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Retirement Plans
 12 Months Ended
Apr. 30, 2020
Retirement Plans [Abstract]  
Retirement Plans
Note 17 – Retirement Plans

We have retirement plans that cover substantially all employees. The plans generally provide for employee retirement between the ages 60 and 65, and benefits based on length of service and compensation, as defined.

Our Board of Directors approved plan amendments that froze the following retirement plans:
•
Retirement Plan for the Employees of John Wiley & Sons, Canada was frozen effective December 31, 2015;
•
Retirement Plan for the Employees of John Wiley & Sons, Ltd., a U.K. plan was frozen effective April 30, 2015 and;
•
U.S. Employees’ Retirement Plan, Supplemental Benefit Plan, and Supplemental Executive Retirement Plan, were frozen effective June 30, 2013.

We maintain the Supplemental Executive Retirement Plan for certain officers and senior management which provides for the payment of supplemental retirement benefits after the termination of employment for 10 years or in a lifetime annuity. Under certain circumstances, including a change of control as defined, the payment of such amounts could be accelerated on a present value basis. Future accrued benefits to this plan have been discontinued as noted above.

The components of net pension (income) expense for the defined benefit plans and the weighted average assumptions were as follows:

  
2020
    
2019
    
2018
  
   
U.S.
    
Non-U.S.
    
U.S.
    
Non-U.S.
    
U.S.
    
Non-U.S.
  
Service Cost
  
$
—
    
$
1,851
    
$
—
    
$
912
    
$
—
    
$
960
  
Interest Cost
    
11,247
      
12,652
      
11,704
      
12,943
      
11,666
      
13,876
  
Expected Return on Plan Assets
    
(14,038
)
    
(26,116
)
    
(13,472
)
    
(25,551
)
    
(13,154
)
    
(26,385
)
Net Amortization of Prior Service Cost
    
(154
)
    
73
      
(154
)
    
57
      
(154
)
    
57
  
Recognized Net Actuarial Loss
    
2,403
      
3,993
      
2,035
      
3,746
      
2,289
      
3,832
  
Curtailment/Settlement Loss
    
—
      
291
      
—
      
—
      
—
      
19
  
Net Pension (Income) Expense
  
$
(542
)
  
$
(7,256
)
  
$
113
    
$
(7,893
)
  
$
647
    
$
(7,641
)
                                                 
Discount Rate
    
4.1
%
    
2.4
%
    
4.3
%
    
2.6
%
    
4.1
%
    
2.6
%
Rate of Compensation Increase
    
N/A
      
3.0
%
    
N/A
      
3.0
%
    
N/A
      
3.0
%
Expected Return on Plan Assets
    
6.8
%
    
6.5
%
    
6.8
%
    
6.5
%
    
6.8
%
    
6.5
%

In the year ended April 30, 2020, there was a settlement charge of $0.3 million related to the Retirement Plan for the Employees of John Wiley & Sons, Canada which is reflected in Restructuring and Related Charges in the Consolidated Statements of (Loss) Income.

The service cost component of net pension (income) expense is reflected in Operating and Administrative Expenses on our Consolidated Statements of (Loss) Income. The other components of net benefit costs are reported separately from the service cost component and below Operating (Loss) Income. Such amounts are reflected in Interest and Other Income on our Consolidated Statements of (Loss) Income.

The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the retirement plans with accumulated benefit obligations in excess of plan assets were $853.3 million, $816.5 million and $659.4 million, respectively, as of April 30, 2020, and $794.2 million, $762.8 million, and $621.9 million, respectively, as of April 30, 2019.


The Recognized Net Actuarial Loss for each fiscal year is calculated using the “corridor method,” which reflects the amortization of the net loss at the beginning of the fiscal year in excess of 10% of the greater of the market value of plan assets or the projected benefit obligation. The amortization period is based on the average expected life of plan participants for plans with all or almost all inactive participants and frozen plans, and on the average remaining working lifetime of active plan participants for all other plans.

We recognize the overfunded or underfunded status of defined benefit postretirement plans, measured as the difference between the fair value of plan assets and the projected benefit obligation, on the Consolidated Statements of Financial Position. The change in the funded status of the plan is recognized in Accumulated Other Comprehensive Loss on the Consolidated Statements of Financial Position. Plan assets and obligations are measured at fair value as of our Consolidated Statements of Financial Position date.

The amounts in Accumulated Other Comprehensive Loss that are expected to be recognized as components of net periodic benefit cost during the next fiscal year are as follows:

  
U.S.
    
Non-U.S.
    
