LEARNING CO INC
8-K/A, 1998-11-10
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<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 8-K/A

   

                        AMENDMENT NO. 2 TO CURRENT REPORT
                       PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934
    


Date of Report (Date of Earliest Event Reported):  August 31, 1998


                           The Learning Company, Inc.
        -------------------------------------------------------------------
             (Exact Name of Registrant as Specified in its Charter)


                                    Delaware
                  ---------------------------------------------
                 (State or Other Jurisdiction of Incorporation)


        1-12375                                        94-2562108
- ------------------------                   ------------------------------------
(Commission File Number)                   (I.R.S. Employer Identification No.)


One Athenaeum Street
Cambridge, MA                                                        02142
- ----------------------------------------                           ---------
(Address of Principal Executive Offices)                          (Zip Code)


                                 (617) 494-1200
               ---------------------------------------------------
              (Registrant's Telephone Number, Including Area Code)

                                 Not Applicable
           ------------------------------------------------------------
          (Former Name or Former Address, if Changed Since Last Report)









<PAGE>


   

         Item 7 of the Current Report on Form 8-K, as originally filed on
September 10, 1998, and as amended by Amendment No. 1 to Current Report on Form
8-K/A, filed on November 4, 1998, is amended and restated in its entirety as
follows:

    


Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits.

         (a)      Financial Statements of Businesses Acquired.

         The financial statements of Broderbund set forth at (i) pages 26
through 42 of Broderbund's Annual Report Pursuant to Section 13 or 15(d) of the
Securities and Exchange Act of 1934, as amended (the "Exchange Act"), on Form
10-K for the fiscal year ended August 31, 1997 filed with the Securities and
Exchange Commission (the "Commission") on November 26, 1997, and (ii) pages 3
through 7 of Broderbund's Quarterly Report Pursuant to Section 13 or 15(d) of
the Exchange Act on Form 10-Q for the quarterly period ended May 31, 1998 filed
with the Commission on July 14, 1998, are hereby incorporated by reference
herein and filed as Exhibit 99.1 hereto pursuant to Rule 12b-23(a)(3) of the
Exchange Act.

         (b)      Pro Forma Financial Information.

         The Unaudited Pro Forma Combined Condensed Financial Statements of TLC
and Broderbund set forth at pages 74 through 84 of the Joint Proxy
Statement/Prospectus dated July 31, 1998 (the "Proxy Statement/Prospectus")
filed as part of TLC's Registration Statement on Form S-4 (File No. 333-59089),
which Proxy Statement/Prospectus was filed with the Commission on July 31, 1998,
are hereby incorporated by reference herein and filed as Exhibit 99.2 hereto
pursuant to Rule 12b-23(a)(3) of the Exchange Act.

         (c)      Exhibits.

         See Exhibit Index attached hereto.

         (d)      Supplemental Consolidated Financial Statements of TLC

         The supplemental consolidated balance sheets of TLC for the years ended
January 3, 1998 and January 4, 1997 and the related supplemental consolidated
statements of operations, stockholders' equity and cash flows for each of the
three

                                       -2-

<PAGE>


TLC fiscal years in the period ended January 3, 1998 are hereby incorporated by
reference herein and filed as Exhibit 99.4 hereto.


         (e) Unaudited Supplemental Consolidated Financial Information of TLC

         Certain unaudited supplemental consolidated financial information for
the six quarters ended June 30, 1998, for the fiscal year ended January 3, 1998
and for the nine months ended September 30, 1997 are hereby incorporated by
reference herein and filed as Exhibit 99.5 hereto.




                                       -3-

<PAGE>





                                    SIGNATURE


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




   

Date: November 10, 1998                     THE LEARNING COMPANY, INC.
                                                (Registrant)

    


                                                 By:    /s/ Neal S. Winneg
                                                    ---------------------------
                                                       Neal S. Winneg
                                                       Senior Vice President and
                                                       General Counsel




                                       -4-

<PAGE>




                                  EXHIBIT INDEX

<TABLE>
<CAPTION>

   
Exhibit
Number                                      Description
- --------                                    ------------
<S>             <C>

2.1*              Agreement and Plan of Merger dated as of June 21, 1998 by and among
                  TLC, TLC Merger Corp. and Broderbund.

