XML 26 R15.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Employee Benefit Plans | 9 Months Ended
--- | ---
Feb. 28, 2018
Retirement Benefits [Abstract] |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The following table sets forth components of the net periodic (benefit) cost 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”) and the defined benefit pension plan of Scholastic Ltd., an indirect subsidiary of Scholastic Corporation located in the United Kingdom (the “UK Pension Plan” and, together with the U.S. 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.
| U.S. Pension Plan |  | UK Pension Plan |  | Post-Retirement Benefits
| Three months ended February 28, |  | Three months ended February 28, |  | Three months ended February 28,
| 2018 |  | 2017 |  | 2018 |  | 2017 |  | 2018 |  | 2017
Components of net periodic (benefit) cost: |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 0.0 |  |  | $ | 0.0 |
Interest cost | 0.5 |  |  | 0.8 |  |  | 0.3 |  |  | 0.3 |  |  | 0.2 |  |  | 0.2 |
Expected return on assets | (1.1 | ) |  | (1.5 | ) |  | (0.3 | ) |  | (0.3 | ) |  | — |  |  | — |
Benefit cost of settlement event | 39.6 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Amortization of (gain) loss | 0.3 |  |  | 0.2 |  |  | 0.3 |  |  | 0.2 |  |  | 0.0 |  |  | (1.0 | )
Net periodic (benefit) cost | $ | 39.3 |  |  | $ | (0.5 | ) |  | $ | 0.3 |  |  | $ | 0.2 |  |  | $ | 0.2 |  |  | $ | (0.8 | )
| U.S. Pension Plan |  | UK Pension Plan |  | Post-Retirement Benefits
| Nine months ended February 28, |  | Nine months ended February 28, |  | Nine months ended February 28,
| 2018 |  | 2017 |  | 2018 |  | 2017 |  | 2018 |  | 2017
Components of net periodic (benefit) cost: |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 0.0 |  |  | $ | 0.0 |
Interest cost | 1.9 |  |  | 2.4 |  |  | 0.8 |  |  | 0.9 |  |  | 0.7 |  |  | 0.8 |
Expected return on assets | (4.0 | ) |  | (4.6 | ) |  | (0.8 | ) |  | (0.8 | ) |  | — |  |  | — |
Net amortization of prior service credit | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Benefit cost of settlement event | 55.0 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Amortization of (gain) loss | 0.9 |  |  | 0.7 |  |  | 0.9 |  |  | 0.6 |  |  | 0.0 |  |  | 0.2 |
Net periodic cost (credit) | $ | 53.8 |  |  | $ | (1.5 | ) |  | $ | 0.9 |  |  | $ | 0.7 |  |  | $ | 0.7 |  |  | $ | 1.0 |
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 nine months ended February 28, 2018, the Company made no contribution to the U.S. Pension Plan and contributed $0.8 to the UK Pension Plan. The Company expects, based on actuarial calculations, to contribute cash of approximately $1.1 to the UK Pension Plan for the fiscal year ending May 31, 2018. On July 20, 2016, the Board approved the termination of the U.S. Pension Plan, in which all benefit accruals were previously frozen as of June 1, 2009. Based on the U.S. Pension Plan’s funded status and the frozen benefit, it was determined that the on-going costs of maintaining the U.S. Pension Plan were growing at a greater rate than the benefit delivered to the Company’s employees and former employees. During the nine months ended February 28, 2018, the U.S. Pension Plan made $37.8 of lump sum benefit payments to vested plan participants in excess of interest costs. Then, on February 14, 2018, the Company agreed to purchase group annuity contracts for the remaining U.S. Pension Plan participants. The total cost of these contracts was $86.3, paid to the respective insurers on February 21, 2018, resulting in a final settlement charge. The net funded asset position of the U.S. Pension Plan had previously included the value of the insurance contracts and lump sums settled prior to the purchase of such contracts. The U.S. Pension Plan's asset balance was sufficient to fund the purchase of these insurance contracts as well as any remaining benefit obligations and plan-related operating expenses, with no additional cost to the Company as the plan sponsor. As a result, a remeasurement was completed on the final settlement date and a pretax settlement charge of $55.0 was recognized in the Company's Condensed Consolidated Statement of Operations in Other components of net periodic benefit (cost) as part of Earnings (loss) from continuing operations before income taxes. The fair value of the U.S. Pension Plan assets as of February 20, 2018 was used in determining the appropriate unrecognized loss to be used in the pretax settlement charge. The net funded asset position of the U.S. Pension Plan as of February 28, 2018 is estimated to be $2.3. This amount reflects an asset of $3.6 that will be used to pay approximately $1.3 of annuity benefit payments in the fourth quarter of fiscal 2018 and any plan-related expenses. There are no actuarial assumptions reflected in any U.S. Pension Plan estimates and there is no ongoing periodic benefit cost for the remainder of fiscal 2018. Any difference between actual payments made and the net funded asset position measured at February 28, 2018, will be treated as an actuarial gain/loss and will be fully recognized in Other components of net periodic benefit (cost) as part of Earnings (loss) from continuing operations before income taxes.

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration