XML 24 R10.htm IDEA: XBRL DOCUMENT v3.25.1
Revenues
 9 Months Ended
Feb. 28, 2025
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 endedNine months ended
February 28,February 29,February 28,February 29,
2025202420252024
Book Clubs - U.S.$15.2 $13.3 $51.1 $48.3 
Book Fairs - U.S.110.7 102.7 370.5 372.1 
Trade - U.S. (1)
68.9 69.5 218.1 232.2 
Trade - International (2)
8.5 7.6 36.0 35.3 
Total Children's Book Publishing and Distribution$203.3 $193.1 $675.7 $687.9 
Education Solutions - U.S.$57.2 $68.5 $184.1 $215.5 
Total Education Solutions$57.2 $68.5 $184.1 $215.5 
Entertainment - U.S.$1.0 $0.5 $3.9 $1.3 
Entertainment - International (3)
11.8 — 42.3 — 
Total Entertainment (1)
$12.8 $0.5 $46.2 $1.3 
International - Major Markets (4)
$49.7 $48.0 $173.4 $171.2 
International - Other Markets (5)
9.6 11.1 29.4 31.6 
Total International$59.3 $59.1 $202.8 $202.8 
Overhead (6)
$2.8 $2.5 $8.4 $7.3 
Total Overhead$2.8 $2.5 $8.4 $7.3 
Total$335.4 $323.7 $1,117.2 $1,114.8 
(1) The newly formed Entertainment segment includes the operations of SEI, which were included in the Children’s Book Publishing and Distribution segment in prior periods, and 9 Story. The financial results for SEI for the three and nine months ended February 29, 2024 have been reclassified to Entertainment to reflect this change.
(2) Primarily includes foreign rights and certain product sales in the UK.
(3) Primarily includes production, distribution and licensing revenues in Canada, Ireland and Indonesia.
(4) Includes Canada, UK, Australia and New Zealand.
(5) Primarily includes markets in Asia.
(6) Overhead includes rental income related to leased space in the Company's headquarters.

Estimated Returns

A liability for expected returns of $33.3, $33.1, and $38.3 is recorded within Other accrued expenses as of February 28, 2025, May 31, 2024, and February 29, 2024, respectively. In addition, a return asset of $3.8, $4.2, and $4.4 is recorded within Prepaid expenses and other current assets as of February 28, 2025, May 31, 2024, and February 29, 2024, respectively, for the recoverable cost of product estimated to be returned by customers.
Contract Liabilities

The following table presents further detail regarding the Company's contract liabilities as of the dates indicated:

February 28, 2025May 31, 2024February 29, 2024
Book fairs incentive credits$116.8 $114.2 $109.9 
Magazines+ subscriptions
28.1 4.6 30.5 
U.S. digital subscriptions15.3 15.6 16.8 
U.S. education-related (1)
9.5 10.1 10.6 
Media-related7.3 0.0 0.1 
Stored value cards25.8 16.7 20.1 
Other (2)
7.5 6.4 12.1 
Total contract liabilities$210.3 $167.6 $200.1 
(1) Primarily includes contract liabilities related to contracts with school districts and professional services.
(2) Primarily includes contract liabilities related to various international products and services.

The Company's contract liabilities consist of advance billings and payments received from customers in excess of revenue recognized and revenue allocated to outstanding book fairs incentive credits. Contract liabilities of $205.2, $161.1 and $193.8 as of February 28, 2025, May 31, 2024 and February 29, 2024, respectively, 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 remaining $5.1, $6.5 and $6.3 of contract liabilities as of February 28, 2025, May 31, 2024 and February 29, 2024, respectively, are recorded within Other noncurrent liabilities on the Company's Condensed Consolidated Balance Sheet as the associated performance obligations are expected to be satisfied, and related revenue recognized, in excess of one year. The Company recognized revenue which was included in the opening Deferred revenue balance in the amount of $35.1 and $106.2 for the three and nine months ended February 28, 2025, respectively, and $33.0 and $113.7 for the three and nine months ended February 29, 2024, 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, 2024$14.9 
Provision (benefit)0.9 
Write-offs and other(0.4)
Balance as of August 31, 2024$15.4 
Provision (benefit)2.1 
Write-offs and other(2.6)
Balance as of November 30, 2024$14.9 
Provision (benefit)0.9 
Write-offs and other(1.9)
Balance as of February 28, 2025$13.9