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Revenue and Related Contract Costs and Contract Liabilities
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue and Related Contract Costs and Contract Liabilities

Note 2. Revenue and Related Contract Costs and Contract Liabilities

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, 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.

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.

Contract Liabilities

Pursuit and GES 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 customer deposits in “Contract liabilities” and “Other deferred items and liabilities” in the Condensed Consolidated Balance Sheets.

Changes to contract liabilities are as follows:

 

(in thousands)

 

 

 

Balance at December 31, 2022

 

$

44,757

 

Cash additions

 

 

94,495

 

Revenue recognized

 

 

(65,082

)

Foreign exchange translation adjustment

 

 

(6,376

)

Balance at June 30, 2023

 

$

67,794

 

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 live 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 “Costs of services” or “Costs of products” as applicable. We include the deferred incremental costs of obtaining and fulfilling contracts in “Current contract costs” and “Other investments and assets” in the Condensed Consolidated Balance Sheets.

Changes to contract costs are as follows:

 

(in thousands)

 

 

 

Balance at December 31, 2022

 

$

16,568

 

Additions

 

 

30,443

 

Expenses

 

 

(26,216

)

Foreign exchange translation adjustment

 

 

312

 

Balance at June 30, 2023

 

$

21,107

 

As of June 30, 2023, capitalized contract costs consisted of $0.1 million to obtain contracts and $21.0 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, 2023 or 2022.

Disaggregation of Revenue

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

Pursuit

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

(in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

Ticket revenue

 

$

36,543

 

 

$

29,337

 

 

$

50,804

 

 

$

38,539

 

Rooms revenue

 

 

22,106

 

 

 

20,559

 

 

 

29,696

 

 

 

27,462

 

Transportation

 

 

3,689

 

 

 

3,755

 

 

 

5,634

 

 

 

4,934

 

Other

 

 

3,333

 

 

 

3,017

 

 

 

4,700

 

 

 

4,387

 

Total services revenue

 

 

65,671

 

 

 

56,668

 

 

 

90,834

 

 

 

75,322

 

Products:

 

 

 

 

 

 

 

 

 

 

 

 

Food and beverage

 

 

13,628

 

 

 

12,171

 

 

 

19,503

 

 

 

16,264

 

Retail operations

 

 

9,175

 

 

 

8,760

 

 

 

10,800

 

 

 

9,797

 

Total products revenue

 

 

22,803

 

 

 

20,931

 

 

 

30,303

 

 

 

26,061

 

Total revenue

 

$

88,474

 

 

$

77,599

 

 

$

121,137

 

 

$

101,383

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timing of revenue recognition:

 

 

 

 

 

 

 

 

 

 

 

 

Services transferred over time

 

$

65,671

 

 

$

56,668

 

 

$

90,834

 

 

$

75,322

 

Products transferred at a point in time

 

 

22,803

 

 

 

20,931

 

 

 

30,303

 

 

 

26,061

 

Total revenue

 

$

88,474

 

 

$

77,599

 

 

$

121,137

 

 

$

101,383

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Markets:

 

 

 

 

 

 

 

 

 

 

 

 

Banff Jasper Collection

 

$

46,905

 

 

$

38,962

 

 

$

64,519

 

 

$

53,292

 

Alaska Collection

 

 

12,701

 

 

 

13,319

 

 

 

13,154

 

 

 

13,816

 

Glacier Park Collection

 

 

13,730

 

 

 

13,581

 

 

 

15,185

 

 

 

14,590

 

FlyOver

 

 

7,020

 

 

 

5,870

 

 

 

12,875

 

 

 

10,009

 

Sky Lagoon

 

 

8,118

 

 

 

5,867

 

 

 

15,404

 

 

 

9,676

 

Total revenue

 

$

88,474

 

 

$

77,599

 

 

$

121,137

 

 

$

101,383

 

GES

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

(in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Service lines:

 

 

 

 

 

 

 

 

 

 

 

 

Spiro

 

$

80,368

 

 

$

89,425

 

 

$

140,730

 

 

$

132,241

 

GES Exhibitions

 

 

154,534

 

 

 

154,600

 

 

 

324,031

 

 

 

266,431

 

Intersegment eliminations

 

 

(3,065

)

 

 

(2,421

)

 

 

(4,796

)

 

 

(3,492

)

Total revenue

 

$

231,837

 

 

$

241,604

 

 

$

459,965

 

 

$

395,180

 

 

 

 

 

 

 

 

 

 

 

 

 

Timing of revenue recognition:

 

 

 

 

 

 

 

 

 

 

 

 

Services transferred over time

 

$

196,668

 

 

$

197,464

 

 

$

389,645

 

 

$

329,947

 

Products transferred over time(1)

 

 

16,038

 

 

 

16,025

 

 

 

28,979

 

 

 

23,963

 

Products transferred at a point in time

 

 

19,131

 

 

 

28,115

 

 

 

41,341

 

 

 

41,270

 

Total revenue

 

$

231,837

 

 

$

241,604

 

 

$

459,965

 

 

$

395,180

 

 

 

 

 

 

 

 

 

 

 

 

 

Geographical markets:

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

177,408

 

 

$

189,670

 

 

$

358,247

 

 

$

318,697

 

EMEA

 

 

62,644

 

 

 

58,534

 

 

 

112,181

 

 

 

84,347

 

Intersegment eliminations

 

 

(8,215

)

 

 

(6,600

)

 

 

(10,463

)

 

 

(7,864

)

Total revenue

 

$

231,837

 

 

$

241,604

 

 

$

459,965

 

 

$

395,180

 

 

 

(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.