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What changed in JOHN WILEY & SONS, INC.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of JOHN WILEY & SONS, INC.'s 2023 and 2024 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 2024 report.

+416 added−386 removedSource: 10-K (2024-06-26) vs 10-K (2023-06-26)

Top changes in JOHN WILEY & SONS, INC.'s 2024 10-K

416 paragraphs added · 386 removed · 262 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

54 edited+27 added−39 removed33 unchanged
Biggest changeOur 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.
Biggest changeAs a result, in the three months ended July 31, 2023 we reorganized our segments and our new structure consists of three reportable segments which includes Research (no change), Learning, and Held for Sale or Sold, as well as a Corporate expense category (no change). Prior period segment results have been recast to the new segment presentation.
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.
As a member of the CEO Action for Diversity and Inclusion, Wiley demonstrates its commitment to sustained, concrete actions that advance 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.
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.
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 TM platform, provides the user with intuitive navigation, enhanced discoverability, expanded functionality, and a range of personalization options.
We develop content in a digital format that can be used for both digital and print products, resulting in productivity and efficiency savings and enabling print-on-demand delivery. Book content is available online through Wiley Online Library (delivered through our Literatum platform), WileyPLUS , zyBooks®, alta ™, and other proprietary platforms.
We develop content in a digital format that can be used for both digital and print products, resulting in productivity and efficiency savings and enabling print-on-demand delivery. Book content is available online through Wiley Online Library (delivered through our Literatum TM platform), WileyPLUS TM , zyBooks®, alta® ™, and other proprietary platforms.
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.
The graphs below present revenue by product type for the years ended April 30, 2024 and 2023: 2024 2023 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.
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.
CrossKnowledge 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.
The most famous of these metrics, the Impact Factor, is based on the frequency with which an average article is cited in the JCR report year. Alongside other metrics, this makes it an important tool for evaluating a journal’s impact on ongoing research.
The most prominent of these metrics, the Impact Factor, is based on the frequency with which an average article is cited in the JCR report year. Alongside other metrics, this makes it an important tool for evaluating a journal’s impact on ongoing research.
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.
These pillars reflect our DEI near-term priorities to propel a sustainable, inclusive organization that embodies inclusion 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.
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.
Academic Academic generates the majority of its revenue from contracts with its customers in the following revenue streams: • Print and Digital Publishing • Digital Courseware • 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.
Our goal is to provide colleagues with learning opportunities and experiences at every stage of their journey at Wiley. We help colleagues upskill and thrive by leveraging the power of our internal products and tapping into our external partnerships. We focus on delivering quality curated resources, customized learning paths, and comprehensive development programs.
Our goal is to provide colleagues with learning opportunities and experiences during their journey at Wiley. We help colleagues upskill and thrive by leveraging the power of our internal products and tapping into our external partnerships. We focus on delivering quality curated resources, customized learning paths, and comprehensive development programs.
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.
Wiley’s performance in the 2022 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 1,562 Wiley journals were included in the reports.
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 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”) is an innovative model that blends Journal Subscription and Open Access offerings.
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.
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 internal development programs, our colleagues get practical advice on updating their internal resumes and honing their interviewing skills and have career conversations with our Talent team.
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.
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 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.
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”), Transformational Agreements (“pay to read and publish”), and Open Access (“pay to publish”) • Licensing, Backfiles, and Other. 6 Index Journal Subscriptions, Transformational Agreements, and Open Access As of April 30, 2024, we publish over 1,900 academic research journals.
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.
This includes programs, policies, and initiatives that promote inclusion and belonging with equity at the core; 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.
Learning experiences, formats and modules on topics such as leadership development, value creation, client orientation, change management, and corporate strategy are delivered on a cloud-based CrossKnowledge Learning Management System (LMS) platform that hosts more than 20,000 content assets (videos, digital learning modules, written files, etc.) in 18 languages. Its offering includes a collaborative e-learning publishing and program creation system.
Learning experiences, formats, and modules on topics such as leadership development, value creation, client orientation, change management, and corporate strategy are delivered on a cloud-based CrossKnowledge Learning Management System (LMS) platform that hosts more than 20,000 content assets (videos, digital learning modules, written files, etc.) in 18 languages.
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.
Literatum TM , 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 28,000 online books and hundreds of multivolume reference works, laboratory protocols and databases.
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.
Wiley journals ranked #1 in 34 categories across 28 of its titles and achieved 384 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.
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.
Communities served include business, finance, accounting, 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.
We ask colleagues to embody our three values—Learning Champion, Needle Mover, and Courageous Teammate—and assess their performance against these in addition to what they achieve against their goals.
We ask colleagues to embody our three values—Learning Champion, Needle Mover, and Courageous Teammate—and assess their performance against these in addition to what they achieve against their goals. These values define who we are as a company and what we stand for.
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.
For fiscal year 2024, approximately 96% of Research revenue is generated by digital and online products, and services. Research revenue by product type includes Research Publishing and Research Solutions.
These 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.
Our human capital metrics summary (excluding placement candidates in Wiley Edge) as of April 30, 2024: CATEGORY METRIC EMPLOYEES By Region Americas 39 % APAC 23 % EMEA 38 % DIVERSITY AND INCLUSION Global Gender Representation % Female Colleagues 57 % % Female Senior Leaders (Vice President and above) 43 % US Person of Color (POC) Representation* % POC 27 % % POC Senior Leaders (Vice President and above) 17 % * 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.
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.
Publishing centers include Australia, China, Germany, India, the UK, and the US. Research revenue accounted for approximately 56% of our consolidated revenue in the year ended April 30, 2024, with a 31.8% Adjusted EBITDA margin.
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.
We continue to use Achievers, as our recognition platform that is designed so our colleagues can recognize each other to create a culture of recognition and celebrate success. In fiscal year 2024, we had over 32,000 recognitions. We conduct a talent review annually, focusing on high-performing and high-potential talent, diversity, and succession for our most critical roles.
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.
Learning: Our Learning segment includes Academic and Professional, 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 learning, development, publishing, and assessment services for businesses and professionals.
As with our subscription portfolio, a number of the Gold Open Access Journals are published under contract for, or in partnership with, prestigious societies, including the American Geophysical Union, the American Heart Association, the European Molecular Biology Organization, and the British Ecological Society.
All Open Access articles are subject to the same rigorous peer-review process applied to our subscription-based journals. As with our subscription portfolio, a number of the Gold Open Access Journals are published under contract for, or in partnership with, prestigious societies, including the American Geophysical Union, the American Heart Association, and the British Ecological Society.
We are committed to identifying, growing, and retaining top talent and ensuring we have the right skills for the future. We establish key development action planning opportunities for each colleague to build bench strength and review development progress and mobility regularly. Environment We continue our journey to support the sustainability of our planet.
We are committed to identifying, growing, and retaining top talent and ensuring we have the right skills for the future. We establish key development action planning opportunities for each colleague to build bench strength and review development progress and mobility regularly. Environment Wiley is committed to environmental sustainability as an integral part of its operations and corporate strategy.
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.
Scientific, Technical, and Medical (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.
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.
Professional Professional generates the majority of its revenue from contracts with its customers in the following revenue streams: • Print and Digital Publishing • Assessments • Licensing and Other 10 Index Print and Digital Publishing Professional books, which include business and finance, technology, professional development for educators, and other professional categories, as well as the Dummies TM brand, are sold to brick-and-mortar and online retailers, wholesalers who supply such bookstores, college bookstores, individual practitioners, corporations, and government agencies.
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.
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. The Learning segment provides scientific, professional, and education print and digital books, digital courseware to libraries, corporations, students, professionals, and researchers, as well as assessment services to businesses and professionals.
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.
We continue to add new titles, revise existing titles, and discontinue the sale of others in the normal course of our business. 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.
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.
These strategies include driving publishing output to meet the global demand for peer-reviewed research and expanding platform and service offerings for corporations and societies. Learning strategies include selectively scaling high-value digital content, courseware, and assessments where the Company sees opportunity.
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 continue to implement strategies to efficiently and effectively manage print revenue declines while driving growth in our digital lines of business. 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 • Learning • Held for Sale or Sold 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 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.
Most materials originate by the authors themselves or as the result of suggestions or solicitations by editors. 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 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.
Book sales for Learning 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.
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.
Assessments Our assessments offerings include high-demand soft-skills training solutions that are delivered to organizational clients and their employees through online digital delivery platforms, either directly or through an authorized distributor network of independent consultants, trainers, and coaches.
See Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in the section "Segment Operating Results" of this Annual Report on Form 10-K for further details. Approximately 65% of Academic revenue is from digital and online products and services. 8 Index Academic revenue by product type includes Academic Publishing and University Services.
See Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the section “Segment Operating Results” of this Annual Report on Form 10-K for further details and for the reconciliation of Adjusted Operating Income to Adjusted EBITDA. For fiscal year 2024, approximately 59% of Learning revenue is from digital and online products and services.
We provide specific workflows and infrastructure to authors, funders, and institutions to support the requirements of Open Access. We offer two Open Access publishing models. The first of these is Hybrid Open Access where authors publishing in the majority of our paid subscription journals, after article acceptance, are offered the opportunity to make their individual research article openly available online.
The first of these is Hybrid Open Access where authors publishing in the majority of our paid subscription journals, after article acceptance, are offered the opportunity to make their individual research article openly available online. 7 Index The second offering of the Open Access model is a growing portfolio of fully open access journals, also known as Gold Open Access Journals.
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.
Health & Well-Being Colleague well-being is at the core of our business, as it is critical we provide tools and resources to help colleagues and their families be healthy, and an environment that allows us to be at our best at work and in life.
We are focused on four DEI Strategic Pillars—Fostering an Inclusive Community, Enhancing our Foundation, Understanding our People, and Creating Impact Through our Business.
By prioritizing inclusion and belonging, we can create a more innovative, productive, and engaged workforce that benefits everyone. 12 Index We are focused on four diversity, equity, and inclusion (DEI) Strategic Pillars—Fostering an Inclusive Community, Enhancing our Foundation, Understanding our People, and Creating Impact Through our Business.
University Services Our University Services business offers institutions and their students a rich portfolio of education technology and student and faculty support services, allowing the institutions to reach more students online with their own quality academic programs. Many of Wiley’s client institutions are regional state universities or small liberal arts colleges.
University Services On January 1, 2024, we completed the sale of University Services, and this business previously offered institutions and their students a rich portfolio of education technology, and student and faculty support services, allowing the institutions to reach more students online with their own quality academic programs.
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.
We generate advertising revenue from print and online journal subscription and controlled circulation products, our online publishing platform, Literatum TM , online events such as webinars and virtual conferences, community interest websites such as analyticalscience.wiley.com , and other websites. Journal and article reprints are primarily used by pharmaceutical companies and other industries for marketing and promotional purposes.
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.
We are actively engaging with our suppliers and have 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. We are reducing our physical office footprint and working to ensure responsible energy consumption.
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.
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. 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.
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.
Author compensation models include royalties, which vary depending on the nature of the product and work-for-hire. 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.
Research revenue accounted for approximately 54% of our consolidated revenue in the year ended April 30, 2023, with a 34.9% Adjusted EBITDA margin. See Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in the section "Segment Operating Results" of this Annual Report on Form 10-K for further details.
See Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the section “Segment Operating Results” of this Annual Report on Form 10-K for further details and for the reconciliation of Adjusted Operating Income to Adjusted EBITDA.
Talent accounted for approximately 12% of our consolidated revenue in the year ended April 30, 2023, with a 21.1% Adjusted EBITDA margin. See Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in the section "Segment Operating Results" of this Annual Report on Form 10-K for further details.
See Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the section “Segment Operating Results” of this Annual Report on Form 10-K for further details and for the reconciliation of Adjusted Operating Income to Adjusted EBITDA.
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.
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. As of April 30, 2024, we had one global warehousing and distribution facility remaining, which is in the UK.
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.
We continue to implement strategies to efficiently and effectively manage print revenue declines while driving growth in our digital lines of business. 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.
Leveraging Wiley's Everything DiSC assessment tools and resources, our colleagues can better understand themselves and others, creating a common language that makes interactions more collaborative and effective. 13 Index Through our Pay@Wiley journey, we enhanced our colleague and manager understanding of pay through our education programs, and raised transparency by sharing segment in range and publishing our first global equitable pay study.
Leveraging Wiley's Everything DiSC assessment tools and resources, our colleagues can better understand themselves and others, creating a common language that makes interactions more collaborative and effective.
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.
Licensing and Other We also engage in co-publishing titles with international publishers and receive licensing revenue from photocopies, reproductions, translations, and digital uses of our content.
We set a near and long-term company-wide emissions target, including being net zero by 2040. We are responding to the SBTi’s urgent call for corporate climate action by aligning with 1.5°C and net-zero through the Business Ambition for 1.5°C campaign.
We are responding to the SBTi’s urgent call for corporate climate action by aligning with 1.5°C and net-zero through the Business Ambition for 1.5°C campaign. Our environmental strategy is also focused on sustainable publishing practices, optimizing resource use, and promoting digital products to minimize our environmental impact.
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.
Learning revenue by product type includes Academic and Professional. The graphs below present revenue by product type for the years ended April 30, 2024 and 2023: 2024 2023 Key strategies for the Learning business include selectively scaling high-value digital content, courseware, and assessments where the Company sees opportunity.
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Wiley is a global leader in scientific research and career-connected education, unlocking human potential by enabling discovery, powering education, and shaping workforces. For over 200 years, Wiley has fueled the world’s knowledge ecosystem. Today, our high-impact content, platforms, and services help researchers, learners, institutions, and corporations achieve their goals in an ever-changing world.
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Wiley is one of the world’s largest publishers and a global leader in research and learning. The Company's content, services, platforms, and knowledge networks are tailored to meet the evolving needs of its customers and partners, including researchers, students, instructors, professionals, institutions, and corporations. Wiley empowers knowledge seekers to transform today’s biggest obstacles into tomorrow’s brightest opportunities.
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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.
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For more than two centuries, the Company has been delivering on its timeless mission to unlock human potential. Wiley is a predominantly digital company with over 83% of its revenue for fiscal year 2024 generated by digital products and services excluding the Held for Sale or Sold segment revenue.
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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.
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For fiscal year 2024, 48% of revenue excluding the Held for Sale or Sold segment revenue is recurring which includes revenue that is contractually obligated or set to recur with a high degree of certainty. On June 1, 2023, Wiley’s Board of Directors approved a plan to divest certain businesses that we determined are non-core businesses.
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There were no changes to our consolidated financial results.
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Those businesses are University Services, Wiley Edge, and CrossKnowledge. On January 1, 2024 we completed the sale of University Services. The sale of Wiley Edge, with the exception of its India operation, was completed on May 31, 2024. The sale of Wiley Edge’s India operation will be finalized later in calendar year 2024.
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Academic Publishing is the combination of the former Education Publishing line and professional publishing offerings; • Talent is the combination of the former Talent Development line, and our assessments (corporate training) and corporate learning offerings.
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We expect to complete the sale of CrossKnowledge by the second quarter of fiscal year 2025.
Removed
The Academic segment provides scientific, professional, and education print and digital books, digital courseware, and test preparation services, as well as engages in the comprehensive management of online degree programs for universities.
Added
There were no changes to our consolidated financial results. • Research is unchanged and includes the reporting lines of Research Publishing and Research Solutions; • Learning includes the Academic and Professional reporting lines and consists of publishing and related knowledge solutions; • Held for Sale or Sold includes businesses held-for-sale including Wiley Edge, and CrossKnowledge, as well as those sold in fiscal year 2024 which includes University Services, and Tuition Manager, and in fiscal year 2023 Test Prep and Advancement Courses.
Removed
The Talent segment services include sourcing, training, and preparing aspiring students and professionals to meet the skill needs of today’s technology careers and placing them with large companies and government agencies. It also includes assessments (corporate training) and corporate learning offerings. Our operations are primarily located in the United States (US), United Kingdom (UK), India, Sri Lanka, and Germany.
Added
Our operations are primarily located in the United States (US), United Kingdom (UK), India, Sri Lanka, and Germany. In the year ended April 30, 2024, approximately 47% of our consolidated revenue was from outside the US.
Removed
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.
Added
Wiley’s business strategies are tightly aligned with healthy solid growth trends, including ever-increasing global research and development (R&D) spend leading to consistent growth in scientific research output, the transition to open research, and the increasing application of new knowledge into solutions to solve real world problems.
Removed
(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.
Added
We provide specific workflows and infrastructure to authors, funders, and institutions to support the requirements of Open Access. We offer two Open Access publishing models.
Removed
The second offering of the Open Access model is a growing portfolio of fully open access journals, also known as Gold Open Access Journals. All Open Access articles are subject to the same rigorous peer-review process applied to our subscription-based journals.
Added
Research Solutions Research Solutions business generate revenue by providing platform and services to corporations and societies through various products that help them attract and retain customer base. Platform and workflow solutions for societies and publishers include production and content hosting, submissions and peer review support, editorial and copyediting services.
Removed
Research Solutions Research Solutions is principally comprised of our Atypon platforms business and our corporate and society services offerings, including advertising, career-centers, knowledge hubs, databases, consulting, and reprints.
Added
Our recruitment platform and services business provide platform licensing and full-service career site management by building custom sites for corporations and societies.
Removed
Corporate and Society Service Offerings Corporate and society service offerings include advertising, spectroscopy software and spectral databases, and job board software and career center services, which includes the products and services from our acquisition of Madgex Holdings Limited (Madgex) and Bio-Rad Laboratories Inc.’s Informatics products (Informatics).
Added
Products are sold to brick-and-mortar and online retailers, wholesalers who supply such bookstores, college bookstores, individual practitioners, corporations, and government agencies. 8 Index Publishing centers include Australia, Germany, India, the UK, and the US. Learning accounted for approximately 31% of our consolidated revenue in the year ended April 30, 2024, with a 34.9% Adjusted EBITDA margin.
Removed
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.
Added
Subscription-based products are updated on a more frequent basis. We generally contract independent printers and binderies globally for their services, using a variety of suppliers and materials to support our range of needs.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

