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What changed in JOHN WILEY & SONS, INC.'s 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of JOHN WILEY & SONS, INC.'s 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+434 added−376 removedSource: 10-K (2023-06-26) vs 10-K (2022-06-24)

Top changes in JOHN WILEY & SONS, INC.'s 2023 10-K

434 paragraphs added · 376 removed · 258 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

74 edited+35 added−27 removed17 unchanged
Biggest changeOur human capital metrics summary (excluding Wiley Edge) as of April 30, 2022: CATEGORY METRIC EMPLOYEES By Region Americas 47% APAC 19% EMEA 34% DIVERSITY AND INCLUSION Global Gender Representation % Female Colleagues 56% % Female Senior Leaders (Vice President and Above) 42% US Person of Color (POC) Representation * % POC 26% % POC Senior Leaders (Vice President and Above) 19% * US POC includes employees who self-identify as Hispanic or Latino, Black or African American, Asian, American Indian or Alaskan Native, Native Hawaiian or other Pacific Islander, or two or more races. 12 Index Health, Safety & Well-Being Safeguarding and promoting colleague well-being is central to what we do, as it is critically important we provide the tools and resources they need to be healthy and at their best.
Biggest changeThese values define who we are as a company and what we stand for. 12 Index Our human capital metrics summary (excluding placement candidates in Wiley Edge) as of April 30, 2023: CATEGORY METRIC EMPLOYEES By Region Americas 48 % APAC 20 % EMEA 32 % DIVERSITY AND INCLUSION Global Gender Representation % Female Colleagues 59 % % Female Senior Leaders (Vice President and Above) 43 % US Person of Color (POC) Representation* % POC 27 % % POC Senior Leaders (Vice President and Above) 19 % * US POC includes employees who self-identify as Hispanic or Latino, Black or African American, Asian, American Indian or Alaskan Native, Native Hawaiian or other Pacific Islander, Other, or two or more races.
The ability to join Wiley’s product development, sales, marketing, distribution, and technology with a partner’s content, technology, and/or brand name has contributed to our success. 9 Index Digital Courseware We offer high-quality online learning solutions, including WileyPLUS , a research-based, online environment for effective teaching and learning that is integrated with a complete digital textbook.
The ability to join Wiley’s product development, sales, marketing, distribution, and technology with a partner’s content, technology, and/or brand name has contributed to our success. Digital Courseware We offer high-quality online learning solutions, including WileyPLUS , a research-based online environment for effective teaching and learning that is integrated with a complete digital textbook.
Wiley’s branded assessment solutions include Everything DiSC®, The Five Behaviors® based on Patrick Lencioni’s perennial bestseller The Five Dysfunctions of a Team , and Leadership Practices Inventory® from Kouzes and Posner’s bestselling The Leadership Challenge ®, as well as PXT Select™, a prehire selection tool. Our solutions help organizations hire and develop effective managers, leaders, and teams.
Wiley’s branded assessment solutions include Everything DiSC®, The Five Behaviors® based on Patrick Lencioni’s perennial bestseller The Five Dysfunctions of a Team , and Leadership Practices Inventory® from Kouzes and Posner’s bestselling The Leadership Challenge ®, as well as PXT Select™, a pre-hire selection tool. Our solutions help organizations hire and develop effective managers, leaders, and teams.
We employ sales representatives who call on faculty responsible for selecting books to be used in courses and on the bookstores that serve such institutions and their students. The textbook business is seasonal, with the majority of textbook sales occurring during the July-through-October and December-through-January periods.
We employ sales representatives who call on faculty responsible for selecting books to be used in courses and on the bookstores that serve such institutions and their students. The textbook business is seasonal, with the majority of textbook sales occurring during the July-through-October and December-through-February periods.
The Open Access portfolio spans life, physical, medical, and social sciences and includes a choice of high impact journals and broad-scope titles that offer a responsive, author-centered service. Transformational agreements (“read and publish”), are an innovative model that blends Journal Subscription and Open Access offerings.
The Open Access portfolio spans life, physical, medical, and social sciences and includes a choice of high impact journals and broad-scope titles that offer a responsive, author-centered service. 7 Index Transformational agreements (“read and publish”), are an innovative model that blends Journal Subscription and Open Access offerings.
The graphs below present revenue by product type for the years ended April 30, 2022, and 2021: Key growth strategies for the Research Publishing & Platforms segment include evolving and developing new licensing models for our institutional customers (“pay to read and publish”), developing new open access journals and revenue streams (“pay to publish”), focusing resources on high-growth and emerging markets, and developing new digital products, services, and workflow solutions to meet the needs of researchers, authors, societies, and corporate customers.
The graphs below present revenue by product type for the years ended April 30, 2023 and 2022: 2023 2022 Key growth strategies for the Research segment include evolving and developing new licensing models for our institutional customers (“pay to read and publish”), developing new open access journals and revenue streams (“pay to publish”), focusing resources on high-growth and emerging markets, and developing new digital products, services, and workflow solutions to meet the needs of researchers, authors, societies, and corporate customers.
Research provides scientific, technical, medical, and scholarly journals, as well as related content and services, to academic, corporate, and government libraries, learned societies, and individual researchers and other professionals. Journal publishing areas include the physical sciences and engineering, health sciences, social sciences and humanities, and life sciences. Research Publishing & Platforms also includes Atypon Systems, Inc.
Research provides scientific, technical, medical, and scholarly journals, as well as related content and services, to academic, corporate, and government libraries, learned societies, and individual researchers and other professionals. Journal publishing categories include the physical sciences and engineering, health sciences, social sciences and humanities, and life sciences. Research also includes Atypon Systems, Inc.
Through the Article Select and PayPerView programs, we provide fee-based access to nonsubscribed journal articles, content, book chapters, and major reference work articles. The Research Publishing business is also a provider of content and services in evidence-based medicine (EBM).
Through the Article Select and PayPerView programs, we provide fee-based access to non-subscribed journal articles, content, book chapters, and major reference work articles. The Research Publishing business is also a provider of content and services in evidence-based medicine (EBM).
Education Publishing Education Publishing generates the majority of its revenue from contracts with its customers in the following revenue streams : • Education Publishing • Digital Courseware • Test Preparation and Certification • Licensing and Other Education Publishing Education textbooks and related supplementary material and digital products are sold primarily to bookstores and online booksellers serving both for-profit and nonprofit educational institutions (primarily colleges and universities), and direct-to-students.
Academic Publishing Academic Publishing generates the majority of its revenue from contracts with its customers in the following revenue streams: • Print and Digital Publishing • Digital Courseware • Test Preparation and Certification • Licensing and Other 9 Index Print and Digital Publishing Education textbooks, related supplementary material, and digital products are sold primarily to bookstores and online retailers serving both for-profit and nonprofit educational institutions (primarily colleges and universities), and direct-to-students.
Wiley journals ranked #1 in 20 categories across 17 titles and achieved 219 top-10 category rankings. The annual JCR are one of the most widely used sources of citation metrics used to analyze the performance of peer-reviewed journals.
Wiley journals ranked #1 in 19 categories across 17 of its titles and achieved 270 top-10 category rankings. The annual JCR are one of the most widely used sources of citation metrics used to analyze the performance of peer-reviewed journals.
Digital books are delivered to intermediaries, including Amazon, Apple, Google, and Ingram/Vital-Source ® , for re-sale to individuals in various industry-standard formats, which are now the preferred deliverable for licensees of all types, including foreign language publishers. Digital books are also licensed to libraries through aggregators.
Digital books are delivered to intermediaries, including Amazon, Apple, and Google, for sale to individuals in various industry-standard formats. These are now the preferred deliverable for licensees of all types, including foreign language publishers. Digital books are also licensed to libraries through aggregators.
Talent Development Services sources, trains, and prepares aspiring students and professionals to meet the skill needs of today’s technology careers, and then places them with some of the world’s largest financial institutions, technology companies, and government agencies.
Wiley Edge sources, trains, and prepares aspiring students and professionals to meet the skill needs of today’s technology and banking services careers, and then places them with some of the world’s largest financial institutions, technology companies, and government agencies.
The growth of online booksellers benefits us because they provide unlimited virtual “shelf space” for our entire backlist. Publishing alliances and franchise products are important to our strategy. Education and STM publishing (including Test Preparation) alliance partners include the AICPA, the CFA Institute, ACT (American College Test), IEEE, American Institute of Chemical Engineers, and many others.
The growth of online booksellers benefits us because they provide unlimited virtual “shelf space” for our entire backlist. Publishing alliances and franchise products are important to our strategy. Education and STM publishing alliance partners include IEEE, American Institute of Chemical Engineers, and many others.
Content from digital books is also used to create online articles, mobile apps, newsletters, and promotional collateral. This continual reuse of content improves margins, speeds delivery, and helps satisfy a wide range of customer needs. Our online presence not only enables us to deliver content online, but also to sell more books.
Digital content is also used to create online articles, mobile apps, newsletters, and promotional collateral. Continually reusing content improves margins, speeds delivery, and helps satisfy a wide range of evolving customer needs. Our online presence not only enables us to deliver content online, but also to sell more books.
Wiley is a predominantly digital company with approximately 83% of revenue generated by digital products and tech-enabled services, and 58% of revenue is recurring which includes revenue that is contractually obligated or set to recur with a high degree of certainty for the year ended April 30, 2022.
Wiley is a predominantly digital company with approximately 85% of revenue generated by digital products and tech-enabled services. For the year ended April 30, 2023, approximately 57% of our revenue is recurring which includes revenue that is contractually obligated or set to recur with a high degree of certainty.
WileyPLUS improves student learning through instant feedback, personalized learning plans, and self-evaluation tools, as well as a full range of course-oriented activities, including online planning, presentations, study, homework, and testing. In selected courses, WileyPLUS includes a personalized adaptive learning component, Orion, which is based on cognitive science.
WileyPLUS improves student learning through instant feedback, personalized learning plans, and self-evaluation tools, as well as a full range of course-oriented activities, including online planning, presentations, study, homework, and testing. In selected courses, WileyPLUS includes a personalized adaptive learning component.
Talent Development Services also works with its clients to retrain and retain existing employees so they can continue to meet the changing demands of today’s technology landscape.
Wiley Edge also works with its clients to retrain and retain existing employees so they can continue to meet the changing demands of today’s technology landscape.
Literatum , our online publishing platform for societies and other research publishers, delivers integrated access to more than 10 million articles from approximately 2,800 journals, as well as 26,000 online books and hundreds of multivolume reference works, laboratory protocols and databases.
Atypon Platforms and Services Literatum , our online publishing platform for societies and other research publishers, delivers integrated access to more than 10 million articles from approximately 2,100 publishers and societies, as well as over 27,000 online books and hundreds of multivolume reference works, laboratory protocols and databases.
Approximately 95% of Research Publishing & Platforms’ revenue is generated by digital and online products, and services. 5 Index Research Publishing & Platforms revenue by product type includes Research Publishing and Research Platforms.
Approximately 95% of Research revenue is generated by digital and online products, and services. Research revenue by product type includes Research Publishing and Research Solutions.
Available Information Our Internet address is www.wiley.com .
Available Information Our investor site is investors.wiley.com. Our internet address is www.wiley.com .
Products include CPAExcel®, a modular, digital platform comprised of online self-study, videos, mobile apps, and sophisticated planning tools to help professionals prepare for the CPA exam, and test preparation products for the CFA®, CMA®, CIA®, CMT®, FRM®, FINRA®, Banking, and PMP® exams. Licensing and Other Licensing and distribution services are made available to other publishers under agency arrangements.
Products include CPAExcel®, a modular, digital platform comprised of online self-study, videos, mobile apps, and sophisticated planning tools to help professionals prepare for the CPA exam, and test preparation products for the GMAT™, ACT®, CFA®, CMA®, CIA®, CMT®, FRM®, FINRA®, Banking, and PMP® exams.
Through the Research Publishing & Platforms segment, we provide peer-reviewed scientific, technical, and medical (STM) publishing, content platforms, and related services to academic, corporate, and government customers, academic societies, and individual researchers. The Academic & Professional Learning segment provides Education Publishing and Professional Learning content and courseware, training, and learning services to students, professionals, and corporations.
Through the Research segment, we provide peer-reviewed scientific, technical, and medical (STM) publishing, content platforms, and related services to academic, corporate, and government customers, academic societies, and individual researchers.
Corporate Learning The corporate learning business offers online learning and training solutions for global corporations, universities, and small and medium-sized enterprises, which are sold on a subscription or fee basis.
We also offer online learning and training solutions for global corporations and small and medium-sized enterprises, which are sold on a subscription or fee basis.
To date, over 230,000 trees have been planted as a result. We are always seeking opportunities to improve environmental performance. We comply with environmental laws and regulations, thoughtfully investing resources toward managing environmental affairs and raising awareness of global environmental issues through education and research.
We are always seeking opportunities to improve environmental performance. We comply with environmental laws and regulations, thoughtfully investing resources toward managing environmental affairs and raising awareness of global environmental issues through education and research.
Talent Development Services On January 1, 2020, Wiley acquired mthree, a rapidly growing talent placement provider that addresses the IT skills gap by finding, training, and placing job-ready technology talent in roles with leading corporations worldwide. In late May 2022, Wiley renamed the mthree talent development solution to Wiley Edge.
Talent generated 98% of its revenue from digital and online products and services. On January 1, 2020, Wiley acquired mthree, a talent placement provider that addresses the IT skills gap by finding, training, and placing job-ready technology talent in roles with leading corporations worldwide. In late May 2022, Wiley renamed mthree as Wiley Edge.
Wiley’s performance in the 2020 release of Clarivate Analytics’ Journal Citation Reports (JCR) remains strong, maintaining its top 3 position in terms of the number of titles indexed, articles published, and citations received. Wiley has 10% of titles, 11% of articles, and 11% of citations. 6 Index A total of 1,281 Wiley journals were included in the reports.
Wiley’s performance in the 2021 release of Clarivate Analytics’ Journal Citation Reports (JCR) remains strong, maintaining its top 3 position in terms of citations received and sits in 4 th place for journals indexed and articles published. Wiley has 7% of titles, 8% of articles, and 11% of citations. A total of 1,540 Wiley journals were included in the reports.
STM books (Reference) are sold and distributed globally in digital and print formats through multiple channels, including research libraries and library consortia, independent subscription agents, direct sales to professional society members, bookstores, online booksellers, and other customers.
There are various channels to drive affordability for print and digital materials within the higher education market, including used, rental, and inclusive access. STM books (Reference) are sold and distributed globally in digital and print formats through multiple channels, including research libraries and library consortia, independent subscription agents, direct sales to professional society members, bookstores, online booksellers, and other customers.
Publishing centers include Australia, China, Germany, India, the UK, and the US. Research Publishing & Platforms’ revenue accounted for approximately 53% of our consolidated revenue in the year ended April 30, 2022, with a 35.1% Adjusted EBITDA margin.
Publishing centers include Australia, Germany, India, the UK, and the US. Academic accounted for approximately 34% of our consolidated revenue in the year ended April 30, 2023, with a 21.4% Adjusted EBITDA margin.
I n the year ended April 30, 2022, approximately 47% of our consolidated revenue was from outside the US. Wiley’s business strategies are tightly aligned with accelerating growth trends, including open research, career-connected education, and talent development.
In the year ended April 30, 2023, approximately 45% of our consolidated revenue was from outside the US. Wiley’s business strategies are tightly aligned with long term growth trends, including open research, career-connected education, and workforce optimization.
Communities served include business, finance, accounting, workplace learning, management, leadership, technology, behavioral health, engineering/architecture, science and medicine, and education. Products are developed for worldwide distribution through multiple channels, including chain and online booksellers, libraries, colleges and universities, corporations, direct to consumer, websites, distributor networks, and other online applications. Publishing centers include Australia, Germany, India, the UK, and the US.
Communities served include business, finance, accounting, management, leadership, computer science, data science, technology, behavioral health, engineering and architecture, mathematics, science and medicine, and education. Products are developed for worldwide distribution through multiple channels, including brick-and-mortar and online retailers, libraries, colleges and universities, corporations, direct-to-consumer, distributor networks, and through other channels.
Research Publishing Research Publishing generates the majority of its revenue from contracts with its customers in the following revenue streams: • Journal Subscriptions (“pay to read”), Open Access (“pay to publish”), and Transformational Models (“pay to read and publish”); and • Licensing, Reprints, Backfiles, and Other.
Research Publishing Research Publishing generates the majority of its revenue from contracts with its customers in the following revenue streams: • Journal Subscriptions (“pay to read”), Open Access (“pay to publish”), and Transformational Models (“pay to read and publish”); and • Licensing, Backfiles, and Other. 6 Index Journal Subscriptions, Open Access, and Transformational Model s As of April 30, 2023, we publish over 1,900 academic research journals.
(Atypon), a publishing software and service provider that enables scholarly and professional societies and publishers to deliver, host, enhance, market, and manage their content on the web through the Literatum ™ platform.
