XML 34 R9.htm IDEA: XBRL DOCUMENT v2.4.0.8
Segment Information
 9 Months Ended
Feb. 28, 2014
Segment Reporting [Abstract]  
Segment Reporting Disclosure
Segment Information
 
The Company categorizes its businesses into five reportable segments: Children’s Book Publishing and Distribution; Educational Technology and Services; Classroom and Supplemental Materials Publishing; Media, Licensing and Advertising; and International. This classification reflects the nature of products and services consistent with the method by which the Company’s chief operating decision-maker assesses operating performance and allocates resources.
 
•
Children’s Book Publishing and Distribution operates as an integrated business which includes the publication and distribution of children’s books, media and interactive products in the United States through its book clubs and book fairs in its school channels and through the trade channel. This segment is comprised of three operating segments.

•
Educational Technology and Services includes the production and distribution to schools of curriculum-based learning technology and materials for grades pre-kindergarten to 12 in the United States, together with related implementation and assessment services and school consulting services. This segment is comprised of one operating segment.

•
Classroom and Supplemental Materials Publishing includes the publication and distribution to schools and libraries of children’s books, classroom magazines, supplemental classroom materials and print and on-line reference and non-fiction products for grades pre-kindergarten to 12 in the United States. This segment is comprised of two operating segments.

•
Media, Licensing and Advertising includes the production and/or distribution of digital media, consumer promotions and merchandising and advertising revenue, including sponsorship programs. This segment is comprised of two operating segments.

•
International includes the publication and distribution of products and services outside the United States by the Company’s international operations, and its export and foreign rights businesses. This segment is comprised of three operating segments.
 
 
Children’s
Book
Publishing
and
Distribution(1)
 
Educational
Technology
and
 Services
 
Classroom and
Supplemental
Materials
Publishing
 
Media,
Licensing
and
Advertising(1)
 
Overhead(1)(2)
 
Total
Domestic
 
International
 
Total
Three months ended February 28, 2014
 
 
 

 
 

 
 
 
 
 
 

 
 
 
 

Revenues
$
190.0

 
$
35.8

 
$
44.5

 
$
12.2

 
$
—

 
$
282.5

 
$
91.0

 
$
373.5

Bad debt expense
0.2

 
0.4

 
0.4

 
0.1

 
—

 
1.1

 
1.4

 
2.5

Depreciation and amortization(3)
7.8

 
7.1

 
2.7

 
1.4

 
8.7

 
27.7

 
1.9

 
29.6

Segment operating income (loss)
(10.6
)
 
(10.7
)
 
1.3

 
(1.5
)
 
(12.9
)
 
(34.4
)
 
0.1

 
(34.3
)
Expenditures for long-lived assets including royalty advances
8.9

 
7.1

 
2.3

 
2.6

 
256.8

 
277.7

 
2.6

 
280.3

Three months ended February 28, 2013
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Revenues
$
187.5

 
$
41.8

 
$
43.2

 
$
11.7

 
$
—

 
$
284.2

 
$
94.4

 
$
378.6

Bad debt expense
(1.6
)
 
0.5

 
—

 
—

 
—

 
(1.1
)
 
0.5

 
(0.6
)
Depreciation and amortization(3)
7.7

 
5.8

 
2.4

 
1.1

 
10.3

 
27.3

 
1.9

 
29.2

Segment operating income (loss)
(9.9
)
 
(3.5
)
 
(0.2
)
 
(2.2
)
 
(13.6
)
 
(29.4
)
 
2.0

 
(27.4
)
Expenditures for long-lived assets including royalty advances
11.9

 
10.6

 
2.7

 
1.5

 
7.6

 
34.3

 
3.5

 
37.8


 
Children’s Book
Publishing
and
Distribution(1)
 
Educational
Technology
and
 Services
 
Classroom and
Supplemental
Materials
Publishing
 
Media,
Licensing
and
Advertising(1)
 
Overhead(1)(2)
 
Total
Domestic
 
International
 
Total
Nine months ended
February 28, 2014
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Revenues
$
596.7

 
$
191.5

 
$
141.4

 
$
38.1

 
$
—

 
$
967.7

 
$
305.3

 
$
1,273.0

Bad debt expense
1.6

 
0.8

 
1.0

 
0.2

 
—

 
3.6

 
2.8

 
6.4

Depreciation and amortization(3)
23.6

 
21.0

 
7.8

 
2.5

 
29.2

 
84.1

 
5.2

 
89.3

Asset impairments (4)
13.4

 
—

 
—

 
—

 
—

 
13.4

 
—

 
13.4

Segment operating income (loss)
(3.2
)
 
32.4

 
10.4

 
(3.8
)
 
(42.9
)
 
(7.1
)
 
21.6

 
14.5

Segment assets at 2/28/14
442.2

 
162.1

 
145.1

 
26.5

 
558.7

 
1,334.6

 
252.9

 
1,587.5

Goodwill at 2/28/14
40.9

 
22.7

 
65.4

 
5.4

 
—

 
134.4

 
10.1

 
144.5

Expenditures for long-lived assets including royalty advances
30.8

 
22.9

 
6.9

 
6.2

 
264.8

 
331.6

 
7.8

 
339.4

Long-lived assets at 2/28/14
145.8

 
118.1

 
89.9

 
15.2

 
418.8

 
787.8

 
62.7

 
850.5

Nine months ended
February 28, 2013
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Revenues
$
605.8

 
$
174.0

 
$
134.3

 
$
43.1

 
$
—

 
$
957.2

 
$
328.3

 
$
1,285.5

Bad debt expense
—

 
0.6

 
1.2

 
—

 
—

 
1.8

 
2.1

 
3.9

Depreciation and amortization(3)
23.1

 
17.1

 
6.7

 
2.6

 
31.0

 
80.5

 
5.3

 
85.8

Asset impairments (4)
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Segment operating income (loss)
4.6

 
26.6

 
4.6

 
—

 
(37.7
)
 
(1.9
)
 
29.5

 
27.6

Segment assets at 2/28/13
549.9

 
177.1

 
159.9

 
25.5

 
433.7

 
1,346.1

 
298.9

 
1,645.0

Goodwill at 2/28/13
54.3

 
22.7

 
65.4

 
5.4

 
—

 
147.8

 
10.2

 
158.0

Expenditures for long-lived assets including royalty advances
39.1

 
28.0

 
6.9

 
3.4

 
25.9

 
103.3

 
8.6

 
111.9

Long-lived assets at 2/28/13
170.2

 
111.8

 
90.2

 
12.2

 
241.5

 
625.9

 
68.4

 
694.3

 

(1)
As discussed under “Discontinued Operations” in Note 1, “Basis of Presentation,” the Company closed certain operations during fiscal 2012 and fiscal 2013. All of these businesses are classified as discontinued operations in the Company’s financial statements and, as such, are not reflected in this table.

(2)
Overhead includes all domestic corporate amounts not allocated to segments, including expenses and costs related to the management of corporate assets. Unallocated assets are principally comprised of deferred income taxes and property, plant and equipment related to the Company’s headquarters in the metropolitan New York area, its fulfillment and distribution facilities located in Missouri and its facility located in Connecticut. Overhead also includes amounts previously allocated to the Children’s Book Publishing and Distribution segment for the computer club business that was discontinued in the fourth quarter of fiscal 2013.

(3)
Includes depreciation of property, plant and equipment and amortization of intangible assets, prepublication and production costs.

(4)
Includes an impairment of goodwill (see Note 7, “Goodwill and Other Intangibles”).