23.1*             Consent of Ernst & Young LLP.

23.2              Consent of PricewaterhouseCoopers LLP.

27.1              Restated Financial Data Schedule.

27.2              Restated Financial Data Schedule, continued.

99.1*             Financial Statements of Broderbund.

99.2*             Unaudited Pro Forma Combined Condensed Financial Statements of
                  TLC and Broderbund.

99.3*             Press Release dated August 31, 1998.

99.4*             Supplemental Consolidated Financial Statements of TLC.

99.5*             Unaudited Supplemental Consolidated Financial Information of TLC.

    

</TABLE>
- -----------------------------------

*    Previously filed.





<PAGE>




                                                                  Exhibit 23.2



                       CONSENT OF INDEPENDENT ACCOUNTANTS

   

We consent to the incorporation by reference in the registration statements 
of The Learning Company, Inc. (formerly known as SoftKey International, Inc.) 
on Form S-3 (File Nos. 33-73422, 33-63073, 333-00145, 333-02385, 333-03271, 
333-10009, 333-40543, 333-40549, 333-48009, 333-50915, 333-56641, 333-57397, 
333-62171) and Form S-8 (File Nos. 33-75134, 33-92920, 33-92922, 33-61931, 
333-00107, 333-02337, 333-04619, 333-40539, 333-42449, 333-43653, 333-45113, 
333-45115, 333-57335, 333-59123) our report dated October 10, 1998 on our 
audits of the supplemental consolidated balance sheets and financial 
statement schedule of valuation and qualifying accounts of The Learning 
Company, Inc. as of January 3, 1998 and January 4, 1997 and the related 
supplemental consolidated statements of operations, stockholders' equity and 
cash flows for each of the three fiscal years in the period ended January 3, 
1998, which report is filed as an exhibit to this Amendment No. 2 to Current 
Report on Form 8-K/A.

    


                                                 /s/ PricewaterhouseCoopers LLP
                                                     PricewaterhouseCoopers LLP


   
Boston, Massachusetts
November 10, 1998
    



<TABLE> <S> <C>

<PAGE>
<ARTICLE> 5
<RESTATED> 
       
<S>                            <C>                  <C>                  <C>                  <C>                   <C>
<PERIOD-TYPE>                  12-MOS                12-MOS               3-MOS                3-MOS                3-MOS
<FISCAL-YEAR-END>                    JAN-04-1997          JAN-03-1998         JAN-03-1998          JAN-03-1998          JAN-03-1998
<PERIOD-START>                       JAN-07-1996          JAN-05-1997         JAN-05-1997          APR-06-1997          JUL-06-1997
<PERIOD-END>                         JAN-04-1997          JAN-03-1998         APR-05-1997          JUL-05-1997          OCT-04-1997
<CASH>                                   261,013              188,956             244,550              219,656              189,215
<SECURITIES>                                   0                    0                   0                    0                    0
<RECEIVABLES>                             85,566              161,927              81,990               80,811              117,724
<ALLOWANCES>                              42,802               47,643              32,724               43,698               41,256
<INVENTORY>                               19,034               39,382              21,706               24,220               34,127
<CURRENT-ASSETS>                         386,831              426,128             368,492              349,026             377,455
<PP&E>                                    30,349               51,798              31,176               32,054              52,173
<DEPRECIATION>                             9,295                9,066               2,203                2,251               2,053
<TOTAL-ASSETS>                           969,893              623,774             844,165              711,405             577,417
<CURRENT-LIABILITIES>                    147,075              220,192             128,241              122,696             196,847
<BONDS>                                  332,930              294,356             471,650              463,650             294,356
                          0                    0                   0                    0                   0
                                    0                    8                   0                    0                   0
<COMMON>                                     609                  656                 507                  508                 505
<OTHER-SE>                               247,891               25,990             164,675               59,499              44,296
<TOTAL-LIABILITY-AND-EQUITY>             969,893              623,774             855,165              711,405             577,417
<SALES>                                  529,528              620,931             131,196              128,599             141,737
<TOTAL-REVENUES>                         529,528              620,931             131,196              128,599             141,737
<CGS>                                    149,304              189,219              39,278               38,687              40,326
<TOTAL-COSTS>                            859,963            1,028,645             236,835              225,577             263,268
<OTHER-EXPENSES>                               0                    0                   0                    0                   0
<LOSS-PROVISION>                               0                    0                   0                    0                   0
<INTEREST-EXPENSE>                        17,423               16,152               3,977                3,560               4,798
<INCOME-PRETAX>                         (347,858)            (423,866)           (109,636)            (100,538)           (126,329)
<INCOME-TAX>                              28,602               71,044               7,527               (2,918)            (13,167)
<INCOME-CONTINUING>                     (376,460)            (494,910)           (117,163)             (97,620)           (113,162)
<DISCONTINUED>                                 0                    0                   0                    0                   0
<EXTRAORDINARY>                                0                    0                   0                    0                   0
<CHANGES>                                      0                    0                   0                    0                   0
<NET-INCOME>                            (376,460)            (494,910)           (117,163)             (97,620)           (113,162)
<EPS-PRIMARY>                             $(6.56)              $(7.48)             $(1.80)              $(1.49)             $(1.72)
<EPS-DILUTED>                             $(6.56)              $(7.48)             $(1.80)              $(1.49)             $(1.72)
        

