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Retirement Plans
 12 Months Ended
Apr. 30, 2022
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 UK 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 expense (income) for the defined benefit plans and the weighted average assumptions were as follows:

   
For the Years Ended April 30,
  
 
2022
    
2021
    
2020
  
   
US
    
Non-US
    
US
    
Non-US
    
US
    
Non-US
  
Service cost
  
$
—
    
$
1,196
    
$
—
    
$
1,396
    
$
—
    
$
1,851
  
Interest cost
    
9,451
      
11,148
      
9,504
      
8,901
      
11,247
      
12,652
  
Expected return on plan assets
    
(12,144
)
    
(28,118
)
    
(11,969
)
    
(26,971
)
    
(14,038
)
    
(26,116
)
Amortization of prior service cost
    
(154
)
    
67
      
(154
)
    
58
      
(154
)
    
73
  
Amortization of net actuarial loss
    
2,617
      
4,846
      
3,501
      
4,516
      
2,403
      
3,993
  
Curtailment (credit)/settlement loss
    
—
      
(39
)
    
—
      
—
      
—
      
291
  
Net pension (income) expense
  
$
(230
)
  
$
(10,900
)
  
$
882
    
$
(12,100
)
  
$
(542
)
  
$
(7,256
)
                                                 
Discount rate
    
3.2
%
    
1.9
%
    
3.1
%
    
1.6
%
    
4.1
%
    
2.4
%
Rate of compensation increase
    
N/A
      
3.0
%
    
N/A
      
3.0
%
    
N/A
      
3.0
%
Expected return on plan assets
    
5.3
%
    
5.5
%
    
5.8
%
    
5.7
%
    
6.8
%
    
6.5
%

In the year ended April 30, 2022, because of a reduction in force, there was a curtailment credit of less than $0.1 million related to the Retirement Indemnity Plan for the Employees of Cross Knowledge which is reflected in Restructuring and related (credits) charges in the Consolidated Statements of Income (Loss).

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 (credits) charges in the Consolidated Statements of Income (Loss).

The service cost component of net pension expense (income) is reflected in Operating and administrative expenses on our Consolidated Statements of Income (Loss). The other components of net pension expense (income) are reported separately from the service cost component and below Operating income (loss). Such amounts are reflected in Other income, net on our Consolidated Statements of Income (Loss).

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

  
2022
    
2021
  
   
US
    
Non-US
    
US
    
Non-US
  
CHANGE IN PLAN ASSETS
                        
Fair value of plan assets, beginning of year
  
$
237,129
    
$
523,886
    
$
213,946
    
$
445,480
  
Actual return on plan assets
    
(21,257
)
    
(37,543
)
    
34,560
      
27,971
  
Employer contributions
    
3,812
      
12,595
      
5,599
      
12,203
  
Employee contributions
    
—
      
—
      
—
      
—
  
Settlements
    
—
      
—
      
—
      
—
  
Benefits paid
    
(15,229
)
    
(10,703
)
    
(16,976
)
    
(11,921
)
Foreign currency rate changes
    
—
      
(45,976
)
    
—
      
50,153
  
Fair value, end of year
  
$
204,455
    
$
442,259
    
$
237,129
    
$
523,886
  
CHANGE IN PROJECTED BENEFIT OBLIGATION
                                
Benefit obligation, beginning of year
  
$
(302,632
)
  
$
(609,614
)
  
$
(318,967
)
  
$
(534,303
)
Service cost
    
—
      
(1,196
)
    
—
      
(1,396
)
Interest cost
    
(9,451
)
    
(11,148
)
    
(9,504
)
    
(8,901
)
Actuarial gains (losses)
    
47,284
      
84,746
      
8,863
      
(17,739
)
Benefits paid
    
15,229
      
10,703
      
16,976
      
11,921
  
Foreign currency rate changes
    
—
      
51,660
      
—
      
(59,046
)
Settlements and other
    
—
      
47
      
—
      
(150
)
Benefit obligation, end of year
  
$
(249,570
)
  
$
(474,802
)
  
$
(302,632
)
  
$
(609,614
)
Underfunded status, end of year
  
$
(45,115
)
  
$
(32,543
)
  
$
(65,503
)
  
$
(85,728
)
AMOUNTS RECOGNIZED ON THE STATEMENT OF FINANCIAL POSITION
                                
Noncurrent assets
    
—
      
5,855
      
—
      
6
  
Current pension liability
    
(3,545
)
    
(1,346
)
    
(3,576
)
    
(1,414
)
Noncurrent pension liability
    
(41,570
)
    
(37,052
)
    
(61,927
)
    
(84,320
)
Net amount recognized in statement of financial position
  
$
(45,115
)
  
$
(32,543
)
  
$
(65,503
)
  
$
(85,728
)
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS (BEFORE TAX) CONSIST OF
                                
Net actuarial (losses) gains
  
$
(80,114
)
  
$
(171,274
)
  
$
(96,613
)
  
$
(213,958
)
Prior service cost gains (losses)
    
1,946
      
(1,165
)
    
2,100
      
(1,299
)
Total accumulated other comprehensive loss
  
$
(78,168
)
  
$
(172,439
)
  
$
(94,513
)
  