Total
  
Actuarial Loss
  
$
3,666
    
$
4,323
    
$
7,989
  
Prior Service Cost
    
(154
)
    
55
      
(99
)
Total
  
$
3,512
    
$
4,378
    
$
7,890
  

The following table sets forth the changes in and the status of our defined benefit plans’ assets and benefit obligations:

  
2020
    
2019
  
   
U.S.
    
Non-U.S.
    
U.S.
    
Non-U.S.
  
CHANGE IN PLAN ASSETS
                        
Fair Value of Plan Assets, Beginning of Year
  
$
213,628
    
$
408,249
    
$
204,983
    
$
419,448
  
Actual Return on Plan Assets
    
11,645
      
48,602
      
9,705
      
24,891
  
Employer Contributions
    
3,700
      
11,686
      
14,753
      
11,872
  
Employee Contributions
    
—
      
—
      
—
      
—
  
Settlements
    
—
      
(1,459
)
    
—
      
—
  
Benefits Paid
    
(15,027
)
    
(9,162
)
    
(15,813
)
    
(16,282
)
Foreign Currency Rate Changes
    
—
      
(12,436
)
    
—
      
(31,680
)
Fair Value, End of Year
  
$
213,946
    
$
445,480
    
$
213,628
    
$
408,249
  
CHANGE IN PROJECTED BENEFIT OBLIGATION
                                
Benefit Obligation, Beginning of Year
  
$
(285,197
)
  
$
(509,015
)
  
$
(279,644
)
  
$
(540,686
)
Service Cost
    
—
      
(1,851
)
    
—
      
(912
)
Interest Cost
    
(11,247
)
    
(12,652
)
    
(11,704
)
    
(12,943
)
Actuarial Gains (Losses)
    
(37,550
)
    
(36,287
)
    
(9,662
)
    
(11,013
)
Benefits Paid
    
15,027
      
9,162
      
15,813
      
16,282
  
Foreign Currency Rate Changes
    
—
      
15,176
      
—
      
41,143
  
Settlements and Other
    
—
      
1,164
      
—
      
(886
)
Benefit Obligation, End of Year
  
$
(318,967
)
  
$
(534,303
)
  
$
(285,197
)
  
$
(509,015
)
Underfunded Status, End of Year
  
$
(105,021
)
  
$
(88,823
)
  
$
(71,569
)
  
$
(100,766
)
AMOUNTS RECOGNIZED ON THE STATEMENT OF FINANCIAL POSITION
                                
Current Pension Liability
    
(4,990
)
    
(885
)
    
(5,188
)
    
(816
)
Noncurrent Pension Liability
    
(100,031
)
    
(87,938
)
    
(66,381
)
    
(99,950
)
Net Amount Recognized in Statement of Financial Position
  
$
(105,021
)
  
$
(88,823
)
  
$
(71,569
)
  
$
(100,766
)
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS (BEFORE TAX) CONSIST OF
                                
Net Actuarial (Losses)
  
$
(131,569
)
  
$
(181,403
)
  
$
(94,028
)
  
$
(177,157
)
Prior Service Cost Gains (Losses)
    
2,254
      
(1,051
)
    
2,408
      
(1,154
)
Total Accumulated Other Comprehensive Loss
  
$
(129,315
)
  
$
(182,454
)
  
$
(91,620
)
  
$
(178,311
)
Change in Accumulated Other Comprehensive Loss
  
$
(37,695
)
  
$
(4,143
)
  
$
(11,546
)
  
$
5,446
  
WEIGHTED AVERAGE ASSUMPTIONS USED IN DETERMINING ASSETS AND LIABILITIES
                                
Discount Rate
    
3.1
%
    
1.6
%
    
4.1
%
    
2.4
%
Rate of Compensation Increase
    
N/A
      
3.0
%
    
N/A
      
3.0
%
Accumulated Benefit Obligations
  
$
(318,967
)
  
$
(497,489
)
  
$
(285,197
)
  
$
(477,561
)


Pension plan assets/investments:

The investment guidelines for the defined benefit pension plans are established based upon an evaluation of market conditions, plan liabilities, cash requirements for benefit payments, and tolerance for risk. Investment guidelines include the use of actively and passively managed securities. The investment objective is to ensure that funds are available to meet the plans benefit obligations when they are due. The investment strategy is to invest in high quality and diversified equity and debt securities to achieve our long-term expectation. The plans’ risk management practices provide guidance to the investment managers, including guidelines for asset concentration, credit rating and liquidity. Asset allocation favors a balanced portfolio, with a global aggregated target allocation of approximately 45% equity securities and 55% fixed income securities and cash.  Due to volatility in the market, the target allocation is not always desirable and asset allocations will fluctuate between acceptable ranges of plus or minus 5%. We regularly review the investment allocations and periodically rebalance investments to the target allocations. We categorize our pension assets into three levels based upon the assumptions (inputs) used to price the assets. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows:

●
Level 1: Unadjusted quoted prices in active markets for identical assets.
●
Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets in active markets or quoted prices for identical assets in inactive markets.
●
Level 3: Unobservable inputs reflecting assumptions about the inputs used in pricing the asset.