(Atypon), a publishing software and service provider that enables scholarly and professional societies and publishers to deliver, host, enhance, market, and manage their content on the web through the Literatum ™ platform. Research customers include academic, corporate, government, and public libraries, funders of research, researchers, scientists, clinicians, engineers and technologists, scholarly and professional societies, and students and professors.
Subscription revenue is generally collected in advance. Approximately 53% of Journal Subscription revenue is derived from publishing rights owned by Wiley. Publishing alliances also play a major role in Research Publishing’s success.
Contracts are negotiated by us directly with customers or their subscription agents. Subscription periods typically cover calendar years. Subscription revenue is generally collected in advance. Approximately 53% of Journal Subscription revenue is derived from publishing rights owned by Wiley. Long-term publishing alliances also play a major role in Research Publishing’s success.
Journal Subscriptions, Open Access, and Transformational Models As of April 30, 2022, we publish over 1,900 academic research journals. We sell journal subscriptions directly to thousands of Research institutions worldwide through our sales representatives, indirectly through independent subscription agents, through promotional campaigns, and through memberships in professional societies for those journals that are sponsored by societies.
We sell journal subscriptions directly to thousands of research institutions worldwide through our sales representatives, indirectly through independent subscription agents, through promotional campaigns, and through memberships in professional societies for those journals that are sponsored by societies. Journal subscriptions are primarily licensed through contracts for digital content available online through our Wiley Online Library platform.
Royalty advances are reviewed for recoverability and a reserve for loss is maintained, if appropriate. 8 Index We continue to add new titles, revise existing titles, and discontinue the sale of others in the normal course of our business, and we also create adaptations of original content for specific markets based on customer demand.
We may make advance royalty payments against future royalties to authors of certain publications. Royalty advances are reviewed for recoverability and a reserve for loss is maintained, if appropriate. We continue to add new titles, revise existing titles, and discontinue the sale of others in the normal course of our business.
Business Segments We report financial information for the following segments, as w ell as a Corporate category, which includes certain costs that are not allocated to the reportable segments: • Research Publishing & Platforms • Academic & Professional Learning • Education Services Research Publishing & Platforms: Research Publishing & Platforms’ mission is to support researchers, professionals and learners in the discovery and use of research knowledge to help them achieve their goals.
Education strategies include expanding online degree programs and driving online enrollment for university partners, scaling digital content and courseware, and expanding IT talent placement and reskilling programs for corporate partners. 5 Index Business Segments We report financial information for the following reportable segments, as well as a Corporate expense category, which includes certain costs that are not allocated to the reportable segments: • Research • Academic • Talent Research: Research’s mission is to support researchers, professionals and learners in the discovery and use of research knowledge to help them achieve their goals.
We also engage in co-publishing titles with international publishers and receive licensing revenue from photocopies, reproductions, translations, and digital uses of our content and use of the Knewton® adaptive engine.
Licensing and Other Licensing and distribution services are made available to other publishers under agency arrangements. We also engage in co-publishing titles with international publishers and receive licensing revenue from photocopies, reproductions, translations, and digital uses of our content and use of the Knewton® adaptive engine. Wiley also realizes advertising revenue from branded websites (e.g., Dummies.com) and online applications.
Research strategies include driving publishing output to meet the global demand for peer-reviewed research and expanding platform and service offerings for corporations and societies. Education strategies include expanding online degree programs and driving online enrollment for university partners, scaling digital content and courseware, and expanding IT talent placement and reskilling programs for corporate partners.
Research strategies include driving publishing output to meet the global demand for peer-reviewed research and expanding platform and service offerings for corporations and societies.
We employ sales representatives who call upon independent bookstores, national and regional chain bookstores, and wholesalers. Sales of professional books also result from direct mail campaigns, telemarketing, online access, advertising, and reviews in periodicals. We also promote active and growing custom professional and education publishing programs.
We employ sales representatives who call upon independent bookstores, national and regional chain bookstores, wholesalers, and corporations globally. Sales of professional books also result from direct marketing outreach, conferences, and other industry-relevant outreach. We also promote active and growing custom professional and education publishing programs. Professional organizations use our custom professional publications for marketing outreach.
Most materials are originated by the authors themselves or as the result of suggestion or solicitations by editors and advisors. We enter into agreements with authors that state the terms and conditions under which the materials will be published, the name in which the copyright will be registered, the basis for any royalties, and other matters.
We enter into agreements with authors that state the terms and conditions under which the materials will be published, the name in which the copyright will be registered, the basis for any royalties, and other matters. Author compensation models include royalties, which vary depending on the nature of the product and work-for-hire.
Academic & Professional Learning: Our Academic & Professional Learning segment provides Education Publishing and Professional Learning products and services, including scientific, professional, and education print and digital books, digital courseware, and test preparation services, to libraries, corporations, students, professionals, and researchers, as well as learning, development, and assessment services for businesses and professionals.
Academic: Our Academic segment includes Academic Publishing and University Services, whose products and services include scientific, professional, and education print and digital books, and digital courseware to support libraries, corporations, students, professionals, and researchers, as well as online program management or OPM services for higher education institutions.
Research Publishing & Platforms customers include academic, corporate, government, and public libraries, funders of research, researchers, scientists, clinicians, engineers and technologists, scholarly and professional societies, and students and professors. Research Publishing & Platforms products are sold and distributed globally through multiple channels, including research libraries and library consortia, independent subscription agents, direct sales to professional society members, and other customers.
Research products are sold and distributed globally through multiple channels, including research libraries and library consortia, independent subscription agents, direct sales to professional society members, and other customers. Publishing centers include Australia, China, Germany, India, the UK, and the US.
Our general practice is to revise our textbooks approximately every three years, if warranted, and to revise other titles as appropriate. Subscription-based products are updated on a more frequent basis. We generally contract with independent printers and binderies globally for their services.
We also create adaptations of original content for specific markets based on customer demand. Our general practice is to revise our textbooks every 3-5 years, as warranted, and to revise other titles as appropriate. Subscription-based products are updated on a more frequent basis.
As a member of the CEO Action for Diversity and Inclusion, Wiley demonstrates its commitment to sustained, concrete actions that advance diversity and inclusive thinking, behavior, and business practices in the workplace. We also proudly received a 100% score from the Human Rights Foundation for LGBTQ workplace equality.
As a member of the CEO Action for Diversity and Inclusion, Wiley demonstrates its commitment to sustained, concrete actions that advance diversity and inclusive thinking, behavior, and business practices in the workplace. Careers & Engagement Investment in colleague development and growth for current and future roles is central to our culture.
Large portions of the content are provided free or at nominal cost to nations in the developing world through partnerships with certain nonprofit organizations. Our online publishing platforms provide revenue growth opportunities through new applications and business models, online advertising, deeper market penetration, and individual sales and pay-per-view options.
Our online publishing platforms provide revenue growth opportunities through new applications and business models, online advertising, deeper market penetration, and individual sales and pay-per-view options.
More specific are customized For Dummies publications, which leverage the power of this well-known brand to meet the specific information needs of a wide range of organizations around the world. Licensing and Other Licensing and distribution services are made available to other publishers under agency arrangements.
This outreach includes customized digital and print books written for a specific customer and includes custom cover art, such as imprints, messages, and slogans. More specific are customized For Dummies ® publications, which leverage the power of this well-known brand to meet the specific information needs of a wide range of organizations around the world.
The graphs below present revenue by product type for the years ended April 30, 2022, and 2021: Key strategies for the Academic & Professional Learning business include developing and acquiring products and services to drive career-connected education, developing leading brands and franchises, executing strategic acquisitions and partnerships, and innovating digital content and courseware formats while expanding their global discoverability and distribution.
The graphs below present revenue by product type for the years ended April 30, 2023 and 2022: 2023 2022 Key strategies for the Academic business include developing high-impact, career-aligned courseware, products, brands, franchises, and solutions to meet the evolving needs of global learners and university partners while expanding global discoverability and distribution.
In July 2021, we completed our inaugural Carbon Disclosure Project (CDP) Forests disclosure and plan to expand our disclosures in the coming years. In a program entitled Go Green, we partnered with Trees for the Future to plant a tree for every copy of a journal we actively stop printing, up to one million trees.
We continually evaluate climate and environmental reporting and plan to expand our disclosures in the coming years. Our partnership with Trees for the Future continues. We plant a tree for every copy of a journal we actively stop printing, up to one million trees, resulting in more than 600,000 trees to date.
We continue to implement strategies to manage declines in print revenue through cost improvement initiatives and focusing our efforts on growing our digital lines of business. Book sales for Education Publishing and Professional Learning are generally made on a returnable basis with certain restrictions.
We continue to implement strategies to efficiently and effectively manage print revenue declines while driving growth in our digital lines of business. Book sales for Academic Publishing are generally made on a returnable basis with certain restrictions. We provide for estimated future returns on sales made during the year based on historical return experience and current market trends.
Test Preparation and Certification The Test Preparation and Certification business represents learning solutions, training activities, and print and digital formats that are delivered to customers directly through online digital delivery platforms, bookstores, online booksellers, and other customers.
The zyBooks platform will become an essential component of Wiley’s differentiated digital learning experience and, when combined with alta’s adaptive learning technology and WileyPLUS, powers high-impact education across Wiley’s Academic segment. 10 Index Test Preparation and Certification The Test Preparation and Certification business represents learning solutions, training activities, and print and digital formats that are delivered to customers directly through online digital delivery platforms, bookstores, online booksellers, and other customers.
Professional Learning Professional Learning generates the majority of its revenue from contracts with its customers in the following revenue streams : • Professional Publishing • Licensing and Other • Corporate Training • Corporate Learning Professional Publishing Professional books, which include business and finance, technology, and other professional categories, as well as the For Dummies® brand, are sold to bookstores and online booksellers serving the general public, wholesalers who supply such bookstores, warehouse clubs, college bookstores, individual practitioners, industrial organizations, and government agencies.
Professional books, which include business and finance, technology, professional development for educators, and other professional categories, as well as the For Dummies ® brand, are sold to brick-and-mortar and online retailers, wholesalers who supply such bookstores, college bookstores, individual practitioners, corporations, and government agencies.
Wiley also realizes advertising revenue from branded websites (e.g., Dummies.com) and online applications. 10 Index Corporate Training Our corporate training businesses include high-demand soft-skills training solutions that are delivered to organizational clients through online digital delivery platforms, either directly or through an authorized distributor network of independent consultants, trainers, and coaches.
In fiscal year 2023, Wiley Edge signed 15 new corporate clients and expanded into new industry verticals beyond financial services, such as technology and consumer goods. 11 Index Our assessments (corporate training) offerings include high-demand soft-skills training solutions that are delivered to organizational clients through online digital delivery platforms, either directly or through an authorized distributor network of independent consultants, trainers, and coaches.
We also engage with international publishers and receive licensing revenue from reproductions, translations, and other digital uses of our content. Journal and article reprints are primarily used by pharmaceutical companies and other industries for marketing and promotional purposes.
Journal and article reprints are primarily used by pharmaceutical companies and other industries for marketing and promotional purposes.
We generate advertising revenue from print and online journal subscription products, our online publishing platform, Literatum, online events such as webinars and virtual conferences, community interest websites such as s pectroscopyNOW.com, and other websites. A backfile license provides access to a historical collection of Wiley journals, generally for a one-time fee.
EJP is a technology platform company with an established journal submission and peer-review management system. We generate advertising revenue from print and online journal subscription and controlled circulation products, our online publishing platform, Literatum, online events such as webinars and virtual conferences, community interest websites such as analyticalscience.wiley.com, and other websites.
Approximately 47% of Journal Subscription revenue is derived from publication rights that are owned by professional societies and published by us pursuant to long-term contracts or owned jointly with professional societies . These society alliances bring mutual benefit: The societies gain Wiley’s publishing, marketing, sales, and distribution expertise, while Wiley benefits from being affiliated with prestigious societies and their members.
Approximately 47% of Journal Subscriptions revenue is derived from publication rights that are owned by professional societies and other publishing partners such as charitable organizations or research institutions, and are published by us pursuant to long-term contracts or owned jointly with such entities .
Wiley Online Library, which is delivered through our Literatum platform, provides the user with intuitive navigation, enhanced discoverability, expanded functionality, and a range of personalization options. Access to abstracts is free and full content is accessible through licensing agreements or as individual article purchases.
We publish the journals of many prestigious societies, including the American Cancer Society, the American Heart Association, the American Anthropological Association, the American Geophysical Union, and the German Chemical Society. Wiley Online Library, which is delivered through our Literatum platform, provides the user with intuitive navigation, enhanced discoverability, expanded functionality, and a range of personalization options.
On October 1, 2021, we completed the acquisition of certain assets of J&J Editorial Services, LLC. (J&J). J&J is a publishing services company providing expert offerings in editorial operations, production, copyediting, system support and consulting. The results of these acquisitions have been included in Research Platforms.
In addition, it also includes product and service offerings related to recent acquisitions such as J&J Editorial Services, LLC. (J&J) on October 1, 2021, and the e JournalPress business (EJP) on November 30, 2021. J&J is a publishing services company providing expert offerings in editorial operations, production, copyediting, system support and consulting.
These activators reflect our DEI near-term priorities to propel a sustainable, inclusive organization that embodies diversity, and equity throughout our policies, programs and processes, and fosters an inclusive culture where people feel like they can be themselves. Our Employee Resource Groups help drive our DEI priorities through learning opportunities and Wiley community events.
These pillars reflect our DEI near-term priorities to propel a sustainable, inclusive organization that embodies diversity and equity throughout our policies, programs, and processes, and fosters an inclusive culture that celebrates the unique contributions of our colleagues and supports human connectivity.
In fiscal year 2016, we entered into an agreement to outsource our US-based book distribution operations to Cengage Learning, with the continued aim of improving efficiency in our distribution activities and moving to a more variable cost model. As of April 30, 2022, we had one global warehousing and distribution facility remaining, which is in the UK.
We generally contract independent printers and binderies globally for their services, using a variety of suppliers and materials to support our range of needs. We have an agreement to outsource our US-based book distribution operations to Cengage Learning, with the continued aim of improving efficiency in our distribution activities and moving to a more variable cost model.
Societies that sponsor or own such journals generally receive a royalty and/or other financial consideration. We may procure editorial services from such societies on a prenegotiated fee basis. We also enter into agreements with outside independent editors of journals that define their editorial duties and the fees and expenses for their services.
These alliances bring mutual benefit: The partners gain Wiley’s publishing, marketing, sales, and distribution expertise, while Wiley benefits from being affiliated with prestigious organizations and their members. Societies that sponsor or own such journals generally receive a royalty and/or other financial consideration. We may procure editorial services from such societies on a prenegotiated fee basis.
Our human capital management framework includes programs, policies and initiatives that promote diversity, equity and inclusion; talent acquisition; ongoing employee learning and development; competitive compensation and benefits; safety and health; and emphasis on employee satisfaction and engagement. Wiley’s Board of Directors, through its Executive Compensation and Development Committee, has oversight for human capital management.
This includes programs, policies, and initiatives that promote diversity, equity, and inclusion (DEI); talent acquisition; ongoing employee learning and development; competitive compensation and benefits; health and well-being; and emphasis on employee satisfaction and engagement. Our culture differentiates us as an organization and our core values define how we work together.
We also engage in co-publishing titles with international publishers and receive licensing revenue from photocopies, reproductions, translations, and digital uses of our content.
Licensing, Backfiles, and Other Licensing, Backfiles, and Other includes backfile sales, the licensing of publishing rights, and individual article sales. A backfile license provides access to a historical collection of Wiley journals, generally for a one-time fee. We also engage with international publishers and receive licensing revenue from reproductions, translations, and other digital uses of our content.
These digital learning solutions are either sold directly to corporate customers or through our global partners’ network. Education Services: Our Education Services segment consists of University Services OPM services for higher education institutions and talent development for professionals and businesses.
In addition, learning experiences, content, and LMS offerings are continuously refreshed and expanded to serve a wider variety of customer needs. These digital learning solutions are either sold directly to corporate customers or through our global partners’ network.
Most of our global office real estate is leased and, whenever possible, we work with property owners to optimize sustainability. We also work with publishing partners, where possible, to reduce print production and consumption, reduce excess inventory through print-on-demand and encourage digital consumption of our products. We updated our Paper Selection and Use Policy which supports high environmental standards.
We also work with publishing partners, where possible, to reduce print production and consumption, reduce excess inventory through print-on-demand, and encourage digital consumption of our products. We begun implementing measures to ensure our subcontractors who assist us in providing material aspects of the products and services are held to the same high standards as we hold ourselves.
The successful acceleration of our strategies and the delivery of innovative impact in research and education depend on our ability to attract, develop, reward and retain a diverse population of talented, qualified and highly skilled colleagues.
Our success depends on our ability to develop, attract, reward, and retain a diverse population of talented, qualified, and highly skilled colleagues at all levels of our organization and across our global workforce so that they can deliver on our promise to our customers to clear the way to their successes.
