Revenue and Related Contract Costs and Contract Liabilities

9 Months Ended

Sep. 30, 2023

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, 2022	$	44,757
Cash additions		185,615
Revenue recognized		(147,819	)
Foreign exchange translation adjustment		(9	)
Balance at September 30, 2023	$	82,544

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” 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, 2022	$	16,568
Additions		57,186
Expenses		(37,920	)
Foreign exchange translation adjustment		(41	)
Balance at September 30, 2023	$	35,793

As of September 30, 2023, capitalized contract costs consisted of $2.3 million to obtain contracts and $33.5 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, 2023 or 2022.

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)	2023		2022		2023		2022
Services:
Ticket revenue	$	71,741	$	60,825	$	122,545	$	99,364
Rooms revenue		48,674		42,453		78,370		69,915
Transportation		6,010		6,251		11,644		11,185
Other		8,994		7,581		13,694		11,968
Total services revenue		135,419		117,110		226,253		192,432
Products:
Food and beverage		28,394		25,105		47,897		41,369
Retail operations		23,127		21,581		33,927		31,378
Total products revenue		51,521		46,686		81,824		72,747
Total revenue	$	186,940	$	163,796	$	308,077	$	265,179
Timing of revenue recognition:
Services transferred over time	$	135,419	$	117,110	$	226,253	$	192,432
Products transferred at a point in time		51,521		46,686		81,824		72,747
Total revenue	$	186,940	$	163,796	$	308,077	$	265,179
Markets:
Banff Jasper Collection	$	96,503	$	80,829	$	161,022	$	134,121
Alaska Collection		26,846		25,591		40,000		39,407
Glacier Park Collection		42,806		41,080		57,991		55,670
FlyOver		9,675		8,276		22,550		18,285
Sky Lagoon		11,110		8,020		26,514		17,696
Total revenue	$	186,940	$	163,796	$	308,077	$	265,179

GES

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands)	2023			2022			2023			2022
Service lines:
Spiro	$	58,887		$	73,277		$	199,617		$	205,518
GES Exhibitions		122,115			147,872			446,146			414,303
Intersegment eliminations		(2,043	)		(2,224	)		(6,839	)		(5,716	)
Total revenue	$	178,959		$	218,925		$	638,924		$	614,105
Timing of revenue recognition:
Services transferred over time	$	149,700		$	189,089		$	539,345		$	519,036
Products transferred over time(1)		13,518			11,231			42,497			35,194
Products transferred at a point in time		15,741			18,605			57,082			59,875
Total revenue	$	178,959		$	218,925		$	638,924		$	614,105
Geographical markets:
North America	$	148,569		$	186,787		$	506,816		$	505,484
EMEA		42,325			43,088			154,506			127,435
Intersegment eliminations		(11,935	)		(10,950	)		(22,398	)		(18,814	)
Total revenue	$	178,959		$	218,925		$	638,924		$	614,105

(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.