Cancellation Reserves

3 Months Ended

May 31, 2022

Cancellation Reserves [Abstract]

Cancellation Reserves

Cancellation Reserves

We recognize revenue for EPP products, on a net basis, at the time of sale. We also record a reserve, or refund liability, for estimated contract cancellations.  Cancellations of these services may result from early termination by the customer, or default or prepayment on the finance contract.  The reserve for cancellations is evaluated for each product and is based on forecasted forward cancellation curves utilizing historical experience, recent trends and credit mix of the customer base. 

Cancellation Reserves

	Three Months Ended May 31
(In millions)	2022		2021
Balance as of beginning of period	$	144.7	$	124.5
Cancellations	(27.7)		(20.2)
Provision for future cancellations	31.7		34.1
Balance as of end of period	$	148.7	$	138.4

The current portion of estimated cancellation reserves is recognized as a component of accrued expenses and other current liabilities with the remaining amount recognized in other liabilities. As of May 31, 2022 and February 28, 2022, the current portion of cancellation reserves was $81.0 million and $78.7 million, respectively.