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Revenue and Related Contract Costs and Contract Liabilities

6 Months Ended

Jun. 30, 2020

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 we often sign multi-year contracts 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. GES’ revenue is earned over time over the duration of the event, but as a practical expedient we recognize revenue when we have a right to invoice at the close of the exhibition, conference, or corporate event, which typically lasts one to three days or when a customer cancels a contract. We recognize revenue for consumer events over the duration of the event. We recognize revenue for products 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, or when a customer cancels a contract. If a customer cancels a contract, then GES is generally contractually able to invoice the customer for contract costs that have been incurred by GES in preparing for 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. We recognize revenue when the service has been provided or the product has been delivered. When we extend credit, 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. We record these deposits as a contract liability, which 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 we recognize as a reduction of revenue. We include these amounts in the Condensed 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 December 31, 2019	$	50,796
Cash additions		95,966
Revenue recognized		(117,844	)
Foreign exchange translation adjustment		(1,194	)
Balance at June 30, 2020	$	27,724

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. We expense costs associated with preliminary contract activities (i.e. proposal activities) 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. We include the deferred incremental costs of obtaining and fulfilling contracts in the Condensed 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 December 31, 2019	$	28,496
Additions		13,988
Expenses		(21,299	)
Cancelled		(8,022	)
Foreign exchange translation adjustment		(604	)
Balance at June 30, 2020	$	12,559

As of June 30, 2020, capitalized contract costs consisted of $1.4 million to obtain contracts and $11.2 million to fulfill contracts. We did not recognize an impairment loss with respect to capitalized contract costs during the three and six months ended June 30, 2020 or 2019.

Disaggregation of Revenue

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

GES

	Three Months Ended June 30, 2020
(in thousands)	GES North America			GES EMEA			Intersegment Eliminations			Total
Services:
Core services	$	16,122		$	6,046		$	—		$	22,168
Audio-visual		298			132			—			430
Event technology		1,109			274			—			1,383
Intersegment eliminations		—			—			(985	)		(985	)
Total services		17,529			6,452			(985	)		22,996
Products:
Core products		1,247			1,356			—			2,603
Total revenue	$	18,776		$	7,808		$	(985	)	$	25,599

Timing of revenue recognition:
Services transferred over time	$	17,529		$	6,452		$	(985	)	$	22,996
Products transferred over time⁽¹⁾		226			(58	)		—			168
Products transferred at a point in time		1,021			1,414			—			2,435
Total revenue	$	18,776		$	7,808		$	(985	)	$	25,599

Markets:
Exhibitions	$	11,404		$	4,775		$	—		$	16,179
Conferences		7,798			2,835			—			10,633
Corporate events		(310	)		254			—			(56	)
Consumer events		(116	)		(56	)		—			(172	)
Intersegment eliminations		—			—			(985	)		(985	)
Total revenue	$	18,776		$	7,808		$	(985	)	$	25,599

⁽¹⁾	GES’ graphics product revenue is earned over time over the duration of the event as it is considered a part of the single performance obligation satisfied over time.

	Six Months Ended June 30, 2020
(in thousands)	GES North America		GES EMEA		Intersegment Eliminations			Total
Services:
Core services	$	226,305	$	32,549	$	—		$	258,854
Audio-visual		17,728		4,166		—			21,894
Event technology		6,663		3,135		—			9,798
Intersegment eliminations		—		—		(2,974	)		(2,974	)
Total services		250,696		39,850		(2,974	)		287,572
Products:
Core products		19,838		10,674		—			30,512
Total revenue	$	270,534	$	50,524	$	(2,974	)	$	318,084

Timing of revenue recognition:
Services transferred over time	$	250,696	$	39,850	$	(2,974	)	$	287,572
Products transferred over time⁽¹⁾		10,803		2,392		—			13,195
Products transferred at a point in time		9,035		8,282		—			17,317
Total revenue	$	270,534	$	50,524	$	(2,974	)	$	318,084

Markets:
Exhibitions	$	195,762	$	37,322	$	—		$	233,084
Conferences		43,688		7,642		—			51,330
Corporate events		26,654		5,408		—			32,062
Consumer events		4,430		152		—			4,582
Intersegment eliminations		—		—		(2,974	)		(2,974	)
Total revenue	$	270,534	$	50,524	$	(2,974	)	$	318,084

⁽¹⁾	GES’ graphics product revenue is earned over time over the duration of the event as it is considered a part of the single performance obligation satisfied over time.

