Document and Entity Information
Document and Entity Information | 9 Months Ended |
Feb. 29, 2024 shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Transition Report | false |
Document Period End Date | Feb. 29, 2024 |
Entity File Number | 000-19860 |
Entity Registrant Name | SCHOLASTIC CORPORATION |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 13-3385513 |
Entity Address, Address Line One | 557 Broadway, |
Entity Address, City or Town | New York, |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10012 |
City Area Code | 212 |
Local Phone Number | 343-6100 |
Title of 12(b) Security | Common Stock, $0.01 par value |
Trading Symbol | SCHL |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0000866729 |
Current Fiscal Year End Date | --05-31 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Common Class | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 27,777,572 |
Common Class A | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 828,100 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Income Statement [Abstract] | ||||
Revenues | $ 323.7 | $ 324.9 | $ 1,114.8 | $ 1,175.7 |
Operating costs and expenses: | ||||
Cost of goods sold | 148.7 | 161.1 | 512.8 | 566 |
Selling, general and administrative expenses | 194.8 | 178 | 592.1 | 554.4 |
Depreciation and amortization | 14.6 | 13.5 | 42.1 | 41 |
Asset impairments and write downs | 0.5 | 0 | 0.5 | 0 |
Total operating costs and expenses | 358.6 | 352.6 | 1,147.5 | 1,161.4 |
Operating income (loss) | (34.9) | (27.7) | (32.7) | 14.3 |
Interest income (expense), net | 0.6 | 1.4 | 2.4 | 2.3 |
Other components of net periodic benefit (cost) | (0.3) | 0.1 | (0.8) | 0.2 |
Earnings (loss) before income taxes | (34.6) | (26.2) | (31.1) | 16.8 |
Provision (benefit) for income taxes | (8.1) | (6.9) | (7.3) | 6.1 |
Net income (loss) | (26.5) | (19.3) | (23.8) | 10.7 |
Less: Net income (loss) attributable to noncontrolling interest | 0 | (0.1) | 0 | 0.1 |
Net income (loss) attributable to Scholastic Corporation | $ (26.5) | $ (19.2) | $ (23.8) | $ 10.6 |
Basic and diluted earnings (loss) per share of Class A and Common Stock | ||||
Basic (in Dollars per share) | $ (0.91) | $ (0.57) | $ (0.80) | $ 0.31 |
Diluted (in Dollars per share) | $ (0.91) | $ (0.57) | $ (0.80) | $ 0.30 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (26.5) | $ (19.3) | $ (23.8) | $ 10.7 |
Other comprehensive income (loss), net: | ||||
Foreign currency translation adjustments | (0.4) | (1) | 1.6 | (7.6) |
Pension and postretirement adjustments (net of tax) | 0.2 | 0 | 0.5 | (0.1) |
Total other comprehensive income (loss), net | (0.2) | (1) | 2.1 | (7.7) |
Comprehensive income (loss) | (26.7) | (20.3) | (21.7) | 3 |
Less: Net income (loss) attributable to noncontrolling interest | 0 | (0.1) | 0 | 0.1 |
Comprehensive income (loss) attributable to Scholastic Corporation | $ (26.7) | $ (20.2) | $ (21.7) | $ 2.9 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Feb. 29, 2024 | May 31, 2023 | Feb. 28, 2023 |
Current Assets: | |||
Cash and cash equivalents | $ 110.4 | $ 224.5 | $ 198.8 |
Accounts receivable, net | 253 | 278 | 261.7 |
Inventories, net | 282.5 | 334.5 | 367.5 |
Income tax receivable | 29.9 | 8.9 | 28.5 |
Prepaid expenses and other current assets | 52.9 | 47 | 71.4 |
Total current assets | 728.7 | 892.9 | 927.9 |
Noncurrent Assets: | |||
Property, plant and equipment, net | 512.6 | 521.4 | 510.5 |
Prepublication costs, net | 54 | 56.4 | 54 |
Operating lease right-of-use assets, net | 91.6 | 85.7 | 75.3 |
Royalty advances, net | 56.2 | 56.8 | 59.6 |
Goodwill | 132.8 | 132.7 | 131.9 |
Noncurrent deferred income taxes | 21 | 21 | 21.4 |
Other assets and deferred charges | 118.3 | 99.8 | 96.9 |
Total noncurrent assets | 986.5 | 973.8 | 949.6 |
Total assets | 1,715.2 | 1,866.7 | 1,877.5 |
Current Liabilities: | |||
Lines of credit and current portion of long-term debt | 31.5 | 6 | 5.2 |
Accounts payable | 126.1 | 170.9 | 158.4 |
Accrued royalties | 75.1 | 52.8 | 83.2 |
Deferred revenue | 193.8 | 169.1 | 203 |
Other accrued expenses | 156.7 | 168.9 | 163.9 |
Accrued income taxes | 2.7 | 13.4 | 1.4 |
Operating lease liabilities | 22.6 | 21.2 | 21.8 |
Total current liabilities | 608.5 | 602.3 | 636.9 |
Noncurrent Liabilities: | |||
Total long-term debt | 0 | 0 | 0 |
Operating lease liabilities | 79.4 | 73.8 | 62.8 |
Other noncurrent liabilities | 29.7 | 26.1 | 27.9 |
Total noncurrent liabilities | 109.1 | 99.9 | 90.7 |
Commitments and Contingencies (see Note 5) | 0 | 0 | 0 |
Stockholders’ Equity: | |||
Preferred Stock, $1.00 par value: Authorized, 2.0 shares; Issued and Outstanding, none | 0 | 0 | 0 |
Additional paid-in capital | 603 | 632.2 | 630.6 |
Accumulated other comprehensive income (loss) | (53.7) | (55.8) | (53.1) |
Retained earnings | 993.5 | 1,035.6 | 966.4 |
Treasury stock, at cost: 15.1, 12.9 and 11.5 shares, respectively | (545.6) | (449.5) | (395.9) |
Total stockholders’ equity of Scholastic Corporation | 997.6 | 1,162.9 | 1,148.4 |
Noncontrolling interest | 0 | 1.6 | 1.5 |
Total stockholders’ equity | 997.6 | 1,164.5 | 1,149.9 |
Total liabilities and stockholders’ equity | 1,715.2 | 1,866.7 | 1,877.5 |
Common Class A | |||
Stockholders’ Equity: | |||
Common Stock, value | 0 | 0 | 0 |
Common Class | |||
Stockholders’ Equity: | |||
Common Stock, value | $ 0.4 | $ 0.4 | $ 0.4 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Feb. 29, 2024 | May 31, 2023 | Feb. 28, 2023 |
Preferred stock at par value per share (in dollars per share) | $ 1 | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 |
Treasury stock (in shares) | 15,100,000 | 12,900,000 | 11,500,000 |
Common Class A | |||
Common Stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 3,200,000 | 4,000,000 | 4,000,000 |
Common stock, shares issued (in shares) | 800,000 | 1,700,000 | 1,700,000 |
Common stock, shares outstanding (in shares) | 800,000 | 1,700,000 | 1,700,000 |
Common Class | |||
Common Stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 70,000,000 | 70,000,000 | 70,000,000 |
Common stock, shares issued (in shares) | 42,900,000 | 42,900,000 | 42,900,000 |
Common stock, shares outstanding (in shares) | 27,800,000 | 30,000,000 | 31,400,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY Statement - USD ($) shares in Millions, $ in Millions | Total | Common Class | Common Class Common Class A | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock At Cost | Total Stockholders' Equity of Scholastic Corporation | Noncontrolling Interest |
Beginning balance at May. 31, 2022 | $ 1,218.4 | $ 0.4 | $ 0 | $ 627 | $ (45.4) | $ 976.5 | $ (341.5) | $ 1,217 | $ 1.4 |
Balance (in shares) at Aug. 31, 2022 | 32.7 | 1.7 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (45.4) | (45.5) | (45.5) | 0.1 | |||||
Foreign currency translation adjustments | (9.6) | (9.6) | (9.6) | ||||||
Pension and post-retirement adjustments (net of tax of $0.1) | 0 | 0 | 0 | ||||||
Stock-based compensation | 1.7 | 1.7 | 1.7 | ||||||
Proceeds pursuant to stock-based compensation plans | 11.6 | 11.6 | 11.6 | ||||||
Purchases of treasury stock at cost (in shares) | (0.1) | ||||||||
Purchases of treasury stock at cost | (5.1) | (5.1) | (5.1) | ||||||
Treasury stock issued pursuant to equity-based plans (in shares) | 0.3 | ||||||||
Treasury stock issued pursuant to equity-based plans | 1.6 | (10.8) | 12.4 | 1.6 | |||||
Dividends ($0.20 per share) | (6.9) | (6.9) | (6.9) | ||||||
Ending balance at Aug. 31, 2022 | 1,166.3 | $ 0.4 | $ 0 | 629.5 | (55) | 924.1 | (334.2) | 1,164.8 | 1.5 |
Balance (in shares) at May. 31, 2022 | 32.5 | 1.7 | |||||||
Beginning balance at May. 31, 2022 | 1,218.4 | $ 0.4 | $ 0 | 627 | (45.4) | 976.5 | (341.5) | 1,217 | 1.4 |
Balance (in shares) at Feb. 28, 2023 | 31.4 | 1.7 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 10.7 | ||||||||
Foreign currency translation adjustments | (7.6) | ||||||||
Ending balance at Feb. 28, 2023 | 1,149.9 | $ 0.4 | $ 0 | 630.6 | (53.1) | 966.4 | (395.9) | 1,148.4 | 1.5 |
Balance (in shares) at May. 31, 2022 | 32.5 | 1.7 | |||||||
Beginning balance at Aug. 31, 2022 | 1,166.3 | $ 0.4 | $ 0 | 629.5 | (55) | 924.1 | (334.2) | 1,164.8 | 1.5 |
Balance (in shares) at Nov. 30, 2022 | 32.4 | 1.7 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 75.4 | 75.3 | 75.3 | 0.1 | |||||
Foreign currency translation adjustments | 3 | 3 | 3 | ||||||
Pension and post-retirement adjustments (net of tax of $0.1) | 0.1 | 0.1 | 0.1 | ||||||
Stock-based compensation | 4.2 | 4.2 | 4.2 | ||||||
Proceeds pursuant to stock-based compensation plans | 1.5 | 1.5 | 1.5 | ||||||
Purchases of treasury stock at cost (in shares) | (0.6) | ||||||||
Purchases of treasury stock at cost | (26) | (26) | (26) | ||||||
Treasury stock issued pursuant to equity-based plans (in shares) | 0.3 | ||||||||
Treasury stock issued pursuant to equity-based plans | 0.8 | (6.2) | 7 | 0.8 | |||||
Dividends ($0.20 per share) | (7) | (7) | (7) | ||||||
Ending balance at Nov. 30, 2022 | 1,218.1 | $ 0.4 | $ 0 | 629 | (52.1) | 992.4 | (353.2) | 1,216.5 | 1.6 |
Balance (in shares) at Aug. 31, 2022 | 32.7 | 1.7 | |||||||
Balance (in shares) at Feb. 28, 2023 | 31.4 | 1.7 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (19.3) | (19.2) | (19.2) | (0.1) | |||||
Foreign currency translation adjustments | (1) | (1) | (1) | ||||||
Pension and post-retirement adjustments (net of tax of $0.1) | 0 | 0 | 0 | ||||||
Stock-based compensation | 2.3 | 2.3 | 2.3 | ||||||
Proceeds pursuant to stock-based compensation plans | 3.1 | 3.1 | 3.1 | ||||||
Purchases of treasury stock at cost (in shares) | (1.1) | ||||||||
Purchases of treasury stock at cost | (46.9) | (46.9) | (46.9) | ||||||
Treasury stock issued pursuant to equity-based plans (in shares) | 0.1 | ||||||||
Treasury stock issued pursuant to equity-based plans | 0.4 | (3.8) | 4.2 | 0.4 | |||||
Dividends ($0.20 per share) | (6.8) | (6.8) | (6.8) | ||||||
Ending balance at Feb. 28, 2023 | 1,149.9 | $ 0.4 | $ 0 | 630.6 | (53.1) | 966.4 | (395.9) | 1,148.4 | 1.5 |
Balance (in shares) at Nov. 30, 2022 | 32.4 | 1.7 | |||||||
Beginning balance at May. 31, 2023 | 1,164.5 | $ 0.4 | $ 0 | 632.2 | (55.8) | 1,035.6 | (449.5) | 1,162.9 | 1.6 |
Balance (in shares) at Aug. 31, 2023 | 29.3 | 1.7 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (74.2) | (74.2) | (74.2) | ||||||
Foreign currency translation adjustments | 1.8 | 1.8 | 1.8 | ||||||
Pension and post-retirement adjustments (net of tax of $0.1) | 0.2 | 0.2 | 0.2 | ||||||
Stock-based compensation | 2.3 | 2.3 | 2.3 | ||||||
Proceeds pursuant to stock-based compensation plans | 3 | 3 | 3 | ||||||
Purchases of treasury stock at cost (in shares) | (0.8) | ||||||||
Purchases of treasury stock at cost | (36.2) | (36.2) | (36.2) | ||||||
Treasury stock issued pursuant to equity-based plans (in shares) | 0.1 | ||||||||
Treasury stock issued pursuant to equity-based plans | 1.6 | (4.3) | 5.9 | 1.6 | |||||
Dividends ($0.20 per share) | (6.3) | (6.3) | (6.3) | ||||||
Other (noncontrolling interest) | (2.1) | (0.5) | (0.5) | (1.6) | |||||
Ending balance at Aug. 31, 2023 | 1,054.6 | $ 0.4 | $ 0 | 632.7 | (53.8) | 955.1 | (479.8) | 1,054.6 | 0 |
Balance (in shares) at May. 31, 2023 | 30 | 1.7 | |||||||
Beginning balance at May. 31, 2023 | 1,164.5 | $ 0.4 | $ 0 | 632.2 | (55.8) | 1,035.6 | (449.5) | 1,162.9 | 1.6 |
Balance (in shares) at Feb. 29, 2024 | 27.8 | 0.8 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (23.8) | ||||||||
Foreign currency translation adjustments | 1.6 | ||||||||
Purchases of treasury stock at cost | (142.7) | ||||||||
Ending balance at Feb. 29, 2024 | 997.6 | $ 0.4 | $ 0 | 603 | (53.7) | 993.5 | (545.6) | 997.6 | 0 |
Balance (in shares) at May. 31, 2023 | 30 | 1.7 | |||||||
Beginning balance at Aug. 31, 2023 | 1,054.6 | $ 0.4 | $ 0 | 632.7 | (53.8) | 955.1 | (479.8) | 1,054.6 | 0 |
Balance (in shares) at Nov. 30, 2023 | 28.2 | 1.7 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 76.9 | 76.9 | 76.9 | ||||||
Foreign currency translation adjustments | 0.2 | 0.2 | 0.2 | ||||||
Pension and post-retirement adjustments (net of tax of $0.1) | (0.1) | (0.1) | (0.1) | ||||||
Stock-based compensation | 4.1 | 4.1 | 4.1 | ||||||
Proceeds pursuant to stock-based compensation plans | 0.6 | 0.6 | 0.6 | ||||||
Purchases of treasury stock at cost (in shares) | (1.4) | ||||||||
Purchases of treasury stock at cost | (52.3) | (52.3) | (52.3) | ||||||
Treasury stock issued pursuant to equity-based plans (in shares) | 0.3 | ||||||||
Treasury stock issued pursuant to equity-based plans | 0.9 | (6.6) | 7.5 | 0.9 | |||||
Dividends ($0.20 per share) | (6) | (6) | (6) | ||||||
Ending balance at Nov. 30, 2023 | 1,079.1 | $ 0.4 | $ 0 | 630.8 | (53.5) | 1,026 | (524.6) | 1,079.1 | 0 |
Balance (in shares) at Aug. 31, 2023 | 29.3 | 1.7 | |||||||
Balance (in shares) at Feb. 29, 2024 | 27.8 | 0.8 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (26.5) | (26.5) | (26.5) | ||||||
Foreign currency translation adjustments | (0.4) | (0.4) | (0.4) | ||||||
Pension and post-retirement adjustments (net of tax of $0.1) | (0.2) | (0.2) | (0.2) | ||||||
Stock-based compensation | 2.3 | 2.3 | 2.3 | ||||||
Proceeds pursuant to stock-based compensation plans | 2.5 | 2.5 | 2.5 | ||||||
Purchases of treasury stock at cost (in shares) | (1.4) | ||||||||
