Restructuring Programs

3 Months Ended

Jul. 31, 2013

6. Restructuring Programs

Restructuring and Reinvestment Program:

As previously disclosed in fiscal year 2013 Form 10-K, the Company initiated a program (the “Restructuring and Reinvestment Program”) to restructure and realign its cost base with current and anticipated future market conditions. The Company is targeting a majority of the cost savings achieved to improve margins and earnings, while the remainder will be reinvested in high growth digital business opportunities.

In the first quarter of fiscal year 2014, the Company recorded pre-tax restructuring charges of $7.8 million, or $5.0 million after tax ($0.08 per share), which are reflected in Restructuring Charges in the Condensed Consolidated Statements of Income. The charges include accrued redundancy and separation benefits of $5.1 million, process reengineering consulting costs of $2.5 million and facility relocation costs of $0.2 million. Approximately $2.0 million, $3.6 million and $0.1 million of the restructuring charge was recorded within the Research, Professional Development, and Education reporting segments, respectively, with the remainder recognized in Shared Service costs.

Including the charges recorded in the fourth quarter of fiscal year 2013, the Company has recorded total restructuring charges under this program of $32.3 million, which includes accrued redundancy and separation benefits of $24.2 million, process reengineering consulting costs of $5.2 million, termination/curtailment costs related to the U.S. defined benefit pension plan of $2.7 million, and facility relocation costs of $0.2 million. Approximately $4.9 million, $9.9 million and $1.2 million of the total restructuring charges were recorded within the Research, Professional Development, and Education reporting segments, respectively, with the remainder recognized in Shared Service costs. The Company expects to record additional restructuring charges for the remainder of fiscal year 2014. During the second quarter of fiscal year 2014, the Company anticipates a restructuring charge of approximately $8 million.

The following table summarizes the activity for the Restructuring and Reinvestment Program liability for the three months ended July 31, 2013 (in thousands):

				Foreign
				Translation
	April 30, 2013	Provisions	Payments	Adjustment	July 31, 2013

Severance	$ 18,803	$ 5,031	$ (697)	$ (72)	$ 23,065
Consulting	1,101	2,511	(1,752)	-	1,860
Facility Relocation	-	213	-	-	213
Total	$ 19,904	$ 7,755	$ (2,449)	$ (72)	$ 25,138

Other Restructuring Programs:

As part of the Company’s ongoing transition and transformation to digital products and services, certain activities were identified in the first quarter of fiscal year 2013 that were discontinued, outsourced, or relocated to a lower cost region. As a result, the Company recorded a pre-tax restructuring charge of approximately $4.8 million, or $3.5 million after tax ($0.06 per share), during the period for redundancy and separation benefits, which is reflected in Restructuring Charges in the Condensed Consolidated Statements of Income. Approximately $3.0 million, $1.3 million and $0.2 million of the restructuring charge was recorded within the Research, Professional Development and Education reporting segments, respectively, with the remainder recognized in Shared Service costs. As of July 31, 2013, all severance payments related to this program have been substantially completed.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References+ Details