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Revenue Recognition, Contracts with Customers | 6 Months Ended
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Oct. 31, 2019
Revenue Recognition, Contracts with Customers [Abstract] |
Revenue Recognition, Contracts with Customers | Note 4 — Revenue Recognition, Contracts with Customers Disaggregation of Revenue As previously announced, we changed our segment reporting structure to align with our strategic focus areas. See Note 10, “Segment Information,” for more details. The following table presents our revenue from contracts with customers disaggregated by segment and product type.
|  | Three Months Ended October 31, |  |  | Six Months Ended October 31, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Research Publishing & Platforms: |  |  |  |  |  |  |  |  |  |  |  |
Research Publishing |  | $ | 225,085 |  |  | $ | 219,710 |  |  | $ | 445,012 |  |  | $ | 436,424 |
Research Platforms |  |  | 9,624 |  |  |  | 9,365 |  |  |  | 19,072 |  |  |  | 17,968 |
Total Research Publishing & Platforms |  |  | 234,709 |  |  |  | 229,075 |  |  |  | 464,084 |  |  |  | 454,392 |
Academic & Professional Learning: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Education Publishing |  |  | 101,741 |  |  |  | 107,474 |  |  |  | 167,264 |  |  |  | 181,508 |
Professional Learning |  |  | 75,984 |  |  |  | 82,196 |  |  |  | 155,319 |  |  |  | 164,586 |
Total Academic & Professional Learning |  |  | 177,725 |  |  |  | 189,670 |  |  |  | 322,583 |  |  |  | 346,094 |
Education Services: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Education Services |  |  | 53,771 |  |  |  | 29,877 |  |  |  | 103,068 |  |  |  | 59,037 |
Total Education Services |  |  | 53,771 |  |  |  | 29,877 |  |  |  | 103,068 |  |  |  | 59,037 |
Total Revenue |  | $ | 466,205 |  |  | $ | 448,622 |  |  | $ | 889,735 |  |  | $ | 859,523 |
Accounts Receivable, net and Contract Liability Balances When consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue when, or as, control of the products or services are transferred to the customer and all revenue recognition criteria have been met. The following table provides information about receivables and contract liabilities from contracts with customers.
|  | October 31, 2019 |  |  | April 30, 2019 |  |  | Increase/ (Decrease) |
Balances from contracts with customers: |  |  |  |  |  |  |  |  |
Accounts receivable, net |  | $ | 235,466 |  |  | $ | 294,867 |  |  | $ | (59,401 | )
Contract liabilities (1) |  |  | 248,653 |  |  |  | 507,365 |  |  |  | (258,712 | )
Contract liabilities (included in Other Long-Term Liabilities) |  | $ | 19,622 |  |  | $ | 10,722 |  |  | $ | 8,900 |
(1) | The sales return reserve recorded in Contract Liabilities is $37.7 million and $25.9 million, as of October 31, 2019 and April 30, 2019, respectively.
Revenue recognized for the three and six months ended October 31, 2019 relating to the contract liability at April 30, 2019 was $184.6 million and $378.9 million, respectively. Remaining Performance Obligations included in Contract Liability As of October 31, 2019, the aggregate amount of the transaction price allocated to the remaining performance obligations is approximately $268.3 million, which included the sales return reserve of $37.7 million. Excluding the sales return reserve, we expect that approximately $211.0 million will be recognized in the next twelve months with the remaining $19.6 million to be recognized thereafter. Assets Recognized for the Costs to Fulfill a Contract Costs to fulfill a contract are directly related to a contract that will be used to satisfy a performance obligation in the future and are expected to be recovered. These types of costs are incurred in the following revenue streams, (1) Research Platforms and (2) Education Services. Our assets associated with incremental costs to fulfill a contract were $10.3 million at October 31, 2019 and are included within Other Non-Current Assets on our Unaudited Condensed Consolidated Statements of Financial Position. We recorded amortization expense of $1.1 million and $2.1 million during the three and six months ended October 31, 2019, respectively, related to these assets within Cost of Sales on the Unaudited Condensed Consolidated Statements of Income. We recorded amortization expense of $0.4 million and $1.2 million during the three and six months ended October 31, 2018, respectively, related to these assets within Cost of Sales on the Unaudited Condensed Consolidated Statements of Income. Sales and value-added taxes are excluded from revenues. Shipping and handling costs, which are primarily incurred within the Academic & Professional Learning segment occur before the transfer of control of the related goods. Therefore, in accordance with the new revenue standard, it is not considered a promised service to the customer and would be considered a cost to fulfill our promise to transfer the goods. Costs incurred for third party shipping and handling are reflected in Operating and Administrative Expenses on the Unaudited Condensed Consolidated Statements of Income. We incurred $7.6 million and $15.0 million in shipping and handling costs in the three and six months ended October 31, 2019, respectively. We incurred $8.6 million and $16.5 million in shipping and handling costs in the three and six months ended October 31, 2018, respectively.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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