We believe environmental responsibility and business objectives are fundamentally connected and essential to our operations. This is why we are acting now to limit our impact on the environment—measuring our carbon emissions and advancing sustainability initiatives. Our commitment is also evidenced by our signing onto the Publishing Declares Climate Action pledge.
We believe environmental responsibility and business objectives are fundamentally connected and essential to our operations. This is why we are acting now to protect the environment by making informed choices and limiting our impact on natural resources. For the fourth consecutive year, we are a CarbonNeutral® certified company across our global operations, in accordance with the CarbonNeutral Protocol.
University Services includes market research, marketing, student recruitment, enrollment support, proactive retention support, academic services to design courses, faculty support, and access to the Engage Learning Management System, which facilitates the online education experience. Graduate degree programs include Business Administration, Finance, Accounting, Healthcare, Engineering, Communications, and others.
University Services provides institutions with a bespoke suite of services that each institution has determined it needs to serve students, including market research, marketing and recruitment, program development, online platform technology, student retention support, instructional design, faculty development and support, and access to the Engage Learning Management System, which facilitates the online education experience.
We conduct our Talent Review annually, focusing on high performing and high potential talent, diversity, and succession for our most critical roles. We are committed to identifying, growing, and retaining top talent and ensuring we have the right skills for the future.
We introduced Achievers, our recognition platform that was designed so our colleagues can recognize each other to create a culture of recognition and celebrate success. We conduct our Talent Review annually, focusing on high-performing and high-potential talent, diversity, and succession for our most critical roles.
Orion helps to build student proficiency on topics while improving the effectiveness of their study time. It assists educators in identifying areas that need reinforcement and measures student engagement and proficiency throughout the course. The highly interactive zyBooks platform enables learners to learn by doing while allowing professors to be more efficient and devote more time to teaching.
The highly interactive zyBooks platform enables learners to learn by doing while allowing professors to be more efficient and devote more time to teaching. The platform maximizes learner engagement and retention through demonstration and hands-on learning experiences using interactive question sets, animations, tools, and embedded labs.
We support our colleagues in maintaining their physical, emotional, social, and financial well-being through working practices, education and benefit programs. This became even more critical at the onset of the COVID-19 pandemic, when we acted quickly and with purpose to protect and support our colleagues.
Health & Well-Being Safeguarding and promoting colleague well-being is central to what we do, as it is critical we provide tools and resources to help colleagues be healthy, and an environment that allows us to be at our best. We support our colleagues in maintaining their physical, emotional, social, and financial well-being through working practices, education, and benefit programs.
Contributors of articles to our journal portfolio transfer publication rights to us or a professional society, as applicable. We publish the journals of many prestigious societies, including the American Cancer Society, the American Heart Association, the European Molecular Biology Organization, the American Anthropological Association, the American Geophysical Union, and the German Chemical Society.
We also enter into agreements with outside independent editors of journals that define their editorial duties and the fees and expenses for their services. Contributors of articles to our journal portfolio transfer publication rights to us or a professional society, as applicable.
Human Capital As of April 30, 2022, we employed approximately 9,500 persons (including 1,800 Wiley Edge) on a full-time equivalent basis worldwide. At Wiley, our people are one of our most significant assets and investments toward achieving our mission to unlock human potential.
Learning will include reporting lines of Academic (education publishing) and Professional (professional publishing and assessments). Human Capital As of April 30, 2023, we employed approximately 8,800 colleagues, including 1,800 placement candidates in the Wiley Edge product offering, on a full-time equivalent basis worldwide.
We provide for estimated future returns on sales made during the year based on historical return experience and current market trends. Materials for book publications are obtained from authors throughout most of the world, utilizing the efforts of an editorial staff, outside editorial advisors, and advisory boards.
Materials for book publications are obtained from authors throughout most of the world, utilizing the efforts of a best-in-class internal editorial staff, external editorial support, and advisory boards. Most materials originate by the authors themselves or as the result of suggestions or solicitations by editors.
Leveraging Wiley’s CrossKnowledge platform, we offer interactive development programs which allow colleagues to share lessons learned, best practices and have interactive opportunities with their peers. We also focus on higher-ed programs and certifications with our Wiley Beyond platform, which offers access to university programs as well as technical and industry-recognized certification programs.
We offer interactive development programs that allow our colleagues to share lessons learned, adopt best practices, and have interactive opportunities with their peers. Through our Champion Your Career program, our colleagues get practical advice on updating their resumes and honing their interviewing skills, and have career conversations with our Talent team.
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The Education Services segment provides University Services, including online program management (OPM) services for academic institutions, and Talent Development Services, including placement and training for professionals and businesses. Our operations are primarily located in the United States (US), United Kingdom (UK), India, Sri Lanka, and Germany.
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We have reorganized our Education lines of business into two new customer-centric segments. The Academic segment addresses the university customer group and includes Academic Publishing and University Services. The Talent segment addresses the corporate customer group and is focused on delivering training, sourcing, and upskilling solutions. Prior period segment results have been revised to the new segment presentation.
Removed
Journal subscriptions are primarily licensed through contracts for digital content available online through our Wiley Online Library platform. Contracts are negotiated by us directly with customers or their subscription agents. Subscription periods typically cover calendar years. Print journals are generally mailed to subscribers directly from independent printers. We do not own or manage printing facilities.
Added
There were no changes to our consolidated financial results.
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Licensing, Reprints, Backfiles, and Other Licensing, Reprints, Backfiles, and Other includes advertising, backfile sales, the licensing of publishing rights, journal and article reprints, and individual article sales.
Added
Our new segment reporting structure consists of three reportable segments, as well as a Corporate expense category (no change), which includes certain costs that are not allocated to the reportable segments: • Research includes Research Publishing and Research Solutions, and no changes were made as a result of this realignment; • Academic includes the Academic Publishing and University Services lines.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThe publishing community generally takes the view that this period should be sufficient to protect subscription revenues, provided that publishers’ platforms offer sufficient added value to the article. Governments in Europe have been more supportive of the Gold model, which thus far is generating incremental revenue for publishers with active open access programs.
Biggest changeGovernments in Europe have been more supportive of the Gold model, which thus far is generating incremental revenue for publishers with active open access programs. Many institutions have signed on to the business model which combines the purchasing of subscription content with the purchase of open access publishing for affiliated authors.
However, there can be no assurance that our liquidity or our consolidated financial position and results of operations will not be adversely affected by possible future changes in global financial markets and global economic conditions. Unprecedented market conditions including illiquid credit markets, volatile equity markets, dramatic fluctuations in foreign currency rates, and economic recession, could affect future results.
However, there can be no assurance that our liquidity or our consolidated financial position and results of operations will not be adversely affected by possible future changes in global financial markets and global economic conditions. Unprecedented market conditions including illiquid credit markets, volatile equity markets, dramatic fluctuations in foreign currency and interest rates, and economic recession, could affect future results.
We are also subject to potential taxes and regulations in jurisdictions where we have sales even though we do not have a physical presence. These taxes and potential taxes could have a material impact on our consolidated financial position and results of operations as substantially all our taxable income is earned outside the US.
We are also subject to potential taxes in jurisdictions where we have sales even though we do not have a physical presence. These potential taxes could have a material impact on our consolidated financial position and results of operations as substantially all our taxable income is earned outside the US.
We have certain technology development operations in Russia and Sri Lanka related to software development and architecture, digital content production, and system testing services. Due to the political instability within these regions, there is the potential for future government embargos and sanctions, which could disrupt our operations in these areas.
We have certain technology development operations in Sri Lanka, and previously in Russia, related to software development and architecture, digital content production, and system testing services. Due to the political instability within these regions, there is the potential for future government embargos and sanctions, which could disrupt our operations in these areas.
Our security controls help to secure our information systems, including our computer systems, intranet, proprietary websites, email and other telecommunications and data networks, and we scrutinize the security of outsourced website and service providers prior to retaining their services.
Our security controls help to secure our information systems, including our computer systems, intranet, proprietary websites, email and other telecommunications and data networks, and we scrutinize the security of outsourced website(s) and service providers prior to retaining their services.
While we have taken steps to address these risks, there can be no assurance that a system failure, disruption, or data security breach would not adversely affect our business and could have an adverse impact on our consolidated financial position and results of operations. We are continually improving and upgrading our computer systems and software.
While we have taken steps to address these risks, there can be no assurance that a system failure, disruption, or data security breach would not adversely affect our business and could have an adverse impact on our consolidated financial position and results of operations. 17 Index We are continually improving and upgrading our computer systems and software.
We have a significant investment in our employees around the world. We offer competitive salaries and benefits in order to attract and retain the highly skilled workforce needed to sustain and develop new products and services required for growth. Employment costs are affected by competitive market conditions for qualified individuals and factors such as healthcare and retirement benefit costs.
We have a significant investment in our colleagues around the world. We offer competitive salaries and benefits in order to attract and retain the highly skilled workforce needed to sustain and develop new products and services required for growth. Employment costs are affected by competitive market conditions for qualified individuals and factors such as healthcare and retirement benefit costs.
Although at fiscal year-end we had minimal credit risk exposure to these agents, future calendar year subscription receipts from these agents are highly dependent on their financial condition and liquidity. 19 Index Subscription agents account for approximately 15% of total annual consolidated revenue and no one agent accounts for more than 10% of total annual consolidated revenue.
Although at fiscal year-end we had minimal credit risk exposure to these agents, future calendar year subscription receipts from these agents are highly dependent on their financial condition and liquidity. Subscription agents account for approximately 15% of total annual consolidated revenue and no one agent accounts for more than 10% of total annual consolidated revenue.
The loss of the services of key personnel for any reason and our inability to replace them with suitable candidates quickly or at all, as well as any negative market perception resulting from such loss, could have a material adverse effect on our business, consolidated financial position, and results of operations.
The loss of the services of key talent for any reason and our inability to replace them with suitable candidates quickly or at all, as well as any negative market perception resulting from such loss, could have a material adverse effect on our business, consolidated financial position, and results of operations.
This may require us to incur substantial additional professional fees and internal costs to further expand our accounting and finance functions and expend significant management efforts. 22 Index We may in the future discover material weaknesses in our system of internal financial and accounting controls and procedures that could result in a material misstatement of our financial statements.
This may require us to incur substantial additional professional fees and internal costs to further expand our accounting and finance functions and expend significant management efforts. We may in the future discover material weaknesses in our system of internal financial and accounting controls and procedures that could result in a material misstatement of our financial statements.
While we have developed business continuity plans to address these issues, further adverse developments in the region could have a material impact on our consolidated financial position and results of operations. In February 2022, the Russian Federation and Belarus commenced a military action with Ukraine.
While we have developed business continuity plans to address these issues, further adverse developments in the region could have a material impact on our consolidated financial position and results of operations. 19 Index In February 2022, the Russian Federation and Belarus commenced a military action with Ukraine.
Open access can be achieved in two ways: Green, which enables authors to publish articles in subscription-based journals and self–archive the author accepted version of the article for free public use after an embargo period; and Gold, which enables authors to publish their articles in journals that provide immediate free access to the final version of the article on the publisher’s website, and elsewhere under permissive licensing terms, following payment of an APC.
Open access can be achieved in two ways: Green, which enables authors to publish articles in subscription-based journals and self–archive the author accepted version of the article for free public use after any embargo period; and Gold, which enables authors to publish their articles in journals that provide immediate free access to the final version of the article on the publisher’s website, and elsewhere under permissive licensing terms, following payment or waiver of an APC.
For instance, certain governments and privately held funding bodies have implemented mandates that require journal articles derived from government-funded research to be made available to the public at no cost after an embargo period.
For instance, certain governments and privately held funding bodies have implemented mandates that require journal articles derived from government-funded research to be made available to the public at no cost immediately or after an embargo period.
The scientific research publishing industry generates much of its revenue from paid customer subscriptions to online and print journal content. There is debate within government, academic, and library communities whether such journal content should be made available for free immediately or following a period of embargo after publication, referred to as open access.
The scientific research publishing industry generates much of its revenue from paid customer subscriptions to online and print journal content. There is interest within government, academic, and library communities for such journal content to be made available for free immediately or following a period of embargo after publication, referred to as open access.
Reductions in expected levels of enrollment at colleges and universities both within and outside the US could adversely affect demand for our higher education offerings, which could adversely impact our consolidated financial position and results of operations. If we are unable to retain key employees and other personnel, our consolidated financial condition or results of operations may be adversely affected.
Reductions in expected levels of enrollment at colleges and universities both within and outside the US could adversely affect demand for our higher education offerings, which could adversely impact our consolidated financial position and results of operations. If we are unable to retain key talent and other colleagues, our consolidated financial condition or results of operations may be adversely affected.
We are highly dependent on the continued services of key employees who have in-depth market and business knowledge and/or key relationships with business partners.
We are highly dependent on the continued services of key talent who have in-depth market and business knowledge and/or key relationships with business partners.
In addition, GDPR imposes a strict data protection compliance regime with severe penalties of up to 4% of worldwide revenue or €20 million, whichever is greater. I f we fail to maintain proper and effective internal controls, our ability to produce accurate financial statements on a timely basis could be impaired.
In addition, GDPR imposes a strict data protection compliance regime with severe penalties of up to 4% of worldwide revenue or €20 million, whichever is greater. 23 Index If we fail to maintain proper and effective internal controls, our ability to produce accurate financial statements on a timely basis could be impaired.
Intangible assets with definite lives, which were $813.1 million at April 30, 2022 , are tested for impairment only when events or changes in circumstances indicate that an impairment may have occurred. Determining whether an impairment exists can be difficult as a result of increased uncertainty and current market dynamics and requires management to make significant estimates and judgments.
Intangible assets with definite lives, which were $732.9 million at April 30, 2023, are tested for impairment only when events or changes in circumstances indicate that an impairment may have occurred. Determining whether an impairment exists can be difficult as a result of increased uncertainty and current market dynamics and requires management to make significant estimates and judgments.
In addition, we are subject to audit by tax authorities and are regularly audited by various tax authorities. Although we believe our tax estimates are reasonable, the final determination of tax audits could be materially different from our historical income tax provisions and accruals and could have a material impact on our consolidated financial position and results of operations.
In addition, we are subject to examination by tax authorities and although we believe our tax estimates are reasonable, the final determination of tax audits could be materially different from our historical income tax provisions and accruals and could have a material impact on our consolidated financial position and results of operations.
See Note 11, “ Goodwill and Intangible Assets” for further information related to goodwill and intangible assets, and the impairment charges recorded in the year ended April 30, 2020. 20 Index Changes in pension costs and related funding requirements may impact our consolidated financial position and results of operations. We provide defined benefit pension plans for certain employees worldwide.
See Note 11, “Goodwill and Intangible Assets” for further information related to goodwill and intangible assets, and the impairment charges recorded in the year ended April 30, 2023. 21 Index Changes in pension costs and related funding requirements may impact our consolidated financial position and results of operations. We provide defined benefit pension plans for certain employees worldwide.
The percentage of consolidated revenue for the year ended April 30, 2022 recognized in the following currencies (on an equivalent US dollar basis) were approximately: 56% US dollar, 25% British pound sterling, 10% euro, and 9% other currencies. In addition, our interest-bearing loans and borrowings are subject to risk from changes in interest rates.
The percentage of consolidated revenue for the year ended April 30, 2023 recognized in the following currencies (on an equivalent US dollar basis) were approximately: 57% US dollar, 24% British pound sterling, 10% euro, and 9% other currencies. In addition, our interest-bearing loans and borrowings are subject to risk from changes in interest rates.
The Company and industry are highly dependent on the loyal engagement of key management leaders and professional staff. Loss of staff due to inadequate skills and career path development or maintaining competitive salaries and benefits could have a significant impact on Company performance.
The Company and industry are highly dependent on the loyal engagement of key leaders and colleagues. Loss of talent due to inadequate skills and career path development or maintaining competitive salaries and benefits could have a significant impact on Company performance.
Changes in laws, tariffs, and regulations, including regulations related to open access, could adversely impact our consolidated financial position and results of operations. We maintain operations in Asia, Australia, Canada, Euro pe, South America, the Middle East, and the US.
Legal, Regulatory, and Compliance Risks Changes in laws, tariffs, and regulations, including regulations related to open access, could adversely impact our consolidated financial position and results of operations. We maintain operations in Asia, Australia, Canada, Europe, South America, the Middle East, and the US.
Notwithstanding our efforts to foresee and mitigate the effects of changes in external market or fiscal circumstances, we cannot predict with certainty changes in foreign currency exchange rates and interest rates, inflation, or other related factors affecting our business, consolidated financial position, and results of operations .
We may, from time to time, use derivative instruments to hedge such risks. Notwithstanding our efforts to foresee and mitigate the effects of changes in external market or fiscal circumstances, we cannot predict with certainty changes in foreign currency exchange rates and interest rates, inflation, or other related factors affecting our business, consolidated financial position, and results of operations .
