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Revenue Recognition, Contracts with Customers
 3 Months Ended
Jul. 31, 2020
Revenue Recognition, Contracts with Customers [Abstract]  
Revenue Recognition, Contracts with Customers
Note 4 — Revenue Recognition, Contracts with Customers

Disaggregation of Revenue

The following table presents our revenue from contracts with customers disaggregated by segment and product type.

  
Three Months Ended
July 31,
  
   
2020
    
2019
  
Research Publishing & Platforms:
            
Research Publishing
  
$
230,464
    
$
219,927
  
Research Platforms
    
10,346
      
9,448
  
Total Research Publishing & Platforms
    
240,810
      
229,375
  
                 
Academic & Professional Learning:
                
Education Publishing
    
64,084
      
65,523
  
Professional Learning
    
62,829
      
79,335
  
Total Academic & Professional Learning
    
126,913
      
144,858
  
                 
Education Services:
                
Education Services (1)
    
50,262
      
48,156
  
mthree (1)
    
13,341
      
1,141
  
Total Education Services
    
63,603
      
49,297
  
                 
Total Revenue
  
$
431,326
    
$
423,530
  

(1)
In May 2020, we moved the IT bootcamp business acquired as part of The Learning House acquisition from Education Services to mthree. As a result, the prior period revenue related to the IT bootcamp business has been included in mthree. There were no changes to our total Education Services or our consolidated financial results.

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.

  
July 31, 2020
    
April 30, 2020
    
Increase/
(Decrease)
  
Balances from contracts with customers:
                  
Accounts receivable, net
  
$
282,412
    
$
309,384
    
$
(26,972
)
Contract liabilities (1)
    
408,954
      
520,214
      
(111,260
)
Contract liabilities (included in Other Long-Term Liabilities)
  
$
15,357
    
$
14,949
    
$
408
  

(1)
The sales return reserve recorded in Contract Liabilities is $39.4 million and $32.8 million, as of July 31, 2020 and April 30, 2020, respectively.

For the three months ended July 31, 2020, we estimate that we recognized revenue of approximately 38% that was included in the current contract liability at April 30, 2020.

The decrease in contract liabilities as of July 31, 2020 was driven by revenue earned primarily on journal subscriptions, open access and comprehensive agreements, and test preparation and certification offerings, partially offset by renewals of journal subscription agreements, and comprehensive agreements, and the impact of foreign exchange.

Remaining Performance Obligations included in Contract Liability

As of July 31, 2020, the aggregate amount of the transaction price allocated to the remaining performance obligations is approximately $424.3 million, which included the sales return reserve of $39.4 million. Excluding the sales return reserve, we expect that approximately $369.5 million will be recognized in the next twelve months with the remaining $15.4 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 costs are amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. 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 $11.6 million and $11.5 million at July 31, 2020 and April 30, 2020, respectively, and are included within Other Non-Current Assets on our Unaudited Condensed Consolidated Statements of Financial Position. We recorded amortization expense of $1.2 million and $1.0 million during the three months ended July 31, 2020 and 2019, respectively, related to these assets within Cost of Sales on our 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 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 primarily reflected in Operating and Administrative Expenses on our Unaudited Condensed Consolidated Statements of Income. We incurred $6.7 million and $7.4 million in shipping and handling costs in the three months ended July 31, 2020 and 2019, respectively.