Cancellation Reserves

We recognize revenue for EPP products at the time of sale, net of a reserve for estimated contract cancellations. Cancellations of these services may result from early termination by the customer, or default or prepayment on the finance contract. The reserve for cancellations is evaluated for each product, and is based on forecasted forward cancellation curves utilizing historical experience, recent trends and credit mix of the customer base.

Cancellation Reserves



	Three Months Ended November 30						Nine Months Ended November 30
(In millions)	2016			2015			2016			2015
Balance as of beginning of period	$	113.3		$	108.1		$	110.2		$	94.4
Cancellations	(16.8		)	(16.9		)	(49.6		)	(45.6		)
Provision for future cancellations	15.9			18.6			51.8			61.0
Balance as of end of period	$	112.4		$	109.8		$	112.4		$	109.8

The current portion of estimated cancellation reserves is recognized as a component of accrued expenses and other current liabilities with the remaining amount recognized in other liabilities. As of November 30, 2016 and February 29, 2016, the current portion of cancellation reserves was $57.1 million and $54.4 million, respectively.