$
(215,257
)
Change in accumulated other comprehensive loss
  
$
16,345
    
$
42,818
    
$
34,802
    
$
(32,803
)
INFORMATION FOR PENSION PLANS WITH AN ACCUMULATED BENEFIT OBLIGATION IN EXCESS OF PLAN ASSETS
                                
Accumulated benefit obligation
  
$
249,570
    
$
37,801
    
$
302,632
    
$
566,998
  
Fair value of plan assets
  
$
204,455
    
$
475
    
$
237,129
    
$
513,279
  
INFORMATION FOR PENSION PLANS WITH A PROJECTED  BENEFIT OBLIGATION IN EXCESS OF PLAN ASSETS
                                
Projected benefit obligation
  
$
249,570
    
$
38,871
    
$
302,632
    
$
599,011
  
Fair value of plan assets
  
$
204,455
    
$
475
    
$
237,129
    
$
513,279
  
WEIGHTED AVERAGE ASSUMPTIONS USED IN DETERMINING ASSETS AND LIABILITIES
                                
Discount rate
    
4.6
%
    
3.0
%
    
3.2
%
    
1.9
%
Rate of compensation increase
    
N/A
      
3.1
%
    
N/A
      
3.0
%
Accumulated benefit obligations
  
$
(249,570
)
  
$
(450,037
)
  
$
(302,632
)
  
$
(577,600
)

Actuarial gains in the US resulting in a decrease to our projected benefit obligation for the year ended April 30, 2022 were primarily due to an increase in the discount rate. Actuarial gains in non-US countries resulting in a decrease to our projected benefit obligation for the year ended April 30, 2022 were primarily due to an increase in the discount rate partially offset by an increase in the UK inflation rate.

Actuarial gains in the US resulting in a decrease to our projected benefit obligation for the year ended April 30, 2021 were primarily due to an increase in the discount rate and updated census data. Actuarial losses in non-US countries resulting in an increase to our projected benefit obligation for the year ended April 30, 2021 were primarily due to an increase in the UK inflation rate, offset by an increase in the discount rate.

Actuarial losses in the US and non-US countries resulting in an increase in our projected benefit obligation for the year ended April 30, 2020 were primarily due to a reduction in discount rates and changes to other assumptions.

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. For those plan assets measured at NAV as defined below, a redemption request can be executed within a 7-day notice. Asset allocation favors a balanced portfolio, with a global aggregated target allocation of approximately 48% equity securities and 52% 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, 2022 and 2021. In accordance with ASU 2015-07, “Fair Value Measurement (Topic 820), Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent),” 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. 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:

  
2022
    
2021
  
   
Level 1
    
Level 2
    
NAV
    
Total
    
Level 1
    
Level 2
    
NAV
    
Total
  
US Plan Assets
                                                
Global Equity Securities: Limited Partnership
  
$
7,477
          
$
77,849
    
$
85,326
                
$
121,569
    
$
121,569
  
Fixed Income Securities: Commingled Trust Funds
                  
119,129
      
119,129
                  
115,560
      
115,560
  
Total Assets
  
$
7,477
          
$
196,978
      
204,455
                
$
237,129
    
$
237,129
  
                                                           
Non-US Plan Assets
                                                          
Equity securities:
                                                          
US equities
  
$
—
    
$
48,443
            
$
48,443
    
$
—
    
$
51,882
     $      
$
51,882
  
Non-US equities
    
—
      
112,162
              
112,162
      
—
      
124,496
              
124,496
  
Balanced managed funds
    
—
      
94,623
              
94,623
      
—
      
103,717
              
103,717
  
Fixed income securities: Commingled funds
    
—
      
185,192
              
185,192
      
1,444
      
236,583
              
238,027
  
Other:
                                                                
Real estate/other
    
—
      
475
              
475
      
—
      
543
              
543
  
Cash and cash equivalents
    
1,338
      
26
              
1,364
      
5,221
      
—
              
5,221
  
Total Non-US plan assets
  
$
1,338
    
$
440,921
    
$
—
    
$
442,259
    
$
6,665
    
$
517,221
    
$
—
    
$
523,886
  
Total plan assets
  
$
8,815
    
$
440,921
    
$
196,978
    
$
646,714
    
$
6,665
    
$
517,221
    
$
237,129
    
$
761,015
  

Expected employer contributions to the defined benefit pension plans in the year ended April 30, 2023 will be approximately $15.6 million, including $12.0 million of minimum amounts required for our non-US plans. From time to time, we may elect to make voluntary contributions to our defined benefit plans to improve their funded status.

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

Fiscal Year
  
US
  
Non-US
  
Total
2023
  
$
15,533
  
$
11,864
  
$
27,397
2024
    
15,666
    
12,307
    
27,973
2025
    
15,315
    
14,845
    
30,160
2026
    
15,125
    
13,419
    
28,544
2027
    
15,200
    
14,292
    
29,492
2028–2032
    
76,222
    
86,389
    
162,611
Total
  
$
153,061
  
$
153,116
  
$
306,177

Retiree Health Benefits

We provide contributory life insurance and health care benefits, subject to certain dollar limitations, for substantially all of our eligible retired US 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, 2022 and 2021, was $1.3 and $1.5 million, respectively. Annual credits for these plans were $(0.1) million for each of the years ended April 30, 2022, 2021, and 2020.

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 $30.3 million, $24.3 million, and $19.0 million in the years ended April 30, 2022, 2021, and 2020, respectively.