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Discontinued Operations | 6 Months Ended
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Nov. 30, 2015
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | DISCONTINUED OPERATIONS The Company continuously evaluates its portfolio of businesses for both impairment and economic viability, as well as for possible strategic dispositions. The Company monitors the expected cash proceeds to be realized from the disposition of discontinued operations’ assets, and adjusts asset values accordingly. During the six month period ended November 30, 2015, there were no transactions that were classified as discontinued operations. During fiscal 2015, the Company closed or sold several operations. All of these businesses are classified as discontinued operations in the Company’s condensed consolidated financial statements. Educational Technology and Services Business On May 29, 2015, the Company completed the sale of substantially all of the assets comprising its former educational technology and services (“Ed Tech”) business and categorized this business as a discontinued operation. The consideration received was $577.7, of which $34.5 was deposited in escrow as security for potential indemnification and other obligations and $2.7 was received in estimated working capital adjustments. In connection with the sale of the Ed Tech business to the purchaser, the Company entered into a transition services agreement whereby the Company will provide administrative, distribution and other services to the purchaser for a minimum of 6 months and up to a maximum of 24 months. Transition service fees under this agreement are recorded as a reduction to Selling, general and administrative expenses. As of November 30, 2015, a majority of the escrow is subject to release periodically over the next 8 months upon fulfillment of certain service levels under the transition services agreement between the purchaser and the Company and is presented as Restricted cash held in escrow on the condensed consolidated balance sheets. As of November 30, 2015, $9.8 had been released from Restricted cash held in escrow in accordance with the transition services agreement. All Other Discontinued Operations During fiscal 2015, the Company completed a restructuring of the businesses comprising its former Media, Licensing and Advertising segment and discontinued a subscription-based print magazine business, the animation and audio production business, and the game console digital content business, all of which were previously reported in such segment. The following table summarizes the operating results of the discontinued operations for the three and six month periods ended November 30, 2015, respectively:
| Three months ended November 30, 2015 |  | Six months ended November 30, 2015
| Ed Tech |  | All Other |  | Total |  | Ed Tech |  | All Other |  | Total
Revenues | $ | — |  |  | $ | 0.2 |  |  | $ | 0.2 |  |  | $ | — |  |  | $ | 0.3 |  |  | $ | 0.3 |
Operating costs and expenses | 0.3 |  |  | 0.3 |  |  | 0.6 |  |  | 0.9 |  |  | 0.7 |  |  | 1.6 |
Interest income (expense) | — |  |  | 0.1 |  |  | 0.1 |  |  | — |  |  | 0.1 |  |  | 0.1 |
Earnings (loss) before income taxes | $ | (0.3 | ) |  | $ | (0.0 | ) |  | $ | (0.3 | ) |  | $ | (0.9 | ) |  | $ | (0.3 | ) |  | $ | (1.2 | )
Provision (benefit) for income taxes | (0.0 | ) |  | (0.0 | ) |  | (0.0 | ) |  | (0.3 | ) |  | (0.1 | ) |  | (0.4 | )
Earnings (loss) from discontinued operations, net of tax | $ | (0.3 | ) |  | $ | (0.0 | ) |  | $ | (0.3 | ) |  | $ | (0.6 | ) |  | $ | (0.2 | ) |  | $ | (0.8 | )
The following table summarizes the operating results of the discontinued operations for the three and six month periods ended November 30, 2014, respectively:
| Three months ended November 30, 2014 |  | Six months ended November 30, 2014
| Ed Tech |  | All Other |  | Total |  | Ed Tech |  | All Other |  | Total
Revenues | $ | 50.3 |  |  | $ | 4.2 |  |  | $ | 54.5 |  |  | $ | 140.5 |  |  | $ | 7.3 |  |  | $ | 147.8 |
Operating costs and expenses (1) | 48.7 |  |  | 4.1 |  |  | 52.8 |  |  | 104.6 |  |  | 8.1 |  |  | 112.7 |
Earnings (loss) before income taxes | $ | 1.6 |  |  | $ | 0.1 |  |  | $ | 1.7 |  |  | $ | 35.9 |  |  | $ | (0.8 | ) |  | $ | 35.1 |
