Financial Analysis

"ACQUISITIONS 9 Story Acquisition On June 20, 2024, the Company completed the acquisition of 100% of the economic interest in the form of non-voting shares and 25% of the voting shares of 9 Story, a leading independent creator, producer and distributor of premium childrens content based in Toronto, Canada, with studios or offices in New York, United States, Dublin, Ireland and Bali, Indonesia. The aggregate purchase price was $193.7 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 a controlling financial interest over 9 Story. Accordingly, 9 Story has been consolidated into the Company's financial results. The operations of 9 Story are reported in the Entertainment segment. 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 fair value of acquired assets and liabilities as of the date of acquisition based on cu …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES Contractual Commitments The following table sets forth the aggregate minimum future contractual commitments at May 31, 2026 relating to royalty advances and minimum print quantities for the fiscal years ending May 31: Royalty Advances Minimum Print Quantities 2027 $ 20.1 $ 0.4 2028 7.2 0.7 2029 5.0 0.3 2030 2.7 0.3 2031 1.0 Thereafter 1.6 Total commitments $ 37.6 $ 1.7 The Company had open standby letters of credit of $5.4 and $4.0 issued under certain credit lines as of May 31, 2026 and May 31, 2025, respectively, in support of its insurance programs. These letters of credit are scheduled to expire within one year; however, the Company expects that substantially all of these letters of credit will be renewed, at similar terms, prior to their expiration. 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 …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT The following table summarizes the Company's debt, excluding film related obligations, as of May 31: Carrying Value Fair Value Carrying Value Fair Value 2026 2025 Loan Agreement: Revolving loan $ 75.0 $ 75.0 $ 250.0 $ 250.0 Unsecured lines of credit (weighted average interest rates of 4.2% and 4.5%, respectively) 5.5 5.5 6.2 6.2 Total debt $ 80.5 $ 80.5 $ 256.2 $ 256.2 Less: lines of credit and current portion of long-term debt (5.5) (5.5) (6.2) (6.2) Total long-term debt $ 75.0 $ 75.0 $ 250.0 $ 250.0 The following table sets forth the maturities of the carrying values of the Company's debt obligations, excluding film related obligations, as of May 31, 2026 for the twelve month periods ended May 31: 2027 $ 5.5 2028 2029 2030 75.0 2031 Thereafter Total Debt $ 80.5 U.S. Credit Agreement On November 26, 2024, Scholastic Corporation and its principal operating subsidiary, Scholastic Inc., entered into a Third Amendment to Amended and Restated Credit Agreement (the Amendment) 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 (as amended by the Third Amendment, the Credit Agreement). The arrangement was accounted for as a debt modification. The revised terms of the amended Credit Agreement include the following: an increase in borrowing limits to $400.0 from $300.0, as amended on October 27, 2021; an increase in the interest pricing margins for SOFR loans to a range …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"The following table presents the Companys segment revenues disaggregated by region and domestic channel during the year ended May 31: 2026 2025 2024 Book Clubs - U.S. $ 57.1 $ 64.2 $ 62.7 Book Fairs - U.S. 576.0 548.3 541.6 Trade - U.S. (1) 289.9 304.7 298.7 Trade - International (2) 41.2 46.7 50.3 Total Children's Book Publishing and Distribution 964.2 963.9 953.3 Education - U.S. 267.6 309.8 351.2 Total Education 267.6 309.8 351.2 Entertainment - U.S. (1) 8.8 5.2 1.9 Entertainment - International 56.9 55.8 Total Entertainment 65.7 61.0 1.9 International - Major Markets (3) 235.9 241.6 228.6 International - Other Markets (4) 41.3 38.0 45.0 Total International 277.2 279.6 273.6 Overhead (5) 7.2 11.2 9.7 Total Revenues $ 1,581.9 $ 1,625.5 $ 1,589.7 (1) The Entertainment segment includes the operations of SEI, which were included in the Childrens Book Publishing and Distribution segment in prior periods, and 9 Story. The financial results for SEI for fiscal 2024 have been reclassified to Entertainment to reflect this change. (2) Primarily includes foreign rights and certain product sales in the UK. (3) Includes Canada, UK, Australia and New Zealand. (4) Primarily includes markets in Asia. (5) Overhead includes rental income related to leased space in the Company's headquarters. As a result of the sale and leaseback transactions completed during the third quarter of fiscal 2026, the Company no longer owns the underlying leasable space. Refer to Note 4, ""Sale and Leaseback Tran …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"CAPITAL STOCK AND STOCK-BASED AWARDS Class A Stock and Common Stock Capital stock consisted of the following as of May 31, 2026: Class A Stock Common Stock Preferred Stock Authorized 3,171,900 70,000,000 2,000,000 Reserved for Issuance 4,074,031 Outstanding 828,100 17,920,321 The only voting rights vested in the holders of Common Stock, except as required by law, are the election of such number of directors as shall equal at least one-fifth of the members of the Board. The Class A Stockholders are entitled to elect all other directors and to vote on all other matters. The Class A Stockholders and the holders of Common Stock are entitled to one vote per share on matters on