51 edited+28 added−11 removed84 unchanged
Biggest changeOperational Risks We may not realize the anticipated cost savings and benefits from, or our business may be disrupted by, our business transformation and restructuring efforts. We continue to transform our business from a traditional publishing model to a global provider of content-enabled solutions with a focus on digital products and services.
Biggest changeWe continue to transform our business from a traditional publishing model to a global provider of content-enabled solutions with a focus on digital products and services. We will continue to explore opportunities to develop new business models and enhance the efficiency of our organizational structure.
Any disruptions, delays, or deficiencies in the design or implementation of a new system could result in increased costs, disruptions in operations, or delays in the collection of cash from our customers, as well as having an adverse effect on our ability to timely report our financial results, all of which could materially adversely affect our business, consolidated financial position, and results of operations.
Any disruptions, delays, or deficiencies in the design or implementation of a new ERP system could result in increased costs, disruptions in operations, or delays in the collection of cash from our customers, as well as having an adverse effect on our ability to timely report our financial results, all of which could materially adversely affect our business, consolidated financial position, and results of operations.
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.
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.
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.
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. If we fail to maintain proper and effective internal controls, our ability to produce accurate financial statements on a timely basis could be impaired.
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.
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 16% of total annual consolidated revenue and no one agent accounts for more than 10% of total annual consolidated revenue.
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 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 an impact on our consolidated financial position and results of operations as substantially all our taxable income is earned outside the US.
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.
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. 24 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.
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.
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.
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.
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. 16 Index The Internet has made the used and rental textbook markets more efficient and has significantly increased student access to used and rental textbooks.
However, the security measures implemented by us or by our outside service providers may not be effective, and our systems (and those of our outside service providers) may be vulnerable to theft, loss, damage and interruption from a number of potential sources and events, including unauthorized access or security breaches, cyber-attacks, computer viruses, power loss, or other disruptive events.
However, the security measures implemented by us or by our outside service providers may not be effective, and our systems (and those of our outside service providers) may be vulnerable to theft, loss, damage and interruption from a number of potential sources and events, including unauthorized access or security breaches, cyberattacks, computer viruses, power loss, or other disruptive events.
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.
We were 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 2025. 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.
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.
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.
In our journal publishing business, we have a trade concentration and credit risk related to subscription agents, and in our book business the industry has a concentration of customers in national, regional, and online bookstore chains. Changes in the financial position and liquidity of our subscription agents and customers could adversely impact our consolidated financial position and results of operations.
In our journal publishing business, we have a trade concentration and credit risk related to subscription agents, and in our book business the industry has a concentration of customers in national, regional, and online book resellers. Changes in the financial position and liquidity of our subscription agents and customers could adversely impact our consolidated financial position and results of operations.
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).
The security compliance landscape continues to evolve, requiring us to stay apprised of changes in cybersecurity, privacy laws and regulations, such as the following, but not limited to 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).
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.
Intangible assets with definite lives, which were $496.3 million at April 30, 2024, 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.
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.
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 Learning business.
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.
Changes in these factors affect our plan funding, consolidated financial position, and results of operations. 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.
The market price for our common stock may be influenced by many factors, including: • Actual or anticipated changes in our consolidated operating results; • Variances between actual consolidated operating results and the expectations of securities analysts, investors, and the financial community; • Changes in financial estimates by us or by any securities analysts who might cover our stock; • Conditions or trends in our industry, the stock market, or the economy; • The level of demand for our stock, the stock market price, and volume fluctuations of comparable companies; • Announcements by us or our competitors of new product or service offerings, significant acquisitions, strategic partnerships, or divestitures; • Announcements of investigations or regulatory scrutiny of our operations or lawsuits filed against us; • Capital commitments; • Investors’ general perception of the Company and our business; • Recruitment or departure of key personnel; and • Sales of our common stock, including sales by our directors and officers or specific stockholders.
The market price for our common stock may be influenced by many factors, including: • Actual or anticipated changes in our consolidated operating results; • Variances between actual consolidated operating results and the expectations of securities analysts, investors, and the financial community; • Changes in financial estimates by us or by any securities analysts who might cover our stock; • Conditions or trends in our industry, the stock market, or the economy; • The level of demand for our stock, the stock market price, and volume fluctuations of comparable companies; • Announcements by us or our competitors of new product or service offerings, significant acquisitions, strategic partnerships, or divestitures; • Announcements of investigations or regulatory scrutiny of our operations or lawsuits filed against us; • Capital commitments; • Investors’ general perception of the Company and our business; • Recruitment or departure of key personnel; and • Sales of our common stock, including sales by our directors and officers or specific stockholders. 25 Index Adverse publicity could negatively impact our reputation, which could adversely affect our 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.
In our Research segment, approximately 28% of the articles we published in 2023 included a China based author. This compares to the industry percentage which is approximately 29% of articles published in 2023 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.
Our book business is not dependent upon a single customer; however, the industry is concentrated in national, regional, and online bookstore chains.
Our book business is not dependent upon a single customer; however, the industry is concentrated in national, regional, and online book resellers.
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.
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. Business, which could adversely impact our consolidated financial position and results of operations .
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.
Although no book customer accounts for more than 6% of total consolidated revenue and 12% of accounts receivable at April 30, 2024, the top 10 book customers account for approximately 11% of total consolidated revenue and approximately 27% of accounts receivable at April 30, 2024.
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 percentage of consolidated revenue for the year ended April 30, 2024 recognized in the following currencies (on an equivalent US dollar basis) were approximately: 53% US dollar, 27% British pound sterling, 11% euro, and 9% other currencies. In addition, our floating interest rate loans and borrowings are subject to risk from changes in interest rates.
This activity could adversely impact our open access publishing and article output by causing us to potentially pause publication, retract articles, or halt publication of a journal, which could adversely impact our business and consolidated financial position and results of operations. 20 Index Financial Risks Changes in global economic conditions could impact our ability to borrow funds and meet our future financing needs.
This activity could adversely impact our open access publishing and article output by causing us to potentially pause publication, retract articles, or halt publication of a journal, which could adversely impact our business and consolidated financial position and results of operations. 21 Index Financial Risks Volatility in the financial markets and a related global economic downturn could impact our ability to access global credit markets and meet our future financing needs.
The future impact that global economic, public health and geopolitical conditions will have on our business operations and financial results is uncertain and will depend on numerous evolving factors and developments that we are not able to reliably predict or mitigate.
The future impact that global economic, public health and geopolitical conditions will have on our business operations and financial results is uncertain and will depend on numerous evolving factors and developments that we are not able to reliably predict or mitigate. It is also possible that these conditions may impact other risks discussed in this section.
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 continue to restructure and realign our cost base with current and anticipated future market conditions, including our Global Restructuring Program.
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.
See Note 11 , “Goodwill and Intangible Assets” for further information related to goodwill and intangible assets, and the impairment charges recorded in the years ended April 30, 2024 and 2023 . 22 Index Changes in pension costs and related funding requirements may impact our consolidated financial position and results of operations.
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.
At April 30, 2024, we had $1,091.4 million of goodwill and $615.7 million of intangible assets, of which $119.4 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.
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 .
Notwithstanding our efforts to foresee and mitigate the effects of changes in external financial market or economic conditions, 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 .
Adverse publicity could negatively impact our reputation, which could adversely affect our consolidated financial position and results of operations. Our professional customers worldwide rely upon many of our publications to perform their jobs. It is imperative that we consistently demonstrate our ability to maintain the integrity of the information included in our publications.
Our professional customers worldwide rely upon many of our publications to perform their jobs. It is imperative that we consistently demonstrate our ability to maintain the integrity of the information included in our publications. 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.
Member states have until December 31, 2023, to transpose the Minimum Tax Directive into national legislation. The enactment of this and the heightened interest in and taxation of large multinational companies increase tax uncertainty and could ultimately have a material effect on our effective tax rate, income tax expense, net income, or cash flows.
The enactment of this and the heightened interest in and taxation of large multinational companies increase tax uncertainty and could ultimately have a material effect on our effective tax rate, income tax expense, net income, or cash flows.
Wiley's future results of operations could be adversely affected by changes in the effective tax rate as a result of a change in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities, the result of audits of previously filed tax returns, or changes in liabilities for uncertain tax positions, the cost of repatriation, or changes in tax laws and regulations and the interpretations thereof in the jurisdictions where we operate.
Wiley’s future results of operations could be adversely affected by changes in the effective tax rate as a result of a change in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities, the result of audits of previously filed tax returns, or changes in liabilities for uncertain tax positions, the cost of repatriation, or changes in tax laws and regulations and the interpretations thereof in the jurisdictions where we operate. 23 Index A number of international legislative and regulatory bodies have proposed legislation and begun investigations of the tax practices of multinational companies and, in the European union the tax policies of certain European Union member states.
Fluctuations in foreign currency exchange rates and interest rates could materially impact our consolidated financial condition and results of operations. Non-US revenues, as well as our substantial non-US net assets, expose our consolidated results to volatility from changes in foreign currency exchange rates.
Non-US revenues, as well as our substantial non-US net assets, expose our consolidated results to volatility from changes in foreign currency exchange rates.
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.
These legacy platforms are being evaluated as part of the recently initiated enterprise modernization program noted above. 18 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.
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.
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.
The stock market in general has experienced significant volatility that has often been unrelated to the operating performance of companies. As a result of this volatility, investors may not be able to sell their common stock at or above the price paid for the shares.
As a result of this volatility, investors may not be able to sell their common stock at or above the price paid for the shares.
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.
We provide defined benefit pension plans for certain employees worldwide. 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.
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. We continue to believe that we have the ability to meet our financing needs for the foreseeable future.
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.
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.
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.
Given that our employees work remotely, at least some of the time, which magnifies the importance of the integrity of our remote access security measures.
Any of these effects, among others, could materially and adversely affect our business and consolidated financial position and results of operations. 22 Index Changes in global and local tax laws and regulations in, and the distribution of income among, jurisdictions in which the Company operates could have a material impact on our consolidated financial position and results of operations.
Changes in global and local tax laws and regulations in, and the distribution of income among, jurisdictions in which the Company operates 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.
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.
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.
The funding requirements and costs of these plans are dependent upon various factors, including the actual return on plan assets, discount rates, plan participant population demographics, and changes in global pension regulations. Changes in these factors affect our plan funding, consolidated financial position, and results of operations.
The retirement benefit pension plan in Russia was discontinued on February 28, 2023 and we retain no further obligations for retirement benefits in Russia. The funding requirements and costs of these plans are dependent upon various factors, including the actual return on plan assets, discount rates, plan participant population demographics, and changes in global pension regulations.
In the third quarter of fiscal year 2023, due to the political instability and military actions between Russia and Ukraine, we made the decision to close our operations in Russia, which primarily consists of technology development resources.
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. 20 Index In the third quarter of fiscal year 2023, due to the political instability and military actions between Russia and Ukraine, we made the decision to close our operations in Russia, which primarily consists of technology development resources.
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.
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 are unable to retain our existing business relationships with authors and professional societies, this could have an adverse impact on our consolidated financial position and results of operations. 16 Index Information Technology Systems and Cybersecurity Risks Our company is highly dependent on information technology systems and their business management and customer-facing capabilities critical for the long-term competitive sustainability of the business.
If we are unable to retain our existing business relationships with authors and professional societies, this could have an adverse impact on our consolidated financial position and results of operations.
Due to our significant operating cash flow, financial assets, access to capital markets, and available lines of credit and revolving credit agreements, we continue to believe that we have the ability to meet our financing needs for the foreseeable future. As market conditions change, we will continue to monitor our liquidity position.
We typically generate significant operating cash flow from ongoing operations, continue to maintain available cash and other financial assets, retain access to the capital markets, and have available committed lines of credit through our syndicated credit agreement. As market conditions change, we will continue to monitor our liquidity position.
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.
We continually evaluate the performance and strategic fit of all of our businesses and may sell businesses or product lines. We initiated a strategic review of our non-core education businesses which has resulted in the ongoing divestiture of certain assets or businesses that no longer fit with our strategic direction or growth targets.
It is also possible that these conditions may impact other risks discussed in this section. 24 Index 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.
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. The stock market in general has experienced significant volatility that has often been unrelated to the operating performance of companies.
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.
If we are unable to introduce new technologies, products, and services, our ability to be profitable may be adversely affected. 17 Index We cannot predict the effect of technological changes on our business.
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.
As a result, the United States, as well as other nations, instituted economic sanctions against Russia and Belarus.
Removed
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.
Added
For Research, we may not be able to drive publishing output to meet the global demand for peer-reviewed research nor expand platform and service offerings for corporations and societies. For Learning, we may not be able to scale high-value digital content, courseware, and assessments. Divestitures could adversely affect our business and financial results and may introduce significant risks and uncertainties.
Removed
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.
Added
Divestitures involve significant risks and uncertainties that could adversely affect our business, consolidated financial position and consolidated results of operations.
Removed
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).
Added
Technological developments in artificial intelligence could disrupt the markets in which we operate and subject us to increased competition, cannibalization, legal and regulatory risks, and compliance costs. Technological developments in artificial intelligence, including machine learning technology, large language models and generative artificial intelligence (collectively, “AI Technologies”) and their current and potential future applications, are rapidly evolving.
Removed
We have implemented a global Enterprise Resource Planning (ERP) system as part of a multiyear plan to integrate and upgrade our operational and financial systems and processes. We have also implemented record-to-report, purchase-to-pay, and several other business processes within all locations.
Added
The full extent of current or future risks related thereto is not possible to predict. AI Technologies could significantly disrupt the markets in which we operate and subject us to increased competition, legal and regulatory risks, which could have a material adverse effect on our business, financial condition, and results of operations.
Removed
We implemented order-to-cash for certain businesses and have continued to roll out additional processes and functionality of the ERP system in phases. Implementation of an ERP system involves risks and uncertainties.
Added
In addition, the sale of new products leveraging AI Technologies may result in the cannibalization of sales for existing products, which may harm our results of operations.
Removed
We have made several acquisitions over the past few years that represent examples of strategic initiatives that were implemented as part of our business transformation. We will continue to explore opportunities to develop new business models and enhance the efficiency of our organizational structure.
Added
We intend to seek to avail ourselves of the potential benefits, insights and efficiencies that are available through the use of AI Technologies, which presents a number of potential risks that cannot be fully mitigated.
Removed
The uncertainty concerning the UK’s legal, political, and economic relationship with the EU after Brexit may be a source of instability in the international markets, create significant currency fluctuations, and/or otherwise adversely affect trading agreements or similar cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or otherwise) beyond the date of Brexit.
Added
If the content, analyses, or recommendations that AI Technologies assist in producing are, or are alleged to be, deficient, inaccurate, biased, or otherwise problematic, our reputation may be adversely affected.
Removed
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.
Added
In addition, the introduction of generative AI tools into our business may negatively impact our workplace culture and ability to attract and retain employees if generative AI tools are viewed as displacing workers. 15 Index Generative AI also presents emerging legal and ethical issues, and terms governing the use of generative AI are subject to change.
Removed
We are subject to tax laws in the jurisdictions where we conduct business, including the US and many foreign jurisdictions.
Added
Accordingly, our use of, or perceptions of the way that we use, generative AI could adversely affect our business, brand, financial condition, or results of operations. There is also a risk that AI Technologies may be misused or misappropriated by our employees and/or third parties engaged.
Removed
A number of international legislative and regulatory bodies have proposed legislation and begun investigations of the tax practices of multinational companies and, in the European union, the tax policies of certain European Union member states.
Added
Further, we may not be able to control how third-party AI Technologies that we choose to use are developed or maintained, or how data we input is used or disclosed, even where we have sought contractual protections with respect to these matters.
Removed
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
Added
The misuse or misappropriation of our data could have an adverse impact on our reputation and could subject us to legal and regulatory investigations and/or actions. Regulations related to AI Technologies may also impose on us certain obligations and costs related to monitoring and compliance. For example, in April 2023, the Federal Trade Commission, U.S.
Added
Department of Justice, Consumer Financial Protection Bureau, and U.S. Equal Employment Opportunity Commission released a joint statement on artificial intelligence demonstrating interest in monitoring the development and use of automated systems and enforcement of their respective laws and regulations. In October 2023, the Presidential Administration signed an executive order that establishes new standards for AI safety and security.
Added
In addition to the U.S. regulatory framework, the EU introduced a new regulation applicable to certain AI Technologies and the data used to train, test and deploy them, which could impose significant requirements on both the providers and deployers of AI Technologies. Our business may suffer if we cannot protect our intellectual property.
Added
Our business depends on our intellectual property, including our valuable trademarks and copyrighted content. We believe the protection and monetization of our proprietary trademarks and copyrighted content, as well as other intellectual property, is critical to our continued success and our competitive position.
Added
Our ability to do so is subject to the inherent limitation in protections available under intellectual property laws in the United States and other applicable jurisdictions.
Added
Unauthorized parties could unlawfully misappropriate our brand, content, technology, and other intellectual property and may continue to do so, and the measures we have taken to protect and enforce our proprietary rights may not be sufficient to fully address or prevent all third-party infringement.
Added
Advancements in technology, including advancements in generative AI technology, have made unauthorized copying and wide dissemination of unlicensed content easier.
Added
Detection of unauthorized use of our intellectual property and enforcement of our intellectual property rights have become more challenging, in part due to the increasing volume and sophistication of attempts at unauthorized use of our intellectual property, including from generative AI developers.

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Item 2. Properties

Properties — owned and leased real estate

2 edited+0 added−0 removed3 unchanged
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
Biggest changeUnited States: New Jersey Corporate Headquarters Leased 294,000 Indiana Office Leased 42,000 Minnesota Office Leased 28,000 Massachusetts Office Leased 26,000 North Carolina Office Leased 12,000 California Offices Leased 11,000 International: England Distribution Centers Leased 298,000 Offices Leased 75,000 Offices Owned 70,000 Germany Office Owned 104,000 Office Leased 14,000 China Offices Leased 40,000 Sri Lanka Office Leased 26,000 India Distribution Centers Leased 20,000 Office Leased 25,000 Jordan Office Leased 24,000 France Offices Leased 17,000 Brazil Office Leased 12,000 Greece Office Leased 11,000
Item 2. Properties We occupy office, warehouse, and distribution facilities in various parts of the world, as listed below (excluding those locations with less than 10,000 square feet of floor area, none of which is considered material property).
Item 2. Properties We occupy office, warehouse, and distribution facilities in various parts of the world, as listed below (excluding those locations with less than 10,000 square feet of floor area, none of which is considered a material property).

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

1 edited+0 added−0 removed1 unchanged
Biggest changeIn the opinion of management, the ultimate resolution of all pending litigation will not have a material effect upon our consolidated financial position or results of operations.
Biggest changeIn the opinion of management, the ultimate resolution of all pending litigation will not have a material effect upon our consolidated financial position or results of operations. Item 4. Mine Safety Disclosures Not applicable. 28 Index PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

5 edited+1 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 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.
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 2024 — $ — — — $ 133.5 March 2024 199,372 37.30 199,372 — 126.0 April 2024 226,150 38.09 226,150 — 117.4 Total 425,522 $ 37.72 425,522 — $ 117.4 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, 2019 to April 30, 2024.
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.
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, 2019 and reinvestment of dividends throughout the period.
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 fourth quarter of fiscal year 2024, we made the following purchases of Class A and Class B Common Stock under the publicly announced stock repurchase program.
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.
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, 2024, the approximate number of holders of our Class A and Class B Common Stock were 684 and 42, respectively, based on the holders of record.
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.
During the year ended April 30, 2020, our Board of Directors approved a share repurchase program of $200 million of Class A or B Common Stock. As of April 30, 2024, we had authorization from our Board of Directors to purchase up to $117.4 million that was remaining under this program.
Removed
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
Added
April 30, 2019 April 30, 2020 April 30, 2021 April 30, 2022 April 30, 2023 April 30, 2024 WLY $ 100.00 $ 83.89 $ 131.51 $ 120.51 $ 94.56 $ 95.93 Russell 2000 $ 100.00 $ 83.59 $ 146.18 $ 121.48 $ 117.01 $ 132.55 Dow Pub $ 100.00 $ 97.81 $ 162.94 $ 144.84 $ 137.02 $ 170.05 S&P 400 $ 100.00 $ 85.04 $ 142.76 $ 132.69 $ 134.39 $ 156.95 Item 6. [Reserved] 29 Index