Purchases of treasury stock at cost | (54.2) | (54.2) | (54.2) | ||||||
Treasury stock issued pursuant to equity-based plans (in shares) | 0.1 | ||||||||
Treasury stock issued pursuant to equity-based plans | 0.6 | (4) | 4.6 | 0.6 | |||||
Dividends ($0.20 per share) | (6) | (6) | (6) | ||||||
Other (share conversion) | $ 0 | (28.6) | 28.6 | ||||||
Other (share conversion) (in shares) | 0.9 | (0.9) | |||||||
Ending balance at Feb. 29, 2024 | $ 997.6 | $ 0.4 | $ 0 | $ 603 | $ (53.7) | $ 993.5 | $ (545.6) | $ 997.6 | $ 0 |
Balance (in shares) at Nov. 30, 2023 | 28.2 | 1.7 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |||||
Feb. 29, 2024 | Nov. 30, 2023 | Aug. 31, 2023 | Feb. 28, 2023 | Nov. 30, 2022 | Aug. 31, 2022 | |
Pension and postretirement adjustments, tax portion | $ 0.1 | $ 0 | $ 0.1 | $ 0.1 | $ 0 | $ 0.1 |
Pension and post-retirement adjustments (net of tax of $0.0) | 0.2 | 0.1 | (0.2) | 0 | (0.1) | 0 |
Total Stockholders' Equity of Scholastic Corporation | ||||||
Pension and post-retirement adjustments (net of tax of $0.0) | $ 0.2 | $ 0.1 | $ (0.2) | $ 0 | $ (0.1) | $ 0 |
Common Class A | ||||||
Dividends declared per class A and common share (in Dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Cash flows - operating activities: | ||
Net income (loss) attributable to Scholastic Corporation | $ (23.8) | $ 10.6 |
Adjustments to reconcile Net income (loss) to net cash provided by (used in) operating activities: | ||
Provision for losses on accounts receivable | 4 | 1.8 |
Provision for losses on inventory | 15.7 | 15.2 |
Provision for losses on royalty advances | 2.2 | 2.6 |
Amortization of prepublication costs | 19.9 | 18.5 |
Depreciation and amortization | 49.2 | 48.3 |
Amortization of pension and postretirement plans | 0.3 | (0.3) |
Deferred income taxes | 0.2 | (0.4) |
Stock-based compensation | 8.7 | 8.2 |
Income from equity-method investments | 0.1 | 1.5 |
Asset impairments and write downs | 0.5 | 0 |
Changes in assets and liabilities, net of amounts acquired: | ||
Accounts receivable | 21.2 | 32.9 |
Inventories | 36.7 | (105.4) |
Prepaid expenses and other current assets | (5.8) | (2.9) |
Income tax receivable | (21) | (1.8) |
Royalty advances | (1.5) | (13.4) |
Accounts payable | (44.6) | (2.7) |
Accrued income taxes | (10.6) | (1.1) |
Accrued royalties | 22.3 | 22.8 |
Deferred revenue | 24.7 | 31 |
Other accrued expenses | (15.3) | (30.5) |
Other, net | 1.8 | (3) |
Net cash provided by (used in) operating activities | 84.7 | 28.9 |
Cash flows - investing activities: | ||
Prepublication expenditures | (17.2) | (17.8) |
Additions to property, plant and equipment | (43.8) | (36.8) |
Other investment and acquisition-related payments | (8.5) | (10.7) |
Net cash provided by (used in) investing activities | (69.5) | (65.3) |
Cash flows - financing activities: | ||
Borrowings under lines of credit, credit agreement and revolving loan | 52.9 | 2.5 |
Repayments of lines of credit, credit agreement and revolving loan | (27.5) | (3.6) |
Repayment of capital lease obligations | (1.7) | (1.7) |
Reacquisition of common stock | (143) | (75.9) |
Proceeds pursuant to stock-based compensation plans | 8.7 | 18.4 |
Payment of dividends | (18.9) | (18.9) |
Other | 0.1 | (0.1) |
Net cash provided by (used in) financing activities | (129.4) | (79.3) |
Effect of exchange rate changes on cash and cash equivalents | 0.1 | (2.1) |
Net increase (decrease) in cash and cash equivalents | (114.1) | (117.8) |
Cash and cash equivalents at beginning of period | 224.5 | 316.6 |
Cash and cash equivalents at end of period | $ 110.4 | $ 198.8 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Feb. 29, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION Principles of consolidation The accompanying condensed consolidated interim financial statements (referred to as the “Financial Statements” herein) include the accounts of Scholastic Corporation (the “Corporation”) and all wholly-owned and majority-owned subsidiaries (collectively, “Scholastic” or the “Company”). Intercompany transactions are eliminated in consolidation. The Company’s fiscal year is not a calendar year. Accordingly, references in this document to fiscal 2024 relate to the twelve-month period ending May 31, 2024. Noncontrolling Interest On June 1, 2023, the Company acquired the remaining shares of Make Believe Ideas Limited ("MBI"), a UK-based children's book publishing company, which represented a 5.0% noncontrolling interest, increasing the Company's total ownership from 95.0% to 100%. Prior to June 1, 2023, the founder and chief executive officer of MBI retained a 5.0% noncontrolling ownership interest in MBI. The Company fully consolidated MBI as of the acquisition date and the 5.0% noncontrolling interest was classified within stockholder's equity. Interim Financial Statements The accompanying Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”) for interim financial information, and should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2023. The Financial Statements presented in this Quarterly Report on Form 10-Q are unaudited; however, in the opinion of management, the Financial Statements reflect all adjustments, consisting solely of normal, recurring adjustments, necessary for the fair presentation of the Financial Statements for the periods presented. Seasonality The Company’s Children’s Book Publishing and Distribution school-based book club and book fair channels and most of its Education Solutions businesses operate on a school-year basis; therefore, the Company’s business is highly seasonal. As a result, the Company’s revenues in the first and third quarters of the fiscal year generally are lower than its revenues in the other two fiscal quarters. Typically, school-based channels and magazine revenues are minimal in the first quarter of the fiscal year as schools are not in session. Education channel revenues are generally higher in the fourth quarter. Trade sales can vary throughout the year due to varying release dates of published titles. Use of estimates The preparation of these Financial Statements involves the use of estimates and assumptions by management, which affects the amounts reported in the Financial Statements and accompanying notes. The Company bases its estimates on historical experience, current business factors, and various other assumptions believed to be reasonable under the circumstances, all of which are necessary, in order to form a basis for determining the carrying values of certain assets and liabilities. Actual results may differ from those estimates and assumptions. On an on-going basis, the Company evaluates the adequacy of its reserves and the estimates used in these calculations, including, but not limited to: • Accounts receivable allowance for credit losses • Pension and postretirement benefit plans • Uncertain tax positions • The timing and amount of future income taxes and related deductions • Inventory reserves • Cost of goods sold from book fair operations during interim periods based on estimated gross profit rates • Sales tax contingencies • Royalty advance reserves and royalty expense accruals • Impairment testing for goodwill, intangible and other long-lived assets and investments • Assets and liabilities acquired in business combinations • Variable consideration related to anticipated returns • Allocation of transaction price to contractual performance obligations New Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, “Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures.” This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This ASU will be effective for the Company's fiscal year 2025, and interim periods starting in fiscal year 2026. Early adoption is permitted. The amendments in this ASU are to be applied retrospectively to all prior periods presented in the financial statements. The Company is currently assessing the impact of the disclosure requirements on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740)." The amendments in this update enhance the transparency and decision usefulness of income tax disclosures to provide information to better assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The amendments in this ASU require more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This ASU will be effective for the Company's fiscal year 2026. Early adoption is permitted. The amendments are to be applied prospectively, but may be applied retrospectively to all prior periods presented in the financial statements. The Company is currently assessing the impact of the disclosure requirements on its consolidated financial statements. Refer to the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2023, for more information on current applicable authoritative guidance and its impact on the Company's financial statements. |
Revenues
Revenues | 9 Months Ended |
Feb. 29, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | REVENUES Disaggregated Revenue Data The following table presents the Company’s segment revenues disaggregated by region and domestic channel: Three months ended Nine months ended February 29, February 28, February 29, February 28, 2024 2023 2024 2023 Book Clubs - U.S. $ 13.3 $ 27.7 $ 48.3 $ 91.6 Book Fairs - U.S. 102.7 103.5 372.1 372.6 Trade - U.S. 70.0 64.8 233.5 248.9 Trade - International (1) 7.6 8.0 35.3 33.9 Total Children's Book Publishing and Distribution $ 193.6 $ 204.0 $ 689.2 $ 747.0 Education Solutions - U.S. $ 68.5 $ 70.0 $ 215.5 $ 223.2 Total Education Solutions $ 68.5 $ 70.0 $ 215.5 $ 223.2 International - Major Markets (2) $ 48.0 $ 41.3 $ 171.2 $ 171.8 International - Other Markets (3) 11.1 9.6 31.6 33.7 Total International $ 59.1 $ 50.9 $ 202.8 $ 205.5 Total (4) $ 321.2 $ 324.9 $ 1,107.5 $ 1,175.7 (1) Primarily includes foreign rights and certain product sales in the UK. (2) Includes Canada, UK, Australia and New Zealand. (3) Primarily includes markets in Asia. (4) Total revenues of $323.7 and $1,114.8 for the three and nine months ended February 29, 2024, respectively, included rental income of $2.5 and $7.3, respectively, related to leased space in the Company's headquarters which was not allocated to a segment. Rental income of $1.5 and $4.6 for the three and nine months ended February 28, 2023, respectively, was recognized as a reduction to Selling, general and administrative expenses. Estimated Returns A liability for expected returns of $38.3, $34.9, and $44.8 is recorded within Other accrued expenses as of February 29, 2024, May 31, 2023, and February 28, 2023, respectively. In addition, a return asset of $4.4, $4.7, and $3.5 is recorded within Prepaid expenses and other current assets as of February 29, 2024, May 31, 2023, and February 28, 2023, respectively, for the recoverable cost of product estimated to be returned by customers. Contract Liabilities The following table presents further detail regarding the Company's contract liabilities as of the dates indicated: February 29, 2024 May 31, 2023 February 28, 2023 Book fairs incentive credits $ 109.9 $ 110.8 $ 105.2 Magazines+ subscriptions 30.5 5.0 30.7 U.S. digital subscriptions 16.8 22.8 25.2 U.S. education-related (1) 10.6 9.8 13.5 Media-related 0.1 0.0 4.4 Stored value programs 20.1 12.4 14.8 Other (2) 12.1 8.3 9.2 Total contract liabilities $ 200.1 $ 169.1 $ 203.0 (1) Primarily includes contract liabilities related to contracts with school districts and professional services. (2) Primarily includes contract liabilities related to various international products and services. The Company's contract liabilities consist of advance billings and payments received from customers in excess of revenue recognized and revenue allocated to outstanding book fairs incentive credits. As of February 29, 2024, contract liabilities of $193.8 are recorded within Deferred revenue on the Company's Condensed Consolidated Balance Sheet and are classified as short term, as substantially all of the associated performance obligations are expected to be satisfied, and related revenue recognized, within one year. The remaining $6.3 of contract liabilities as of February 29, 2024 are recorded within Other noncurrent liabilities on the Company's Condensed Consolidated Balance Sheet as the associated performance obligations are expected to be satisfied, and related revenue recognized, in excess of one year. Contract liabilities of $169.1 and $203.0 as of May 31, 2023 and February 28, 2023, respectively, are recorded within Deferred revenue on the Company's Condensed Consolidated Balance Sheets. The Company recognized revenue which was included in the opening Deferred revenue balance in the amount of $33.0 and $113.7 for the three and nine months ended February 29, 2024, respectively, and $45.9 and $126.2 for the three and nine months ended February 28, 2023, respectively. Allowance for Credit Losses The Company recognizes an allowance for credit losses on customer receivables that are expected to be incurred over the lifetime of the receivable. Reserves for estimated credit losses are established at the time of sale and are based on relevant information about past events, current conditions, and supportable forecasts impacting its ultimate collectability, including specific reserves on a customer-by-customer basis, creditworthiness of the Company’s customers and prior collection experience. The Company reviews new information as it becomes available and makes adjustments to the reserves accordingly. At the time the Company determines that a receivable balance, or any portion thereof, is deemed to be permanently uncollectible, the balance is then written off. The following table presents the change in the allowance for credit losses, which is included in Accounts Receivable, net on the Condensed Consolidated Balance Sheets: Allowance for Credit Losses Balance as of June 1, 2023 $ 16.7 Provision (benefit) 0.6 Write-offs and other (0.2) Balance as of August 31, 2023 $ 17.1 Provision (benefit) 2.5 Write-offs and other (3.4) Balance as of November 30, 2023 $ 16.2 Provision (benefit) 0.9 Write-offs and other (1.5) Balance as of February 29, 2024 $ 15.6 |