which they are entitled to vote. The Class A Stockholders have the right, at their option, to convert shares of Class A Stock into shares of Common Stock on a share-for-share basis. With the exception of voting rights and conversion rights, and as to any rights of holders of Preferred Stock if issued, the Class A Stock and the Common Stock are equal in rank and are entitled on the same basis to dividends and distributions when and if declared by the Board. The Company issues shares of Common Stock from its Treasury stock upon conversion of Class A stock and to meet its share-based payment requirements, net of shares required to be withheld to cover the recipient's tax obligations. During fiscal 2024, Class A Stockholders surrendered 828,100 shares of Class A Stock for conversion into shares of Common Stock. …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"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 Companys 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 unadjusted quoted prices in active markets for identical assets or liabilities such as: Quoted prices for similar assets or liabilities in active markets Quoted prices for identical or similar assets or liabilities in inactive markets Inputs other than quoted prices that are observable for the asset or liability Inputs that are derived principally from or corroborated by observable market data by correlation or other means 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 Companys 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 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"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 Companys products and other relevant factors. The following table summarizes the activity in Goodwill for the fiscal years ended May 31: 2026 2025 Gross beginning balance $ 238.5 $ 172.4 Accumulated impairment (39.6) (39.6) Beginning balance $ 198.9 $ 132.8 Additions 64.2 Foreign currency translation 0.5 1.9 Gross ending balance 239.0 238.5 Accumulated impairment (39.6) (39.6) Ending balance $ 199.4 $ 198.9 In fiscal 2025, the Company completed the 9 Story acquisition which resulted in the recognition of $64.2 of Goodwill included in the Entertainment segment. Refer to Note 12, ""Acquisitions"", for further details regarding the acquisition. There were no impairment charges related to Goodwill in any of the periods presented. The following table presents Goodwill by segment as of May 31: 2026 2025 Children's Book Publishing and Distribution $ 47.4 $ 47.4 Education 75.7 75.7 Entertainment 66.2 65.7 International 10.1 10.1 Total $ 199.4 $ 198.9 The following table summarizes the activity in other intangibles included in Other intangible assets, net on the Companys Financial Statements for the fiscal years ended May 31: 2026 2025 Other intangibles subject to amortization - beginning balanc …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"LEASES The following table summarizes right-of-use assets and lease liabilities recorded on the Company's Consolidated Balance Sheet for the fiscal years ended May 31, 2026 and May 31, 2025: May 31, 2026 May 31, 2025 Location within Consolidated Balance Sheet Operating leases $ 291.2 $ 103.9 Operating lease right-of-use assets, net Finance leases 14.1 6.0 Property, plant and equipment, net Total lease assets $ 305.3 $ 109.9 Operating leases: Current portion $ 26.4 $ 26.8 Operating lease liabilities, current Noncurrent portion 280.6 91.5 Operating lease liabilities, noncurrent Total operating lease liabilities $ 307.0 $ 118.3 Finance leases: Current portion $ 3.2 $ 1.7 Other accrued expenses Noncurrent portion 11.7 4.9 Other noncurrent liabilities Total finance lease liabilities $ 14.9 $ 6.6 Total lease liabilities $ 321.9 $ 124.9 During fiscal 2026, the Company sold its headquarters in New York City and its primary distribution facility in Jefferson City, Missouri, and concurrently entered into a 15-year lease for a portion of its headquarters building and a 20-year lease for the distribution facility. These leases are classified as operating leases in accordance with ASC 842 . Refer to Note 4, ""Sale and Leaseback Transactions"", for further details. As part of the Company's efforts to rightsize its real estate footprint to reduce occupancy costs, the Company recognized pretax impairment charges of $0.6 and $3.9 for the fiscal years ended May 31, 2025 and 2024, respectively …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recently Adopted Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""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 entitys 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. The amendments in this ASU have been applied prospectively. Refer to Note 14, ""Taxes,"" for the Company's disclosures related to this update. Recently Issued Accounting Pronouncements In December 2025, the FASB issued ASU 2025-10, ""Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities."" The amendments in this Update establish the accounting for a government grant received by a business entity, including guidance for (1) a grant related to an asset and (2) a grant related to income. A grant related to an asset is a government grant, or part of a government grant, that is conditioned on the purchase, construction, or acquisition of an asset (for example, a long-lived asset or inventory). A grant related to income is a government grant, or part o …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

EMPLOYEE BENEFIT PLANS Pension Plans The Company has a defined benefit pension plan (the UK Pension Plan) that covers certain employees located in the United Kingdom who meet various eligibility requirements. Benefits are based on years of service and on a percentage of compensation near retirement. The UK Pension Plan is funded by contributions from the Company. The Companys UK Pension Plan has a measurement date of May 31. On October 24, 2025, the UK Pension Plan entered into a group annuity contract covering substantially all remaining uninsured liabilities of the plan. Under the terms of the arrangement, the insurance company is obligated to make payments to the UK Pension Plan that are intended to substantially match the pension benefits payable to the covered participants. The UK Pension Plan remains the legal obligor for the payment of benefits to participants, and participants do not have a direct contractual relationship with the insurer. Accordingly, the transaction does not constitute a settlement of the related pension obligations. The annuity contract is held as a plan asset and is reported at fair value. Following the transaction, the UK Pension Plan liabilities have been measured on a termination basis, reflecting the purchase price of the insurance policy, adjusted for interest accretion, benefit payments, and changes in market conditions subsequent to the transaction date. Postretirement Benefits The Company provides postretirement benefits to eligible retire …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

RELATED PARTY TRANSACTIONS On April 18, 2024, the Company entered into a share repurchase agreement to purchase shares of its common stock from the Estate of M. Richard Robinson, Jr. in a privately negotiated transaction. Pursuant to the repurchase agreement, the Company purchased 400,000 shares of common stock on April 18, 2024 at a price of $33.51 per share, representing an aggregate purchase price of $13.4. The price per share paid represented a 3.8% discount to the closing price of the stock, $34.83, on the date of execution of the repurchase agreement. The repurchase was made pursuant to the Companys current share repurchase program as previously approved by the Board. The aforementioned transaction was approved by the Board upon the recommendation of the Audit Committee. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

