Note 2 - Revenue

6 Months Ended

Mar. 27, 2022

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

2 REVENUE

The following table presents our revenue disaggregated by source:

	Three months ended				Six months ended
	March 27,		March 28,		March 27,		March 28,
(Thousands of Dollars)	2022		2021		2022		2021
Operating revenue:
Print		44,248		53,685		100,218		120,291
Digital		43,385		31,890		86,169		67,913
Advertising and marketing services revenue		87,633		85,575		186,387		188,204
Print		77,255		82,801		156,883		167,816
Digital		10,093		6,976		17,984		13,264
Subscription revenue		87,348		89,777		174,867		181,080
Print		10,374		12,240		21,759		25,301
Digital		4,659		4,838		9,283		9,663
Other revenue		15,033		17,078		31,042		34,964
Total operating revenue		190,014		192,430		392,296		404,248

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.

Total Digital Revenue in the prior year was reclassified to conform to the current year presentation. Total Digital Revenue is defined as digital advertising and marketing services revenue (including Amplified), digital-only subscription revenue and digital services revenue.

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. Revenue recognized in the six months ended March 27, 2022 that was included in the contract liability as of September 26, 2021 was $47,340,000.

Accounts receivable, excluding allowance for credit losses was $74,422,000 and $71,644,000 as of March 27, 2022 and September 26, 2021, respectively. Allowance for credit losses was $6,688,000 and $6,574,000 as of March 27, 2022 and September 26, 2021, respectively.

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.