| SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure |
Schedule II JOHN WILEY & SONS, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED APRIL 30, 2025, 2024, AND 2023 (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | Description | | Balance at
Beginning
of Period | | Charged to
Expenses | | Deductions From Reserves and Other(1) | | Balance at
End of Period | | Year Ended April 30, 2025 | | | | | | | | | Allowance for sales returns(3) | | $ | 14,448 | | | $ | 12,529 | | | $ | 17,993 | | | $ | 8,984 | | | Allowance for doubtful accounts | | $ | 17,297 | | | $ | 839 | | | $ | 4,964 | | | $ | 13,172 | | | Allowance for inventory obsolescence | | $ | 11,919 | | | $ | 4,705 | | | $ | 5,502 | | | $ | 11,122 | | Valuation allowance on deferred tax assets(2) | | $ | 53,498 | | | $ | 20,816 | | | $ | (2,995) | | | $ | 77,309 | | | Year Ended April 30, 2024 | | | | | | | | | Allowance for sales returns(3) | | $ | 14,419 | | | $ | 21,158 | | | $ | 21,129 | | | $ | 14,448 | | | Allowance for doubtful accounts | | $ | 18,662 | | | $ | 3,844 | | | $ | 5,209 | | | $ | 17,297 | | | Allowance for inventory obsolescence | | $ | 12,990 | | | $ | 5,906 | | | $ | 6,977 | | | $ | 11,919 | | Valuation allowance on deferred tax assets(2) | | $ | 27,448 | | | $ | 24,620 | | | $ | (1,430) | | | $ | 53,498 | | | Year Ended April 30, 2023 | | | | | | | | | Allowance for sales returns(3) | | $ | 19,422 | | | $ | 24,439 | | | $ | 29,442 | | | $ | 14,419 | | | Allowance for doubtful accounts | | $ | 21,221 | | | $ | 347 | | | $ | 2,906 | | | $ | 18,662 | | | Allowance for inventory obsolescence | | $ | 11,219 | | | $ | 7,222 | | | $ | 5,451 | | | $ | 12,990 | | Valuation allowance on deferred tax assets(2) | | $ | 30,000 | | | $ | (4,037) | | | $ | (1,485) | | | $ | 27,448 | |
| | | | | | (1) | Deductions From Reserves and Other for the years ended April 30, 2025, 2024, and 2023 include foreign exchange translation adjustments. Included in Allowance for doubtful accounts are accounts written off, less recoveries as well as amounts reclassified as held-for-sale or sold as of April 30, 2024. Included in Allowance for inventory obsolescence are items removed from inventory. |
| | | | | | (2) | Included in Valuation allowance on deferred tax assets for the years ended April 30, 2025, 2024, and 2023 are valuation allowances related to, and required with respect to, foreign tax credits generated by tax reform enacted in December 2017. In connection with a 5-year loss carryback and a subsequent audit, certain foreign tax credits requiring a valuation allowance were reinstated. In fiscal year 2024, due to temporary differences in the US, our deferred taxes reversed from a net deferred tax liability position to a net deferred tax asset position. Due to losses in the US resulting from impairments, restructuring, and acceleration of amortization expense on capitalized software, we concluded it was more-likely-than-not that all or a portion of our deferred tax asset may not be realized. As a result, we established a valuation allowance of $30.2 million. During fiscal year 2025 we increased this valuation allowance by $26.0 million, because of an increase in the US net deferred tax asset attributable primarily to interest expense disallowance and intangible and fixed assets. |
| | | | | | (3) | Allowance for sales returns represents anticipated returns net of a recovery of inventory and royalty costs. The provision is reported as a reduction of gross sales to arrive at revenue and the reserve balance is reported as an increase in Contract liabilities with a corresponding increase in Inventories, net and a reduction in Accrued royalties for the years ended April 30, 2025, 2024, and 2023. |
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