Revenue and Related Contract Costs and Contract Liabilities

3 Months Ended

Mar. 31, 2024

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, 2023	$	53,322
Cash additions		75,131
Revenue recognized		(45,381	)
Foreign exchange translation adjustment		(305	)
Balance at March 31, 2024	$	82,767

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, 2023	$	21,974
Additions		29,217
Expenses		(13,527	)
Foreign exchange translation adjustment		(61	)
Balance at March 31, 2024	$	37,603

As of March 31, 2024, capitalized contract costs consisted of $2.5 million to obtain contracts and $35.1 million to fulfill contracts. We did not recognize an impairment loss with respect to capitalized contract costs during the three months ended March 31, 2024 or 2023.

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
	March 31,
(in thousands)	2024		2023
Services:
Ticket revenue	$	17,805	$	14,261
Rooms revenue		7,604		7,590
Transportation		1,855		1,945
Other		1,720		1,367
Total services revenue		28,984		25,163
Products:
Food and beverage		6,522		5,875
Retail operations		1,725		1,625
Total products revenue		8,247		7,500
Total revenue	$	37,231	$	32,663
Timing of revenue recognition:
Services transferred over time	$	28,984	$	25,163
Products transferred at a point in time		8,247		7,500
Total revenue	$	37,231	$	32,663
Markets:
Banff Jasper Collection	$	18,106	$	17,614
Alaska Collection		613		453
Glacier Park Collection		1,433		1,455
FlyOver		6,189		5,855
Sky Lagoon		10,890		7,286
Total revenue	$	37,231	$	32,663

GES

	Three Months Ended
	March 31,
(in thousands)	2024			2023
Service lines:
Spiro	$	61,248		$	60,362
GES Exhibitions		175,840			169,497
Intersegment eliminations		(822	)		(1,731	)
Total revenue	$	236,266		$	228,128
Timing of revenue recognition:
Services transferred over time	$	197,946		$	192,977
Products transferred over time(1)		14,423			12,941
Products transferred at a point in time		23,897			22,210
Total revenue	$	236,266		$	228,128
Geographical markets:
North America	$	181,187		$	180,839
EMEA		58,961			49,537
Intersegment eliminations		(3,882	)		(2,248	)
Total revenue	$	236,266		$	228,128

(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.