We did not maintain any level 3 assets during the years ended April 30, 2020 and 2019. In accordance with ASU 2015-07, “Fair Value Measurement (“Topic 820”), certain investments that are measured at fair value using the net asset value (“NAV”) per share (or its equivalent) practical expedient do not have to be classified in the fair value hierarchy. We adopted ASU 2015-07 in the year ended April 30, 2018 and it was applied retrospectively to all periods presented. The fair value amounts presented in the following tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefit plan assets.

The following tables set forth, by level within the fair value hierarchy, pension plan assets at their fair value as of April 30:

  
2020
    
2019
  
   
Level 1
    
Level 2
    
Total
    
Level 1
    
Level 2
    
Total
  
U.S. Plan Assets
                                    
Investments measured at NAV:
                                    
Global Equity Securities: Limited Partnership
              
$
110,965
                
$
109,490
  
Fixed Income Securities: Commingled Trust Funds
                
102,981
                  
104,138
  
Other: Real Estate Commingled Trust Fund
                
—
                  
—
  
Total Assets at NAV
              
$
213,946
                
$
213,628
  
                                         
Non-U.S. Plan Assets
                                        
Equity Securities:
                                        
U.S. Equities
  
$
—
    
$
36,842
    
$
36,842
    
$
—
    
$
39,652
    
$
39,652
  
Non-U.S. Equities
    
—
      
103,460
      
103,460
      
—
      
117,575
      
117,575
  
Balanced Managed Funds
    
—
      
44,989
      
44,989
      
—
      
48,550
      
48,550
  
Fixed Income Securities: Commingled Funds
    
3,431
      
254,134
      
257,565
      
855
      
199,720
      
200,575
  
Other:
                                                
Real Estate/Other
    
—
      
490
      
490
      
—
      
501
      
501
  
Cash and Cash Equivalents
    
2,134
      
—
      
2,134
      
1,396
      
—
      
1,396
  
Total Non-U.S. Plan Assets
  
$
5,565
    
$
439,915
    
$
445,480
    
$
2,251
    
$
405,998
    
$
408,249
  
Total Plan Assets
  
$
5,565
    
$
439,915
    
$
659,426
    
$
2,251
    
$
405,998
    
$
621,877
  

Expected employer contributions to the defined benefit pension plans in the year ended April 30, 2021 will be approximately $16.9 million, including $11.8 million of minimum amounts required for our non-U.S. plans. From time to time, we may elect to make voluntary contributions to our defined benefit plans to improve their funded status. Included in our defined benefit pension contributions for the year ended April 30, 2019 was a discretionary contribution of $10.0 million to the U.S. Employees' Retirement Plan of John Wiley & Sons, Inc.


Benefit payments to retirees from all defined benefit plans are expected to be the following in the fiscal year indicated:

Fiscal Year
  
U.S.
  
Non-U.S.
  
Total
2021
  
$
16,581
  
$
9,733
  
$
26,314
2022
    
15,205
    
10,743
    
25,948
2023
    
15,533
    
11,065
    
26,598
2024
    
15,713
    
11,691
    
27,404
2025
    
15,363
    
13,439
    
28,802
2026 – 2030
    
77,026
    
71,836
    
148,862
Total
  
$
155,421
  
$
128,507
  
$
283,928

Retiree Health Benefits

We provide contributory life insurance and health care benefits, subject to certain dollar limitations, for substantially all of our eligible retired U.S. employees. The retiree health benefit is no longer available for any employee who retires after December 31, 2017. The cost of such benefits is expensed over the years the employee renders service and is not funded in advance. The accumulated post-retirement benefit obligation recognized on the Consolidated Statements of Financial Position as of April 30, 2020 and 2019, was $1.4 and $1.6 million, respectively. Annual (credits) for these plans for the years ended April 30, 2020, 2019, and 2018 were $(0.1) million, $(0.1) million and $(0.1) million, respectively.

Defined Contribution Savings Plans

We have defined contribution savings plans. Our contribution is based on employee contributions and the level of our match. We may make discretionary contributions to all employees as a group. The expense recorded for these plans was approximately $19.0 million, $13.1 million, and $14.4 million in the years ended April 30, 2020, 2019, and 2018 respectively.