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Revenues Revenues | 12 Months Ended
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May 31, 2026
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 during the year ended May 31:
| 2026 |  | 2025 |  | 2024
Book Clubs - U.S. | $ | 57.1 |  |  | $ | 64.2 |  |  | $ | 62.7 |
Book Fairs - U.S. |  | 576.0 |  |  |  | 548.3 |  |  |  | 541.6 |
Trade - U.S. (1) |  | 289.9 |  |  |  | 304.7 |  |  |  | 298.7 |
Trade - International (2) |  | 41.2 |  |  |  | 46.7 |  |  |  | 50.3 |
Total Children's Book Publishing and Distribution |  | 964.2 |  |  |  | 963.9 |  |  |  | 953.3 |
Education - U.S. |  | 267.6 |  |  |  | 309.8 |  |  |  | 351.2 |
Total Education |  | 267.6 |  |  |  | 309.8 |  |  |  | 351.2 |
Entertainment - U.S. (1) |  | 8.8 |  |  |  | 5.2 |  |  |  | 1.9 |
Entertainment - International |  | 56.9 |  |  |  | 55.8 |  |  |  | — |
Total Entertainment |  | 65.7 |  |  |  | 61.0 |  |  |  | 1.9 |
International - Major Markets (3) |  | 235.9 |  |  |  | 241.6 |  |  |  | 228.6 |
International - Other Markets (4) |  | 41.3 |  |  |  | 38.0 |  |  |  | 45.0 |
Total International |  | 277.2 |  |  |  | 279.6 |  |  |  | 273.6 |
Overhead (5) |  | 7.2 |  |  |  | 11.2 |  |  |  | 9.7 |
Total Revenues | $ | 1,581.9 |  |  | $ | 1,625.5 |  |  | $ | 1,589.7 |
(1) The 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 fiscal 2024 have been reclassified to Entertainment to reflect this change. (2) Primarily includes foreign rights and certain product sales in the UK. (3) Includes Canada, UK, Australia and New Zealand. (4) Primarily includes markets in Asia. (5) Overhead includes rental income related to leased space in the Company's headquarters. As a result of the sale and leaseback transactions completed during the third quarter of fiscal 2026, the Company no longer owns the underlying leasable space. Refer to Note 4, "Sale and Leaseback Transactions", and Note 11, "Leases", for further details. Estimated Returns A liability for expected returns of $32.2 and $34.4 was recorded within Other accrued expenses on the Company's Consolidated Balance Sheets as of May 31, 2026 and 2025, respectively. In addition, a return asset of $4.4 and $3.7 was recorded within Prepaid expenses and other current assets as of May 31, 2026 and 2025, 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 balance for the years ended May 31:
| 2026 | 2025
Book fairs incentive credits | $ | 127.2 |  |  | $ | 122.1 |  |
Magazines+ subscriptions |  | 3.6 |  |  |  | 3.9 |  |
U.S. digital subscriptions |  | 6.6 |  |  |  | 11.1 |  |
U.S. education-related (1) |  | 5.7 |  |  |  | 7.5 |  |
Entertainment-related (2) |  | 10.9 |  |  |  | 8.2 |  |
Stored value programs |  | 22.5 |  |  |  | 22.4 |  |
Other (3) |  | 5.4 |  |  |  | 7.8 |  |
Total contract liabilities | $ | 181.9 |  |  | $ | 183.0 |  |
(1) Primarily relates to contracts with school districts and professional services. (2) Primarily relates to contracts for film and TV productions and production services. (3) Primarily relates to contracts for 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 $179.2 and $178.8 as of May 31, 2026 and 2025, respectively, are recorded within Deferred revenue on the Company's 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 $2.7 and $4.2 of contract liabilities as of May 31, 2026 and 2025, respectively, are recorded within Other noncurrent liabilities on the Company's Consolidated Balance Sheets as the associated performance obligations are expected to be satisfied, and related revenue recognized, in excess of one year. The amount of revenue recognized during the years ended May 31, 2026 and 2025 included within the opening Deferred revenue balance was $158.5 and $136.8, respectively. Allowance for Credit Losses The following table presents the change in the allowance for credit losses, which is included in Accounts Receivable, net on the Consolidated Balance Sheets:
| Allowance for Credit Losses |
Balance as of June 1, 2025 | $ | 11.0 |  |
Current period provision |  | 6.5 |  |
Write-offs and other |  | (6.5) |  |
Balance as of May 31, 2026 | $ | 11.0 |  |

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