"REVENUES Disaggregated Revenue Data The following table presents the Companys segment revenues disaggregated by region and domestic channel during the year ended May 31: 2026 2025 2024 Book Clubs - U.S. $ 57.1 $ 64.2 $ 62.7 Book Fairs - U.S. 576.0 548.3 541.6 Trade - U.S. (1) 289.9 304.7 298.7 Trade - International (2) 41.2 46.7 50.3 Total Children's Book Publishing and Distribution 964.2 963.9 953.3 Education - U.S. 267.6 309.8 351.2 Total Education 267.6 309.8 351.2 Entertainment - U.S. (1) 8.8 5.2 1.9 Entertainment - International 56.9 55.8 Total Entertainment 65.7 61.0 1.9 International - Major Markets (3) 235.9 241.6 228.6 International - Other Markets (4) 41.3 38.0 45.0 Total International 277.2 279.6 273.6 Overhead (5) 7.2 11.2 9.7 Total Revenues $ 1,581.9 $ 1,625.5 $ 1,589.7 (1) The Entertainment segment includes the operations of SEI, which were included in the Childrens Book Publishing and Distribution segment in prior periods, and 9 Story. The financial results for SEI for fiscal 2024 have been reclassified to Entertainment to reflect this change. (2) Primarily includes foreign rights and certain product sales in the UK. (3) Includes Canada, UK, Australia and New Zealand. (4) Primarily includes markets in Asia. (5) Overhead includes rental income related to leased space in the Company's headquarters. As a result of the sale and leaseback transactions completed during the third quarter of fiscal 2026, the Company no longer owns the underlying leasable space. Refer …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"SEGMENT INFORMATION The Company categorizes its businesses into four reportable segments: Childrens Book Publishing and Distribution, Education, Entertainment and International . Childrens Book Publishing and Distribution operates as an integrated business which includes the publication and distribution of childrens books, ebooks, media and interactive products in the 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 includes the publication and distribution to schools and libraries of childrens books, classroom magazines, print and digital supplemental and core classroom materials and programs 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 Companys international operations and its export and foreign rights businesses. This segment is comprised of four operating segments. The Company's chief operating decision maker (""CODM"") is the President and Chief Executive Officer. The CODM uses …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the impact on earnings of reclassifications out of Accumulated other comprehensive income (loss) for the fiscal years ended May 31: 2026 2025 2024 UK Pension Plan US Postretirement Benefits UK Pension Plan US Postretirement Benefits UK Pension Plan US Postretirement Benefits Amortization of prior service (credit) loss $ 0.0 $ (0.8) $ 0.0 $ (0.8) $ 0.0 $ (0.8) Amortization of net actuarial loss (gain) 1.7 (0.1) 1.4 (0.1) 1.3 0.0 Tax (benefit) expense 0.2 0.2 0.2 Amounts reclassified from Accumulated other comprehensive income (loss) $ 1.7 $ (0.7) $ 1.4 $ (0.7) $ 1.3 $ (0.6) The amounts reclassified out of Accumulated other comprehensive income (loss) were recognized in Other components of net periodic benefit (cost) for all periods presented. The following tables summarize the activity in Accumulated other comprehensive income (loss), net of tax, by component for the periods indicated: Foreign currency translation adjustments UK Pension Plan US Postretirement Benefits Total Balance at May 31, 2024 (1) $ (46.9) $ (11.8) $ 6.2 $ (52.5) Other comprehensive income (loss) before reclassifications $ 10.9 $ (0.6) $ 0.0 $ 10.3 Less: amounts reclassified from Accumulated other comprehensive income (loss) (net of taxes) Amortization of net actuarial loss $ $ 1.4 $ (0.1) $ 1.3 Amortization of prior service (credit) cost 0.0 (0.6) (0.6) Other comprehensive income (loss) 10.9 0.8 (0.7) 11.0 Balance at May 31, 2025 ( …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS On July 22, 2026, the Company announced its quarterly cash dividend of $0.25 per share on the Company's Class A and Common Stock for the first quarter of fiscal 2027, representing a 25% increase from the previous dividend of $0.20 per share. The dividend is payable on September 15, 2026 to shareholders of record as of the close of business on August 31, 2026.

SubsequentEventsTextBlock

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 Companys consolidated financial position or results of operations. The Company is a claimant in a class action settlement related to alleged copyright infringement. The settlement has received final court approval, and the Company may be entitled to a distribution from the settlement fund following completion of the claims administration process, resolution of any appeals and validation of eligible claims. As of August 31, 2026, the Company has not recorded any receivable related to this matter, as realization of any proceeds is not yet cons …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