Segment Information
Segment Information | 9 Months Ended |
Feb. 29, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company categorizes its businesses into three reportable segments: Children’s Book Publishing and Distribution, Education Solutions and International . • Children’s Book Publishing and Distribution operates as an integrated business which includes the publication and distribution of children’s books, ebooks, media and interactive products primarily in the United States through its school reading events business, which includes the book clubs and book fairs channels, and through the trade channel. This segment is comprised of two operating segments. • Education Solutions includes the publication and distribution to schools and libraries of children’s books, classroom magazines, print and digital supplemental and core classroom materials and related support services, and print and online reference and non-fiction products for grades pre-kindergarten to 12 in the United States. This segment is comprised of one operating segment. • International includes the publication and distribution of products and services outside the United States by the Company’s international operations and its export businesses. This segment is comprised of three operating segments. The following table sets forth the Company's revenue and operating income (loss) by segment for the periods indicated: Three months ended Nine months ended February 29, February 28, February 29, February 28, 2024 2023 2024 2023 Revenues Children's Book Publishing and Distribution $ 193.6 $ 204.0 $ 689.2 $ 747.0 Education Solutions 68.5 70.0 215.5 223.2 International 59.1 50.9 202.8 205.5 Total (1) $ 321.2 $ 324.9 $ 1,107.5 $ 1,175.7 Operating income (loss) Children's Book Publishing and Distribution $ (0.8) $ 1.9 $ 68.5 $ 85.0 Education Solutions (0.8) 0.7 (13.7) 3.4 International (5.9) (9.0) (6.1) (5.8) Overhead (2) (27.4) (21.3) (81.4) (68.3) Total $ (34.9) $ (27.7) $ (32.7) $ 14.3 (1) Total revenues of $323.7 and $1,114.8 for the three and nine months ended February 29, 2024, respectively, included rental income of $2.5 and $7.3, respectively, related to leased space in the Company's headquarters which was not allocated to a segment. Rental income of $1.5 and $4.6 for the three and nine months ended February 28, 2023, respectively, was recognized as a reduction to Selling, general and administrative expenses. (2) Overhead includes all domestic corporate amounts not allocated to segments, including expenses and costs related to the management of corporate assets. |
Debt
Debt | 9 Months Ended |
Feb. 29, 2024 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The following table summarizes the carrying value of the Company's debt as of the dates indicated: February 29, 2024 May 31, 2023 February 28, 2023 US Revolving Credit Agreement $ 25.0 $ — $ — Unsecured lines of credit 6.5 6.0 5.2 Total debt $ 31.5 $ 6.0 $ 5.2 Less lines of credit, short-term debt and current portion of long-term debt (31.5) (6.0) (5.2) Total long-term debt $ — $ — $ — The Company's debt obligations as of February 29, 2024 have maturities of one year or less. US Credit Agreement On October 27, 2021, Scholastic Corporation and its principal operating subsidiary, Scholastic Inc., entered into an amended and restated 5-year credit agreement with a syndicate of banks and Bank of America, N.A., as administrative agent and Truist Bank and Wells Fargo Bank, National Association, as co-syndication agents (the “Credit Agreement”). The Credit Agreement provides for a $300.0 unsecured revolving credit facility and allows the Company to borrow, repay or prepay and reborrow at any time prior to the October 27, 2026 maturity date. The Credit Agreement also provides an unlimited basket for permitted payments of dividends and other distributions in respect of capital stock so long as the Corporation’s pro forma Consolidated Net Leverage Ratio, as defined, is not in excess of 2.75:1. On February 28, 2023, the Company entered into the First and Second Amendments to the Credit Agreement (collectively the "Amendments"). The Amendments, among other things, (i) adjusted the credit spread adjustment for SOFR (the secured overnight financing rate as administered by the Federal Reserve Bank of New York) to 0.10% (10 basis points) and (ii) transitioned the reference rate under the Credit Agreement for borrowings from LIBOR (the London interbank offered rate) to SOFR, together with various other conforming changes to accommodate such replacement. Under the Credit Agreement, interest on amounts borrowed thereunder is due and payable in arrears on the last day of the interest period (defined as the period commencing on the date of the advance and ending on the last day of the period selected by the Borrower at the time each advance is made). The interest pricing under the Credit Agreement is dependent upon the Borrower’s election of a rate that is either: • a Base Rate equal to the higher of (i) the prime rate, (ii) the prevailing Federal Funds rate plus 0.50% or (iii) the Term SOFR Rate plus 1.00% plus, in each case, an applicable margin ranging from 0.35% to 0.75%, as determined by the Company’s prevailing Consolidated Leverage Ratio (as defined in the Credit Agreement); - or - • a SOFR rate (Daily Simple or Term), plus a SOFR adjustment of 0.10% per annum and an applicable margin ranging from 1.35% to 1.75%, as determined by the Company’s prevailing Consolidated Leverage Ratio. As of February 29, 2024, the applicable margin on Base Rate Advances was 0.35% and the applicable margin on SOFR Advances was 1.35%, both based on the Company’s prevailing Consolidated Leverage Ratio. The Credit Agreement provides for payment of a commitment fee in respect of the aggregate unused amount of revolving credit commitments ranging from 0.20% per annum to 0.30% per annum based upon the Corporation’s then prevailing Consolidated Leverage Ratio. As of February 29, 2024, the commitment fee rate was 0.20%. A portion of the revolving credit facility, up to a maximum of $50.0, is available for the issuance of letters of credit. In addition, a portion of the revolving credit facility, up to a maximum of $15.0, is available for swingline loans. The Credit Agreement has an accordion feature which permits the Company, provided certain conditions are satisfied, to increase the facility by up to an additional $150.0. As of February 29, 2024, outstanding borrowings under the Credit Agreement were $25.0 at an all-in borrowing rate of 6.77%. As of May 31, 2023 and February 28, 2023, the Company had no outstanding borrowings under the Credit Agreement. The Credit Agreement contains certain financial covenants related to leverage and interest coverage ratios (as defined in the Credit Agreement), limitations on the amount of dividends and other distributions, and other limitations on fundamental changes to the Company or its business. The Company was in compliance with required covenants for all periods presented. At February 29, 2024, the Company had open standby letters of credit totaling $3.8 issued under certain credit lines, including $0.4 under the Credit Agreement and $3.4 under the domestic credit lines discussed below. Lines of Credit As of February 29, 2024, the Company’s domestic credit lines available under unsecured money market bid rate credit lines totaled $10.0. There were no outstanding borrowings under these credit lines as of February 29, 2024, May 31, 2023 and February 28, 2023. As of February 29, 2024, availability under these unsecured money market bid rate credit lines totaled $6.6, excluding commitments of $3.4. All loans made under these credit lines are at the sole discretion of the lender and at an interest rate and term agreed to at the time each loan is made, but not to exceed 365 days. These credit lines may be renewed, if requested by the Company, at the option of the lender. As of February 29, 2024, the Company had various local currency international credit lines totaling $23.6 underwritten by banks primarily in the United States, Canada and the United Kingdom. Outstanding borrowings under these facilities were $6.5 at February 29, 2024 at a weighted average interest rate of 3.8%, compared to outstanding borrowings of |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Feb. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Legal Matters Various claims and lawsuits arising in the normal course of business are pending against the Company. The Company accrues a liability for such matters when it is probable that a liability has occurred and the amount of such liability can be reasonably estimated. When only a range can be estimated, the most probable amount in the range is accrued unless no amount within the range is a better estimate than any other amount, in which case the minimum amount in the range is accrued. Legal costs associated with litigation are expensed in the period in which they are incurred. The Company does not expect, in the case of those various claims and lawsuits arising in the normal course of business where a loss is considered probable or reasonably possible, that the reasonably possible losses from such claims and lawsuits (either individually or in the aggregate) would have a material adverse effect on the Company’s consolidated financial position or results of operations. During the third quarter of fiscal 2023, the Company received $5.0 in recoveries from its insurance programs related to photo litigation settlements accrued and paid in prior periods. The recoveries were recognized as an offset to the legal settlements and reflected in Selling, general and administrative expenses in the Company's Condensed Consolidated Statement of Operations for the quarter ended February 28, 2023. The Company expects to receive additional recoveries from its insurance programs related to an intellectual property legal settlement accrued during fiscal 2021, however, it is premature to determine with any level of probability or accuracy the amount of those recoveries at this time. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Feb. 29, 2024 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | EARNINGS (LOSS) PER SHARE The following table summarizes the reconciliation of the numerators and denominators for the basic and diluted earnings (loss) per share computation for the periods indicated: Three months ended Nine months ended February 29, February 28, February 29, February 28, 2024 2023 2024 2023 Net income (loss) attributable to Class A and Common Stockholders $ (26.5) $ (19.2) $ (23.8) $ 10.6 Weighted average Shares of Class A Stock and Common Stock outstanding for basic earnings (loss) per share (in millions) 29.1 33.7 29.9 34.2 Dilutive effect of Class A Stock and Common Stock potentially issuable pursuant to stock-based compensation plans (in millions) — — — 0.9 Adjusted weighted average Shares of Class A Stock and Common Stock outstanding for diluted earnings (loss) per share (in millions) 29.1 33.7 29.9 35.1 Earnings (loss) per share of Class A Stock and Common Stock: Basic $ (0.91) $ (0.57) $ (0.80) $ 0.31 Diluted $ (0.91) $ (0.57) $ (0.80) $ 0.30 Anti-dilutive shares pursuant to stock-based compensation plans 1.1 0.7 0.7 0.6 The following table sets forth options outstanding pursuant to stock-based compensation plans as of the dates indicated: February 29, 2024 February 28, 2023 Options outstanding pursuant to stock-based compensation plans (in millions) 3.0 3.3 As of February 29, 2024, $46.0 remained available for future purchases of common shares under the repurchase authorization of the Board of Directors (the "Board") in effect on that date. See Note 12, Treasury Stock, for a more complete description of the Company’s share buy-back program and Note 18, "Subsequent Events", for additional Board authorization for Common share repurchases. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 9 Months Ended |
