Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Quarterly Report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended

August 31, 2024

Commission File No.

000-19860

SCHOLASTIC CORPORATION

(Exact name of Registrant as specified in its charter)


Delaware		13-3385513
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)
557 Broadway,
New York,	New York	10012
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (212) 343-6100


Title of Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, $0.01 par value	SCHL	The NASDAQ Stock Market LLC

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of Common Stock, as of the latest practicable date:


Title of each class						Number of shares outstanding as of August 31, 2024
Common Stock, $0.01 par value						27,309,294
Class A Stock, $0.01 par value						828,100

SCHOLASTIC CORPORATION

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED August 31, 2024

INDEX



Part I - Financial Information		Page

Item 1.	Financial Statements

	Condensed Consolidated Statements of Operations (Unaudited)	3

	Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)	4

	Condensed Consolidated Balance Sheets (Unaudited)	5

	Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited)	6

	Condensed Consolidated Statements of Cash Flows (Unaudited)	7

	Notes to Condensed Consolidated Financial Statements (Unaudited)	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	30

Item 4.	Controls and Procedures	31

Part II - Other Information

Item 1.	Business	32

Item 1a.	Risk Factors	32

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34

I tem 5.	O ther Information	35

Item 6.	Exhibits	37

Signatures		38

PART I - FINANCIAL INFORMATION


Item 1. Financial Statements


SCHOLASTIC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED (Dollar amounts in millions, except per share data)


	Three months ended
	August 31,
	2024		2023
Revenues	$	237.2	$	228.5
Operating costs and expenses:
Cost of goods sold		128.3		130.0
Selling, general and administrative expenses		182.1		184.2
Depreciation and amortization		15.3		13.4


Total operating costs and expenses		325.7		327.6
Operating income (loss)		(88.5)		(99.1)
Interest income (expense), net		(3.0)		1.4
Other components of net periodic benefit (cost)		(0.3)		(0.3)

Earnings (loss) before income taxes		(91.8)		(98.0)
Provision (benefit) for income taxes		(29.3)		(23.8)
Net income (loss)	$	(62.5)	$	(74.2)


Basic and diluted earnings (loss) per share of Class A and Common Stock
Basic	$	(2.21)	$	(2.35)
Diluted	$	(2.21)	$	(2.35)

See accompanying notes


SCHOLASTIC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - UNAUDITED (Dollar amounts in millions)


	Three months ended
	August 31,
	2024		2023
Net income (loss)	$	(62.5)	$	(74.2)
Other comprehensive income (loss), net:
Foreign currency translation adjustments		8.2		1.8
Pension and postretirement adjustments (net of tax)		0.2		0.2
Total other comprehensive income (loss), net	$	8.4	$	2.0
Comprehensive income (loss)	$	(54.1)	$	(72.2)

See accompanying notes


SCHOLASTIC CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED (Dollar amounts in millions, except per share data)


	August 31, 2024		May 31, 2024		August 31, 2023
	(unaudited)		(audited)		(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	84.1	$	113.7	$	125.8
Accounts receivable, net		201.1		235.0		201.9
Inventories, net		310.3		264.2		353.2
Income tax receivable		46.1		15.2		33.4
Prepaid expenses and other current assets		73.5		48.8		70.4

Total current assets		715.1		676.9		784.7
Noncurrent Assets:
Property, plant and equipment, net		525.4		511.9		523.3
Prepublication costs, net		48.4		49.5		55.0
Investment in film and television programs, net		40.4		—		—
Operating lease right-of-use assets, net		105.0		99.1		96.4
Royalty advances, net		65.1		57.8		58.6
Goodwill		204.4		132.8		132.8
Other intangible assets, net		94.7		10.3		9.4
Noncurrent deferred income taxes		22.6		23.1		20.5
Other assets and deferred charges		138.9		109.8		91.6
Total noncurrent assets		1,244.9		994.3		987.6
Total assets	$	1,960.0	$	1,671.2	$	1,772.3

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Lines of credit and current portion of long-term debt	$	6.1	$	6.0	$	5.9
Film related obligations		20.5		—		—
Accounts payable		184.0		138.5		167.7
Accrued royalties		77.5		48.5		72.0
Deferred revenue		173.9		161.1		171.1
Other accrued expenses		139.1		156.3		145.9
Accrued income taxes		2.1		1.9		13.2
Operating lease liabilities		25.2		22.4		22.9
Total current liabilities		628.4		534.7		598.7
Noncurrent Liabilities:
Long-term debt		225.0		—		—
Operating lease liabilities		90.6		89.2		83.1
Film related obligations		13.6		—		—
Other noncurrent liabilities		45.1		29.2		35.9
Total noncurrent liabilities		374.3		118.4		119.0
Commitments and Contingencies (see Note 5)		—		—		—
Stockholders’ Equity:
Preferred Stock, $1.00 par value: Authorized, 2.0 shares; Issued and Outstanding, none	$	—	$	—	$	—
Class A Stock, $0.01 par value: Authorized, 3.2, 3.2, and 4.0 shares, respectively; Issued and Outstanding, 0.8, 0.8, and 1.7 shares, respectively		0.0		0.0		0.0
Common Stock, $0.01 par value: Authorized, 70.0 shares; Issued, 42.9 shares; Outstanding, 27.3, 27.4, and 29.3 shares, respectively		0.4		0.4		0.4
Additional paid-in capital		606.3		604.6		632.7
Accumulated other comprehensive income (loss)		(44.1)		(52.5)		(53.8)
Retained earnings		955.6		1,023.7		955.1
Treasury stock, at cost: 15.6, 15.5 and 13.6 shares, respectively		(560.9)		(558.1)		(479.8)



Total stockholders’ equity		957.3		1,018.1		1,054.6
Total liabilities and stockholders’ equity	$	1,960.0	$	1,671.2	$	1,772.3

See accompanying notes


SCHOLASTIC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - UNAUDITED (Dollar amounts in millions, except per share data)


	Class A Stock			Common Stock			Additional Paid-in Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings		Treasury Stock At Cost			Total Stockholders' Equity of Scholastic Corporation			Noncontrolling Interest		Total Stockholders' Equity
	Shares	Amount		Shares	Amount
Balance at June 1, 2023	1.7	$	0.0	30.0	$	0.4		$	632.2		$	(55.8)	$	1,035.6		$	(449.5)		$	1,162.9	$	1.6	$	1,164.5
Net Income (loss)	—	—		—	—			—			—		(74.2)			—			(74.2)		—		(74.2)
Foreign currency translation adjustment	—	—		—	—			—			1.8		—			—			1.8		—		1.8
Pension and post-retirement adjustments (net of tax of $0.1)	—	—		—	—			—			0.2		—			—			0.2		—		0.2
Stock-based compensation	—	—		—	—			2.3			—		—			—			2.3		—		2.3
Proceeds pursuant to stock-based compensation plans	—	—		—	—			3.0			—		—			—			3.0		—		3.0
Purchases of treasury stock at cost	—	—		(0.8)	—			—			—		—			(36.2)			(36.2)		—		(36.2)
Treasury stock issued pursuant to equity-based plans	—	—		0.1	—			(4.3)			—		—			5.9			1.6		—		1.6
Dividends ($0.20 per share)	—	—		—	—			—			—		(6.3)			—			(6.3)		—		(6.3)
Other (noncontrolling interest)	—	—		—	—			(0.5)			—		—			—			(0.5)		(1.6)		(2.1)
Balance at August 31, 2023	1.7	$	0.0	29.3	$	0.4		$	632.7		$	(53.8)	$	955.1		$	(479.8)		$	1,054.6	$	—	$	1,054.6



	Class A Stock			Common Stock			Additional Paid-in Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings		Treasury Stock At Cost			Total Stockholders' Equity of Scholastic Corporation			Noncontrolling Interest		Total Stockholders' Equity
	Shares	Amount		Shares	Amount
Balance at June 1, 2024	0.8	$	0.0	27.4	$	0.4		$	604.6		$	(52.5)	$	1,023.7		$	(558.1)		$	1,018.1	$	—	$	1,018.1
Net Income (loss)	—	—		—	—			—			—		(62.5)			—			(62.5)				(62.5)
Foreign currency translation adjustment	—	—		—	—			—			8.2		—			—			8.2		—		8.2
Pension and post-retirement adjustments (net of tax of $0.1)	—	—		—	—			—			0.2		—			—			0.2		—		0.2
Stock-based compensation	—	—		—	—			2.2			—		—			—			2.2		—		2.2
Proceeds pursuant to stock-based compensation plans	—	—		—	—			0.1			—		—			—			0.1		—		0.1
Purchases of treasury stock at cost	—	—		(0.2)	—			—			—		—			(5.0)			(5.0)		—		(5.0)
Treasury stock issued pursuant to equity-based plans	—	—		0.1	—			(0.6)			—		—			2.2			1.6		—		1.6
Dividends ($0.20 per share)	—	—		—	—			—			—		(5.6)			—			(5.6)		—		(5.6)

Balance at August 31, 2024	0.8	$	0.0	27.3	$	0.4		$	606.3		$	(44.1)	$	955.6		$	(560.9)		$	957.3	$	—	$	957.3

See accompanying notes


SCHOLASTIC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS – UNAUDITED (Dollar amounts in millions)


	Three months ended
	August 31,		August 31,
	2024		2023
Cash flows - operating activities:
Net income (loss)	$	(62.5)	$	(74.2)
Adjustments to reconcile Net income (loss) to net cash provided by (used in) operating activities:
Provision for losses on accounts receivable		0.9		0.6
Provision for losses on inventory		4.8		6.2
Provision for losses on royalty advances		0.7		0.9
Amortization of prepublication costs		5.5		6.7
Amortization of production costs		1.2		—
Depreciation and amortization		18.3		15.8
Amortization of pension and postretirement plans		0.1		0.1
Deferred income taxes		0.8		0.5
Stock-based compensation		2.2		2.3
Income from equity-method investments		(0.2)		(0.2)


Changes in assets and liabilities, net of amounts acquired:
Accounts receivable		50.6		75.8
Inventories		(49.3)		(24.5)
Prepaid expenses and other current assets		(17.2)		(23.4)
Investment in film and television programs		2.0		—
Income tax receivable		(30.3)		(24.5)
Royalty advances		(7.8)		(2.6)
Accounts payable		42.4		(3.4)
Accrued income taxes		0.1		(0.1)
Accrued royalties		21.7		19.2
Deferred revenue		1.5		2.0
Other accrued expenses		(24.7)		(21.4)
Other, net		(2.7)		6.1
Net cash provided by (used in) operating activities		(41.9)		(38.1)

Cash flows - investing activities:
Prepublication expenditures		(4.4)		(5.4)
Additions to property, plant and equipment		(20.0)		(14.3)


Acquisitions, net of cash acquired		(176.4)		—
Purchase of noncontrolling interest		—		(2.1)
Net cash provided by (used in) investing activities		(200.8)		(21.8)

Cash flows - financing activities:
Borrowings under lines of credit, credit agreement and revolving loan		225.6		0.7
Repayments of lines of credit, credit agreement and revolving loan		(0.7)		(0.9)
Borrowings under film related obligations		2.6		—
Repayments of film related obligations		(5.0)		—
Repayment of capital lease obligations		(0.6)		(0.6)
Reacquisition of common stock		(5.0)		(35.9)
Proceeds pursuant to stock-based compensation plans		0.5		3.8
Payment of dividends		(5.7)		(6.5)
Other		0.2		0.1
Net cash provided by (used in) financing activities		211.9		(39.3)

Effect of exchange rate changes on cash and cash equivalents		1.2		0.5

Net increase (decrease) in cash and cash equivalents		(29.6)		(98.7)
Cash and cash equivalents at beginning of period		113.7		224.5
Cash and cash equivalents at end of period	$	84.1	$	125.8

See accompanying notes


SCHOLASTIC CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (Dollar amounts in millions, except per share data)

1. BASIS OF PRESENTATION

Principles of consolidation

The accompanying condensed consolidated interim financial statements (referred to as the “Financial Statements” herein) include the accounts of Scholastic Corporation (the “Corporation”) and all wholly-owned and majority-owned subsidiaries (collectively, “Scholastic” or the “Company”). The Company reviews its relationships with other entities to identify whether it is the primary beneficiary of a variable interest entity (“VIE”). If the determination is made that the Company is the primary beneficiary, then the entity is consolidated. Intercompany transactions are eliminated in consolidation.

The Company’s fiscal year is not a calendar year. Accordingly, references in this document to fiscal 2025 relate to the twelve-month period ending May 31, 2025.

Noncontrolling Interest

On June 1, 2023, the Company acquired the remaining shares of Make Believe Ideas Limited ("MBI"), a UK-based children's book publishing company, which represented a 5.0% noncontrolling interest, increasing the Company's total ownership from 95.0% to 100%.

Prior to June 1, 2023, the founder and chief executive officer of MBI retained a 5.0% noncontrolling ownership interest in MBI. The Company fully consolidated MBI as of the acquisition date and the 5.0% noncontrolling interest was classified within stockholder's equity.

Interim Financial Statements

The accompanying Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”) for interim financial information, and should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2024. The Financial Statements presented in this Quarterly Report on Form 10-Q are unaudited; however, in the opinion of management, the Financial Statements reflect all adjustments, consisting solely of normal, recurring adjustments, necessary for the fair presentation of the Financial Statements for the periods presented.

Seasonality

The Company’s Children’s Book Publishing and Distribution school-based book club and book fair channels and most of its Education Solutions businesses operate on a school-year basis; therefore, the Company’s business is highly seasonal. As a result, the Company’s revenues in the first and third quarters of the fiscal year generally are lower than its revenues in the other two fiscal quarters. Typically, school-based channels and magazine revenues are minimal in the first quarter of the fiscal year as schools are not in session. Education channel revenues are generally higher in the fourth quarter. Trade channel and Entertainment segment revenues can vary throughout the year due to the timing of published titles' release dates and program production deliveries and distribution license period start dates.

Use of estimates

The preparation of these Financial Statements involves the use of estimates and assumptions by management, which affects the amounts reported in the Financial Statements and accompanying notes. The Company bases its estimates on historical experience, current business factors, and various other assumptions believed to be reasonable under the circumstances, all of which are necessary, in order to form a basis for determining the carrying values of certain assets and liabilities. Actual results may differ from those estimates and assumptions. On an on-going basis, the Company evaluates the adequacy of its reserves and the estimates used in these calculations, including, but not limited to:

•Accounts receivable allowance for credit losses

•Pension and postretirement benefit plans

•Uncertain tax positions

•The timing and amount of future income taxes and related deductions


SCHOLASTIC CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (Dollar amounts in millions, except per share data)

•Inventory reserves

•Cost of goods sold from book fair operations during interim periods based on estimated gross profit rates

•Sales tax contingencies

•Royalty advance reserves and royalty expense accruals

•Expected economic useful life of film and television program assets

•Impairment testing for goodwill, other intangible and other long-lived assets and investments

•Assets and liabilities acquired in business combinations

•Variable consideration related to anticipated returns

•Allocation of transaction price to contractual performance obligations

Summary of Significant Accounting Policies

In Notes to Consolidated Financial Statements of the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2024 the Company included a description of its significant accounting policies. Except as set forth below, as of the date of this Quarterly Report on Form 10-Q there have been no material changes to the significant accounting policies described in the Company’s Annual Report for the fiscal year ended May 31, 2024

The below significant accounting policies relate to the Company's entertainment business, which includes the operations of 9 Story Media Group Inc. ("9 Story") and Scholastic Entertainment Inc. ("SEI"). Refer to Note 7, "Acquisitions" for further details regarding the acquisition of 9 Story.

Revenue recognition

The Company’s revenue recognition policies for its entertainment business include the following:

Film and TV production - Revenue is deferred during production and recognized when the film or episodes have been delivered and are available for showing or exploitation.

Production services - Revenue is recognized using the percentage-of-completion method based on the proportion of costs incurred in the current period to total expected costs.

Licensing - Revenue from the sale or granting of broadcast license rights to third parties is recognized when the licensed content is available to the customer and the customer has the contractual right to broadcast or stream the content.

Royalty income - Revenue from sales and usage-based royalties related to licenses is generally recognized when the subsequent sale or usage occurs.

Investment in film and television programs

Investments in film and television programs are stated at the lower of cost or net realizable value. Investment in film and television programs includes all direct production and financing costs incurred during production and minimum guarantee payments made to acquire distribution rights. Interest costs are capitalized to the cost of the film or television program until substantially all of the activities required for delivery are complete. Investments in film and television programs are amortized using the declining-balance method with rates ranging from 50% to 90% at the time of initial episodic delivery and at rates ranging from 10% to 25% annually thereafter. The determination of the rates is based on the expected economic useful life of the film or television program and includes factors such as rights retained by the Company, the availability of rights to renew licenses for episodic television programs in various territories, and the availability of secondary market revenue. The Company regularly reviews the recoverability of these capitalized costs based on expected future cash flows.

Government financing and assistance

The Company has access to government programs and tax credits that are designed to assist film, television and digital media production and distribution. Amounts received and amounts receivable which relate to the Company's film and television program assets are recorded as a reduction in the production costs of the related asset.


SCHOLASTIC CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (Dollar amounts in millions, except per share data)

New Accounting Pronouncements

There were no new accounting pronouncements issued in the first quarter of fiscal 2025 which would impact the Company. Refer to the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2024 for more information on current applicable authoritative guidance and its impact on the Company's financial statements.

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, “Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures.” This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This ASU is effective for the Company's fiscal year 2025, and interim periods starting in fiscal year 2026. Early adoption is permitted. The amendments in this ASU are to be applied retrospectively to all prior periods presented in the financial statements. The Company is currently assessing the impact of the disclosure requirements on its consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740)." The amendments in this update enhance the transparency and decision usefulness of income tax disclosures to provide information to better assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The amendments in this ASU require more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This ASU will be effective for the Company's fiscal year 2026. Early adoption is permitted. The amendments are to be applied prospectively, but may be applied retrospectively to all prior periods presented in the financial statements. The Company is currently assessing the impact of the disclosure requirements on its consolidated financial statements.


SCHOLASTIC CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (Dollar amounts in millions, except per share data)

2. REVENUES

Disaggregated Revenue Data

The following table presents the Company’s segment revenues disaggregated by region and domestic channel:


	Three months ended
	August 31,
	2024		2023
Book Clubs - U.S.	$	2.7	$	2.6
Book Fairs - U.S.		28.8		27.3
Trade - U.S. (1)		58.2		62.1
Trade - International (2)		15.7		10.4
Total Children's Book Publishing and Distribution	$	105.4	$	102.4

Education Solutions - U.S.	$	55.7	$	66.0
Total Education Solutions	$	55.7	$	66.0

Entertainment - U.S.	$	1.6	$	0.4
Entertainment - International (3)		15.0		—
Total Entertainment (1)	$	16.6	$	0.4

International - Major Markets (4)	$	48.1	$	47.8
International - Other Markets (5)		8.7		9.4
Total International	$	56.8	$	57.2

Overhead (6)	$	2.7	$	2.5
Total Overhead	$	2.7	$	2.5

Total	$	237.2	$	228.5

(1) The newly formed Entertainment segment includes the operations of SEI, which were included in the Children’s Book Publishing and Distribution segment in prior periods, and 9 Story. The financial results for SEI for the three months ended August 31, 2023 have been reclassified to Entertainment to reflect this change.

(2) Primarily includes foreign rights and certain product sales in the UK.

(3) Primarily includes production, distribution and licensing revenues in Canada, Ireland and Indonesia.

(4) Includes Canada, UK, Australia and New Zealand.

(5) Primarily includes markets in Asia.

(6) Overhead includes rental income related to leased space in the Company's headquarters.

Estimated Returns

A liability for expected returns of $30.7, $33.1, and $33.1 is recorded within Other accrued expenses as of August 31, 2024, May 31, 2024, and August 31, 2023, respectively. In addition, a return asset of $3.9, $4.2, and $5.4 is recorded within Prepaid expenses and other current assets as of August 31, 2024, May 31, 2024, and August 31, 2023, respectively, for the recoverable cost of product estimated to be returned by customers.


SCHOLASTIC CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (Dollar amounts in millions, except per share data)

Contract Liabilities

The following table presents further detail regarding the Company's contract liabilities as of the dates indicated:


	August 31, 2024		May 31, 2024		August 31, 2023
Book fairs incentive credits	$	99.4	$	114.2	$	96.1
Magazines+ subscriptions		22.2		4.6		24.2
U.S. digital subscriptions		19.2		15.6		26.8
U.S. education-related (1)		10.3		10.1		12.1
Media-related		6.8		0.0		0.0
Stored value cards		17.3		16.7		13.1
Other (2)		5.0		6.4		9.4
Total contract liabilities	$	180.2	$	167.6	$	181.7

(1) Primarily includes contract liabilities related to contracts with school districts and professional services.

(2) Primarily includes contract liabilities related to various international products and services.

The Company's contract liabilities consist of advance billings and payments received from customers in excess of revenue recognized and revenue allocated to outstanding book fairs incentive credits. Contract liabilities of $173.9, $161.1 and $171.1 as of August 31, 2024, May 31, 2024 and August 31, 2023, respectively, are recorded within Deferred revenue on the Company's Condensed Consolidated Balance Sheets and are classified as short term, as substantially all of the associated performance obligations are expected to be satisfied, and related revenue recognized, within one year. The remaining $6.3, $6.5 and $10.6 of contract liabilities as of August 31, 2024, May 31, 2024 and August 31, 2023, respectively, are recorded within Other noncurrent liabilities on the Company's Condensed Consolidated Balance Sheet as the associated performance obligations are expected to be satisfied, and related revenue recognized, in excess of one year. The Company recognized revenue which was included in the opening Deferred revenue balance in the amount of $29.2 and $32.3 for the three months ended August 31, 2024, and August 31, 2023, respectively.