We currently use out of support systems for order management for certain businesses. While we have contingency support available, any major disruptions, while unlikely, may require longer remediation time. This could impact our ability to process and fulfill orders for those businesses.
We currently use out of support systems for order management for certain businesses. While we have contingency support available, any major disruptions, while unlikely, may require longer remediation time. This could impact our ability to process and fulfill orders for those businesses. We currently use a legacy platform with limited support for order management of the global Academic business.
Challenges and uncertainties associated with operating in developing markets has a higher risk due to political instability, economic volatility, crime, terrorism, corruption, social and ethnic unrest, and other factors, which may adversely impact our consolidated financial position and results of operations. We sell our products to customers in certain sanctioned and previously sanctioned developing markets in accordance with such restrictions.
Challenges and uncertainties associated with operating in certain global markets has a higher risk due to political instability, economic volatility, crime, terrorism, corruption, social and ethnic unrest, and other factors, which may adversely impact our consolidated financial position and results of operations.
Although no book customer accounts for more than 8% of total consolidated revenue and 10% of accounts receivable at April 30, 2022, the top 10 book customers account for approximately 12% of total consolidated revenue and approximately 18% of accounts receivable at April 30, 2022.
Although no book customer accounts for more than 6% of total consolidated revenue and 10% of accounts receivable at April 30, 2023, the top 10 book customers account for approximately 10% of total consolidated revenue and approximately 20% of accounts receivable at April 30, 2023.
While sales in these markets are not material to our consolidated financial position and results of operations, adverse developments related to the risks associated with these markets may cause actual results to differ from historical and forecasted future consolidated operating results.
We sell our products to customers in certain sanctioned and previously sanctioned developing markets in accordance with such restrictions. While sales in these markets are not material to our consolidated financial position and results of operations, adverse developments related to the risks associated with these markets may cause actual results to differ from historical and forecasted future consolidated operating results.
At April 30, 2022 , we had $1,302.1 million of goodwill and $931.4 million of intangible assets, of which $118.3 million are indefinite-lived intangible assets, on our Consolidated Statements of Financial Position. The intangible assets are principally composed of content and publishing rights, customer relationships, brands and trademarks, and developed technology.
At April 30, 2023, we had $1,204.1 million of goodwill and $854.8 million of intangible assets, of which $121.9 million are indefinite-lived intangible assets, on our Consolidated Statements of Financial Position. The intangible assets are principally composed of content and publishing rights, customer relationships, brands and trademarks, and developed technology.
Adverse publicity, whether valid or not, may reduce demand for our publications and adversely affect our consolidated financial position and results of operations.
Adverse publicity, whether valid or not, may reduce demand for our publications and adversely affect our consolidated financial position and results of operations. Item 1B. Unresolved Staff Comments None. 25 Index
Additional Brexit-related impacts on our business could include potential inventory shortages in the UK, increased regulatory burdens and costs to comply with UK-specific regulations, and higher transportation costs for our products coming into and out of the UK. Any of these effects, among others, could materially and adversely affect our business and consolidated financial position and results of operations.
Additional Brexit-related impacts on our business could include potential inventory shortages in the UK, increased regulatory burdens and costs to comply with UK-specific regulations, and higher transportation costs for our products coming into and out of the UK.
If we are unable to introduce new technologies, products, and services, our ability to be profitable may be adversely affected. We may be susceptible to information technology risks that may adversely impact our business, consolidated financial position and results of operations. Information technology is a key part of our business strategy and operations.
We may be susceptible to information technology risks that may adversely impact our business, consolidated financial position and results of operations. Information technology is a key part of our business strategy and operations.
As a result of the COVID-19 pandemic, most of our employees are working remotely, which magnifies the importance of the integrity of our remote access security measures.
As a result of the COVID-19 pandemic, most of our employees continue to work remotely, at least some of the time, which magnifies the importance of the integrity of our remote access security measures.
The security compliance landscape continues to evolve, requiring us to stay apprised of changes in cybersecurity and privacy laws, regulations, and security standards required by our clients, such as the European Union General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA), the Brazilian General Data Protection Law (LGPD), the Chinese Cybersecurity, Data Security and Personal Information Protection laws (and other new and proposed data protection laws), International Organization for Standardization (ISO), and National Institute of Standards and Technology (NIST).
The security compliance landscape continues to evolve, requiring us to stay apprised of changes in cybersecurity, privacy laws and regulations, such as the European Union General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA), the Brazilian General Data Protection Law (LGPD), the Chinese Cybersecurity, Data Security and Personal Information Protection laws (PIPL).
Any defects and disruptions in the legacy systems which cannot be addressed in a timely manner could impact our ability to process orders and reconcile financial statements. 17 Index Cyber risk and the failure to maintain the integrity of our operational or security systems or infrastructure, or those of third parties with which we do business, could have a material adverse effect on our business, consolidated financial condition, and results of operations.
Cyber risk and the failure to maintain the integrity of our operational or security systems or infrastructure, or those of third parties with which we do business, could have a material adverse effect on our business, consolidated financial condition, and results of operations.
As a result, the United States, as well as other nations, instituted economic sanctions against Russia and Belarus. The impact of this action and related sanctions on the world economy is not determinable as of the date of these financial statements.
As a result, the United States, as well as other nations, instituted economic sanctions against Russia and Belarus. The impact of this action and related sanctions on the world economy is not currently determinable but the impact of this conflict has not been material to our consolidated financial position and results of operations.
A common trend facing each of our businesses is the digitization of content and proliferation of distribution channels through the Internet and other electronic means, which are replacing traditional print formats.
The demand for digital and lower cost books could impact our sales volumes and pricing in an adverse way. A common trend facing each of our businesses is the digitization of content and proliferation of distribution channels through the Internet and other electronic means, which are replacing traditional print formats.
Our Board of Directors approved amendments to the US, Canada, and UK defined benefit plans that froze the future accumulation of benefits effective June 30, 2013, December 31, 2015, and April 30, 2015, respectively.
Our Board of Directors approved amendments to the US, Canada, and UK defined benefit plans that froze the future accumulation of benefits effective June 30, 2013, December 31, 2015, and April 30, 2015, respectively. The retirement benefit pension plan in Russia was discontinued on February 28, 2023 and we retain no further obligations for retirement benefits in Russia.
These mandates have the potential to put pressure on subscription-based publications. If such regulations are widely implemented, our consolidated financial position and results of operations could be adversely affected. 21 Index To date, the majority of governments that have taken a position on open access have favored the Green model and have generally specified embargo periods of twelve months.
These mandates have the potential to put pressure on subscription-based publications. If such regulations are widely implemented, our consolidated financial position and results of operations could be adversely affected.
Financial Risks Changes in global economic conditions could impact our ability to borrow funds and meet our future financing needs. Changes in global financial markets have not had, nor do we anticipate they will have, a significant impact on our liquidity.
Changes in global financial markets have not had, nor do we anticipate they will have, a significant impact on our liquidity.
Recent well-publicized security breaches at other companies have led to enhanced government and regulatory scrutiny of the measures taken by companies to protect against cyberattacks and may in the future result in heightened cybersecurity requirements, including additional regulatory expectations for oversight of vendors and service providers.
Recent well-publicized security breaches at other companies have led to enhanced government and regulatory scrutiny of the measures taken by companies to protect against cyberattacks and may in the future result in heightened cybersecurity requirements, including additional regulatory expectations for oversight of vendors and service providers. 18 Index A cyberattack could cause delays in initiating or completing sales, impede delivery of our products and services to our clients, disrupt other critical client-facing or business processes, or dislocate our critical internal functions.
We may not be able to realize the expected benefits of our growth strategies, which are described in Item 1. Business, including successfully integrating acquisitions, which could adversely impact our consolidated financial position and results of operations . Our growth strategy includes business acquisitions, including knowledge-enabled services, which complement our existing businesses.
Business, including successfully integrating acquisitions, which could adversely impact our consolidated financial position and results of operations . Our growth strategy includes business acquisitions, including knowledge-enabled services, which complement our existing businesses. Acquisitions may have a substantial impact on our consolidated financial position and results of operations.
The rapid pace and scope of change increases the risk that not all our strategic initiatives will deliver the expected benefits within the anticipated timeframes.
The rapid pace and scope of change increases the risk that not all our strategic initiatives will deliver the expected benefits within the anticipated timeframes. In addition, these efforts may disrupt our business activities, which could adversely affect our consolidated financial position and results of operations.
Changes in tax laws could have a material impact on our consolidated financial position and results of operations. We are subject to tax laws in the jurisdictions where we conduct business, including the US and many foreign jurisdictions.
We are subject to tax laws in the jurisdictions where we conduct business, including the US and many foreign jurisdictions.
Acquisitions involve risks and uncertainties, including difficulties in integrating acquired operations and in realizing expected opportunities, cost synergies, diversions of management resources, loss of key employees, challenges with respect to operating new businesses, and other uncertainties. 15 Index The demand for digital and lower cost books could impact our sales volumes and pricing in an adverse way.
Acquisitions involve risks and uncertainties, including difficulties in integrating acquired operations and in realizing expected opportunities, cost synergies, diversions of management resources, loss of key employees, challenges with respect to operating new businesses, and other uncertainties. We have announced our intent to explore the sale of certain of our businesses, and such proposed divestitures may introduce significant risks and uncertainties.
Increased customer demand for lower prices could reduce our revenue. We publish educational content for undergraduate, graduate, and advanced placement students, lifelong learners, and, in Australia, for secondary school students. Due to growing student demand for less expensive textbooks, many college bookstores, online retailers, and other entities, offer used or rental textbooks to students at lower prices than new textbooks.
Increased customer demand for lower prices could reduce our revenue. 15 Index We publish educational content for undergraduate, graduate, and advanced placement students, lifelong learners, and, in Australia, for secondary school students.
If that were to happen, the market price of our stock could decline and we could be subject to sanctions or investigations by the SEC or other regulatory authorities. General Risks The trading price of the shares of our common stock may fluctuate materially, and investors of our common stock could incur substantial losses. Our stock price may fluctuate materially.
If that were to happen, the market price of our stock could decline and we could be subject to sanctions or investigations by the SEC or other regulatory authorities. General Risks Global economic, market, public health and geopolitical conditions or other events could negatively impact our consolidated financial positions and results of operations.
A reduction in enrollment at colleges and universities could adversely affect the demand for our higher education products.
Further expansion of the used and rental textbook markets could further adversely affect our sales of print textbooks, subsequently affecting our consolidated financial position and results of operations. A reduction in enrollment at colleges and universities could adversely affect the demand for our higher education products.
In our Research Publishing & Platforms segment, approximately 28% of research journal articles are sourced from authors in China. Any restrictions on exporting intellectual property could adversely affect our business and consolidated financial position and results of operations.
In our Research segment, approximately 32% of the articles we published in 2022 included a China based author. This compares to the industry percentage which is approximately 30% of articles published in 2022 which included a China based author. Any restrictions on exporting intellectual property could adversely affect our business and consolidated financial position and results of operations.
The trading price of our securities could decline due to any of these risks, and investors may lose all or part of their investment. Strategic Risks The ongoing COVID-19 pandemic may continue to impact our business, results of operations, and financial condition.
The trading price of our securities could decline due to any of these risks, and investors may lose all or part of their investment. Strategic Risks We may not be able to realize the expected benefits of our growth strategies, which are described in Item 1.
Several European administrations have signed on to the business model which combines the purchasing of subscription content with the purchase of open access publishing for authors in their respective countries. This development removes an element of risk by fixing revenues from that market, provided that the terms, price, and rate of transition negotiated are acceptable.
This development removes an element of risk by fixing revenues from that market, provided that the terms, price, and rate of transition negotiated are acceptable. On January 31, 2020, the UK exited the European Union (EU), an action referred to as Brexit.
See Note 13, “Income Taxes. ” During our year ended April 30, 2022, more than half of our consolidated pretax income was from the UK. In addition, there are proposals to increase the rate and otherwise change US tax laws which could significantly increase our tax rate.
In addition, there are proposals to increase the rate and otherwise change US tax laws, which could significantly increase the Company's tax rate.
These capabilities include business planning and transaction information, product development and delivery, marketing and sales information and management, and system security. We must continue to invest in technology and other innovations to adapt and add value to our products and services to remain competitive.
If we fail to innovate in response to rapidly evolving technological and market developments, our competitive position may be negatively impacted. We must continue to invest in technology and other innovations to adapt and add value to our products and services to remain competitive.
In addition, these efforts may disrupt our business activities, which could adversely affect our consolidated financial position and results of operations. 18 Index We continue to restructure and realign our cost base with current and anticipated future market conditions.
We continue to restructure and realign our cost base with current and anticipated future market conditions, including our Business Optimization Program and Fiscal Year 2023 Restructuring Program.
We have exercised contingency plans in Russia to minimize any disruption if we were to lose access to our staff. If that should occur, we believe it will not materially impact our overall operations. As of April 30, 2022, the net assets of our Russian operations were not material to our overall consolidated financial position.
We are substantially complete with this closure as of April 30, 2023, except for the formal liquidation of our Russian legal entity, which we expect to complete in fiscal year 2024. This action did not materially impact our overall operations. Prior to the closure, the net assets of our Russian operations were not material to our overall consolidated financial position.
Removed
The ongoing COVID-19 pandemic, as well as continuing measures undertaken to contain the spread of COVID-19, could continue to cause disruptions and have a significant impact on our business, including, but not limited to: • Declines in print book sales due to closings of retail bookstores; • Declines in businesses that rely on in-person engagement, primarily test prep and corporate training; • Delays in signing annual journal subscription agreements in certain parts of Europe and Asia due to challenges of remote selling and university disruption; • Declines in subscription revenue due to continued library and academic budget challenges; • Delays in customer payments due to widespread disruption and pervasive cash conservation behaviors in the face of uncertainty; • Lower demand for early career technology talent due to client constraints, including the continuing closure of corporate offices, staffing uncertainty, internal contractor hiring restrictions, and financial constraints.
Added
We have initiated a strategic review of our non-core education businesses which could result in the future divestiture of certain assets or businesses that no longer fit with our strategic direction or growth targets. Divestitures involve significant risks and uncertainties that could adversely affect our business, consolidated financial position and consolidated results of operations.
Removed
The outbreak also continues to present challenges as the majority of our workforce is continuing to work remotely and continuing to assist new and existing customers who are also generally working remotely.
Added
These include, among others, the inability to find potential buyers on favorable terms, disruption to our business and/or diversion of management attention from other business concerns, the potential loss of key employees, difficulties in separating the operations of the divested business, and retention of certain liabilities related to the divested business.
Removed
The COVID-19 pandemic may have the effect of heightening other risks identified in this section of our Annual Report on Form 10-K for the year ended April 30, 2022, such as those related to technology disruption and the adoption by colleges and universities of online delivery of their educational offerings.
Added
Significant time and expenses could be incurred to divest these non-core businesses which may adversely affect operations as dispositions may require our continued financial involvement, such as through transition service agreements, guarantees, and indemnities or other current or contingent financial obligations and liabilities.
Removed
Despite our efforts to manage these risks, it is not possible for us to predict the duration or magnitude of the adverse impacts of the outbreak and its effects on our business, results of operations, or financial condition at this time, but such effects may be material.
Added
Due to growing student demand for less expensive textbooks, many college bookstores, online retailers, and other entities, offer used or rental textbooks to students at lower prices than new textbooks. The Internet has made the used and rental textbook markets more efficient and has significantly increased student access to used and rental textbooks.
Removed
The extent to which our business, results of operations, and financial condition may be impacted by the COVID-19 pandemic in the future will depend largely on continued developments, which are highly uncertain and cannot be accurately predicted, including new information which may emerge concerning the severity of the outbreak, including variants of the virus, and actions taken by government authorities to contain the outbreak or treat its impact, including the effectiveness and distribution of vaccines.
Added
If we are unable to introduce new technologies, products, and services, our ability to be profitable may be adversely affected. In addition, our ability to effectively compete, may be affected by our ability to anticipate and respond effectively to the opportunity and threat presented by new technology disruption and developments, including generative artificial intelligence (GAI).
Removed
Acquisitions may have a substantial impact on our consolidated financial position and results of operations.
Added
We may be exposed to competitive risks related to the adoption and application of new technologies by established market participants or new entrants, and others. We cannot predict the effect of technological changes on our business.
Removed
The Internet has made the used and rental textbook markets more efficient and has significantly increased student access to used and rental textbooks. Further expansion of the used and rental textbook markets could further adversely affect our sales of print textbooks, subsequently affecting our consolidated financial position and results of operations.
Added
Failure to keep pace with these technological developments or otherwise bring to market products that reflect these technologies could have a material adverse impact on our overall business and results of operations. We may not be successful in anticipating or responding to these developments on a timely and cost-effective basis.
Removed
We currently use a legacy platform with limited support for order management of the global Academic & Professional Learning business.
Added
Additionally, the effort to gain technological expertise and develop new technologies in our business requires us to incur significant expenses. If we cannot offer new technologies as quickly as our competitors, or if our competitors develop more cost-effective technologies or product offerings, we could experience a material adverse effect on our operating results, growth and financial condition.
Removed
A cyberattack could cause delays in initiating or completing sales, impede delivery of our products and services to our clients, disrupt other critical client-facing or business processes, or dislocate our critical internal functions.
Added
Any defects and disruptions in the legacy systems which cannot be addressed in a timely manner could impact our ability to process orders and reconcile financial statements.
Removed
These risks and the measures we have taken to help mitigate them are discussed in Part II, Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” of this Annual Report on Form 10-K. We may, from time to time, use derivative instruments to hedge such risks.
Added
The United Kingdom ceased to be an EU Member State on January 31, 2020, but enacted the UK data protection law. It is unclear how UK data protection laws will continue to develop; however, contractual clauses have been established regulating data transfers to and from the United Kingdom.
Removed
Legal, Regulatory, and Compliance Risks The uncertainty surrounding the implementation and effect of Brexit may cause increased economic volatility, affecting our operations and business . On January 31, 2020, the UK exited the European Union (EU), an action referred to as Brexit.
Added
Some countries also are considering or have enacted legislation requiring local storage and processing of data that could increase the cost and complexity of delivering our services.
Removed
This was followed by an implementation period, during which EU law continued to apply in the UK and the UK maintained its EU single market access rights and EU customs union membership. The implementation period expired December 31, 2020.
Added
In addition, to new and proposed data protection laws, we also stay apprised and adopt certain security standards required by our clients, such as International Organization for Standardization (ISO), National Institute of Standards and Technology (NIST) and Center for Internet Security (CIS).
Removed
Consequently, the UK has become a third country vis-à-vis the EU, without access to the single market or membership of the EU customs union. The UK and the EU have signed an EU-UK Trade and Cooperation Agreement, or TCA, which was formally approved by Parliament on April 28, 2021.

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Item 2. Properties

Properties — owned and leased real estate

2 edited+2 added−0 removed1 unchanged
Biggest changeUnited States: New Jersey Corporate Headquarters Leased 294,000 Florida Office Leased 58,000 Kentucky Office Leased 47,000 Indiana Office Leased 42,000 Minnesota Office Leased 28,000 Massachusetts Office Leased 26,000 California Offices Leased 21,000 North Carolina Office Leased 12,000 Texas Office Leased 11,000 International: England Distribution Centers Leased 298,000 Offices Leased 85,000 Offices Owned 70,000 Germany Office Owned 104,000 Office Leased 18,000 China Offices Leased 40,000 Sri Lanka Office Leased 38,000 India Distribution Centers Leased 12,000 Office Leased 25,000 France Offices Leased 36,000 Australia Offices Leased 34,000 Russia Office Leased 27,000 Jordan Office Leased 24,000 Singapore Office Leased 14,000 Canada Office Leased 13,000 Brazil Office Leased 12,000 Greece Office Leased 11,000
Biggest changeUnited States: New Jersey Corporate Headquarters Leased 294,000 Indiana Office Leased 42,000 California Offices Leased 21,000 Massachusetts Office Leased 26,000 Florida Office Leased 58,000 Minnesota Office Leased 28,000 North Carolina Office Leased 12,000 International: England Distribution Centers Leased 298,000 Offices Leased 85,000 Offices Owned 70,000 France Offices Leased 17,000 Germany Office Owned 104,000 Office Leased 14,000 Jordan Office Leased 24,000 China Offices Leased 40,000 India Distribution Centers Leased 12,000 Office Leased 25,000 Greece Office Leased 11,000 Brazil Office Leased 12,000 Sri Lanka Office Leased 38,000
All of the buildings and the equipment owned or leased are believed to be in good operating condition and are suitable for the conduct of our business. Location Purpose Owned or Leased Approx. Sq. Ft.
In Part II, Item 8, “Financial Statements and Supplementary Data” see Note 7, “Restructuring and Related Charges (Credits),” of the Notes to Consolidated Financial Statements for details of these restructuring programs. All of the current buildings and the equipment owned or leased are believed to be in good operating condition and are suitable for the conduct of our business.
Added
Due to the increased use of virtual work arrangements for post-pandemic operations and our various restructuring programs, we exited certain leased office space, subleased certain office spaces, and reduced occupancy at other facilities.
Added
Location Purpose Owned or Leased Approx. Sq. Ft.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

6 edited+0 added−0 removed0 unchanged
Biggest changeItem 4. Mine Safety Disclosures Not applicable. 24 Index Information About Our Executive Officers Set forth below are the current executive officers of the Company. Each of the officers listed will serve until the next organizational meetings of the Board of Directors of the Company, and until each of the respective successors are duly elected and qualified.
Biggest changeItem 4. Mine Safety Disclosures Not applicable. 26 Index Information About Our Executive Officers Set forth below are the current executive officers of the Company. Name, Current and Former Positions Age First Elected to Current Position BRIAN A.
March 2017 – SVP, Chief Accounting Officer and Controller, John Wiley & Sons March 2014 – Vice President, Finance, Thomson Reuters KEVIN MONACO 58 October 2018 Senior Vice President, Treasurer and Tax October 2009 – SVP, Finance, Treasurer, and Investor Relations, Coty Inc.
March 2017 – SVP, Chief Accounting Officer and Controller, John Wiley & Sons March 2014 – Vice President, Finance, Thomson Reuters KEVIN MONACO 59 October 2018 Senior Vice President, Treasurer and Tax October 2009 – SVP, Finance, Treasurer, and Investor Relations, Coty Inc.
CARIDI 56 October 2020 Senior Vice President, Global Corporate Controller, and Chief Accounting Officer June 2020 – SVP, Chief Accounting Officer and Controller, Teladoc Health, Inc.
CARIDI 57 October 2020 Senior Vice President, Global Corporate Controller, and Chief Accounting Officer June 2020 – SVP, Chief Accounting Officer and Controller, Teladoc Health, Inc.
DEIRDRE SILVER 54 February 2020 Executive Vice President, General Counsel August 2015 – Associate General Counsel, Senior Vice President of Legal, Research JAMES FLYNN 51 September 2021 Executive Vice President and General Manager, Research July 2018 – Chief Product Officer, Research, Wiley May 2015 – Senior Vice President and Managing Director, Research Publishing, Wiley CHRISTOPHER F.
DEIRDRE SILVER 55 February 2020 Executive Vice President, General Counsel August 2015 – Associate General Counsel, Senior Vice President of Legal, Research JAMES FLYNN 52 September 2021 Executive Vice President and General Manager, Research July 2018 – Chief Product Officer, Research, Wiley May 2015 – Senior Vice President and Managing Director, Research Publishing, Wiley CHRISTOPHER F.
AREF MATIN 63 May 2018 Executive Vice President, Chief Technology Officer February 2015 – Executive Vice President, Chief Technology Officer, Ascend Learning July 2012 – Executive Vice President, Chief Technology Officer, Pearson Learning Technologies & Pearson Higher Education MATTHEW LEAVY 54 September 2019 Executive Vice President and General Manager, Educational Publishing September 2018 – SVP, Business Development January 2018 – Principal Leavy Consulting LLC August 2013 – Managing Director Global Managed Services, Pearson plc DANIELLE MCMAHAN 47 November 2019 Executive Vice President, Chief People & Operations Officer June 2017 – Chief Human Resources Officer, York Risk Services Group July 2014 – VP, Global Talent, American Express TODD ZIPPER 45 June 2020 Executive Vice President and General Manager, Education Services November 2018 – Co-President, Wiley Education Services January 2015 – President and CEO, The Learning House, Inc SHARI HOFFER 51 December 2021 Executive Vice President, Chief Marketing Officer May 2017 – SVP Marketing 25 Index PART II
AREF MATIN 64 May 2018 Executive Vice President, Chief Technology Officer February 2015 – Executive Vice President, Chief Technology Officer, Ascend Learning July 2012 – Executive Vice President, Chief Technology Officer, Pearson Learning Technologies & Pearson Higher Education MATTHEW LEAVY 55 September 2019 Executive Vice President and General Manager, Academic September 2018 – SVP, Business Development January 2018 – Principal Leavy Consulting LLC August 2013 – Managing Director Global Managed Services, Pearson plc DANIELLE MCMAHAN 48 November 2019 Executive Vice President, Chief People & Operations Officer June 2017 – Chief Human Resources Officer, York Risk Services Group July 2014 – VP, Global Talent, American Express TODD ZIPPER 46 June 2020 Executive Vice President and General Manager, Talent November 2018 – Co-President, Wiley Education Services January 2015 – President and CEO, The Learning House, Inc SHARI HOFFER 52 December 2021 Executive Vice President, Chief Marketing Officer May 2017 – SVP Marketing 27 Index PART II
Name, Current and Former Positions Age First Elected to Current Position BRIAN A. NAPACK 60 December 2017 President and Chief Executive Officer and Director March 2012 – Senior Advisor, Providence Equity Partners LLC CHRISTINA VAN TASSELL 51 October 2021 Executive Vice President and Chief Financial Officer November 2017 – Chief Financial Officer – Dow Jones & Company, Inc.
NAPACK 61 December 2017 President and Chief Executive Officer and Director March 2012 – Senior Advisor, Providence Equity Partners LLC CHRISTINA VAN TASSELL 52 October 2021 Executive Vice President and Chief Financial Officer November 2017 – Chief Financial Officer – Dow Jones & Company, Inc.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

4 edited+2 added−1 removed1 unchanged
Biggest changeTotal Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of a Publicly Announced Program Maximum Number of Shares that May Be Purchased Under the Program Maximum Dollar Value of Shares that May Yet Be Purchased Under Additional Plans or Programs (Dollars in Millions) February 2022 — $ — — 48,950 $ 200.0 March 2022 93,189 53.65 93,189 — 197.6 April 2022 2,585 51.56 2,585 — 197.5 Total 95,774 $ 53.60 95,774 — $ 197.5
Biggest changeTotal Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of a Publicly Announced Program Maximum Number of Shares that May Be Purchased Under the Program Maximum Dollar Value of Shares that May Yet Be Purchased Under Additional Plans or Programs (Dollars in Millions) February 2023 — $ — — — $ 173.5 March 2023 151 36.97 151 — 167.9 April 2023 141 38.37 141 — 162.5 Total 292 $ 37.64 292 — $ 162.5 Performance Graph The below graph provides an indicator of the cumulative total return to shareholders of the Company’s Class A Common Stock as compared with the cumulative total return on the Russell 2000, the Dow Jones Publishing Index and the S&P 400 Midcap, for the period from April 30, 2018 to April 30, 2023.
On a quarterly basis, the Board of Directors considers the payment of cash dividends based upon its review of earnings, our financial position, and other relevant factors. As of May 31, 2022, the approximate number of holders of our Class A and Class B Common Stock were 692 and 48, respectively, based on the holders of record.
On a quarterly basis, the Board of Directors considers the payment of cash dividends based upon its review of earnings, our financial position, and other relevant factors. As of May 31, 2023, the approximate number of holders of our Class A and Class B Common Stock were 672 and 44, respectively, based on the holders of record.
During the fourth quarter of 2022, we made the following purchases of Class A and Class B Common Stock under these publicly announced stock repurchase programs.
During the fourth quarter of fiscal year 2023, we made the following purchases of Class A and Class B Common Stock under the publicly announced stock repurchase program.
During the year ended April 30, 2020, our Board of Directors approved an additional share repurchase program of $200 million of Class A or B Common Stock.
During the year ended April 30, 2020, our Board of Directors approved an additional share repurchase program of $200 million of Class A or B Common Stock. As of April 30, 2023, we had authorization from our Board of Directors to purchase up to $162.5 million that was remaining under this program.
Removed
This share repurchase program is in addition to the share repurchase program approved by our Board of Directors during the year ended April 30, 2017 of four million shares of Class A or B Common Stock. As of April 30, 2022, no additional shares were remaining under this program for purchase.
Added
The Company has elected to use the Russell 2000 Index and the S&P 400 Midcap index as its broad equity market indices because it is currently included in these indices. Cumulative total return assumes $100.00 invested on April 30, 2018 and reinvestment of dividends throughout the period.
Added
April 30, 2018 April 30, 2019 April 30, 2020 April 30, 2021 April 30, 2022 April 30, 2023 WLY $ 100.00 $ 71.81 $ 60.24 $ 94.44 $ 86.54 $ 67.90 Russell 2000 $ 100.00 $ 104.57 $ 87.41 $ 152.86 $ 127.04 $ 122.36 Dow Pub $ 100.00 $ 106.96 $ 104.62 $ 174.28 $ 154.93 $ 146.55 S&P 400 $ 100.00 $ 106.98 $ 90.97 $ 152.73 $ 141.95 $ 143.77 Item 6. [Reserved] 28 Index

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

111 edited+107 added−73 removed61 unchanged
Biggest changeSEGMENT OPERATING RESULTS: Year Ended April 30, % Change Favorable Constant Currency % Change Favorable RESEARCH PUBLISHING & PLATFORMS: 2022 2021 (Unfavorable) (Unfavorable) Revenue: Research Publishing $ 1,057,022 $ 972,512 9 % 8 % Research Platforms 54,321 42,837 27 % 27 % Total Research Publishing & Platforms Revenue 1,111,343 1,015,349 9 % 9 % Cost of Sales 300,373 275,377 (9 )% (8 )% Operating Expenses 468,012 429,916 (9 )% (9 )% Amortization of Intangible Assets 47,731 37,033 (29 )% (28 )% Restructuring Charges (Credits) (see Note 7) 238 (36 ) # # Contribution to Profit 294,989 273,059 8 % 9 % Restructuring Charges (Credits) (see Note 7) 238 (36 ) # # Adjusted Contribution to Profit 295,227 273,023 8 % 9 % Depreciation and Amortization 94,899 83,866 (13 )% (13 )% Adjusted EBITDA $ 390,126 $ 356,889 9 % 10 % Adjusted EBITDA Margin 35.1 % 35.1 % # Not meaningful Revenue: Research Publishing & Platforms revenue for the year ended April 30, 2022 increased $96.0 million, or 9%, as compared with the prior year on a reported and constant currency basis.
Biggest changeThe amount of the pretax and the related income tax impact for the adjustments included in the table below are presented in the section above, “Provision for Income Taxes.” Year Ended April 30, 2022 2021 US GAAP EPS $ 2.62 $ 2.63 Adjustments: Restructuring and related (credits) charges (0.02) 0.44 Foreign exchange losses (gains) on intercompany transactions 0.02 (0.02) Amortization of acquired intangible assets 1.21 1.08 Gain on sale of certain assets (0.05) — Income tax adjustments 0.38 (0.13) Non-GAAP Adjusted EPS $ 4.16 $ 4.00 On a constant currency basis, Adjusted EPS increased 1% primarily due to a lower Non-GAAP Adjusted Effective Tax Rate, partially offset by lower Other income, net and, to a lesser extent, lower Adjusted OI. 42 Index SEGMENT OPERATING RESULTS: Year Ended April 30, % Change Favorable (Unfavorable) Constant Currency % Change Favorable (Unfavorable) RESEARCH: 2022 2021 Revenue: Research Publishing (1) $ 963,715 $ 892,176 8 % 8 % Research Solutions (1) 147,628 123,173 20 % 20 % Total Research Revenue 1,111,343 1,015,349 9 % 9 % Cost of Sales 300,373 275,377 (9) % (8) % Operating Expenses 468,012 429,916 (9) % (9) % Amortization of Intangible Assets 47,731 37,033 (29) % (28) % Restructuring Charges (Credits) (see Note 7) 238 (36) # # Contribution to Profit 294,989 273,059 8 % 9 % Restructuring Charges (Credits) (see Note 7) 238 (36) # # Adjusted Contribution to Profit 295,227 273,023 8 % 9 % Depreciation and Amortization 94,899 83,866 (13) % (13) % Adjusted EBITDA $ 390,126 $ 356,889 9 % 10 % Adjusted EBITDA Margin 35.1 % 35.1 % # Not meaningful (1) As previously announced in May 2022, our revenue by product type previously referred to as Research Platforms was changed to Research Solutions.
Foreign Exchange Transaction Losses: Foreign exchange transaction losses were $3.2 million for the year ended April 30, 2022 and were primarily due to losses on our foreign currency denominated third-party and, to a lesser extent, intercompany accounts receivable and payable balances due to the impact of the change in average foreign exchange rates as compared to the US dollar.
Foreign exchange transaction losses were $3.2 million for the year ended April 30, 2022, and were primarily due to losses on our foreign currency denominated third-party and, to a lesser extent, intercompany accounts receivable and payable balances due to the impact of the change in average foreign exchange rates as compared to the US dollar.
The contract liabilities will be recognized as income when the products are shipped or made available online to the customers over the term of the subscription.
