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Revenue and Related Contract Costs and Contract Liabilities | 3 Months Ended
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Mar. 31, 2018
Revenue From Contract With Customer [Abstract] |
Revenue and Related Contract Costs and Contract Liabilities | Note 2. Revenue and Related Contract Costs and Contract Liabilities GES’ performance obligations consist of services or product(s) outlined in a contract. While multi-year contracts are often signed for recurring events, the obligations for each occurrence are well defined and conclude upon the occurrence of each event. The obligations are typically the provision of services or sale of a product in connection with an exhibition, conference or other event. Revenue for services is recognized when we have a right to invoice, generally at the close of the exhibition, conference, or corporate event, which typically lasts one to three days. Revenue for consumer events is recognized over the duration of the event. Revenue for products is recognized upon delivery or when we have the right to invoice, generally at the close of the exhibition, conference, or corporate event. Payment terms are generally within 30-60 days and contain no significant financing components. Pursuit’s performance obligations are short-term in nature. They include the provision of a hotel room, an attraction admission, a chartered or ticketed bus or van ride, the fulfillment of travel planning itineraries, and/or the sale of food, beverage or retail products. Revenue is recognized when the service has been provided or the product has been delivered. When credit is extended, payment terms are generally within 30 days and contain no significant financing components. Customer deposits are typically received by GES and Pursuit prior to transferring the related product or service to the customer. These deposits are recorded as a contract liability and recognized as revenue upon satisfaction of the related contract performance obligation(s). GES also provides customer rebates and volume discounts to certain event organizers that are recorded as contract liabilities and are recognized as a reduction of revenue. These amounts are included in the Condensed Consolidated Balance Sheets under the caption “Contract liabilities”. GES capitalizes certain incremental costs incurred in obtaining and fulfilling contracts. Capitalized costs principally relate to direct costs of materials and services incurred in fulfilling services of future exhibitions, conferences, and events, and also include incentives and commissions incurred upon contract signing. Costs associated with preliminary contract activities (i.e. proposal activities) are expensed as incurred. Capitalized contract costs are expensed upon the transfer of the related goods or services and are included in cost of services or cost of products sold, as applicable. The deferred incremental costs of obtaining and fulfilling contracts are included in the Condensed Consolidated Balance Sheets under the captions “Current contract costs” and “Other investments and assets.” These amounts were previously reported in inventories under “Work in process.” We elected to apply the following practical expedients related to performance obligations: Not to disclose the amount of consideration allocated to the remaining performance obligations or an explanation of when we expect to recognize that amount as revenue as of December 31, 2017 and not to disclose the value of unsatisfied performance obligations for contracts with an original duration of one year or less because the vast majority of our contract liabilities relate to future exhibitions and events that will occur within the next 12 months. Contract Liabilities Changes to contract liabilities are as follows:
(in thousands) |  |  |  |
Balance at January 1, 2018 |  | $ | 31,981 |
Cash additions |  |  | 38,241 |
Revenue recognized |  |  | (18,526 | )
Foreign exchange translation adjustment |  |  | 195 |
Balance at March 31, 2018 |  | $ | 51,891 |
Contract Costs Capitalized contract costs were $27.2 million as of March 31, 2018 and $16.9 million as of December 31, 2017. The contract costs as of March 31, 2018 consisted of $3.7 million to obtain contracts and $23.5 million to fulfill contracts. During the three months ended March 31, 2018, $8.6 million of the December 31, 2017 balance was recognized in cost of services or products and $18.6 million of costs remained deferred. We did not recognize an impairment loss with respect to capitalized contract costs. Disaggregation of Revenue The following tables disaggregate revenue of GES and Pursuit by major product line, timing of revenue recognition, and markets served: GES
|  | Three Months Ended March 31, 2018 |
(in thousands) |  | GES U.S. |  |  | GES International |  |  | Intersegment Eliminations |  |  | Total |
Services: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Core services |  | $ | 163,367 |  |  | $ | 46,213 |  |  | $ | — |  |  | $ | 209,580 |
Audio-visual |  |  | 17,084 |  |  |  | 3,168 |  |  |  | — |  |  |  | 20,252 |
Event technology |  |  | 8,035 |  |  |  | 3,274 |  |  |  | — |  |  |  | 11,309 |
Intersegment eliminations |  |  | — |  |  |  | — |  |  |  | (3,348 | ) |  |  | (3,348 | )
Total services |  |  | 188,486 |  |  |  | 52,655 |  |  |  | (3,348 | ) |  |  | 237,793 |
Products: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Core products |  |  | 15,382 |  |  |  | 14,531 |  |  |  | — |  |  |  | 29,913 |