Allowance for Credit Losses

The Company recognizes an allowance for credit losses on customer receivables that are expected to be incurred over the lifetime of the receivable. Reserves for estimated credit losses are established at the time of sale and are based on relevant information about past events, current conditions, and supportable forecasts impacting its ultimate collectability, including specific reserves on a customer-by-customer basis, creditworthiness of the Company’s customers and prior collection experience. The Company reviews new information as it becomes available and makes adjustments to the reserves accordingly. At the time the Company determines that a receivable balance, or any portion thereof, is deemed to be permanently uncollectible, the balance is then written off.

The following table presents the change in the allowance for credit losses, which is included in Accounts Receivable, net on the Condensed Consolidated Balance Sheets:


	Allowance for Credit Losses
Balance as of June 1, 2024	$	14.9
Provision (benefit)		0.9
Write-offs and other		(0.4)
Balance as of August 31, 2024	$	15.4

3. SEGMENT INFORMATION

The Company categorizes its businesses into four reportable segments: Children’s Book Publishing and Distribution, Education Solutions, Entertainment and International.

•Children’s Book Publishing and Distribution operates as an integrated business which includes the publication and distribution of children’s books, ebooks, media and interactive products primarily in the


SCHOLASTIC CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (Dollar amounts in millions, except per share data)

United States through its school reading events business, which includes the book clubs and book fairs channels, and through the trade channel. This segment is comprised of two operating segments.

•Education Solutions includes the publication and distribution to schools and libraries of children’s books, classroom magazines, print and digital supplemental and core classroom materials and related support services, and print and online reference and non-fiction products for grades pre-kindergarten to 12 in the United States. This segment is comprised of one operating segment.

•Entertainment includes the development, production, distribution and licensing of children and family film and television content. This segment is comprised of one operating segment.

•International includes the publication and distribution of products and services outside the United States by the Company’s international operations and its export businesses. This segment is comprised of three operating segments.

The following table sets forth the Company's revenue and operating income (loss) by segment for the periods indicated:


	Three months ended
	August 31,
	2024		2023
Revenues
Children's Book Publishing and Distribution (1)	$	105.4	$	102.4
Education Solutions		55.7		66.0
Entertainment (1)		16.6		0.4
International		56.8		57.2
Overhead (2)		2.7		2.5
Total	$	237.2	$	228.5

Operating income (loss)
Children's Book Publishing and Distribution (1)	$	(36.6)	$	(41.0)
Education Solutions		(17.0)		(18.7)
Entertainment (1)		(0.5)		(0.5)
International		(8.3)		(8.2)
Overhead (2)		(26.1)		(30.7)
Total	$	(88.5)	$	(99.1)

(2) Overhead includes all domestic corporate amounts not allocated to segments, including expenses and costs related to the management of corporate assets and rental income related to leased space in the Company's headquarters.

4. DEBT

The following table summarizes the carrying value of the Company's debt, excluding film related obligations, as of the dates indicated:



	August 31, 2024		May 31, 2024		August 31, 2023
US Revolving Credit Agreement	$	225.0	$	—	$	—
Unsecured lines of credit		6.1		6.0		5.9
Total debt	$	231.1	$	6.0	$	5.9
Less lines of credit, short-term debt and current portion of long-term debt		(6.1)		(6.0)		(5.9)
Total long-term debt	$	225.0	$	—	$	—

The following table sets forth the maturities of the carrying values of the Company's debt obligations, excluding film related obligations, as of August 31, 2024 for the twelve month periods ended August 31:


2025	$	6.1
2026	—
2027	225.0
2028	—
2029	—
Thereafter	—
Total Debt	$	231.1

US Revolving Credit Agreement

On October 27, 2021, Scholastic Corporation and its principal operating subsidiary, Scholastic Inc., entered into an amended and restated 5-year credit agreement with a syndicate of banks and Bank of America, N.A., as administrative agent and Truist Bank and Wells Fargo Bank, National Association, as co-syndication agents (the “Credit Agreement”). The Credit Agreement provides for a $300.0 unsecured revolving credit facility and allows the Company to borrow, repay or prepay and reborrow at any time prior to the October 27, 2026 maturity date. The Credit Agreement also provides an unlimited basket for permitted payments of dividends and other distributions in respect of capital stock so long as the Corporation’s pro forma Consolidated Net Leverage Ratio, as defined, is not in excess of 2.75:1.

On February 28, 2023, the Company entered into the First and Second Amendments to the Credit Agreement (collectively the "Amendments"). The Amendments, among other things, (i) adjusted the credit spread adjustment for SOFR (the secured overnight financing rate as administered by the Federal Reserve Bank of New York) to 0.10% (10 basis points) and (ii) transitioned the reference rate under the Credit Agreement for borrowings from LIBOR (the London interbank offered rate) to SOFR, together with various other conforming changes to accommodate such replacement.

Under the Credit Agreement, interest on amounts borrowed thereunder is due and payable in arrears on the last day of the interest period (defined as the period commencing on the date of the advance and ending on the last day of the period selected by the Borrower at the time each advance is made). The interest pricing under the Credit Agreement is dependent upon the Borrower’s election of a rate that is either:

•a Base Rate equal to the higher of (i) the prime rate, (ii) the prevailing Federal Funds rate plus 0.50% or (iii) the Term SOFR Rate plus 1.00% plus, in each case, an applicable margin ranging from 0.35% to 0.75%, as determined by the Company’s prevailing Consolidated Leverage Ratio (as defined in the Credit Agreement);

- or -

•a SOFR (Daily Simple or Term), plus a SOFR adjustment of 0.10% per annum and an applicable margin ranging from 1.35% to 1.75%, as determined by the Company’s prevailing Consolidated Leverage Ratio.

As of August 31, 2024, the applicable margin on Base Rate Advances was 0.35% and the applicable margin on SOFR Advances was 1.35%, both based on the Company’s prevailing Consolidated Leverage Ratio.

The Credit Agreement provides for payment of a commitment fee in respect of the aggregate unused amount of revolving credit commitments ranging from 0.20% per annum to 0.30% per annum based upon the Corporation’s then prevailing Consolidated Leverage Ratio. As of August 31, 2024, the commitment fee rate was 0.20%.

A portion of the revolving credit facility, up to a maximum of $50.0, is available for the issuance of letters of credit. In addition, a portion of the revolving credit facility, up to a maximum of $15.0, is available for swingline loans. The Credit Agreement has an accordion feature which permits the Company, provided certain conditions are satisfied, to increase the facility by up to an additional $150.0.

As of August 31, 2024, the Company had outstanding borrowings of $225.0 under the Credit Agreement at a weighted average interest rate of 6.8%. While this obligation is not due until the October 27, 2026 maturity date, the Company may, from time to time, make payments to reduce this obligation when cash from operations becomes available for this purpose. No borrowings were outstanding under the Credit Agreement as of August 31, 2023.

The Credit Agreement contains certain financial covenants related to leverage and interest coverage ratios (as defined in the Credit Agreement), limitations on the amount of dividends and other distributions, and other limitations on fundamental changes to the Company or its business. The Company was in compliance with required covenants for all periods presented.

At August 31, 2024, the Company had open standby letters of credit totaling $4.0 issued under certain credit lines, including $0.4 under the Credit Agreement and $3.6 under the domestic credit lines discussed below.

Unsecured Lines of Credit

As of August 31, 2024, the Company’s domestic credit lines available under unsecured money market bid rate credit lines totaled $10.0. There were no outstanding borrowings under these credit lines as of August 31, 2024, May 31, 2024 and August 31, 2023. As of August 31, 2024, availability under these unsecured money market bid rate credit lines totaled $6.4, excluding commitments of $3.6. All loans made under these credit lines are at the sole discretion of the lender and at an interest rate and term agreed to at the time each loan is made, but not to exceed 365 days. These credit lines may be renewed, if requested by the Company, at the option of the lender.

As of August 31, 2024, the Company had various local currency international credit lines totaling $14.0 underwritten by banks primarily in the United States and the United Kingdom. Outstanding borrowings under these facilities were $6.1 at August 31, 2024 at a weighted average interest rate of 4.3%, compared to outstanding borrowings of $6.0 at May 31, 2024 at a weighted average interest rate of 4.5%, and $5.9 at August 31, 2023 at a weighted average interest rate of 4.4%. As of August 31, 2024, the amounts available under these facilities totaled $7.9. These credit lines are typically available for overdraft borrowings or loans up to 364 days and may be renewed, if requested by the Company, at the sole option of the lender.

Film Related Obligations

The Company's entertainment business enters into credit facilities to obtain interim financing for certain productions. The interim production credit facilities are secured by an assignment and direction of specific production financing including tax credits and license contract receivables and have varying maturity dates between September 9, 2024 and July 31, 2026. Interest is charged at rates ranging from the bank prime rate plus 0.75% for Canadian dollar loans, SOFR plus 3.0% or U.S. base rate plus 0.75% for U.S. dollar loans and Euribor plus 2.0% for Euro loans.

As of August 31, 2024, outstanding borrowings under these facilities were $34.1 at a weighted average interest rate of 7.8%, of which $20.5 were classified as current obligations.


SCHOLASTIC CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (Dollar amounts in millions, except per share data)

5. COMMITMENTS AND CONTINGENCIES

Legal Matters

Various claims and lawsuits arising in the normal course of business are pending against the Company. The Company accrues a liability for such matters when it is probable that a liability has occurred and the amount of such liability can be reasonably estimated. When only a range can be estimated, the most probable amount in the range is accrued unless no amount within the range is a better estimate than any other amount, in which case the minimum amount in the range is accrued. Legal costs associated with litigation are expensed in the period in which they are incurred. The Company does not expect, in the case of those various claims and lawsuits arising in the normal course of business where a loss is considered probable or reasonably possible, that the reasonably possible losses from such claims and lawsuits (either individually or in the aggregate) would have a material adverse effect on the Company’s consolidated financial position or results of operations.

The Company expects to receive additional recoveries from its insurance programs related to an intellectual property legal settlement accrued during fiscal 2021, however, it is premature to determine with any level of probability or accuracy the amount of those recoveries at this time.

6. EARNINGS (LOSS) PER SHARE

The following table summarizes the reconciliation of the numerators and denominators for the basic and diluted earnings (loss) per share computation for the periods indicated:


	Three months ended
	August 31,
	2024		2023
Net income (loss) attributable to Class A and Common Stockholders	$	(62.5)	$	(74.2)
Weighted average Shares of Class A Stock and Common Stock outstanding for basic earnings (loss) per share (in millions)		28.3		31.6
Dilutive effect of Common Stock potentially issuable pursuant to stock-based compensation plans (in millions)*		—		—
Adjusted weighted average Shares of Class A Stock and Common Stock outstanding for diluted earnings (loss) per share (in millions)		28.3		31.6
Earnings (loss) per share of Class A Stock and Common Stock:
Basic	$	(2.21)	$	(2.35)
Diluted	$	(2.21)	$	(2.35)
Anti-dilutive shares pursuant to stock-based compensation plans		1.7		0.7

* The Company experienced a net loss for all periods presented and therefore did not report any dilutive share impact

The following table sets forth options outstanding pursuant to stock-based compensation plans as of the dates indicated:


	August 31, 2024	August 31, 2023
Options outstanding pursuant to stock-based compensation plans (in millions)	2.9	3.0

As of August 31, 2024, $81.6 remained available for future purchases of common shares under the repurchase authorization of the Board of Directors (the "Board") in effect on that date. See Note 12, "Treasury Stock", for a more complete description of the Company’s share buy-back program.

7. ACQUISITIONS

9 Story Acquisition

On June 20, 2024, the Company completed the acquisition of 100% of the economic interests in the form of non-voting shares and 25% of the voting shares of 9 Story Media Group Inc. ("9 Story"), a leading independent creator, producer and distributor of premium children’s content based in Toronto, Canada, with studios or


SCHOLASTIC CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (Dollar amounts in millions, except per share data)

offices in New York, United States, Dublin, Ireland and Bali, Indonesia. The aggregate purchase price was $193.9, subject to further adjustment based on the final determination of purchase price adjustments, and was funded through borrowings under the U.S. credit agreement incurred during the first quarter of fiscal 2025. The acquisition of 9 Story further enhances the Company's development, production and licensing interests, expanding opportunities to leverage its brand and best-selling publishing and global children's franchises across print, screen and merchandising.

Pursuant to ASC Topic 810, Consolidation, 9 Story was determined to be a variable interest entity (VIE) and the Company was determined to be its primary beneficiary and therefore obtained control over 9 Story. Accordingly, 9 Story has been consolidated into the Company's financial results.

9 Story met the definition of a business pursuant to ASC 805, Business Combinations, and the acquisition was accounted for as a business combination under the acquisition method of accounting. The Company estimated the preliminary fair value of acquired assets and liabilities as of the date of acquisition based on currently available information. As the Company finalizes the fair value of assets acquired and liabilities assumed, additional purchase price adjustments may be recorded during the measurement period. The following table summarizes the preliminary purchase price allocation of fair values of the assets acquired and liabilities assumed at the date of acquisition:


Cash and cash equivalents	$	17.5
Accounts receivable		15.9
Investment in film and television programs		42.9
Property, plant and equipment (1)		6.0
Operating lease right-of-use assets		5.8
Other Intangible assets:
Existing content/IP		16.0
Customer contracts/relationships		51.5
Tradenames		16.5
Internally developed software		1.3
Other assets (2)		35.9
Total assets acquired		209.3
Accounts payable		2.3
Other accrued expenses		16.4
Deferred revenue		10.9
Film related obligations		34.9
Operating lease liabilities		7.8
Other liabilities		13.2
Total liabilities assumed		85.5
Preliminary fair value of net assets acquired		123.8
Goodwill		70.1
Preliminary purchase price consideration	$	193.9

(1) Includes a preliminary step-up adjustment of $1.8.

(2) Includes $31.9 of receivables related to government tax incentives.

The intangible assets acquired include intellectual property related to 9 Story's existing and recognized program titles, customer contracts/relationships related to licensing, distribution and service arrangements, the trade names associated with 9 Story and Brown Bag Films, its animation studio, and internally developed software. The intellectual property and customer contracts/relationships were valued using the multi-period excess earnings valuation method and are being amortized over 10 years, with the exception of contracts/relationships for service arrangements which are being amortized over 5 years. The trade names were valued using the relief-from-royalty valuation method and are being amortized over 10 years. The internally developed software was valued using the replacement cost method and is being amortized over 3 years. The Company classified these fair value measurements as Level 3 due to the significant unobservable inputs used in the analyses, such as internally-developed discounted cash flow forecasts. The difference between the purchase price over the net identifiable tangible and intangible assets acquired was allocated to goodwill, which is not deductible for tax purposes. The goodwill balance is primarily attributable to the expected synergies from the business


SCHOLASTIC CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (Dollar amounts in millions, except per share data)

combination and acquired workforce. The goodwill and intangible assets acquired were allocated to the Entertainment segment.

The financial results of 9 Story, since the date of acquisition, were included in the Company's Condensed Consolidated Financial Statements as of August 31, 2024. 9 Story contributed total revenue of $16.0 and net income of $0.1 from the date of acquisition on June 20, 2024 through August 31, 2024. The operations of 9 Story are reported in the Entertainment segment.

The following table summarizes the unaudited pro-forma consolidated results of operations for the three months ended August 31, 2024 and 2023 as if the acquisition had occurred on June 1, 2023, the beginning of fiscal 2024:


	Three months ended
	August 31,
	2024		2023
Revenues	$	242.9	$	248.3
Net income (loss)		(64.3)		(78.9)

The unaudited pro-forma consolidated results above are based on the historical financial statements of the Company and 9 Story and are not necessarily indicative of the results of operations that would have been achieved if the acquisition was completed at the beginning of fiscal 2024 and are not indicative of the future operating results of the combined entities. The financial information for 9 Story prior to the acquisition includes certain adjustments to 9 Story's historical consolidated financial statements to align with U.S. GAAP and the Company's accounting policies. The pro-forma consolidated results of operations also include the effects of purchase accounting adjustments, including amortization charges related to the finite-lived intangible assets acquired, fair value adjustments relating to leases and fixed assets, and the related tax effects assuming that the business combination occurred on June 1, 2023.

The Company incurred acquisition‑related costs of $1.7 which were included in Selling, general and administrative costs in the Condensed Consolidated Statement of Operations for the three months ended August 31, 2024.

Purchase of Noncontrolling Interest

On June 1, 2023, the Company acquired the remaining shares of Make Believe Ideas Limited, a UK-based children's book publishing company for $2.1, increasing the Company's total ownership from 95.0% to 100%. The acquisition was accounted for as an equity transaction as there was no change in control. The carrying value of the noncontrolling interest at the acquisition date was $1.6. The difference between the fair value of consideration paid and the carrying value was recognized as an adjustment to Additional paid-in capital of $0.5.

8. GOODWILL AND OTHER INTANGIBLES

The Company assesses goodwill and other intangible assets with indefinite lives for impairment annually or more frequently if indicators arise. The Company monitors impairment indicators in light of changes in market conditions, near and long-term demand for the Company’s products and other relevant factors.

The following table summarizes the activity in Goodwill for the periods indicated:


	August 31, 2024		May 31, 2024		August 31, 2023
Gross beginning balance	$	172.4	$	172.3	$	172.3
Accumulated impairment		(39.6)		(39.6)		(39.6)
Beginning balance	$	132.8	$	132.7	$	132.7
Additions		70.1		—		—

Foreign currency translation		1.5		0.1		0.1



Ending balance	$	204.4	$	132.8	$	132.8


SCHOLASTIC CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (Dollar amounts in millions, except per share data)

In fiscal 2025, the Company completed the 9 Story acquisition which resulted in the recognition of $70.1 of Goodwill included in the Entertainment segment. Refer to Note 7, "Acquisitions", for further details regarding the acquisition.

There were no impairment charges related to Goodwill in any of the periods presented.

The following table summarizes the activity in Other intangible assets for the periods indicated:


	August 31, 2024		May 31, 2024		August 31, 2023





Beginning balance - Other intangibles subject to amortization	$	8.2	$	7.8	$	7.8
Additions		85.3		6.0		—

Amortization expense		(2.4)		(2.6)		(0.5)
Foreign currency translation		1.5		0.1		0.0
Impairments		—		(3.1)		—
Total other intangibles subject to amortization, net of accumulated amortization of $41.5, $39.1 and $37.0, respectively	$	92.6	$	8.2	$	7.3


Total other intangibles not subject to amortization	$	2.1	$	2.1	$	2.1
Total other intangible assets, net	$	94.7	$	10.3	$	9.4

In fiscal 2025, the Company completed the 9 Story acquisition which resulted in the recognition of $85.3 of amortizable intangible assets. Refer to Note 7, "Acquisitions", for further details regarding the acquisition.

In fiscal 2024, the Company acquired certain amortizable intangible assets related to educational programs for $5.8 and certain amortizable intangible assets of a U.S.- based children's book publishing business for $0.2. These intangible assets are amortized over the estimated useful life of 8 years and 5 years, respectively.

In fiscal 2023, the Company acquired Learning Ovations, Inc., a U.S.-based education technology business, which resulted in the recognition of $4.1 of amortizable intangible assets. During fiscal 2024, the Company assessed the recoverability of these assets as impacted by the shift to the science of reading based approach to literacy instruction within the education market. An asset impairment of $3.1 was recognized in fiscal 2024.

Other intangible assets with indefinite lives consist principally of trademark and tradename rights. Other intangible assets with definite lives consist principally of customer lists, customer contracts/relationships, intellectual property, tradenames and internally developed software. Intangible assets with definite lives are amortized over their estimated useful lives. The weighted-average remaining useful lives of all amortizable intangible assets is approximately 9.0 years.

There were no impairment charges related to Other intangible assets in the three months ended August 31, 2024 and August 31, 2023.

9. INVESTMENTS

Investments are included in Other assets and deferred charges on the Condensed Consolidated Balance Sheets. The following table summarizes the Company’s investments as of the dates indicated:


	August 31, 2024		May 31, 2024		August 31, 2023		Segment
Equity method investments	$	32.5	$	31.5	$	32.3	International
Other equity investments		7.0		6.0		6.0	Entertainment
Total Investments	$	39.5	$	37.5	$	38.3

The Company’s 26.2% equity interest in a children’s book publishing business located in the UK is accounted for using the equity method of accounting. Equity method income from this investment is reported in the International segment.


SCHOLASTIC CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (Dollar amounts in millions, except per share data)

The Company has a 4.6% ownership interest in a financing and production company that makes film, television, and digital programming designed for the youth market. This equity investment does not have a readily determinable fair value and the Company has elected to apply the measurement alternative and report the investment at cost, less impairment on the Company's Condensed Consolidated Balance Sheets. There have been no impairments or adjustments to the carrying value of the investment. This investment is included in the Entertainment segment.

The Company acquired investments of $1.0 as part of the 9 Story acquisition which are included in the Entertainment segment. Included in these acquired investments, the Company acquired a 50% ownership interest in certain animated television production companies. These joint venture investments are accounted for using the equity method of accounting. The Company also acquired a 12% ownership interest in a children's book publishing business located in the UK. This investment is accounted for at cost, less impairment on the Company's Condensed Consolidated Balance Sheets. There have been no impairments or adjustment to the carrying value of the investment.

Income from equity investments is reported in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and totaled $0.2 and $0.2 for the three months ended August 31, 2024 and August 31, 2023, respectively.

10. EMPLOYEE BENEFIT PLANS

The following table sets forth the components of net periodic benefit cost for the periods indicated under the Company’s defined benefit pension plan of Scholastic Ltd., an indirect subsidiary of Scholastic Corporation located in the United Kingdom (the “UK Pension Plan”), and the postretirement benefits plan, consisting of certain healthcare and life insurance benefits provided by the Company to its eligible retired United States-based employees (the “US Postretirement Benefits”), for the periods indicated:


	UK Pension Plan				US Postretirement Benefits
	Three months ended				Three months ended
	August 31,				August 31,
	2024		2023		2024		2023
Components of net periodic benefit cost:

Interest cost	$	0.4	$	0.4	$	0.1	$	0.1
Expected return on assets		(0.3)		(0.3)		—		—
Amortization of prior service (credit) loss		0.0		0.0		(0.2)		(0.2)

Amortization of net actuarial (gain) loss		0.3		0.3		0.0		—
Total	$	0.4	$	0.4	$	(0.1)	$	(0.1)

Actuarial gains and losses are amortized using a corridor approach. The gain or loss corridor is equal to 10% of the greater of the projected benefit obligation and the market-related value of assets. Gains and losses in excess of the corridor are amortized over the future working lifetime.

