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Leases

12 Months Ended

May 31, 2021

Leases [Abstract]

Leases

LEASES

The following table summarizes right-of-use assets and lease liabilities recorded on the Company's Consolidated Balance Sheet for the fiscal year ended May 31, 2021 and May 31, 2020:

			May 31, 2021						May 31, 2020									Location within Consolidated Balance Sheet
Operating leases			$			78.6			$			95.3						Operating lease right-of-use assets, net
Finance leases						10.2						10.9						Property, plant and equipment, net
Total lease assets			$			88.8			$			106.2
Operating leases :
Current portion			$			25.0			$			22.8						Current portion of operating lease liabilities
Non-current portion						67.4						75.7						Long-term operating lease liabilities
Total operating lease liabilities			$			92.4			$			98.5
Finance leases :
Current portion			$			2.2			$			2.1						Other accrued expenses
Non-current portion						8.8						9.5						Other noncurrent liabilities
Total finance lease liabilities			$			11.0			$			11.6
Total lease liabilities			$			103.4			$			110.1

In fiscal 2021, the Company recognized a pretax impairment charge of $9.6 related to operating lease right-of-use assets in connection with its plan to cease use of certain leased office space in New York City and consolidate into its company-owned New York headquarters building and its plan to permanently close 13 of its 54 book fair warehouses in the U.S. as part of a branch consolidation project. Refer to Note 4, "Asset Write Down", for further discussion regarding the impairment.

The following table summarizes the activity for the fiscal year ended May 31, 2021 and May 31, 2020:

																		Location within Consolidated Statements of Operations
			May 31, 2021						May 31, 2020
Operating lease expense (1)			$			28.3			$			28.6						Selling, general and administrative expenses
Finance lease costs :
Depreciation of leased assets						2.3						2.1						Depreciation and amortization
Accretion of lease liabilities						0.4						0.4						Interest expense
Total lease expense			$			31.0			$			31.1

(1) In fiscal 2020, the Company elected to account for rent concessions negotiated in connection with COVID-19 as if they were contemplated as part of the existing contract. Under this accounting model, the Company continued to recognize lease expense as the lessee and rental income as the lessor. There is an immaterial impact from these concessions for the fiscal year ended May 31, 2020. COVID-19 may cause changes in the market that could impact future lease payments.

The following table summarizes certain cash flows information related to the Company's leases for the fiscal year ended May 31, 2021 and May 31, 2020:

			May 31, 2021						May 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases			$			27.4			$			25.4
Operating cash flows from finance leases						0.4						0.4
Financing cash flows from finance leases						2.3						2.0

The following table provides a maturity analysis summary of the Company's lease liabilities recorded on the Company's Consolidated Balance Sheet for the fiscal year ended May 31, 2021:

			Operating Leases									Finance Leases
Fiscal 2022			$			28.7						$			2.6
Fiscal 2023						23.3									2.5
Fiscal 2024						15.8									2.4
Fiscal 2025						9.7									1.6
Fiscal 2026						5.5									1.1
Thereafter						24.5									2.1
Total lease payments			$			107.5						$			12.3
Less: interest						(15.1)									(1.3)
Total lease liabilities			$			92.4						$			11.0

The following table summarizes the weighted-average remaining lease terms and weighted-average discount rates related to the Company's leases recorded on the Company's Consolidated Balance Sheet for the fiscal year ended May 31, 2021 and May 31, 2020:

			2021						2020
Weighted-average remaining lease term (years):
Operating Leases			5.8						5.8
Finance Leases			5.6						5.9
Weighted-average discount rate:
Operating Leases			4.6		%				4.7		%
Finance Leases			4.0		%				3.8		%

Leases

LEASES

The following table summarizes right-of-use assets and lease liabilities recorded on the Company's Consolidated Balance Sheet for the fiscal year ended May 31, 2021 and May 31, 2020:

			May 31, 2021						May 31, 2020									Location within Consolidated Balance Sheet
Operating leases			$			78.6			$			95.3						Operating lease right-of-use assets, net
Finance leases						10.2						10.9						Property, plant and equipment, net
Total lease assets			$			88.8			$			106.2
Operating leases :
Current portion			$			25.0			$			22.8						Current portion of operating lease liabilities
Non-current portion						67.4						75.7						Long-term operating lease liabilities
Total operating lease liabilities			$			92.4			$			98.5
Finance leases :
Current portion			$			2.2			$			2.1						Other accrued expenses
Non-current portion						8.8						9.5						Other noncurrent liabilities
Total finance lease liabilities			$			11.0			$			11.6
Total lease liabilities			$			103.4			$			110.1

In fiscal 2021, the Company recognized a pretax impairment charge of $9.6 related to operating lease right-of-use assets in connection with its plan to cease use of certain leased office space in New York City and consolidate into its company-owned New York headquarters building and its plan to permanently close 13 of its 54 book fair warehouses in the U.S. as part of a branch consolidation project. Refer to Note 4, "Asset Write Down", for further discussion regarding the impairment.

The following table summarizes the activity for the fiscal year ended May 31, 2021 and May 31, 2020:

																		Location within Consolidated Statements of Operations
			May 31, 2021						May 31, 2020
Operating lease expense (1)			$			28.3			$			28.6						Selling, general and administrative expenses
Finance lease costs :
Depreciation of leased assets						2.3						2.1						Depreciation and amortization
Accretion of lease liabilities						0.4						0.4						Interest expense
Total lease expense			$			31.0			$			31.1

(1) In fiscal 2020, the Company elected to account for rent concessions negotiated in connection with COVID-19 as if they were contemplated as part of the existing contract. Under this accounting model, the Company continued to recognize lease expense as the lessee and rental income as the lessor. There is an immaterial impact from these concessions for the fiscal year ended May 31, 2020. COVID-19 may cause changes in the market that could impact future lease payments.

The following table summarizes certain cash flows information related to the Company's leases for the fiscal year ended May 31, 2021 and May 31, 2020:

			May 31, 2021						May 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases			$			27.4			$			25.4
Operating cash flows from finance leases						0.4						0.4
Financing cash flows from finance leases						2.3						2.0

The following table provides a maturity analysis summary of the Company's lease liabilities recorded on the Company's Consolidated Balance Sheet for the fiscal year ended May 31, 2021:

			Operating Leases									Finance Leases
Fiscal 2022			$			28.7						$			2.6
Fiscal 2023						23.3									2.5
Fiscal 2024						15.8									2.4
Fiscal 2025						9.7									1.6
Fiscal 2026						5.5									1.1
Thereafter						24.5									2.1
Total lease payments			$			107.5						$			12.3
Less: interest						(15.1)									(1.3)
Total lease liabilities			$			92.4						$			11.0

The following table summarizes the weighted-average remaining lease terms and weighted-average discount rates related to the Company's leases recorded on the Company's Consolidated Balance Sheet for the fiscal year ended May 31, 2021 and May 31, 2020:

			2021						2020
Weighted-average remaining lease term (years):
Operating Leases			5.8						5.8
Finance Leases			5.6						5.9
Weighted-average discount rate:
Operating Leases			4.6		%				4.7		%
Finance Leases			4.0		%				3.8		%

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- References

No definition available.

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X

- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

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X

- Definition

The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

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