. DEBT The following table summarizes the carrying value of the Company's debt, excluding film related obligations, as of the dates indicated: August 31, 2026 May 31, 2026 August 31, 2025 U.S. Credit Agreement $ 175.0 $ 75.0 $ 325.0 Unsecured lines of credit 9.8 5.5 6.2 Total debt $ 184.8 $ 80.5 $ 331.2 Less lines of credit, short-term debt and current portion of long-term debt (9.8) (5.5) (6.2) Total long-term debt $ 175.0 $ 75.0 $ 325.0 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, 2026 for the twelve month periods ending August 31: 2027 $ 9.8 2028 2029 2030 175.0 2031 Thereafter Total Debt $ 184.8 U.S. Credit Agreement On November 26, 2024, Scholastic Corporation and its principal operating subsidiary, Scholastic Inc., entered into a Third Amendment to Amended and Restated Credit Agreement (the Amendment) 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 (as amended by the Third Amendment, the Credit Agreement). The Credit Agreement provides for a $400.0 unsecured revolving credit facility and allows the Company to borrow, repay or prepay and reborrow at any time prior to the November 26, 2029 maturity date. The Credit Agreement also provides an unlimited basket for permitted payments of dividends and other distributions in respect of capital stock so l …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents the Companys segment revenues disaggregated by region and domestic channel: Three months ended August 31, August 31, 2026 2025 Book Clubs - U.S. $ 2.1 $ 1.8 Book Fairs - U.S. 33.2 34.1 Trade - U.S. 63.9 61.2 Trade - International (1) 6.6 12.3 Total Children's Book Publishing and Distribution $ 105.8 $ 109.4 Education - U.S. $ 30.4 $ 40.1 Total Education $ 30.4 $ 40.1 Entertainment - U.S. $ 2.3 $ 1.4 Entertainment - International (2) 17.8 12.2 Total Entertainment $ 20.1 $ 13.6 International - Major Markets (3) $ 49.5 $ 48.9 International - Other Markets (4) 11.0 10.5 Total International $ 60.5 $ 59.4 Overhead (5) $ $ 3.1 Total Overhead $ $ 3.1 Total Revenues $ 216.8 $ 225.6 (1) Primarily includes foreign rights and certain product sales in the UK. (2) Primarily includes production, distribution and licensing revenues in Canada, Ireland and Indonesia. (3) Includes Canada, UK, Australia and New Zealand. (4) Primarily includes markets in Asia. (5) For the three months ended August 31, 2025, Overhead included rental income related to leased space in the Company's headquarters. As a result of the sale-leaseback transactions completed during the third quarter of fiscal 2026, the Company no longer owns the leasable space. …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

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, August 31, 2026 2025 Stock option expense $ 0.2 $ 0.3 Restricted stock unit expense 1.9 1.5 Management stock purchase plan 0.0 Employee stock purchase plan 0.1 0.1 Total stock-based compensation expense $ 2.2 $ 1.9 The following table sets forth Common Stock issued pursuant to stock-based compensation plans for the periods indicated: Three months ended August 31, August 31, 2026 2025 Common Stock issued pursuant to stock-based compensation plans (in millions) 0.3 0.1 …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"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 Companys 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 Companys 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 empl …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

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 Companys products and other relevant factors. The following table summarizes the activity in Goodwill for the periods indicated: August 31, 2026 May 31, 2026 August 31, 2025 Gross beginning balance $ 239.0 $ 238.5 $ 238.5 Accumulated impairment (39.6) (39.6) (39.6) Beginning balance $ 199.4 $ 198.9 $ 198.9 Foreign currency translation (0.2) 0.5 0.8 Ending balance $ 199.2 $ 199.4 $ 199.7 There were no impairment charges related to Goodwill in any of the periods presented. The following table summarizes the activity on a year-to-date basis in Other intangible assets for the periods indicated: August 31, 2026 May 31, 2026 August 31, 2025 Beginning balance - Other intangibles subject to amortization $ 75.8 $ 85.8 $ 85.8 Amortization expense (2.8) (11.3) (2.8) Foreign currency translation (0.3) 1.3 1.5 Total other intangibles subject to amortization, net of accumulated amortization of $64.4, $61.6 and $53.1, respectively $ 72.7 $ 75.8 $ 84.5 Total other intangibles not subject to amortization $ 2.1 $ 2.1 $ 2.1 Total other intangible assets, net $ 74.8 $ 77.9 $ 86.6 There were no impairment charges related to Other intangible assets in any of the periods presented. Other intangible assets with …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"Recently Adopted Accounting Pronouncements In July 2025, the FASB issued ASU 2025-05, ""Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets."" The amendments in this Update provide entities with a practical expedient related to developing reasonable and supportable forecasts as part of estimating expected credit losses, in which entities may elect to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. The Company elected to adopt the practical expedient on a prospective basis effective June 1, 2026. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements. Recently Issued Accounting Pronouncements In December 2025, the FASB issued ASU 2025-10, ""Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities."" The amendments in this Update establish the accounting for a government grant received by a business entity, including guidance for (1) a grant related to an asset and (2) a grant related to income. A grant related to an asset is a government grant, or part of a government grant, that is conditioned on the purchase, construction, or acquisition of an asset (for example, a long-lived asset or inventory). A grant related to income is a government grant, or part of a government grant, other than a grant related to an asset (for example, a grant that reimburses a busi …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