The Company’s funding practice with respect to the UK Pension Plan is to contribute on an annual basis at least the minimum amounts required by applicable law. For the three months ended August 31, 2024, the Company contributed $0.3 to the UK Pension Plan. The Company expects, based on actuarial calculations, to contribute cash of approximately $1.3 to the UK Pension Plan for the fiscal year ending May 31, 2025.


SCHOLASTIC CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (Dollar amounts in millions, except per share data)

11. STOCK-BASED COMPENSATION

The following table summarizes stock-based compensation expense included in Selling, general and administrative expenses for the periods indicated:


	Three months ended
	August 31,
	2024		2023
Stock option expense	$	0.6	$	0.6
Restricted stock unit expense		1.5		1.5
Management stock purchase plan		0.0		0.0
Employee stock purchase plan		0.1		0.2
Total stock-based compensation expense	$	2.2	$	2.3

The following table sets forth Common Stock issued pursuant to stock-based compensation plans for the periods indicated:


	Three months ended
	August 31,
	2024	2023
Common Stock issued pursuant to stock-based compensation plans (in millions)	0.1	0.1

12. TREASURY STOCK

The Board has authorized the Company to repurchase Common Stock, from time to time as conditions allow, on the open market or through privately negotiated transactions.

The table below represents the Board authorization at the dates indicated:


Authorization	Amount
December 2023		66.2
March 2024		54.6
Total current Board authorizations	$	120.8
Less repurchases made under these authorizations		(39.2)
Remaining Board authorization at August 31, 2024	$	81.6

Remaining Board authorization at August 31, 2024 represents the amount remaining under the Board authorization for Common share repurchases announced on December 13, 2023 and the additional $54.6 Board authorization for Common share repurchases announced on March 20, 2024, which is available for further repurchases, from time to time as conditions allow, on the open market or through privately negotiated transactions.

Repurchases of the Company's Common Stock were $5.0 during the three months ended August 31, 2024. The Company's repurchase program may be suspended at any time without prior notice.


SCHOLASTIC CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (Dollar amounts in millions, except per share data)

13. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following tables summarize the activity in Accumulated other comprehensive income (loss), net of tax, by component, for the periods indicated:


	Three months ended August 31, 2024
	Foreign currency translation adjustments		Retirement benefit plans		Total
Beginning balance at June 1, 2024	$	(46.9)	$	(5.6)	$	(52.5)
Other comprehensive income (loss) before reclassifications		8.2		—		8.2
Less amount reclassified from Accumulated other comprehensive income (loss):
Amortization of net actuarial loss (net of tax of $0.0)		—		0.3		0.3
Amortization of prior service (credit) cost (net of tax of $0.1)		—		(0.1)		(0.1)


Other comprehensive income (loss)		8.2		0.2		8.4
Ending balance at August 31, 2024	$	(38.7)	$	(5.4)	$	(44.1)

	Three months ended August 31, 2023
	Foreign currency translation adjustments		Retirement benefit plans		Total
Beginning balance at June 1, 2023	$	(50.0)	$	(5.8)	$	(55.8)
Other comprehensive income (loss) before reclassifications		1.8		—		1.8
Less amount reclassified from Accumulated other comprehensive income (loss):
Amortization of net actuarial loss (net of tax of $0.0)		—		0.3		0.3

Amortization of prior service (credit) cost (net of tax of $0.1)		—		(0.1)		(0.1)

Other comprehensive income (loss)		1.8		0.2		2.0
Ending balance at August 31, 2023	$	(48.2)	$	(5.6)	$	(53.8)

The following table presents the impact on earnings of reclassifications out of Accumulated other comprehensive income (loss) for the periods indicated:


	Three months ended				Condensed Consolidated Statements of Operations line item
	August 31,		August 31,
	2024		2023
Employee benefit plans:
Amortization of net actuarial loss	$	0.3	$	0.3		Other components of net periodic benefit (cost)
Amortization of prior service (credit) loss		(0.2)		(0.2)		Other components of net periodic benefit (cost)
Less: Tax effect		0.1		0.1		Provision (benefit) for income taxes
Total cost, net of tax	$	0.2	$	0.2

14. FAIR VALUE MEASUREMENTS

The Company determines the appropriate level in the fair value hierarchy for each fair value measurement of assets and liabilities carried at fair value on a recurring basis in the Company’s financial statements. The fair value hierarchy prioritizes the inputs, which refer to assumptions that market participants would use in pricing an asset or liability, based upon the highest and best use, into three levels as follows:

•Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.

•Level 2 Observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability and inputs derived principally from or corroborated by observable market data.

•Level 3 Unobservable inputs in which there is little or no market data available, which are significant to the fair value measurement and require the Company to develop its own assumptions.


SCHOLASTIC CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (Dollar amounts in millions, except per share data)

The Company’s financial assets and liabilities measured at fair value consisted of cash and cash equivalents, debt and foreign currency forward contracts. Cash and cash equivalents are comprised of bank deposits and short-term investments, such as money market funds, the fair value of which is based on quoted market prices, a Level 1 fair value measure. The Company employs Level 2 fair value measurements for the disclosure of the fair value of its various lines of credit and long term debt. The fair value of the Company's debt, including film related obligations, approximates the carrying value for all periods presented. The fair values of foreign currency forward contracts, used by the Company to manage the impact of foreign exchange rate changes, are based on quotations from financial institutions, a Level 2 fair value measure.

Non-financial assets for which the Company employs fair value measures on a non-recurring basis include:

•Long-lived assets, including held for sale

•Operating lease right-of-use (ROU) assets

•Investments

•Assets and liabilities acquired in a business combination

•Impairment assessment of goodwill and other intangible assets

Level 2 and Level 3 inputs are employed by the Company in the fair value measurement of these assets. For the fair value measurements employed by the Company for certain property, plant and equipment, investments, prepublication assets and investment in film and television programs, the Company assessed future expected cash flows attributable to these assets. See Note 9, "Investments", for a more detailed description of the fair value measurements employed. See Note 7, "Acquisitions", for a more detailed description of the assets acquired and fair value measurements employed related to the 9 Story acquisition.

15. INCOME TAXES AND OTHER TAXES

Income Taxes

In calculating the provision for income taxes on an interim basis, the Company uses an estimate of the annual effective tax rate based upon currently known facts and circumstances and applies that rate to its year-to-date earnings or losses. The Company’s effective tax rate is based on expected income and statutory tax rates and takes into consideration permanent differences between financial statement and tax return income applicable to the Company in the various jurisdictions in which the Company operates. The effect of discrete items, such as changes in estimates, changes in rates or tax status, and unusual or infrequently occurring events, is recognized in the interim period in which the discrete item occurs. The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained or as the result of new judicial interpretations or regulatory or tax law changes.

The Company's interim effective tax rate, inclusive of discrete items, for the three month period ended August 31, 2024 was 31.9%, compared to 24.3%, for the prior fiscal year period. The interim effective tax rate for the three months ended August 31, 2024 varies from the statutory rate primarily due to expected state and local income tax and non-deductible compensation for covered executive employees.

The Company, including its domestic subsidiaries, files a consolidated U.S. income tax return, and also files tax returns in various states and other local jurisdictions. Also, certain subsidiaries of the Company file income tax returns in foreign jurisdictions. The Company is routinely audited by various tax authorities. The fiscal 2021 through 2024 tax years remain subject to audit.

The Organization for Economic Cooperation and Development (“OECD”) has implemented the global minimum tax rate of at least 15% for large multinational companies as of 2024 (“Pillar Two”). Under Pillar Two, a top-up tax will be required for any jurisdiction who has enacted Pillar Two and whose effective tax rate falls below the 15% global minimum rate. Additionally, the OECD issued administrative guidance providing transition and safe harbor rules around the implementation of the Pillar Two global minimum tax. Under the safe harbor, companies would be excluded from Pillar Two requirements provided certain criteria are met. The enactment of Pillar Two legislation does not have a material effect on the Company’s financial position. The Company will continue to monitor and reflect the impact of such legislative changes in future periods, as appropriate.


SCHOLASTIC CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (Dollar amounts in millions, except per share data)

Non-income Taxes

The Company is subject to tax examinations for sales-based taxes. A number of these examinations are ongoing and, in certain cases, have resulted in assessments from taxing authorities. The Company assesses sales tax contingencies for each jurisdiction in which it operates, considering all relevant facts including statutes, regulations, case law and experience. Where a sales tax liability with respect to a jurisdiction is probable and can be reliably estimated for such jurisdiction, the Company has made accruals for these matters which are reflected in the Company’s Condensed Consolidated Financial Statements. These amounts are included in Selling, general and administrative expenses. Future developments relating to the foregoing could result in adjustments being made to these accruals.

16. DERIVATIVES AND HEDGING

The Company enters into foreign currency derivative contracts to economically hedge the exposure to foreign currency fluctuations associated with the forecasted purchase of inventory, the foreign exchange risk associated with certain receivables denominated in foreign currencies and certain future commitments for foreign expenditures. These derivative contracts are economic hedges and are not designated as cash flow hedges.

The Company marks-to-market these instruments and records the changes in the fair value of these items in Selling, general and administrative expenses and recognizes the unrealized gain or loss in Other current assets or Other current liabilities. The notional values of the contracts were $22.8 as of August 31, 2024 and August 31, 2023. A net unrealized loss of $0.3 and a net unrealized gain of $0.4 was recognized for the three months ended August 31, 2024 and August 31, 2023, respectively.

17. OTHER ACCRUED EXPENSES

Other accrued expenses consisted of the following as of the dates indicated:


	August 31, 2024		May 31, 2024		August 31, 2023
Accrued payroll, payroll taxes and benefits	$	30.5	$	32.9	$	34.5
Accrued bonus and commissions		13.0		21.6		13.0
Returns liability		30.7		33.1		33.1
Accrued other taxes		13.6		23.0		16.0
Accrued advertising and promotions		7.3		5.7		8.5
Other accrued expenses		44.0		40.0		40.8
Total accrued expenses	$	139.1	$	156.3	$	145.9

18. SUBSEQUENT EVENTS

On September 18, 2024, the Board declared a quarterly cash dividend of $0.20 per share on the Company’s Class A and Common Stock for the second quarter of fiscal 2025. The dividend is payable on December 16, 2024 to shareholders of record as of the close of business on October 31, 2024.


SCHOLASTIC CORPORATION Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)

Overview and Outlook

Revenues for the first quarter ended August 31, 2024 were $237.2 million, compared to $228.5 million in the prior fiscal year quarter, an increase of $8.7 million or 4%. The Company reported net loss per diluted share of Class A and Common Stock of $2.21 in the first quarter of fiscal 2024, compared to a net loss per diluted share of $2.35 in the prior fiscal year quarter.

First quarter results reflect the addition of 9 Story to the newly formed Entertainment segment, driving an overall increase in revenues. Within the Children's Book Publishing and Distribution segment, revenues increased on higher foreign rights sales, partly offset by lower frontlist sales compared to the prior year period when the Company released the paperback edition of the fourth book in the Hunger Games series, The Ballad of Songbirds and Snakes. Fiscal 2025 revenues are expected to benefit from new releases in the second half of the fiscal year, including the newest book in Dav Pilkey’s Dog Man® series and the fifth book in Suzanne Collins’ Hunger Games series, Sunrise on the Reaping. Within Education Solutions, school districts continued to focus on adopting and implementing new core programs, driving lower sales of supplemental curriculum products, partly offset by increased sales to state-sponsored partners driven by the growing number of kids participating in these programs. Internationally, revenues were comparable to the prior year period as increased backlist sales in the U.K., were offset by revenue declines in Canada and the export channel.

In fiscal 2025, the Company remains focused on expanding the reach and impact of its book fairs and book clubs, while innovating how it serves its school partners. Within Education Solutions, the Company continues to develop new structured literacy programs and supplemental products for schools, which are expected to launch next summer. The Company also continues to focus on advancing its strategy as a global children’s media and content company with the integration of 9 Story and growing its slate of media properties in development and production.

Results of Operations

Consolidated

Revenues for the quarter ended August 31, 2024 increased by $8.7 million to $237.2 million, compared to $228.5 million in the prior fiscal year quarter. The increase in consolidated revenues was driven by the newly formed Entertainment segment, with revenues of $16.6 million, primarily reflecting the acquisition of 9 Story, which closed in June. The Children's Book Publishing and Distribution segment revenues increased by $3.0 million, primarily driven by increased foreign rights sales within the trade channel. In the Education Solutions segment, revenues decreased by $10.3 million primarily due to the continued decline in spending on supplemental materials, partially offset by increased revenues from sponsored programs. In local currency, the International segment revenues decreased by $0.2 million, primarily reflecting lower sales in Canada and export which offset higher revenues from the UK trade channel. International segment revenues were also impacted by unfavorable foreign exchange of $0.2 million in the quarter ended August 31, 2024.

Components of Cost of goods sold for the three months ended August 31, 2024 and August 31, 2023 are as follows:


	Three months ended
	August 31, 2024				August 31, 2023

($ amounts in millions)			% of Revenue				% of Revenue
Product, service and production costs and inventory reserves	$	74.2	31.3	%	$	72.8	31.8	%
Royalty costs		22.0	9.3	%		23.5	10.3	%
Prepublication and production amortization		6.7	2.8	%		7.0	3.1	%
Postage, freight, shipping, fulfillment and other		25.4	10.7	%		26.7	11.7	%
Total	$	128.3	54.1	%	$	130.0	56.9	%


SCHOLASTIC CORPORATION Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)

Cost of goods sold for the quarter ended August 31, 2024 was $128.3 million, or 54.1% of revenues, compared to $130.0 million, or 56.9% of revenues, in the prior fiscal year quarter. Cost of goods sold benefited from favorable product mix in the U.S. trade channel which resulted in lower product costs, in addition to lower outbound freight and fulfillment costs, primarily in the U.S. book fairs channel, and lower royalty costs within Education Solutions. This was partially offset by higher product costs associated with the mix of products sold in Education Solutions relating to community facing programs and summer reading products, coupled with the addition of production costs as a result of the 9 Story acquisition.

Selling, general and administrative expenses for the quarter ended August 31, 2024 decreased to $182.1 million, compared to $184.2 million in the prior fiscal year quarter. The $2.1 million decrease was primarily attributable to lower commission, external labor and marketing expenses in Education Solutions, coupled with lower severance expense from the Company's cost-saving initiatives. This was partially offset by higher operating expenses from the addition of 9 Story and higher labor costs in the U.S. book fairs channel due to inflationary pressures, as well as to support the expected volume of fairs for the fall season.

Depreciation and amortization expenses for the quarter ended August 31, 2024 were $15.3 million compared to $13.4 million in the prior fiscal year quarter. The increase in Depreciation and amortization was primarily due to amortization expense on the intangible assets acquired as a result of the 9 Story acquisition. The Company continues to shift spending to cloud computing arrangements in which the amortization expense is included in Selling, general and administrative expenses rather than Depreciation and amortization. Amortization related to cloud computing arrangements for the quarter ended August 31, 2024 increased by $0.6 million compared to the prior fiscal year quarter as a result of assets placed into service during fiscal 2024.

Interest expense for the quarter ended August 31, 2024 was $3.8 million compared to $0.3 million in the prior fiscal year quarter. The $3.5 million increase in interest expense was due to borrowings under the U.S. credit agreement incurred during the first quarter of fiscal 2025 to fund the 9 Story acquisition. Interest expense is expected to increase by a similar amount each quarter for the remainder of the fiscal year. Interest income for the quarter ended August 31, 2024 was $0.8 million compared to $1.7 million in the prior fiscal year quarter. The $0.9 million decrease was attributable to lower average short term investment balances in the quarter ended August 31, 2024. The Company invests excess cash in short term investments which earn competitive interest rates that change directionally in relation to the Federal Funds rate.

The Company's interim effective tax rate, inclusive of discrete items, for the quarter ended August 31, 2024 was 31.9%, compared to 24.3% for the prior fiscal year period. The interim effective tax rate for the three months ended August 31, 2024 varies from the statutory rate primarily due to expected state and local income tax and non-deductible compensation for covered executive employees.

Net loss attributable to Scholastic Corporation for the quarter ended August 31, 2024 improved by $11.7 million to a loss of $62.5 million, compared to a loss of $74.2 million in the prior fiscal year quarter. Loss per basic and diluted share of Class A and Common Stock was $2.21 for the fiscal quarter ended August 31, 2024, compared to $2.35 in the prior fiscal year quarter.

Children’s Book Publishing and Distribution


	Three months ended August 31,
					$		%
($ amounts in millions)	2024		2023		Change		Change
Revenues	$	105.4	$	102.4	$	3.0	2.9	%
Cost of goods sold		58.9		63.3		(4.4)	(7.0)	%
Other operating expenses (1)		83.1		80.1		3.0	3.7	%

Operating income (loss)	$	(36.6)	$	(41.0)	$	4.4	10.7	%
Operating margin		NM		NM

(1) Other operating expenses include selling, general and administrative expenses, bad debt expenses and depreciation and amortization.

NM Not meaningful

Revenues for the quarter ended August 31, 2024 increased by $3.0 million to $105.4 million, compared to $102.4 million in the prior fiscal year quarter. Revenues from school reading events increased $1.6 million, primarily within the book fairs channel. Revenues from school reading events are generally not significant in the first fiscal


SCHOLASTIC CORPORATION Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)

quarter as most schools are not in session. Trade channel revenues increased $1.4 million reflecting increased foreign rights sales, offset by lower sales of frontlist titles as the retail bookselling market for juvenile titles was down slightly year-over-year and the prior year period benefited from the release of the paperback edition of The Ballad of Songbirds and Snakes ahead of the title’s movie release last fall. New releases in the quarter ended August 31, 2024 included the paperback release of J.K. Rowling's The Christmas Pig, The Baby-Sitter's Club #16: Kristy and the Walking Disaster, The Bad Guys #19: The Bad Guys in the Serpent and the Beast, Unico: Awakening (Volume 1): An Original Manga, and When We Flew Away by NYT bestselling author Alice Hoffman.

Cost of goods sold for the quarter ended August 31, 2024 was $58.9 million, or 55.9% of revenues, compared to $63.3 million, or 61.8% of revenues, in the prior fiscal year quarter. Cost of goods sold benefited from the mix of product sold in the trade channel in the quarter ended August 31, 2024, which included higher foreign rights sales, as compared to the prior fiscal year quarter, resulting in lower product costs. In addition, the segment benefited from lower outbound freight and fulfillment costs, primarily in the book fairs channel, coupled with lower print costs.

Other operating expenses for the quarter ended August 31, 2024 were $83.1 million, compared to $80.1 million in the prior fiscal year quarter. Other operating expenses increased $3.0 million primarily driven by higher labor costs in the U.S. book fairs channel due to inflationary pressures and to support the expected volume of fairs for the fall season.

Segment operating loss for the quarter ended August 31, 2024 was $36.6 million, compared to $41.0 million in the prior fiscal year quarter. The $4.4 million improvement was primarily attributable to the increased foreign rights sales, which have a higher profit margin than traditional trade sales.

Education Solutions


	Three months ended August 31,
					$		%
($ amounts in millions)	2024		2023		Change		Change
Revenues	$	55.7	$	66.0	$	(10.3)	(15.6)	%
Cost of goods sold		27.4		32.6		(5.2)	(16.0)	%
Other operating expenses (1)		45.3		52.1		(6.8)	(13.1)	%

Operating income (loss)	$	(17.0)	$	(18.7)	$	1.7	9.1	%
Operating margin		NM		NM

(1) Other operating expenses include selling, general and administrative expenses, bad debt expenses and depreciation and amortization.

NM Not meaningful

Revenues for the quarter ended August 31, 2024 decreased by $10.3 million to $55.7 million, compared to $66.0 million in the prior fiscal year quarter. The decrease in segment revenues was primarily driven by the continued impact of market conditions as school districts focus on adopting and implementing new core programs and spending on materials not aligned with Science of Reading based approaches to literacy continued to decline, in addition to the timing of sales from literacy initiatives. Partially offsetting the decline, the segment benefited from increased revenues from state-sponsored partners, driven by the growing number of kids participating in these programs, and increased sales from the Company’s Rising Voices Library® offering.

Cost of goods sold for the quarter ended August 31, 2024 was $27.4 million, or 49.2% of revenues, compared to $32.6 million, or 49.4% of revenues, in the prior fiscal year quarter. Cost of goods sold benefited from lower prepublication amortization as a result of the impairment of certain education products in fiscal 2024 and lower royalty costs driven by product mix. This was partially offset by higher product costs associated with the mix of products sold during the period ended August 31, 2024, primarily related to community facing programs and summer reading products.

Other operating expenses for the quarter ended August 31, 2024 were $45.3 million, compared to $52.1 million in the prior fiscal year quarter, resulting in a decrease of $6.8 million. The decrease in Other operating expenses was primarily attributable to lower commission expense driven by the lower revenues, lower external labor costs as a result of the timing of work on new product launches and lower marketing expenses due to the timing of mailings for the magazines business.


SCHOLASTIC CORPORATION Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)

Segment operating loss for the quarter ended August 31, 2024 was $17.0 million, compared to $18.7 million in the prior fiscal year quarter. The $1.7 million improvement was primarily driven by the increased sales from sponsored programs as increases in participation have a significant impact on profitability, as well as lower expenses driven by lower prepublication amortization, lower external labor costs and the timing of marketing mailings for the magazine business.

Entertainment


	Three months ended August 31,
					$		%
($ amounts in millions)	2024		2023		Change		Change
Revenues	$	16.6	$	0.4	$	16.2	NM
Cost of goods sold		8.3		0.0		8.3	NM
Other operating expenses (1)		8.8		0.9		7.9	NM

Operating income (loss)	$	(0.5)	$	(0.5)	$	—	—	%
Operating margin		NM		NM

(1) Other operating expenses include selling, general and administrative expenses, bad debt expenses, severance and depreciation and amortization.

