, 2019. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Intangible Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Apr. 30, 2019 | |
Intangible Assets with Determinable Lives, net [Abstract] | |||
Total | $ 660,273 | $ 648,440 | |
Intangible Assets with Indefinite Lives [Abstract] | |||
Total | 220,340 | 217,132 | |
Intangible assets (excluding goodwill) [Abstract] | |||
Total Intangible Assets, Net | 880,613 | 865,572 | |
Brands and Trademarks [Member] | |||
Intangible Assets with Indefinite Lives [Abstract] | |||
Total | 134,005 | 130,909 | |
Content and Publishing Rights [Member] | |||
Intangible Assets with Indefinite Lives [Abstract] | |||
Total | 86,335 | 86,223 | |
Content and Publishing Rights [Member] | |||
Intangible Assets with Determinable Lives, net [Abstract] | |||
Total | [1] | 384,364 | 389,172 |
Customer Relationships [Member] | |||
Intangible Assets with Determinable Lives, net [Abstract] | |||
Total | [1] | 245,822 | 245,830 |
Brands and Trademarks [Member] | |||
Intangible Assets with Determinable Lives, net [Abstract] | |||
Total | [1] | 11,753 | 12,993 |
Covenants Not to Compete [Member] | |||
Intangible Assets with Determinable Lives, net [Abstract] | |||
Total | 345 | 445 | |
Developed Technology [Member] | |||
Intangible Assets with Determinable Lives, net [Abstract] | |||
Total | [1] | $ 17,989 | $ 0 |
[1] | Refer to Note 3, “Acquisitions,” for more information related to the acquisitions that occurred in the six months ended October 31, 2019. |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Effective income tax rate [Abstract] | ||||
Effective tax rate as reported | 20.90% | 22.30% | 20.10% | 22.50% |
Effective tax rate excluding the impact of certain discreet items | 21.50% | 21.60% |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Defined benefit plans, net pension expense (income) [Abstract] | ||||
Service cost | $ 1,093 | $ 229 | $ 1,317 | $ 462 |
Interest cost | 6,350 | 6,169 | 12,184 | 12,381 |
Expected return on plan assets | (9,886) | (9,720) | (19,945) | (19,622) |
Net amortization of prior service cost | (19) | (24) | (38) | (48) |
Unrecognized net actuarial loss | 1,581 | 1,474 | 3,181 | 2,908 |
Net pension income | (881) | (1,872) | (3,301) | (3,919) |
Employer defined benefit pension plan contributions | 3,300 | 3,500 | 8,000 | 7,100 |
Expense for employer defined contribution plans | $ 3,100 | $ 2,800 | $ 7,400 | $ 7,300 |
Debt and Available Credit Fac_2
Debt and Available Credit Facilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2019 | May 30, 2019 | Apr. 30, 2019 | |
Line of Credit Facility [Line Items] | ||||
Credit agreement issuance costs capitalized | $ 800 | $ 800 | ||
Long-term debt | 794,700 | 794,700 | ||
Short-term portion of long-term debt | 6,250 | 6,250 | $ 0 | |
Long-term debt, non-current | 788,360 | 788,360 | 478,790 | |
Unamortized debt issuance costs | 800 | 800 | ||
Amended and Extended Revolving Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit agreement issuance costs capitalized | 5,200 | 5,200 | ||
Unamortized debt issuance costs | 5,200 | 5,200 | ||
Amortization expense of the lender and non-lender fees in interest expense | 300 | $ 500 | ||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Term of credit facility | 5 years | |||
Aggregate principal amount | $ 1,250,000 | 1,100,000 | ||
Credit agreement issuance costs capitalized | 4,300 | $ 4,300 | ||
Unamortized debt issuance costs | 4,300 | $ 4,300 | ||
Outstanding borrowings under revolving credit facilities | $ 478,800 | |||
Line of credit facility, due date | Mar. 1, 2021 | |||
Revolving Credit Facility [Member] | Amended and Extended Revolving Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit agreement issuance costs capitalized | 4,000 | $ 4,000 | ||
Long-term debt, non-current | 547,000 | 547,000 | ||
Unamortized debt issuance costs | 4,000 | 4,000 | ||
Revolving Credit Facility [Member] | Syndicate Bank Group led by Bank of America [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Optional credit limit increase available on request | 500,000 | 500,000 | ||
Minimum increments in which optional credit limit increase may be requested | 50,000 | $ 50,000 | ||
Revolving Credit Facility [Member] | Syndicate Bank Group led by Bank of America [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility fee percentage | 0.15% | |||