RELATED PARTY TRANSACTIONS On August 25, 2026, the Company entered into a share repurchase agreement to purchase shares of its common stock from the Estate of M. Richard Robinson, Jr. in a privately negotiated transaction. Pursuant to the repurchase agreement, the Company purchased 289,624 shares of common stock on August 26, 2026 at a price of $39.76 per share, representing an aggregate purchase price of $11.5. The price per share paid represented a 3% discount to the closing price of the stock, $40.99, on the date of execution of the repurchase agreement. The repurchase was made pursuant to the Companys share repurchase program as previously approved by the Board. Upon the recommendation of the Audit Committee, the Board approved the aforementioned transaction without the participation of the preliminary executor of the Estate, who serves as the Company's Chair of the Board and an executive officer. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

REVENUES Disaggregated Revenue Data The following table presents the Companys segment revenues disaggregated by region and domestic channel: Three months ended August 31, August 31, 2026 2025 Book Clubs - U.S. $ 2.1 $ 1.8 Book Fairs - U.S. 33.2 34.1 Trade - U.S. 63.9 61.2 Trade - International (1) 6.6 12.3 Total Children's Book Publishing and Distribution $ 105.8 $ 109.4 Education - U.S. $ 30.4 $ 40.1 Total Education $ 30.4 $ 40.1 Entertainment - U.S. $ 2.3 $ 1.4 Entertainment - International (2) 17.8 12.2 Total Entertainment $ 20.1 $ 13.6 International - Major Markets (3) $ 49.5 $ 48.9 International - Other Markets (4) 11.0 10.5 Total International $ 60.5 $ 59.4 Overhead (5) $ $ 3.1 Total Overhead $ $ 3.1 Total Revenues $ 216.8 $ 225.6 (1) Primarily includes foreign rights and certain product sales in the UK. (2) Primarily includes production, distribution and licensing revenues in Canada, Ireland and Indonesia. (3) Includes Canada, UK, Australia and New Zealand. (4) Primarily includes markets in Asia. (5) For the three months ended August 31, 2025, Overhead included rental income related to leased space in the Company's headquarters. As a result of the sale-leaseback transactions completed during the third quarter of fiscal 2026, the Company no longer owns the leasable space. Estimated Returns A liability for expected returns of $32.9, $32.2, and $32.9 is recorded within Other accrued expenses as of August 31, 2026, May 31, 2026, and August 31, 2025, respectively. In additi …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"SEGMENT INFORMATION The Company categorizes its businesses into four reportable segments: Childrens Book Publishing and Distribution, Education, Entertainment and International . Childrens Book Publishing and Distribution operates as an integrated business which includes the publication and distribution of childrens books, ebooks, media and interactive products in the 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 includes the publication and distribution to schools and libraries of childrens books, classroom magazines, print and digital supplemental and core classroom materials and programs 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 Companys international operations and its export and foreign rights businesses. This segment is comprised of four operating segments. The Company's chief operating decision maker (""CODM"") is the President and Chief Executive Officer. The CODM uses …

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SUBSEQUENT EVENTS On September 16, 2026, the Board declared a quarterly cash dividend of $0.25 per share on the Companys Class A and Common Stock for the second quarter of fiscal 2027. The dividend is payable on December 15, 2026 to shareholders of record as of the close of business on October 30, 2026. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing