Note 4. Revenue

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. New disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers are also required.

We have analyzed the impacts of the guidance across all of our revenue streams and have adopted the standard using the modified retrospective method effective with the first quarter of Fiscal 2019. Financial results for reporting periods beginning after April 28, 2018 are presented in accordance with Topic 606, while comparative period information continues to reflect our historic accounting under the accounting standards in effect for those periods. There was no cumulative change to retained earnings as a result of adopting the guidance. We reclassified the product return asset of $2,610 from Merchandise Inventories, Net to Prepaid Expenses and Other Current Assets on the consolidated balance sheets for the period ended April 28, 2018.

See Part II - Item 8. Financial Statements and Supplementary Data - Note 2. Summary of Significant Accounting Pronouncements for additional information related to our revenue recognition policies and Part II - Item 8. Financial Statements and Supplementary Data - Note 7. Segment Reporting for a description of each segments product and service offerings.

Disaggregation of Revenue

The following table disaggregates the revenue associated with our major product and service offerings.



	53 weeks ended May 2, 2020			52 weeks ended April 27, 2019			52 weeks ended April 28, 2018
Retail
Product Sales	$	1,493,044		$	1,645,357		$	1,753,528
Rental Income	179,863			195,883			219,145
Service and Other Revenue ^(a)	39,985			47,768			51,868
Retail Total Sales	$	1,712,892		$	1,889,008		$	2,024,541
Wholesale Sales	$	198,353		$	223,374		$	258,369
DSS Sales ^(b)	$	23,661		$	21,339		$	15,762
Eliminations ^(c)	$	(83,843	)	$	(99,078	)	$	(95,055	)
Total Sales	$	1,851,063		$	2,034,643		$	2,203,617


(a)	Service and other revenue primarily relates to brand partnerships and other service revenues.


(b)	DSS sales primarily relate to direct-to-student subscription-based revenue.


(c)	The sales eliminations represent the elimination of Wholesale sales and fulfillment service fees to Retail and the elimination of Retail commissions earned from Wholesale.

Contract Assets and Contract Liabilities

Contract assets represent the sale of goods or services to a customer before we have the right to obtain consideration from the customer. Contract assets consist of unbilled amounts at the reporting date and are transferred to accounts receivable when the rights become unconditional. Contract assets (Unbilled Receivables) were $0 as of both May 2, 2020 and April 27, 2019 on our consolidated balance sheets.

Contract liabilities represent an obligation to transfer goods or services to a customer for which we have received consideration and consists of our deferred revenue liability (Deferred Revenue). Deferred revenue primarily consists of advanced payments from customers related to textbook rental and subscription-based performance obligations that have not yet been satisfied, as well as unsatisfied performance obligations associated with partnership marketing services. Deferred revenue is recognized ratably over the terms of the related rental or subscription periods, or when the contracted services are provided to our partnership marketing customers. Deferred revenue of $13,373 and $20,418 is recorded within Accrued Liabilities on our consolidated balance sheets for the periods ended May 2, 2020 and April 27, 2019, respectively.

The following table presents changes in contract liabilities during the fiscal year ended May 2, 2020:



Deferred revenue as of April 28, 2018	$	20,144
Additions to deferred revenue during the period	212,424
Reductions to deferred revenue for revenue recognized during the period	(212,150		)
Deferred revenue as of April 27, 2019	$	20,418
Additions to deferred revenue during the period	193,235
Reductions to deferred revenue for revenue recognized during the period	(200,280		)
Deferred revenue balance as of May 2, 2020	$	13,373

As of May 2, 2020, we expect to recognize $13,373 of the deferred revenue balance within in the next 12 months.