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Note 2 - Revenue
 9 Months Ended
Jun. 28, 2020
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

2

REVENUE

 

The following table presents our revenue disaggregated by source:

 

  

13 Weeks Ended

  

39 Weeks Ended

 
  

June 28,

  

June 30,

  

June 28,

  

June 30,

 

(Thousands of Dollars)

 

2020

  

2019

  

2020

  

2019

 
             

Advertising and marketing services revenue

 77,754  65,754  204,426  204,651 

Subscription revenue

 88,517  46,620  176,655  137,965 

TownNews and other digital services revenue

 5,608  5,087  16,123  14,507 

Other revenue

 10,649  9,823  29,034  29,066 

Total operating revenue

 182,528  127,284  426,238  386,189 

 

Recognition principles: Revenue is recognized when a performance obligation is satisfied by the transfer of control of the contracted goods or services to our customers, in an amount that reflects the consideration we expect to receive in exchange for those goods or services.

 

Arrangements with multiple performance obligations: We have various advertising and subscription agreements which include both print and digital performance obligations. Revenue from sales agreements that contain multiple performance obligations are allocated to each obligation based on the relative standalone selling price. We determine standalone selling prices based on observable prices charged to customers.

 

Contract Assets and Liabilities: The Company’s primary source of contract liabilities is unearned revenue from subscriptions paid in advance of the service provided. The Company expects to recognize the revenue related to unsatisfied performance obligations over the next twelve months in accordance with the terms of the subscriptions and other contracts with customers. The unearned revenue balances described herein are the Company's only contract liability. Unearned revenue was $59,285,000 as of  June 28, 2020 and $21,720,000 as of September 29, 2019. Revenue recognized in the 13 and 39 weeks ended June 28, 2020 that was included in the contract liability as of September 29, 2019 was $2,653,000 and $20,512,000.

 

Contract asset balances relate to our Management Agreement revenue and was $1,107,000 as of  September 29, 2019 and consisted solely of the variable consideration earned under the Management Agreement. As a result of the transactions, we had no contract asset balances as of June 28, 2020. In conjunction with the execution of the Purchase Agreement, the previously recorded contract asset balance was collected on March 16, 2020. Accounts receivable, excluding allowance for doubtful accounts and contract assets, was $65,298,000 and $47,863,000 as of  June 28, 2020 and September 29, 2019, respectively. Allowance for doubtful accounts was $9,758,000 and $6,434,000 as of June 28, 2020 and September 29, 2019, respectively.

 

Practical expedients: Sales commissions are expensed as incurred as the associated contractual periods are one year or less. These costs are recorded within compensation. The vast majority of our contracts have original expected lengths of one year or less and revenue is earned at a rate and amount that corresponds directly with the value to the customer.