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Note 2 - Revenue
 3 Months Ended
Dec. 27, 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

 
  

December 27,

  

December 29,

 

(Thousands of Dollars)

 

2020

  

2019

 
         

Advertising and marketing services revenue

  102,629   65,727 

Subscription revenue

  90,508   41,694 
TownNews and other digital services revenue  5,622   5,218 

Other revenue

  13,058   9,704 

Total operating revenue

  211,817   122,343 

 

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 $60,176,000 as of December 27, 2020 and $60,271,000 as of September 27, 2020. Revenue recognized in the 13 weeks ended December 27, 2020 that was included in the contract liability as of September 27, 2020 was $35,955,000.

 

Accounts receivable, excluding allowance for credit losses was $79,013,000 and $66,029,000 as of December 27, 2020 and September 27, 2020, respectively. Allowance for credit losses was $10,982,000 and $13,431,000 as of December 27, 2020 and September 27, 2020, 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.