The contract liabilities will be recognized as income when the products are shipped or made available online to the customers over the term of the subscription.
Provision for Income Taxes: Below is a reconciliation of our US GAAP Income Before Taxes to Non-GAAP Adjusted Income Before Taxes: Year Ended April 30, 2022 2021 US GAAP Income Before Taxes $ 209,661 $ 175,912 Pretax Impact of Adjustments: Restructuring and related (credits) charges (1,427 ) 33,310 Foreign exchange losses (gains) on intercompany transactions 1,513 (1,457 ) Amortization of acquired intangible assets 89,346 79,421 Gain on sale of certain assets (3,694 ) — Non-GAAP Adjusted Income Before Taxes $ 295,399 $ 287,186 30 Index Below is a reconciliation of our US GAAP Income Tax Provision to Non-GAAP Adjusted Income Tax Provision, including our US GAAP Effective Tax Rate and our Non-GAAP Adjusted Effective Tax Rate: Year Ended April 30, 2022 2021 US GAAP Income Tax Provision $ 61,352 $ 27,656 Income Tax Impact of Adjustments (1) : Restructuring and related (credits) charges (260 ) 8,065 Foreign exchange losses (gains) on intercompany transactions 597 (363 ) Amortization of acquired intangible assets 20,816 18,511 Gain on sale of certain assets (922 ) — Income Tax Adjustments: Impact of increase in UK statutory rate on deferred tax balances (2) (21,415 ) (3,511 ) Impact of US CARES Act (3) — 13,998 Impact of change in certain US state tax rates in 2021 (2) — (3,225 ) Non-GAAP Adjusted Income Tax Provision $ 60,168 $ 61,131 US GAAP Effective Tax Rate 29.3 % 15.7 % Non-GAAP Adjusted Effective Tax Rate 20.4 % 21.3 % (1) For the year ended April 30, 2022, substantially all of the tax impact was from deferred taxes.
Provision for Income Taxes: Below is a reconciliation of our US GAAP Income Before Taxes to Non-GAAP Adjusted Income Before Taxes: Year Ended April 30, 2022 2021 US GAAP Income Before Taxes $ 209,661 $ 175,912 Pretax Impact of Adjustments: Restructuring and related (credits) charges (1,427) 33,310 Foreign exchange losses (gains) on intercompany transactions 1,513 (1,457) Amortization of acquired intangible assets 89,346 79,421 Gain on sale of certain assets (3,694) — Non-GAAP Adjusted Income Before Taxes $ 295,399 $ 287,186 Below is a reconciliation of our US GAAP Income Tax Provision to Non-GAAP Adjusted Income Tax Provision, including our US GAAP Effective Tax Rate and our Non-GAAP Adjusted Effective Tax Rate: Year Ended April 30, 2022 2021 US GAAP Income Tax Provision $ 61,352 $ 27,656 Income Tax Impact of Adjustments (1) : Restructuring and related (credits) charges (260) 8,065 Foreign exchange losses (gains) on intercompany transactions 597 (363) Amortization of acquired intangible assets 20,816 18,511 Gain on sale of certain assets (922) — Income Tax Adjustments: Impact of increase in UK statutory rate on deferred tax balances (2) (21,415) (3,511) Impact of US CARES Act (3) — 13,998 Impact of change in certain US state tax rates in 2021 (2) — (3,225) Non-GAAP Adjusted Income Tax Provision $ 60,168 $ 61,131 US GAAP Effective Tax Rate 29.3 % 15.7 % Non-GAAP Adjusted Effective Tax Rate 20.4 % 21.3 % 41 Index (1) For the year ended April 30, 2022, substantially all of the tax impact was from deferred taxes.
Adjusted OI Below is a reconciliation of our consolidated US GAAP Operating Income to Non-GAAP Adjusted OI: Year Ended April 30, 2022 2021 US GAAP Operating Income $ 219,276 $ 185,511 Adjustments: Restructuring and related (credits) charges (1,427 ) 33,310 Non-GAAP Adjusted OI $ 217,849 $ 218,821 Adjusted EBITDA Below is a reconciliation of our consolidated US GAAP Net Income to Non-GAAP EBITDA and Adjusted EBITDA: Year Ended April 30, 2022 2021 Net Income $ 148,309 $ 148,256 Interest expense 19,802 18,383 Provision for income taxes 61,352 27,656 Depreciation and amortization 215,170 200,189 Non-GAAP EBITDA 444,633 394,484 Restructuring and related (credits) charges (1,427 ) 33,310 Foreign exchange transaction losses 3,192 7,977 Gain on sale of certain assets (3,694 ) — Other income, net (9,685 ) (16,761 ) Non-GAAP Adjusted EBITDA $ 433,019 $ 419,010 29 Index Interest Expense: Interest expense for the year ended April 30, 2022 was $19.8 million compared with the prior year of $18.4 million.
Adjusted OI Below is a reconciliation of our consolidated US GAAP Operating Income to Non-GAAP Adjusted OI: Year Ended April 30, 2022 2021 US GAAP Operating Income $ 219,276 $ 185,511 Adjustments: Restructuring and related (credits) charges (1,427) 33,310 Non-GAAP Adjusted OI $ 217,849 $ 218,821 Adjusted EBITDA Below is a reconciliation of our consolidated US GAAP Net Income to Non-GAAP EBITDA and Adjusted EBITDA: Year Ended April 30, 2022 2021 Net Income $ 148,309 $ 148,256 Interest expense 19,802 18,383 Provision for income taxes 61,352 27,656 Depreciation and amortization 215,170 200,189 Non-GAAP EBITDA 444,633 394,484 Restructuring and related (credits) charges (1,427) 33,310 Foreign exchange transaction losses 3,192 7,977 Gain on sale of certain assets (3,694) — Other income, net (9,685) (16,761) Non-GAAP Adjusted EBITDA $ 433,019 $ 419,010 Interest Expense: Interest expense for the year ended April 30, 2022 was $19.8 million compared with the prior year of $18.4 million.
We may use a third-party valuation consultant to assist in the determination of such estimates. In Part II, Item 8, “Financial Statements and Supplementary Data,” see Note 4, “Acquisitions,” of the Notes to Consolidated Financial Statements for details of our acquisitions.
We may use a third-party valuation consultant to assist in the determination of such estimates. In Part II, Item 8, “Financial Statements and Supplementary Data,” see Note 4, “Acquisitions and Divestitures” of the Notes to Consolidated Financial Statements for details of our acquisitions.
We considered the lower-than-expected revenue and operating cash flows over a sustained period of time and downward revisions to our cash flow forecasts for this reporting unit to be indicators of impairment for their long-lived assets.
We considered the lower-than-expected revenue and forecasted operating cash flows over a sustained period of time, and downward revisions to our cash flow forecasts for this reporting unit to be indicators of impairment for their long-lived assets.
Net income was flat as higher operating income and, to a lesser extent, lower foreign exchange losses and the gain on sale of certain assets were offset by higher provision for income taxes and, to a lesser extent, lower other income, net. 31 Index Below is a reconciliation of our US GAAP EPS to Non-GAAP Adjusted EPS.
Net income was flat as higher operating income and, to a lesser extent, lower foreign exchange losses and the gain on sale of certain assets were offset by higher provision for income taxes and, to a lesser extent, lower other income, net. Below is a reconciliation of our US GAAP EPS to Non-GAAP Adjusted EPS.
Beyond the forecasted period, a terminal value was determined using a perpetuity growth rate of 3.0% to reflect our estimate of stable and perpetual growth. • Weighted average cost of capital (WACC) – the WACC is the rate used to discount the reporting unit’s estimated future cash flows.
Beyond the forecasted period, a terminal value was determined using a perpetuity growth rate of 3.0% to reflect our estimate of stable and perpetual growth. • Discount rate based on the weighted average cost of capital (WACC) – the WACC is the rate used to discount the reporting unit’s estimated future cash flows.
Gain on Sale of Certain Assets: The gain on the sale of certain assets is due to the sale of our world languages product portfolio which was included in our Academic & Professional Learning segment and resulted in a pretax gain of approximately $3.7 million during the year ended April 30, 2022.
Gain on Sale of Certain Assets: The gain on the sale of certain assets is due to the sale of our world languages product portfolio which was included in our Academic segment and resulted in a pretax gain of approximately $3.7 million during the year ended April 30, 2022.
We concluded that the fair values of our reporting units were above their carrying values and, therefore, there was no indication of impairment. 48 Index Income Approach Used to Determine Fair Values The income approach is based upon the present value of expected cash flows.
We concluded that the fair values of our reporting units were above their carrying values and, therefore, there was no indication of impairment. Income Approach Used to Determine Fair Values The income approach is based upon the present value of expected cash flows.
The material assumptions underlying the estimate of the fair value of the Education Services reporting unit included the following: • Future cash flow assumptions – the projections for future cash flows utilized in the model were derived from historical experience and assumptions regarding future growth and profitability of the reporting unit.
The key assumptions underlying the estimate of the fair value of the Education Services reporting unit included the following: • Future cash flow assumptions – the projections for future cash flows utilized in the model were derived from historical experience and assumptions regarding future growth and profitability of the reporting unit.
(2) Interest on Debt includes the effect of our interest rate swap agreements and the estimated future interest payments on our unhedged variable rate debt, assuming that the interest rates as of April 30, 2022 remain constant until the maturity of the debt.
(2) Interest on debt includes the effect of our interest rate swap agreements and the estimated future interest payments on our unhedged variable rate debt, assuming that the interest rates as of April 30, 2023 remain constant until the maturity of the debt.
During the year ended April 30, 2020, our Board of Directors approved an additional share repurchase program of $200 million of Class A or B Common Stock. As of April 30, 2022, we had authorization from our Board of Directors to purchase up to $197.5 million that was remaining under this program.
During the year ended April 30, 2020, our Board of Directors approved an additional share repurchase program of $200 million of Class A or B Common Stock. As of April 30, 2023, we had authorization from our Board of Directors to purchase up to $162.5 million that was remaining under this program.
Prior to performing the goodwill impairment test for Education Services, we also evaluated the recoverability of long-lived assets of the reporting unit. The carrying value of the long-lived assets that were tested for impairment was $434.0 million.
Prior to performing the goodwill impairment test for Education Services, we also evaluated the recoverability of long-lived assets of the reporting unit. The carrying value of the long-lived assets that were tested for impairment was approximately $467.0 million.
Adjusted OI on a constant currency basis and excluding restructuring (credits) charges decreased 1% as compared with the prior year primarily due to an increase in cost of sales, operating and administrative expenses and, to a lesser extent, amortization of intangible assets, partially offset by higher revenues as described above.
The increase was primarily due to the increase in revenue and, to a lesser extent, lower restructuring charges, partially offset by an increase in cost of sales and operating and administrative expenses. 39 Index Adjusted OI on a constant currency basis and excluding restructuring (credits) charges decreased 1% as compared with the prior year primarily due to an increase in cost of sales, operating and administrative expenses and, to a lesser extent, amortization of intangible assets, partially offset by higher revenues as described above.
Free cash flow less product development spending helps assess our ability, over the long term, to create value for our shareholders, as it represents cash available to repay debt, pay common dividends, and fund share repurchases, and acquisitions. Below are the details of Free cash flow less product development spending.
Free cash flow less product development spending helps assess our ability, over the long term, to create value for our shareholders, as it represents cash available to repay debt, pay common dividends, and fund share repurchases, and acquisitions.
See Note 4, “Acquisitions” for more details on our acquisitions. Operating Income, Adjusted Operating Income (OI) and Adjusted EBITDA : Operating income for the year ended April 30, 2022 increased $33.8 million, or 18% as compared with the prior year on a reported and o n a constant currency basis.
See Note 4, “Acquisitions and Divestitures” for more details on our acquisitions. Operating Income, Adjusted Operating Income (OI) and Adjusted EBITDA: Operating income for the year ended April 30, 2022 increased $33.8 million, or 18% as compared with the prior year on a reported and on a constant currency basis.
Consolidated Results of Operations FISCAL YEAR 2022 AS COMPARED TO FISCAL YEAR 2021 SUMMARY RESULTS Revenue: Revenue for the year ended April 30, 2022 increased $141.4 million, or 7%, as compared with the prior year on a reported and on a constant currency basis including contributions from acquisitions.
FISCAL YEAR 2022 AS COMPARED TO FISCAL YEAR 2021 SUMMARY RESULTS Revenue: Revenue for the year ended April 30, 2022, increased $141.4 million, or 7%, as compared with the prior year on a reported and on a constant currency basis including contributions from acquisitions. Excluding the contributions from acquisitions, revenue increased 5% on a constant currency basis.
LIQUIDITY AND CAPITAL RESOURCES: Principal Sources of Liquidity We believe that our operating cash flow, together with our revolving credit facilities and other available debt financing, will be adequate to meet our operating, investing, and financing needs in the foreseeable future.
LIQUIDITY AND CAPITAL RESOURCES: Principal Sources of Liquidity We believe that our operating cash flow, together with our revolving credit facilities and other available debt financing, will be adequate to meet our operating, investing, and financing needs in the foreseeable future. Operating cash flow provides the primary source of cash to fund operating needs and capital expenditures.
The Non-GAAP Adjusted Effective Tax Rate before these items decreased because the year ended April 30, 2021 included US state tax expenses from our expanded presence from COVID-19 and employees working in additional locations.
The Non-GAAP Adjusted Effective Tax Rate before these items decreased because the year ended April 30, 2021, included US state tax expenses from our expanded presence due to employees working in additional locations given the COVID-19 pandemic.
Our Amended and Restated RCA contains certain restrictive covenants related to our consolidated leverage ratio and interest coverage ratio, which we were in compliance with as of April 30, 2022.
Our Amended and Restated CA contains certain restrictive covenants related to our consolidated leverage ratio and interest coverage ratio, which we were in compliance with as of April 30, 2023.
The 15.7% tax expense rate for the year ended April 30, 2021 benefitted by $14.0 million from the Coronavirus Aid Relief and Economic Security Act (the CARES Act) and certain regulations issued in late July 2020, which enabled us to carryback certain net operating losses (NOLs) to a year with a higher statutory tax rate.
The 15.7% tax expense rate for the year ended April 30, 2021, benefited by $14.0 million from provisions in the Coronavirus Aid Relief and Economic Security Act (the CARES Act) and certain regulations issued in late July 2020, which enabled us to carry certain net operating losses back to a year with a higher statutory tax rate.
The following table summarizes the shares repurchased of Class A and B Common Stock (shares in thousands): Years Ended April 30, 2022 2021 2020 Shares repurchased – Class A 542 308 1,080 Shares repurchased – Class B 2 2 2 Average Price – Class A and Class B $ 55.14 $ 50.93 $ 43.05 RECENTLY ISSUED STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS, ACCOUNTING GUIDANCE, AND DISCLOSURE REQUIREMENTS We are subject to numerous recently issued statements of financial accounting standards, accounting guidance, and disclosure requirements.
The following table summarizes the shares repurchased of Class A and B Common Stock (shares in thousands): Years Ended April 30, 2023 2022 2021 Shares repurchased – Class A 831 542 308 Shares repurchased – Class B 1 2 2 Average Price – Class A and Class B $ 42.07 $ 55.14 $ 50.93 RECENTLY ISSUED STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS, ACCOUNTING GUIDANCE, AND DISCLOSURE REQUIREMENTS We are subject to numerous recently issued statements of financial accounting standards, accounting guidance, and disclosure requirements.
A one percent change in the expected long-term rate of return would affect net income by approximately $5.9 million. 51 Index
A one percent change in the expected long-term rate of return would affect net income by approximately $5.1 million. 57 Index
Wiley is a predominantly digital company with approximately 83% of revenue generated by digital products and tech-enabled services, and 58% of revenue is recurring which includes revenue that is contractually obligated or set to recur with a high degree of certainty for the year ended April 30, 2022.
Wiley is a predominantly digital company with approximately 85% of revenue for the year ended April 30, 2023 generated by digital products and tech-enabled services. For the year ended April 30, 2023, approximately 57% of our revenue is recurring which includes revenue that is contractually obligated or set to recur with a high degree of certainty.
Excluding the contributions from acquisitions, revenue increased 5% on a constant currency basis. See the “Segment Operating Results” below for additional details on each segment’s revenue and Adjusted EBITDA performance . 27 Index Cost of Sales: Cost of sales for the year ended April 30, 2022 increased $75.3 million, or 12%, as compared with the prior year.
See the “Segment Operating Results” below for additional details on each segment’s revenue and Adjusted EBITDA performance . 38 Index Cost of Sales: Cost of sales for the year ended April 30, 2022, increased $75.3 million, or 12%, as compared with the prior year. On a constant currency basis, cost of sales increased 11% as compared with the prior year.
This change was primarily due to net debt repayments of $11.0 million in the year ended April 30, 2022 compared with net debt borrowings of $30.7 million in the year ended April 30, 2021 and, to a lesser extent, a $24.7 million change from book overdrafts, and a $14.2 million increase in cash used for purchases of treasury shares. 2021 Compared to 2020 Net cash used in financing activities was $47.1 million in the year ended April 30, 2021 compared to net cash provided by financing activities of $ 172.7 million in the year ended April 30, 20 20 .
This change was primarily due to net debt repayments of $11.0 million in the year ended April 30, 2022 compared with net debt borrowings of $30.7 million in the year ended April 30, 2021 and, to a lesser extent, a $24.7 million change from book overdrafts, and a $14.2 million increase in cash used for purchases of treasury shares.
During the year ended April 30, 2022, we purchased $2.5 million under this program. No share repurchases were made under this program during the years ended April 30, 2021 and 2020.
During the years ended April 30, 2023 and 2022, we purchased $35.0 million and $2.5 million, respectively, under this program. No share repurchases were made under this program during the year ended April 30, 2021.
Analysis of Historical Cash Flow The following table shows the changes in our Consolidated Statements of Cash Flows: Years Ended April 30, 2022 2021 2020 Net cash provided by operating activities $ 339,100 $ 359,923 $ 288,435 Net cash used in investing activities (194,024 ) (433,154 ) (346,670 ) Net cash (used in) provided by financing activities (131,638 ) (47,086 ) 172,677 Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash $ (7,070 ) $ 11,629 $ (4,943 ) Cash flow from operations is seasonally a use of cash in the first half of Wiley’s fiscal year principally due to the timing of collections for annual journal subscriptions, which typically occurs in the beginning of the second half of our fiscal year .
Analysis of Historical Cash Flow The following table shows the changes in our Consolidated Statements of Cash Flows: Years Ended April 30, 2023 2022 2021 Net cash provided by operating activities $ 277,071 $ 339,100 $ 359,923 Net cash used in investing activities (98,398) (194,024) (433,154) Net cash used in financing activities (168,568) (131,638) (47,086) Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash $ (3,570) $ (7,070) $ 11,629 Cash flow from operations is seasonally a use of cash in the first half of Wiley’s fiscal year principally due to the timing of collections for annual journal subscriptions, which typically occurs in the beginning of the second half of our fiscal year.
The WACC applied to the Education Services reporting unit was 11.0%. • Valuation Multiples – for the Guideline Public Company Method, we applied relevant current and forward 12-month revenue multiples based on an evaluation of multiples of publicly-traded companies with similarities to the Education Services reporting unit.
The WACC applied to the Education Services reporting unit was 15%. • Valuation Multiples – for the Guideline Public Company Method, we applied relevant current and forward 12-month revenue multiples based on an evaluation of multiples of publicly-traded companies with similarities to the Education Services reporting unit. The multiples applied ranged from 1.1x to 1.2x revenue.
Dividends and Share Repurchases In the year ended April 30, 2022, we increased our quarterly dividend to shareholders to $1.38 per share annualized versus $1.37 per share annualized in the prior year. 46 Index In the year ended April 30, 2021, we increased our quarterly dividend to shareholders to $1.37 per share annualized versus $1.36 per share annualized in the prior year.
Dividends and Share Repurchases In the year ended April 30, 2023, we increased our quarterly dividend to shareholders to $1.39 per share annualized versus $1.38 per share annualized in the prior year. In the year ended April 30, 2022, we increased our quarterly dividend to shareholders to $1.38 per share annualized versus $1.37 per share annualized in the prior year.
These projections are consistent with our operating budget and strategic plan. We applied a compounded annual growth rate of approximately 6.8% for forecasted sales in our projected cash flows through fiscal year 2028.
These projections include forecasted revenues and related growth rates, and forecasted operating cash flows, and are consistent with our operating budget and strategic plan. We applied a compounded annual growth rate of approximately 8.5% for forecasted sales in our projected cash flows through fiscal year 2036.
Our negative working capital (current assets less current liabilities) was $462.7 million and $312.3 million as of April 30, 2021 and April 30, 2020, respectively. The primary driver of the negative working capital is the benefit realized from unearned contract liabilities related to subscriptions for which cash has been collected in advance.
Our negative working capital (current assets less current liabilities) was $354.3 million and $418.6 million as of April 30, 2023 and April 30, 2022, respectively. The primary driver of the negative working capital is the benefit realized from unearned contract liabilities related to subscriptions for which cash has been collected in advance.
Foreign exchange transaction losses were $8.0 million for the year ended April 30, 2021 and were due to the unfavorable impact of the changes in exchange rates on US dollar cash balances held in the UK to fund the acquisition of Hindawi and the net impact of changes in average foreign exchange rates as compared to the US dollar on our third-party accounts receivable and payable balances.
Foreign Exchange Transaction Losses: Foreign exchange transaction losses were $3.2 million for the year ended April 30, 2022 and were primarily due to losses on our foreign currency denominated third-party and, to a lesser extent, intercompany accounts receivable and payable balances due to the impact of the change in average foreign exchange rates as compared to the US dollar. 40 Index Foreign exchange transaction losses were $8.0 million for the year ended April 30, 2021 and were due to the unfavorable impact of the changes in exchange rates on US dollar cash balances held in the UK to fund the acquisition of Hindawi and the net impact of changes in average foreign exchange rates as compared to the US dollar on our third-party accounts receivable and payable balances.
As of April 30, 2022, we had cash and cash equivalents of $100.4 million, of which approximately $93.2 million, or 93%, was located outside the US. Maintenance of these cash and cash equivalent balances outside the US does not have a material impact on the liquidity or capital resources of our operations.
As of April 30, 2023, we had cash and cash equivalents of $106.7 million, of which approximately $104.6 million, or 98%, was located outside the US. Maintenance of these cash and cash equivalent balances outside the US does not have a material impact on the liquidity or capital resources of our operations.
Below is a reconciliation of our US GAAP Earnings (Loss) Per Share to Non-GAAP Adjusted EPS.
Below is a reconciliation of our US GAAP EPS to Non-GAAP Adjusted EPS.
Excluding the impact from acquisitions, Open Access article output growth was approximately 27% for the year ended April 30, 2022 as compared with the prior year. Adjusted EBITDA: On a constant currency basis, Adjusted EBITDA increased 10% as compared with the prior year.
Research Publishing has continued growth due to Transformational Agreements (read and publish). Excluding the impact from acquisitions, Open Access article output growth was approximately 27% for the year ended April 30, 2022 as compared with the prior year. Adjusted EBITDA: On a constant currency basis, Adjusted EBITDA increased 10% as compared with the prior year.
For the impact of our restructuring programs on diluted earnings per share, see the section below, “Diluted Earnings per Share (EPS).” Amortization of Intangible Assets: Amortization of intangible assets was $74.7 million for the year ended April 30, 2021, an increase of $12.2 million, or 20%, as compared with the prior year.
For the impact of our restructuring program on diluted earnings per share, see the section below, “Diluted Earnings per Share (EPS).” Amortization of Intangible Assets: Amortization of intangible assets was $84.8 million for the year ended April 30, 2022, an increase of $10.2 million, or 14%, as compared with the prior year.
Net Cash Used In Investing Activities 2022 Compared to 2021 Net cash used in investing activities in the year ended April 30, 2022 was $194.0 million compared to $ 433.2 million in the prior year. The decrease in cash used in investing activities was due to a decrease of $224.2 million in cash used to acquire businesses.
Net Cash Used In Investing Activities 2023 Compared to 2022 Net cash used in investing activities in the year ended April 30, 2023 was $98.4 million compared to $194.0 million in the prior year. The decrease in cash used in investing activities was primarily due to a decrease of $68.4 million in cash used to acquire businesses.
Other estimates and assumptions include terminal value long-term growth rates, provisions for income taxes, future capital expenditures, and changes in future cashless, debt-free working capital. Changes in any of these assumptions could materially impact the estimated fair value of our reporting units.
Other estimates and assumptions include terminal value long-term growth rates, provisions for income taxes, future capital expenditures, and changes in future cashless, debt-free working capital. 53 Index Changes in any of these assumptions could materially impact the estimated fair value of our reporting units. As noted below, the University Services reporting unit incurred an interim goodwill impairment.
CORPORATE EXPENSES: Corporate Expenses for the year ended April 30, 2021 increased $16.3 million, or 9%, as compared with the prior year. On a constant currency basis and excluding restructuring charges, these expenses increased 1% as compared with the prior year.
CORPORATE EXPENSES: Corporate expenses for the year ended April 30, 2023, increased $18.1 million, or 9%, as compared with the prior year. On a constant currency basis and excluding restructuring charges (credits) and a legal settlement, these expenses decreased 7% as compared with the prior year.
We anticipated ongoing facility-related costs associated with certain properties to result in additional restructuring charges in future periods. These charges are reflected in Restructuring and related (credits) charges in the Consolidated Statements of Income (Loss).
We anticipate ongoing facility-related costs associated with certain properties to result in additional restructuring charges in future periods. These (credits) charges are reflected in Restructuring and related (credits) charges in the Consolidated Statements of Income (Loss). See Note 7, “Restructuring and Related (Credits) Charges” for more details on these (credits) charges.
Restructuring and Related (Credits) Charges: For the years ended April 30, 2022 and 2021, we recorded pretax restructuring credits of $1.4 million and charges of $33.3 million, respectively primarily related to our Business Optimization Program. We anticipate $10.0 million in run rate savings from actions starting in fiscal year 2022.
Restructuring and Related (Credits) Charges: For the years ended April 30, 2022 and 2021, we recorded pretax restructuring credits of $1.4 million and charges of $33.3 million, respectively primarily related to our Business Optimization Program.
Free Cash Flow Less Product Development Spending: Years Ended April 30, 2022 2021 2020 Net cash provided by operating activities $ 339,100 $ 359,923 $ 288,435 Less: Additions to technology, property and equipment (88,843 ) (77,407 ) (88,593 ) Less: Product development spending (27,015 ) (25,954 ) (26,608 ) Free cash flow less product development spending $ 223,242 $ 256,562 $ 173,234 44 Index Net Cash Provided By Operating Activities 2022 compared to 2021 The following is a summary of the $20.8 million change in Net cash provided by operating activities for the year ended April 30, 2022 as compared with the year ended April 30, 2021 (amounts in millions).
Below are the details of Free cash flow less product development spending. 48 Index Free Cash Flow Less Product Development Spending: Years Ended April 30, 2023 2022 2021 Net cash provided by operating activities $ 277,071 $ 339,100 $ 359,923 Less: Additions to technology, property and equipment (81,155) (88,843) (77,407) Less: Product development spending (22,958) (27,015) (25,954) Free cash flow less product development spending $ 172,958 $ 223,242 $ 256,562 Net Cash Provided By Operating Activities 2023 compared to 2022 The following is a summary of the $62.0 million change in Net cash provided by operating activities for the year ended April 30, 2023, as compared with the year ended April 30, 2022 (amounts in millions).
A change in the pattern or trends in returns could also affect the estimated allowance. 47 Index Allocation of Acquisition Purchase Price to Assets Acquired and Liabilities Assumed : In connection with acquisitions, we allocate the cost of the acquisition to the assets acquired and the liabilities assumed based on the estimates of fair value for such items, including intangible assets.
Allocation of Acquisition Purchase Price to Assets Acquired and Liabilities Assumed : In connection with acquisitions, we allocate the cost of the acquisition to the assets acquired and the liabilities assumed based on the estimates of fair value for such items, including intangible assets.
Net cash provided by operating activities – Year ended April 30, 2021 $ 359.9 Net income adjusted for items to reconcile net income to net cash provided by operating activities, which would include such noncash items as depreciation and amortization and the change in deferred taxes (16.3 ) Working capital changes: Accounts payable and accrued royalties 47.5 Accounts receivable, net and contract liabilities (23.3 ) Changes in other assets and liabilities (28.7 ) Net cash provided by operating activities – Year ended April 30, 2022 $ 339.1 The favorable change in accounts payable and accrued royalties was due to the timing of payments.
Net cash provided by operating activities – Year ended April 30, 2022 $ 339.1 Net income adjusted for items to reconcile net income to net cash provided by operating activities, which would include such noncash items as depreciation and amortization, impairment of goodwill, restructuring and related charges (credits), and the change in deferred taxes (27.8) Working capital changes: Accounts receivable, net and contract liabilities 6.6 Accounts payable and accrued royalties 6.5 Changes in other assets and liabilities (47.3) Net cash provided by operating activities – Year ended April 30, 2023 $ 277.1 The favorable change in accounts receivable, net and contract liabilities was primarily due to the timing of collections and billings with customers.
The decrease in the Non-GAAP Adjusted Effective Tax Rate before these items was due to a more favorable mix of earnings for the year ended April 30, 2021. 38 Index Diluted Earnings (Loss) Per Share (EPS): Diluted earnings per share for the year ended April 30, 2021 was $2.63 per share compared with loss per share of $1.32 in the prior year.
The decrease in the Non-GAAP Adjusted Effective Tax Rate before these items was primarily due to a more favorable mix of earnings by jurisdiction for the year ended April 30, 2023. Diluted Earnings Per Share (EPS): Diluted earnings per share for the year ended April 30, 2023, was $0.31 per share compared to $2.62 per share in the prior year.
A hypothetical one percent increase in the discount rate would increase net income and decrease the accrued pension liability by approximately $0.9 million and $111.0 million, respectively. A one percent decrease in the discount rate would increase net income and increase the accrued pension liability by approximately $0.4 million and $133.8 million, respectively.
A hypothetical one percent increase in the discount rate would increase net income and decrease the accrued pension liability by approximately $1.2 million and $76.2 million, respectively. A one percent decrease in the discount rate would decrease net income and increase the accrued pension liability by approximately $0.3 million and $89.2 million, respectively.
However, changes in this assumption may impact our ability to recover the allocated goodwill in the future. For further discussion of the factors that could result in a change in our assumptions, see “Risk Factors” in this Annual Report on Form 10-K.
For further discussion of the factors that could result in a change in our assumptions, see “Risk Factors” in this Annual Report on Form 10-K.
Our rate for the year ended April 30, 2022 was increased by $21.4 million from an increase in the UK statutory rate during our three months ended July 31, 2021. On June 10, 2021, the UK increased its statutory corporate tax rate from 19% to 25% effective April 2023, resulting in this nonrecurring, noncash US GAAP deferred tax expense.
On June 10, 2021, the UK increased its statutory corporate tax rate from 19% to 25% effective April 1, 2023. The 29.3% effective tax rate for the year ended April 30, 2022, was increased by a similar $21.4 million nonrecurring, noncash US GAAP deferred tax expense relating to the UK statutory tax rate increase described above.
Current liabilities as of April 30, 2021 and as of April 30, 2020 include contract liabilities of $545.4 million and $520.2 million, respectively, primarily related to deferred subscription revenue for which cash was collected in advance.
Current liabilities as of April 30, 2023 and as of April 30, 2022 include contract liabilities of $504.7 million and $538.1 million, respectively, primarily related to deferred subscription revenue for which cash was collected in advance.
Fiscal Year 2022 and 2021 Annual Indefinite-lived Intangible Impairment Test We also review our indefinite-lived intangible assets for impairment annually, which consists of brands and trademarks and certain acquired publishing rights. As of February 1, 2022 and 2021, we completed our annual impairment test related to the indefinite-lived intangible assets.
Fiscal Year 2023 and 2022 Annual Indefinite-lived Intangible Impairment Test We also review our indefinite-lived intangible assets for impairment annually, which consists of brands and trademarks and certain acquired publishing rights. For fiscal year 2023, we performed a qualitative assessment for our annual indefinite-lived intangible assets impairment test.
This was partially offset by an increase of $11.4 million for additions of technology, property, and equipment. 2021 Compared to 2020 Net cash used in investing activities in the year ended April 30, 2021 was $433.2 million compared to $ 346.7 million in the prior year.
This was partially offset by an increase of $11.4 million for additions of technology, property, and equipment. 50 Index Net Cash Used In Financing Activities 2023 Compared to 2022 Net cash used in financing activities in the year ended April 30, 2023 was $168.6 million compared to $131.6 million in the year ended April 30, 2022.
The following hypothetical changes in the valuation of the Education Services reporting unit would have impacted the goodwill impairment as follows: • A hypothetical 1% increase to revenue growth and EBITDA margins would have reduced the impairment charge by approximately $16.0 million. • A hypothetical 1% decrease to revenue growth and EBITDA margins would have increased the impairment charge by approximately $19.0 million. • A hypothetical change to the weightings by applying a weighting of 25% to the income approach and 75% to the market approach would have increased the impairment charge by approximately $2.0 million.
The following hypothetical changes in the valuation of the Education Services reporting unit would have impacted the goodwill impairment as follows (absent of any related impact in discount rates applies): • A hypothetical 1% increase to revenue growth and EBITDA margins would have reduced the impairment charge by approximately $30 million. • A hypothetical 1% decrease to revenue growth and EBITDA margins would have increased the impairment charge by approximately $25 million.