Provision (benefit) for income taxes | 0.8 |  |  | 0.0 |  |  | 0.8 |  |  | 14.7 |  |  | (0.3 | ) |  | 14.4 |
Earnings (loss) from discontinued operations, net of tax | $ | 0.8 |  |  | $ | 0.1 |  |  | $ | 0.9 |  |  | $ | 21.2 |  |  | $ | (0.5 | ) |  | $ | 20.7 |
(1) For the three and six months ended November 30, 2014, Operating costs and expenses of the continuing operations included costs related to unabsorbed overhead burden associated with the Ed Tech business of $3.5 and $7.4, respectively. These costs were included in the Overhead segment. For the three months ended November 30, 2014, these costs were recorded in Selling general and administrative expenses. For the six months ended November 30, 2014, $0.1 of the costs were recorded in Cost of goods sold and $7.3 were recorded in Selling general and administrative expenses. The following table sets forth the assets and liabilities of the discontinued operations included in the condensed consolidated balance sheets of the Company:
| November 30, 2015 |  | May 31, 2015 |  | November 30, 2014
Accounts receivable, net | $ | 0.1 |  |  | $ | 2.5 |  |  | $ | 43.2 |
Inventories, net | — |  |  | 0.1 |  |  | 13.5 |
Prepaid expenses and other current assets | 0.5 |  |  | 0.5 |  |  | 1.1 |
Current assets of discontinued operations | $ | 0.6 |  |  | $ | 3.1 |  |  | $ | 57.8 |
Property, plant and equipment, net | — |  |  | — |  |  | 2.0 |
Prepublication costs, net | — |  |  | — |  |  | 88.5 |
Royalty advances, net | — |  |  | — |  |  | 1.1 |
Goodwill | — |  |  | — |  |  | 22.7 |
Other intangibles, net | — |  |  | — |  |  | 4.1 |
Other assets and deferred charges | — |  |  | — |  |  | 0.2 |
Noncurrent assets of discontinued operations | $ | — |  |  | $ | — |  |  | $ | 118.6 |
Capital lease obligation | — |  |  | — |  |  | 0.4 |
Accounts payable | — |  |  | 0.1 |  |  | 9.1 |
Accrued royalties | 0.1 |  |  | 0.7 |  |  | 4.8 |
Deferred revenue | 0.1 |  |  | 0.1 |  |  | 47.0 |
Other accrued expenses | 1.4 |  |  | 13.2 |  |  | 4.6 |
Current liabilities of discontinued operations | $ | 1.6 |  |  | $ | 14.1 |  |  | $ | 65.9 |
Capital lease obligation | — |  |  | — |  |  | 0.5 |
Other noncurrent liabilities | — |  |  | — |  |  | 0.1 |
Noncurrent liabilities of discontinued operations | $ | — |  |  | $ | — |  |  | $ | 0.6 |
As of November 30, 2015 and May 31, 2015, assets and liabilities of discontinued operations primarily related to insignificant continuing cash flows from passive activities. As of May 31, 2015, other accrued expenses within the current liabilities of discontinued operations included payables for accrued costs of $12.2 related to the sale of the Ed Tech business that had not been paid as of May 31, 2015. These costs directly relate to the discontinued operations of the Ed Tech business and a majority have been or are expected to be paid in fiscal 2016.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=51716988&loc=SL51721533-107759 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721665-107760 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5C -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721675-107760 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3A -URI http://asc.fasb.org/extlink&oid=51719941&loc=SL51724579-110230 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721663-107760 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51719941&loc=d3e2941-110230 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51717284&loc=d3e1361-107760 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5B -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721673-107760 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3A -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721659-107760 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5A -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721671-107760 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5D -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721677-107760 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51717284&loc=d3e1474-107760 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721683-107760 + Details
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