v2.3.0.11
Employee Benefit Plans
 3 Months Ended
Aug. 31, 2011
Pension and Other Postretirement Benefits Disclosure [Text Block]

9. Employee Benefit Plans


The following table sets forth components of the net periodic benefit costs for the periods indicated under the Company’s cash balance retirement plan for its United States employees meeting certain eligibility requirements (the “U.S. Pension Plan”), the defined benefit pension plan of Scholastic Limited, an indirect subsidiary of Scholastic Corporation located in the United Kingdom (the “UK Pension Plan”), and the defined benefit pension plan of Grolier Limited, an indirect subsidiary of Scholastic Corporation located in Canada (the “Canadian Pension Plan” and together with the U.S. Pension Plan and the UK Pension Plan, the “Pension Plans”). Also included are the post-retirement benefits, consisting of certain healthcare and life insurance benefits, provided by the Company to its eligible retired United States-based employees (the “Post-Retirement Benefits”). The Pension Plans and Post-Retirement Benefits include participants associated with both continuing operations and discontinued operations.


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension Plans
Three months ended August 31,

 

Post-Retirement Benefits
Three months ended August 31,

 

 

 

2011

 

2010

 

2011

 

2010

 

Components of net periodic benefit costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

—

 

$

0.1

 

$

0.0

 

$

—

 

Interest cost

 

 

2.1

 

 

2.2

 

 

0.5

 

 

0.5

 

Expected return on assets

 

 

(2.7

)

 

(2.4

)

 

—

 

 

—

 

Net amortization of prior service credit

 

 

—

 

 

—

 

 

(0.2

)

 

(0.2

)

Amortization of loss

 

 

0.3

 

 

0.5

 

 

1.0

 

 

0.5

 

Net periodic benefit costs

 

$

(0.3

)

$

0.4

 

$

1.3

 

$

0.8

 


In the second quarter of fiscal 2011, the Company completed the settlement of its outstanding liabilities under the Canadian Pension Plan by purchasing non-participating annuities to service these liabilities prospectively.


The Company’s funding practice with respect to the Pension Plans is to contribute on an annual basis at least the minimum amounts required by applicable laws. For the three months ended August 31, 2011, the Company contributed $0.0 to the U.S. Pension Plan and $0.2 to the UK Pension Plan.


The Company expects, based on actuarial calculations to contribute cash of approximately $8.5 to the Pension Plans for the fiscal year ending May 31, 2012.