7. Fee Revenue

Substantially all fee revenue is derived from fees for professional services related to executive and professional recruitment performed on a retained basis, recruitment process outsourcing, talent and organizational advisory services and the sale of products, standalone or as part of a solution. The Company adopted ASC 606 in its fiscal year beginning May 1, 2018 using the modified retrospective transition method applied to those contracts still outstanding and not completed as of May 1, 2018.

Effect of the Adoption of ASC 606

For the three months ended July 31, 2018, the Company recorded $0.2 million in additional revenue related to adoption of ASC 606. The impact of adoption to the balance sheet was immaterial.

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 sheet.

The following table outlines our contract asset and liability balances as of July 31, 2018 and May 1, 2018:

	July 31, 2018		May 1, 2018
	(in thousands)
Contract assets (unbilled receivables)	$	68,570	$	65,164
Contract liabilities (deferred revenue)	$	104,581	$	114,695

During the three months ended July 31, 2018, we recognized revenue of $66.5 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 and professional search fee revenue. As of July 31, 2018, 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 $486.7 million. Of the $486.7 million of remaining performance obligations, we expect to recognize approximately $225.6 million as fee revenue in fiscal 2019, $137.3 million in fiscal 2020, $72.4 million in fiscal 2021 and the remaining $51.4 million in fiscal 2022 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 become a performance obligation until the company has an enforceable right to payment.

Disaggregation of revenue

The Company disaggregates revenue by line of business and further by region for Executive Search. This information is presented in Note 9—Business Segments.

The following table provides further disaggregation of fee revenue by industry:

	Three Months Ended July 31,
	2018					2017
	Dollars		%			Dollars		%
	(dollars in thousands)
Industrial	$	135,764		29.2	%	$	121,447		30.3	%
Financial Services		80,193	17.2				67,260	16.8
Life Sciences/Healthcare		79,169		17.0			66,580	16.6
Consumer Goods		71,794	15.4				61,831	15.4
Technology		61,849	13.3				51,772	12.9
Education		32,936	7.1				28,677	7.1
General		3,863	0.8				3,687	0.9
Fee Revenue	$	465,568		100.0	%	$	401,254		100.0	%