XML 62 R13.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Goodwill and Other Intangibles | 6 Months Ended
--- | ---
Nov. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets Disclosure [Text Block] | 7. Goodwill and Other Intangibles The Company assesses goodwill and other intangible assets with indefinite lives annually or more frequently if impairment indicators are such that the goodwill is more likely than not impaired. The Company continues to monitor impairment indicators in light of reduced earnings, changes in market conditions, near and long-term demand for the Company’s products and other relevant factors. In the current quarter, the Company recognized an impairment of $13.4 of goodwill associated with the book clubs reporting unit in the Children’s Book Publishing and Distribution segment. In the second quarter of fiscal year 2014, expected revenues for the reporting unit declined, resulting in an impairment indicator. Revenues in the first fiscal quarter are not significiant for this reporting unit as schools are not in session. As of November 30, 2013, the fair value of the reporting unit was approximately $13.0 less than the carrying value of $66.9. The Company used forecasted cash flows, which were adjusted from those used in the latest annual valuation to reflect the revised outlook for the reporting unit, and to a lesser extent, observable revenue multiples for comparable companies, in determining its fair value. Management revised its outlook for the reporting unit as revenues did not meet expectations during the period, and future revenue expectations were revised consistent with the current period decline. A discount rate of 15.5% and a perpetual growth rate of 3.0% were employed for the discounted cash flow analysis and multiples of 0.4 times historical revenues were employed for market comparisons. The reporting unit is dependent upon internally developed intangible assets including trade names and customer lists which have no carrying value, but have substantial fair value. Upon finalization of step two of the goodwill impairment process, inclusion of these intangible assets is expected to render 100% of the goodwill impaired. The following table summarizes the activity in Goodwill for the periods indicated:
|  | Six months ended November 30, 2013 |  |  | Twelve months ended May 31, 2013 |  |  | Six months ended November 30, 2012 |
Gross beginning balance |  | $ | 178.7 |  |  | $ | 178.5 |  |  | $ | 178.5 |
Accumulated impairment |  |  | (20.8 | ) |  |  | (20.8 | ) |  |  | (20.8 | )
Beginning balance |  | $ | 157.9 |  |  | $ | 157.7 |  |  | $ | 157.7 |
Impairment charge |  |  | (13.4 | ) |  |  | - |  |  |  | - |
Foreign currency translation |  |  | 0.0 |  |  |  | 0.0 |  |  |  | 0.1 |
Other |  |  | - |  |  |  | 0.2 |  |  |  | - |
Gross ending balance |  | $ | 178.7 |  |  | $ | 178.7 |  |  | $ | 178.6 |
Accumulated impairment |  |  | (34.2 | ) |  |  | (20.8 | ) |  |  | (20.8 | )
Ending balance |  | $ | 144.5 |  |  | $ | 157.9 |  |  | $ | 157.8 |
The following table summarizes the activity in Total other intangibles for the periods indicated:
|  | Six months ended November 30, 2013 |  |  | Twelve months ended May 31, 2013 |  |  | Six months ended November 30, 2012 |
Beginning balance - customer lists |  | $ | 3.4 |  |  | $ | 4.3 |  |  | $ | 4.3 |
Additions |  |  | - |  |  |  | 0.1 |  |  |  | 0.1 |
Amortization expense |  |  | (0.5 | ) |  |  | (1.0 | ) |  |  | (0.5 | )
Foreign currency translation |  |  | 0.0 |  |  |  | 0.0 |  |  |  | 0.0 |
Customer lists, net of accumulated amortization of $2.7, $2.3 and $1.8, respectively |  | $ | 2.9 |  |  | $ | 3.4 |  |  | $ | 3.9 |
Beginning balance - other intangibles |  | $ | 9.2 |  |  | $ | 10.4 |  |  | $ | 10.4 |
Additions |  |  | - |  |  |  | 0.2 |  |  |  | - |
Amortization expense |  |  | (0.7 | ) |  |  | (1.5 | ) |  |  | (0.8 | )
Foreign currency translation |  |  | 0.0 |  |  |  | - |  |  |  | - |
Other |  |  | - |  |  |  | 0.1 |  |  |  | 0.1 |
Other intangibles, net of accumulated amortization of $12.7, $12.0 and $11.3, respectively |  | $ | 8.5 |  |  | $ | 9.2 |  |  | $ | 9.7 |
Total other intangibles subject to amortization |  | $ | 11.4 |  |  | $ | 12.6 |  |  | $ | 13.6 |
Trademarks and other |  | $ | 2.0 |  |  | $ | 2.0 |  |  | $ | 2.0 |
Total other intangibles not subject to amortization |  | $ | 2.0 |  |  | $ | 2.0 |  |  | $ | 2.0 |
Total other intangibles |  | $ | 13.4 |  |  | $ | 14.6 |  |  | $ | 15.6 |
Amortization expense for Total other intangibles was $1.2 and $1.3 for the six months ended November 30, 2013 and 2012, respectively. Intangible assets with definite lives consist principally of customer lists, covenants not to compete and trademark rights. Intangible assets with definite lives are amortized over their estimated useful lives. The weighted-average remaining useful lives of all amortizable intangible assets is 7 years.

X
- Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16323-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16373-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16265-109275 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13854-109267 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration