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Note 2 - Revenue
 6 Months Ended
Mar. 28, 2021
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

  

26 Weeks Ended

 
  

March 28,

  

March 29,

  

March 28,

  

March 29,

 

(Thousands of Dollars)

 

2021

  

2020

  

2021

  

2020

 
                 

Advertising and marketing services revenue

  85,575   60,945   188,204   126,672 

Subscription revenue

  89,777   46,943   181,080   89,113 
TownNews and other digital services revenue  4,820   4,905   9,966   9,889 

Other revenue

  12,258   8,574   24,998   18,036 

Total operating revenue

  192,430   121,367   404,248   243,710 

 

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 $63,870,000 as of March 28, 2021 and $60,271,000 as of September 27, 2020. Revenue recognized in the 13 and 26 weeks ended March 28, 2021 that was included in the contract liability as of September 27, 2020 was $12,548,000 and $48,562,000, respectively.

 

Accounts receivable, excluding allowance for credit losses was $69,289,000 and $66,029,000 as of March 28, 2021 and September 27, 2020, respectively. Allowance for credit losses was $9,138,000 and $13,431,000 as of March 28, 2021 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.