Restructuring and Related Charges

3 Months Ended

Jul. 31, 2023

Restructuring and Related Activities [Abstract]

Global Restructuring Program

In May 2022, the Company initiated a global program (Global Restructuring Program) to restructure and align our cost base with current and anticipated future market conditions, which was previously referred to as the Fiscal Year 2023 Restructuring Program. This program included severance related charges for the elimination of certain positions, the exit of certain leased office space, and the reduction of our occupancy at other facilities. Under this program, we reduced our real estate square footage occupancy by approximately 22%.

In the three months ended July 31, 2023, we expanded the scope of the program to include those actions that will focus Wiley on its leading global position in the development and application of new knowledge and drive greater profitability, growth, and cash flow. We will focus on our strongest and most profitable businesses and large market opportunities in Research and Learning, as well as streamline our organization and rightsize our cost structure to reflect these portfolio actions. As part of the Global Restructuring Program, we are further reducing our real estate square footage occupancy by approximately 6% due to actions taken in the three months ended July 31, 2023.

The following tables summarize the pretax restructuring and related charges related to the Global Restructuring Program:


	Three Months Ended July 31,				Total Charges Incurred to Date
	2023		2022
Charges by Segment:
Research	$	1,947	$	81	$	4,360
Learning	218		3,131		8,022
Held for Sale or Sold	2,623		3,613		8,409
Corporate Expenses	6,992		14,916		39,871
Total Restructuring and Related Charges	$	11,780	$	21,741	$	60,662

Charges by Activity:
Severance and termination benefits	$	5,944	$	12,097	$	31,771
Impairment of operating lease ROU assets and property and equipment	1,575		6,106		14,271
Acceleration of expense related to operating lease ROU assets and property and equipment	364		1,840		2,504
Facility related charges, net	829		1,698		4,979
Consulting costs	1,823		—		4,108
Other activities	1,245		—		3,029
Total Restructuring and Related Charges	$	11,780	$	21,741	$	60,662

The impairment charges of $1.6 million and $6.1 million for the three months ended July 31, 2023 and 2022, respectively, included the impairment of operating lease ROU assets of $1.2 million and $2.9 million, respectively, related to certain leases that will be subleased, and the related property and equipment of $0.4 million and $3.2 million, respectively described further below. In the three months ended July 31, 2023, these charges were recorded in the Research segment and in the three months ended July 31, 2022, these charges were recorded in Corporate Expenses.

The acceleration of expense of $0.4 million and $1.8 million for the three months ended July 31, 2023 and 2022, respectively, included the acceleration of rent expense associated with operating lease ROU assets of $0.3 million and $0.9 million, respectively, related to certain leases that will be abandoned or terminated, and the related depreciation and amortization of property and equipment of $0.1 million and $0.9 million, respectively.

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 $0.9 million in the three months ended July 31, 2023, and $2.4 million in the three months ended July 31, 2022, and were 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 $0.8 million and $1.7 million in the three months ended July 31, 2023 and 2022, respectively.

We also incurred consulting costs of $1.8 million and other activities, which includes relocation and other charges, of $1.2 million in the three months ended July 31, 2023, respectively.

The following table summarizes the activity for the Global Restructuring Program liability for the three months ended July 31, 2023:


	April 30, 2023		Charges		Payments		Foreign Translation & Other Adjustments		July 31, 2023
Severance and termination benefits	$	4,572	$	5,944	$	(3,271)	$	24	$	7,269
Consulting costs	—		1,823		(1,425)		—		398
Other activities	9		1,245		(595)		(1)		658
Total	$	4,581	$	9,012	$	(5,291)	$	23	$	8,325

Approximately $6.8 million of the restructuring liability for accrued severance and termination benefits is reflected in Accrued employment costs and approximately $0.5 million is reflected in Other long-term liabilities on our Unaudited Condensed Consolidated Statement of Financial Position. The liabilities for Consulting costs and Other activities are reflected in Other accrued liabilities on our Unaudited Condensed Consolidated Statement of Financial Position.