Feb. 29, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | GOODWILL AND OTHER INTANGIBLES The Company assesses goodwill and other intangible assets with indefinite lives for impairment annually or more frequently if indicators arise. The Company monitors impairment indicators in light of changes in market conditions, near and long-term demand for the Company’s products and other relevant factors. The following table summarizes the activity in Goodwill for the periods indicated: February 29, 2024 May 31, 2023 February 28, 2023 Gross beginning balance $ 172.3 $ 164.9 $ 164.9 Accumulated impairment (39.6) (39.6) (39.6) Beginning balance $ 132.7 $ 125.3 $ 125.3 Additions — 7.6 7.0 Foreign currency translation 0.1 (0.2) (0.4) Ending balance $ 132.8 $ 132.7 $ 131.9 In fiscal 2023, the Company acquired Learning Ovations, Inc, a U.S.-based education technology business, which resulted in the recognition of $7.6 of Goodwill included in the Education Solutions segment. Refer to Note 7, Acquisitions, for further details regarding the acquisition. There were no impairment charges related to Goodwill in any of the periods presented. The following table summarizes the activity in other intangibles included in Other assets and deferred charges on the Company’s Financial Statements for the periods indicated: February 29, 2024 May 31, 2023 February 28, 2023 Beginning balance - Other intangibles subject to amortization $ 7.8 $ 6.0 $ 6.0 Additions 6.0 4.1 4.1 Amortization expense (1.9) (2.2) (1.7) Foreign currency translation 0.0 (0.1) (0.1) Total other intangibles subject to amortization, net of accumulated amortization of $38.4, $36.5 and $36.0, respectively $ 11.9 $ 7.8 $ 8.3 Total other intangibles not subject to amortization $ 2.1 $ 2.1 $ 2.1 Total other intangibles $ 14.0 $ 9.9 $ 10.4 During the second quarter of fiscal 2024, the Company acquired certain amortizable intangible assets related to educational programs for $5.8. These intangible assets are amortized over the estimated useful life of 8 years. During the third quarter of fiscal 2024, the Company acquired $0.2 of certain amortizable intangible assets of a U.S.- based children's book publishing business. These intangible assets are amortized over the estimated useful life of 5 years. In fiscal 2023, the Company acquired Learning Ovations, Inc., a U.S.-based education technology business, which resulted in the recognition of $4.1 of amortizable intangible assets. These intangible assets are amortized over the estimated useful life of 7 years. Intangible assets with indefinite lives consist principally of trademark and trade name rights. Intangible assets with definite lives consist principally of customer lists, intellectual property, trade names and other agreements. Intangible assets with definite lives are amortized over their estimated useful lives. The weighted-average remaining useful lives of all amortizable intangible assets is approximately 6.0 years. |
Acquisitions
Acquisitions | 9 Months Ended |
Feb. 29, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | 7. ACQUISITIONS On June 1, 2023, the Company acquired the remaining shares of Make Believe Ideas Limited, a UK-based children's book publishing company, for $2.1, increasing the Company's total ownership from 95.0% to 100%. The acquisition was accounted for as an equity transaction as there was no change in control. The carrying value of the noncontrolling interest at the acquisition date was $1.6. The difference between the fair value of consideration paid and the carrying value was recognized as an adjustment to Additional paid-in capital of $0.5. On September 1, 2022, the Company acquired 100% of the share capital of Learning Ovations, Inc., a U.S.-based education technology business and developer of a literacy assessment and instructional system, for $11.1, net of cash acquired. The Company accounted for the acquisition as a business combination under the acquisition method of accounting. Fair values were assigned to the assets and liabilities acquired, including cash, receivables, and technology/know-how. The receivables acquired had a fair value of $0.1 and were collected as of the end of the first quarter of fiscal 2024. The Company utilized internally-developed discounted cash flow forecasts to determine the fair value of the technology/know-how using a discount rate of 17.5% to account for the relative risks of the estimated future cash flows. The Company classified this as a Level 3 fair value measurement due to the use of these significant unobservable inputs. The fair values of the net assets were $3.6, which included $4.1 of amortizable intangible assets attributable to the technology/know-how and a $0.6 deferred tax liability. This acquisition resulted in $7.6 of goodwill that was assigned to the Company's Education Solutions segment and was not deductible for tax purposes. The results of operations of this business subsequent to the acquisition are included in the Education Solutions segment. The transaction was not determined to be material to the Company's results and therefore pro forma financial information has not been presented. |
Investments
Investments | 9 Months Ended |
Feb. 29, 2024 | |
Equity Method And Cost Method Investments [Abstract] | |
Investment | INVESTMENTS Investments are included in Other assets and deferred charges on the Condensed Consolidated Balance Sheets. The following table summarizes the Company’s investments as of the dates indicated: February 29, 2024 May 31, 2023 February 28, 2023 Segment Equity method investments $ 30.8 $ 31.6 $ 31.1 International Other equity investments 6.0 6.0 6.0 Children's Book Publishing & Distribution Total Investments $ 36.8 $ 37.6 $ 37.1 The Company’s 26.2% equity interest in a children’s book publishing business located in the UK is accounted for using the equity method of accounting. Equity method income from this investment is reported in the International segment. The Company has a 4.6% ownership interest in a financing and production company that makes film, television, and digital programming designed for the youth market. This equity investment does not have a readily determinable fair value and the Company has elected to apply the measurement alternative and report this investment at cost, less impairment on the Company's Condensed Consolidated Balance Sheets. There have been no impairments or adjustments to the carrying value of this investment. Income (loss) from equity investments is reported in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and totaled a loss of $0.2 and income of $0.1 for the three and nine months ended February 29, 2024, respectively, and income of $0.2 and $1.5 for the three and nine months ended February 28, 2023, respectively. The Company received dividends of $1.3 in the three and nine month period ended February 29, 2024. The Company did not receive any dividends in the three and nine month period ended February 28, 2023. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Feb. 29, 2024 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The following table sets forth the components of net periodic benefit cost for the periods indicated under the Company’s defined benefit pension plan of Scholastic Ltd., an indirect subsidiary of Scholastic Corporation located in the United Kingdom (the “UK Pension Plan”), and the postretirement benefits plan, consisting of certain healthcare and life insurance benefits provided by the Company to its eligible retired United States-based employees (the “US Postretirement Benefits”), for the periods indicated: UK Pension Plan US Postretirement Benefits Three months ended Three months ended February 29, February 28, February 29, February 28, 2024 2023 2024 2023 Components of net periodic benefit cost: Interest cost $ 0.3 $ 0.3 $ 0.1 $ 0.1 Expected return on assets (0.2) (0.4) — — Amortization of prior service (credit) loss 0.0 0.0 (0.3) (0.3) Amortization of net actuarial (gain) loss 0.4 0.2 0.0 — Total $ 0.5 $ 0.1 $ (0.2) $ (0.2) UK Pension Plan US Postretirement Benefits Nine months ended Nine months ended February 29, February 28, February 29, February 28, 2024 2023 2024 2023 Components of net periodic benefit cost: Interest cost $ 1.0 $ 0.8 $ 0.3 $ 0.3 Expected return on assets (0.8) (1.0) — — Amortization of prior service (credit) loss 0.0 0.0 (0.7) (0.7) Amortization of net actuarial (gain) loss 1.0 0.4 0.0 — Total $ 1.2 $ 0.2 $ (0.4) $ (0.4) The Company’s funding practice with respect to the UK Pension Plan is to contribute on an annual basis at least the minimum amounts required by applicable law. For the nine months ended February 29, 2024, the Company contributed $0.9 to the UK Pension Plan. The Company expects, based on actuarial calculations, to contribute cash of approximately $1.2 to the UK Pension Plan for the fiscal year ending May 31, 2024. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Feb. 29, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The following table summarizes stock-based compensation expense included in Selling, general and administrative expenses for the periods indicated: Three months ended Nine months ended February 29, February 28, February 29, February 28, 2024 2023 2024 2023 Stock option expense $ 0.6 $ 0.7 $ 3.6 $ 3.7 Restricted stock unit expense 1.6 1.4 4.5 3.7 Management stock purchase plan 0.0 0.1 0.3 0.5 Employee stock purchase plan 0.1 0.1 0.3 0.3 Total stock-based compensation expense $ 2.3 $ 2.3 $ 8.7 $ 8.2 The following table sets forth Common Stock issued pursuant to stock-based compensation plans for the periods indicated: Three months ended Nine months ended February 29, February 28, February 29, February 28, 2024 2023 2024 2023 Common Stock issued pursuant to stock-based compensation plans (in millions) 0.1 0.1 0.5 0.7 |
Treasury Stock
Treasury Stock | 9 Months Ended |
Feb. 29, 2024 | |
Equity, Attributable to Parent [Abstract] | |
Treasury Stock | TREASURY STOCK The Board has authorized the Company to repurchase Common Stock, from time to time as conditions allow, on the open market or through privately negotiated transactions. The table below represents the Board authorization at the dates indicated: Authorization Amount July 2023 $ 100.0 December 2023 66.2 Total current Board authorizations $ 166.2 Less repurchases made under these authorizations $ (120.2) Remaining Board authorization at February 29, 2024 $ 46.0 Remaining Board authorization at February 29, 2024 represents the amount remaining under the current $66.2 Board authorization for Common share repurchases announced on December 13, 2023, which is available for further repurchases, from time to time as conditions allow, on the open market or through privately negotiated transactions. See Note 18, "Subsequent Events", for additional Board authorization for Common share repurchases. Repurchases of the Company's Common Stock were $54.2 and $142.7, including excise tax on share repurchases of $0.2 and $0.9, during the three and nine months ended February 29, 2024, respectively. The Company's repurchase program may be suspended at any time without prior notice. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Feb. 29, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables summarize the activity in Accumulated other comprehensive income (loss), net of tax, by component, for the periods indicated: Three months ended February 29, 2024 Foreign currency translation adjustments Retirement benefit plans Total Beginning balance at December 1, 2023 $ (48.0) $ (5.5) $ (53.5) Other comprehensive income (loss) before reclassifications (0.4) — (0.4) Less amount reclassified from Accumulated other comprehensive income (loss): Amortization of net actuarial loss (net of tax of $0.0) — 0.4 0.4 Amortization of prior service (credit) cost (net of tax of $0.1) — (0.2) (0.2) Other comprehensive income (loss) (0.4) 0.2 (0.2) Ending balance at February 29, 2024 $ (48.4) $ (5.3) $ (53.7) Three months ended February 28, 2023 Foreign currency translation adjustments Retirement benefit plans Total Beginning balance at December 1, 2022 $ (51.2) $ (0.9) $ (52.1) Other comprehensive income (loss) before reclassifications (1.0) — (1.0) Less amount reclassified from Accumulated other comprehensive income (loss): Amortization of net actuarial loss (net of tax of $0.0) — 0.2 0.2 Amortization of prior service (credit) cost (net of tax of $0.1) — (0.2) (0.2) Other comprehensive income (loss) (1.0) 0.0 (1.0) Ending balance at February 28, 2023 $ (52.2) $ (0.9) $ (53.1) Nine months ended February 29, 2024 Foreign currency translation adjustments Retirement benefit plans Total Beginning balance at June 1, 2023 $ (50.0) $ (5.8) $ (55.8) Other comprehensive income (loss) before reclassifications 1.6 — 1.6 Less amount reclassified from Accumulated other comprehensive income (loss): Amortization of net actuarial (gain) loss (net of tax of $0.0) — 1.0 1.0 Amortization of prior service (credit) cost (net of tax of $0.2) — (0.5) (0.5) Other comprehensive income (loss) 1.6 0.5 2.1 Ending balance at February 29, 2024 $ (48.4) $ (5.3) $ (53.7) Nine months ended February 28, 2023 Foreign currency translation adjustments Retirement benefit plans Total Beginning balance at June 1, 2022 $ (44.6) $ (0.8) $ (45.4) Other comprehensive income (loss) before reclassifications (7.6) — (7.6) Less amount reclassified from Accumulated other comprehensive income (loss): Amortization of net actuarial (gain) loss (net of tax of $0.0) — 0.4 0.4 Amortization of prior service (credit) cost (net of tax of $0.2) — (0.5) (0.5) Other comprehensive income (loss) (7.6) (0.1) (7.7) Ending balance at February 28, 2023 $ (52.2) $ (0.9) $ (53.1) The following table presents the impact on earnings of reclassifications out of Accumulated other comprehensive income (loss) for the periods indicated: Three months ended Nine months ended Condensed Consolidated Statements of Operations line item February 29, February 28, February 29, February 28, 2024 2023 2024 2023 Employee benefit plans: Amortization of net actuarial loss $ 0.4 $ 0.2 $ 1.0 $ 0.4 Other components of net periodic benefit (cost) Amortization of prior service (credit) loss (0.3) (0.3) (0.7) (0.7) Other components of net periodic benefit (cost) Less: Tax effect 0.1 0.1 0.2 0.2 Provision (benefit) for income taxes Total cost, net of tax $ 0.2 $ 0.0 $ 0.5 $ (0.1) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Feb. 29, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company determines the appropriate level in the fair value hierarchy for each fair value measurement of assets and liabilities carried at fair value on a recurring basis in the Company’s financial statements. The fair value hierarchy prioritizes the inputs, which refer to assumptions that market participants would use in pricing an asset or liability, based upon the highest and best use, into three levels as follows: • Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. • Level 2 Observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability and inputs derived principally from or corroborated by observable market data. • Level 3 Unobservable inputs in which there is little or no market data available, which are significant to the fair value measurement and require the Company to develop its own assumptions. The Company’s financial assets and liabilities measured at fair value consisted of cash and cash equivalents, debt and foreign currency forward contracts. Cash and cash equivalents are comprised of bank deposits and short-term investments, such as money market funds, the fair value of which is based on quoted market prices, a Level 1 fair value measure. The Company employs Level 2 fair value measurements for the disclosure of the fair value of its various lines of credit and long term debt. The fair value of the Company's debt approximates the carrying value for all periods presented. The fair values of foreign currency forward contracts, used by the Company to manage the impact of foreign exchange rate changes, are based on quotations from financial institutions, a Level 2 fair value measure. Non-financial assets for which the Company employs fair value measures on a non-recurring basis include: • Long-lived assets, including held for sale • Operating lease right-of-use (ROU) assets • Investments • Assets acquired in a business combination • Impairment assessment of goodwill and intangible assets Level 2 and Level 3 inputs are employed by the Company in the fair value measurement of these assets. For the fair value measurements employed by the Company for certain property, plant and equipment, investments and prepublication assets, the Company assessed future expected cash flows attributable to these assets. See Note 9, Investments, for a more complete description of the fair value measurements employed. For the fair value measurements employed by the Company for certain acquired intangible assets, the Company utilized internally-developed discounted cash flow forecasts. See Note 7, Acquisitions, for further details regarding the acquired assets and fair value measurements employed. |
Income Taxes and Other Taxes
Income Taxes and Other Taxes | 9 Months Ended |
Feb. 29, 2024 | |
Income Tax And Non Income Tax Disclosure [Abstract] | |
Income Taxes and Other Taxes | INCOME TAXES AND OTHER TAXES Income Taxes In calculating the provision for income taxes on an interim basis, the Company uses an estimate of the annual effective tax rate based upon currently known facts and circumstances and applies that rate to its year-to-date earnings or losses. The Company’s effective tax rate is based on expected income and statutory tax rates and takes into consideration permanent differences between financial statement and tax return income applicable to the Company in the various jurisdictions in which the Company operates. The effect of discrete items, such as changes in estimates, changes in rates or tax status, and unusual or infrequently occurring events, is recognized in the interim period in which the discrete item occurs. The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained or as the result of new judicial interpretations or regulatory or tax law changes. The Company's interim effective tax rate, inclusive of discrete items, for the three and nine month periods ended February 29, 2024 was 23.4% and 23.5%, respectively, compared to 26.3% and 36.3%, respectively, for the prior fiscal year period. The interim effective tax rate for the nine months ended February 29, 2024 varies from the statutory rate primarily due to state & local income tax. The Company, including its domestic subsidiaries, files a consolidated U.S. income tax return, and also files tax returns in various states and other local jurisdictions. Also, certain subsidiaries of the Company file income tax returns in foreign jurisdictions. The Company is routinely audited by various tax authorities. The Company was previously under audit for the fiscal 2015 through fiscal 2020 tax years and the examination was completed in fiscal 2023 with no impact to the financial results. During the third quarter of fiscal 2023, the Company received a federal tax refund of $9.8, inclusive of interest, which was released due to the completion of the IRS examination. The fiscal 2021 and fiscal 2022 tax years remain subject to audit. Non-income Taxes The Company is subject to tax examinations for sales-based taxes. A number of these examinations are ongoing and, in certain cases, have resulted in assessments from taxing authorities. The Company assesses sales tax contingencies for each jurisdiction in which it operates, considering all relevant facts including statutes, regulations, case law and experience. Where a sales tax liability with respect to a jurisdiction is probable and can be reliably estimated for such jurisdiction, the Company has made accruals for these matters which are reflected in the Company’s Condensed Consolidated Financial Statements. These amounts are included in Selling, general and administrative expenses. Future developments relating to the foregoing could result in adjustments being made to these accruals. |
Derivatives and Hedging
Derivatives and Hedging | 9 Months Ended |
Feb. 29, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | DERIVATIVES AND HEDGING The Company enters into foreign currency derivative contracts to economically hedge the exposure to foreign currency fluctuations associated with the forecasted purchase of inventory, the foreign exchange risk associated with certain receivables denominated in foreign currencies and certain future commitments for foreign expenditures. These derivative contracts are economic hedges and are not designated as cash flow hedges. |
Other Accrued Expenses
Other Accrued Expenses | 9 Months Ended |
Feb. 29, 2024 | |
Other Accrued Expenses Disclosure [Abstract] | |
Other Accrued Expenses | OTHER ACCRUED EXPENSES Other accrued expenses consisted of the following as of the dates indicated: February 29, 2024 May 31, 2023 February 28, 2023 Accrued payroll, payroll taxes and benefits $ 32.7 $ 29.2 $ 31.6 Accrued bonus and commissions 18.1 31.2 21.8 Returns liability 38.3 34.9 44.8 Accrued other taxes 19.9 24.8 20.5 Accrued advertising and promotions 7.9 7.3 8.8 Other accrued expenses 39.8 41.5 36.4 Total accrued expenses $ 156.7 $ 168.9 $ 163.9 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Feb. 29, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On March 11, 2024, the Company signed a definitive agreement to invest in 9 Story Media Group ("9 Story"), a leading creator, producer and distributor of premium animated and live-action children's content. Under the terms of the definitive agreement with 9 Story, Scholastic will acquire 100% of the economic interests and a minority of voting rights in 9 Story for approximately $186 million, subject to customary purchase price adjustments. The investment has been approved by both companies' boards of directors and the shareholders of 9 Story. Subject to receipt of a satisfactory opinion by the Minister of Canadian Heritage and other customary closing conditions, the transaction is expected to close in the first quarter of fiscal 2025. On March 20, 2024, the Board declared a quarterly cash dividend of $0.20 per share on the Company’s Class A and Common Stock for the fourth quarter of fiscal 2024. The dividend is payable on June 17, 2024 to shareholders of record as of the close of business on April 30, 2024. The Board also authorized an increase of $54.6 for Common share repurchases under the Company's share buy-back program, resulting in a current Board authorization of $100.0, which includes $46.0 remaining from the previous Board authorization less share repurchases of $0.6 subsequent to February 29, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (loss) | $ (26.5) | $ (19.2) | $ (23.8) | $ 10.6 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Feb. 29, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Feb. 29, 2024 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation The accompanying condensed consolidated interim financial statements (referred to as the “Financial Statements” herein) include the accounts of Scholastic Corporation (the “Corporation”) and all wholly-owned and majority-owned subsidiaries (collectively, “Scholastic” or the “Company”). Intercompany transactions are eliminated in consolidation. |
Noncontrolling Interest | Noncontrolling Interest On June 1, 2023, the Company acquired the remaining shares of Make Believe Ideas Limited ("MBI"), a UK-based children's book publishing company, which represented a 5.0% noncontrolling interest, increasing the Company's total ownership from 95.0% to 100%. Prior to June 1, 2023, the founder and chief executive officer of MBI retained a 5.0% noncontrolling ownership interest in MBI. The Company fully consolidated MBI as of the acquisition date and the 5.0% noncontrolling interest was classified within stockholder's equity. |
Interim Financial Statements | Interim Financial Statements |
Seasonality | Seasonality The Company’s Children’s Book Publishing and Distribution school-based book club and book fair channels and most of its Education Solutions |
Use of estimates | Use of estimates The preparation of these Financial Statements involves the use of estimates and assumptions by management, which affects the amounts reported in the Financial Statements and accompanying notes. The Company bases its estimates on historical experience, current business factors, and various other assumptions believed to be reasonable under the circumstances, all of which are necessary, in order to form a basis for determining the carrying values of certain assets and liabilities. Actual results may differ from those estimates and assumptions. On an on-going basis, the Company evaluates the adequacy of its reserves and the estimates used in these calculations, including, but not limited to: • Accounts receivable allowance for credit losses • Pension and postretirement benefit plans • Uncertain tax positions • The timing and amount of future income taxes and related deductions • Inventory reserves • Cost of goods sold from book fair operations during interim periods based on estimated gross profit rates • Sales tax contingencies • Royalty advance reserves and royalty expense accruals • Impairment testing for goodwill, intangible and other long-lived assets and investments • Assets and liabilities acquired in business combinations • Variable consideration related to anticipated returns • Allocation of transaction price to contractual performance obligations |