NM Not meaningful

The Entertainment segment includes the operations of 9 Story Media Group Inc. ("9 Story") and Scholastic Entertainment Inc. ("SEI"). SEI was reported in the Children's Book Publishing and Distribution segment in prior periods. The financial results for SEI for the three months ended August 31, 2023 have been reclassified to Entertainment to reflect this change. Refer to Note 7 of Notes to Condensed Consolidated Financial Statements - unaudited in Item 1, “Financial Statements" for further details regarding the acquisition of 9 Story.

Revenues for the quarter ended August 31, 2024 were $16.6 million, compared to $0.4 million in the prior fiscal year quarter. The $16.2 million increase reflected the addition of 9 Story from the date of acquisition on June 20, 2024 through August 31, 2024 in which a majority of the revenues were driven by production revenue related to episodic deliveries, production services provided to third parties and, to a lesser extent, revenues from royalties and distribution.

Cost of goods sold for the quarter ended August 31, 2024 was $8.3 million, or 50.0% of revenues. Cost of goods sold primarily consists of production costs and amortization, participation expenses and interest on film related obligations.

Other operating expenses for the quarter ended August 31, 2024 were $8.8 million, which included $1.7 million of transaction costs related to the 9 Story acquisition.

Segment operating loss for the quarter ended August 31, 2024 was $0.5 million.

International


	Three months ended August 31,
					$		%
($ amounts in millions)	2024		2023		Change		Change
Revenues	$	56.8	$	57.2	$	(0.4)	(0.7)	%
Cost of goods sold		35.3		35.9		(0.6)	(1.7)	%
Other operating expenses (1)		29.8		29.5		0.3	1.0	%

Operating income (loss)	$	(8.3)	$	(8.2)	$	(0.1)	(1.2)	%
Operating margin		NM		NM

(1) Other operating expenses include selling, general and administrative expenses, bad debt expenses, severance and depreciation and amortization.

NM Not meaningful

Revenues for the quarter ended August 31, 2024 decreased by $0.4 million to $56.8 million, compared to $57.2 million in the prior fiscal year quarter. Local currency revenues across the Company's ongoing foreign operations decreased by $0.2 million, excluding unfavorable foreign exchange impact of $0.2 million. In the U.K., local currency revenues increased $1.1 million, primarily driven by the trade channel which benefited from


SCHOLASTIC CORPORATION Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)

higher sales from backlist titles within the Dog Man and Hunger Games series. In Canada, local currency revenues decreased $0.5 million primarily driven by lower education channel sales due, in part, to lower school funding, coupled with lower sales from the book fairs channel. In Australia and New Zealand, local currency revenues decreased $0.2 million, driven by lower sales in New Zealand, primarily in the book clubs channel due to lower revenue per order and the timing of certain education orders, partially offset by higher revenues in Australia, primarily driven by increased sales from the book fairs and trade channels. Local currency revenues in Asia decreased $0.2 million primarily due to lower sales from the trade and education channels, partially offset by growth in India within the trade channel. Export channel sales also decreased $0.4 million as compared to the prior fiscal year quarter due to the timing of orders.

Cost of goods sold for the quarter ended August 31, 2024 was $35.3 million, or 62.1% of revenues, which was comparable to $35.9 million, or 62.8% of revenues, in the prior fiscal year quarter.

Other operating expenses for the quarter ended August 31, 2024 were $29.8 million, compared to $29.5 million in the prior fiscal year quarter. The Company benefited from lower employee related expenses as the prior fiscal year quarter included $1.2 million of severance expense related to reorganization efforts within the book clubs channel in Canada, which was offset by higher general overhead costs in the quarter ended August 31, 2024.

Segment operating loss for the quarter ended August 31, 2024 was $8.3 million, which was comparable to $8.2 million in the prior fiscal year quarter.

Overhead

Unallocated overhead expense for the quarter ended August 31, 2024 decreased by $4.6 million to $26.1 million, from $30.7 million in the prior year quarter. The decrease was primarily attributable to lower severance expense from the Company's cost-saving initiatives in respect to which the Company incurred $1.2 million in the quarter ended August 31, 2024 compared to $5.1 million in the prior fiscal year quarter. In addition, revenue from rental income increased $0.2 million to $2.7 million for the quarter ended August 31, 2024, compared to $2.5 million in the prior fiscal year quarter, driven by a new tenant leasing space in the Company's headquarters.

Seasonality


SCHOLASTIC CORPORATION Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)

Liquidity and Capital Resources

Cash used by operating activities was $41.9 million for the three months ended August 31, 2024, compared to cash used by operating activities of $38.1 million for the prior fiscal year period, representing an increase in cash used by operating activities of $3.8 million. The increase in cash used was primarily driven by lower customer remittances on receivable balances in the quarter ended August 31, 2024, substantially offset by lower severance payments and lower spending in Education Solutions related to commissions and external labor costs.

Cash used in investing activities was $200.8 million for the three months ended August 31, 2024, compared to cash used in investing activities of $21.8 million in the prior fiscal year period, representing an increase in cash used in investing activities of $179.0 million. The increase in cash used was primarily due to the 9 Story acquisition for $176.4 million, net of cash acquired, during the three months ended August 31, 2024. In addition, the Company incurred higher capital expenditures of $5.7 million primarily related to spending on a new literacy platform within Education Solutions and expanding the available rental space in its headquarters.

Cash provided by financing activities was $211.9 million for the three months ended August 31, 2024, compared to cash used in financing activities of $39.3 million for the prior fiscal year period, representing an increase in cash provided by financing activities of $251.2 million. The increase in cash provided was primarily attributable to borrowings of $225 million under the U.S. credit agreement incurred during the three months ended August 31, 2024 to fund the 9 Story acquisition. In addition, the Company repurchased common stock of $5.0 million, compared to repurchases of $35.9 million in the prior fiscal year quarter, and paid lower dividends of $0.8 million, partially offset by $2.4 million of net repayments of film related obligations in the three months ended August 31, 2024.

Cash Position

The Company’s cash and cash equivalents totaled $84.1 million at August 31, 2024, $113.7 million at May 31, 2024 and $125.8 million at August 31, 2023. Cash and cash equivalents held by the Company’s U.S. operations totaled $30.4 million at August 31, 2024, $54.9 million at May 31, 2024 and $90.1 million at August 31, 2023. Due to the seasonal nature of its business as discussed under “Seasonality”, the Company usually experiences negative cash flows in the June through September time period.

The Company’s operating philosophy is to use cash provided by operating activities to create value by paying down debt, reinvesting in existing businesses and, from time to time, making acquisitions that will complement its portfolio of businesses or acquiring other strategic assets, as well as engaging in shareholder enhancement initiatives, such as share repurchases or dividend declarations. Under the Company's open-market buy-back program, $81.6 million remained available for future purchases of common shares as of August 31, 2024.

The Company has maintained, and expects to maintain for the foreseeable future, sufficient liquidity to fund ongoing operations, including working capital requirements, pension contributions, postretirement benefits, debt service, planned capital expenditures and other investments, as well as dividends and share repurchases. As of August 31, 2024, the Company’s primary sources of liquidity consisted of cash and cash equivalents of $84.1 million, cash from operations and the Company's U.S. credit agreement. The Company is currently in the process of amending its U.S. credit agreement, increasing the borrowing capacity from $300 million to $400 million and extending the term an additional 5 years. The Company expects the U.S. credit agreement to provide it with an appropriate level of flexibility to strategically manage its business operations. The Company's U.S. credit agreement, less commitments of $0.4 million, has $74.6 million of availability. Additionally, the Company has short-term credit facilities of $24.0 million, less current borrowings of $6.1 million and commitments of $3.6 million, resulting in $14.3 million of current availability under these facilities at August 31, 2024. Accordingly, the Company believes these sources of liquidity are sufficient to finance its currently anticipated ongoing operating needs, as well as its financing and investing activities.


SCHOLASTIC CORPORATION Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)

Financing

The Company is party to the U.S. credit agreement and certain credit lines with various banks, including those related to film related obligations, as described in Note 4 of Notes to Condensed Consolidated Financial Statements - unaudited in Item 1, “Financial Statements." The Company had $225.0 million in outstanding borrowings under the U.S. credit agreement as of August 31, 2024.

New Accounting Pronouncements

Reference is made to Note 1 of Notes to Financial Statements - unaudited in Item 1, “Financial Statements,” for information concerning recent accounting pronouncements since the filing of the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2024.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements. Additional written and oral forward-looking statements may be made by the Company from time to time in Securities and Exchange Commission ("SEC") filings and otherwise. The Company cautions readers that results or expectations expressed by forward-looking statements, including, without limitation, those relating to the Company’s future business prospects and strategic plans, ecommerce and digital initiatives, new product introductions, strategies, new education standards, goals, revenues, improved efficiencies, general operating costs, including transportation and labor costs and the extent such costs are impacted by inflationary pressures, manufacturing costs, medical costs, potential cost savings, tax incentives, merit pay, operating margins, working capital, liquidity, capital needs, the cost and timing of capital projects, interest costs, cash flows and income, are subject to risks and uncertainties, which may have an impact on the Company's operations and could cause actual results to differ materially from those indicated in the forward-looking statements, due to factors including those noted in the Annual Report and this Quarterly Report and other risks and factors identified from time to time in the Company’s filings with the SEC. The Company disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.


SCHOLASTIC CORPORATION Item 3. Quantitative and Qualitative Disclosures about Market Risk

The Company conducts its business in various foreign countries, and as such, its cash flows and earnings are subject to fluctuations from changes in foreign currency exchange rates. The Company sells products from its domestic operations to its foreign subsidiaries, creating additional currency risk. The Company manages its exposures to this market risk through internally established procedures and, when deemed appropriate, through the use of short-term forward exchange contracts, which were not significant as of August 31, 2024. The Company does not enter into derivative transactions or use other financial instruments for trading or speculative purposes.

Market risks relating to the Company’s operations result primarily from changes in interest rates in its variable-rate borrowings. The Company is subject to the risk that market interest rates and its cost of borrowing will increase and thereby increase the interest charged under its variable-rate debt.

Additional information relating to the Company’s outstanding financial instruments is included in Note 4 of Notes to Condensed Consolidated Financial Statements - unaudited in Item 1, “Financial Statements.”

The following table sets forth information about the Company’s debt instruments as of August 31, 2024:


($ amounts in millions)	Fiscal Year Maturity
	2025 (1)			2026			2027			2028		2029		Thereafter		Total		Fair Value at 08/31/2024
Debt Obligations
Lines of credit and current portion of long-term debt	$	6.1		$	—		$	—		$	—	$	—	$	—	$	6.1	$	6.1
Average interest rate	4.3		%	—			—			—		—		—

Long-term debt	$	—		$	—		$	225.0		$	—	$	—	$	—	$	225.0	$	225.0

Average interest rate	—						6.8		%	—		—		—
Film related obligations	$	7.9		$	18.4		$	7.8		$	—	$	—	$	—	$	34.1	$	34.1
Average interest rate	6.9		%	8.3		%	7.5		%	—		—		—

(1) Fiscal 2025 includes the remaining nine months of the current fiscal year ending May 31, 2025.


SCHOLASTIC CORPORATION Item 4. Controls and Procedures

The Chief Executive Officer and the Chief Financial Officer of the Corporation, after conducting an evaluation, together with other members of the Company’s management, of the effectiveness of the design and operation of the Corporation’s disclosure controls and procedures as of August 31, 2024, have concluded that the Corporation’s disclosure controls and procedures were effective to ensure that information required to be disclosed by the Corporation in its reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the SEC and accumulated and communicated to members of the Company’s management, including the Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure. There was no change in the Corporation’s internal control over financial reporting that occurred during the quarter ended August 31, 2024 that has materially affected, or is reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

PART II – OTHER INFORMATION

SCHOLASTIC CORPORATION

Item 1. Business

In Item 1 (Business) in Part I of the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2024, the Company included a description of its business activities. Except as set forth below, as of the date of this Quarterly Report on Form 10-Q there have been no material changes to the business described in the Company’s Annual Report for the fiscal year ended May 31, 2024.

The Company categorizes its businesses into four reportable segments: Children's Book Publishing and Distribution, Education Solutions, International and the newly formed Entertainment segment. The Entertainment segment includes the operations of 9 Story Media Group Inc. ("9 Story"), and Scholastic Entertainment Inc. ("SEI"). SEI was reported in the Children's Book Publishing and Distribution segment in prior periods. Refer to Note 7 of Notes to Condensed Consolidated Financial Statements - unaudited in Item 1, “Financial Statements" for further details regarding the acquisition of 9 Story. There have been no other changes to the Company's segments. A description of the Entertainment segment is below.

ENTERTAINMENT

The Entertainment segment includes the development, production, distribution and licensing of kids and family film and television content. This segment creates, develops, and produces award-winning branded properties using licensed IP through its creative affairs group. The Company has an in-house animation studio, Brown Bag Films, which is recognized for producing high-quality and popular programs such as “Doc McStuffins®,” “Daniel Tiger’s Neighborhood®,” “Octonauts®,” “Wild Kratts®,” "Blue's Clue's & You!®," and “The Magic School Bus Rides Again".

This segment is also responsible for exploiting the Company's film and television assets, which include a large television programming library based on the Company's intellectual property (IP) as well as third party programs. The Company distributes its animated and, to a lesser extent, live-action programming through various domestic and international channels, including subscription video on demand (SVOD), linear TV (traditional broadcast) and advertising-based video on demand (AVOD) including YouTube.

The Company has a consumer products division which builds global entertainment brands for kids, with expertise across creative, brand marketing, licensing and merchandising, working closely with television and digital distribution teams, as well as third party IP owners, licensees and retailers to ensure coordinated and strategic brand management.

SCHOLASTIC CORPORATION

Item 1a. Risk Factors

In Item 1A (Risk Factors) in Part I of the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2024, the Company described material risk factors which could affect its business. Except as set forth below, as of the date of this Quarterly Report on Form 10-Q there have been no material changes to the risk factors described in the Company’s Annual Report for the fiscal year ended May 31, 2024. Any of the risks identified in such Annual Report, in this Quarterly Report on Form 10-Q or in other reports the Company files with the SEC, and other risks the Company has not anticipated or discussed, could have a material adverse impact on the Company’s business, financial condition or results of operations.

Changes in tax laws or a change in tax status may result in a loss of government tax credits in the Company's entertainment business.

The Company, through its economic control of 9 Story Media Group. ("9 Story"), presently benefits from significant Canadian government tax credits at both the federal and provincial level. The Company's entertainment business finances a significant portion of its production budgets from such government tax credits and certain anticipated government tax credits are used as collateral for the production loans. Pursuant to an opinion issued by the Minister of Canadian Heritage with respect to the Company’s investment in 9 Story, the Company anticipates that 9 Story will continue to be eligible for such tax credits. The Company could lose its Canadian government tax credits and incentives if the Canadian regulated business into which the Company has invested (9 Story) ceases to be controlled by Canadian nationals. In order to preserve the benefits, the Company's voting equity ownership of 9 Story is limited to 25% of the total voting equity shares outstanding. Further, 9 Story’s business is managed by a board of directors, a majority of whose members are Canadian nationals who are not otherwise affiliated with the Company, consistent with the Company’s representations to the Canadian Ministry of Heritage. There can be no assurance that the individual tax incentive programs currently available to the Company will not be reduced, amended, or eliminated or that the Company or any specific production will continue to qualify for them, any of which may have an adverse effect on the Company’s entertainment business, results of operations, or financial condition.

The Company's entertainment business depends on key relationships with buyers of film and television content and uncertainty with buyers or changes in demand for film and television content may impact the financial performance of the entertainment business.

The media and content industry in which the Company's entertainment business operates is rapidly evolving, including the market and demand for film and television content, with the entrance of new major streaming platforms and consolidation of traditional platforms, as well as the changing viewing habits of children and youth. While the Company believes that the demand for high-quality content will continue, industry trends may continue to change and the Company's entertainment business may be adversely affected by such changing industry trends, including potential impacts of mergers and acquisitions in the industry. There can be no certainty that demand for content will be sustained over the long term, that consumers will have an appetite for the programming produced by the Company's entertainment business or that the Company will be able to identify and be responsive to new content trends.

The Company may not be able to sustain, manage or effectively execute on its strategy with respect to its acquisition of 9 Story, which may impact the Company's financial performance.

The expected financial benefits of the Company's acquisition of 9 Story depend, among other things, on its ability to realize synergies with 9 Story and develop new programming utilizing Scholastic's current and future IP that achieves market and audience acceptance. If the Company is unable to do this, the Company's business, financial condition, and performance could be materially and adversely affected.

SCHOLASTIC CORPORATION

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information with respect to repurchases of shares of Common Stock by the Corporation during the three months ended August 31, 2024:

Issuer Purchases of Equity Securities

(Dollars in millions, except per share amounts)


Period	Total number of shares purchased	Average price paid per share	Total number of shares purchased as part of publicly announced plans or programs	Maximum number of shares (or approximate dollar value) that may yet be purchased under the plans or programs (i)
June 1 through June 30, 2024	—	—	—	$86.6
July 1 through July 31, 2024	63,835	31.31	63,835	84.6
August 1 through August 31, 2024	99,359	30.48	99,359	81.6
Total	163,194		163,194	$81.6

(i) Represents the amount remaining at August 31, 2024 under the Board authorization for Common share repurchases announced on December 13, 2023 and the additional $54.6 Board authorization for Common share repurchases announced on March 20, 2024, which is available for further repurchases, from time to time as conditions allow, on the open market or through privately negotiated transactions. See Note 12 of Notes to Condensed Consolidated Financial Statements - unaudited in Item 1, “Financial Statements,” for a description of the Company’s share buy-back program and share repurchase authorizations.

SCHOLASTIC CORPORATION

Item 5. Other Information

During the three months ended August 31, 2024, none of our directors or officers informed us of the adoption or termination of a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" (as each term is defined in Item 408(a) of Regulation S-K).

SCHOLASTIC CORPORATION

Item 6. Exhibits

Exhibits:


21			Subsidiaries of the Corporation, as of August 31, 2024.

31.1			Certification of the Chief Executive Officer of Scholastic Corporation filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2			Certification of the Chief Financial Officer of Scholastic Corporation filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32			Certifications of the Chief Executive Officer and Chief Financial Officer of Scholastic Corporation furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101			Financial Statements from the Quarterly Report on Form 10-Q of the Company for the quarter ended August 31, 2024 formatted in Inline Extensible Business Reporting Language: (i) Condensed Consolidated Statements of Operations; (ii) Condensed Consolidated Statements of Comprehensive Income (Loss), (iii) Condensed Consolidated Balance Sheets; (iv) Condensed Consolidated Statements of Changes in Stockholders' Equity; (v) Condensed Consolidated Statements of Cash Flows; and (vi) Notes to Condensed Consolidated Financial Statements.

104			Cover Page, formatted in Inline Extensible Business Reporting Language and contained in Exhibit 101.

SCHOLASTIC CORPORATION

QUARTERLY REPORT ON FORM 10-Q, DATED August 31, 2024

Exhibits Index


Exhibit Number			Description of Document

21			Subsidiaries of the Corporation, as of August 31, 2024.

31.1			Certification of the Chief Executive Officer of Scholastic Corporation filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2			Certification of the Chief Financial Officer of Scholastic Corporation filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32			Certifications of the Chief Executive Officer and Chief Financial Officer of Scholastic Corporation furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101			Financial Statements from the Quarterly Report on Form 10-Q of the Company for the quarter ended August 31, 2024 formatted in Inline Extensible Business Reporting Language: (i) Condensed Consolidated Statements of Operations; (ii) Condensed Consolidated Statements of Comprehensive Income (Loss), (iii) Condensed Consolidated Balance Sheets; (iv) Condensed Consolidated Statements of Changes in Stockholders' Equity; (v) Condensed Consolidated Statements of Cash Flows; and (vi) Notes to Condensed Consolidated Financial Statements.

104			Cover Page, formatted in Inline Extensible Business Reporting Language and contained in Exhibit 101.

SCHOLASTIC CORPORATION

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		SCHOLASTIC CORPORATION
		(Registrant)

Date: September 27, 2024	By:	/s/ Peter Warwick


		Peter Warwick
		President and Chief Executive Officer (Principal Executive Officer)

Date: September 27, 2024	By:	/s/ Haji L. Glover


		Haji L. Glover
		Executive Vice President and Chief Financial Officer (Principal Financial Officer)

Exhibit 21

SCHOLASTIC CORPORATION – incorporated in Delaware, USA.

SUBSIDIARY LIST – as of August 31, 2024

(Subsidiaries are indented under its direct parent)


Scholastic Inc.			New York
Scholastic Entertainment Inc.			New York
524 Films L.L.C.			Delaware
Listen Inn LLC (formerly Retroranch L.L.C.)			Delaware
Yellow Bus, LLC			Delaware
9 Story Media US, Corp.			Delaware
Out of the Blue Enterprises LLC dba 9 Story USA			New York
Out of the Blue Digital LLC			New York
Out of the Blue Worldwide LLC			New York
Out of the Blue Studios LLC			New York
OOTB Productions Inc.			New York
Colorforms Brand LLC			New York
PT Bali Animasi Solusi Ekakarsa1			Indonesia
PT Bali Animation Studio2			Indonesia
9 Story Media Group Inc.3			Ontario
9 Story Production Holdings Inc.			Ontario
9 Story Production Holdings 2 Inc.			Ontario
9 Story Development Inc.			Ontario
9 Story Interactive Inc.			Ontario
BTH Inc.			Ontario
Carl Squared Productions, Inc.			Ontario
CITH Productions Inc.			Ontario
Groundling Marsh Productions Inc.			Ontario
Homeschooled Production Inc.			Ontario
Oliver Fits Productions Inc.			Ontario
Portfolio Completed Projects Inc.			Ontario
Roboroach Productions III Inc.			Ontario
SFN Productions Inc.			Ontario
9 Story Digital Inc.			Ontario
Banana Productions Inc.			Ontario
BC 3 Productions Inc.			Ontario
BC 4 Productions Inc.			Ontario
BC 5 Productions Inc.			Ontario
Bot Productions Inc.			Ontario
BRB 1 Productions Inc.			Ontario
Camp Wild Productions Inc.			Ontario
D6 Canada Inc.			Ontario
D7 Canada Inc.			Ontario
D8 Canada Inc.			Ontario
DD 1 Productions Inc.			Ontario
DNH 6 Productions Inc.			Ontario
DNH 7 Productions Inc.			Ontario
DNH 8 Productions Inc.			Ontario
ER 1 Productions Inc.			Ontario
FTT 1 Productions Inc.			Ontario
LATW 2 Productions Inc.			Ontario
LBL Productions Inc.			Ontario
RS 1 Productions Inc.			Ontario
Ruby Productions Inc. (formerly Alexaland Productions Inc.)			Ontario
Ruby 2 Productions Inc.			Ontario
SG 1 Productions Inc. (formerly RR 1 Productions Inc.)			Ontario

1 0.5% owned by Scholastic Entertainment Inc.

