Restructuring Charges

12 Months Ended

Apr. 30, 2015

Note 6 – Restructuring Charges

In fiscal years 2015, 2014 and 2013, the Company recorded pre-tax restructuring charges of $28.8 million, or $20.3 million after tax ($0.34 per share), $42.7 million, or $28.3 million after tax ($0.48 per share) and $29.3 million, or $19.8 million after tax ($0.33 per share), respectively, which are reflected in the Restructuring Charges line item in the Consolidated Statements of Income and described in more detail below:

Restructuring and Reinvestment Program:

In fiscal year 2013, 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.

The following table summarizes the pre-tax restructuring charges related to this program (in thousands):

	2015	2014	2013	Total Charges Incurred to Date
Charges by Segment:
Research	$4,555	$7,774	$2,896	$15,225
Professional Development	4,385	11,860	6,284	22,529
Education	1,571	891	1,118	3,580
Shared Services	18,293	22,197	14,154	54,644
Total Restructuring Charges	$28,804	$42,722	$24,452	$95,978

Charges by Activity:
Severance	$17,093	$25,962	$19,706	$62,761
Process reengineering consulting	301	8,556	2,618	11,475
Other activities	11,410	8,204	2,128	21,742
Total Restructuring Charges	$28,804	$42,722	$24,452	$95,978

Other Activities mainly reflect lease and other contract termination costs and the curtailment of the U.K. and Canadian defined benefit pension plans in fiscal year 2015 and the U.S defined benefit pension plan in fiscal year 2013.

The following table summarizes the activity for the Restructuring and Reinvestment Program liability in fiscal year 2015 (in thousands):

				Foreign
	April 30,			Translation &	April 30,
	2014	Charges	Payments	Reclassifications	2015
Severance	$29,255	$17,093	$(26,716)	$(838)	$18,794
Process reengineering consulting	722	301	(1,024)	1	-
Other activities	4,995	11,410	(4,601)	55	11,859
Total	$34,972	$28,804	$(32,341)	$(782)	$30,653

The restructuring liability for accrued Severance costs is reflected in Accrued Employment Costs in the Consolidated Statements of Financial Position while the liability for Process reengineering consulting costs are reflected in Other Accrued Liabilities. Approximately $0.3 million and $11.6 million of the Other Activities are reflected in Other Accrued Liabilities and Other Long-Term Liabilities, respectively.

Other Restructuring Programs:

As part of the Company’s ongoing transition and transformation to digital products and services, certain activities were identified in fiscal year 2013 that were discontinued, outsourced, or relocated to lower cost regions. 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), for redundancy and separation benefits. 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 Services costs. In fiscal year 2014, the Company completed all remaining payments under the program.