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Note 2 - Revenue
 9 Months Ended
Jun. 27, 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

  

39 Weeks Ended

 
  

June 27,

  

June 28,

  

June 27,

  

June 28,

 

(Thousands of Dollars)

 

2021

  

2020

  

2021

  

2020

 
                 

Advertising and marketing services revenue

  91,122   77,754   279,326   204,426 

Subscription revenue

  88,792   89,115   269,905   178,234 

TownNews and other digital services revenue

  4,713   5,010   14,363   14,544 

Other revenue

  11,863   10,649   37,142   29,034 

Total operating revenue

  196,490   182,528   600,736   426,238 

 

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 $62,255,000 as of June 27, 2021 and $60,271,000 as of September 27, 2020. Revenue recognized in the 13 and 39 weeks ended June 27, 2021 that was included in the contract liability as of September 27, 2020 was $5,489,000 and $53,992,000, respectively.

 

Accounts receivable, excluding allowance for credit losses was $70,558,000 and $66,029,000 as of June 27, 2021 and September 27, 2020, respectively. Allowance for credit losses was $8,473,000 and $13,431,000 as of June 27, 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.