XML 36 R25.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Revenues (Tables) | 3 Months Ended
--- | ---
Aug. 31, 2018
Revenue from Contract with Customer [Abstract] |
Schedule of Impact of Adoption of New Accounting Standards | The following table illustrates the amounts by which each summarized income statement line item was affected by the adoption of Topic 606:
|  | Three months ended August 31, 2018
|  | As reported | Adjustments |  | Without adoption of Topic 606
Revenues |  | $ | 218.4 |  | $ | (12.5 | ) | (1) | $ | 205.9 |
Cost of goods sold |  | 125.3 |  | (4.1 | ) | (1) | 121.2 |
Selling, general and administrative expenses |  | 163.7 |  | (3.2 | ) | (2) | 160.5 |
Depreciation and amortization |  | 13.2 |  | — |  |  | 13.2 |
Operating income (loss) |  | (83.8 | ) | (5.2 | ) |  | (89.0 | )
Interest income (expense), net |  | 0.8 |  | — |  |  | 0.8 |
Other components of net periodic benefit (cost) |  | (0.4 | ) | — |  |  | (0.4 | )
Provision (benefit) for income taxes |  | (22.1 | ) | (1.4 | ) | (3) | (23.5 | )
Net income (loss) |  | $ | (61.3 | ) | $ | (3.8 | ) |  | $ | (65.1 | )
Basic earnings (loss) per share: |  | $ | (1.75 | ) | $ | (0.11 | ) |  | $ | (1.86 | )
Diluted earnings (loss) per share: |  | $ | (1.75 | ) | $ | (0.11 | ) |  | $ | (1.86 | )
(1) - Represents incremental revenue and cost of goods sold related to the redemption of book fairs incentive program credits, partially offset by additional deferred revenue on incentive credits awarded during the period. (2) - Represents direct response advertising costs being expensed as incurred. (3) - Represents the income tax impact of Topic 606 adjustments. The cumulative effect of the changes made to the Company’s condensed consolidated balance sheet at June 1, 2018 are as follows:
| As reported - May 31, 2018 | Adjustments due to adoption |  | June 1, 2018
Accounts receivable, net | $ | 204.9 |  | $ | 31.1 |  | (1) | $ | 236.0 |
Inventories, net | 294.9 |  | (1.9 | ) | (2) | 293.0 |
Prepaid expenses and other current assets | 66.6 |  | (4.3 | ) | (2) | 62.3 |
Noncurrent deferred income taxes | 25.2 |  | 16.0 |  | (3) | 41.2 |
Deferred revenue | 24.7 |  | 86.3 |  | (4) | 111.0 |
Other accrued expenses | 177.9 |  | 1.1 |  | (5) | 179.0 |
Retained earnings | $ | 1,065.2 |  | $ | (46.5 | ) |  | $ | 1,018.7 |
(1) - Primarily represents the reclassification of the Company’s accounting for estimated returns from a reduction to Accounts receivable, net, to a current liability within Other accrued expenses. (2) - Primarily represents the adjustment for previously capitalized direct response advertising costs of $5.5 and the reclassification of a return asset from Inventory to Prepaid expenses and other current assets. (3) - Represents the income tax impact of Topic 606 adjustments. (4) - Represents the deferred revenue related to outstanding book fairs incentive credits as of June 1, 2018. (5) - Represents a reduction to Other accrued expenses of $27.2 for outstanding book fair incentive credits as of June 1, 2018. This decrease was offset by a $28.3 increase for estimated returns recorded to Other accrued expenses.
Schedule of Disaggregation of Revenue | The following table presents the Company’s revenues disaggregated by region and channel:
| Three months ended August 31,
| 2018 | 2017
Book Clubs | $ | 9.1 |  | $ | 8.0 |
Book Fairs | 25.2 |  | 12.1 |
Trade | 59.0 |  | 46.7 |
Total Children's Book Publishing & Distribution | 93.3 |  | 66.8 |
Education | 50.3 |  | 45.0 |
Major Markets (1) | 50.3 |  | 51.7 |
Other Markets(2) | 24.5 |  | 25.7 |
Total International | 74.8 |  | 77.4 |
Total Revenues | $ | 218.4 |  | $ | 189.2 |
(1) - Includes Canada, UK, Australia and New Zealand.

X
- Definition Tabular disclosure of disaggregation of revenue into categories depicting how nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factor. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=109196051&loc=SL49130545-203045 + Details
Name: | us-gaap_DisaggregationOfRevenueTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in an accounting estimate, including a change that occurs in an interim period. If a change in accounting estimate affects several future periods (for example, a change in the service life of a depreciable asset) disclose the effect on income from continuing operations, net income (or other appropriate captions of changes in the applicable net assets or performance indicator), and any related per-share amounts of the current period. Disclosure of the effects of a change in an accounting estimate that occurs in the ordinary course of business (such as uncollectible accounts or inventory obsolescence) is not required, unless the effect is material. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.10-01.(a)(5)) -URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 45 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=109236672&loc=d3e777-108305 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 45 -Paragraph 18 -URI http://asc.fasb.org/extlink&oid=115929471&loc=d3e21843-107793 + Details
Name: | us-gaap_ScheduleOfChangeInAccountingEstimateTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration