Cancellation Reserves
 3 Months Ended
May. 31, 2015
Cancellation Reserves [Abstract]  
Cancellation Reserves

7.Cancellation Reserves

 

We recognize commission revenue for EPP products at the time of sale, net of a reserve 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

 

 

 

 

 

 

 

 

 

 

As of May 31

(In millions)

 

 

2015

 

 

2014

Balance as of beginning of year

 

$
94.4 

 

$
72.5 

Cancellations

 

 
(14.4)

 

 
(12.5)

Provision for future cancellations

 

 
20.3 

 

 
21.1 

Balance as of end of period

 

$
100.3 

 

$
81.1 

 

The current portion of estimated cancellation reserves is recognized as a component of other accrued expenses with the remaining amount recognized in other liabilities. As of May 31, 2015 and February 28, 2015, the current portion of cancellation reserves was $47.9 million and $44.8 million, respectively.