Revenues

6 Months Ended

Nov. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenues

REVENUES

Disaggregated Revenue Data

The following table presents the Company’s segment revenues disaggregated by region and domestic channel:

	Three months ended				Six months ended
	November 30,				November 30,
	2022		2021		2022		2021
Book Clubs - U.S.	$	57.6	$	51.9	$	63.9	$	58.7
Book Fairs - U.S.		240.8		176.2		269.1		192.2
Trade - U.S.		107.9		109.4		184.1		189.5
Trade - International(1)		12.0		15.0		25.9		27.9
Total Children's Book Publishing and Distribution	$	418.3	$	352.5	$	543.0	$	468.3
Education Solutions - U.S.	$	80.0	$	79.5	$	153.2	$	159.6
Total Education Solutions	$	80.0	$	79.5	$	153.2	$	159.6
International - Major Markets(2)	$	77.1	$	78.8	$	130.5	$	126.3
International - Other Markets(3)		12.5		13.4		24.1		29.8
Total International	$	89.6	$	92.2	$	154.6	$	156.1
Total Revenues	$	587.9	$	524.2	$	850.8	$	784.0

(1) Primarily includes foreign rights and certain product sales in the UK.

(2) Includes Canada, UK, Australia and New Zealand.

(3) Primarily includes markets in Asia.

Estimated Returns

A liability for expected returns of $43.9, $42.2, and $50.7 is recorded within Other accrued expenses as of November 30, 2022, May 31, 2022, and November 30, 2021, respectively. In addition, a return asset of $6.1, $5.3, and $5.0 is recorded within Prepaid expenses and other current assets as of November 30, 2022, May 31, 2022, and November 30, 2021, respectively, for the recoverable cost of product estimated to be returned by customers.

Deferred Revenue

The following table presents further detail regarding the Company's deferred revenue balance as of the dates indicated:

	November 30, 2022		May 31, 2022		November 30, 2021
Book fairs incentive credits	$	107.6	$	100.1	$	77.4
Magazines+ subscriptions		55.5		4.5		54.8
U.S. digital subscriptions		22.3		19.5		20.9
U.S. education-related(1)		13.4		13.6		9.8
Media-related		10.6		15.8		8.5
Stored value cards		13.8		9.4		9.2
Other(2)		9.5		9.9		11.7
Total deferred revenue	$	232.7	$	172.8	$	192.3

(1) Primarily includes deferred revenue related to contracts with school districts and professional services.

(2) Primarily includes deferred revenue related to various international products and services.

The Company's deferred revenue consists of contract liabilities for advance billings and payments received from customers in excess of revenue recognized and revenue allocated to outstanding book fairs incentive credits. These liabilities are recorded within Deferred revenue on the Company's Condensed Consolidated Balance Sheets and are classified as short term, as substantially all of the associated performance obligations are expected to be satisfied, and related revenue recognized, within one year. The Company recognized revenue

which was included in the opening Deferred revenue balance in the amount of $49.5 and $80.3 for the three and six months ended November 30, 2022, respectively, and $27.9 and $43.2 for the three and six months ended November 30, 2021, respectively.

Allowance for Credit Losses

The Company recognizes an allowance for credit losses on customer receivables that are expected to be incurred over the lifetime of the receivable. Reserves for estimated credit losses are established at the time of sale and are based on relevant information about past events, current conditions, and supportable forecasts impacting its ultimate collectability, including specific reserves on a customer-by-customer basis, creditworthiness of the Company’s customers and prior collection experience. The Company reviews new information as it becomes available and makes adjustments to the reserves accordingly. At the time the Company determines that a receivable balance, or any portion thereof, is deemed to be permanently uncollectible, the balance is then written off.

The following table presents the change in the allowance for credit losses, which is included in Accounts Receivable, net on the Condensed Consolidated Balance Sheets:

	Allowance for Credit Losses
Balance as of June 1, 2022	$	25.9
Current period provision (benefit)		(1.5)
Write-offs and other		(7.0)
Balance as of August 31, 2022	$	17.4
Current period provision		2.8
Write-offs and other		(2.8)
Balance as of November 30, 2022	$	17.4