A one percent change in the estimated sales return rate could affect net income by approximately $1.7 million.
A one percent change in the estimated sales return rate could affect net income by approximately $2.6 million. A change in the pattern or trends in returns could also affect the estimated allowance.
Any impairment charges that we may take in the future could be material to our consolidated results of operations and financial condition. Fiscal Year 2020 Annual Goodwill Impairment Test As of February 1, 2020, we completed our annual goodwill impairment test for our reporting units.
Any impairment charges that we may take in the future could be material to our consolidated results of operations and financial condition.
See the “Segment Operating Results” below for additional details on each segment’s revenue and Adjusted EBITDA performance . Cost of Sales: Cost of sales for the year ended April 30, 2021 increased $34.3 million, or 6%, as compared with the prior year. Gross margin was consistent with the prior year at approximately 32.2% .
See the “Segment Operating Results” below for additional details on each segment’s revenue and Adjusted EBITDA performance . Cost of Sales: Cost of sales for the year ended April 30, 2023 decreased $8.1 million, or 1% as compared with the prior year. On a constant currency basis, cost of sales increased 2% as compared with the prior year.
This program will include the exit of certain leased office space beginning in the first quarter of fiscal year 2023 and the reduction of our occupancy at other facilities. In addition, the program will include severance related charges for the elimination of certain positions.
This program includes severance related charges for the elimination of certain positions, the exit of certain leased office space which began in the first quarter of fiscal year 2023 and the reduction of our occupancy at other facilities. We are reducing our real estate square footage occupancy by approximately 22%.
Contractual Obligations and Commercial Commitments A summary of contractual obligations and commercial commitments, excluding unrecognized tax benefits further described in Note 13, “Income Taxes,” of the Notes to Consolidated Financial Statements , as of April 30, 2022 is as follows: Payments Due by Period Total Within Year 1 2–3 Years 4–5 Years After 5 Years Total debt (1) $ 787.4 $ 18.8 $ 768.6 $ — $ — Interest on debt (2) 28.4 15.3 13.1 — — Non-cancellable leases 197.0 28.1 51.0 40.4 77.5 Minimum royalty obligations 444.1 108.6 163.3 102.1 70.1 Other operating commitments 68.0 41.4 26.4 0.2 — Total $ 1,524.9 $ 212.2 $ 1,022.4 $ 142.7 $ 147.6 (1) Total debt is exclusive of unamortized issuance costs of $0.3 million.
Contractual Obligations and Commercial Commitments A summary of contractual obligations and commercial commitments, excluding unrecognized tax benefits further described in Note 13, “Income Taxes,” of the Notes to Consolidated Financial Statements , as of April 30, 2023 is as follows: Payments Due by Period (in millions) Total Within Year 1 2–3 Years 4–5 Years After 5 Years Total debt (1) $ 749.0 $ 5.0 $ 35.0 $ 709.0 $ — Interest on debt (2) 164.3 33.9 74.4 56.0 — Non-cancellable leases 171.5 26.5 48.5 32.3 64.2 Minimum royalty obligations 385.5 98.1 147.5 93.6 46.3 Other operating commitments 85.2 51.4 33.7 0.1 — Total $ 1,555.5 $ 214.9 $ 339.1 $ 891.0 $ 110.5 (1) Total debt is exclusive of unamortized issuance costs of $0.7 million.
See Note 7, “Restructuring and Related (Credits) Charges” for more details on these (credits) charges. For the impact of our restructuring program on diluted earnings per share, see the section below, “Diluted Earnings per Share (EPS).” In May 2022, the Company initiated a global program to restructure and align our cost base with current and anticipated future market conditions.
See Note 11, "Goodwill and Intangible Assets" for details on these charges. Restructuring and Related Charges (Credits): Fiscal Year 2023 Restructuring Program In May 2022, the Company initiated a global program to restructure and align our cost base with current and anticipated future market conditions.
The amount of the pretax and the related income tax impact for the adjustments included in the table below are presented in the section above, “Provision for Income Taxes.” Year Ended April 30, 2022 2021 US GAAP EPS $ 2.62 $ 2.63 Adjustments: Restructuring and related (credits) charges (0.02 ) 0.44 Foreign exchange losses (gains) on intercompany transactions 0.02 (0.02 ) Amortization of acquired intangible assets 1.21 1.08 Gain on sale of certain assets (0.05 ) — Income tax adjustments 0.38 (0.13 ) Non-GAAP Adjusted EPS $ 4.16 $ 4.00 On a constant currency basis, Adjusted EPS increased 1% primarily due to a lower Non-GAAP Adjusted Effective Tax Rate, partially offset by lower Other income, net and, to a lesser extent, lower Adjusted OI.
The amount of the pretax and the related income tax impact for the adjustments included in the table below are presented in the section above, “Provision for Income Taxes.” Year Ended April 30, 2023 2022 US GAAP EPS $ 0.31 $ 2.62 Adjustments: Impairment of goodwill 1.77 — Legal settlement 0.05 — Pension income related to the wind up of the Russia plan (0.02) — Restructuring and related charges (credits) 0.66 (0.02) Foreign exchange losses on intercompany transactions, including the write off of certain cumulative translation adjustments 0.01 0.02 Amortization of acquired intangible assets 1.21 1.21 Gain on sale of businesses and certain assets (0.11) (0.05) Income tax adjustments (0.04) 0.38 Non-GAAP Adjusted EPS $ 3.84 $ 4.16 On a constant currency basis, Adjusted EPS decreased 8% primarily due to an increase in interest expense, lower pension income, and lower Adjusted OI.
The information set forth in Part II, Item 8, “Financial Statements and Supplementary Data” in Note 2, “Summary of Significant Accounting Policies, Recently Issued and Recently Adopted Accounting Standards,” of the Notes to Consolidated Financial Statements of this Annual Report on Form 10-K is incorporated by reference and describes these new accounting standards.
The information set forth in Part II, Item 8, “Financial Statements and Supplementary Data” in Note 2, “Summary of Significant Accounting Policies, Recently Issued and Recently Adopted Accounting Standards,” of the Notes to Consolidated Financial Statements of this Annual Report on Form 10-K is incorporated by reference and describes these new accounting standards. 51 Index CRITICAL ACCOUNTING POLICIES AND ESTIMATES: The preparation of our Consolidated Financial Statements and related disclosures in conformity with US GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements, and revenue and expenses during the reporting period.
This increase was due to the higher operating income and, to a lesser extent, lower interest expense. These factors were partially offset by higher provision for income taxes and foreign exchange transaction losses for the year ended April 30, 2021 as compared to gains for the year ended April 30, 2020.
This decrease was due to lower operating income and, to a lesser extent, higher interest expense and lower other income. These were partially offset by a lower provision for income taxes and, to a lesser extent, an increase in the gain on sale of businesses and certain assets, and foreign exchange transaction gains.
A reporting unit is the operating segment unless, at businesses one level below that operating segment– the “component” level, discrete financial information is prepared and regularly reviewed by management, and the component has economic characteristics that are different from the economic characteristics of the other components of the operating segment, in which case the component is the reporting unit.
A reporting unit is the operating segment unless, at businesses one level below that operating segment– the “component” level, discrete financial information is prepared and regularly reviewed by management, and the component has economic characteristics that are different from the economic characteristics of the other components of the operating segment, in which case the component is the reporting unit. 52 Index As part of the annual impairment test, we may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount.
Excluding revenue from acquisitions, organic revenue increased 12% on a constant currency basis. This increase was primarily due to an increase in placements in Talent Development Services, partially offset by a decrease in student enrollments in University Services. For the year ended April 30, 2022, University Services experienced an 8% decrease in online enrollment.
This decrease was also due University Services due to a decrease in student enrollments. For the year ended April 30, 2022, University Services experienced an 8% decrease in online enrollment. Adjusted EBITDA: On a constant currency basis, Adjusted EBITDA decreased 12% as compared with the prior year.
Restructuring and Related Charges: Business Optimization Program For the years ended April 30, 2021 and 2020, we recorded pretax restructuring charges of $33.4 million and $32.8 million, respectively, related to this program.
Business Optimization Program For the years ended April 30, 2023 and 2022, we recorded pretax restructuring charges of $0.5 million and credits of $1.4 million, respectively, related to this program. These charges (credits) are reflected in Restructuring and related charges (credits) in the Consolidated Statements of Income.
This more than offset a 4% decline in Education Publishing due to lower US college enrollment and some easing of prior year COVID-19-related favorability for courseware and content and, to a lesser extent, test preparation. Adjusted EBITDA: On a constant currency basis, Adjusted EBITDA increased 10% as compared with the prior year.
This decrease was due to Academic Publishing due to a decrease in education publishing due to lower US college enrollment and some easing of prior year COVID-19-related favorability for courseware and content and, to a lesser extent, test preparation. This was partially offset by an increase in professional publishing.
This increase was primarily driven by strong recovery in Professional Learning from prior year COVID-19 lockdown impacts primarily due to an increase in corporate training and, to a lesser extent, an increase in professional publishing compared with the prior year.
This increase was primarily due to an increase in placements in talent development (Wiley Edge) and, to a lesser extent, driven by a strong recovery in assessments (corporate training) from prior year COVID-19 lockdown impacts. For the year ended April 30, 2022, we delivered approximately 112% growth in IT talent placements in talent development (Wiley Edge).
Cash collected in advance for subscriptions is used by us for a number of purposes, including funding operations, capital expenditures, acquisitions, debt repayments, dividend payments, and share repurchases. 2021 compared to 2020 The following is a summary of the $71.5 million change in Net cash provided by operating activities for the year ended April 30, 2021 as compared with the year ended April 30, 2020 (amounts in millions).
Cash collected in advance for subscriptions is used by us for a number of purposes, including funding operations, capital expenditures, acquisitions, debt repayments, dividend payments, and share repurchases.
Operating and Administrative Expenses: Operating and administrative expenses for the year ended April 30, 2022 increased $56.9 million, or 6%, as compared with the prior year.
This increase was primarily due to higher employee costs and, to a lesser extent, higher student acquisition costs in Academic and increased royalty costs in Research. Operating and Administrative Expenses: Operating and administrative expenses for the year ended April 30, 2022, increased $56.9 million, or 6%, as compared with the prior year.
These actions yielded annualized cost savings of approximately $8.0 million. We anticipate ongoing facility-related costs associated with certain properties to result in additional restructuring charges in future periods. These (credits) charges are reflected in Restructuring and related (credits) charges in the Consolidated Statements of Income (Loss).
These actions are anticipated to yield annualized cost savings estimated to be approximately $70 million. We anticipate ongoing facility-related costs associated with certain properties to result in additional restructuring charges in future periods. See Note 7, “Restructuring and Related Charges (Credits)” for more details on these charges.
See Note 4, “Acquisitions” for more information related to the acquisitions that occurred in the years ended April 30, 2022 and 2021. Additionally, cash outflows for the acquisitions of publication rights and other activities decreased $24.0 million.
The decrease in cash used in investing activities was due to a decrease of $224.2 million in cash used to acquire businesses. See Note 4, “Acquisitions and Divestitures” for more information related to the acquisitions that occurred in the years ended April 30, 2022 and 2021.
On a constant currency basis, revenue increased 5% as compared with the prior year. Excluding revenue from acquisitions, organic revenue increased 3% on a constant currency basis. This increase was primarily due to continued growth in Open Access in Research Publishing due to continued growth in transformational “read and publish” agreements.
Revenue: Research revenue for the year ended April 30, 2022 increased $96.0 million, or 9%, as compared with the prior year on a reported and constant currency basis. Excluding revenue from acquisitions, organic revenue increased 5% on a constant currency basis. This increase was primarily due to an increase in publishing and, to a lesser extent corporate solutions.
Adjusted OI and Adjusted EBITDA on a constant currency basis and excluding restructuring charges and the impairment of goodwill and intangible assets increased 20% and 16% respectively, as compared with the prior year.
Adjusted EBITDA on a constant currency basis and excluding restructuring charges (credits), decreased 2% as compared with the prior year primarily due to a decrease in Adjusted OI.
For the year ended April 30, 2022, we delivered approximately 112% growth in IT talent placements in Talent Development Services. Adjusted EBITDA: On a constant currency basis, Adjusted EBITDA decreased 26% as compared with the prior year.
For the year ended April 30, 2023, we delivered approximately 18% growth in talent placements in talent development (Wiley Edge). Adjusted EBITDA: On a constant currency basis, Adjusted EBITDA increased 18% as compared with the prior year. This was due to revenue, partially offset by increased inflationary impacts on placements, and investments to scale talent development (Wiley Edge).
As part of the annual impairment test, we may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount.
Based on our qualitative assessment, we determined it was not more likely than not that the fair value of any reporting unit was less than its carrying amount. As such, it was not necessary to perform a quantitative test.
We concluded that the fair values of these indefinite-lived intangible assets were above their carrying values and, therefore, there was no indication of impairment. We estimate the fair value of these assets using a relief from royalty method under an income approach.
The key assumptions for this method were revenue projections, a royalty rate as determined by management in consultation with valuation experts, and a discount rate. We concluded that the fair values of these indefinite-lived intangible assets were above their carrying values and therefore, there was no indication of impairment.
This is primarily due to an anticipated less favorable mix of earnings by country and an increase in the UK statutory rate.
Our Adjusted Effective Tax Rate is expected to rise from 17.9% in fiscal year 2023 to approximately 25% in fiscal year 2024. Wiley’s higher tax rate is primarily due to a less favorable mix of earnings by country and an increase in the UK statutory rate.
This increase was due to lower operating expenses and, to a lesser extent, higher revenues.
This decrease was primarily due to lower revenues and, to a lesser extent, inflationary impacts on inventory, and higher technology and distribution costs.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeDuring the year ended April 30, 2020, we recorded foreign currency translation losses in Accumulated other comprehensive loss, net of tax of approximately $28.6 million, primarily as a result of the fluctuations of the US dollar relative to the British pound sterling and, to a lesser extent, the euro.
Biggest changeDuring the year ended April 30, 2023, we recorded foreign currency translation gains in Total accumulated other comprehensive loss, net of tax of approximately $3.2 million primarily as a result of the fluctuations of the US dollar relative to the euro and the British pound sterling, partially offset by fluctuations of the US dollar relative to the Australian dollar.
Exchange rate gains or losses related to foreign currency transactions are recognized as transaction gains or losses on the Consolidated Statements of Income (Loss) as incurred. Under certain circumstances, we may enter into derivative financial instruments in the form of foreign currency forward contracts to hedge against specific transactions, including intercompany purchases and loans.
Exchange rate gains or losses related to foreign currency transactions are recognized as transaction gains or losses on the Consolidated Statements of Income as incurred. Under certain circumstances, we may enter into derivative financial instruments in the form of foreign currency forward contracts to hedge against specific transactions, including intercompany purchases and loans.
Cash is generally collected in advance from subscribers by the subscription agents and is principally remitted to us between the months of December and April. Although at fiscal yearend we had minimal credit risk exposure to these agents, future calendar year subscription receipts from these agents are highly dependent on their financial condition and liquidity.
Cash is generally collected in advance from subscribers by the subscription agents and is principally remitted to us between the months of December and April. Although at fiscal year-end we had minimal credit risk exposure to these agents, future calendar year subscription receipts from these agents are highly dependent on their financial condition and liquidity.
On an annual basis, a hypothetical 1% change in interest rates for the $287.0 million of unhedged variable rate debt as of April 30, 2022 would affect net income and cash flow by approximately $2.3 million. Foreign Exchange Rates: Fluctuations in the currencies of countries where we operate outside the US may have a significant impact on financial results.
On an annual basis, a hypothetical 1% change in interest rates for the $249.1 million of unhedged variable rate debt as of April 30, 2023 would affect net income and cash flow by approximately $2 million. Foreign Exchange Rates: Fluctuations in the currencies of countries where we operate outside the US may have a significant impact on financial results.
The percentage of consolidated revenue for the year ended April 30, 2022 recognized in the following currencies (on an equivalent US dollar basis) were approximately: 56% US dollar, 25% British pound sterling, 10% euro, and 9% other currencies. Our significant investments in non-US businesses are exposed to foreign currency risk.
The percentage of consolidated revenue for the year ended April 30, 2023 recognized in the following currencies (on an equivalent US dollar basis) were approximately: 57% US dollar, 24% British pound sterling, 10% euro, and 9% other currencies. Our significant investments in non-US businesses are exposed to foreign currency risk.
Although no book customer accounts for more than 8% of total consolidated revenue and 10% of accounts receivable at April 30, 2022, the top 10 book customers account for approximately 12% of total consolidated revenue and approximately 18% of accounts receivable at April 30, 2022. 52 Index
Although no book customer accounts for more than 6% of total consolidated revenue and 10% of accounts receivable at April 30, 2023, the top 10 book customers account for approximately 10% of total consolidated revenue and approximately 20% of accounts receivable at April 30, 2023. 58 Index

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