Note 18 - Segment Information

Effective August 1, 2016, the Company completed a number of changes to its organizational structure that resulted in a change in how the Company manages its business, allocates resources and measures performance. As a result, the Company has revised its reportable segments to reflect how management currently reviews financial information and makes operating decisions. All prior period amounts have been adjusted to reflect the reporting segment change.

Below is a description of the Company’s three new reporting segments:

Research supports researchers, professionals and learners in the discovery and use of research knowledge to help them achieve their goals in research, learning and practice. Research provides scientific, technical, medical, and scholarly journals, as well as related content and services, to academic, corporate, and government libraries, learned societies, and individual researchers and other professionals. Journal publishing areas include the physical sciences and engineering, health sciences, social science and humanities and life sciences. Research also includes the Company’s recent acquisition of Atypon, a publishing software and service provider that enables scholarly and professional societies and publishers to deliver, host, enhance, market and manage their content on the web. Research customers include academic, corporate, government, and public libraries; funders of research; researchers; scientists; clinicians; engineers and technologists; scholarly and professional societies; and students and professors. The Company’s Research products are sold and distributed globally in digital and print formats through multiple channels, including research libraries and library consortia, independent subscription agents, direct sales to professional society members and other customers. Publishing centers include Australia, China, Germany, India, the United Kingdom and the United States.

Research revenue by product type includes: Journal Subscriptions; Author-Funded Access; Licensing, Reprints, Backfiles, and Other; and Platform Services (Atypon).

Publishing acquires, develops and publishes scientific, professional and education books and related content, as well as test preparation services and course workflow tools, to libraries, corporations, students, professionals and researchers. Communities served include business, finance, accounting, workplace learning, management, leadership, technology, behavioral health, engineering/architecture, science and medicine, and education. Products are developed in print and digitally for worldwide distribution through multiple channels, including chain and online booksellers, libraries, colleges and universities, corporations, direct to consumer, websites, distributor networks and other online applications. Publishing centers include Australia, Germany, India, the United Kingdom and the United States.

Publishing revenue by product type includes: STM and Professional Books; Education Books; Online Test Preparation and Certification; Course Workflow; and Licensing, Distribution, Advertising and Other.

Solutions delivers online program management services for universities and corporate learning and assessment services for businesses. Online Program Management services include market research, marketing, student recruitment, enrollment support, proactive retention support, academic services to design courses, faculty support and access to the Engage Learning Management System, which facilitates the online education experience. Graduate degree programs include Business Administration, Finance, Accounting, Healthcare, Engineering, Communications and others. The Corporate Learning business offers online learning and training solutions for global corporations, universities, and small and medium-sized enterprises, which are sold on a subscription or fee basis. Corporate Learning topics include leadership, diversity, value creation, client orientation, change and corporate strategy. The Company’s professional assessment services include pre-hire screening and post-hire personality assessments, which are delivered to business customers through online digital delivery platforms either directly or through an authorized distributor network of independent consultants, trainers and coaches. The Company’s assessment tools enable employers to optimize candidate selections and develop the full potential of their employees. These solutions include pre-hire assessments, including those designed to measure and match personality, knowledge, skills, managerial fit, loyalty, and values; and post-hire assessments, focused on measuring sales and managerial effectiveness, employee performance and career potential.

Solutions revenue by product type includes: Online Program Management; Corporate Learning; and Professional Assessment.

Shared Services functions are consolidated and centrally managed for the benefit of the three global reporting segments and include: Distribution and Operation Services; Technology and Content Management; Finance; and Other Administration. The Company uses occupied square footage of space; number of employees; units shipped; specific identification/activity-based; gross profit; revenue and number of invoices to allocate shared service costs to each business segment.