2 0.5% owned by Scholastic Entertainment Inc.

3 25% voting shares and 100% common shares owned by Scholastic Inc. and accounted for as a variable interest entity whose financial results are consolidated into the financial statements of Scholastic Corporation.

Exhibit 21

SCHOLASTIC CORPORATION – incorporated in Delaware, USA.

SUBSIDIARY LIST – as of August 31, 2024

(Subsidiaries are indented under its direct parent)


SG 2 Productions Inc			Ontario
The Monster Factory Corporation			Ontario
Why Productions Inc.			Ontario
WK 5 Productions Inc.			Ontario
WK 6 Productions Inc.			Ontario
WK 7 Productions Inc.			Ontario
WK Amalco Inc.			Ontario
XR 1 Productions Inc.			Ontario
XR 2 Productions Inc			Ontario
Niagara Films Ireland Limited			Ireland
9 Story Distribution International Limited			Ireland
Brown Bag Films Unlimited Company			Ireland
ACBB Productions Limited			Ireland
ADAT Productions DAC			Ireland
ADAT 2 Productions DAC			Ireland
B5 Elk Productions DAC			Ireland
Bhean Productions Limited			Ireland
BOGO Productions DAC			Ireland
Bolgmor Productions DAC			Ireland
BOZ Productions Limited			Ireland
Brown Bag Films UK Ltd.			England
NK2 Productions Limited			England
PRS Productions Limited			England
The Knight Productions Limited			England
Kind of Productions Limited			England
Cone Productions DAC			Ireland
ERK Film Productions DAC			Ireland
IMNI Productions DAC			Ireland
KOSA Productions DAC			Ireland
KWBB Productions Limited			Ireland
KWD Productions DAC			Ireland
Lubird Productions DAC			Ireland
OG Productions DAC			Ireland
RYD Productions DAC			Ireland
RYD 2 Productions DAC			Ireland
Silver Slipper Productions DAC			Ireland
VMP3 Productions DAC			Ireland
Scholastic UK Ltd.			England
Scholastic Book Clubs Limited			England
Make Believe Ideas Ltd.			England
Chicken House Publishing Limited			England
Scholastic Limited			England
Scholastic Ireland Ltd.			Ireland
Weston Woods Studios, Inc.			Delaware
Georgetown Studios, Inc.			Connecticut
Children’s Music Library, Inc.			New York
The Scholastic Store, Inc.			New York
Scholastic Distribution Services L.L.C.			Delaware
Klutz			California
Scholastic Export Inc.			Delaware
Scholastic Book Fairs, Inc.			Delaware
Scholastic 557 Broadway, LLC			Delaware
Learning Ovations, Inc.			Delaware

Exhibit 21

SCHOLASTIC CORPORATION – incorporated in Delaware, USA.

SUBSIDIARY LIST – as of August 31, 2024

(Subsidiaries are indented under its direct parent)


Scholastic Australia Pty. Ltd.			Australia
Scholastic Canada Ltd.			Canada
Ooka Island Inc.			Canada
Scholastic Hong Kong Ltd.			Hong Kong
Scholastic India Private Limited4			India
Scholastic Mexico S. de R. L. de C.V.			Mexico
Scholastic New Zealand Ltd.			New Zealand
Scholastic Argentina S.R.L.			Argentina
Scholastic Education Information Consulting (Shanghai) Co., Ltd.			China
Scholastic International IT Support Centre Private Limited			India
Scholastic Education International (Singapore) Private Limited			Singapore
Scholastic Reading (Beijing) Culture Development Co. Ltd.			China
Scholastic (Asia) SDN. BHD			Malaysia
Grolier Incorporated			Delaware
Scholastic Library Publishing, Inc.			Delaware
Grolier International, Inc.			Delaware
Grolier International Finance Inc. (Philippines)			Philippines
Grolier International Private Limited (India)			India
Grolier Overseas Incorporated			Delaware
Caribe Grolier, Inc.			Puerto Rico

4 1% owned by Scholastic Export Inc.

Exhibit 31.1

I, Peter Warwick, the principal executive officer of Scholastic Corporation, certify that:


1.	I have reviewed this Quarterly Report on Form 10-Q of Scholastic Corporation;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d- 15(f)) for the registrant and have:

	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: September 27, 2024
			/s/ Peter Warwick
			Peter Warwick
			President and Chief Executive Officer

Exhibit 31.2

I, Haji L. Glover, the principal financial officer of Scholastic Corporation, certify that:


1.	I have reviewed this Quarterly Report on Form 10-Q of Scholastic Corporation;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: September 27, 2024
			/s/ Haji L. Glover
			Haji L. Glover
			Executive Vice President and Chief Financial Officer

Exhibit 32

Certification

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

with Respect to the Quarterly Report on Form 10-Q

for the Quarter ended August 31, 2024

of Scholastic Corporation


			Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), each of the undersigned officers of Scholastic Corporation, a Delaware corporation (the “Company”), does hereby certify, to the best of such officer’s knowledge, that:

			1.			The Company’s Quarterly Report on Form 10-Q for the quarter ended August 31, 2024 (the “Form 10-Q”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

			2.			Information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date: September 27, 2024
			/s/ Peter Warwick
			Peter Warwick
			Chief Executive Officer

Date: September 27, 2024
			/s/ Haji L. Glover
			Haji L. Glover
			Chief Financial Officer

The certification set forth above is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of the Form 10-Q or as a separate disclosure document of the Company or the certifying officers.

Document and Entity Information	3 Months Ended
Document and Entity Information	Aug. 31, 2024 shares
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Aug. 31, 2024
Entity File Number	000-19860
Entity Registrant Name	SCHOLASTIC CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-3385513
Entity Address, Address Line One	557 Broadway,
Entity Address, City or Town	New York,
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10012
City Area Code	212
Local Phone Number	343-6100
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	SCHL
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0000866729
Current Fiscal Year End Date	--05-31
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Class
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding	27,309,294
Common Class A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding	828,100

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Income Statement [Abstract]
Revenues	$ 237.2	$ 228.5
Operating costs and expenses:
Cost of goods sold	128.3	130.0
Selling, general and administrative expenses	182.1	184.2
Depreciation and amortization	15.3	13.4
Total operating costs and expenses	325.7	327.6
Operating income (loss)	(88.5)	(99.1)
Interest income (expense), net	(3.0)	1.4
Other components of net periodic benefit (cost)	(0.3)	(0.3)
Earnings (loss) before income taxes	(91.8)	(98.0)
Provision (benefit) for income taxes	(29.3)	(23.8)
Net income (loss)	(62.5)	(74.2)
Net income (loss) attributable to Scholastic Corporation	$ (62.5)	$ (74.2)
Basic and diluted earnings (loss) per share of Class A and Common Stock
Basic (in Dollars per share)	$ (2.21)	$ (2.35)
Diluted (in Dollars per share)	$ (2.21)	$ (2.35)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (62.5)	$ (74.2)
Other comprehensive income (loss), net:
Foreign currency translation adjustments	8.2	1.8
Pension and postretirement adjustments (net of tax)	0.2	0.2
Total other comprehensive income (loss), net	8.4	2.0
Comprehensive income (loss)	$ (54.1)	$ (72.2)

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Aug. 31, 2024	May 31, 2024	Aug. 31, 2023
Current Assets:
Cash and cash equivalents	$ 84.1	$ 113.7	$ 125.8
Accounts receivable, net	201.1	235.0	201.9
Inventories, net	310.3	264.2	353.2
Income tax receivable	46.1	15.2	33.4
Prepaid expenses and other current assets	73.5	48.8	70.4
Total current assets	715.1	676.9	784.7
Noncurrent Assets:
Property, plant and equipment, net	525.4	511.9	523.3
Prepublication costs, net	48.4	49.5	55.0
Investment in film and television programs, net	40.4	0.0	0.0
Operating lease right-of-use assets, net	105.0	99.1	96.4
Royalty advances, net	65.1	57.8	58.6
Goodwill	204.4	132.8	132.8
Other intangible assets, net	94.7	10.3	9.4
Noncurrent deferred income taxes	22.6	23.1	20.5
Other assets and deferred charges	138.9	109.8	91.6
Total noncurrent assets	1,244.9	994.3	987.6
Total assets	1,960.0	1,671.2	1,772.3
Current Liabilities:
Lines of credit and current portion of long-term debt	6.1	6.0	5.9
Film related obligations	20.5	0.0	0.0
Accounts payable	184.0	138.5	167.7
Accrued royalties	77.5	48.5	72.0
Deferred revenue	173.9	161.1	171.1
Other accrued expenses	139.1	156.3	145.9
Accrued income taxes	2.1	1.9	13.2
Operating lease liabilities	25.2	22.4	22.9
Total current liabilities	628.4	534.7	598.7
Noncurrent Liabilities:
Total long-term debt	225.0	0.0	0.0
Operating lease liabilities	90.6	89.2	83.1
Film related obligations	13.6	0.0	0.0
Other noncurrent liabilities	45.1	29.2	35.9
Total noncurrent liabilities	374.3	118.4	119.0
Commitments and Contingencies (see Note 5)	0.0	0.0	0.0
Stockholders’ Equity:
Preferred Stock, $1.00 par value: Authorized, 2.0 shares; Issued and Outstanding, none	0.0	0.0	0.0
Additional paid-in capital	606.3	604.6	632.7
Accumulated other comprehensive income (loss)	(44.1)	(52.5)	(53.8)
Retained earnings	955.6	1,023.7	955.1
Treasury stock, at cost: 15.6, 15.5 and 13.6 shares, respectively	(560.9)	(558.1)	(479.8)
Total stockholders’ equity	957.3	1,018.1	1,054.6
Total liabilities and stockholders’ equity	1,960.0	1,671.2	1,772.3
Common Class A
Stockholders’ Equity:
Common Stock, value	0.0	0.0	0.0
Common Class
Stockholders’ Equity:
Common Stock, value	$ 0.4	$ 0.4	$ 0.4

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Aug. 31, 2024	May 31, 2024	Aug. 31, 2023
Preferred stock at par value per share (in dollars per share)	$ 1.00	$ 1.00	$ 1.00
Preferred stock, shares authorized (in shares)	2,000,000.0	2,000,000.0	2,000,000.0
Preferred stock, shares issued (in shares)	0	0	0
Preferred stock, shares outstanding (in shares)	0	0	0
Common Stock, par value per share (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	70,000,000.0	70,000,000.0	70,000,000.0
Common stock, shares issued (in shares)	42,900,000	42,900,000	42,900,000
Common stock, shares outstanding (in shares)	27,300,000	27,400,000	29,300,000
Treasury stock (in shares)	15,600,000	15,500,000	13,600,000
Common Class A
Common Stock, par value per share (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	3,200,000	3,200,000	4,000,000.0
Common stock, shares issued (in shares)	800,000	800,000	1,700,000
Common stock, shares outstanding (in shares)	800,000	800,000	1,700,000

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY Statement - USD ($) shares in Thousands, $ in Millions	Total	Common Class	Common Class Common Class A	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Treasury Stock At Cost	Total Stockholders' Equity of Scholastic Corporation	Noncontrolling Interest
Beginning balance at May. 31, 2023	$ 1,164.5	$ 0.4	$ 0.0	$ 632.2	$ (55.8)	$ 1,035.6	$ (449.5)	$ 1,162.9	$ 1.6
Balance (in shares) at Aug. 31, 2023		29,300	1,700
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(74.2)					(74.2)		(74.2)
Foreign currency translation adjustments	1.8				1.8			1.8
Pension and post-retirement adjustments (net of tax of $0.0)	0.2				0.2			0.2
Stock-based compensation	2.3			2.3				2.3
Proceeds pursuant to stock-based compensation plans	3.0			3.0				3.0
Purchases of treasury stock at cost (in shares)		(800)
Purchases of treasury stock at cost	(36.2)						(36.2)	(36.2)
Treasury stock issued pursuant to equity-based plans (in shares)		100
Treasury stock issued pursuant to equity-based plans	1.6			(4.3)			5.9	1.6
Dividends	(6.3)					(6.3)		(6.3)
Stockholders' Equity, Other	(2.1)			(0.5)				(0.5)	(1.6)
Ending Balance at Aug. 31, 2023	$ 1,054.6	$ 0.4	$ 0.0	632.7	(53.8)	955.1	(479.8)	1,054.6	0.0
Balance (in shares) at May. 31, 2023		30,000	1,700
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared per class A and common share (in Dollars per share)	$ 0.20
Beginning balance at May. 31, 2024	$ 1,018.1	$ 0.4	$ 0.0	604.6	(52.5)	1,023.7	(558.1)	1,018.1	0.0
Balance (in shares) at Aug. 31, 2024		27,300	800
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(62.5)					(62.5)		(62.5)
Foreign currency translation adjustments	8.2				8.2			8.2
Pension and post-retirement adjustments (net of tax of $0.0)	0.2				0.2			0.2
Stock-based compensation	2.2			2.2				2.2
Proceeds pursuant to stock-based compensation plans	0.1			0.1				0.1
Purchases of treasury stock at cost (in shares)		(200)
Purchases of treasury stock at cost	(5.0)						(5.0)	(5.0)
Treasury stock issued pursuant to equity-based plans (in shares)		100
Treasury stock issued pursuant to equity-based plans	1.6			(0.6)			2.2	1.6
Dividends	(5.6)					(5.6)		(5.6)
Ending Balance at Aug. 31, 2024	$ 957.3	$ 0.4	$ 0.0	$ 606.3	$ (44.1)	$ 955.6	$ (560.9)	$ 957.3	$ 0.0
Balance (in shares) at May. 31, 2024		27,400	800
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared per class A and common share (in Dollars per share)	$ 0.20

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Statement of Stockholders' Equity [Abstract]
Pension and postretirement adjustments, tax portion	$ 0.1	$ 0.1
Dividends declared per class A and common share (in Dollars per share)	$ 0.20	$ 0.20

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Cash flows - operating activities:
Net income (loss) attributable to Scholastic Corporation	$ (62.5)	$ (74.2)
Adjustments to reconcile Net income (loss) to net cash provided by (used in) operating activities:
Provision for losses on accounts receivable	0.9	0.6
Provision for losses on inventory	4.8	6.2
Provision for losses on royalty advances	0.7	0.9
Amortization of prepublication costs	5.5	6.7
Amortization of production costs	1.2	0.0
Depreciation and amortization	18.3	15.8
Amortization of pension and postretirement plans	0.1	0.1
Deferred income taxes	0.8	0.5
Stock-based compensation	2.2	2.3
Income from equity-method investments	(0.2)	(0.2)
Changes in assets and liabilities, net of amounts acquired:
Accounts receivable	50.6	75.8
Inventories	(49.3)	(24.5)
Prepaid expenses and other current assets	(17.2)	(23.4)
Investment in film and television programs, net	2.0	0.0
Income tax receivable	(30.3)	(24.5)
Royalty advances	(7.8)	(2.6)
Accounts payable	42.4	(3.4)
Accrued income taxes	0.1	(0.1)
Accrued royalties	21.7	19.2
Deferred revenue	1.5	2.0
Other accrued expenses	(24.7)	(21.4)
Other, net	(2.7)	6.1
Net cash provided by (used in) operating activities	(41.9)	(38.1)
Cash flows - investing activities:
Prepublication expenditures	(4.4)	(5.4)
Additions to property, plant and equipment	(20.0)	(14.3)
Acquisitions, net of cash acquired	(176.4)	0.0
Purchase of noncontrolling interest	0.0	(2.1)
Net cash provided by (used in) investing activities	(200.8)	(21.8)
Cash flows - financing activities:
Borrowings under lines of credit, credit agreement and revolving loan	225.6	0.7
Repayments of lines of credit, credit agreement and revolving loan	(0.7)	(0.9)
Borrowings under film related obligations	2.6	0.0
Repayments of film related obligations	(5.0)	0.0
Repayment of capital lease obligations	(0.6)	(0.6)
Reacquisition of common stock	(5.0)	(35.9)
Proceeds pursuant to stock-based compensation plans	0.5	3.8
Payment of dividends	(5.7)	(6.5)
Other	0.2	0.1
Net cash provided by (used in) financing activities	211.9	(39.3)
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	1.2	0.5
Net increase (decrease) in cash and cash equivalents	(29.6)	(98.7)
Cash and cash equivalents at beginning of period	113.7	224.5
Cash and cash equivalents at end of period	$ 84.1	$ 125.8

Basis of Presentation	3 Months Ended
Basis of Presentation	Aug. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	BASIS OF PRESENTATION Principles of consolidation The accompanying condensed consolidated interim financial statements (referred to as the “Financial Statements” herein) include the accounts of Scholastic Corporation (the “Corporation”) and all wholly-owned and majority-owned subsidiaries (collectively, “Scholastic” or the “Company”). The Company reviews its relationships with other entities to identify whether it is the primary beneficiary of a variable interest entity (“VIE”). If the determination is made that the Company is the primary beneficiary, then the entity is consolidated. Intercompany transactions are eliminated in consolidation. The Company’s fiscal year is not a calendar year. Accordingly, references in this document to fiscal 2025 relate to the twelve-month period ending May 31, 2025. Noncontrolling Interest On June 1, 2023, the Company acquired the remaining shares of Make Believe Ideas Limited ("MBI"), a UK-based children's book publishing company, which represented a 5.0% noncontrolling interest, increasing the Company's total ownership from 95.0% to 100%. Prior to June 1, 2023, the founder and chief executive officer of MBI retained a 5.0% noncontrolling ownership interest in MBI. The Company fully consolidated MBI as of the acquisition date and the 5.0% noncontrolling interest was classified within stockholder's equity. Interim Financial Statements The accompanying Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”) for interim financial information, and should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2024. The Financial Statements presented in this Quarterly Report on Form 10-Q are unaudited; however, in the opinion of management, the Financial Statements reflect all adjustments, consisting solely of normal, recurring adjustments, necessary for the fair presentation of the Financial Statements for the periods presented. Seasonality The Company’s Children’s Book Publishing and Distribution school-based book club and book fair channels and most of its Education Solutions businesses operate on a school-year basis; therefore, the Company’s business is highly seasonal. As a result, the Company’s revenues in the first and third quarters of the fiscal year generally are lower than its revenues in the other two fiscal quarters. Typically, school-based channels and magazine revenues are minimal in the first quarter of the fiscal year as schools are not in session. Education channel revenues are generally higher in the fourth quarter. Trade channel and Entertainment segment revenues can vary throughout the year due to the timing of published titles' release dates and program production deliveries and distribution license period start dates. Use of estimates The preparation of these Financial Statements involves the use of estimates and assumptions by management, which affects the amounts reported in the Financial Statements and accompanying notes. The Company bases its estimates on historical experience, current business factors, and various other assumptions believed to be reasonable under the circumstances, all of which are necessary, in order to form a basis for determining the carrying values of certain assets and liabilities. Actual results may differ from those estimates and assumptions. On an on-going basis, the Company evaluates the adequacy of its reserves and the estimates used in these calculations, including, but not limited to: •Accounts receivable allowance for credit losses •Pension and postretirement benefit plans •Uncertain tax positions •The timing and amount of future income taxes and related deductions •Inventory reserves •Cost of goods sold from book fair operations during interim periods based on estimated gross profit rates •Sales tax contingencies •Royalty advance reserves and royalty expense accruals •Expected economic useful life of film and television program assets •Impairment testing for goodwill, other intangible and other long-lived assets and investments •Assets and liabilities acquired in business combinations •Variable consideration related to anticipated returns •Allocation of transaction price to contractual performance obligations Summary of Significant Accounting Policies In Notes to Consolidated Financial Statements of the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2024 the Company included a description of its significant accounting policies. Except as set forth below, as of the date of this Quarterly Report on Form 10-Q there have been no material changes to the significant accounting policies described in the Company’s Annual Report for the fiscal year ended May 31, 2024 The below significant accounting policies relate to the Company's entertainment business, which includes the operations of 9 Story Media Group Inc. ("9 Story") and Scholastic Entertainment Inc. ("SEI"). Refer to Note 7, "Acquisitions" for further details regarding the acquisition of 9 Story. Revenue recognition The Company’s revenue recognition policies for its entertainment business include the following: Film and TV production - Revenue is deferred during production and recognized when the film or episodes have been delivered and are available for showing or exploitation. Production services - Revenue is recognized using the percentage-of-completion method based on the proportion of costs incurred in the current period to total expected costs. Licensing - Revenue from the sale or granting of broadcast license rights to third parties is recognized when the licensed content is available to the customer and the customer has the contractual right to broadcast or stream the content. Royalty income - Revenue from sales and usage-based royalties related to licenses is generally recognized when the subsequent sale or usage occurs. Investment in film and television programs Investments in film and television programs are stated at the lower of cost or net realizable value. Investment in film and television programs includes all direct production and financing costs incurred during production and minimum guarantee payments made to acquire distribution rights. Interest costs are capitalized to the cost of the film or television program until substantially all of the activities required for delivery are complete. Investments in film and television programs are amortized using the declining-balance method with rates ranging from 50% to 90% at the time of initial episodic delivery and at rates ranging from 10% to 25% annually thereafter. The determination of the rates is based on the expected economic useful life of the film or television program and includes factors such as rights retained by the Company, the availability of rights to renew licenses for episodic television programs in various territories, and the availability of secondary market revenue. The Company regularly reviews the recoverability of these capitalized costs based on expected future cash flows. Government financing and assistance The Company has access to government programs and tax credits that are designed to assist film, television and digital media production and distribution. Amounts received and amounts receivable which relate to the Company's film and television program assets are recorded as a reduction in the production costs of the related asset. New Accounting Pronouncements There were no new accounting pronouncements issued in the first quarter of fiscal 2025 which would impact the Company. Refer to the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2024 for more information on current applicable authoritative guidance and its impact on the Company's financial statements. In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, “Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures.” This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This ASU is effective for the Company's fiscal year 2025, and interim periods starting in fiscal year 2026. Early adoption is permitted. The amendments in this ASU are to be applied retrospectively to all prior periods presented in the financial statements. The Company is currently assessing the impact of the disclosure requirements on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740)." The amendments in this update enhance the transparency and decision usefulness of income tax disclosures to provide information to better assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The amendments in this ASU require more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This ASU will be effective for the Company's fiscal year 2026. Early adoption is permitted. The amendments are to be applied prospectively, but may be applied retrospectively to all prior periods presented in the financial statements. The Company is currently assessing the impact of the disclosure requirements on its consolidated financial statements.

