Revenues Revenues

12 Months Ended

May 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 during the year ended May 31:

	2024		2023		2022
Book Clubs - U.S.	$	62.7	$	117.8	$	126.4
Book Fairs - U.S.		541.6		553.1		429.7
Trade - U.S.		300.6		325.8		344.0
Trade - International (1)		50.3		41.3		46.4
Total Children's Book Publishing and Distribution		955.2		1,038.0		946.5
Education Solutions - U.S.		351.2		386.6		393.6
Total Education Solutions		351.2		386.6		393.6
International - Major Markets (2)		228.6		229.7		237.1
International - Other Markets (3)		45.0		49.7		65.7
Total International		273.6		279.4		302.8
Total Revenues (4)	$	1,580.0	$	1,704.0	$	1,642.9

(1) Primarily includes foreign rights and certain product sales in the UK.

(2) Includes Canada, UK, Australia and New Zealand.

(3) Primarily includes markets in Asia.

(4) Total revenues of $1,589.7 for fiscal year ended May 31, 2024 included rental income of $9.7 related to leased space in the Company's headquarters which was not allocated to a segment. Rental income of $7.1 and $6.1 was recognized as a reduction to Selling, general and administrative expenses for fiscal years ended May 31, 2023 and 2022, respectively.

Estimated Returns

A liability for expected returns of $33.1 and $34.9 was recorded within Other accrued expenses on the Company's Consolidated Balance Sheets as of May 31, 2024 and 2023, respectively. In addition, a return asset of $4.2 and $4.7 was recorded within Prepaid expenses and other current assets as of May 31, 2024 and 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 balance for the years ended May 31:

	2024		2023
Book fairs incentive credits	$	114.2	$	110.8
Magazines+ subscriptions		4.6		5.0
U.S. digital subscriptions		15.6		22.8
U.S. education-related (1)		10.1		9.8
Stored value programs		16.7		12.4
Other (2)		6.4		8.3
Total contract liabilities	$	167.6	$	169.1

(1) Primarily includes deferred revenue related to contracts with school districts and professional services.

(2) Primarily includes deferred revenue 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. As of May 31, 2024, contract liabilities of $161.1 are recorded within Deferred revenue on the Company's Consolidated Balance Sheet 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 $6.5 of contract liabilities, as of May 31, 2024, are recorded within Other noncurrent liabilities on the Company's Consolidated Balance Sheet as the associated performance obligations are expected to be satisfied, and related revenue recognized, in excess of one year. Contract liabilities of $169.1, as of May 31, 2023, are recorded within Deferred revenue on the Company's Consolidated Balance Sheets. The amount of revenue recognized during the years ended May 31, 2024 and 2023 included within the opening Deferred revenue balance was $138.0 and $146.4, 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, 2023	$	16.7
Current period provision		5.2
Write-offs and other		(7.0)
Balance as of May 31, 2024	$	14.9