Revenue (Notes)

3 Months Ended

Jul. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Note 3. Revenue

Revenue from sales of our products and services is recognized either at the point in time when control of the products is transferred to our customers or over time as services are provided in an amount that reflects the consideration we expect to be entitled to in exchange for the products or services. See Note 2. Summary of Significant Accounting Policies for additional information related to our revenue recognition policies and Note 4. Segment Reporting for a description of each segment's product and service offerings.

Disaggregation of Revenue

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

	13 weeks ended
	July 31, 2021		August 1, 2020
Retail
Product Sales (a)	$	189,058	$	141,826
Rental Income	13,024		10,804
Service and Other Revenue (b)	8,387		6,146
Retail Total Sales	$	210,469	$	158,776
Wholesale Sales	$	44,484	$	80,294
DSS Sales (c)	$	8,303	$	5,872
Eliminations (d)	$	(22,462)	$	(40,928)
Total Sales	$	240,794	$	204,014

(a)Effective April 4, 2021, as contemplated by the FLC Partnership's merchandising agreement, logo and emblematic general merchandise sales were fulfilled by FLC. During the first quarter of Fiscal 2022, as contemplated by the FLC Partnership's e-commerce agreement, we began to transition certain of our e-commerce sites to Fanatics e-commerce sites for logo and emblematic products. As the logo and emblematic general merchandise sales are fulfilled by FLC and Fanatics, we recognize commission revenue earned for these sales on a net basis in our condensed consolidated financial statements, as compared to the recognition of logo and emblematic general merchandise sales on a gross basis in the prior year.

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

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

(d)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 July 31, 2021, August 1, 2020 and May 1, 2021 on our condensed 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 consists of the following:

•advanced payments from customers related to textbook rental and subscription-based performance obligations, which are recognized ratably over the terms of the related rental or subscription periods;

•unsatisfied performance obligations associated with partnership marketing services, which are recognized when the contracted services are provided to our partnership marketing customers; and

•unsatisfied performance obligations associated with the premium paid for the sale of treasury shares, which are expected to be recognized over the term of the e-commerce and merchandising contracts for Fanatics and FLC, respectively.

Deferred revenue of $16,028, $16,270, and $13,469 is recorded in accrued liabilities and $4,561, $0, and $4,670 is recorded in other long-term liabilities on our condensed consolidated balance sheets for the periods ended July 31, 2021,

August 1, 2020 and May 1, 2021, respectively. As of July 31, 2021, we expect to recognize $16,028 of the deferred revenue balance within the next 12 months. The following table presents changes in contract liabilities:

	13 weeks ended
	July 31, 2021		August 1, 2020
Deferred revenue at the beginning of period	$	18,139	$	13,373
Additions to deferred revenue during the period	21,857		21,411
Reductions to deferred revenue for revenue recognized during the period	(19,407)		(18,514)
Deferred revenue balance at the end of period	$	20,589	$	16,270