	Three Months Ended June 30, 2019
(in thousands)	GES North America		GES EMEA		Intersegment Eliminations			Total
Services:
Core services	$	228,112	$	41,821	$	—		$	269,933
Audio-visual		24,175		6,881		—			31,056
Event technology		9,845		2,134		—			11,979
Intersegment eliminations		—		—		(6,317	)		(6,317	)
Total services		262,132		50,836		(6,317	)		306,651
Products:
Core products		21,550		18,669		—			40,219
Total revenue	$	283,682	$	69,505	$	(6,317	)	$	346,870

Timing of revenue recognition:
Services transferred over time	$	262,132	$	50,836	$	(6,317	)	$	306,651
Products transferred over time⁽¹⁾		11,774		4,811		—			16,585
Products transferred at a point in time		9,776		13,858		—			23,634
Total revenue	$	283,682	$	69,505	$	(6,317	)	$	346,870

Markets:
Exhibitions	$	138,887	$	49,293	$	—		$	188,180
Conferences		105,455		10,870		—			116,325
Corporate events		29,868		8,772		—			38,640
Consumer events		9,472		570		—			10,042
Intersegment eliminations		—		—		(6,317	)		(6,317	)
Total revenue	$	283,682	$	69,505	$	(6,317	)	$	346,870

⁽¹⁾	GES’ graphics product revenue is earned over time over the duration of an event as it is considered a part of the single performance obligation satisfied over time.

	Six Months Ended June 30, 2019
(in thousands)	GES North America		GES EMEA		Intersegment Eliminations			Total
Services:
Core services	$	407,985	$	72,884	$	—		$	480,869
Audio-visual		42,581		10,769		—			53,350
Event technology		18,608		5,087		—			23,695
Intersegment eliminations		—		—		(9,007	)		(9,007	)
Total services		469,174		88,740		(9,007	)		548,907
Products:
Core products		37,749		35,141		—			72,890
Total revenue	$	506,923	$	123,881	$	(9,007	)	$	621,797

Timing of revenue recognition:
Services transferred over time	$	469,174	$	88,740	$	(9,007	)	$	548,907
Products transferred over time⁽¹⁾		23,043		8,290		—			31,333
Products transferred at a point in time		14,706		26,851		—			41,557
Total revenue	$	506,923	$	123,881	$	(9,007	)	$	621,797

Markets:
Exhibitions	$	275,316	$	94,948	$	—		$	370,264
Conferences		153,317		13,852		—			167,169
Corporate events		62,655		14,317		—			76,972
Consumer events		15,635		764		—			16,399
Intersegment eliminations		—		—		(9,007	)		(9,007	)
Total revenue	$	506,923	$	123,881	$	(9,007	)	$	621,797

⁽¹⁾	GES’ graphics product revenue is earned over time over the duration of an event as it is considered a part of the single performance obligation satisfied over time.

Pursuit

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands)	2020			2019			2020			2019
Services:
Admissions	$	1,534		$	23,156		$	5,636		$	26,681
Accommodations		1,456			12,926			5,973			15,344
Transportation		12			3,954			2,068			5,949
Travel planning		213			1,471			629			2,103
Intersegment eliminations		(6	)		(499	)		(117	)		(684	)
Total services revenue		3,209			41,008			14,189			49,393
Products:
Food and beverage		615			8,206			2,264			9,570
Retail operations		1,440			6,195			2,334			7,113
Total products revenue		2,055			14,401			4,598			16,683
Total revenue	$	5,264		$	55,409		$	18,787		$	66,076

Timing of revenue recognition:
Services transferred over time	$	3,209		$	41,008		$	14,189		$	49,393
Products transferred at a point in time		2,055			14,401			4,598			16,683
Total revenue	$	5,264		$	55,409		$	18,787		$	66,076

Markets:
Banff Jasper Collection	$	3,040		$	33,226		$	12,839		$	41,096
Alaska Collection		580			12,198			731			12,378
Glacier Park Collection		1,161			7,375			1,884			8,198
FlyOver		483			2,610			3,333			4,404
Total revenue	$	5,264		$	55,409		$	18,787		$	66,076

- 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/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
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-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details