New Accounting Pronouncements | New Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, “Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures.” This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This ASU will be effective for the Company's fiscal year 2025, and interim periods starting in fiscal year 2026. Early adoption is permitted. The amendments in this ASU are to be applied retrospectively to all prior periods presented in the financial statements. The Company is currently assessing the impact of the disclosure requirements on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740)." The amendments in this update enhance the transparency and decision usefulness of income tax disclosures to provide information to better assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The amendments in this ASU require more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This ASU will be effective for the Company's fiscal year 2026. Early adoption is permitted. The amendments are to be applied prospectively, but may be applied retrospectively to all prior periods presented in the financial statements. The Company is currently assessing the impact of the disclosure requirements on its consolidated financial statements. Refer to the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2023, for more information on current applicable authoritative guidance and its impact on the Company's financial statements. |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Feb. 29, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents the Company’s segment revenues disaggregated by region and domestic channel: Three months ended Nine months ended February 29, February 28, February 29, February 28, 2024 2023 2024 2023 Book Clubs - U.S. $ 13.3 $ 27.7 $ 48.3 $ 91.6 Book Fairs - U.S. 102.7 103.5 372.1 372.6 Trade - U.S. 70.0 64.8 233.5 248.9 Trade - International (1) 7.6 8.0 35.3 33.9 Total Children's Book Publishing and Distribution $ 193.6 $ 204.0 $ 689.2 $ 747.0 Education Solutions - U.S. $ 68.5 $ 70.0 $ 215.5 $ 223.2 Total Education Solutions $ 68.5 $ 70.0 $ 215.5 $ 223.2 International - Major Markets (2) $ 48.0 $ 41.3 $ 171.2 $ 171.8 International - Other Markets (3) 11.1 9.6 31.6 33.7 Total International $ 59.1 $ 50.9 $ 202.8 $ 205.5 Total (4) $ 321.2 $ 324.9 $ 1,107.5 $ 1,175.7 (1) Primarily includes foreign rights and certain product sales in the UK. (2) Includes Canada, UK, Australia and New Zealand. (3) Primarily includes markets in Asia. (4) Total revenues of $323.7 and $1,114.8 for the three and nine months ended February 29, 2024, respectively, included rental income of $2.5 and $7.3, respectively, related to leased space in the Company's headquarters which was not allocated to a segment. Rental income of $1.5 and $4.6 for the three and nine months ended February 28, 2023, respectively, was recognized as a reduction to Selling, general and administrative expenses. |
Deferred Revenue, by Arrangement, Disclosure | The following table presents further detail regarding the Company's contract liabilities as of the dates indicated: February 29, 2024 May 31, 2023 February 28, 2023 Book fairs incentive credits $ 109.9 $ 110.8 $ 105.2 Magazines+ subscriptions 30.5 5.0 30.7 U.S. digital subscriptions 16.8 22.8 25.2 U.S. education-related (1) 10.6 9.8 13.5 Media-related 0.1 0.0 4.4 Stored value programs 20.1 12.4 14.8 Other (2) 12.1 8.3 9.2 Total contract liabilities $ 200.1 $ 169.1 $ 203.0 (1) Primarily includes contract liabilities related to contracts with school districts and professional services. (2) Primarily includes contract liabilities related to various international products and services. |
Accounts Receivable, Allowance for Credit Loss | The following table presents the change in the allowance for credit losses, which is included in Accounts Receivable, net on the Condensed Consolidated Balance Sheets: Allowance for Credit Losses Balance as of June 1, 2023 $ 16.7 Provision (benefit) 0.6 Write-offs and other (0.2) Balance as of August 31, 2023 $ 17.1 Provision (benefit) 2.5 Write-offs and other (3.4) Balance as of November 30, 2023 $ 16.2 Provision (benefit) 0.9 Write-offs and other (1.5) Balance as of February 29, 2024 $ 15.6 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Feb. 29, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table sets forth the Company's revenue and operating income (loss) by segment for the periods indicated: Three months ended Nine months ended February 29, February 28, February 29, February 28, 2024 2023 2024 2023 Revenues Children's Book Publishing and Distribution $ 193.6 $ 204.0 $ 689.2 $ 747.0 Education Solutions 68.5 70.0 215.5 223.2 International 59.1 50.9 202.8 205.5 Total (1) $ 321.2 $ 324.9 $ 1,107.5 $ 1,175.7 Operating income (loss) Children's Book Publishing and Distribution $ (0.8) $ 1.9 $ 68.5 $ 85.0 Education Solutions (0.8) 0.7 (13.7) 3.4 International (5.9) (9.0) (6.1) (5.8) Overhead (2) (27.4) (21.3) (81.4) (68.3) Total $ (34.9) $ (27.7) $ (32.7) $ 14.3 (1) Total revenues of $323.7 and $1,114.8 for the three and nine months ended February 29, 2024, respectively, included rental income of $2.5 and $7.3, respectively, related to leased space in the Company's headquarters which was not allocated to a segment. Rental income of $1.5 and $4.6 for the three and nine months ended February 28, 2023, respectively, was recognized as a reduction to Selling, general and administrative expenses. (2) Overhead includes all domestic corporate amounts not allocated to segments, including expenses and costs related to the management of corporate assets. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Feb. 29, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes the carrying value of the Company's debt as of the dates indicated: February 29, 2024 May 31, 2023 February 28, 2023 US Revolving Credit Agreement $ 25.0 $ — $ — Unsecured lines of credit 6.5 6.0 5.2 Total debt $ 31.5 $ 6.0 $ 5.2 Less lines of credit, short-term debt and current portion of long-term debt (31.5) (6.0) (5.2) Total long-term debt $ — $ — $ — |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Feb. 29, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share | The following table summarizes the reconciliation of the numerators and denominators for the basic and diluted earnings (loss) per share computation for the periods indicated: Three months ended Nine months ended February 29, February 28, February 29, February 28, 2024 2023 2024 2023 Net income (loss) attributable to Class A and Common Stockholders $ (26.5) $ (19.2) $ (23.8) $ 10.6 Weighted average Shares of Class A Stock and Common Stock outstanding for basic earnings (loss) per share (in millions) 29.1 33.7 29.9 34.2 Dilutive effect of Class A Stock and Common Stock potentially issuable pursuant to stock-based compensation plans (in millions) — — — 0.9 Adjusted weighted average Shares of Class A Stock and Common Stock outstanding for diluted earnings (loss) per share (in millions) 29.1 33.7 29.9 35.1 Earnings (loss) per share of Class A Stock and Common Stock: Basic $ (0.91) $ (0.57) $ (0.80) $ 0.31 Diluted $ (0.91) $ (0.57) $ (0.80) $ 0.30 Anti-dilutive shares pursuant to stock-based compensation plans 1.1 0.7 0.7 0.6 |
Schedule of stock option activity | The following table sets forth options outstanding pursuant to stock-based compensation plans as of the dates indicated: February 29, 2024 February 28, 2023 Options outstanding pursuant to stock-based compensation plans (in millions) 3.0 3.3 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 9 Months Ended |
Feb. 29, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Activity in Goodwill for the Periods Indicated | The following table summarizes the activity in Goodwill for the periods indicated: February 29, 2024 May 31, 2023 February 28, 2023 Gross beginning balance $ 172.3 $ 164.9 $ 164.9 Accumulated impairment (39.6) (39.6) (39.6) Beginning balance $ 132.7 $ 125.3 $ 125.3 Additions — 7.6 7.0 Foreign currency translation 0.1 (0.2) (0.4) Ending balance $ 132.8 $ 132.7 $ 131.9 |
Summary of Activity in Total Other Intangibles for the Periods Indicated | The following table summarizes the activity in other intangibles included in Other assets and deferred charges on the Company’s Financial Statements for the periods indicated: February 29, 2024 May 31, 2023 February 28, 2023 Beginning balance - Other intangibles subject to amortization $ 7.8 $ 6.0 $ 6.0 Additions 6.0 4.1 4.1 Amortization expense (1.9) (2.2) (1.7) Foreign currency translation 0.0 (0.1) (0.1) Total other intangibles subject to amortization, net of accumulated amortization of $38.4, $36.5 and $36.0, respectively $ 11.9 $ 7.8 $ 8.3 Total other intangibles not subject to amortization $ 2.1 $ 2.1 $ 2.1 Total other intangibles $ 14.0 $ 9.9 $ 10.4 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Feb. 29, 2024 | |
Equity Method And Cost Method Investments [Abstract] | |
Investments | The following table summarizes the Company’s investments as of the dates indicated: February 29, 2024 May 31, 2023 February 28, 2023 Segment Equity method investments $ 30.8 $ 31.6 $ 31.1 International Other equity investments 6.0 6.0 6.0 Children's Book Publishing & Distribution Total Investments $ 36.8 $ 37.6 $ 37.1 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Feb. 29, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The following table sets forth the components of net periodic benefit cost for the periods indicated under the Company’s defined benefit pension plan of Scholastic Ltd., an indirect subsidiary of Scholastic Corporation located in the United Kingdom (the “UK Pension Plan”), and the postretirement benefits plan, consisting of certain healthcare and life insurance benefits provided by the Company to its eligible retired United States-based employees (the “US Postretirement Benefits”), for the periods indicated: UK Pension Plan US Postretirement Benefits Three months ended Three months ended February 29, February 28, February 29, February 28, 2024 2023 2024 2023 Components of net periodic benefit cost: Interest cost $ 0.3 $ 0.3 $ 0.1 $ 0.1 Expected return on assets (0.2) (0.4) — — Amortization of prior service (credit) loss 0.0 0.0 (0.3) (0.3) Amortization of net actuarial (gain) loss 0.4 0.2 0.0 — Total $ 0.5 $ 0.1 $ (0.2) $ (0.2) UK Pension Plan US Postretirement Benefits Nine months ended Nine months ended February 29, February 28, February 29, February 28, 2024 2023 2024 2023 Components of net periodic benefit cost: Interest cost $ 1.0 $ 0.8 $ 0.3 $ 0.3 Expected return on assets (0.8) (1.0) — — Amortization of prior service (credit) loss 0.0 0.0 (0.7) (0.7) Amortization of net actuarial (gain) loss 1.0 0.4 0.0 — Total $ 1.2 $ 0.2 $ (0.4) $ (0.4) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Feb. 29, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The following table summarizes stock-based compensation expense included in Selling, general and administrative expenses for the periods indicated: Three months ended Nine months ended February 29, February 28, February 29, February 28, 2024 2023 2024 2023 Stock option expense $ 0.6 $ 0.7 $ 3.6 $ 3.7 Restricted stock unit expense 1.6 1.4 4.5 3.7 Management stock purchase plan 0.0 0.1 0.3 0.5 Employee stock purchase plan 0.1 0.1 0.3 0.3 Total stock-based compensation expense $ 2.3 $ 2.3 $ 8.7 $ 8.2 |
Schedule of Shares Issued Pursuant to Share-based Compensation Activity | The following table sets forth Common Stock issued pursuant to stock-based compensation plans for the periods indicated: Three months ended Nine months ended February 29, February 28, February 29, February 28, 2024 2023 2024 2023 Common Stock issued pursuant to stock-based compensation plans (in millions) 0.1 0.1 0.5 0.7 |
Treasury Stock (Tables)
Treasury Stock (Tables) | 9 Months Ended |
Feb. 29, 2024 | |
Equity, Attributable to Parent [Abstract] | |
Tabular Disclosure of an Entity's Treasury Stock | The table below represents the Board authorization at the dates indicated: Authorization Amount July 2023 $ 100.0 December 2023 66.2 Total current Board authorizations $ 166.2 Less repurchases made under these authorizations $ (120.2) Remaining Board authorization at February 29, 2024 $ 46.0 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Feb. 29, 2024 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables summarize the activity in Accumulated other comprehensive income (loss), net of tax, by component, for the periods indicated: Three months ended February 29, 2024 Foreign currency translation adjustments Retirement benefit plans Total Beginning balance at December 1, 2023 $ (48.0) $ (5.5) $ (53.5) Other comprehensive income (loss) before reclassifications (0.4) — (0.4) Less amount reclassified from Accumulated other comprehensive income (loss): Amortization of net actuarial loss (net of tax of $0.0) — 0.4 0.4 Amortization of prior service (credit) cost (net of tax of $0.1) — (0.2) (0.2) Other comprehensive income (loss) (0.4) 0.2 (0.2) Ending balance at February 29, 2024 $ (48.4) $ (5.3) $ (53.7) Three months ended February 28, 2023 Foreign currency translation adjustments Retirement benefit plans Total Beginning balance at December 1, 2022 $ (51.2) $ (0.9) $ (52.1) Other comprehensive income (loss) before reclassifications (1.0) — (1.0) Less amount reclassified from Accumulated other comprehensive income (loss): Amortization of net actuarial loss (net of tax of $0.0) — 0.2 0.2 Amortization of prior service (credit) cost (net of tax of $0.1) — (0.2) (0.2) Other comprehensive income (loss) (1.0) 0.0 (1.0) Ending balance at February 28, 2023 $ (52.2) $ (0.9) $ (53.1) Nine months ended February 29, 2024 Foreign currency translation adjustments Retirement benefit plans Total Beginning balance at June 1, 2023 $ (50.0) $ (5.8) $ (55.8) Other comprehensive income (loss) before reclassifications 1.6 — 1.6 Less amount reclassified from Accumulated other comprehensive income (loss): Amortization of net actuarial (gain) loss (net of tax of $0.0) — 1.0 1.0 Amortization of prior service (credit) cost (net of tax of $0.2) — (0.5) (0.5) Other comprehensive income (loss) 1.6 0.5 2.1 Ending balance at February 29, 2024 $ (48.4) $ (5.3) $ (53.7) Nine months ended February 28, 2023 Foreign currency translation adjustments Retirement benefit plans Total Beginning balance at June 1, 2022 $ (44.6) $ (0.8) $ (45.4) Other comprehensive income (loss) before reclassifications (7.6) — (7.6) Less amount reclassified from Accumulated other comprehensive income (loss): Amortization of net actuarial (gain) loss (net of tax of $0.0) — 0.4 0.4 Amortization of prior service (credit) cost (net of tax of $0.2) — (0.5) (0.5) Other comprehensive income (loss) (7.6) (0.1) (7.7) Ending balance at February 28, 2023 $ (52.2) $ (0.9) $ (53.1) |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the impact on earnings of reclassifications out of Accumulated other comprehensive income (loss) for the periods indicated: Three months ended Nine months ended Condensed Consolidated Statements of Operations line item February 29, February 28, February 29, February 28, 2024 2023 2024 2023 Employee benefit plans: Amortization of net actuarial loss $ 0.4 $ 0.2 $ 1.0 $ 0.4 Other components of net periodic benefit (cost) Amortization of prior service (credit) loss (0.3) (0.3) (0.7) (0.7) Other components of net periodic benefit (cost) Less: Tax effect 0.1 0.1 0.2 0.2 Provision (benefit) for income taxes Total cost, net of tax $ 0.2 $ 0.0 $ 0.5 $ (0.1) |
