Quarterly report pursuant to Section 13 or 15(d)

Fee Revenue

Fee Revenue
3 Months Ended
Jul. 31, 2023
Revenue from Contract with Customer [Abstract]  
Fee Revenue Fee Revenue
Contract Balances
A contract asset (unbilled receivables) is recorded when the Company transfers control of products or services before there is an unconditional right to payment. A contract liability (deferred revenue) is recorded when cash is received in advance of performance of the obligation. Deferred revenue represents the future performance obligations to transfer control of products or services for which we have already received consideration. Deferred revenue is presented in other accrued liabilities on the consolidated balance sheets.
The following table outlines the Company’s contract asset and liability balances as of July 31, 2023 and April 30, 2023:
July 31, 2023 April 30, 2023
(in thousands)
Contract assets-unbilled receivables $ 114,635  $ 99,442 
Contract liabilities-deferred revenue $ 241,734  $ 257,067 
During the three months ended July 31, 2023, we recognized revenue of $88.2 million that was included in the contract liabilities balance at the beginning of the period.
Performance Obligations
The Company has elected to apply the practical expedient to exclude the value of unsatisfied performance obligations for contracts with a duration of one year or less, which applies to all executive search, professional search and to most of the fee revenue from the interim business. As of July 31, 2023, the aggregate transaction price allocated to the performance obligations that are unsatisfied for contracts with an expected duration of greater than one year at inception was $1,049.0 million. Of the $1,049.0 million of remaining performance obligations, the Company expects to recognize approximately $470.5 million in the remainder of fiscal 2024, $344.2 million in fiscal 2025, $144.6 million in fiscal 2026 and the remaining $89.7 million in fiscal 2027 and thereafter. However, this amount should not be considered an indication of the Company’s future revenue as contracts with an initial term of one year or less are not included. Further, our contract terms and conditions allow for clients to increase or decrease the scope of services and such changes do not increase or decrease a performance obligation until the Company has an enforceable right to payment.
Disaggregation of Revenue
The Company disaggregates its revenue by line of business and further by region for Executive Search. This information is presented in Note 10—Segments.
The following table provides further disaggregation of fee revenue by industry:
Three Months Ended July 31,
2023 2022
Dollars % Dollars %
(dollars in thousands)
Industrial $ 201,918  28.9  % $ 195,909  28.2  %
Financial Services 128,324  18.3  118,799  17.1 
Life Sciences/Healthcare 119,354  17.1  133,204  19.1 
Technology 115,773  16.6  122,652  17.6 
Consumer Goods 96,427  13.8  95,948  13.8 
Education/Non–Profit/General 37,393  5.3  29,391  4.2 
Fee Revenue $ 699,189  100.0  % $ 695,903  100.0  %