Revenues

3 Months Ended

Aug. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenues

REVENUES

Disaggregated Revenue Data

The following table presents the Company’s segment revenues disaggregated by region and domestic channel:


	Three months ended
	August 31,
	2024		2023
Book Clubs - U.S.	$	2.7	$	2.6
Book Fairs - U.S.		28.8		27.3
Trade - U.S. (1)		58.2		62.1
Trade - International (2)		15.7		10.4
Total Children's Book Publishing and Distribution	$	105.4	$	102.4

Education Solutions - U.S.	$	55.7	$	66.0
Total Education Solutions	$	55.7	$	66.0

Entertainment - U.S.	$	1.6	$	0.4
Entertainment - International (3)		15.0		—
Total Entertainment (1)	$	16.6	$	0.4

International - Major Markets (4)	$	48.1	$	47.8
International - Other Markets (5)		8.7		9.4
Total International	$	56.8	$	57.2

Overhead (6)	$	2.7	$	2.5
Total Overhead	$	2.7	$	2.5

Total	$	237.2	$	228.5

(2) Primarily includes foreign rights and certain product sales in the UK.

(3) Primarily includes production, distribution and licensing revenues in Canada, Ireland and Indonesia.

(4) Includes Canada, UK, Australia and New Zealand.

(5) Primarily includes markets in Asia.

(6) Overhead includes rental income related to leased space in the Company's headquarters.

Estimated Returns

Contract Liabilities

The following table presents further detail regarding the Company's contract liabilities as of the dates indicated:


	August 31, 2024		May 31, 2024		August 31, 2023
Book fairs incentive credits	$	99.4	$	114.2	$	96.1
Magazines+ subscriptions		22.2		4.6		24.2
U.S. digital subscriptions		19.2		15.6		26.8
U.S. education-related (1)		10.3		10.1		12.1
Media-related		6.8		0.0		0.0
Stored value cards		17.3		16.7		13.1
Other (2)		5.0		6.4		9.4
Total contract liabilities	$	180.2	$	167.6	$	181.7

(1) Primarily includes contract liabilities related to contracts with school districts and professional services.

(2) Primarily includes contract liabilities related to various international products and services.

Allowance for Credit Losses

The following table presents the change in the allowance for credit losses, which is included in Accounts Receivable, net on the Condensed Consolidated Balance Sheets:


	Allowance for Credit Losses
Balance as of June 1, 2024	$	14.9
Provision (benefit)		0.9
Write-offs and other		(0.4)
Balance as of August 31, 2024	$	15.4

Segment Information

3 Months Ended

Aug. 31, 2024

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company categorizes its businesses into four reportable segments: Children’s Book Publishing and Distribution, Education Solutions, Entertainment and International.

United States through its school reading events business, which includes the book clubs and book fairs channels, and through the trade channel. This segment is comprised of two operating segments.

•Entertainment includes the development, production, distribution and licensing of children and family film and television content. This segment is comprised of one operating segment.

The following table sets forth the Company's revenue and operating income (loss) by segment for the periods indicated:


	Three months ended
	August 31,
	2024		2023
Revenues
Children's Book Publishing and Distribution (1)	$	105.4	$	102.4
Education Solutions		55.7		66.0
Entertainment (1)		16.6		0.4
International		56.8		57.2
Overhead (2)		2.7		2.5
Total	$	237.2	$	228.5

Operating income (loss)
Children's Book Publishing and Distribution (1)	$	(36.6)	$	(41.0)
Education Solutions		(17.0)		(18.7)
Entertainment (1)		(0.5)		(0.5)
International		(8.3)		(8.2)
Overhead (2)		(26.1)		(30.7)
Total	$	(88.5)	$	(99.1)

Debt

3 Months Ended

Aug. 31, 2024

Debt Disclosure [Abstract]

Debt

DEBT

The following table summarizes the carrying value of the Company's debt, excluding film related obligations, as of the dates indicated:



	August 31, 2024		May 31, 2024		August 31, 2023
US Revolving Credit Agreement	$	225.0	$	—	$	—
Unsecured lines of credit		6.1		6.0		5.9
Total debt	$	231.1	$	6.0	$	5.9
Less lines of credit, short-term debt and current portion of long-term debt		(6.1)		(6.0)		(5.9)
Total long-term debt	$	225.0	$	—	$	—


2025	$	6.1
2026	—
2027	225.0
2028	—
2029	—
Thereafter	—
Total Debt	$	231.1

US Revolving Credit Agreement

- or -

Unsecured Lines of Credit

Film Related Obligations

As of August 31, 2024, outstanding borrowings under these facilities were $34.1 at a weighted average interest rate of 7.8%, of which $20.5 were classified as current obligations.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Aug. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Legal Matters Various claims and lawsuits arising in the normal course of business are pending against the Company. The Company accrues a liability for such matters when it is probable that a liability has occurred and the amount of such liability can be reasonably estimated. When only a range can be estimated, the most probable amount in the range is accrued unless no amount within the range is a better estimate than any other amount, in which case the minimum amount in the range is accrued. Legal costs associated with litigation are expensed in the period in which they are incurred. The Company does not expect, in the case of those various claims and lawsuits arising in the normal course of business where a loss is considered probable or reasonably possible, that the reasonably possible losses from such claims and lawsuits (either individually or in the aggregate) would have a material adverse effect on the Company’s consolidated financial position or results of operations. The Company expects to receive additional recoveries from its insurance programs related to an intellectual property legal settlement accrued during fiscal 2021, however, it is premature to determine with any level of probability or accuracy the amount of those recoveries at this time.

Earnings (Loss) Per Share

3 Months Ended

Aug. 31, 2024

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

EARNINGS (LOSS) PER SHARE

The following table summarizes the reconciliation of the numerators and denominators for the basic and diluted earnings (loss) per share computation for the periods indicated:


	Three months ended
	August 31,
	2024		2023
Net income (loss) attributable to Class A and Common Stockholders	$	(62.5)	$	(74.2)
Weighted average Shares of Class A Stock and Common Stock outstanding for basic earnings (loss) per share (in millions)		28.3		31.6
Dilutive effect of Common Stock potentially issuable pursuant to stock-based compensation plans (in millions)*		—		—
Adjusted weighted average Shares of Class A Stock and Common Stock outstanding for diluted earnings (loss) per share (in millions)		28.3		31.6
Earnings (loss) per share of Class A Stock and Common Stock:
Basic	$	(2.21)	$	(2.35)
Diluted	$	(2.21)	$	(2.35)
Anti-dilutive shares pursuant to stock-based compensation plans		1.7		0.7

* The Company experienced a net loss for all periods presented and therefore did not report any dilutive share impact

The following table sets forth options outstanding pursuant to stock-based compensation plans as of the dates indicated:


	August 31, 2024	August 31, 2023
Options outstanding pursuant to stock-based compensation plans (in millions)	2.9	3.0

Goodwill and Other Intangibles

3 Months Ended

Aug. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

GOODWILL AND OTHER INTANGIBLES

The following table summarizes the activity in Goodwill for the periods indicated:


	August 31, 2024		May 31, 2024		August 31, 2023
Gross beginning balance	$	172.4	$	172.3	$	172.3
Accumulated impairment		(39.6)		(39.6)		(39.6)
Beginning balance	$	132.8	$	132.7	$	132.7
Additions		70.1		—		—

Foreign currency translation		1.5		0.1		0.1



Ending balance	$	204.4	$	132.8	$	132.8

There were no impairment charges related to Goodwill in any of the periods presented.

The following table summarizes the activity in Other intangible assets for the periods indicated:


	August 31, 2024		May 31, 2024		August 31, 2023





Beginning balance - Other intangibles subject to amortization	$	8.2	$	7.8	$	7.8
Additions		85.3		6.0		—

Amortization expense		(2.4)		(2.6)		(0.5)
Foreign currency translation		1.5		0.1		0.0
Impairments		—		(3.1)		—
Total other intangibles subject to amortization, net of accumulated amortization of $41.5, $39.1 and $37.0, respectively	$	92.6	$	8.2	$	7.3


Total other intangibles not subject to amortization	$	2.1	$	2.1	$	2.1
Total other intangible assets, net	$	94.7	$	10.3	$	9.4

There were no impairment charges related to Other intangible assets in the three months ended August 31, 2024 and August 31, 2023.

Acquisitions

3 Months Ended

Aug. 31, 2024

Business Combination and Asset Acquisition [Abstract]

Acquisitions

ACQUISITIONS

9 Story Acquisition


Cash and cash equivalents	$	17.5
Accounts receivable		15.9
Investment in film and television programs		42.9
Property, plant and equipment (1)		6.0
Operating lease right-of-use assets		5.8
Other Intangible assets:
Existing content/IP		16.0
Customer contracts/relationships		51.5
Tradenames		16.5
Internally developed software		1.3
Other assets (2)		35.9
Total assets acquired		209.3
Accounts payable		2.3
Other accrued expenses		16.4
Deferred revenue		10.9
Film related obligations		34.9
Operating lease liabilities		7.8
Other liabilities		13.2
Total liabilities assumed		85.5
Preliminary fair value of net assets acquired		123.8
Goodwill		70.1
Preliminary purchase price consideration	$	193.9

(1) Includes a preliminary step-up adjustment of $1.8.

(2) Includes $31.9 of receivables related to government tax incentives.

combination and acquired workforce. The goodwill and intangible assets acquired were allocated to the Entertainment segment.


	Three months ended
	August 31,
	2024		2023
Revenues	$	242.9	$	248.3
Net income (loss)		(64.3)		(78.9)

Purchase of Noncontrolling Interest

Investments

3 Months Ended

Aug. 31, 2024

Equity Method And Cost Method Investments [Abstract]

Investment

INVESTMENTS

Investments are included in Other assets and deferred charges on the Condensed Consolidated Balance Sheets. The following table summarizes the Company’s investments as of the dates indicated:


	August 31, 2024		May 31, 2024		August 31, 2023		Segment
Equity method investments	$	32.5	$	31.5	$	32.3	International
Other equity investments		7.0		6.0		6.0	Entertainment
Total Investments	$	39.5	$	37.5	$	38.3

Employee Benefit Plans

3 Months Ended

Aug. 31, 2024

Retirement Benefits [Abstract]

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS


	UK Pension Plan				US Postretirement Benefits
	Three months ended				Three months ended
	August 31,				August 31,
	2024		2023		2024		2023
Components of net periodic benefit cost:

Interest cost	$	0.4	$	0.4	$	0.1	$	0.1
Expected return on assets		(0.3)		(0.3)		—		—
Amortization of prior service (credit) loss		0.0		0.0		(0.2)		(0.2)

Amortization of net actuarial (gain) loss		0.3		0.3		0.0		—
Total	$	0.4	$	0.4	$	(0.1)	$	(0.1)

Stock-Based Compensation

3 Months Ended

Aug. 31, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

The following table summarizes stock-based compensation expense included in Selling, general and administrative expenses for the periods indicated:


	Three months ended
	August 31,
	2024		2023
Stock option expense	$	0.6	$	0.6
Restricted stock unit expense		1.5		1.5
Management stock purchase plan		0.0		0.0
Employee stock purchase plan		0.1		0.2
Total stock-based compensation expense	$	2.2	$	2.3

The following table sets forth Common Stock issued pursuant to stock-based compensation plans for the periods indicated:


	Three months ended
	August 31,
	2024	2023
Common Stock issued pursuant to stock-based compensation plans (in millions)	0.1	0.1

Treasury Stock

3 Months Ended

Aug. 31, 2024

Equity, Attributable to Parent [Abstract]

Treasury Stock

TREASURY STOCK

The Board has authorized the Company to repurchase Common Stock, from time to time as conditions allow, on the open market or through privately negotiated transactions.

The table below represents the Board authorization at the dates indicated:


Authorization	Amount
December 2023		66.2
March 2024		54.6
Total current Board authorizations	$	120.8
Less repurchases made under these authorizations		(39.2)
Remaining Board authorization at August 31, 2024	$	81.6

Repurchases of the Company's Common Stock were $5.0 during the three months ended August 31, 2024. The Company's repurchase program may be suspended at any time without prior notice.

Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Aug. 31, 2024

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following tables summarize the activity in Accumulated other comprehensive income (loss), net of tax, by component, for the periods indicated:


	Three months ended August 31, 2024
	Foreign currency translation adjustments		Retirement benefit plans		Total
Beginning balance at June 1, 2024	$	(46.9)	$	(5.6)	$	(52.5)
Other comprehensive income (loss) before reclassifications		8.2		—		8.2
Less amount reclassified from Accumulated other comprehensive income (loss):
Amortization of net actuarial loss (net of tax of $0.0)		—		0.3		0.3
Amortization of prior service (credit) cost (net of tax of $0.1)		—		(0.1)		(0.1)


Other comprehensive income (loss)		8.2		0.2		8.4
Ending balance at August 31, 2024	$	(38.7)	$	(5.4)	$	(44.1)

	Three months ended August 31, 2023
	Foreign currency translation adjustments		Retirement benefit plans		Total
Beginning balance at June 1, 2023	$	(50.0)	$	(5.8)	$	(55.8)
Other comprehensive income (loss) before reclassifications		1.8		—		1.8
Less amount reclassified from Accumulated other comprehensive income (loss):
Amortization of net actuarial loss (net of tax of $0.0)		—		0.3		0.3

Amortization of prior service (credit) cost (net of tax of $0.1)		—		(0.1)		(0.1)

Other comprehensive income (loss)		1.8		0.2		2.0
Ending balance at August 31, 2023	$	(48.2)	$	(5.6)	$	(53.8)

The following table presents the impact on earnings of reclassifications out of Accumulated other comprehensive income (loss) for the periods indicated:


	Three months ended				Condensed Consolidated Statements of Operations line item
	August 31,		August 31,
	2024		2023
Employee benefit plans:
Amortization of net actuarial loss	$	0.3	$	0.3		Other components of net periodic benefit (cost)
Amortization of prior service (credit) loss		(0.2)		(0.2)		Other components of net periodic benefit (cost)
Less: Tax effect		0.1		0.1		Provision (benefit) for income taxes
Total cost, net of tax	$	0.2	$	0.2

Fair Value Measurements	3 Months Ended
Fair Value Measurements	Aug. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS The Company determines the appropriate level in the fair value hierarchy for each fair value measurement of assets and liabilities carried at fair value on a recurring basis in the Company’s financial statements. The fair value hierarchy prioritizes the inputs, which refer to assumptions that market participants would use in pricing an asset or liability, based upon the highest and best use, into three levels as follows: •Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. •Level 2 Observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability and inputs derived principally from or corroborated by observable market data. •Level 3 Unobservable inputs in which there is little or no market data available, which are significant to the fair value measurement and require the Company to develop its own assumptions. The Company’s financial assets and liabilities measured at fair value consisted of cash and cash equivalents, debt and foreign currency forward contracts. Cash and cash equivalents are comprised of bank deposits and short-term investments, such as money market funds, the fair value of which is based on quoted market prices, a Level 1 fair value measure. The Company employs Level 2 fair value measurements for the disclosure of the fair value of its various lines of credit and long term debt. The fair value of the Company's debt, including film related obligations, approximates the carrying value for all periods presented. The fair values of foreign currency forward contracts, used by the Company to manage the impact of foreign exchange rate changes, are based on quotations from financial institutions, a Level 2 fair value measure. Non-financial assets for which the Company employs fair value measures on a non-recurring basis include: •Long-lived assets, including held for sale •Operating lease right-of-use (ROU) assets •Investments •Assets and liabilities acquired in a business combination •Impairment assessment of goodwill and other intangible assets Level 2 and Level 3 inputs are employed by the Company in the fair value measurement of these assets. For the fair value measurements employed by the Company for certain property, plant and equipment, investments, prepublication assets and investment in film and television programs, the Company assessed future expected cash flows attributable to these assets. See Note 9, "Investments", for a more detailed description of the fair value measurements employed. See Note 7, "Acquisitions", for a more detailed description of the assets acquired and fair value measurements employed related to the 9 Story acquisition.

Income Taxes and Other Taxes	3 Months Ended
Income Taxes and Other Taxes	Aug. 31, 2024
Income Tax And Non Income Tax Disclosure [Abstract]
Income Taxes and Other Taxes	INCOME TAXES AND OTHER TAXES Income Taxes In calculating the provision for income taxes on an interim basis, the Company uses an estimate of the annual effective tax rate based upon currently known facts and circumstances and applies that rate to its year-to-date earnings or losses. The Company’s effective tax rate is based on expected income and statutory tax rates and takes into consideration permanent differences between financial statement and tax return income applicable to the Company in the various jurisdictions in which the Company operates. The effect of discrete items, such as changes in estimates, changes in rates or tax status, and unusual or infrequently occurring events, is recognized in the interim period in which the discrete item occurs. The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained or as the result of new judicial interpretations or regulatory or tax law changes. The Company's interim effective tax rate, inclusive of discrete items, for the three month period ended August 31, 2024 was 31.9%, compared to 24.3%, for the prior fiscal year period. The interim effective tax rate for the three months ended August 31, 2024 varies from the statutory rate primarily due to expected state and local income tax and non-deductible compensation for covered executive employees. The Company, including its domestic subsidiaries, files a consolidated U.S. income tax return, and also files tax returns in various states and other local jurisdictions. Also, certain subsidiaries of the Company file income tax returns in foreign jurisdictions. The Company is routinely audited by various tax authorities. The fiscal 2021 through 2024 tax years remain subject to audit. The Organization for Economic Cooperation and Development (“OECD”) has implemented the global minimum tax rate of at least 15% for large multinational companies as of 2024 (“Pillar Two”). Under Pillar Two, a top-up tax will be required for any jurisdiction who has enacted Pillar Two and whose effective tax rate falls below the 15% global minimum rate. Additionally, the OECD issued administrative guidance providing transition and safe harbor rules around the implementation of the Pillar Two global minimum tax. Under the safe harbor, companies would be excluded from Pillar Two requirements provided certain criteria are met. The enactment of Pillar Two legislation does not have a material effect on the Company’s financial position. The Company will continue to monitor and reflect the impact of such legislative changes in future periods, as appropriate. Non-income Taxes The Company is subject to tax examinations for sales-based taxes. A number of these examinations are ongoing and, in certain cases, have resulted in assessments from taxing authorities. The Company assesses sales tax contingencies for each jurisdiction in which it operates, considering all relevant facts including statutes, regulations, case law and experience. Where a sales tax liability with respect to a jurisdiction is probable and can be reliably estimated for such jurisdiction, the Company has made accruals for these matters which are reflected in the Company’s Condensed Consolidated Financial Statements. These amounts are included in Selling, general and administrative expenses. Future developments relating to the foregoing could result in adjustments being made to these accruals.

Derivatives and Hedging	3 Months Ended
Derivatives and Hedging	Aug. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives and Hedging	DERIVATIVES AND HEDGING The Company enters into foreign currency derivative contracts to economically hedge the exposure to foreign currency fluctuations associated with the forecasted purchase of inventory, the foreign exchange risk associated with certain receivables denominated in foreign currencies and certain future commitments for foreign expenditures. These derivative contracts are economic hedges and are not designated as cash flow hedges. The Company marks-to-market these instruments and records the changes in the fair value of these items in Selling, general and administrative expenses and recognizes the unrealized gain or loss in Other current assets or Other current liabilities. The notional values of the contracts were $22.8 as of August 31, 2024 and August 31, 2023. A net unrealized loss of $0.3 and a net unrealized gain of $0.4 was recognized for the three months ended August 31, 2024 and August 31, 2023, respectively.

Other Accrued Expenses

3 Months Ended

Aug. 31, 2024

Other Accrued Expenses Disclosure [Abstract]

Other Accrued Expenses

OTHER ACCRUED EXPENSES

Other accrued expenses consisted of the following as of the dates indicated:


	August 31, 2024		May 31, 2024		August 31, 2023
Accrued payroll, payroll taxes and benefits	$	30.5	$	32.9	$	34.5
Accrued bonus and commissions		13.0		21.6		13.0
Returns liability		30.7		33.1		33.1
Accrued other taxes		13.6		23.0		16.0
Accrued advertising and promotions		7.3		5.7		8.5
Other accrued expenses		44.0		40.0		40.8
Total accrued expenses	$	139.1	$	156.3	$	145.9

Subsequent Events	3 Months Ended
Subsequent Events	Aug. 31, 2024
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS On September 18, 2024, the Board declared a quarterly cash dividend of $0.20 per share on the Company’s Class A and Common Stock for the second quarter of fiscal 2025. The dividend is payable on December 16, 2024 to shareholders of record as of the close of business on October 31, 2024.

