XML 21 R10.htm IDEA: XBRL DOCUMENT v3.21.1
Revenue and Related Contract Costs and Contract Liabilities
 3 Months Ended
Mar. 31, 2021
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 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 a live event. Revenue for goods and services provided for which we do not have control of the goods or services before that good or service is transferred to a customer is recorded on a net basis to reflect only the fees received for arranging these services. We recognize revenue for services generally at the close of the live 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. In circumstances where a customer cancels a contract, we generally have the right to bill the customer for costs incurred to date. 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, 2020

 

$

18,618

 

Cash additions

 

 

14,338

 

Revenue recognized

 

 

(5,647

)

Foreign exchange translation adjustment

 

 

(453

)

Balance at March 31, 2021

 

$

26,856

 

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, 2020

 

$

10,835

 

Additions

 

 

4,394

 

Expenses

 

 

(3,237

)

Cancelled

 

 

(432

)

Foreign exchange translation adjustment

 

 

34

 

Balance at March 31, 2021

 

$

11,594

 

As of March 31, 2021, capitalized contract costs consisted of $0.8 million to obtain contracts and $10.8 million to fulfill contracts. We did not recognize an impairment loss with respect to capitalized contract costs during the three months ended March 31, 2021 or 2020.

Disaggregation of Revenue

During the first quarter of 2021, we changed GES’ presentation of certain items in the following disaggregation of revenue table to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. All prior periods have been reclassified to conform to this new reporting structure.

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

GES

 

 

Three Months Ended

 

 

 

March 31,

 

(in thousands)

 

2021

 

 

2020

 

Service lines:

 

 

 

 

 

 

 

 

Exhibitions and Conferences

 

$

5,835

 

 

$

201,159

 

Brand experiences

 

 

11,704

 

 

 

68,995

 

Venue services

 

 

1,606

 

 

 

10,981

 

Total revenue

 

$

19,145

 

 

$

281,135

 

 

 

 

 

 

 

 

 

 

Timing of revenue recognition:

 

 

 

 

 

 

 

 

Services transferred over time

 

$

17,015

 

 

$

253,226

 

Products transferred over time(1)

 

 

417

 

 

 

13,027

 

Products transferred at a point in time

 

 

1,713

 

 

 

14,882

 

Total revenue

 

$

19,145

 

 

$

281,135

 

 

 

 

 

 

 

 

 

 

Geographical markets:

 

 

 

 

 

 

 

 

North America

 

$

15,858

 

 

$

242,440

 

EMEA

 

 

3,903

 

 

 

40,684

 

Intersegment eliminations

 

 

(616

)

 

 

(1,989

)

Total revenue

 

$

19,145

 

 

$

281,135

 

 

(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

 

 

 

March 31,

 

(in thousands)

 

2021

 

 

2020

 

Services:

 

 

 

 

 

 

 

 

Admissions

 

$

1,484

 

 

$

4,102

 

Accommodations

 

 

5,150

 

 

 

4,517

 

Transportation

 

 

537

 

 

 

2,056

 

Travel planning

 

 

714

 

 

 

416

 

Intersegment eliminations

 

 

—

 

 

 

(111

)

Total services revenue

 

 

7,885

 

 

 

10,980

 

Products:

 

 

 

 

 

 

 

 

Food and beverage

 

 

1,224

 

 

 

1,649

 

Retail operations

 

 

681

 

 

 

894

 

Total products revenue

 

 

1,905

 

 

 

2,543

 

Total revenue

 

$

9,790

 

 

$

13,523

 

 

 

 

 

 

 

 

 

 

Timing of revenue recognition:

 

 

 

 

 

 

 

 

Services transferred over time

 

$

7,885

 

 

$

10,980

 

Products transferred at a point in time

 

 

1,905

 

 

 

2,543

 

Total revenue

 

$

9,790

 

 

$

13,523

 

 

 

 

 

 

 

 

 

 

Markets:

 

 

 

 

 

 

 

 

Banff Jasper Collection

 

$

8,460

 

 

$

9,799

 

Alaska Collection

 

 

289

 

 

 

151

 

Glacier Park Collection

 

 

578

 

 

 

723

 

FlyOver

 

 

463

 

 

 

2,850

 

Total revenue

 

$

9,790

 

 

$

13,523