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Revenue Recognition, Contracts with Customers
 9 Months Ended
Jan. 31, 2021
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
January 31,
    
Nine Months Ended
January 31,
  
   
2021
    
2020
    
2021
    
2020
  
Research Publishing & Platforms:
                        
Research Publishing
  
$
229,327
    
$
223,393
    
$
700,482
    
$
668,405
  
Research Platforms
    
10,523
      
10,163
      
31,512
      
29,235
  
Total Research Publishing & Platforms
    
239,850
      
233,556
      
731,994
      
697,640
  
                                 
Academic & Professional Learning:
                                
Education Publishing
    
98,160
      
100,982
      
265,349
      
268,246
  
Professional Learning
    
75,955
      
77,296
      
206,269
      
232,615
  
Total Academic & Professional Learning
    
174,115
      
178,278
      
471,618
      
500,861
  
                                 
Education Services:
                                
Education Services OPM (1)
    
56,725
      
50,263
      
163,248
      
151,200
  
mthree (1)
    
12,222
      
5,034
      
38,389
      
7,165
  
Total Education Services
    
68,947
      
55,297
      
201,637
      
158,365
  
Total Revenue
  
$
482,912
    
$
467,131
    
$
1,405,249
    
$
1,356,866
  

(1)
In May 2020, we moved the IT bootcamp business acquired as part of The Learning House acquisition from Education Services Online Program Management (“OPM”) 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 accounts receivable, net and contract liabilities from contracts with customers.

  
January 31, 2021
    
April 30, 2020
    
Increase/
(Decrease)
  
Balances from contracts with customers:
                  
Accounts receivable, net
  
$
278,939
    
$
309,384
    
$
(30,445
)
Contract liabilities (1)
    
398,477
      
520,214
      
(121,737
)
Contract liabilities (included in Other Long-Term Liabilities)
  
$
18,145
    
$
14,949
    
$
3,196
  

(1)
The sales return reserve recorded in Contract Liabilities is $43.4 million and $32.8 million, as of January 31, 2021 and April 30, 2020, respectively. This increase was primarily driven by the negative impact of COVID-19 and the expected increase in print book returns.

For the nine months ended January 31, 2021, we estimate that we recognized revenue of approximately 97% that was included in the current contract liability balance at April 30, 2020.

The decrease in contract liabilities as of January 31, 2021 was driven by revenue earned primarily on journal subscriptions, open access and comprehensive agreements, test preparation and certification offerings and digital courseware, partially offset by renewals of journal subscription agreements, and comprehensive agreements and, to a lesser extent, the impact of foreign exchange.

Remaining Performance Obligations included in Contract Liability

As of January 31, 2021, the aggregate amount of the transaction price allocated to the remaining performance obligations is approximately $416.6 million, which included the sales return reserve of $43.4 million. Excluding the sales return reserve, we expect that approximately $355.1 million will be recognized in the next twelve months with the remaining $18.1 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 $11.8 million and $11.5 million at January 31, 2021 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 $1.3 million and $3.9 million during the three and nine months ended January 31, 2021, respectively, related to these assets within Cost of Sales on the Unaudited Condensed Consolidated Statements of Income. We recorded amortization expense of $1.0 million and $3.1 million during the three and nine months ended January 31, 2020, 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 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 $7.1 million and $20.3 million in shipping and handling costs in the three and nine months ended January 31, 2021, respectively. We incurred $7.7 million and $22.7 million in shipping and handling costs in the three and nine months ended January 31, 2020, respectively.