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Restructuring and Related Charges | 12 Months Ended
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Apr. 30, 2021
Restructuring and Related Charges [Abstract] |
Restructuring and Related Charges | Note 7 – Restructuring and Related Charges Business Optimization Program Beginning in fiscal year 2020, we initiated a multiyear Business Optimization Program (the Business Optimization Program) to drive efficiency improvement and operating savings. The following tables summarize the pretax restructuring charges related to this program:
|  | For the Years Ended April 30, |  |  |  |
|  | 2021 |  |  | 2020 |  |  | Total Charges Incurred to Date |
Charges by Segment: |  |  |  |  |  |  |  |  |
Research Publishing & Platforms |  | $ | 99 |  |  | $ | 3,546 |  |  | $ | 3,645 |
Academic & Professional Learning |  |  | 3,229 |  |  |  | 10,475 |  |  |  | 13,704 |
Education Services |  |  | 531 |  |  |  | 3,774 |  |  |  | 4,305 |
Corporate Expenses |  |  | 29,590 |  |  |  | 15,018 |  |  |  | 44,608 |
Total Restructuring and Related Charges |  | $ | 33,449 |  |  | $ | 32,813 |  |  | $ | 66,262 |
Charges (Credits) by Activity: |  |  |  |  |  |  |  |  |  |  |  |
Severance and termination benefits |  | $ | 11,531 |  |  | $ | 26,864 |  |  | $ | 38,395 |
Impairment of operating lease ROU assets and property and equipment |  |  | 14,918 |  |  |  | 161 |  |  |  | 15,079 |
Acceleration of expense related to operating lease ROU assets and property and equipment |  |  | 3,378 |  |  |  | — |  |  |  | 3,378 |
Facility related charges |  |  | 3,684 |  |  |  | 3,986 |  |  |  | 7,670 |
Other activities |  |  | (62 | ) |  |  | 1,802 |  |  |  | 1,740 |
Total Restructuring and Related Charges |  | $ | 33,449 |  |  | $ | 32,813 |  |  | $ | 66,262 |
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. As a result, we expanded the scope of the Business Optimization Program to include the exit of certain leased office space beginning in the three months ended January 31, 2021, and the reduction of our occupancy at other facilities. We are reducing our real estate square footage occupancy by approximately 12%. These actions resulted in a pretax restructuring charge of $18.3 million in the three months ended January 31, 2021. This restructuring charge primarily reflects the following noncash charges:
• | impairment charges of $14.9 million recorded in our corporate category, which included the impairment of operating lease ROU assets of $10.6 million related to certain leases that will be subleased, and the related property and equipment of $4.3 million described further below, and
• | acceleration of expense of $3.4 million, which included the acceleration of rent expense associated with operating lease ROU assets of $2.9 million related to certain leases that will be abandoned or terminated and the related depreciation and amortization of property and equipment of $0.5 million.
Due to the actions taken above, we tested the operating lease ROU assets and the related property and equipment for those being subleased for recoverability by comparing the carrying value of the asset group to an estimate of the future undiscounted cash flows expected to result from the use and eventual disposition of the asset group. Based on the results of the recoverability test, we determined that the undiscounted cash flows of the asset groups were below the carrying values. Therefore, there was an indication of impairment. We then determined the fair value of the asset groups by utilizing the present value of the estimated future cash flows attributable to the assets. The fair value of these operating lease ROU assets and the property and equipment immediately subsequent to the impairment was $7.5 million and is categorized as Level 3 within the FASB ASC Topic 820, “Fair Value Measurements” fair value hierarchy. In addition, we also incurred ongoing facility-related costs associated with certain properties that resulted in additional restructuring charges of $3.7 million in the year ended April 30, 2021. Other Activities for the year ended April 30, 2020 primarily relate to reserves and costs associated with the cessation of certain offerings, and, to a lesser extent, a pension settlement, and the impairment of certain software licenses. The following table summarizes the activity for the Business Optimization Program liability for the year ended April 30, 2021:
|  | April 30, 2020 |  |  | Charges (Credits) |  |  | Payments |  |  | Foreign Translation & Other Adjustments |  |  | April 30, 2021 |
Severance and termination benefits |  | $ | 17,632 |  |  | $ | 11,531 |  |  | $ | (18,310 | ) |  | $ | 612 |  |  | $ | 11,465 |
Other activities |  |  | 430 |  |  |  | (264 | ) |  |  | (262 | ) |  |  | 96 |  |  |  | — |
Total |  | $ | 18,062 |  |  | $ | 11,267 |  |  | $ | (18,572 | ) |  | $ | 708 |  |  | $ | 11,465 |
The restructuring liability for accrued severance and termination benefits is reflected in Accrued employment costs in the Consolidated Statement of Financial Position as of April 30, 2021. 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 pretax restructuring (credits) charges related to this program:
|  | For the Years Ended April 30, |  |  |  |
|  | 2021 |  |  | 2020 |  |  | 2019 |  |  | Total Charges Incurred to Date |
(Credits) Charges by Segment: |  |  |  |  |  |  |  |  |  |  |  |
Research Publishing & Platforms |  | $ | (135 | ) |  | $ | 340 |  |  | $ | 1,131 |  |  | $ | 26,749 |
Academic & Professional Learning |  |  | 274 |  |  |  | (5 | ) |  |  | 1,139 |  |  |  | 43,108 |
Education Services |  |  | — |  |  |  | (103 | ) |  |  | 389 |  |  |  | 3,764 |
Corporate Expenses |  |  | (278 | ) |  |  | (438 | ) |  |  | 459 |  |  |  | 95,662 |
Total Restructuring and Related (Credits) Charges |  | $ | (139 | ) |  | $ | (206 | ) |  | $ | 3,118 |  |  | $ | 169,283 |
(Credits) Charges by Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Severance and termination benefits |  | $ | (139 | ) |  | $ | (250 | ) |  | $ | 1,456 |  |  | $ | 115,870 |
Consulting and contract termination costs |  |  | — |  |  |  | (171 | ) |  |  | 526 |  |  |  | 20,984 |
Other activities |  |  | — |  |  |  | 215 |  |  |  | 1,136 |  |  |  | 32,429 |
Total Restructuring and Related (Credits) Charges |  | $ | (139 | ) |  | $ | (206 | ) |  | $ | 3,118 |  |  | $ | 169,283 |
Other activities for the year ended April 30, 2020 include facility related costs. Other activities for the year ended April 30, 2019 reflect lease impairment related costs. The following table summarizes the activity for the Restructuring and Reinvestment Program liability for the year ended April 30, 2021:
|  | April 30, 2020 |  |  | (Credits) |  |  | Payments |  |  | Foreign Translation & Other Adjustments |  |  | April 30, 2021 |
Severance and termination benefits |  | $ | 1,360 |  |  | $ | (139 | ) |  | $ | (888 | ) |  | $ | 69 |  |  | $ | 402 |
Other activities |  |  | 230 |  |  |  | — |  |  |  | (207 | ) |  |  | 239 |  |  |  | 262 |
Total |  | $ | 1,590 |  |  | $ | (139 | ) |  | $ | (1,095 | ) |  | $ | 308 |  |  | $ | 664 |
The restructuring liability as of April 30, 2021 for accrued severance and termination benefits is reflected in Accrued employment costs in the Consolidated Statement of Financial Position. The restructuring liability as of April 30, 2021 for other activities are reflected in Other accrued liabilities in the Consolidated Statement of Financial Position and mainly relate to facility relocation and lease impairment related costs. We currently do not anticipate any further material charges related to the Restructuring and Reinvestment Program.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI http://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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