Segment information is as follows (in thousands):

	For the years ended April 30,
	2017	2016	2015
RESEARCH
Revenue	$853,489	$826,778	$894,690
Contribution to Profit	$252,228	$252,110	$302,129

PUBLISHING
Revenue	$633,449	$695,728	$747,105
Contribution to Profit	$125,703	$126,058	$97,642

SOLUTIONS
Revenue	$231,592	$204,531	$180,645
Contribution to Profit	$14,822	$3,992	$639

Total Contribution to Profit	$392,753	$382,160	$400,410
Unallocated Shared Services and Administrative Costs	(186,600)	(194,047)	(162,671)
Operating Income	$206,153	$188,113	$237,739

The following table reflects total Shared Services and Administrative costs by function, which are partially allocated to business segments based on the methodologies described above:

	For the years ended April 30,
TOTAL SHARED SERVICES AND ADMINISTRATIVE COSTS	2017	2016	2015
Distribution & Operation Services	$75,806	$80,043	$85,758
Technology & Content Management	266,801	258,641	245,415
Finance	47,049	46,759	49,570
Other Administration	117,659	131,803	121,396
One-time Pension Settlement (see Note 15)	8,842	-	-
Restructuring Charges (see Note 6)	8,023	20,080	18,293
Total	$524,180	$537,326	$520,432

	For the years ended April 30,
Total Revenue by Product/Service	2017	2016	2015
Journals	$834,423	$826,778	$894,690
Platform Services (Atypon)	19,066	-	-
Books and Reference Material	487,598	560,973	643,138
Course Workflow	62,348	58,519	54,200
Online Program Management	111,638	96,469	81,593
Professional Assessment	59,868	57,370	57,035
Corporate Learning	60,086	50,692	42,017
Other	$83,503	$76,236	$49,767
Total	$1,718,530	$1,727,037	$1,822,440

Total Assets
Research	$1,133,846	$1,235,609	$1,237,969
Publishing	582,339	672,987	652,923
Solutions	575,068	439,554	459,260
Corporate/Shared Services	314,964	572,946	654,091
Total	$2,606,217	$2,921,096	$3,004,243

Expenditures for Long Lived Assets
Research	$(160,544)	$(31,615)	$(9,744)
Publishing	(31,968)	(37,272)	(39,421)
Solutions	(8,739)	-	(165,785)
Corporate/Shared Services	(101,774)	(82,508)	(65,821)
Total	$(303,025)	$(151,395)	$(280,771)

Depreciation and Amortization
Research	$29,330	$26,410	$26,084
Publishing	43,831	47,108	46,526
Solutions	26,792	22,927	22,644
Corporate/Shared Services	56,608	59,404	58,671
Total	$156,561	$155,849	$153,925

Export sales from the United States to unaffiliated customers amounted to approximately $148.7 million, $164.4 million and $168.0 million in fiscal years 2017, 2016 and 2015, respectively. The pretax income for consolidated operations outside the United States was approximately $192.9 million, $159.2 million and $165.1 million in fiscal years 2017, 2016 and 2015, respectively.

Revenue from external customers based on the location of the customer and long-lived assets by geographic area were as follows (in thousands):

	Revenue			Long-Lived Assets (Technology, Property & Equipment)
	2017	2016	2015	2017	2016	2015
United States	$786,574	$884,185	$920,166	$208,572	$166,878	$143,786
United Kingdom	189,479	153,442	142,680	21,368	23,246	24,711
Germany	75,090	69,676	83,714	8,770	9,629	9,781
Japan	62,674	76,930	84,420	75	35	21
China	39,653	52,815	45,159	270	244	307
India	34,306	38,208	39,494	245	234	180
Australia	66,309	78,786	80,380	591	1,041	1,696
France	44,760	49,970	57,492	9,765	9,517	6,720
Canada	50,740	50,243	56,949	1,232	1,617	1,606
Other Countries	368,945	272,782	311,986	1,600	2,329	4,202
Total	$1,718,530	$1,727,037	$1,822,440	$252,488	$214,770	$193,010