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Revenue and Related Contract Costs and Contract Liabilities
 9 Months Ended
Sep. 30, 2024
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, 2023

 

$

53,322

 

Cash additions

 

 

266,582

 

Revenue recognized

 

 

(252,230

)

Foreign exchange translation adjustment

 

 

693

 

Balance at September 30, 2024

 

$

68,367

 

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” in the Condensed Consolidated Statement of Operations 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, 2023

 

$

21,974

 

Additions

 

 

76,206

 

Expenses

 

 

(65,989

)

Foreign exchange translation adjustment

 

 

629

 

Balance at September 30, 2024

 

$

32,820

 

As of September 30, 2024, capitalized contract costs consisted of $2.6 million to obtain contracts and $30.2 million to fulfill contracts. We did not recognize an impairment loss with respect to capitalized contract costs during the three and nine months ended September 30, 2024 or 2023.

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

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

Ticket revenue

 

$

75,330

 

 

$

71,741

 

 

$

136,842

 

 

$

122,545

 

Rooms revenue

 

 

42,020

 

 

 

48,674

 

 

 

74,202

 

 

 

78,370

 

Transportation

 

 

4,990

 

 

 

6,010

 

 

 

10,183

 

 

 

11,644

 

Other

 

 

10,648

 

 

 

8,994

 

 

 

16,795

 

 

 

13,694

 

Total services revenue

 

 

132,988

 

 

 

135,419

 

 

 

238,022

 

 

 

226,253

 

Products:

 

 

 

 

 

 

 

 

 

 

 

 

Food and beverage

 

 

26,135

 

 

 

28,394

 

 

 

47,703

 

 

 

47,897

 

Retail operations

 

 

23,134

 

 

 

23,127

 

 

 

34,964

 

 

 

33,927

 

Total products revenue

 

 

49,269

 

 

 

51,521

 

 

 

82,667

 

 

 

81,824

 

Total revenue

 

$

182,257

 

 

$

186,940

 

 

$

320,689

 

 

$

308,077

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timing of revenue recognition:

 

 

 

 

 

 

 

 

 

 

 

 

Services transferred over time

 

$

132,988

 

 

$

135,419

 

 

$

238,022

 

 

$

226,253

 

Products transferred at a point in time

 

 

49,269

 

 

 

51,521

 

 

 

82,667

 

 

 

81,824

 

Total revenue

 

$

182,257

 

 

$

186,940

 

 

$

320,689

 

 

$

308,077

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Markets:

 

 

 

 

 

 

 

 

 

 

 

 

Banff Jasper Collection

 

$

80,700

 

 

$

96,503

 

 

$

152,502

 

 

$

161,022

 

Alaska Collection

 

 

29,238

 

 

 

26,846

 

 

 

43,897

 

 

 

40,000

 

Glacier Park Collection

 

 

46,408

 

 

 

42,806

 

 

 

63,152

 

 

 

57,991

 

FlyOver

 

 

12,426

 

 

 

9,675

 

 

 

27,148

 

 

 

22,550

 

Sky Lagoon

 

 

13,485

 

 

 

11,110

 

 

 

33,990

 

 

 

26,514

 

Total revenue

 

$

182,257

 

 

$

186,940

 

 

$

320,689

 

 

$

308,077

 

 

GES

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Service lines:

 

 

 

 

 

 

 

 

 

 

 

 

Spiro

 

$

82,205

 

 

$

58,887

 

 

$

242,585

 

 

$

199,617

 

GES Exhibitions

 

 

194,806

 

 

 

122,115

 

 

 

551,623

 

 

 

446,146

 

Intersegment eliminations

 

 

(3,564

)

 

 

(2,043

)

 

 

(7,158

)

 

 

(6,839

)

Total revenue

 

$

273,447

 

 

$

178,959

 

 

$

787,050

 

 

$

638,924

 

 

 

 

 

 

 

 

 

 

 

 

 

Timing of revenue recognition:

 

 

 

 

 

 

 

 

 

 

 

 

Services transferred over time

 

$

242,248

 

 

$

149,700

 

 

$

674,104

 

 

$

539,345

 

Products transferred over time (1)

 

 

15,137

 

 

 

13,518

 

 

 

48,108

 

 

 

42,497

 

Products transferred at a point in time

 

 

16,062

 

 

 

15,741

 

 

 

64,838

 

 

 

57,082

 

Total revenue

 

$

273,447

 

 

$

178,959

 

 

$

787,050

 

 

$

638,924

 

 

 

 

 

 

 

 

 

 

 

 

 

Geographical markets:

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

237,484

 

 

$

148,569

 

 

$

647,465

 

 

$

506,816

 

EMEA

 

 

52,406

 

 

 

42,325

 

 

 

182,542

 

 

 

154,506

 

Intersegment eliminations

 

 

(16,443

)

 

 

(11,935

)

 

 

(42,957

)

 

 

(22,398

)

Total revenue

 

$

273,447

 

 

$

178,959

 

 

$

787,050

 

 

$

638,924

 

 

(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.