</TABLE>

<TABLE> <S> <C>

<PAGE>
<ARTICLE> 5
<RESTATED> 
       
<S>                             <C>                     <C>                     <C>
<PERIOD-TYPE>                     3-MOS                   3-MOS                   3-MOS
<FISCAL-YEAR-END>                          JAN-03-1998             JAN-02-1999             JAN-02-1999
<PERIOD-START>                             OCT-05-1997             JAN-04-1998             APR-05-1998
<PERIOD-END>                               JAN-03-1998             APR-04-1998             JUL-04-1998
<CASH>                                         188,956                 244,768                 221,839
<SECURITIES>                                         0                       0                       0
<RECEIVABLES>                                  161,927                 105,933                 112,146
<ALLOWANCES>                                    47,643                  46,732                  45,972
<INVENTORY>                                     39,382                  45,979                  43,737
<CURRENT-ASSETS>                               426,128                 446,006                 428,348
<PP&E>                                          51,798                  55,630                  61,776
<DEPRECIATION>                                   2,559                   2,863                   2,992
<TOTAL-ASSETS>                                 623,774                 705,957                 661,577
<CURRENT-LIABILITIES>                          220,192                 209,771                 206,925
<BONDS>                                        294,356                 190,955                 190,955
                                0                       0                       0
                                          8                       8                       8
<COMMON>                                           505                     518                     579
<OTHER-SE>                                      56,027                 248,353                 228,282
<TOTAL-LIABILITY-AND-EQUITY>                   623,774                 705,957                 661,577
<SALES>                                        219,399                 179,336                 171,983
<TOTAL-REVENUES>                               219,399                 179,336                 171,983
<CGS>                                           70,928                  59,402                  62,626
<TOTAL-COSTS>                                  302,967                 301,838                 225,475
<OTHER-EXPENSES>                                     0                       0                       0
<LOSS-PROVISION>                                     0                       0                       0
<INTEREST-EXPENSE>                               3,797                   4,370                 (1,579)
<INCOME-PRETAX>                               (87,365)               (126,872)                (51,913)
<INCOME-TAX>                                    79,602                       0                       0
<INCOME-CONTINUING>                          (166,967)               (126,872)                (51,913)
<DISCONTINUED>                                       0                       0                       0
<EXTRAORDINARY>                                      0                       0                       0
<CHANGES>                                            0                       0                       0
<NET-INCOME>                                 (166,967)               (126,872)                (51,913)
<EPS-PRIMARY>                                  $(2.50)                 $(1.83)                 $(0.68)
<EPS-DILUTED>                                  $(2.50)                 $(1.83)                 $(0.68)
        

</TABLE>


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