Restructuring and Related (Credits) Charges

12 Months Ended

Apr. 30, 2022

Restructuring and Related (Credits) Charges [Abstract]

Restructuring and Related (Credits) Charges

Note 7 – Restructuring and Related (Credits) Charges

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 (credits) charges related to this program:

	For the Years Ended April 30,
	2022			2021			2020		Total Charges Incurred to Date
(Credits) Charges by Segment:
Research Publishing & Platforms	$	237		$	99		$	3,546	$	3,882
Academic & Professional Learning		(454	)		3,229			10,475		13,250
Education Services		8			531			3,774		4,313
Corporate Expenses		(1,218	)		29,590			15,018		43,390
Total Restructuring and Related (Credits) Charges	$	(1,427	)	$	33,449		$	32,813	$	64,835

(Credits) Charges by Activity:
Severance and termination benefits	$	(3,276	)	$	11,531		$	26,864	$	35,119
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, net		1,849			3,684			3,986		9,519
Other activities		—			(62	)		1,802		1,740
Total Restructuring and Related (Credits) Charges	$	(1,427	)	$	33,449		$	32,813	$	64,835

The credits in severance and termination benefits activities for the year ended April 30, 2022, primarily reflects changes in the number of headcount reductions and estimates for previously accrued costs.

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 was 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 $1.8 million and $3.7 million in the years ended April 30, 2022 and 2021, respectively. Facilities related charges, net include sublease income related to those operating leases we had identified in the year ended April 30, 2021 as part of our Business Optimization Program that would be subleased.

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, 2022:

	April 30, 2021		(Credits)			Payments			Foreign Translation & Other Adjustments			April 30, 2022
Severance and termination benefits	$	11,465	$	(3,276	)	$	(5,831	)	$	(279	)	$	2,079
Total	$	11,465	$	(3,276	)	$	(5,831	)	$	(279	)	$	2,079

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, 2022.