Segment Information

6 Months Ended

Oct. 31, 2019

Note 10 — Segment Information

As previously announced, we have changed our segment reporting structure to align with our strategic focus areas: (1) Research Publishing & Platforms, which includes the Research publishing and Atypon businesses, (2) Academic & Professional Learning, which is the former “Publishing” segment combined with our corporate training businesses – previously noted as Professional Assessment and Corporate Learning; and (3) Education Services, which is the online program management business. Prior period segment results have been revised to the new segment presentation. There were no changes to our consolidated financial results.

We report our segment information in accordance with the provisions of FASB ASC Topic 280. These segments reflect the way our chief operating decision maker evaluates our business performance and manages the operations.

Segment information is as follows:

	Three Months Ended October 31,						Six Months Ended October 31,
	2019			2018			2019			2018
Revenue:
Research Publishing & Platforms	$	234,709		$	229,075		$	464,084		$	454,392
Academic & Professional Learning		177,725			189,670			322,583			346,094
Education Services		53,771			29,877			103,068			59,037
Total Revenue	$	466,205		$	448,622		$	889,735		$	859,523

Contribution to Profit:
Research Publishing & Platforms	$	63,291		$	59,210		$	118,937		$	116,527
Academic & Professional Learning		35,050			47,078			39,961			68,845
Education Services		2,583			(867	)		(4,616	)		(5,886	)
Total Contribution to Profit ⁽¹⁾	$	100,924		$	105,421		$	154,282		$	179,486
Corporate Expenses		(37,533	)		(47,946	)		(86,332	)		(85,871	)
Operating Income ⁽¹⁾	$	63,391		$	57,475		$	67,950		$	93,615

Adjusted Contribution to Profit:⁽¹⁾
Research Publishing & Platforms	$	64,017		$	61,492		$	122,283		$	117,829
Academic & Professional Learning		35,850			49,272			43,566			70,322
Education Services		2,108			(557	)		(3,002	)		(5,784	)
Total Adjusted Contribution to Profit	$	101,975		$	110,207		$	162,847		$	182,367
Adjusted Corporate Expenses		(34,583	)		(42,736	)		(80,161	)		(84,842	)
Total Adjusted Operating Income	$	67,392		$	67,471		$	82,686		$	97,525

Depreciation and Amortization:
Research Publishing & Platforms	$	17,037		$	15,422		$	34,190		$	30,787
Academic & Professional Learning		17,349			17,473			33,873			35,050
Education Services		5,522			3,045			11,020			6,512
Total Depreciation and Amortization	$	39,908		$	35,940		$	79,083		$	72,349
Corporate Depreciation and Amortization		2,730			3,712			5,774			7,474
Total Depreciation and Amortization	$	42,638		$	39,652		$	84,857		$	79,823

Adjusted EBITDA:⁽²⁾
Research Publishing & Platforms	$	81,054		$	76,914		$	156,473		$	148,616
Academic & Professional Learning		53,199			66,745			77,439			105,372
Education Services		7,630			2,488			8,018			728
Total Segment Adjusted EBITDA	$	141,883		$	146,147		$	241,930		$	254,716
Corporate Adjusted EBITDA		(31,853	)		(39,024	)		(74,387	)		(77,368	)
Total Adjusted EBITDA	$	110,030		$	107,123		$	167,543		$	177,348

⁽¹⁾	Adjusted Contribution to Profit is Contribution to Profit adjusted for restructuring charges (credits). See Note 9, “Restructuring and Related Charges” for these charges (credits) by segment.

⁽²⁾	Adjusted EBITDA is Adjusted Contribution to Profit with depreciation and amortization added back.

The following table shows a reconciliation of GAAP net income to Non-GAAP EBITDA and Adjusted EBITDA:

	Three Months Ended October 31,						Six Months Ended October 31,
	2019			2018			2019			2018
Net Income	$	44,690		$	43,784		$	48,314		$	70,079
Interest expense		6,787			3,608			12,864			6,404
Provision for income taxes		11,783			12,538			12,126			20,324
Depreciation and amortization		42,638			39,652			84,857			79,823
Non-GAAP EBITDA	$	105,898		$	99,582		$	158,161		$	176,630
Restructuring and related charges		4,001			9,996			14,736			3,910
Foreign exchange transaction losses		2,668			54			16			1,783
Interest and other income		(2,537	)		(2,509	)		(5,370	)		(4,975	)
Non-GAAP Adjusted EBITDA	$	110,030		$	107,123		$	167,543		$	177,348