SCHOLASTIC CORP Leases Disclosure
| May 31, 2025 | May 31, 2024 | Location within Consolidated Balance Sheet | ||||||||||||||||||
| Operating leases | $ | 103.9 | $ | 99.1 | Operating lease right-of-use assets, net | |||||||||||||||
| Finance leases | 6.0 | 5.6 | ||||||||||||||||||
| Total lease assets | $ | 109.9 | $ | 104.7 | ||||||||||||||||
| Operating leases: | ||||||||||||||||||||
| Current portion | $ | 26.8 | $ | 22.4 | Operating lease liabilities, current | |||||||||||||||
Noncurrent portion | 91.5 | 89.2 | Operating lease liabilities, noncurrent | |||||||||||||||||
| Total operating lease liabilities | $ | 118.3 | $ | 111.6 | ||||||||||||||||
| Finance leases: | ||||||||||||||||||||
| Current portion | $ | 1.7 | $ | 1.7 | ||||||||||||||||
Noncurrent portion | 4.9 | 4.5 | ||||||||||||||||||
| Total finance lease liabilities | $ | 6.6 | $ | 6.2 | ||||||||||||||||
| Total lease liabilities | $ | 124.9 | $ | 117.8 | ||||||||||||||||
| Location within Consolidated Statements of Operations | |||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||
| Operating lease expense | $ | 31.7 | $ | 29.7 | $ | 26.6 | Selling, general and administrative expenses | ||||||||||||||||
| Finance lease costs : | |||||||||||||||||||||||
| Depreciation of leased assets | 1.4 | 2.1 | 2.1 | Depreciation and amortization | |||||||||||||||||||
| Accretion of lease liabilities | 0.6 | 0.3 | 0.3 | Interest expense | |||||||||||||||||||
| Total lease expense | $ | 33.7 | $ | 32.1 | $ | 29.0 | |||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||
| Operating cash flows from operating leases | $ | 28.6 | $ | 30.2 | $ | 25.9 | ||||||||||||||
| Operating cash flows from finance leases | 0.6 | 0.3 | 0.4 | |||||||||||||||||
| Financing cash flows from finance leases | 1.7 | 2.3 | 2.3 | |||||||||||||||||
| Noncash transactions: | ||||||||||||||||||||
| Lease assets obtained in exchange for new lease liabilities | $ | 25.0 | $ | 40.4 | $ | 27.4 | ||||||||||||||
| Operating Leases | Finance Leases | ||||||||||||||||
| Fiscal 2026 | $ | 32.4 | $ | 2.1 | |||||||||||||
| Fiscal 2027 | 30.0 | 1.8 | |||||||||||||||
| Fiscal 2028 | 23.7 | 1.4 | |||||||||||||||
| Fiscal 2029 | 15.8 | 0.9 | |||||||||||||||
| Fiscal 2030 | 10.5 | 0.7 | |||||||||||||||
| Thereafter | 25.3 | 0.5 | |||||||||||||||
| Total lease payments | $ | 137.7 | $ | 7.4 | |||||||||||||
| Less: interest | (19.4) | (0.8) | |||||||||||||||
| Total lease liabilities | $ | 118.3 | $ | 6.6 | |||||||||||||
| 2025 | 2024 | |||||||||||||
| Weighted-average remaining lease term (years): | ||||||||||||||
| Operating Leases | 5.3 | 6.0 | ||||||||||||
| Finance Leases | 4.5 | 4.5 | ||||||||||||
| Weighted-average discount rate: | ||||||||||||||
| Operating Leases | 5.6 | % | 5.6 | % | ||||||||||
| Finance Leases | 5.0 | % | 4.5 | % | ||||||||||
The Company has leasable space in its headquarters in SoHo, New York City. The lease terms with the Company's tenants typically range from 10 to 15 years. The Company recognized rental income of $11.2, $9.7 and $7.1 for the fiscal years ended May 31, 2025, 2024, and 2023, respectively.
The following table summarizes the future rental payments to be received by the Company on an annual basis at May 31, 2025:
Amount | |||||||||||
| Fiscal 2026 | $ | 11.6 | |||||||||
| Fiscal 2027 | 12.3 | ||||||||||
| Fiscal 2028 | 12.5 | ||||||||||
| Fiscal 2029 | 12.8 | ||||||||||
| Fiscal 2030 | 13.5 | ||||||||||
| Thereafter | 45.0 | ||||||||||
Total | $ | 107.7 | |||||||||
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.