XML 94 R27.htm IDEA: XBRL DOCUMENT v3.24.1.1.u2
Retirement Plans
 12 Months Ended
Apr. 30, 2024
Retirement Benefits [Abstract]  
Retirement Plans 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.
Defined Benefit Plans
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,
202420232022
US Non-US US Non-US US Non-US
Service cost$— $532 $— $796 $— $1,196 
Interest cost11,654 16,069 11,242 13,389 9,451 11,148 
Expected return on plan assets(10,372)(19,443)(9,924)(23,134)(12,144)(28,118)
Amortization of prior service cost(154)60 (154)60 (154)67 
Amortization of net actuarial loss2,446 5,656 2,295 3,851 2,617 4,846 
Curtailment/settlement (credit)— — — (1,828)— (39)
Net pension expense (income)$3,574 $2,874 $3,459 $(6,866)$(230)$(10,900)
Discount rate5.1 %4.8 %4.6 %3.0 %3.2 %1.9 %
Rate of compensation increaseN/A3.0 %N/A3.1 %N/A3.0 %
Expected return on plan assets5.8 %6.4 %5.0 %5.5 %5.3 %5.5 %
In the year ended April 30, 2023, because of a reduction in force, there was a curtailment credit of $(0.3) million related to the retirement allowances for employees of CrossKnowledge, a France Pension Plan, which is reflected in Other (expense) income, net on our Consolidated Statements of (Loss) Income. In addition, in the year ended April 30, 2023 due to the closure of our operations in Russia, there was a curtailment and a settlement credit due to the wind up of the Russia Pension Plan of $(1.5) million which is primarily reflected in Other (expense) income, net on our Consolidated Statements of (Loss) Income.
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, a France pension Plan, which is reflected in Restructuring and related charges (credits) on the Consolidated Statements of (Loss) Income.
The service cost component of net pension expense (income) is reflected in Operating and administrative expenses on our Consolidated Statements of (Loss) Income. The other components of net pension expense (income) are reported separately from the service cost component and below Operating income. Such amounts are reflected in Other (expense) income, net on our Consolidated Statements of (Loss) Income.
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:
20242023
USNon-USUSNon-US
CHANGE IN PLAN ASSETS
Fair value of plan assets, beginning of year$186,607 $302,055 $204,455 $442,259 
Actual return on plan assets(707)(7,276)(5,953)(133,855)
Employer contributions3,672 11,708 3,701 11,600 
Employee contributions— — — — 
Settlements— — — (394)
Benefits paid(16,003)(12,215)(15,596)(10,458)
Foreign currency rate changes— (1,104)— (7,097)
Fair value, end of year$173,569 $293,168 $186,607 $302,055 
CHANGE IN PROJECTED BENEFIT OBLIGATION
Benefit obligation, beginning of year$(235,888)$(343,008)$(249,570)$(474,802)
Service cost— (532)— (796)
Interest cost(11,654)(16,069)(11,242)(13,389)
Actuarial gains15,976 21,258 9,328 127,635 
Benefits paid16,003 12,215 15,596 10,458 
Foreign currency rate changes— 2,009 — 5,416 
Settlements and other— (235)— 2,470 
Benefit obligation, end of year$(215,563)$(324,362)$(235,888)$(343,008)
Underfunded status, end of year$(41,994)$(31,194)$(49,281)$(40,953)
AMOUNTS RECOGNIZED ON THE STATEMENT OF FINANCIAL POSITION    
Noncurrent assets— 2,967 — 830 
Current pension liability(3,093)(1,193)(3,557)(1,203)
Noncurrent pension liability excluding held-for-sale(38,901)(31,931)(45,724)(40,580)
Noncurrent pension liability held-for-sale— (1,037)— — 
Noncurrent pension liability(38,901)(32,968)(45,724)(40,580)
Net amount recognized in statement of financial position$(41,994)$(31,194)$(49,281)$(40,953)
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS (BEFORE TAX) CONSIST OF
Net actuarial losses$(77,025)$(196,705)$(84,367)$(197,701)
Prior service cost gains (losses)1,638 (1,224)1,792 (1,058)
Total accumulated other comprehensive loss$(75,387)$(197,929)$(82,575)$(198,759)
Change in accumulated other comprehensive loss$7,188 $830 $(4,407)$(26,320)
INFORMATION FOR PENSION PLANS WITH AN ACCUMULATED BENEFIT OBLIGATION IN EXCESS OF PLAN ASSETS
Accumulated benefit obligation$215,563 $34,274 $235,888 $35,068 
Fair value of plan assets$173,569 $481 $186,607 $496 
INFORMATION FOR PENSION PLANS WITH A PROJECTED BENEFIT OBLIGATION IN EXCESS OF PLAN ASSETS
Projected benefit obligation$215,563 $34,643 $235,888 $335,109 
Fair value of plan assets$173,569 $481 $186,607 $293,326 
WEIGHTED AVERAGE ASSUMPTIONS USED IN DETERMINING ASSETS AND LIABILITIES
Discount rate5.1 %4.8 %5.1 %4.8 %
Rate of compensation increaseN/A3.0 %N/A3.0 %
Accumulated benefit obligations$(215,563)$(316,107)$(235,888)$(329,329)
Actuarial gains in the US resulting in a decrease to our projected benefit obligation for the year ended April 30, 2024 were primarily due to an increase in the discount rate. Actuarial gains for the non-US plans, resulting in a decrease to our projected benefit obligation for the year ended April 30, 2024 were primarily due to increases in the discount rates.
Actuarial gains in the US resulting in a decrease to our projected benefit obligation for the year ended April 30, 2023 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, 2023 were primarily due to significant increases in the discount rates.
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 30% equity securities and 70% 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, 2024 and 2023. 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:
20242023
Level 1Level 2NAVTotalLevel 1Level 2NAVTotal
US Plan Assets
Global Equity Securities: Limited Partnership$5,598 $58,238 $63,836  $6,537 $73,469 $80,006 
Fixed Income Securities: Commingled Trust Funds 109,733 109,733  106,601 106,601 
Total Assets$5,598 $167,971 $173,569  $6,537 $180,070 $186,607 
Non-US Plan Assets
Equity securities:
US equities$— $22,496 $22,496 $— $48,806 $48,806 
Non-US equities— 9,637 9,637 — 39,618 39,618 
Balanced managed funds— 60,959 60,959 — 58,036 58,036 
Fixed income securities: Commingled funds— 125,223 125,223 — 133,878 133,878 
Other:    
Real estate/other— 480 480 — 496 496 
Cash and cash equivalents1,328 73,045 74,373 1,902 19,319 21,221 
Total Non-US plan assets$1,328 $291,840 $— $293,168 $1,902 $300,153 $— $302,055 
Total plan assets$1,328 $297,438 $167,971 $466,737 $1,902 $306,690 $180,070 $488,662 
Expected employer contributions to the defined benefit pension plans in the year ended April 30, 2025 will be approximately $15.0 million, including $11.8 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 YearUSNon-USTotal
2025$15,887 $13,847 $29,734 
202615,648 13,119 28,767 
202715,659 13,923 29,582 
202815,700 14,132 29,832 
202915,781 15,268 31,049 
2030–203476,966 90,066 167,032 
Total$155,641 $160,355 $315,996 
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, 2024 and 2023, was $0.6 million and $0.7 million, respectively. Annual credits for these plans were $(0.1) million for each of the years ended April 30, 2024, 2023, and 2022.
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 $27.0 million, $30.7 million, and $30.3 million in the years ended April 30, 2024, 2023, and 2022, respectively.