Item 7. Management's Discussion & Analysis

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

141 edited+97 added−73 removed65 unchanged
Biggest changeProvision 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.
Biggest changeProvision for Income Taxes: Below is a reconciliation of our US GAAP (Loss) Income Before Taxes to Non-GAAP Adjusted Income Before Taxes: Year Ended April 30, 2024 2023 US GAAP (Loss) Income Before Taxes $ (187,047) $ 33,100 Pretax Impact of Adjustments: Impairment of goodwill 108,449 99,800 Legal settlement — 3,671 Pension income related to the wind up of the Russia plan — (1,750) Restructuring and related charges 63,041 49,389 Foreign exchange losses on intercompany transactions, including the write off of certain cumulative translation adjustments 1,903 457 Amortization of acquired intangible assets 57,874 89,177 Losses (gains) on sale of businesses and certain assets and impairment charges related to assets held-for-sale 183,389 (10,177) Held for Sale or Sold segment Adjusted Income Before Taxes (1) (30,661) (26,094) Non-GAAP Adjusted Income Before Taxes $ 196,948 $ 237,573 (1) Our Adjusted Income Before Taxes excludes the Adjusted Income Before Taxes of our Held for Sale or Sold segment. 36 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, 2024 2023 US GAAP Income Tax Provision $ 13,272 $ 15,867 Income Tax Impact of Adjustments (1) : Impairment of goodwill 2,953 — Legal settlement — 716 Pension income related to the wind up of the Russia plan — (437) Restructuring and related charges 15,662 12,151 Foreign exchange losses on intercompany transactions, including the write off of certain cumulative translation adjustments 582 132 Amortization of acquired intangible assets 20,127 20,183 Losses (gains) on sale of businesses and certain assets and impairment charges related to assets held-for-sale 26,908 (3,860) Held for Sale or Sold segment Adjusted Tax Provision (2) (7,140) (5,533) Income Tax Adjustments Impact of increase in UK statutory rate on deferred tax balances (3) — 2,370 Impact of valuation allowance (4) (30,249) — Non-GAAP Adjusted Income Tax Provision $ 42,115 $ 41,589 US GAAP Effective Tax Rate (7.1) % 47.9 % Non-GAAP Adjusted Effective Tax Rate 21.4 % 17.5 % (1) For the years ended April 30, 2024 and 2023 , substantially all of the tax impact was from deferred taxes.
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.
The WACC is calculated based on a proportionate weighting of the cost of debt and equity. The cost of equity is based on a capital asset pricing model and includes a company-specific risk premium to capture the perceived risks and uncertainties associated with the reporting unit’s projected cash flows.
The WACC is calculated based on a proportionate weighting of the cost of debt and equity. The cost of equity is based on a capital asset pricing model and includes a company-specific risk premium to capture the perceived risks and uncertainties associated with the reporting unit’s projected cash flows.
When indicators of impairment are present, we test definite lived and long-lived assets for recoverability by comparing the carrying value of an asset group to an estimate of the future undiscounted cash flows expected to result from the use and eventual disposition of the asset group.
When indicators of impairment are present, we test definite lived and long-lived assets for recoverability by comparing the carrying value of an asset group to an estimate of the future undiscounted cash flows expected to result from the use and eventual disposition of the asset group.
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.
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.
Gain on Sale of Businesses and Certain Assets: The pretax gain on sale of businesses for the year ended April 30, 2023, was $10.2 million. As part of our ongoing initiatives to simplify our portfolio and focus our attention on strategic growth areas, we have completed two dispositions during the year ended April 30, 2023.
Gains on Sale of Businesses and Certain Assets: The pretax gain on sale of businesses for the year ended April 30, 2023, was $10.2 million. As part of our ongoing initiatives to simplify our portfolio and focus our attention on strategic growth areas, we have completed two dispositions during the year ended April 30, 2023.
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.
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. 58 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.
Our rate for the year ended April 30, 2023, was higher due to the rate differential with respect to certain restructuring charges, the impairment of non-deductible goodwill resulting from the segment realignment described in Note 11, "Goodwill and Intangible Assets," offset by a benefit of $2.4 million relating to the effect of the increase in the UK statutory tax rate on UK pensions.
Our rate for the year ended April 30, 2023, was higher due to the rate differential with respect to certain restructuring charges, the impairment of non-deductible goodwill resulting from the segment realignment described in Note 11 , “Goodwill and Intangible Assets,” offset by a benefit of $2.4 million relating to the effect of the increase in the UK statutory tax rate on UK pensions.
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.
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. 48 Index 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.
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 may use a third-party valuation consultant to assist in the determination of such estimates. 57 Index 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.
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.
Beyond the forecasted period, a terminal value was determined using a perpetuity growth rate of 2.0% 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.
For the impact of our restructuring programs on diluted earnings per share, see the section below, “Diluted Earnings per Share (EPS).” 31 Index Amortization of Intangible Assets: Amortization of intangible assets was $84.9 million for the year ended April 30, 2023, and was flat as compared to 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 $84.9 million for the year ended April 30, 2023, and was flat as compared to the prior year.
This amount is reflected in Operating and administrative expenses on our Consolidated Statements of Income.
This amount is reflected in Operating and administrative expenses on our Consolidated Statements of (Loss) Income.
Prior to performing the goodwill impairment test for University 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 $326.0 million.
Prior to performing the goodwill impairment test for University 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 $231.0 million.
Prior to the realignment, we concluded that the fair value of the Education Services reporting unit was below its carrying value, which resulted in a pretax non-cash goodwill impairment of $31.0 million. Education Services was adversely impacted by market conditions and headwinds for online degree programs.
Prior to the realignment, we concluded that the fair value of the Education Services reporting unit was below its carrying value, which resulted in a pretax noncash goodwill impairment of $31.0 million. Education Services was adversely impacted by market conditions and headwinds for online degree programs.
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.
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, 2024.
These adjustments impacted deferred taxes. For the year ended April 30, 2023, we recorded a $2.4 million non-cash deferred tax benefit related to pensions due to the UK statutory rate change. These adjustments impacted deferred taxes. The effective tax rate was 47.9% for the year ended April 30, 2023, compared to 29.3% for the year ended April 30, 2022.
For the year ended April 30, 2023, we recorded a $2.4 million noncash deferred tax benefit related to pensions due to the UK statutory rate change. These adjustments impacted deferred taxes. The effective tax rate was 47.9% for the year ended April 30, 2023, compared to 29.3% for the year ended April 30, 2022.
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 3.7% for forecasted sales in our projected cash flows through fiscal year 2036.
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 3.3% for forecasted sales in our projected cash flows through fiscal year 2032.
This charge is reflected in Impairment of goodwill in the Consolidated Statements of Income. 55 Index University Services was adversely impacted by market conditions and headwinds for online degree programs which led to a decline in projected enrollments from existing partners, pricing pressures and revenue share concessions, and a decline in new partner additions over both the short-term and long-term which adversely impacted forecasted revenue growth and operating cash flows.
This charge is reflected in Impairment of goodwill in the Consolidated Statements of (Loss) Income. 60 Index University Services was adversely impacted by market conditions and headwinds for online degree programs, which lead to a decline in projected enrollments from existing partners, pricing pressures and revenue share concessions, and a decline in new partner additions over both the short-term and long-term which adversely impacted forecasted revenue growth and operating cash flows.
This was partially offset by projected growth in talent placements, partially due to expansion into new regions and the addition of new corporate clients, which are forecasted to have a positive impact on revenue growth and operating cash flows. 30 Index After the realignment, we concluded that the fair value of the University Services reporting unit within the Academic segment was below its carrying value, which resulted in an additional pretax non-cash goodwill impairment of $68.8 million.
This was partially offset by projected growth in talent placements, partially due to expansion into new regions and the addition of new corporate clients, which were forecasted to have a positive impact on revenue growth and operating cash flows. 32 Index After the realignment, we concluded that the fair value of the University Services reporting unit within the Academic segment was below its carrying value, which resulted in an additional pretax noncash goodwill impairment of $68.8 million.
Open access article output was flat for the year ended April 30, 2023, as compared with the prior year. Excluding Hindawi, open access article output growth was approximately 6% for the year ended April 30, 2023. 36 Index Adjusted EBITDA: On a constant currency basis, Adjusted EBITDA decreased 2% as compared with the prior year.
Excluding Hindawi, open access article output growth was approximately 6% for the year ended April 30, 2023. Adjusted EBITDA: On a constant currency basis, Adjusted EBITDA decreased 2% as compared with the prior year.
These estimates include, among other items, sales return reserves, allocation of acquisition purchase price to assets acquired and liabilities assumed, goodwill and indefinite-lived intangible assets, intangible assets with definite lives and other long-lived assets, and retirement plans.
These estimates include, among other items, sales return reserves, allocation of acquisition purchase price to assets acquired and liabilities assumed, assets and liabilities held-for-sale, goodwill and indefinite-lived intangible assets, intangible assets with definite lives and other long-lived assets, and retirement plans.
The cost of debt component is calculated based on the after-tax cost of debt of Moody’s Baa-rated corporate bonds. The cost of debt and equity is weighted based on the debt to market capitalization ratio of publicly traded companies with similarities to the Education Services reporting unit.
The cost of debt component is calculated based on the after-tax cost of debt of Moody’s Baa-rated corporate bonds. The cost of debt and equity is weighted based on the debt to market capitalization ratio of publicly traded companies with similarities to the CrossKnowledge reporting unit.
Operating Income, Adjusted Operating Income (OI) and Adjusted EBITDA: Operating income for the year ended April 30, 2023, decreased $163.4 million, or 75% as compared with the prior year. On a constant currency basis, operating income decreased 76% as compared with the prior year.
Operating Income, Adjusted Operating Income (OI) and Adjusted EBITDA: Operating income for the year ended April 30, 2023 of $55.9 million decreased $163.4 million, or 75% as compared with the prior year. On a constant currency basis, operating income decreased 76% as compared with the prior year.
This restructuring charge primarily reflects the following charges: • Severance charges of $25.8 million for the elimination of certain positions; • Impairment charges of $12.7 million, which included the impairment of operating lease right-of-use (ROU) assets of $7.6 million related to certain leases that will be subleased, and the related property and equipment of $5.1 million; • Acceleration of expense of $2.1 million, which included the acceleration of rent expense associated with operating lease ROU assets of $0.9 million related to certain leases that will be abandoned or terminated and the related depreciation and amortization of property and equipment of $1.2 million; • Ongoing facility-related costs with previously vacated properties that resulted in additional restructuring charges of $4.2 million; and • Consulting, relocation and other costs of $4.1 million.
This restructuring charge primarily reflects the following charges: • Severance charges of $25.8 million for the elimination of certain positions; • Impairment charges of $12.7 million, which included the impairment of operating lease right-of-use (ROU) assets of $7.6 million related to certain leases that will be subleased, and the related property and equipment of $5.1 million; • Acceleration of expense of $2.1 million, which included the acceleration of rent expense associated with operating lease ROU assets of $0.9 million related to certain leases that will be abandoned or terminated and the related depreciation and amortization of property and equipment of $1.2 million; • Ongoing facility-related costs with previously vacated properties that resulted in additional restructuring charges of $4.2 million; and • Consulting, relocation and other costs of $4.1 million. 43 Index We anticipate ongoing facility-related costs associated with certain properties to result in additional restructuring charges in future periods.
Fiscal Year 2023 Segment Realignment Goodwill Impairment Test In the third quarter of fiscal year 2023, we began to operate under a new organizational structure, which resulted in a change in our composition of our reportable segments, which resulted in a change in our reporting units. See Note 20, “Segment Information,” for more details.
Fiscal Year 2024 Segment Realignment Goodwill Impairment Test In the first quarter of fiscal year 2024, we began to operate under a new organizational structure, which resulted in a change in our composition of our reportable segments, which resulted in a change in our reporting units. See Note 20 , “Segment Information,” for more details.
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.