Revolving Credit Facility [Member] | Syndicate Bank Group led by Bank of America [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility fee percentage | 0.25% | |||
Revolving Credit Facility [Member] | Syndicate Bank Group led by Bank of America [Member] | LIBOR [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Applicable margin | 0.98% | |||
Revolving Credit Facility [Member] | Syndicate Bank Group led by Bank of America [Member] | LIBOR [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Applicable margin | 1.50% | |||
Revolving Credit Facility [Member] | Syndicate Bank Group led by Bank of America [Member] | Base Rate [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Applicable margin | 0.00% | |||
Revolving Credit Facility [Member] | Syndicate Bank Group led by Bank of America [Member] | Base Rate [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Applicable margin | 0.50% | |||
Revolving Credit Facility [Member] | Syndicate Bank Group led by Bank of America [Member] | Federal Funds Effective Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Margin rate over reference rate used in determining base rate | 0.50% | |||
Revolving Credit Facility [Member] | Syndicate Bank Group led by Bank of America [Member] | Eurocurrency Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Margin rate over reference rate used in determining base rate | 1.00% | |||
Term Loan A Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Term of credit facility | 5 years | |||
Credit agreement face amount | $ 250,000 | |||
Credit agreement issuance costs capitalized | 900 | $ 900 | ||
Short-term portion of long-term debt | 6,300 | 6,300 | ||
Long-term debt, non-current | 241,400 | 241,400 | ||
Unamortized debt issuance costs | 900 | 900 | ||
Term Loan amount related to lender fees as a reduction to debt | 800 | 800 | ||
Term Loan amount related to non-lender fees in Other NC Assets | $ 100 | $ 100 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | Apr. 30, 2019 | |
Derivative Instruments and Hedging Activities [Abstract] | |||||
Total debt outstanding | $ 794.7 | $ 794.7 | |||
Unamortized debt issuance costs | 0.8 | 0.8 | |||
Variable rate loans outstanding | 795.5 | 795.5 | |||
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Expense [Member] | |||||
Derivative Instruments and Hedging Activities [Abstract] | |||||
Net gain (losses) reclassified from Accumulated Other Comprehensive Loss | 0.3 | $ 1.1 | 0.5 | $ 2 | |
Interest Rate Swaps [Member] | Recurring [Member] | Level 2 [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||||
Derivative Instruments and Hedging Activities [Abstract] | |||||
Liabilities fair value of derivative instrument | $ 0.7 | $ 0.7 | |||
Assets fair value of derivative instrument | $ 0.5 | ||||
Interest Rate Swaps [Member] | August 2019 Interest Rate Swap (Variable Rate Loans) [Member] | LIBOR [Member] | |||||
Derivative Instruments and Hedging Activities [Abstract] | |||||
Inception date | Aug. 7, 2019 | ||||
Fixed interest rate to be paid | 1.40% | 1.40% | |||
Term of variable rate | 1 month | ||||
Term of derivative instrument | 3 years | ||||
Expiration date | Aug. 15, 2022 | ||||
Notional amount of derivative liability | $ 100 | $ 100 | |||
Interest Rate Swaps [Member] | June 2019 Interest Rate Swap (Variable Rate Loans) [Member] | LIBOR [Member] | |||||
Derivative Instruments and Hedging Activities [Abstract] | |||||
Inception date | Jun. 24, 2019 | ||||
Fixed interest rate to be paid | 1.65% | 1.65% | |||
Term of variable rate | 1 month | ||||
Term of derivative instrument | 3 years | ||||
Expiration date | Jul. 15, 2022 | ||||
Notional amount of derivative liability | $ 100 | $ 100 | |||
Interest Rate Swaps [Member] | April 2016 Interest Rate Swap (Variable Rate Loans) [Member] | LIBOR [Member] | |||||
Derivative Instruments and Hedging Activities [Abstract] | |||||
Inception date | Apr. 4, 2016 | ||||
Fixed interest rate to be paid | 0.92% | 0.92% | |||
Term of variable rate | 1 month | ||||
Term of derivative instrument | 3 years | ||||
Expiration date | May 15, 2019 | ||||
Notional amount of derivative liability | $ 350 | $ 350 |
Capital Stock and Changes in _3
