Revenue and Related Contract Costs and Contract Liabilities

12 Months Ended

Dec. 31, 2019

Revenue From Contract With Customer [Abstract]

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 and/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 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 either upon delivery to the customer’s location, upon delivery to an event that we are serving, 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.

Contract Liabilities

GES and Pursuit typically receive customer deposits prior to transferring the related product or service to the customer. These deposits are recorded as a contract liability and are 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

recognized as a reduction of revenue. These amounts are included in the Consolidated Balance Sheets under the captions “Contract liabilities” and “Other deferred items and liabilities.”

Changes to contract liabilities are as follows:

(in thousands)
Balance at January 1, 2018	$	31,981
Cash additions		179,238
Revenue recognized		(174,620	)
Foreign exchange translation adjustment		(999	)
Balance at December 31, 2018		35,600
Cash additions		210,871
Revenue recognized		(196,158	)
Foreign exchange translation adjustment		483
Balance at December 31, 2019	$	50,796

Contract Costs

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 up-front 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, as applicable. The deferred incremental costs of obtaining and fulfilling contracts are included in the Consolidated Balance Sheets under the captions “Current contract costs” and “Other investments and assets.”

Changes to contract costs are as follows:

(in thousands)
Balance at January 1, 2018	$	16,878
Additions		65,147
Expenses		(59,601	)
Cancelled		(136	)
Foreign exchange translation adjustment		(810	)
Balance at December 31, 2018		21,478
Additions		74,274
Expenses		(67,425	)
Cancelled		(68	)
Foreign exchange translation adjustment		237
Balance at December 31, 2019	$	28,496

As of December 31, 2019, capitalized contract costs consisted of $1.9 million to obtain contracts and $26.6 million to fulfill contracts. We did not recognize an impairment loss with respect to capitalized contract costs during the years ended December 31, 2019 or 2018.

Disaggregation of Revenue

The following tables disaggregate GES and Pursuit revenue by major product line, timing of revenue recognition, and markets served:

GES

	Year Ended December 31, 2019
(in thousands)	GES North America⁽¹⁾		GES EMEA⁽¹⁾		Intersegment Eliminations			Total
Services:
Core services	$	753,648	$	130,932	$	—		$	884,580
Audio-visual		78,178		24,197		—			102,375
Event technology		29,600		9,749		—			39,349
Intersegment eliminations		—		—		(20,741	)		(20,741	)
Total services		861,426		164,878		(20,741	)		1,005,563
Products:
Core products		74,606		68,713		—			143,319
Total revenue	$	936,032	$	233,591	$	(20,741	)	$	1,148,882

Timing of revenue recognition:
Services transferred over time	$	861,426	$	164,878	$	(20,741	)	$	1,005,563
Products transferred over time⁽²⁾		45,597		16,071		—			61,668
Products transferred at a point in time		29,009		52,642		—			81,651
Total revenue	$	936,032	$	233,591	$	(20,741	)	$	1,148,882

Markets:
Exhibitions	$	478,397	$	172,400	$	—		$	650,797
Conferences		289,394		27,917		—			317,311
Corporate events		141,030		32,212		—			173,242
Consumer events		27,211		1,062		—			28,273
Intersegment eliminations		—		—		(20,741	)		(20,741	)
Total revenue	$	936,032	$	233,591	$	(20,741	)	$	1,148,882

⁽¹⁾

^{During the first quarter of 2019, we realigned GES’ organizational structure. As a result, we changed GES’ reportable segments to reflect how our chief operating decision maker regularly reviews and makes decisions regarding the allocation of resources. Accordingly, GES’ new reportable segments are GES North America and GES EMEA.}

⁽²⁾	^{GES’ graphics product revenue is recognized over time as it is considered a part of the single performance obligation satisfied over time.}

	Year Ended December 31, 2018
(in thousands)	GES North America⁽¹⁾		GES EMEA⁽¹⁾		Intersegment Eliminations			Total
Services:
Core services	$	733,407	$	120,371	$	—		$	853,778
Audio-visual		73,331		22,011		—			95,342
Event technology		30,208		10,658		—			40,866
Intersegment eliminations		—		—		(17,140	)		(17,140	)
Total services		836,946		153,040		(17,140	)		972,846
Products:
Core products		72,844		65,207		—			138,051
Total revenue	$	909,790	$	218,247	$	(17,140	)	$	1,110,897

Timing of revenue recognition:
Services transferred over time	$	836,946	$	153,040	$	(17,140	)	$	972,846
Products transferred over time⁽²⁾		44,109		16,084		—			60,193
Products transferred at a point in time		28,735		49,123		—			77,858
Total revenue	$	909,790	$	218,247	$	(17,140	)	$	1,110,897

Markets:
Exhibitions	$	500,411	$	160,876	$	—		$	661,287
Conferences		251,978		27,129		—			279,107
Corporate events		126,781		28,130		—			154,911
Consumer events		30,620		2,112		—			32,732
Intersegment eliminations		—		—		(17,140	)		(17,140	)
Total revenue	$	909,790	$	218,247	$	(17,140	)	$	1,110,897

⁽¹⁾

⁽²⁾	^{GES’ graphics product revenue is recognized over time as it is considered a part of the single performance obligation satisfied over time.}

Pursuit

	Year Ended December 31,
(in thousands)	2019			2018
Services:
Admissions	$	85,371		$	83,000
Accommodations		60,672			37,470
Transportation		14,594			13,956
Travel planning		5,979			4,529
Intersegment eliminations		(1,686	)		(1,551	)
Total services revenue		164,930			137,404
Products:
Food and beverage		31,838			25,962
Retail operations		26,045			21,921
Total products revenue		57,883			47,883
Total revenue	$	222,813		$	185,287

Timing of revenue recognition:
Services transferred over time	$	164,930		$	137,404
Products transferred at a point in time		57,883			47,883
Total revenue	$	222,813		$	185,287

Markets:
Banff Jasper Collection	$	133,229		$	106,106
Alaska Collection		39,406			36,451
Glacier Park Collection		37,121			31,465
FlyOver		13,057			11,265
Total revenue	$	222,813		$	185,287