Other Accrued Expenses (Tables)
Other Accrued Expenses (Tables) | 9 Months Ended |
Feb. 29, 2024 | |
Other Accrued Expenses Disclosure [Abstract] | |
Schedule of Other Accrued Expenses | Other accrued expenses consisted of the following as of the dates indicated: February 29, 2024 May 31, 2023 February 28, 2023 Accrued payroll, payroll taxes and benefits $ 32.7 $ 29.2 $ 31.6 Accrued bonus and commissions 18.1 31.2 21.8 Returns liability 38.3 34.9 44.8 Accrued other taxes 19.9 24.8 20.5 Accrued advertising and promotions 7.9 7.3 8.8 Other accrued expenses 39.8 41.5 36.4 Total accrued expenses $ 156.7 $ 168.9 $ 163.9 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - Make Believe Ideas Limited (MBI) | Jun. 01, 2023 | May 31, 2023 |
Scholastic, Inc. | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Ownership percentage | 100% | 95% |
Founder and CEO of MBI | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Ownership percentage by founder and CEO of MBI | 5% |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 323.7 | $ 324.9 | $ 1,114.8 | $ 1,175.7 |
Total Revenues excluding rental income | 321.2 | 324.9 | 1,107.5 | 1,175.7 |
Lease Income | 2.5 | 1.5 | 7.3 | 4.6 |
Children's Book Publishing & Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 193.6 | 204 | 689.2 | 747 |
Children's Book Publishing & Distribution | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 193.6 | 204 | 689.2 | 747 |
Children's Book Publishing & Distribution | Book Clubs - U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 13.3 | 27.7 | 48.3 | 91.6 |
Children's Book Publishing & Distribution | Book Fairs - U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 102.7 | 103.5 | 372.1 | 372.6 |
Children's Book Publishing & Distribution | Trade - U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 70 | 64.8 | 233.5 | 248.9 |
Children's Book Publishing & Distribution | Trade - International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7.6 | 8 | 35.3 | 33.9 |
Education | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 68.5 | 70 | 215.5 | 223.2 |
Education | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 68.5 | 70 | 215.5 | 223.2 |
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 59.1 | 50.9 | 202.8 | 205.5 |
International | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 59.1 | 50.9 | 202.8 | 205.5 |
International | Major Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 48 | 41.3 | 171.2 | 171.8 |
International | Other Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 11.1 | $ 9.6 | $ 31.6 | $ 33.7 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | May 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |||||
Deferred revenue | $ 193.8 | $ 203 | $ 193.8 | $ 203 | $ 169.1 |
Contract with customer, liability, noncurrent | 6.3 | 6.3 | |||
Deferred revenue | 200.1 | 203 | 200.1 | 203 | 169.1 |
Returns liability | 38.3 | 44.8 | 38.3 | 44.8 | 34.9 |
Return asset | 4.4 | 3.5 | 4.4 | 3.5 | $ 4.7 |
Contract with Customer, Liability, Revenue Recognized | $ 33 | $ 45.9 | $ 113.7 | $ 126.2 |
Revenues - Deferred Revenue (De
Revenues - Deferred Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | May 31, 2023 | |
Deferred Revenue Arrangement [Line Items] | |||||
Deferred revenue | $ 200.1 | $ 203 | $ 200.1 | $ 203 | $ 169.1 |
Contract with Customer, Liability, Revenue Recognized | 33 | 45.9 | 113.7 | 126.2 | |
Book fairs incentive credits | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Deferred revenue | 109.9 | 105.2 | 109.9 | 105.2 | 110.8 |
Magazines+ subscriptions | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Deferred revenue | 30.5 | 30.7 | 30.5 | 30.7 | 5 |
U.S. digital subscriptions | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Deferred revenue | 16.8 | 25.2 | 16.8 | 25.2 | 22.8 |
U.S. Education-related | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Deferred revenue | 10.6 | 13.5 | 10.6 | 13.5 | 9.8 |
Media-related | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Deferred revenue | 0.1 | 4.4 | 0.1 | 4.4 | 0 |
Stored value programs | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Deferred revenue | 20.1 | 14.8 | 20.1 | 14.8 | 12.4 |
Other | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Deferred revenue | $ 12.1 | $ 9.2 | $ 12.1 | $ 9.2 | $ 8.3 |
Revenues - Allowance for Credit
Revenues - Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Feb. 29, 2024 | Nov. 30, 2023 | Aug. 31, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance as of June 1, 2023 | $ 16.2 | $ 17.1 | $ 16.7 | $ 16.7 | |
Provision for losses on accounts receivable | 0.9 | 2.5 | 0.6 | 4 | $ 1.8 |
Write-offs and other | (1.5) | (3.4) | (0.2) | ||
Balance as of August 31, 2023 | $ 15.6 | $ 16.2 | $ 17.1 | $ 15.6 |
Segment Information - Schedule
Segment Information - Schedule of segment reporting information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 USD ($) | Feb. 28, 2023 USD ($) | Feb. 29, 2024 USD ($) segment | Feb. 28, 2023 USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 3 | |||
Revenues | $ 323.7 | $ 324.9 | $ 1,114.8 | $ 1,175.7 |
Total Revenues excluding rental income | 321.2 | 324.9 | 1,107.5 | 1,175.7 |
Segment operating income (loss) | (34.9) | (27.7) | $ (32.7) | 14.3 |
Children's Book Publishing & Distribution | ||||
Segment Reporting Information [Line Items] | ||||
Number of operating segments | segment | 2 | |||
Revenues | 193.6 | 204 | $ 689.2 | 747 |
Education | ||||
Segment Reporting Information [Line Items] | ||||
Number of operating segments | segment | 1 | |||
Revenues | 68.5 | 70 | $ 215.5 | 223.2 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Number of operating segments | segment | 3 | |||
Revenues | 59.1 | 50.9 | $ 202.8 | 205.5 |
Operating Segments | Children's Book Publishing & Distribution | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 193.6 | 204 | 689.2 | 747 |
Segment operating income (loss) | (0.8) | 1.9 | 68.5 | 85 |
Operating Segments | Education | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 68.5 | 70 | 215.5 | 223.2 |
Segment operating income (loss) | (0.8) | 0.7 | (13.7) | 3.4 |
Operating Segments | International | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 59.1 | 50.9 | 202.8 | 205.5 |
Segment operating income (loss) | (5.9) | (9) | (6.1) | (5.8) |
Operating Segments | Overhead | ||||
Segment Reporting Information [Line Items] | ||||
Segment operating income (loss) | $ (27.4) | $ (21.3) | $ (81.4) | $ (68.3) |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) | Feb. 29, 2024 | May 31, 2023 | Feb. 28, 2023 |
Debt Instrument [Line Items] | |||
Total Debt | $ 31,500,000 | $ 6,000,000 | $ 5,200,000 |
Less lines of credit, short-term debt and current portion of long-term debt | (31,500,000) | (6,000,000) | (5,200,000) |
Total long-term debt | 0 | 0 | 0 |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Total Debt | 25,000,000 | 0 | 0 |
Line of Credit | Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Total Debt | $ 6,500,000 | $ 6,000,000 | $ 5,200,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 9 Months Ended | |||
Feb. 28, 2023 USD ($) | Oct. 27, 2021 USD ($) | Feb. 29, 2024 USD ($) | May 31, 2023 USD ($) | |
Debt (Details) [Line Items] | ||||
Debt | $ 5,200,000 | $ 31,500,000 | $ 6,000,000 | |
Standby letters of credit | 3,800,000 | |||
Domestic Line of Credit | ||||
Debt (Details) [Line Items] | ||||
Standby letters of credit | (3,400,000) | |||
Revolving Credit Facility | ||||
Debt (Details) [Line Items] | ||||
Debt | $ 0 | $ 25,000,000 | 0 | |
Borrowing rate | 6.77% | |||
Standby letters of credit | $ 400,000 | |||
Loan Agreement | ||||
Debt (Details) [Line Items] | ||||
Maximum borrowing capacity | $ 300,000,000 | |||
Commitment fee percentage | 0.20% | |||
Consolidated net leverage ratio, maximum | 2.75 | |||
Increase in borrowing capacity available under accordion feature | $ 150,000,000 | |||
Debt Instrument, Term | 5 years | |||
Loan Agreement | Minimum | ||||
Debt (Details) [Line Items] | ||||
Commitment fee percentage | 0.20% | |||
Loan Agreement | Maximum | ||||
Debt (Details) [Line Items] | ||||
Commitment fee percentage | 0.30% | |||
Loan Agreement | Swingline Facility | ||||
Debt (Details) [Line Items] | ||||
Maximum borrowing capacity | $ 15,000,000 | |||
Loan Agreement | Revolving Credit Facility | ||||
Debt (Details) [Line Items] | ||||
Maximum borrowing capacity | $ 50,000,000 | |||
Loan Agreement | Eurodollar | ||||
Debt (Details) [Line Items] | ||||
Variable rate (percentage) | 1% | |||
Loan Agreement | Base Rate | ||||
Debt (Details) [Line Items] | ||||
Variable rate (percentage) | 0.35% | |||
Loan Agreement | Base Rate | Minimum | ||||
Debt (Details) [Line Items] | ||||
Variable rate (percentage) | 0.35% | |||
Loan Agreement | Base Rate | Maximum | ||||
Debt (Details) [Line Items] | ||||
Variable rate (percentage) | 0.75% | |||
Loan Agreement | Federal Funds Rate | ||||
Debt (Details) [Line Items] | ||||
Variable rate (percentage) | 0.50% | |||
Loan Agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||
Debt (Details) [Line Items] | ||||
Variable rate (percentage) | 0.10% | 1.35% | ||
Loan Agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | ||||
Debt (Details) [Line Items] | ||||
Variable rate (percentage) | 1.35% | |||
Loan Agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | ||||
Debt (Details) [Line Items] | ||||
Variable rate (percentage) | 1.75% | |||
Unsecured Debt | Domestic Line of Credit | ||||
Debt (Details) [Line Items] | ||||
Borrowing capacity | $ 10,000,000 | |||
Short-term debt | $ 0 | 0 | 0 | |
Remaining borrowing capacity | $ 6,600,000 | |||
Expiration period (in days) | 365 days | |||
Unsecured Debt | Line of Credit | ||||
Debt (Details) [Line Items] | ||||
Borrowing capacity | $ 23,600,000 | |||
Debt | $ 5,200,000 | 6,500,000 | $ 6,000,000 | |
Remaining borrowing capacity | $ 17,100,000 | |||
Weighted average interest rate (percentage) | 5% | 3.80% | 4.90% | |
Expiration period (in days) | 364 days |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended |
Feb. 28, 2023 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Insurance recoveries | $ 5 |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income (loss) attributable to Class A and Common Shares | $ (26.5) | $ (19.2) | $ (23.8) | $ 10.6 |
Weighted average Shares of Class A Stock and Common Stock outstanding for basic earnings (loss) per share | 29.1 | 33.7 | 29.9 | 34.2 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 | 0 | 0.9 |
Weighted Average Number of Shares Outstanding, Diluted | 29.1 | 33.7 | 29.9 | 35.1 |
Earnings (loss) per share of Class A Stock and Common Stock: | ||||
Basic (in Dollars per share) | $ (0.91) | $ (0.57) | $ (0.80) | $ 0.31 |
Diluted (in Dollars per share) | $ (0.91) | $ (0.57) | $ (0.80) | $ 0.30 |
Antidilutive shares excluded from calculation of earnings per share | 1.1 | 0.7 | 0.7 | 0.6 |
Earnings (Loss) Per Share - S_2
Earnings (Loss) Per Share - Schedule of Options Outstanding (Details) - shares shares in Millions | Feb. 29, 2024 | Feb. 28, 2023 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Options outstanding pursuant to stock-based compensation plans (in millions) | 3 | 3.3 |
Earnings (Loss) Per Share - Nar
Earnings (Loss) Per Share - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Earnings Per Share [Abstract] | ||||
Antidilutive shares excluded from calculation of earnings per share | 1.1 | 0.7 | 0.7 | 0.6 |
Remaining authorized stock repurchase amount | $ 46 | $ 46 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Schedule of activity in goodwill (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | May 31, 2023 | May 31, 2022 | |
Goodwill [Roll Forward] | ||||
Gross goodwill | $ 172.3 | $ 164.9 | ||
Goodwill, Impaired, Accumulated Impairment Loss | (39.6) | (39.6) | ||
Goodwill | $ 132.8 | $ 131.9 | 132.7 | $ 125.3 |
Additions | 0 | 7 | 7.6 | |
Foreign currency translation | $ 0.1 | $ (0.4) | $ (0.2) |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 01, 2022 | Feb. 29, 2024 | Nov. 30, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | May 31, 2023 | |
Goodwill [Line Items] | ||||||
Additions | $ 0 | $ 7,000,000 | $ 7,600,000 | |||
Goodwill, Impairment Loss | 0 | 0 | 0 | |||
Amortizable intangible assets acquired | $ 200,000 | $ 5,800,000 | $ 6,000,000 | 4,100,000 | 4,100,000 | |