Capital Stock and Changes in Capital Accounts (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 23, 2019 | Jul. 24, 2019 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 |
Cash dividends [Abstract] | ||||||
Total Dividend | $ 38,486 | $ 38,033 | ||||
Dividend Declared in Q1 2020 [Member] | ||||||
Cash dividends [Abstract] | ||||||
Total Dividend | $ 19,200 | |||||
Dividend Declared in Q2 2020 [Member] | ||||||
Cash dividends [Abstract] | ||||||
Total Dividend | $ 19,100 | |||||
Class A [Member] | ||||||
Share repurchases [Abstract] | ||||||
Shares Repurchased (in shares) | 334,336 | 299,188 | 551,847 | 425,120 | ||
Average Price (in dollars per share) | $ 44.87 | $ 56.82 | $ 45.30 | $ 58.79 | ||
Cash dividends [Abstract] | ||||||
Quarterly Cash Dividend (in dollars per share) | $ 0.34 | $ 0.33 | $ 0.34 | $ 0.33 | ||
Changes in Common Stock [Abstract] | ||||||
Number of shares, beginning of year (in shares) | 70,127,000 | 70,111,000 | ||||
Common stock class conversions (in shares) | 22,000 | 14,000 | ||||
Number of shares issued, end of period (in shares) | 70,149,000 | 70,125,000 | 70,149,000 | 70,125,000 | ||
Changes in Common Stock in Treasury [Abstract] | ||||||
Number of shares held, beginning of year (in shares) | 22,634,000 | 21,853,000 | ||||
Purchase of treasury shares (in shares) | 552,000 | 425,000 | ||||
Restricted shares, forfeited (in shares) | 0 | 0 | ||||
Restricted shares issued from exercise of stock options (in shares) | (17,000) | (224,000) | ||||
Shares withheld for taxes (in shares) | 44,000 | 53,000 | ||||
Other (in shares) | 0 | 6,000 | ||||
Number of shares held, end of period (in shares) | 23,107,000 | 22,000,000 | 23,107,000 | 22,000,000 | ||
Number of Common Stock outstanding, end of period (in shares) | 47,042,000 | 48,125,000 | 47,042,000 | 48,125,000 | ||
Class A [Member] | Dividend Declared in Q1 2020 [Member] | ||||||
Cash dividends [Abstract] | ||||||
Date of Declaration by Board of Directors | Jun. 27, 2019 | |||||
Quarterly Cash Dividend (in dollars per share) | $ 0.34 | |||||
Dividend Paid Date | Jul. 24, 2019 | |||||
Shareholders of Record as of Date | Jul. 10, 2019 | |||||
Class A [Member] | Dividend Declared in Q2 2020 [Member] | ||||||
Cash dividends [Abstract] | ||||||
Date of Declaration by Board of Directors | Sep. 26, 2019 | |||||
Quarterly Cash Dividend (in dollars per share) | $ 0.34 | |||||
Dividend Paid Date | Oct. 23, 2019 | |||||
Shareholders of Record as of Date | Oct. 8, 2019 | |||||
Class A [Member] | Non-Performance Shares [Member] | ||||||
Changes in Common Stock in Treasury [Abstract] | ||||||
Restricted shares issued under stock-based compensation plans (in shares) | (63,000) | (54,000) | ||||
Class A [Member] | Performance Share Units [Member] | ||||||
Changes in Common Stock in Treasury [Abstract] | ||||||
Restricted shares issued under stock-based compensation plans (in shares) | (43,000) | (59,000) | ||||
Class B [Member] | ||||||
Cash dividends [Abstract] | ||||||
Quarterly Cash Dividend (in dollars per share) | $ 0.34 | $ 0.33 | $ 0.34 | $ 0.33 | ||
Changes in Common Stock [Abstract] | ||||||
Number of shares, beginning of year (in shares) | 13,055,000 | 13,071,000 | ||||
Common stock class conversions (in shares) | (22,000) | (14,000) | ||||
Number of shares issued, end of period (in shares) | 13,033,000 | 13,057,000 | 13,033,000 | 13,057,000 | ||
Changes in Common Stock in Treasury [Abstract] | ||||||
Number of shares held, beginning of year (in shares) | 3,918,000 | 3,918,000 | ||||
Number of shares held, end of period (in shares) | 3,918,000 | 3,918,000 | 3,918,000 | 3,918,000 | ||
Number of Common Stock outstanding, end of period (in shares) | 9,115,000 | 9,139,000 | 9,115,000 | 9,139,000 | ||
Class B [Member] | Dividend Declared in Q1 2020 [Member] | ||||||
Cash dividends [Abstract] | ||||||
Date of Declaration by Board of Directors | Jun. 27, 2019 | |||||
Quarterly Cash Dividend (in dollars per share) | $ 0.34 | |||||
Dividend Paid Date | Jul. 24, 2019 | |||||
Shareholders of Record as of Date | Jul. 10, 2019 | |||||
Class B [Member] | Dividend Declared in Q2 2020 [Member] | ||||||
Cash dividends [Abstract] | ||||||
Date of Declaration by Board of Directors | Sep. 26, 2019 | |||||
Quarterly Cash Dividend (in dollars per share) | $ 0.34 | |||||
Dividend Paid Date | Oct. 23, 2019 | |||||
Shareholders of Record as of Date | Oct. 8, 2019 |