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.
Based on the results of the recoverability test, we determined that the undiscounted cash flows of the asset group of the Education Services reporting unit exceeded the carrying value. Therefore, there was no impairment.
Based on the results of the recoverability test, we determined that the undiscounted cash flows of the asset group of the CrossKnowledge reporting unit exceeded the carrying value. Therefore, there was no impairment.
Excluding the UK rate change, the tax implications of certain restructuring and related actions, and other unusual items, the Non-GAAP Adjusted Effective Tax Rate for the year ended April 30, 2023, was 17.9%. The Non-GAAP Adjusted Effective Tax Rate for the year ended April 30, 2022, excluding the impact of the UK statutory rate change, was 20.4%.
Excluding the UK rate change, the tax implications of certain restructuring and related actions, and other unusual items, the Non-GAAP Adjusted Effective Tax Rate for the year ended April 30, 2023, was 17.5% . The Non-GAAP Adjusted Effective Tax Rate for the year ended April 30, 2022, excluding the impact of the UK statutory rate change, was 20.0% .
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. Its results of operations are included in our Talent segment.
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. Its results of operations are included in our Held for Sale or Sold segment.
Accordingly, as of April 30, 2023, we have recorded an approximately $2.8 million deferred tax liability related to the estimated taxes that would be incurred upon repatriating certain non-US earnings to the US. On November 30, 2022, we entered into the second amendment to the Third Amended and Restated Credit Agreement (collectively, the Amended and Restated CA).
Accordingly, as of April 30, 2024, we have recorded an approximately $3.1 million deferred tax liability related to the estimated taxes that would be incurred upon repatriating certain non-US earnings to the US. On November 30, 2022, we entered into the second amendment to the Third Amended and Restated Credit Agreement (collectively, the Amended and Restated CA).
The WACC applied to the University Services reporting unit was 11.0%. • Valuation Multiples – for the Guideline Public Company Method, we applied relevant current and forward 12-month EBITDA multiples based on an evaluation of multiples of publicly-traded companies with similarities to the University Services reporting unit. The multiples applied ranged from 6.0x to 7.0x EBITDA.
The WACC applied to the University Services reporting unit was 17%. • Valuation Multiples – for the Guideline Public Company Method, we applied relevant current and forward 12-month EBITDA multiples based on an evaluation of multiples of publicly-traded companies with similarities to the University Services reporting unit. The multiples applied ranged from 4.5x to 6.0x EBITDA.
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.
A one percent change in the estimated sales return rate could affect net income by approximately $1.7 million. A change in the pattern or trends in returns could also affect the estimated allowance.
For additions of technology, property, and equipment and product development spending decreased $7.7 million and $4.1 million, respectively. 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.
For additions of technology, property, and equipment and product development, spending decreased $5.1 million and $5.7 million, respectively. 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.
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.
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 4.6% for forecasted sales in our projected cash flows through fiscal year 2031.
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 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.
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.
The gain on sale of certain assets for the year ended April 30, 2022, was due to the sale of our world languages product portfolio which was previously included in our Learning segment and resulted in a pretax gain of approximately $3.7 million.
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.
A hypothetical one percent increase in the discount rate would increase net income and decrease the accrued pension liability by approximately $1.0 million and $66.2 million, respectively. A one percent decrease in the discount rate would decrease net income and increase the accrued pension liability by approximately $0.6 million and $76.8 million, respectively.
Excess operating cash is used to fund shareholder dividends. Other discretionary uses of cash flow include share repurchases and acquisitions to complement our portfolio of businesses. As necessary, we may supplement operating cash flow with debt to fund these activities.
Operating cash flow provides the primary source of cash to fund operating needs and capital expenditures. Excess operating cash is used to fund shareholder dividends. Other discretionary uses of cash flow include share repurchases and acquisitions to complement our portfolio of businesses. As necessary, we may supplement operating cash flow with debt to fund these activities.
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.
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 of $692.5 million decreased $8.1 million, or 1% as compared with the prior year.
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.
Therefore, there was no impairment. 62 Index Fiscal Year 2024 and 2023 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 2024 and 2023 , we performed a qualitative assessment for our annual indefinite-lived intangible assets impairment test.
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.
Prior to performing the goodwill impairment test for CrossKnowledge, 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 $50.2 million.
A review of goodwill may be initiated before or after conducting the annual analysis if events or changes in circumstances indicate the carrying value of goodwill may no longer be recoverable.
Our annual impairment assessment date is February 1. A review of goodwill may be initiated before or after conducting the annual analysis if events or changes in circumstances indicate the carrying value of goodwill may no longer be recoverable.
A one percent change in the expected long-term rate of return would affect net income by approximately $5.1 million. 57 Index
A one percent change in the expected long-term rate of return would affect net income by approximately $3.8 million. 63 Index
This has led to a decline in projected student enrollments from existing partners, pricing pressures and revenue share concessions, and a decline in new partner additions over both the short-term and long-term, which adversely impacted forecasted revenue growth and operating cash flows.
Education Services was adversely impacted by market conditions and headwinds for online degree programs. This has led to a decline in projected student enrollments from existing partners, pricing pressures and revenue share concessions, and a decline in new partner additions over both the short-term and long-term, which adversely impacted forecasted revenue growth and operating cash flows.
The Academic reportable segment includes two reporting units, Academic Publishing and University Services, and the Talent reportable segment includes two reporting units, Talent Development and Professional Learning. No changes were made to the Research reportable segment. As a result of this realignment, we are required to test goodwill for impairment immediately before and after the realignment.
The Learning reportable segment includes two reporting units, Academic and Professional, and the Held for Sale or Sold reportable segment includes three reporting units, University Services, Wiley Edge, and CrossKnowledge. No changes were made to the Research reportable segment. As a result of this realignment, we are required to test goodwill for impairment immediately before and after the realignment.
Our negative working capital (current assets less current liabilities) was $418.6 million and $462.7 million as of April 30, 2022 and April 30, 2021, 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 $419.2 million and $354.3 million as of April 30, 2024 and April 30, 2023, 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.
This change was primarily due to an increase in net debt repayments of $27.9 million and, to a lesser extent, a $5.0 million increase in cash used for purchases of treasury shares, and $4.5 million of cash used for costs related to the second amendment of the Amended and Restated CA. 2022 Compared to 2021 Net cash used in financing activities was $131.6 million in the year ended April 30, 2022 compared to net cash used of $47.1 million in the year ended April 30, 2021.
This change was primarily due to an increase in net debt repayments of $27.9 million and, to a lesser extent, a $5.0 million increase in cash used for purchases of treasury shares, and $4.5 million of cash used for costs related to the second amendment of the Amended and Restated CA.
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.
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.
There have been no significant events or circumstances affecting the valuation of goodwill subsequent to the qualitative assessment performed as of February 1, 2023. As of February 1, 2022, we completed a quantitative assessment for our annual goodwill impairment test for our reporting units.
As such, it was not necessary to perform a quantitative test. There have been no significant events or circumstances affecting the valuation of goodwill subsequent to the qualitative assessment performed as of February 1, 2024. As of February 1, 2023, we completed a quantitative assessment for our annual goodwill impairment test for our University Services reporting unit.
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.
We anticipate ongoing severance related charges and 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.
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 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 Gains on sale of businesses and certain assets (0.11) (0.05) Held for Sale or Sold segment Adjusted Net Income (1) (0.36) (0.41) Income tax adjustments (0.04) 0.38 Non-GAAP Adjusted EPS $ 3.48 $ 3.75 (1) Our Adjusted EPS excludes the Adjusted Net Income of our Held for Sale or Sold segment.
The program was suspended temporarily due to the presence in certain special issues of compromised articles. As a result, Hindawi revenue for the year ended April 30, 2023 decreased $3.0 million on a constant currency basis as compared with the prior year. We have closed four Hindawi journals and retracted over 1,700 articles.
As a result, Hindawi revenue for the year ended April 30, 2023 decreased $3.0 million on a constant currency basis as compared with the prior year. We have closed four Hindawi journals and retracted over 1,700 articles.
This decrease was primarily due to investments to optimize and scale publishing and solutions, higher employment costs and, to a lesser extent, travel and entertainment costs due to the resumption of in-person activities. These were partially offset by lower royalty costs largely due to the product mix.
This decrease was primarily due to investments to optimize and scale publishing and solutions, higher employment costs and, to a lesser extent, travel and entertainment costs due to the resumption of in-person activities.
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.
The WACC applied to the CrossKnowledge reporting unit was 16%. • Valuation Multiples – for the Guideline Public Company Method, we applied relevant current and forward 12-month EBITDA multiples based on an evaluation of multiples of publicly-traded companies with similarities to the CrossKnowledge reporting unit. The multiples applied ranged from 6.0x to 7.0x EBITDA.
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.
Foreign Exchange Transaction (Losses) Gains: Foreign exchange transaction losses were $(3.0) million for the year ended April 30, 2024, and were primarily due to losses on our foreign currency denominated third-party receivable and payable balances and, to a lesser extent, losses on our intercompany accounts receivable and payable balances due to the impact of the change in average foreign exchange rates as compared to the US dollar.
Absent an indication of fair value from a potential buyer or similar specific transactions, we believe that the use of these methods provides a reasonable estimate of a reporting unit’s fair value.
We derive an estimate of fair values for each of our reporting units using a combination of an income approach and a market approach. Absent an indication of fair value from a potential buyer or similar specific transactions, we believe that the use of these methods provides a reasonable estimate of a reporting unit’s fair value.
On a constant currency basis, revenue increased 24% as compared with prior year. This increase was primarily due to double-digit growth in placements and, to a lesser extent, an increase in assessments (corporate training), partially offset by a decrease in corporate learning.
On a constant currency basis, revenue increased 5% as compared with prior year. Excluding revenue from acquisitions, organic revenue increased 3% on a constant currency basis. This increase was primarily due to double-digit growth in placements, partially offset by a decrease in University Services and corporate learning.
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.
During the years ended April 30, 2024, 2023, and 2022 we purchased $45.1 million, $35.0 million, and $30.0 million, respectively, under these programs. 56 Index The following table summarizes the shares repurchased of Class A and B Common Stock (shares in thousands): Years Ended April 30, 2024 2023 2022 Shares repurchased – Class A 1,294 831 542 Shares repurchased – Class B 3 1 2 Average Price – Class A and Class B $ 34.71 $ 42.07 $ 55.14 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.
Adjusted OI Below is a reconciliation of our consolidated US GAAP Operating Income to Non-GAAP Adjusted OI: Year Ended April 30, 2023 2022 Operating Income $ 55,890 $ 219,276 Adjustments: Restructuring charges (credits) 49,389 (1,427) Impairment of goodwill 99,800 — Legal settlement (1) 3,671 — Accelerated amortization of an intangible asset (2) 4,594 — Non-GAAP Adjusted Operating Income $ 213,344 $ 217,849 (1) We settled a litigation matter related to consideration for a previous acquisition for $3.7 million during the three months ended January 31, 2023.
Adjusted OI Below is a reconciliation of our consolidated US GAAP Operating Income to Non-GAAP Adjusted OI: Year Ended April 30, 2024 2023 US GAAP Operating Income $ 52,261 $ 55,890 Adjustments: Restructuring and related charges 63,041 49,389 Impairment of goodwill 108,449 99,800 Legal settlement (1) — 3,671 Accelerated amortization of an intangible asset (2) — 4,594 Held for Sale or Sold segment Adjusted Operating Income (3) (28,711) (1,186) Non-GAAP Adjusted OI $ 195,040 $ 212,158 (1) We settled a litigation matter related to consideration for a previous acquisition for $3.7 million during the three months ended January 31, 2023.