Useful life | 6 years | 6 years | ||||
Impairment of intangible assets (excluding goodwill) | $ 0 | $ 0 | $ 0 | |||
Learning Ovations, Inc. | ||||||
Goodwill [Line Items] | ||||||
Amortizable intangible assets acquired | $ 4,100,000 | |||||
Useful life | 7 years | 7 years | ||||
Educational Program | ||||||
Goodwill [Line Items] | ||||||
Useful life | 8 years | 8 years | ||||
Children's Book Publishing & Distribution | ||||||
Goodwill [Line Items] | ||||||
Useful life | 5 years | 5 years | ||||
Education | ||||||
Goodwill [Line Items] | ||||||
Additions | 7,600,000 | |||||
Education | Learning Ovations, Inc. | ||||||
Goodwill [Line Items] | ||||||
Additions | $ 7,600,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles - Schedule of other intangible assets subject to amortization (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Feb. 29, 2024 | Nov. 30, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | May 31, 2023 | |
Finite-lived Intangible Assets [Roll Forward] | |||||
Beginning balance other intangibles subject to amortization | $ 7.8 | $ 6 | $ 6 | ||
Additions | $ 0.2 | $ 5.8 | 6 | 4.1 | 4.1 |
Amortization expense | (1.9) | (1.7) | (2.2) | ||
Foreign currency translation | 0 | (0.1) | (0.1) | ||
Total other intangibles subject to amortization, net of accumulated amortization of $24.8, $24.1 and $22.5, respectively | 11.9 | 11.9 | 8.3 | 7.8 | |
Accumulated amortization of intangible assets | 38.4 | 38.4 | 36 | 36.5 | |
Total other intangibles not subject to amortization | 2.1 | 2.1 | 2.1 | 2.1 | |
Total other intangibles | $ 14 | $ 14 | $ 10.4 | $ 9.9 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 01, 2023 | Sep. 01, 2022 | Feb. 29, 2024 | Nov. 30, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | May 31, 2023 | |
Business Acquisition [Line Items] | |||||||
Other investment and acquisition-related payments | $ (8.5) | $ (10.7) | |||||
Additional paid-in capital | $ 603 | 603 | 630.6 | $ 632.2 | |||
Amortizable intangible assets acquired | $ 0.2 | $ 5.8 | 6 | 4.1 | 4.1 | ||
Additions | $ 0 | $ 7 | $ 7.6 | ||||
Education | |||||||
Business Acquisition [Line Items] | |||||||
Additions | $ 7.6 | ||||||
Learning Ovations, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Other investment and acquisition-related payments | 11.1 | ||||||
Amortizable intangible assets acquired | 4.1 | ||||||
Receivables, Fair Value Disclosure | $ 0.1 | ||||||
Business combination, discount rate | 0.175 | ||||||
Fair Value, Net Asset (Liability) | $ 3.6 | ||||||
Deferred Tax Liabilities, Tax Deferred Income | 0.6 | ||||||
Learning Ovations, Inc. | Education | |||||||
Business Acquisition [Line Items] | |||||||
Additions | $ 7.6 | ||||||
Make Believe Ideas Limited (MBI) | |||||||
Business Acquisition [Line Items] | |||||||
Other investment and acquisition-related payments | $ 2.1 | ||||||
Noncontrolling interest, equity, carrying amount | 1.6 | ||||||
Additional paid-in capital | $ 0.5 | ||||||
Scholastic, Inc. | Learning Ovations, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Ownership percentage | 100% | ||||||
Scholastic, Inc. | Make Believe Ideas Limited (MBI) | |||||||
Business Acquisition [Line Items] | |||||||
Ownership percentage | 100% | 95% |
Investments - Summary of the Co
Investments - Summary of the Company's Investments (Details) - USD ($) $ in Millions | Feb. 29, 2024 | May 31, 2023 | Feb. 28, 2023 |
Debt and Equity Securities, FV-NI [Line Items] | |||
Total Investments | $ 36.8 | $ 37.6 | $ 37.1 |
International | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Equity method investments | 30.8 | 31.6 | 31.1 |
Children's Book Publishing & Distribution | Other equity investments | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Total Investments | $ 6 | $ 6 | $ 6 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Debt and Equity Securities, FV-NI [Line Items] | ||||
Equity method investment, impairment | $ 0 | |||
Income from equity-method investments | $ 200,000 | $ 200,000 | 100,000 | $ 1,500,000 |
Proceeds from Dividends Received | $ 1,300,000 | $ 0 | $ 1,300,000 | $ 0 |
Children's Book Publishing & Distribution | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Equity method ownership percentage | 26.20% | 26.20% | ||
Financing and Production Company | Financing and Production Company | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Other equity percentage | 4.60% |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of net periodic costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Pension Plans | Foreign Plan | ||||
Components of net periodic benefit (credit) cost: | ||||
Interest cost | $ 300 | $ 300 | $ 1,000 | $ 800 |
Expected return on assets | (200) | (400) | (800) | (1,000) |
Net amortization of prior service credit | 0 | 0 | 0 | 0 |
Amortization of (gain) loss | 400 | 200 | 1,000 | 400 |
Net periodic benefit (credit) cost | 500 | 100 | 1,200 | 200 |
Post-Retirement Benefits | ||||
Components of net periodic benefit (credit) cost: | ||||
Interest cost | 100 | 100 | 300 | 300 |
Expected return on assets | 0 | 0 | 0 | 0 |
Net amortization of prior service credit | (300) | (300) | (700) | (700) |
Amortization of (gain) loss | 0 | 0 | 0 | 0 |
Net periodic benefit (credit) cost | $ (200) | $ (200) | $ (400) | $ (400) |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - Pension Plans - Foreign Plan - USD ($) $ in Millions | 9 Months Ended | |
Feb. 29, 2024 | May 31, 2024 | |
Employee Benefit Plans (Details) [Line Items] | ||
Pension contributions | $ 0.9 | |
Forecast | ||
Employee Benefit Plans (Details) [Line Items] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | $ 1.2 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Stock-Based Compensation (Details) - Schedule of stock-based compensation [Line Items] | ||||
Stock-based compensation expense | $ 2.3 | $ 2.3 | $ 8.7 | $ 8.2 |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 0.1 | 0.1 | 0.5 | 0.7 |
Stock option expense | ||||
Stock-Based Compensation (Details) - Schedule of stock-based compensation [Line Items] | ||||
Stock-based compensation expense | $ 0.6 | $ 0.7 | $ 3.6 | $ 3.7 |
Restricted stock unit expense | ||||
Stock-Based Compensation (Details) - Schedule of stock-based compensation [Line Items] | ||||
Stock-based compensation expense | 1.6 | 1.4 | 4.5 | 3.7 |
Management stock purchase plan | ||||
Stock-Based Compensation (Details) - Schedule of stock-based compensation [Line Items] | ||||
Stock-based compensation expense | 0 | 0.1 | 0.3 | 0.5 |
Employee stock purchase plan | ||||
Stock-Based Compensation (Details) - Schedule of stock-based compensation [Line Items] | ||||
Stock-based compensation expense | $ 0.1 | $ 0.1 | $ 0.3 | $ 0.3 |
Treasury Stock - Schedule of re
Treasury Stock - Schedule of repurchase of common stock (Details) - USD ($) $ in Millions | 3 Months Ended | 7 Months Ended | 9 Months Ended | |||||||
Feb. 29, 2024 | Nov. 30, 2023 | Aug. 31, 2023 | Feb. 28, 2023 | Nov. 30, 2022 | Aug. 31, 2022 | Feb. 29, 2024 | Feb. 29, 2024 | Dec. 13, 2023 | Jul. 19, 2023 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Authorized amount of stock to be repurchased | $ 166.2 | $ 166.2 | $ 166.2 | |||||||
Less repurchases made under these authorizations | (54.2) | $ (52.3) | $ (36.2) | $ (46.9) | $ (26) | $ (5.1) | (142.7) | |||
Remaining Board authorization at February 29, 2024 | 46 | 46 | 46 | |||||||
Board Authorized 2023 Share Repurchase Program | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Authorized amount of stock to be repurchased | $ 100 | |||||||||
Board Authorized 2024 Share Repurchase Program | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Authorized amount of stock to be repurchased | $ 66.2 | 66.2 | $ 66.2 | $ 66.2 | ||||||
Under all Board Authorizations | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Less repurchases made under these authorizations | $ (120.2) |
Treasury Stock - Narrative (Det
Treasury Stock - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Feb. 29, 2024 | Nov. 30, 2023 | Aug. 31, 2023 | Feb. 28, 2023 | Nov. 30, 2022 | Aug. 31, 2022 | Feb. 29, 2024 | Dec. 13, 2023 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Authorized amount of stock to be repurchased | $ 166,200,000 | $ 166,200,000 | ||||||
Treasury stock, value acquired | 54,200,000 | $ 52,300,000 | $ 36,200,000 | $ 46,900,000 | $ 26,000,000 | $ 5,100,000 | 142,700,000 | |
Excise tax on stock repurchased | 200,000 | 900,000 | ||||||
Board Authorized 2024 Share Repurchase Program | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Authorized amount of stock to be repurchased | $ 66,200,000 | $ 66,200,000 | $ 66,200,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of AOCI Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ (55.8) | |||
Other comprehensive income (loss) before reclassifications | $ (0.4) | $ (1) | 1.6 | $ (7.6) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | (0.4) | (0.2) | (1) | (0.4) |
Amortization of prior service (credit) cost (net of tax of $0.1) | (0.2) | (0.2) | (0.5) | (0.5) |
Other comprehensive income (loss) | (0.2) | (1) | 2.1 | (7.7) |
Ending balance | (53.7) | (53.1) | (53.7) | (53.1) |
Amortization of prior service credit, tax | 0.1 | 0.1 | 0.2 | 0.2 |
Reclassification adjustment from AOCI, tax | 0 | 0 | 0 | 0 |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (53.5) | (52.1) | (55.8) | (45.4) |
Ending balance | (53.7) | (53.1) | (53.7) | (53.1) |
Foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (48) | (51.2) | (50) | (44.6) |
Other comprehensive income (loss) before reclassifications | (0.4) | (1) | 1.6 | (7.6) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | 0 | 0 | 0 | 0 |
Amortization of prior service (credit) cost (net of tax of $0.1) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | (0.4) | (1) | 1.6 | (7.6) |
Ending balance | (48.4) | (52.2) | (48.4) | (52.2) |
Retirement benefit plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (5.5) | (0.9) | (5.8) | (0.8) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | (0.4) | (0.2) | (1) | (0.4) |
Amortization of prior service (credit) cost (net of tax of $0.1) | (0.2) | (0.2) | (0.5) | (0.5) |
Other comprehensive income (loss) | 0.2 | 0 | 0.5 | (0.1) |
Ending balance | $ (5.3) | $ (0.9) | $ (5.3) | $ (0.9) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassification out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Less: Tax effect | $ 8.1 | $ 6.9 | $ 7.3 | $ (6.1) |
Net income (loss) attributable to Scholastic Corporation | 26.5 | 19.2 | 23.8 | (10.6) |
Amount reclassified from Accumulated other comprehensive income (loss) | Retirement benefit plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of unrecognized gain (loss) | 0.4 | 0.2 | 1 | 0.4 |
Amortization of prior service (credit) loss | (0.3) | (0.3) | (0.7) | (0.7) |
Less: Tax effect | 0.1 | 0.1 | 0.2 | 0.2 |
Net income (loss) attributable to Scholastic Corporation | $ 0.2 | $ 0 | $ 0.5 | $ (0.1) |
Income Taxes and Other Taxes (D
Income Taxes and Other Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Income Tax And Non Income Tax Disclosure [Abstract] | ||||
Effective income tax rate (percentage) | 23.40% | 26.30% | 23.50% | 36.30% |
Proceeds from income tax refunds | $ 9.8 |
Derivatives and Hedging (Detail
Derivatives and Hedging (Details) - Not Designated as Hedging Instrument - Foreign Exchange Contract - USD ($) $ in Millions | 9 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized gain (loss) | $ (0.2) | $ (0.6) |
Derivative, Notional Amount | 22.8 | 22.8 |
Derivative, Notional Amount | $ 22.8 | $ 22.8 |
Other Accrued Expenses - Schedu
Other Accrued Expenses - Schedule of accrued expenses (Details) - USD ($) $ in Millions | Feb. 29, 2024 | May 31, 2023 | Feb. 28, 2023 |
Schedule of accrued expenses [Abstract] | |||
Accrued payroll, payroll taxes and benefits | $ 32.7 | $ 29.2 | $ 31.6 |
Accrued bonus and commissions | 18.1 | 31.2 | 21.8 |
Returns liability | 38.3 | 34.9 | 44.8 |
Accrued other taxes | 19.9 | 24.8 | 20.5 |
Accrued advertising and promotions | 7.9 | 7.3 | 8.8 |
Other accrued expenses | 39.8 | 41.5 | 36.4 |
Total accrued expenses | $ 156.7 | $ 168.9 | $ 163.9 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Mar. 11, 2024 | Mar. 22, 2024 | Feb. 29, 2024 | Nov. 30, 2023 | Aug. 31, 2023 | Feb. 28, 2023 | Nov. 30, 2022 | Aug. 31, 2022 | Feb. 29, 2024 | Mar. 20, 2024 | |
Subsequent Event [Line Items] | ||||||||||
Authorized amount of stock to be repurchased | $ 166.2 | $ 166.2 | ||||||||
Remaining authorized stock repurchase amount | 46 | 46 | ||||||||
Treasury stock, value acquired | $ 54.2 | $ 52.3 | $ 36.2 | $ 46.9 | $ 26 | $ 5.1 | $ 142.7 | |||
Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Increase in authorized amount | $ 54.6 | |||||||||
Authorized amount of stock to be repurchased | $ 100 | |||||||||
Treasury stock, value acquired | $ 0.6 | |||||||||
Subsequent Event | 9 Story Media Group | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Percentage of economic interests and minority voting rights to be acquired | 100% | |||||||||
Consideration to be transferred | $ 186 | |||||||||
Common Class | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Dividend declared per share (in dollars per share) | $ 0.20 |