Note 2 - Revenue

9 Months Ended

Jun. 26, 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				Nine months Ended
	June 26,		June 27,		June 26,		June 27,
(Thousands of Dollars)	2022		2021		2022		2021
Operating revenue:
Print		44,814		54,632		145,032		174,933
Digital		46,187		36,490		132,356		104,393
Advertising and marketing services revenue		91,001		91,122		277,388		279,326
Print		78,079		81,483		234,962		249,332
Digital		10,969		7,309		28,953		20,573
Subscription revenue		89,048		88,792		263,915		269,905
Print		10,671		11,880		32,430		37,177
Digital		4,317		4,696		13,600		14,328
Other revenue		14,988		16,576		46,030		51,505
Total operating revenue		195,037		196,490		587,333		600,736

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 revenue from our wholly owned digital marketing agency Amplified Digital TM("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 nine months ended June 26, 2022, that was included in the contract liability as of September 26, 2021, was $52,718,000.

Accounts receivable, excluding allowance for credit losses was $82,369,000 and $71,644,000 as of June 26, 2022, and September 26, 2021, respectively. Allowance for credit losses was $7,458,000 and $6,574,000 as of June 26, 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. Most 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.