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.
(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, 2024 remain constant until the maturity of the debt. 53 Index Analysis of Historical Cash Flow The following table shows the changes in our Consolidated Statements of Cash Flows: Years Ended April 30, 2024 2023 2022 Net cash provided by operating activities $ 207,638 $ 277,071 $ 339,100 Net cash used in investing activities (106,643) (98,398) (194,024) Net cash used in financing activities (107,221) (168,568) (131,638) Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash $ (1,493) $ (3,570) $ (7,070) 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.
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.
See Note 7 , “Restructuring and Related Charges (Credits)” for more details on these charges. 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.
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, 2023 2022 US GAAP Income Before Taxes $ 33,100 $ 209,661 Pretax Impact of Adjustments: Impairment of goodwill 99,800 — Legal settlement 3,671 — Pension income related to the wind up of the Russia plan (1,750) — Restructuring and related charges (credits) 49,389 (1,427) Foreign exchange losses on intercompany transactions, including the write off of certain cumulative translation adjustments 457 1,513 Amortization of acquired intangible assets 89,177 89,346 Gain on sale of businesses and certain assets (10,177) (3,694) Non-GAAP Adjusted Income Before Taxes $ 263,667 $ 295,399 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, 2023 2022 US GAAP Income Tax Provision $ 15,867 $ 61,352 Income Tax Impact of Adjustments (1) : Legal settlement 716 — Pension income related to the wind up of the Russia plan (437) — Restructuring and related charges (credits) 12,151 (260) Foreign exchange losses on intercompany transactions, including the write off of certain cumulative translation adjustments 132 597 Amortization of acquired intangible assets 20,183 20,816 Gain on sale of businesses and certain assets (3,860) (922) Income Tax Adjustments Impact of increase in UK statutory rate on deferred tax balances (2) 2,370 (21,415) Non-GAAP Adjusted Income Tax Provision $ 47,122 $ 60,168 US GAAP Effective Tax Rate 47.9 % 29.3 % Non-GAAP Adjusted Effective Tax Rate 17.9 % 20.4 % 34 Index (1) For the years ended April 30, 2023 and 2022, substantially all of the tax impact was from deferred taxes.
This decrease was primarily due to lower pension income for our defined benefit plans, partially offset by a decrease in donations and pledges to humanitarian organizations to provide aid to those impacted by the crisis in Ukraine, and a curtailment and settlement credit due to the wind up of the Russia pension plan of $1.8 million. 46 Index 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, 2023 2022 US GAAP Income Before Taxes $ 33,100 $ 209,661 Pretax Impact of Adjustments: Impairment of goodwill 99,800 — Legal settlement 3,671 — Pension income related to the wind up of the Russia plan (1,750) — Restructuring and related charges (credits) 49,389 (1,427) Foreign exchange losses on intercompany transactions, including the write off of certain cumulative translation adjustments 457 1,513 Amortization of acquired intangible assets 89,177 89,346 Gains on sale of businesses and certain assets (10,177) (3,694) Held for Sale or Sold segment Adjusted Income Before Taxes (1) (26,094) (29,943) Non-GAAP Adjusted Income Before Taxes $ 237,573 $ 265,456 (1) Our Adjusted Income Before Taxes excludes the Adjusted Income Before Taxes of our Held for Sale or Sold segment. 47 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, 2023 2022 US GAAP Income Tax Provision $ 15,867 $ 61,352 Income Tax Impact of Adjustments (1) : Legal settlement 716 — Pension income related to the wind up of the Russia plan (437) — Restructuring and related charges (credits) 12,151 (260) Foreign exchange losses on intercompany transactions, including the write off of certain cumulative translation adjustments 132 597 Amortization of acquired intangible assets 20,183 20,816 Gain on sale of businesses and certain assets (3,860) (922) Held for Sale or Sold segment Adjusted Tax Provision (2) (5,533) (6,987) Income Tax Adjustments Impact of increase in UK statutory rate on deferred tax balances (3) 2,370 (21,415) Non-GAAP Adjusted Income Tax Provision $ 41,589 $ 53,181 US GAAP Effective Tax Rate 47.9 % 29.3 % Non-GAAP Adjusted Effective Tax Rate 17.5 % 20.0 % (1) For the years ended April 30, 2023 and 2022, substantially all of the tax impact was from deferred taxes.
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).
Free Cash Flow Less Product Development Spending: Years Ended April 30, 2024 2023 2022 Net cash provided by operating activities $ 207,638 $ 277,071 $ 339,100 Less: Additions to technology, property and equipment (76,080) (81,155) (88,843) Less: Product development spending (17,262) (22,958) (27,015) Free cash flow less product development spending $ 114,296 $ 172,958 $ 223,242 Net Cash Provided By Operating Activities 2024 Compared to 2023 The following is a summary of the $69.5 million change in Net cash provided by operating activities for the year ended April 30, 2024, as compared with the year ended April 30, 2023 (amounts in millions).
On a constant currency basis, revenue decreased 2% as compared with prior year. Excluding revenue from acquisitions, organic revenue decreased 2% on a constant currency basis.
On a constant currency basis, revenue decreased 36% as compared with prior year.
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.
As of April 30, 2024, we had cash and cash equivalents of $99.4 million, including cash and cash equivalents classified as held-for-sale of $16.2 million, of which approximately all 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.
Current liabilities as of April 30, 2022 and as of April 30, 2021 include contract liabilities of $538.1 million and $545.4 million, respectively, primarily related to deferred subscription revenue for which cash was collected in advance.
Current liabilities as of April 30, 2024 and as of April 30, 2023 include contract liabilities of $483.8 million and $504.7 million, respectively, primarily related to deferred subscription revenue for which cash was collected in advance.
Other Income, Net: Other income, net was $9.7 million for the year ended April 30, 2022, a decrease of $7.1 million, or 42%, as compared with the prior year.
Other (Expense) Income, Net: Other (expense), net was $(4.0) million for the year ended April 30, 2024 compared with the prior year Other income, net of $3.9 million, a decrease of $7.9 million.
There are inherent uncertainties, however, related to these factors and to our judgment in applying them to this analysis. We believe that the combination of these methods provides a reasonable approach to estimate the fair value of our reporting units. Assumptions for sales, net earnings, and cash flows for each reporting unit were consistent among these methods.
There are inherent uncertainties, however, related to these factors and to our judgment in applying them to this analysis. We believe that the combination of these methods provides a reasonable approach to estimate the fair value of our reporting units. Income Approach Used to Determine Fair Values The income approach is based upon the present value of expected cash flows.
Adjusted EBITDA on a constant currency basis and excluding restructuring (credits) charges, increased 3%, as compared with the prior year primarily due to revenue performance, partially offset by an increase in operating and administrative expenses, and cost of sales.
Adjusted OI on a constant currency basis decreased 8% as compared with the prior year primarily due to lower Adjusted Revenue and, to a lesser extent, higher operating and administrative expenses , partially offset by lower cost of sales. Adjusted EBITDA on a constant currency basis, decreased 3% as compared with the prior year primarily due to lower Adjusted Revenue.
Fiscal Year 2023 and 2022 Annual Goodwill Impairment Test As of February 1, 2023, we completed a quantitative assessment for our annual goodwill impairment test for our University Services reporting unit. We concluded that the fair value of the reporting unit was above the carrying value and, therefore, there was no indication of impairment.
We concluded that the fair value of the reporting unit was above the carrying value and, therefore, there was no indication of impairment. For our other reporting units, we performed a qualitative assessment by reporting unit as of February 1, 2023.
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.
This was partially offset by a $10.1 million increase in cash used for purchases of treasury shares. 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.
For the year ended April 30, 2023, we recorded pretax restructuring charges of $48.9 million related to this program, which includes $8.3 million related to the closure of our operations in Russia as described above. These charges are reflected in Restructuring and related charges (credits) on our Consolidated Statements of Income.
We were substantially complete with our closure as of April 30, 2023, except for the formal liquidation of our Russian legal entity. For the year ended April 30, 2023, we recorded pretax restructuring charges of $48.9 million related to this program, which includes $8.3 million related to the closure of our operations in Russia 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.
On a constant currency basis, operating income decreased 7% as compared with the prior year. The decrease was primarily due to a decrease in revenue, partially offset by lower costs of sales and, to a lesser extent, lower operating and administrative expenses, and a decrease in the amortization of intangible assets.
Revenue: Revenue for the year ended April 30, 2023 decreased $63.0 million, or 3%, as compared with the prior year. On a constant currency basis, revenue was flat as compared with the prior year including contributions from acquisitions. Excluding the contributions from acquisitions, revenue decreased 1% on a constant currency basis.
On a constant currency basis, revenue was flat as compared with the prior year including contributions from acquisitions. Excluding the contributions from acquisitions, revenue decreased 1% on a constant currency basis. Excluding the revenues from the Held for Sale or Sold segment, Adjusted Revenue decreased 1% on a constant currency basis.
(2) As described above, we determined that a revision of the useful life of the mthree trademark was warranted, and the intangible asset was fully amortized over its remaining useful life resulting in accelerated amortization expense of $4.6 million in the three months ended July 31, 2022. 32 Index Adjusted EBITDA Below is a reconciliation of our consolidated US GAAP Net Income to Non-GAAP EBITDA and Adjusted EBITDA: Year Ended April 30, 2023 2022 Net Income $ 17,233 $ 148,309 Interest expense 37,745 19,802 Provision for income taxes 15,867 61,352 Depreciation and amortization 213,253 215,170 Non-GAAP EBITDA 284,098 444,633 Impairment of goodwill 99,800 — Legal settlement 3,671 — Restructuring and related charges (credits) 49,389 (1,427) Foreign exchange (gains) losses on intercompany transactions, including the write off of certain cumulative translation adjustments (894) 3,192 Gain on sale of businesses and certain assets (10,177) (3,694) Other income, net (3,884) (9,685) Non-GAAP Adjusted EBITDA $ 422,003 $ 433,019 Interest Expense: Interest expense for the year ended April 30, 2023, was $37.7 million compared with the prior year of $19.8 million.
Adjusted EBITDA Below is a reconciliation of our consolidated US GAAP Net Income to Non-GAAP EBITDA and Adjusted EBITDA: Year Ended April 30, 2023 2022 Net Income $ 17,233 $ 148,309 Interest expense 37,745 19,802 Provision for income taxes 15,867 61,352 Depreciation and amortization 213,253 215,170 Non-GAAP EBITDA 284,098 444,633 Impairment of goodwill 99,800 — Legal settlement 3,671 — Restructuring and related charges (credits) 49,389 (1,427) Foreign exchange (gains) losses (894) 3,192 Gains on sale of businesses and certain assets (10,177) (3,694) Other income, net (3,884) (9,685) Held for Sale or Sold segment Adjusted EBITDA (1) (42,677) (49,121) Non-GAAP Adjusted EBITDA $ 379,326 $ 383,898 (1) Our Non-GAAP Adjusted EBITDA excludes the Held for Sale or Sold segment Non-GAAP Adjusted EBITDA. 45 Index Interest Expense: Interest expense for the year ended April 30, 2023, was $37.7 million compared with the prior year of $19.8 million.
Goodwill Impairment After Realignment After the realignment, we concluded that the fair value of the Academic Publishing, Talent Development and Professional Learning reporting units were above their carrying values. Therefore, there was no indication of impairment.
Goodwill Impairment After Realignment After the realignment, we concluded that the fair value of the Academic, Professional, and Wiley Edge reporting units were above their carrying values. Therefore, there was no indication of impairment. As noted above, the goodwill of the University Services reporting unit was zero and no further testing of goodwill for impairment was required.
These were partially offset by a lower provision for income taxes. 35 Index SEGMENT OPERATING RESULTS: Year Ended April 30, % Change Favorable (Unfavorable) Constant Currency % Change Favorable (Unfavorable) RESEARCH 2023 2022 Revenue: Research Publishing (1) $ 926,773 $ 963,715 (4) % (1) % Research Solutions (1) 153,538 147,628 4 % 7 % Total Research 1,080,311 1,111,343 (3) % — % Cost of Sales 286,361 300,373 5 % 2 % Operating Expenses 463,731 468,012 1 % (4) % Amortization of Intangibles 46,235 47,731 3 % (1) % Restructuring Charges (see Note 7) 2,182 238 # # Contribution to Profit 281,802 294,989 (4) % (4) % Restructuring Charges (see Note 7) 2,182 238 # # Adjusted Contribution to Profit 283,984 295,227 (4) % (3) % Depreciation and Amortization 93,008 94,899 2 % (1) % Adjusted EBITDA $ 376,992 $ 390,126 (3) % (2) % Adjusted EBITDA Margin 34.9 % 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.
Year Ended April 30, % Change Favorable (Unfavorable) Constant Currency % Change Favorable (Unfavorable) RESEARCH 2023 2022 Revenue: Research Publishing $ 926,773 $ 963,715 (4) % (1) % Research Solutions 153,538 147,628 4 % 7 % Total Research 1,080,311 1,111,343 (3) % 0 % Cost of Sales 286,361 300,373 5 % 2 % Operating Expenses 463,731 468,012 1 % (4) % Amortization of Intangibles 46,235 47,731 3 % (1) % Adjusted Operating Income 283,984 295,227 (4) % (3) % Depreciation and Amortization 93,008 94,899 2 % (1) % Adjusted EBITDA $ 376,992 $ 390,126 (3) % (2) % Adjusted EBITDA Margin 34.9 % 35.1 % Revenue: Research revenue for the year ended April 30, 2023 decreased $31.0 million, or 3%, 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.
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, 2024 of $579.7 million decreased $112.8 million, or 16% as compared with the prior year.
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.
T hese charges and (credits) are reflected in the Restructuring and related charges (credits) in the Consolidated Statements of (Loss) Income. 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.

