Revenue and Related Contract Costs and Contract Liabilities

6 Months Ended

Jun. 30, 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		152,091
Revenue recognized		(121,576	)
Foreign exchange translation adjustment		(361	)
Balance at June 30, 2024	$	83,476

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” in the Condensed Consolidated Statement of Operations 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		53,822
Expenses		(40,295	)
Foreign exchange translation adjustment		(57	)
Balance at June 30, 2024	$	35,444

As of June 30, 2024, capitalized contract costs consisted of $3.1 million to obtain contracts and $32.3 million to fulfill contracts. We did not recognize an impairment loss with respect to capitalized contract costs during the three and six months ended June 30, 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				Six Months Ended
	June 30,				June 30,
(in thousands)	2024		2023		2024		2023
Services:
Ticket revenue	$	43,707	$	36,543	$	61,512	$	50,804
Rooms revenue		24,578		22,106		32,182		29,696
Transportation		3,338		3,689		5,193		5,634
Other		4,427		3,333		6,147		4,700
Total services revenue		76,050		65,671		105,034		90,834
Products:
Food and beverage		15,046		13,628		21,568		19,503
Retail operations		10,105		9,175		11,830		10,800
Total products revenue		25,151		22,803		33,398		30,303
Total revenue	$	101,201	$	88,474	$	138,432	$	121,137
Timing of revenue recognition:
Services transferred over time	$	76,050	$	65,671	$	105,034	$	90,834
Products transferred at a point in time		25,151		22,803		33,398		30,303
Total revenue	$	101,201	$	88,474	$	138,432	$	121,137
Markets:
Banff Jasper Collection	$	53,696	$	46,905	$	71,802	$	64,519
Alaska Collection		14,046		12,701		14,659		13,154
Glacier Park Collection		15,311		13,730		16,744		15,185
FlyOver		8,533		7,020		14,722		12,875
Sky Lagoon		9,615		8,118		20,505		15,404
Total revenue	$	101,201	$	88,474	$	138,432	$	121,137

GES

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands)	2024			2023			2024			2023
Service lines:
Spiro	$	99,132		$	80,368		$	160,380		$	140,730
GES Exhibitions		180,977			154,534			356,817			324,031
Intersegment eliminations		(2,772	)		(3,065	)		(3,594	)		(4,796	)
Total revenue	$	277,337		$	231,837		$	513,603		$	459,965
Timing of revenue recognition:
Services transferred over time	$	233,910		$	196,668		$	431,856		$	389,645
Products transferred over time(1)		18,548			16,038			32,971			28,979
Products transferred at a point in time		24,879			19,131			48,776			41,341
Total revenue	$	277,337		$	231,837		$	513,603		$	459,965
Geographical markets:
North America	$	228,794		$	177,408		$	409,981		$	358,247
EMEA		71,175			62,644			130,136			112,181
Intersegment eliminations		(22,632	)		(8,215	)		(26,514	)		(10,463	)
Total revenue	$	277,337		$	231,837		$	513,603		$	459,965

(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.