Restructuring and Related Charges

6 Months Ended

Oct. 31, 2020

Restructuring and Related Charges [Abstract]

Note 9 — Restructuring and Related Charges

Business Optimization Program

Beginning in fiscal year 2020, we initiated a multi-year Business Optimization Program (the “Business Optimization Program”) to drive efficiency improvement and operating savings.

The following tables summarize the pre-tax restructuring (credits) charges related to this program:

	Three Months Ended October 31,						Six Months Ended October 31,					Total Charges
	2020			2019			2020			2019		Incurred to Date
(Credits) Charges by Segment:
Research Publishing & Platforms	$	(103	)	$	29		$	(300	)	$	2,665	$	3,246
Academic & Professional Learning		1,541			765			1,314			3,542		11,789
Education Services		84			(475	)		223			1,717		3,997
Corporate Expenses		584			2,835			3,054			6,100		18,072
Total Restructuring and Related Charges	$	2,106		$	3,154		$	4,291		$	14,024	$	37,104

Charges by Activity:
Severance and termination benefits	$	1,683		$	578		$	2,793		$	11,287	$	29,657
Operating lease right-of-use asset impairment		—			—			—			161		161
Facility related charges		423			1,240			1,498			1,240		5,484
Other activities		—			1,336			—			1,336		1,802
Total Restructuring and Related Charges	$	2,106		$	3,154		$	4,291		$	14,024	$	37,104

Other Activities for the three and six months ended October 31, 2019 relate to reserves associated with the cessation of certain offerings and the impairment of certain software licenses.

The following table summarizes the activity for the Business Optimization Program liability for the six months ended October 31, 2020:

	April 30, 2020		Charges		Payments			Foreign Translation & Other Adjustments			October 31, 2020
Severance and termination benefits	$	17,632	$	2,793	$	(13,384	)	$	395		$	7,436
Other activities		430		—		(208	)		(64	)		158
Total	$	18,062	$	2,793	$	(13,592	)	$	331		$	7,594

Approximately $7.3 million of the restructuring liability for accrued severance and termination benefits is reflected in Accrued Employment Costs, and approximately $0.1 million is reflected in Other Long-Term Liabilities on our Unaudited Condensed Consolidated Statement of Financial Position.

The amount included in Other Long-Term Liabilities that relates to severance and termination benefits is expected to be paid in the year ended April 30, 2022.

The restructuring liability as of October 31, 2020 for other activities is reflected in Other Accrued Liabilities on our Unaudited Condensed Consolidated Statement of Financial Position.

Subsequent Event

In November 2020, in response to the COVID-19 pandemic and the Company’s successful transition to a virtual work environment, we increased use of virtual work arrangements for post-pandemic operations, particularly for colleagues located at small remote facilities. As a result, we expanded the scope of the Business Optimization Program to include the exit of certain leased office space beginning in the third quarter of fiscal year 2021 and reduction of our occupancy at other facilities. We are reducing our real estate square footage occupancy by approximately 12%. These actions are estimated to result in an initial pre-tax restructuring charge of approximately $15 million to $20 million in the third quarter of fiscal 2021. This initial restructuring charge primarily reflects the following non-cash charges:

•	the impairment of operating lease right-of-use assets and property and equipment, and

•	the acceleration of rent expense associated with right-of use assets and depreciation and amortization of property and equipment.

Restructuring and Reinvestment Program

Beginning in the year ended April 30, 2013, we initiated a global program (the “Restructuring and Reinvestment Program”) to restructure and realign our cost base with current and anticipated future market conditions. We are targeting a majority of the expected cost savings achieved to improve margins and earnings, while the remainder will be reinvested in high-growth digital business opportunities.

The following tables summarize the pre-tax restructuring (credits) charges related to this program:

	Three Months Ended October 31,					Six Months Ended October 31,						Total Charges
	2020			2019		2020			2019			Incurred to Date
(Credits) Charges by Segment:
Research Publishing & Platforms	$	(135	)	$	697	$	(135	)	$	681		$	26,749
Academic & Professional Learning		—			35		260			63			43,094
Education Services		—			—		—			(103	)		3,764
Corporate Expenses		(51	)		115		(278	)		71			95,662
Total Restructuring and Related (Credits) Charges	$	(186	)	$	847	$	(153	)	$	712		$	169,269

(Credits) Charges by Activity:
Severance and termination benefits	$	(186	)	$	847	$	(153	)	$	497		$	115,856
Consulting and contract termination costs		—			—		—			—			20,984
Other activities		—			—		—			215			32,429
Total Restructuring and Related (Credits) Charges	$	(186	)	$	847	$	(153	)	$	712		$	169,269

Other activities for the six months ended October 31, 2019 include facility related costs.

The following table summarizes the activity for the Restructuring and Reinvestment Program liability for the six months ended October 31, 2020:

	April 30, 2020		(Credits)			Payments			Foreign Translation & Other Adjustments		October 31, 2020
Severance and termination benefits	$	1,360	$	(153	)	$	(888	)	$	54	$	373
Other activities		230		—			(94	)		223		359
Total	$	1,590	$	(153	)	$	(982	)	$	277	$	732

The restructuring liability as of October 31, 2020 for accrued severance and termination benefits is reflected in Accrued Employment Costs on our Unaudited Condensed Consolidated Statement of Financial Position.

The restructuring liability as of October 31, 2020 of $0.4 million of other activities are reflected in Other Long-Term Liabilities on our Unaudited Condensed Consolidated Statement of Financial Position and mainly relate to facility related costs. The amount included in Other Long-Term Liabilities is expected to be paid in the year ended April 30, 2022.

We currently do not anticipate any further material charges related to the Restructuring and Reinvestment Program.