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Restructuring and Related Charges
 12 Months Ended
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.