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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 changeWe are primarily exposed to movements in British pound sterling, euros, Canadian and Australian dollars, and certain currencies in Asia. The statements of financial position of non-US business units are translated into US dollars using period-end exchange rates for assets and liabilities and the Statements of Income are translated into US dollars using weighted-average exchange rates for revenues and expenses.
Biggest changeThe statements of financial position of non-US business units are translated into US dollars using period-end exchange rates for assets and liabilities and the Statements of (Loss) Income are translated into US dollars using weighted-average exchange rates for revenues and expenses.
Adjustments resulting from translating assets and liabilities are reported as a separate component of Total Accumulated Other Comprehensive Loss, Net of Tax within Shareholders’ Equity under the caption Foreign currency translation adjustment.
Adjustments resulting from translating assets and liabilities are reported as a separate component of Total accumulated other comprehensive loss, net of tax within Total shareholders’ equity under the caption Foreign currency translation adjustment.
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.
Exchange rate gains or losses related to foreign currency transactions are recognized as transaction gains or losses on the Consolidated Statements of (Loss) 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.
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.
On an annual basis, a hypothetical 1% change in interest rates for the $275.2 million of unhedged variable rate debt as of April 30, 2024 would affect net income and cash flow by approximately $2.2 million. Foreign Exchange Rates: Fluctuations in the currencies of countries where we operate outside the US may have a significant impact on financial results.
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. Our book business is not dependent upon a single customer; however, the industry is concentrated in national, regional, and online bookstore chains.
Subscription agents account for approximately 16% of total annual consolidated revenue, and no one agent accounts for more than 10% of total annual consolidated revenue. Our book business is not dependent upon a single customer; however, the industry is concentrated in national, regional, and online book resellers.
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.
The percentage of consolidated revenue for the year ended April 30, 2024 recognized in the following currencies (on an equivalent US dollar basis) were approximately: 53% US dollar, 27% British pound sterling, 11% euro, and 9% other currencies. Our significant investments in non-US businesses are exposed to foreign currency risk.
During the year ended April 30, 2021, we recorded foreign currency translation gains in Total accumulated other comprehensive loss, net of tax of approximately $82.8 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.
During the year ended April 30, 2024, we recorded foreign currency translation (losses) in Total accumulated other comprehensive loss, net of tax of approximately $(7.5) million primarily as a result of the fluctuations of the US dollar relative to the euro and, to a lesser extent, the British pound sterling.
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
Although no book customer accounts for more than 6% of total consolidated revenue and 12% of accounts receivable at April 30, 2024, the top 10 book customers account for approximately 11% of total consolidated revenue and approximately 27% of accounts receivable at April 30, 2024. 64 Index
Added
We are primarily exposed to movements in British pound sterling, euros, Canadian and Australian dollars, and certain currencies in Asia.

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