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Millions	Aug. 31, 2024	Aug. 31, 2023
Pay vs Performance Disclosure
Net Income (loss)	$ (62.5)	$ (74.2)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Aug. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation (Policies)	3 Months Ended
Basis of Presentation (Policies)	Aug. 31, 2024
Accounting Policies [Abstract]
Principles of consolidation	Principles of consolidation The accompanying condensed consolidated interim financial statements (referred to as the “Financial Statements” herein) include the accounts of Scholastic Corporation (the “Corporation”) and all wholly-owned and majority-owned subsidiaries (collectively, “Scholastic” or the “Company”). The Company reviews its relationships with other entities to identify whether it is the primary beneficiary of a variable interest entity (“VIE”). If the determination is made that the Company is the primary beneficiary, then the entity is consolidated. Intercompany transactions are eliminated in consolidation. The Company’s fiscal year is not a calendar year. Accordingly, references in this document to fiscal 2025 relate to the twelve-month period ending May 31, 2025.
Noncontrolling Interest	Noncontrolling Interest On June 1, 2023, the Company acquired the remaining shares of Make Believe Ideas Limited ("MBI"), a UK-based children's book publishing company, which represented a 5.0% noncontrolling interest, increasing the Company's total ownership from 95.0% to 100%. Prior to June 1, 2023, the founder and chief executive officer of MBI retained a 5.0% noncontrolling ownership interest in MBI. The Company fully consolidated MBI as of the acquisition date and the 5.0% noncontrolling interest was classified within stockholder's equity.
Interim Financial Statements	Interim Financial Statements The accompanying Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”) for interim financial information, and should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2024. The Financial Statements presented in this Quarterly Report on Form 10-Q are unaudited; however, in the opinion of management, the Financial Statements reflect all adjustments, consisting solely of normal, recurring adjustments, necessary for the fair presentation of the Financial Statements for the periods presented.
Seasonality	Seasonality The Company’s Children’s Book Publishing and Distribution school-based book club and book fair channels and most of its Education Solutions businesses operate on a school-year basis; therefore, the Company’s business is highly seasonal. As a result, the Company’s revenues in the first and third quarters of the fiscal year generally are lower than its revenues in the other two fiscal quarters. Typically, school-based channels and magazine revenues are minimal in the first quarter of the fiscal year as schools are not in session. Education channel revenues are generally higher in the fourth quarter. Trade channel and Entertainment segment revenues can vary throughout the year due to the timing of published titles' release dates and program production deliveries and distribution license period start dates.
Use of estimates	Use of estimates The preparation of these Financial Statements involves the use of estimates and assumptions by management, which affects the amounts reported in the Financial Statements and accompanying notes. The Company bases its estimates on historical experience, current business factors, and various other assumptions believed to be reasonable under the circumstances, all of which are necessary, in order to form a basis for determining the carrying values of certain assets and liabilities. Actual results may differ from those estimates and assumptions. On an on-going basis, the Company evaluates the adequacy of its reserves and the estimates used in these calculations, including, but not limited to: •Accounts receivable allowance for credit losses •Pension and postretirement benefit plans •Uncertain tax positions •The timing and amount of future income taxes and related deductions •Inventory reserves •Cost of goods sold from book fair operations during interim periods based on estimated gross profit rates •Sales tax contingencies •Royalty advance reserves and royalty expense accruals •Expected economic useful life of film and television program assets •Impairment testing for goodwill, other intangible and other long-lived assets and investments •Assets and liabilities acquired in business combinations •Variable consideration related to anticipated returns •Allocation of transaction price to contractual performance obligations
Revenue recognition	Revenue recognition The Company’s revenue recognition policies for its entertainment business include the following: Film and TV production - Revenue is deferred during production and recognized when the film or episodes have been delivered and are available for showing or exploitation. Production services - Revenue is recognized using the percentage-of-completion method based on the proportion of costs incurred in the current period to total expected costs. Licensing - Revenue from the sale or granting of broadcast license rights to third parties is recognized when the licensed content is available to the customer and the customer has the contractual right to broadcast or stream the content. Royalty income - Revenue from sales and usage-based royalties related to licenses is generally recognized when the subsequent sale or usage occurs.
Investment in film and television programs	Investment in film and television programs Investments in film and television programs are stated at the lower of cost or net realizable value. Investment in film and television programs includes all direct production and financing costs incurred during production and minimum guarantee payments made to acquire distribution rights. Interest costs are capitalized to the cost of the film or television program until substantially all of the activities required for delivery are complete. Investments in film and television programs are amortized using the declining-balance method with rates ranging from 50% to 90% at the time of initial episodic delivery and at rates ranging from 10% to 25% annually thereafter. The determination of the rates is based on the expected economic useful life of the film or television program and includes factors such as rights retained by the Company, the availability of rights to renew licenses for episodic television programs in various territories, and the availability of secondary market revenue. The Company regularly reviews the recoverability of these capitalized costs based on expected future cash flows.
Government financing and assistance	Government financing and assistance The Company has access to government programs and tax credits that are designed to assist film, television and digital media production and distribution. Amounts received and amounts receivable which relate to the Company's film and television program assets are recorded as a reduction in the production costs of the related asset.
New Accounting Pronouncements	New Accounting Pronouncements There were no new accounting pronouncements issued in the first quarter of fiscal 2025 which would impact the Company. Refer to the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2024 for more information on current applicable authoritative guidance and its impact on the Company's financial statements. In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, “Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures.” This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This ASU is effective for the Company's fiscal year 2025, and interim periods starting in fiscal year 2026. Early adoption is permitted. The amendments in this ASU are to be applied retrospectively to all prior periods presented in the financial statements. The Company is currently assessing the impact of the disclosure requirements on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740)." The amendments in this update enhance the transparency and decision usefulness of income tax disclosures to provide information to better assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The amendments in this ASU require more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This ASU will be effective for the Company's fiscal year 2026. Early adoption is permitted. The amendments are to be applied prospectively, but may be applied retrospectively to all prior periods presented in the financial statements. The Company is currently assessing the impact of the disclosure requirements on its consolidated financial statements.

Revenues (Tables)

3 Months Ended

Aug. 31, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

The following table presents the Company’s segment revenues disaggregated by region and domestic channel:


	Three months ended
	August 31,
	2024		2023
Book Clubs - U.S.	$	2.7	$	2.6
Book Fairs - U.S.		28.8		27.3
Trade - U.S. (1)		58.2		62.1
Trade - International (2)		15.7		10.4
Total Children's Book Publishing and Distribution	$	105.4	$	102.4

Education Solutions - U.S.	$	55.7	$	66.0
Total Education Solutions	$	55.7	$	66.0

Entertainment - U.S.	$	1.6	$	0.4
Entertainment - International (3)		15.0		—
Total Entertainment (1)	$	16.6	$	0.4

International - Major Markets (4)	$	48.1	$	47.8
International - Other Markets (5)		8.7		9.4
Total International	$	56.8	$	57.2

Overhead (6)	$	2.7	$	2.5
Total Overhead	$	2.7	$	2.5

Total	$	237.2	$	228.5

(2) Primarily includes foreign rights and certain product sales in the UK.

(3) Primarily includes production, distribution and licensing revenues in Canada, Ireland and Indonesia.

(4) Includes Canada, UK, Australia and New Zealand.

(5) Primarily includes markets in Asia.

(6) Overhead includes rental income related to leased space in the Company's headquarters.

Deferred Revenue, by Arrangement, Disclosure

The following table presents further detail regarding the Company's contract liabilities as of the dates indicated:


	August 31, 2024		May 31, 2024		August 31, 2023
Book fairs incentive credits	$	99.4	$	114.2	$	96.1
Magazines+ subscriptions		22.2		4.6		24.2
U.S. digital subscriptions		19.2		15.6		26.8
U.S. education-related (1)		10.3		10.1		12.1
Media-related		6.8		0.0		0.0
Stored value cards		17.3		16.7		13.1
Other (2)		5.0		6.4		9.4
Total contract liabilities	$	180.2	$	167.6	$	181.7

(1) Primarily includes contract liabilities related to contracts with school districts and professional services.

(2) Primarily includes contract liabilities related to various international products and services.

Accounts Receivable, Allowance for Credit Loss

The following table presents the change in the allowance for credit losses, which is included in Accounts Receivable, net on the Condensed Consolidated Balance Sheets:


	Allowance for Credit Losses
Balance as of June 1, 2024	$	14.9
Provision (benefit)		0.9
Write-offs and other		(0.4)
Balance as of August 31, 2024	$	15.4

Segment Information (Tables)

3 Months Ended

Aug. 31, 2024

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following table sets forth the Company's revenue and operating income (loss) by segment for the periods indicated:


	Three months ended
	August 31,
	2024		2023
Revenues
Children's Book Publishing and Distribution (1)	$	105.4	$	102.4
Education Solutions		55.7		66.0
Entertainment (1)		16.6		0.4
International		56.8		57.2
Overhead (2)		2.7		2.5
Total	$	237.2	$	228.5

Operating income (loss)
Children's Book Publishing and Distribution (1)	$	(36.6)	$	(41.0)
Education Solutions		(17.0)		(18.7)
Entertainment (1)		(0.5)		(0.5)
International		(8.3)		(8.2)
Overhead (2)		(26.1)		(30.7)
Total	$	(88.5)	$	(99.1)

Debt (Tables)

3 Months Ended

Aug. 31, 2024

Debt Disclosure [Abstract]

Schedule of Debt

The following table summarizes the carrying value of the Company's debt, excluding film related obligations, as of the dates indicated:



	August 31, 2024		May 31, 2024		August 31, 2023
US Revolving Credit Agreement	$	225.0	$	—	$	—
Unsecured lines of credit		6.1		6.0		5.9
Total debt	$	231.1	$	6.0	$	5.9
Less lines of credit, short-term debt and current portion of long-term debt		(6.1)		(6.0)		(5.9)
Total long-term debt	$	225.0	$	—	$	—

Schedule of Maturities of Long-term Debt


2025	$	6.1
2026	—
2027	225.0
2028	—
2029	—
Thereafter	—
Total Debt	$	231.1

Earnings (Loss) Per Share (Tables)

3 Months Ended

Aug. 31, 2024

Earnings Per Share [Abstract]

Schedule of basic and diluted earnings per share

The following table summarizes the reconciliation of the numerators and denominators for the basic and diluted earnings (loss) per share computation for the periods indicated:


	Three months ended
	August 31,
	2024		2023
Net income (loss) attributable to Class A and Common Stockholders	$	(62.5)	$	(74.2)
Weighted average Shares of Class A Stock and Common Stock outstanding for basic earnings (loss) per share (in millions)		28.3		31.6
Dilutive effect of Common Stock potentially issuable pursuant to stock-based compensation plans (in millions)*		—		—
Adjusted weighted average Shares of Class A Stock and Common Stock outstanding for diluted earnings (loss) per share (in millions)		28.3		31.6
Earnings (loss) per share of Class A Stock and Common Stock:
Basic	$	(2.21)	$	(2.35)
Diluted	$	(2.21)	$	(2.35)
Anti-dilutive shares pursuant to stock-based compensation plans		1.7		0.7

Schedule of stock option activity

The following table sets forth options outstanding pursuant to stock-based compensation plans as of the dates indicated:


	August 31, 2024	August 31, 2023
Options outstanding pursuant to stock-based compensation plans (in millions)	2.9	3.0

Goodwill and Other Intangibles (Tables)

3 Months Ended

Aug. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Activity in Goodwill for the Periods Indicated

The following table summarizes the activity in Goodwill for the periods indicated:


	August 31, 2024		May 31, 2024		August 31, 2023
Gross beginning balance	$	172.4	$	172.3	$	172.3
Accumulated impairment		(39.6)		(39.6)		(39.6)
Beginning balance	$	132.8	$	132.7	$	132.7
Additions		70.1		—		—

Foreign currency translation		1.5		0.1		0.1



Ending balance	$	204.4	$	132.8	$	132.8

Summary of Activity in Total Other Intangibles for the Periods Indicated

The following table summarizes the activity in Other intangible assets for the periods indicated:


	August 31, 2024		May 31, 2024		August 31, 2023





Beginning balance - Other intangibles subject to amortization	$	8.2	$	7.8	$	7.8
Additions		85.3		6.0		—

Amortization expense		(2.4)		(2.6)		(0.5)
Foreign currency translation		1.5		0.1		0.0
Impairments		—		(3.1)		—
Total other intangibles subject to amortization, net of accumulated amortization of $41.5, $39.1 and $37.0, respectively	$	92.6	$	8.2	$	7.3


Total other intangibles not subject to amortization	$	2.1	$	2.1	$	2.1
Total other intangible assets, net	$	94.7	$	10.3	$	9.4

Business Combinations and Asset Acquisitions (Tables)

3 Months Ended

Aug. 31, 2024

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary purchase price allocation of fair values of the assets acquired and liabilities assumed at the date of acquisition:


Cash and cash equivalents	$	17.5
Accounts receivable		15.9
Investment in film and television programs		42.9
Property, plant and equipment (1)		6.0
Operating lease right-of-use assets		5.8
Other Intangible assets:
Existing content/IP		16.0
Customer contracts/relationships		51.5
Tradenames		16.5
Internally developed software		1.3
Other assets (2)		35.9
Total assets acquired		209.3
Accounts payable		2.3
Other accrued expenses		16.4
Deferred revenue		10.9
Film related obligations		34.9
Operating lease liabilities		7.8
Other liabilities		13.2
Total liabilities assumed		85.5
Preliminary fair value of net assets acquired		123.8
Goodwill		70.1
Preliminary purchase price consideration	$	193.9

(1) Includes a preliminary step-up adjustment of $1.8.

(2) Includes $31.9 of receivables related to government tax incentives.

Business Acquisition, Pro Forma Information


	Three months ended
	August 31,
	2024		2023
Revenues	$	242.9	$	248.3
Net income (loss)		(64.3)		(78.9)

Investments (Tables)

3 Months Ended

Aug. 31, 2024

Equity Method And Cost Method Investments [Abstract]

Investments

The following table summarizes the Company’s investments as of the dates indicated:


	August 31, 2024		May 31, 2024		August 31, 2023		Segment
Equity method investments	$	32.5	$	31.5	$	32.3	International
Other equity investments		7.0		6.0		6.0	Entertainment
Total Investments	$	39.5	$	37.5	$	38.3

Employee Benefit Plans (Tables)

3 Months Ended

Aug. 31, 2024

Retirement Benefits [Abstract]

Schedule of Net Benefit Costs


	UK Pension Plan				US Postretirement Benefits
	Three months ended				Three months ended
	August 31,				August 31,
	2024		2023		2024		2023
Components of net periodic benefit cost:

Interest cost	$	0.4	$	0.4	$	0.1	$	0.1
Expected return on assets		(0.3)		(0.3)		—		—
Amortization of prior service (credit) loss		0.0		0.0		(0.2)		(0.2)

Amortization of net actuarial (gain) loss		0.3		0.3		0.0		—
Total	$	0.4	$	0.4	$	(0.1)	$	(0.1)

Stock-Based Compensation (Tables)

3 Months Ended

Aug. 31, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan

The following table summarizes stock-based compensation expense included in Selling, general and administrative expenses for the periods indicated:


	Three months ended
	August 31,
	2024		2023
Stock option expense	$	0.6	$	0.6
Restricted stock unit expense		1.5		1.5
Management stock purchase plan		0.0		0.0
Employee stock purchase plan		0.1		0.2
Total stock-based compensation expense	$	2.2	$	2.3

Schedule of Shares Issued Pursuant to Share-based Compensation Activity

The following table sets forth Common Stock issued pursuant to stock-based compensation plans for the periods indicated:


	Three months ended
	August 31,
	2024	2023
Common Stock issued pursuant to stock-based compensation plans (in millions)	0.1	0.1

Treasury Stock (Tables)

3 Months Ended

Aug. 31, 2024

Equity, Attributable to Parent [Abstract]

Tabular Disclosure of an Entity's Treasury Stock

The table below represents the Board authorization at the dates indicated:


Authorization	Amount
December 2023		66.2
March 2024		54.6
Total current Board authorizations	$	120.8
Less repurchases made under these authorizations		(39.2)
Remaining Board authorization at August 31, 2024	$	81.6

Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Aug. 31, 2024

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following tables summarize the activity in Accumulated other comprehensive income (loss), net of tax, by component, for the periods indicated:


	Three months ended August 31, 2024
	Foreign currency translation adjustments		Retirement benefit plans		Total
Beginning balance at June 1, 2024	$	(46.9)	$	(5.6)	$	(52.5)
Other comprehensive income (loss) before reclassifications		8.2		—		8.2
Less amount reclassified from Accumulated other comprehensive income (loss):
Amortization of net actuarial loss (net of tax of $0.0)		—		0.3		0.3
Amortization of prior service (credit) cost (net of tax of $0.1)		—		(0.1)		(0.1)


Other comprehensive income (loss)		8.2		0.2		8.4
Ending balance at August 31, 2024	$	(38.7)	$	(5.4)	$	(44.1)

	Three months ended August 31, 2023
	Foreign currency translation adjustments		Retirement benefit plans		Total
Beginning balance at June 1, 2023	$	(50.0)	$	(5.8)	$	(55.8)
Other comprehensive income (loss) before reclassifications		1.8		—		1.8
Less amount reclassified from Accumulated other comprehensive income (loss):
Amortization of net actuarial loss (net of tax of $0.0)		—		0.3		0.3

Amortization of prior service (credit) cost (net of tax of $0.1)		—		(0.1)		(0.1)

Other comprehensive income (loss)		1.8		0.2		2.0
Ending balance at August 31, 2023	$	(48.2)	$	(5.6)	$	(53.8)

Reclassification out of Accumulated Other Comprehensive Income

The following table presents the impact on earnings of reclassifications out of Accumulated other comprehensive income (loss) for the periods indicated:


	Three months ended				Condensed Consolidated Statements of Operations line item
	August 31,		August 31,
	2024		2023
Employee benefit plans:
Amortization of net actuarial loss	$	0.3	$	0.3		Other components of net periodic benefit (cost)
Amortization of prior service (credit) loss		(0.2)		(0.2)		Other components of net periodic benefit (cost)
Less: Tax effect		0.1		0.1		Provision (benefit) for income taxes
Total cost, net of tax	$	0.2	$	0.2

Other Accrued Expenses (Tables)

3 Months Ended

Aug. 31, 2024

Other Accrued Expenses Disclosure [Abstract]

Schedule of Other Accrued Expenses

Other accrued expenses consisted of the following as of the dates indicated:


	August 31, 2024		May 31, 2024		August 31, 2023
Accrued payroll, payroll taxes and benefits	$	30.5	$	32.9	$	34.5
Accrued bonus and commissions		13.0		21.6		13.0
Returns liability		30.7		33.1		33.1
Accrued other taxes		13.6		23.0		16.0
Accrued advertising and promotions		7.3		5.7		8.5
Other accrued expenses		44.0		40.0		40.8
Total accrued expenses	$	139.1	$	156.3	$	145.9

Basis of Presentation - Narrative (Details) - Make Believe Ideas Limited (MBI)	Jun. 01, 2023	May 31, 2023
Scholastic, Inc.
Long Lived Assets Held-for-sale [Line Items]
Ownership percentage	100.00%	95.00%
Founder and CEO of MBI
Long Lived Assets Held-for-sale [Line Items]
Ownership percentage by founder and CEO of MBI		5.00%

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Disaggregation of Revenue [Line Items]
Revenues	$ 237.2	$ 228.5
Corporate, Non-Segment
Disaggregation of Revenue [Line Items]
Revenues	2.7	2.5
Total Children's Book Publishing and Distribution \| Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	105.4	102.4
Total Children's Book Publishing and Distribution \| Operating Segments \| Book Clubs - U.S.
Disaggregation of Revenue [Line Items]
Revenues	2.7	2.6
Total Children's Book Publishing and Distribution \| Operating Segments \| Book Fairs - U.S.
Disaggregation of Revenue [Line Items]
Revenues	28.8	27.3
Total Children's Book Publishing and Distribution \| Operating Segments \| Trade - U.S. (1)
Disaggregation of Revenue [Line Items]
Revenues	58.2	62.1
Total Children's Book Publishing and Distribution \| Operating Segments \| Trade - International
Disaggregation of Revenue [Line Items]
Revenues	15.7	10.4
Total Education Solutions \| Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	55.7	66.0
Total Entertainment \| Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	16.6	0.4
Total Entertainment \| Operating Segments \| Entertainment - U.S.
Disaggregation of Revenue [Line Items]
Revenues	1.6	0.4
Total Entertainment \| Operating Segments \| Entertainment - International
Disaggregation of Revenue [Line Items]
Revenues	15.0	0.0
Total International \| Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	56.8	57.2
Total International \| Operating Segments \| Major Markets
Disaggregation of Revenue [Line Items]
Revenues	48.1	47.8
Total International \| Operating Segments \| Other Markets
Disaggregation of Revenue [Line Items]
Revenues	$ 8.7	$ 9.4

Revenues - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
Revenues - Narrative (Details) - USD ($) $ in Millions	Aug. 31, 2024	Aug. 31, 2023	May 31, 2024
Revenue from Contract with Customer [Abstract]
Returns liability	$ 30.7	$ 33.1	$ 33.1
Return asset	3.9	5.4	4.2
Contract with customer, liability, current	173.9	171.1	161.1
Contract with customer, liability, noncurrent	6.3	10.6	$ 6.5
Contract with customer, liability, revenue recognized	$ 29.2	$ 32.3

Revenues - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023	May 31, 2024
Deferred Revenue Arrangement [Line Items]
Deferred revenue	$ 180,200	$ 181,700	$ 167,600
Contract with customer, liability, revenue recognized	29,200	32,300
Book fairs incentive credits
Deferred Revenue Arrangement [Line Items]
Deferred revenue	99,400	96,100	114,200
Magazines+ subscriptions
Deferred Revenue Arrangement [Line Items]
Deferred revenue	22,200	24,200	4,600
U.S. digital subscriptions
Deferred Revenue Arrangement [Line Items]
Deferred revenue	19,200	26,800	15,600
U.S. Education-related
Deferred Revenue Arrangement [Line Items]
Deferred revenue	10,300	12,100	10,100
Media-related
Deferred Revenue Arrangement [Line Items]
Deferred revenue	6,800	0	0
Stored value cards
Deferred Revenue Arrangement [Line Items]
Deferred revenue	17,300	13,100	16,700
Other
Deferred Revenue Arrangement [Line Items]
Deferred revenue	$ 5,000	$ 9,400	$ 6,400

