Revenue and Cost of Goods Sold

9 Months Ended

Jan. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue and Cost of Goods Sold

Revenue and Cost of Goods Sold

The Company recognizes retail sales of fuel, grocery and other merchandise, prepared food and fountain and other revenue at the time of the sale to the guest. Revenue from sales that include a redeemable box top coupon or points under our Casey’s Rewards program are deferred until redemption or expiration for the portion of the sale that represents the estimated future redemption of the box top coupon or points. Revenue related to the box top coupons and points issued is expected to be recognized less than one year from the original sale to the guest. As of January 31, 2020 and April 30, 2019, the Company recognized a contract liability of $9,379 and $6,931, respectively, related to the outstanding box top coupons and Casey's Rewards points, which is included in accrued expenses on the condensed consolidated balance sheets.

Gift card related revenue is recognized as the gift cards are used by the guest. Gift card breakage revenue is recognized based on the estimated gift card breakage rate over the pro rata usage of the card.

Renewable Identification Numbers (RINs) are treated as a reduction in cost of goods sold in the period the Company commits to a price and agrees to sell the RIN. Vendor rebates, including billbacks, are treated as a reduction in cost of goods sold and are recognized primarily based on the purchase of product, shipment of product from warehouse to store,

or sale of product to our guest. These are recognized in the period earned based on the applicable rebate agreement. Warehousing costs are recorded within operating expenses on the income statement. Sales taxes collected from guests and remitted to the government are recorded on a net basis in the condensed consolidated financial statements.