Total revenue |  | $ | 203,868 |  |  | $ | 67,186 |  |  | $ | (3,348 | ) |  | $ | 267,706 |
Timing of revenue recognition: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Services transferred over time |  | $ | 188,486 |  |  | $ | 52,654 |  |  | $ | — |  |  | $ | 241,140 |
Products transferred over time |  |  | 10,592 |  |  |  | 4,107 |  |  |  | — |  |  |  | 14,699 |
Products transferred at a point in time |  |  | 4,790 |  |  |  | 10,425 |  |  |  | — |  |  |  | 15,215 |
Intersegment eliminations |  |  | — |  |  |  | — |  |  |  | (3,348 | ) |  |  | (3,348 | )
Total revenue |  | $ | 203,868 |  |  | $ | 67,186 |  |  | $ | (3,348 | ) |  | $ | 267,706 |
Markets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Exhibitions |  | $ | 130,494 |  |  | $ | 55,330 |  |  | $ | — |  |  | $ | 185,824 |
Conferences |  |  | 37,816 |  |  |  | 6,661 |  |  |  | — |  |  |  | 44,477 |
Corporate events |  |  | 29,444 |  |  |  | 4,860 |  |  |  | — |  |  |  | 34,304 |
Consumer events |  |  | 6,114 |  |  |  | 335 |  |  |  | — |  |  |  | 6,449 |
Intersegment eliminations |  |  | — |  |  |  | — |  |  |  | (3,348 | ) |  |  | (3,348 | )
Total revenue |  | $ | 203,868 |  |  | $ | 67,186 |  |  | $ | (3,348 | ) |  | $ | 267,706 |
Pursuit
|  | Three Months Ended |
(in thousands) |  | March 31, 2018 |
Services: |  |  |  |
Accommodations |  | $ | 1,705 |
Admissions |  |  | 3,579 |
Transportation |  |  | 2,369 |
Travel planning |  |  | 308 |
Intersegment eliminations |  |  | (206 | )
Total services revenue |  |  | 7,755 |
Products: |  |  |  |
Food and beverage |  |  | 1,219 |
Retail operations |  |  | 748 |
Total products revenue |  |  | 1,967 |
Total revenue |  | $ | 9,722 |
Timing of revenue recognition: |  |  |  |
Services transferred over time |  | $ | 7,755 |
Products transferred at a point in time |  |  | 1,967 |
Total revenue |  | $ | 9,722 |
Markets: |  |  |  |
Banff Jasper Collection |  | $ | 7,089 |
Alaska Collection |  |  | 213 |
Glacier Park Collection |  |  | 626 |
FlyOver |  |  | 1,794 |
Total revenue |  | $ | 9,722 |
Balance Sheet Reclassifications In connection with the adoption of Topic 606, we made the following reclassifications to separately present contract costs and contract liabilities on the Condensed Consolidated Balance Sheet as of December 31, 2017:
|  | December 31, 2017 |
(in thousands) |  | As Previously Reported |  |  | Reclassifications |  |  | As Adjusted |
Cash and cash equivalents |  | $ | 53,723 |  |  |  | — |  |  | $ | 53,723 |
Accounts receivable, net |  |  | 104,811 |  |  |  | — |  |  |  | 104,811 |
Inventories (1) |  |  | 30,372 |  |  |  | (12,822 | ) |  |  | 17,550 |
Current contract costs (1) |  |  | — |  |  |  | 13,436 |  |  |  | 13,436 |
Other current assets (1) |  |  | 21,030 |  |  |  | (1,289 | ) |  |  | 19,741 |
Property and equipment, net |  |  | 305,571 |  |  |  | — |  |  |  | 305,571 |
Other investments and assets (1) |  |  | 47,512 |  |  |  | 675 |  |  |  | 48,187 |
Deferred income taxes |  |  | 23,548 |  |  |  | — |  |  |  | 23,548 |
Goodwill |  |  | 270,551 |  |  |  | — |  |  |  | 270,551 |
Other intangible assets, net |  |  | 62,781 |  |  |  | — |  |  |  | 62,781 |
Total assets |  | $ | 919,899 |  |  |  | — |  |  | $ | 919,899 |
Accounts payable |  | $ | 77,380 |  |  |  | — |  |  | $ | 77,380 |
Customer deposits (2) |  |  | 33,415 |  |  |  | (33,415 | ) |  |  | — |
Contract liabilities (2) |  |  | — |  |  |  | 31,981 |  |  |  | 31,981 |
Accrued compensation |  |  | 30,614 |  |  |  | — |  |  |  | 30,614 |
Other current liabilities (2) |  |  | 38,720 |  |  |  | 1,434 |  |  |  | 40,154 |
Debt and capital lease obligations, current and long-term |  |  | 209,192 |  |  |  | — |  |  |  | 209,192 |
Pension and postretirement benefits |  |  | 28,135 |  |  |  | — |  |  |  | 28,135 |
Other deferred items and liabilities |  |  | 52,858 |  |  |  | — |  |  |  | 52,858 |
Total liabilities |  |  | 470,314 |  |  |  | — |  |  |  | 470,314 |
Redeemable noncontrolling interest |  |  | 6,648 |  |  |  | — |  |  |  | 6,648 |
Total stockholders' equity (3) |  |  | 442,937 |  |  |  | — |  |  |  | 442,937 |
Total liabilities and stockholders' equity |  | $ | 919,899 |  |  |  | — |  |  | $ | 919,899 |
(1) | Contract costs primarily consist of deferred core services costs (including labor and vendor purchases) required to service future exhibitions, conferences and other events, and commission expenses incurred to obtain contracts. All such costs were previously included in “Inventories” and in other certain assets. As a result of the changes noted above, deferred core services costs related to exhibitions and events that are scheduled to occur longer than one year in the future are currently included in “Other investments and assets”. The impact of this change reduced total current assets at December 31, 2017 by $0.7 million. The amount of deferred core services costs included in “Other investments and assets” at March 31, 2018 was $4.6 million.
(2) | In connection with the adoption of Topic 606, we elected to more prominently present contract liabilities on the Consolidated Balance Sheets. Consequently, customer deposits of $33.4 million as of December 31, 2017, have been reclassified to “Contract liabilities” and to other certain current liabilities to conform to the current period presentation.
(3) | The cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of retained earnings was determined to be immaterial and therefore no adjustment was made.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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