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Discontinued Operations
 12 Months Ended
May 31, 2017
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. As a result, the Company closed or sold several operations during fiscal 2015. All of these businesses were classified as discontinued operations in the Company’s Consolidated Financial Statements.

During the twelve months ended May 31, 2017 and 2016 the Company did not dispose of any components of the business that would meet the criteria for discontinued operations reporting.

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. In connection with the sale of the Ed Tech business to the purchaser, the Company entered into a transition services agreement whereby the Company provided administrative, distribution and other services to the purchaser. Transition service fees under this agreement were recorded as a reduction to Selling, general and administrative expenses. All services under the transition services agreement were terminated on August 1, 2016. As of May 31, 2017, the Company had adequately fulfilled all service requirements and there were no hold backs from the escrow for breaches of representations and warranties or other claims.

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 fiscal year ended May 31, 2017. Fiscal year 2017 operating results primarily relate to insignificant continuing cash flows from passive activities:
 
Ed Tech
 
All Other
 
Total
Revenues
$
0.0

 
$
0.4

 
$
0.4

Operating costs and expenses
0.8

 
0.1

 
0.9

Interest income (expense)
—

 
0.1

 
0.1

Earnings (loss) before income taxes
$
(0.8
)
 
$
0.4

 
$
(0.4
)
Provision (benefit) for income taxes
(0.3
)
 
0.1

 
(0.2
)
Earnings (loss) from discontinued operations, net of tax
$
(0.5
)
 
$
0.3

 
$
(0.2
)


The following table summarizes the operating results of the discontinued operations for the fiscal year ended May 31, 2016: 
 
Ed Tech
 
All Other
 
Total
Revenues
$
0.0

 
$
0.8

 
$
0.8

Operating costs and expenses (1)
1.5

 
1.2

 
2.7

Interest income (expense)
—

 
0.1

 
0.1

Gain (loss) on sale
(2.9
)
 
—

 
(2.9
)
Earnings (loss) before income taxes
$
(4.4
)
 
$
(0.3
)
 
$
(4.7
)
Provision (benefit) for income taxes
(1.1
)
 
(0.1
)
 
(1.2
)
Earnings (loss) from discontinued operations, net of tax
$
(3.3
)
 
$
(0.2
)
 
$
(3.5
)
1) Gain (loss) on sale included the finalization of the working capital adjustments from the sale of the Ed Tech business, resulting in a payment to the purchaser of $2.9.

The following table summarizes the operating results of the discontinued operations for the fiscal year ended May 31, 2015: 
 
Ed Tech
 
All Other
 
Total
Revenues
$
217.4

 
$
11.7

 
$
229.1

Operating costs and expenses (1)
208.8

 
14.5

 
223.3

Interest income (expense)
—

 
0.1

 
0.1

Gain (loss) on sale
454.0

 
—

 
454.0

Earnings (loss) before income taxes
$
462.6

 
$
(2.7
)
 
$
459.9

Provision (benefit) for income taxes
181.8

 
(1.0
)
 
180.8

Earnings (loss) from discontinued operations, net of tax
$
280.8

 
$
(1.7
)
 
$
279.1

(1) Operating costs and expenses included costs related to unabsorbed overhead burden associated with the former educational technology and services business of $15.8.








The following table sets forth the assets and liabilities of the discontinued operations included in the Consolidated Balance Sheets of the Company as of May 31:
 
2017
 
2016
Accounts receivable, net
$
0.0

 
$
0.0

Prepaid expenses and other current assets
0.4

 
0.5

Current assets of discontinued operations
$
0.4

 
$
0.5

 
 
 
 
Accounts payable
—

 
0.0

Accrued royalties
0.5

 
0.0

Other accrued expenses
—

 
1.2

Current liabilities of discontinued operations
$
0.5

 
$
1.2



As of May 31, 2017 and 2016, assets and liabilities of discontinued operations primarily related to insignificant continuing cash flows from passive activities.