Note 3 - Revenue

12 Months Ended

Sep. 27, 2020

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

3     REVENUE

The following table presents our revenue disaggregated by source:

(Thousands of Dollars)	September 27, 2020		September 29, 2019		September 30, 2018
Advertising and marketing services revenue		289,655		265,933		303,446
Subscription Revenue		265,939		186,691		195,108
TownNews and other digital services revenue		20,478		19,637		16,328
Other revenue		41,932		37,593		29,073
Total operating revenue		618,004		509,854		543,955

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 unearned revenue is 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 $60,271,000 as of  September 27, 2020 and $21,720,000 as of September 29, 2019. Revenue recognized in the 52 weeks ended  September 27, 2020 that was included in the contract liability as of  September 29, 2019 was $21,549,000.

Contract asset balances relate to our Management Agreement revenue was $1,107,000 as of September 29, 2019 and consisted solely of the variable portion of the contract. As a result of the Transactions, we had no contract balances as of September 27, 2020. In conjunction with the execution of the Purchase Agreement, the previously recorded contract asset balance was collected on March 16, 2020. Accounts receivable, excluding allowance for doubtful accounts and contract assets, was $66,029,000 and $47,863,000 as of  September 27, 2020 and  September 29, 2019 respectively. Allowance for doubtful accounts was $13,431,000 and $6,434,000 as of  September 27, 2020 and September 29, 2019, 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.