Segment Information

6 Months Ended

Oct. 31, 2016

Segment Information [Abstract]

Segment Information

8.      Segment Information

The Company is a global provider of knowledge and learning services primarily in areas of science, technology, medicine, mathematics/engineering, and business/finance. Effective August 1, 2016, the Company completed a number of changes to its organizational structure that resulted in a change in how the Company manages its businesses, allocates resources and measures performance. As a result, the Company has revised its reportable segments to reflect how management currently reviews financial information and makes operating decisions.  For the second quarter ended October 31, 2016, the company’s new segment reporting structure consists of three reportable segments as follows:

The Research segment provides scientific, technical, medical, and scholarly journals, as well as related content and services, for academic, corporate, and government libraries, learned societies, and individual researchers and other professionals. Research also includes the Company’s recently acquired Atypon. Atypon is a publishing-software and service provider that enables scholarly and professional societies and publishers to deliver, host, enhance, market and manage their content on the web. Research customers include academic, corporate, government, and public libraries; researchers; scientists; clinicians; engineers and technologists; scholarly and professional societies; and students and professors. The Company’s Research products are sold and distributed globally in digital and print formats through multiple channels, including research libraries and library consortia, independent subscription agents, direct sales to professional society members, and other customers.

The Publishing segment provides scientific, professional development, and education books and related content, as well as test preparation services and course workflow tools, to libraries, corporations, students, professionals, and researchers.  Communities served include scientific, technical, medical and scholarly research; business, finance, accounting, management, leadership, technology, behavioral health, engineering/architecture, test prep and certification, and education. Products are developed in print and digital formats for worldwide distribution through multiple channels, including chain and online booksellers, libraries, colleges and universities, corporations, direct to consumer, websites, distributor networks and other online applications.

The Solutions segment provides online graduate degree program management services for higher education institutions   and learning, development, and assessment services for businesses and professionals.  Graduate degree programs include business and finance, nursing, engineering, etc.

The Company reports its segment information in accordance with the provisions of Financial Accounting Standards Board Accounting Standards Codification Topic 280, “Segment Reporting,” (“FASB ASC Topic 280”).  All prior-period amounts have been adjusted to reflect the reportable segment change.

The Company uses occupied square footage of space; number of employees; units shipped; specific identification/activity-based; gross profit; revenue and number of invoices to allocate shared service costs to each business segment.

Segment information is as follows (in thousands):

	For the Three Months		For the Six Months
	Ended October 31,		Ended October 31,
	2016	2015	2016	2015
RESEARCH
Revenue	$205,994	$207,662	$413,218	$412,364
Contribution to Profit	$60,292	$64,199	$120,727	$127,413
PUBLISHING
Revenue	$163,300	$176,258	$308,261	$348,011
Contribution to Profit	$36,490	$34,319	$55,832	$64,145
SOLUTIONS
Revenue	$56,294	$49,442	$108,394	$95.968
Contribution to Profit	$5,359	$2,434	$5,506	$(1,591)
Total Contribution to Profit	$102,141	$100,952	$182,065	$189,967
Unallocated Shared Services and Administrative Costs	(54,497)	(40,687)	(90,494)	(84,793)
Operating Income	$47,644	$60,265	$91,571	$105,174

The following table reflects total Shared Services and Administrative costs by function, which are partially allocated to business segments based on the methodologies described above:

	For the Three Months		For the Six Months
	Ended October 31,		Ended October 31,
Total Shared Services and Administrative Costs:	2016	2015	2016	2015
Distribution & Operation Services	$19,146	$20,085	$38,709	$39,864
Technology & Content Management	66,919	62,609	137,223	123,616
Finance	11,942	10,754	23,501	23,310
Other Administration	30,068	31,627	49,651	61,798
One-time Pension Settlement (See Note 12)	8,842	-	8,842	-
Restructuring Charges (see Note 7)	5,879	2,798	4,674	5,854
Total	$142,796	$127,873	$262,600	$254,442

	For the Three Months		For the Six Months
	Ended October 31,		Ended October 31,
Total Revenue by Product/Service:	2016	2015	2016	2015
Journals	$203,516	$207,663	$410,740	$412,364
Books and Reference Material	125,602	142,066	251,161	294,574
Online Program Management	28,007	23,149	51,179	43,697
Corporate Learning	12,141	10,488	27,547	23,237
Professional Assessment	16,146	15,805	29,668	29,034
Course Workflow Solutions	19,840	18,446	20,706	19,466
Platform Services (Atypon)	2,478	-	2,478	-
Other	17,858	15,745	36,394	33,971
Total	$425,588	$433,362	$829,873	$856,343