Revenues - Allowance for Credit Losses (Details) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance as of June 1, 2024	$ 14.9
Provision for losses on accounts receivable	0.9	$ 0.6
Write-offs and other	(0.4)
Balance as of August 31, 2024	$ 15.4

Segment Information - Schedule of segment reporting information (Details)	3 Months Ended
	Aug. 31, 2024 USD ($) segment	Aug. 31, 2023 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment	4
Revenues	$ 237,200,000	$ 228,500,000
Segment operating income (loss)	$ (88,500,000)	(99,100,000)
Total Children's Book Publishing and Distribution
Segment Reporting Information [Line Items]
Number of operating segments \| segment	2
Total Education Solutions
Segment Reporting Information [Line Items]
Number of operating segments \| segment	1
Total Entertainment
Segment Reporting Information [Line Items]
Number of operating segments \| segment	1
Total International
Segment Reporting Information [Line Items]
Number of operating segments \| segment	3
Operating Segments \| Total Children's Book Publishing and Distribution
Segment Reporting Information [Line Items]
Revenues	$ 105,400,000	102,400,000
Segment operating income (loss)	(36,600,000)	(41,000,000.0)
Operating Segments \| Total Education Solutions
Segment Reporting Information [Line Items]
Revenues	55,700,000	66,000,000.0
Segment operating income (loss)	(17,000,000.0)	(18,700,000)
Operating Segments \| Total Entertainment
Segment Reporting Information [Line Items]
Revenues	16,600,000	400,000
Segment operating income (loss)	(500,000)	(500,000)
Operating Segments \| Total International
Segment Reporting Information [Line Items]
Revenues	56,800,000	57,200,000
Segment operating income (loss)	(8,300,000)	(8,200,000)
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Revenues	2,700,000	2,500,000
Segment operating income (loss)	$ (26,100,000)	$ (30,700,000)

Debt - Schedule of Debt (Details) - USD ($) $ in Millions	Aug. 31, 2024	May 31, 2024	Aug. 31, 2023
Debt Instrument [Line Items]
Total Debt	$ 231.1	$ 6.0	$ 5.9
Less lines of credit, short-term debt and current portion of long-term debt	(6.1)	(6.0)	(5.9)
Total long-term debt	225.0	0.0	0.0
Revolving Credit Facility
Debt Instrument [Line Items]
Total Debt	225.0	0.0	0.0
Line of Credit \| Unsecured Debt
Debt Instrument [Line Items]
Total Debt	$ 6.1	$ 6.0	$ 5.9

Debt - Narrative (Details)			3 Months Ended	60 Months Ended
Debt - Narrative (Details)	Feb. 28, 2023	Oct. 27, 2021 USD ($)	Aug. 31, 2024 USD ($)	Oct. 27, 2026	May 31, 2024 USD ($)	Aug. 31, 2023 USD ($)
Debt (Details) [Line Items]
Long-term Debt			$ 231,100,000
Debt			231,100,000		$ 6,000,000.0	$ 5,900,000
Standby letters of credit			4,000,000.0
Domestic Line of Credit
Debt (Details) [Line Items]
Standby letters of credit			3,600,000
Revolving Credit Facility
Debt (Details) [Line Items]
Long-term Debt						0
Debt			225,000,000.0		0	0
Standby letters of credit			$ 400,000
Weighted average interest rate (percentage)			6.80%
Loan Agreement
Debt (Details) [Line Items]
Maximum borrowing capacity		$ 300,000,000.0
Consolidated net leverage ratio, maximum		2.75
Debt Instrument, Term				5 years
Loan Agreement \| Swingline Facility
Debt (Details) [Line Items]
Maximum borrowing capacity		$ 15,000,000.0
Loan Agreement \| Revolving Credit Facility
Debt (Details) [Line Items]
Maximum borrowing capacity		50,000,000.0
Commitment fee percentage			0.20%
Increase in borrowing capacity available under accordion feature		$ 150,000,000.0
Loan Agreement \| Revolving Credit Facility \| Minimum
Debt (Details) [Line Items]
Commitment fee percentage		0.20%
Loan Agreement \| Revolving Credit Facility \| Maximum
Debt (Details) [Line Items]
Commitment fee percentage		0.30%
Loan Agreement \| Base Rate \| Minimum
Debt (Details) [Line Items]
Variable rate (percentage)		0.35%
Loan Agreement \| Base Rate \| Maximum
Debt (Details) [Line Items]
Variable rate (percentage)		0.75%
Loan Agreement \| Base Rate \| Revolving Credit Facility
Debt (Details) [Line Items]
Variable rate (percentage)			0.35%
Loan Agreement \| Federal Funds Rate
Debt (Details) [Line Items]
Variable rate (percentage)		0.50%
Loan Agreement \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt (Details) [Line Items]
Variable rate (percentage)	0.10%
Loan Agreement \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Minimum
Debt (Details) [Line Items]
Variable rate (percentage)	1.35%
Loan Agreement \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Maximum
Debt (Details) [Line Items]
Variable rate (percentage)	1.75%
Loan Agreement \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Revolving Credit Facility
Debt (Details) [Line Items]
Variable rate (percentage)			1.35%
Loan Agreement \| Term SOFR
Debt (Details) [Line Items]
Variable rate (percentage)		1.00%
Interim Production Financing
Debt (Details) [Line Items]
Film Related Obligations, Long-Term and Short-Term, Combines Amount			$ 34,100,000
Interim Production Financing \| Base Rate
Debt (Details) [Line Items]
Variable rate (percentage)			0.75%
Interim Production Financing \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Minimum
Debt (Details) [Line Items]
Variable rate (percentage)			3.00%
Interim Production Financing \| Prime Rate
Debt (Details) [Line Items]
Variable rate (percentage)			0.75%
Interim Production Financing \| Euro LIBOR
Debt (Details) [Line Items]
Variable rate (percentage)			2.00%
Unsecured Debt \| Domestic Line of Credit
Debt (Details) [Line Items]
Borrowing capacity			$ 10,000,000.0
Short-term debt			$ 0		0	0
Expiration period (in days)			365 days
Remaining borrowing capacity			$ 6,400,000
Unsecured Debt \| Line of Credit
Debt (Details) [Line Items]
Borrowing capacity			14,000,000.0
Debt			$ 6,100,000		$ 6,000,000.0	$ 5,900,000
Expiration period (in days)			364 days
Weighted average interest rate (percentage)			4.30%		4.50%	4.40%
Remaining borrowing capacity			$ 7,900,000
Secured Debt \| Line of Credit
Debt (Details) [Line Items]
Debt, Weighted Average Interest Rate			7.80%

Debt - Schedule of Maturities of Long-term Debt (Details) $ in Millions	Aug. 31, 2024 USD ($)
Debt Disclosure [Abstract]
2026	$ 6.1
2027	0.0
2028	225.0
2029	0.0
Long-Term Debt, Maturity, Year Five	0.0
Thereafter	0.0
Total Debt	$ 231.1

Earnings (Loss) Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Earnings Per Share, Basic and Diluted [Abstract]
Net income (loss) attributable to Class A and Common Shares	$ (62.5)	$ (74.2)
Weighted average Shares of Class A Stock and Common Stock outstanding for basic earnings (loss) per share	28.3	31.6
Weighted Average Number Diluted Shares Outstanding Adjustment	0.0	0.0
Weighted Average Number of Shares Outstanding, Diluted	28.3	31.6
Earnings (loss) per share of Class A Stock and Common Stock:
Basic (in Dollars per share)	$ (2.21)	$ (2.35)
Diluted (in Dollars per share)	$ (2.21)	$ (2.35)
Antidilutive shares excluded from calculation of earnings per share	1.7	0.7

Earnings (Loss) Per Share - Schedule of Options Outstanding (Details) - shares shares in Millions	Aug. 31, 2024	Aug. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options outstanding pursuant to stock-based compensation plans (in millions)	2.9	3.0

Earnings (Loss) Per Share - Narrative (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Earnings Per Share [Abstract]
Antidilutive shares excluded from calculation of earnings per share	1.7	0.7
Remaining authorized stock repurchase amount	$ 81.6

Goodwill and Other Intangibles - Schedule of activity in goodwill (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Aug. 31, 2024	Aug. 31, 2023	May 31, 2024	May 31, 2023
Goodwill [Roll Forward]
Gross goodwill			$ 172.4	$ 172.3
Goodwill, Impaired, Accumulated Impairment Loss			(39.6)	(39.6)
Goodwill	$ 204.4	$ 132.8	132.8	$ 132.7
Additions		0.0	0.0
Foreign currency translation	1.5	0.1	0.1
Impairments	$ 0.0	$ 0.0	$ (3.1)

Goodwill and Other Intangibles - Narrative (Details) - USD ($)	3 Months Ended		12 Months Ended
	Aug. 31, 2024	Aug. 31, 2023	May 31, 2024	May 31, 2023
Goodwill [Line Items]
Additions		$ 0	$ 0
Goodwill, Impairment Loss	$ 0	0	0
Amortizable intangible assets acquired	$ 85,300,000	0	6,000,000.0
Useful life	9 years
Impairment of Intangible Assets, Finite-Lived			3,100,000
Impairment of intangible assets (excluding goodwill)	$ 0	$ 0
Amortizable Intangible Assets - Educational Programs
Goodwill [Line Items]
Amortizable intangible assets acquired			$ 5,800,000
Useful life			8 years
Amortizable Intangible Assets - Children's Book Publishing Business
Goodwill [Line Items]
Amortizable intangible assets acquired			$ 200,000
Useful life			5 years
9 Story Media Group Inc.
Goodwill [Line Items]
Additions	70,100,000
Amortizable intangible assets acquired	$ 85,300,000
Learning Ovations, Inc.
Goodwill [Line Items]
Amortizable intangible assets acquired				$ 4,100,000

Goodwill and Other Intangibles - Schedule of other intangible assets subject to amortization (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Aug. 31, 2024	Aug. 31, 2023	May 31, 2024
Finite-lived Intangible Assets [Roll Forward]
Beginning balance other intangibles subject to amortization	$ 8.2	$ 7.8	$ 7.8
Additions	85.3	0.0	6.0
Amortization expense	(2.4)	(0.5)	(2.6)
Foreign currency translation	1.5	0.0	0.1
Impairments	0.0	0.0	(3.1)
Total other intangibles subject to amortization, net of accumulated amortization of $24.8, $24.1 and $22.5, respectively	92.6	7.3	8.2
Accumulated amortization of intangible assets	41.5	37.0	39.1
Total other intangibles not subject to amortization	2.1	2.1	2.1
Total other intangibles	$ 94.7	$ 9.4	$ 10.3

Acquisitions - Narrative (Details) - USD ($) $ in Millions		2 Months Ended	3 Months Ended
Acquisitions - Narrative (Details) - USD ($) $ in Millions	Jun. 20, 2024	Aug. 31, 2024	Aug. 31, 2024	Aug. 31, 2023	May 31, 2024	Jun. 01, 2023	May 31, 2023
Business Acquisition [Line Items]
Noncontrolling interest, equity, carrying amount						$ 1.6
Additional paid-in capital		$ 606.3	$ 606.3	$ 632.7	$ 604.6	$ 0.5
9 Story Media Group Inc.
Business Acquisition [Line Items]
Percentage of outstanding shares acquired	100.00%
Percentage of interests acquired	25.00%
Revenues		16.0	242.9	248.3
Acquisition related costs			1.7
Net income (loss)		$ 0.1	$ (64.3)	$ (78.9)
9 Story Media Group Inc. \| Intellectual Property and Customer Contracts/Relationships
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life	10 years
9 Story Media Group Inc. \| Customer Relationships
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life	5 years
9 Story Media Group Inc. \| Trade Names
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life	10 years
9 Story Media Group Inc. \| Software Development
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life	3 years
Scholastic, Inc. \| Make Believe Ideas Limited (MBI)
Business Acquisition [Line Items]
Ownership percentage						100.00%	95.00%

Acquisitions - Assets and Liabilities Acquired (Details) - USD ($) $ in Millions	Jun. 20, 2024	Aug. 31, 2024	May 31, 2024	Aug. 31, 2023	May 31, 2023
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract]
Goodwill		$ 204.4	$ 132.8	$ 132.8	$ 132.7
9 Story Media Group Inc.
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Cash and cash equivalents	$ 17.5
Accounts receivable	15.9
Investment in film and television programs	42.9
Property, plant and equipment	6.0
Operating lease right-of-use assets	5.8
Other assets	35.9
Total assets acquired	209.3
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract]
Accounts payable	2.3
Other accrued expenses	16.4
Deferred revenue	10.9
Film related obligations	34.9
Operating lease liabilities	7.8
Other liabilities	13.2
Total liabilities assumed	85.5
Preliminary fair value of net assets acquired	123.8
Goodwill	70.1
Preliminary purchase price consideration	193.9
Step-up adjustment	1.8
Government tax credits	31.9
9 Story Media Group Inc. \| Existing Content/IP
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Other Intangible assets:	16.0
9 Story Media Group Inc. \| Customer Relationships
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Other Intangible assets:	51.5
9 Story Media Group Inc. \| Trade Names
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Other Intangible assets:	16.5
9 Story Media Group Inc. \| Software Development
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Other Intangible assets:	$ 1.3

Acquisitions - Pro Forma Information (Details) - 9 Story Media Group Inc. - USD ($) $ in Millions	2 Months Ended	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2024	Aug. 31, 2023
Business Acquisition [Line Items]
Revenues	$ 16.0	$ 242.9	$ 248.3
Net income (loss)	$ 0.1	$ (64.3)	$ (78.9)

Investments - Summary of the Company's Investments (Details) - USD ($) $ in Millions	Aug. 31, 2024	May 31, 2024	Aug. 31, 2023
Debt and Equity Securities, FV-NI [Line Items]
Total Investments	$ 39.5	$ 37.5	$ 38.3
Total International
Debt and Equity Securities, FV-NI [Line Items]
Equity method investments	32.5	31.5	32.3
Total Entertainment \| Other equity investments
Debt and Equity Securities, FV-NI [Line Items]
Other equity investments	$ 7.0	$ 6.0	$ 6.0

Investments - Narrative (Details) - USD ($)		3 Months Ended
Investments - Narrative (Details) - USD ($)	Jun. 20, 2024	Aug. 31, 2024	Aug. 31, 2023
Debt and Equity Securities, FV-NI [Line Items]
Equity Securities without Readily Determinable Fair Value, Impairment Loss, Cumulative Amount		$ 0
Income from equity-method investments		200,000	$ 200,000
9 Story Media Group Inc.
Debt and Equity Securities, FV-NI [Line Items]
Other equity investments		$ 1,000,000.0
Total Children's Book Publishing and Distribution
Debt and Equity Securities, FV-NI [Line Items]
Equity method ownership percentage		26.20%
Financing and Production Company \| Financing and Production Company
Debt and Equity Securities, FV-NI [Line Items]
Other equity percentage		4.60%
UK Children's Book Publishing
Debt and Equity Securities, FV-NI [Line Items]
Other equity investments, percentage acquired	12.00%
Animated Television Production Companies
Debt and Equity Securities, FV-NI [Line Items]
Equity method ownership percentage	50.00%

Employee Benefit Plans - Schedule of net periodic costs (Details) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Pension Plans \| Foreign Plan
Components of net periodic benefit (credit) cost:
Interest cost	$ 0.4	$ 0.4
Expected return on assets	(0.3)	(0.3)
Net amortization of prior service credit	0.0	0.0
Amortization of (gain) loss	0.3	0.3
Net periodic benefit (credit) cost	0.4	0.4
Post-Retirement Benefits
Components of net periodic benefit (credit) cost:
Interest cost	0.1	0.1
Expected return on assets	0.0	0.0
Net amortization of prior service credit	(0.2)	(0.2)
Amortization of (gain) loss	(0.0)	0.0
Net periodic benefit (credit) cost	$ (0.1)	$ (0.1)

Employee Benefit Plans - Narrative (Details) - USD ($)	3 Months Ended
Employee Benefit Plans - Narrative (Details) - USD ($)	Aug. 31, 2024	May 31, 2025
Employee Benefit Plans (Details) [Line Items]
Pension contributions	$ 300,000
Pension Plans \| Foreign Plan
Employee Benefit Plans (Details) [Line Items]
Expected future employer contributions		$ 1,300,000

Stock-Based Compensation (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Stock-Based Compensation (Details) - Schedule of stock-based compensation [Line Items]
Stock-based compensation expense	$ 2.2	$ 2.3
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	0.1	0.1
Stock option expense
Stock-Based Compensation (Details) - Schedule of stock-based compensation [Line Items]
Stock-based compensation expense	$ 0.6	$ 0.6
Restricted stock unit expense
Stock-Based Compensation (Details) - Schedule of stock-based compensation [Line Items]
Stock-based compensation expense	1.5	1.5
Management stock purchase plan
Stock-Based Compensation (Details) - Schedule of stock-based compensation [Line Items]
Stock-based compensation expense	0.0	0.0
Employee stock purchase plan
Stock-Based Compensation (Details) - Schedule of stock-based compensation [Line Items]
Stock-based compensation expense	$ 0.1	$ 0.2

Treasury Stock - Schedule of repurchase of common stock (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Aug. 31, 2024	Aug. 31, 2023	Aug. 31, 2024	Mar. 20, 2024	Dec. 13, 2023
Equity, Class of Treasury Stock [Line Items]
Authorized amount of stock to be repurchased	$ 120.8		$ 120.8	$ 54.6
Less repurchases made under these authorizations	(5.0)	$ (36.2)
Remaining Board authorization at August 31, 2024	$ 81.6		81.6
Board Authorized 2023 Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Authorized amount of stock to be repurchased					$ 66.2
Board Authorized 2024 Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Authorized amount of stock to be repurchased				$ 54.6
Under all Board Authorizations
Equity, Class of Treasury Stock [Line Items]
Less repurchases made under these authorizations			$ (39.2)

Treasury Stock - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023	Mar. 20, 2024
Equity, Attributable to Parent [Abstract]
Authorized amount of stock to be repurchased	$ 120.8		$ 54.6
Treasury stock, value acquired	$ 5.0	$ 36.2

Accumulated Other Comprehensive Income (Loss) - Schedule of AOCI Activity (Details) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ (52.5)
Other comprehensive income (loss) before reclassifications	8.2	$ 1.8
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax	(0.3)	(0.3)
Amortization of prior service (credit) cost (net of tax of $0.1)	(0.1)	(0.1)
Other comprehensive income (loss)	8.4	2.0
Ending balance	(44.1)	(53.8)
Reclassification adjustment from AOCI, tax	0.0	0.0
Amortization of prior service credit, tax	0.1	0.1
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(52.5)	(55.8)
Ending balance	(44.1)	(53.8)
Foreign currency translation adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(46.9)	(50.0)
Other comprehensive income (loss) before reclassifications	8.2	1.8
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax	0.0	0.0
Amortization of prior service (credit) cost (net of tax of $0.1)	0.0	0.0
Other comprehensive income (loss)	8.2	1.8
Ending balance	(38.7)	(48.2)
Retirement benefit plans
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(5.6)	(5.8)
Other comprehensive income (loss) before reclassifications	0.0	0.0
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax	(0.3)	(0.3)
Amortization of prior service (credit) cost (net of tax of $0.1)	(0.1)	(0.1)
Other comprehensive income (loss)	0.2	0.2
Ending balance	$ (5.4)	$ (5.6)

Accumulated Other Comprehensive Income (Loss) - Reclassification out of AOCI (Details) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Less: Tax effect	$ 29.3	$ 23.8
Net income (loss) attributable to Scholastic Corporation	62.5	74.2
Amount reclassified from Accumulated other comprehensive income (loss) \| Retirement benefit plans
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of unrecognized gain (loss)	0.3	0.3
Amortization of prior service (credit) loss	(0.2)	(0.2)
Less: Tax effect	0.1	0.1
Net income (loss) attributable to Scholastic Corporation	$ 0.2	$ 0.2

Income Taxes and Other Taxes (Details)	3 Months Ended
Income Taxes and Other Taxes (Details)	Aug. 31, 2024	Aug. 31, 2023
Income Tax And Non Income Tax Disclosure [Abstract]
Effective income tax rate (percentage)	31.90%	24.30%

Derivatives and Hedging (Details) - Not Designated as Hedging Instrument - Foreign Exchange Contract - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2024	Aug. 31, 2023
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized gain (loss)	$ 0.3	$ (0.4)
Derivative, Notional Amount	22.8	22.8
Derivative, Notional Amount	$ 22.8	$ 22.8

Other Accrued Expenses - Schedule of accrued expenses (Details) - USD ($) $ in Millions	Aug. 31, 2024	May 31, 2024	Aug. 31, 2023
Schedule of accrued expenses [Abstract]
Accrued payroll, payroll taxes and benefits	$ 30.5	$ 32.9	$ 34.5
Accrued bonus and commissions	13.0	21.6	13.0
Returns liability	30.7	33.1	33.1
Accrued other taxes	13.6	23.0	16.0
Accrued advertising and promotions	7.3	5.7	8.5
Other accrued expenses	44.0	40.0	40.8
Total accrued expenses	$ 139.1	$ 156.3	$ 145.9

Subsequent Events (Details) - $ / shares	3 Months Ended
Subsequent Events (Details) - $ / shares	Nov. 30, 2024	Aug. 31, 2024	Aug. 31, 2023
Subsequent Event [Line Items]
Dividends declared per class A and common share (in Dollars per share)		$ 0.20	$ 0.20
Subsequent Event
Subsequent Event [Line Items]
Dividends declared per class A and common share (in Dollars per share)	$ 0.20

Scholastic (NASDAQ:SCHL)
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