XML 22 R10.htm IDEA: XBRL DOCUMENT
v3.24.3

Revenues | 3 Months Ended
--- | ---
Aug. 31, 2024
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 |
| August 31, |
| 2024 | 2023 |  |
Book Clubs - U.S. | $ | 2.7 |  |  | $ | 2.6 |  |  |  |  |  |  |  |
Book Fairs - U.S. |  | 28.8 |  |  |  | 27.3 |  |  |  |  |  |  |  |
Trade - U.S. (1) |  | 58.2 |  |  |  | 62.1 |  |  |  |  |  |  |  |
Trade - International (2) |  | 15.7 |  |  |  | 10.4 |  |  |  |  |  |  |  |
Total Children's Book Publishing and Distribution | $ | 105.4 |  |  | $ | 102.4 |  |  |  |  |  |  |  |
Education Solutions - U.S. | $ | 55.7 |  |  | $ | 66.0 |  |  |  |  |  |  |  |
Total Education Solutions | $ | 55.7 |  |  | $ | 66.0 |  |  |  |  |  |  |  |
Entertainment - U.S. | $ | 1.6 |  |  | $ | 0.4 |  |  |  |  |  |  |  |
Entertainment - International (3) |  | 15.0 |  |  |  | — |  |  |  |  |  |  |  |
Total Entertainment (1) | $ | 16.6 |  |  | $ | 0.4 |  |  |  |  |  |  |  |
International - Major Markets (4) | $ | 48.1 |  |  | $ | 47.8 |  |  |  |  |  |  |  |
International - Other Markets (5) |  | 8.7 |  |  |  | 9.4 |  |  |  |  |  |  |  |
Total International | $ | 56.8 |  |  | $ | 57.2 |  |  |  |  |  |  |  |
Overhead (6) | $ | 2.7 |  |  | $ | 2.5 |  |  |  |  |  |  |  |
Total Overhead | $ | 2.7 |  |  | $ | 2.5 |  |  |  |  |  |  |  |
Total | $ | 237.2 |  |  | $ | 228.5 |  |  |  |  |  |  |  |
(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 months ended August 31, 2023 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 $30.7, $33.1, and $33.1 is recorded within Other accrued expenses as of August 31, 2024, May 31, 2024, and August 31, 2023, respectively. In addition, a return asset of $3.9, $4.2, and $5.4 is recorded within Prepaid expenses and other current assets as of August 31, 2024, May 31, 2024, and August 31, 2023, 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:
| August 31, 2024 | May 31, 2024 | August 31, 2023
Book fairs incentive credits | $ | 99.4 |  |  | $ | 114.2 |  |  | $ | 96.1 |  |
Magazines+ subscriptions |  | 22.2 |  |  |  | 4.6 |  |  |  | 24.2 |  |
U.S. digital subscriptions |  | 19.2 |  |  |  | 15.6 |  |  |  | 26.8 |  |
U.S. education-related (1) |  | 10.3 |  |  |  | 10.1 |  |  |  | 12.1 |  |
Media-related |  | 6.8 |  |  |  | 0.0 |  |  |  | 0.0 |  |
Stored value cards |  | 17.3 |  |  |  | 16.7 |  |  |  | 13.1 |  |
Other (2) |  | 5.0 |  |  |  | 6.4 |  |  |  | 9.4 |  |
Total contract liabilities | $ | 180.2 |  |  | $ | 167.6 |  |  | $ | 181.7 |  |
(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 $173.9, $161.1 and $171.1 as of August 31, 2024, May 31, 2024 and August 31, 2023, 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 $6.3, $6.5 and $10.6 of contract liabilities as of August 31, 2024, May 31, 2024 and August 31, 2023, 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 $29.2 and $32.3 for the three months ended August 31, 2024, and August 31, 2023, 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 |  |

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 The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration