Revenue and Related Contract Costs and Contract Liabilities

12 Months Ended

Dec. 31, 2022

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 Consolidated Balance Sheets.

Changes to contract liabilities are as follows:

(in thousands)
Balance at December 31, 2020	$	18,618
Cash additions		147,814
Revenue recognized		(126,573	)
Foreign exchange translation adjustment		(197	)
Balance at December 31, 2021		39,662
Cash additions		158,567
Revenue recognized		(151,408	)
Foreign exchange translation adjustment		(2,064	)
Balance at December 31, 2022	$	44,757

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 Consolidated Balance Sheets.

Changes to contract costs are as follows:

(in thousands)
Balance at December 31, 2020	$	10,835
Additions		31,923
Expenses		(27,935	)
Cancelled		(976	)
Foreign exchange translation adjustment		(57	)
Balance at December 31, 2021		13,790
Additions		62,038
Expenses		(58,561	)
Foreign exchange translation adjustment		(699	)
Balance at December 31, 2022	$	16,568

As of December 31, 2022, capitalized contract costs consisted of $16.6 million to fulfill contracts. We did not recognize an impairment loss with respect to capitalized contract costs during the years ended December 31, 2022 or 2021.

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

During the first quarter of 2022, we reallocated certain ancillary revenue presented in Pursuit’s services revenue to better align with how we analyze revenue and depict the nature of revenue. All prior periods have been reclassified to conform to this new presentation.

	Year Ended December 31,
(in thousands)	2022		2021		2020
Services:
Ticket revenue	$	114,936	$	61,166	$	19,939
Rooms revenue		77,019		57,603		26,383
Transportation		12,460		5,591		2,694
Other		14,143		8,564		3,567
Total services revenue		218,558		132,924		52,583
Products:
Food and beverage		47,275		28,953		10,295
Retail operations		33,494		25,171		13,932
Total products revenue		80,769		54,124		24,227
Total revenue	$	299,327	$	187,048	$	76,810
Timing of revenue recognition:
Services transferred over time	$	218,558	$	132,924	$	52,583
Products transferred at a point in time		80,769		54,124		24,227
Total revenue	$	299,327	$	187,048	$	76,810
Markets:
Banff Jasper Collection	$	152,863	$	82,728	$	46,913
Alaska Collection		39,434		37,344		6,282
Glacier Park Collection		57,760		45,276		17,596
FlyOver		24,445		10,693		6,019
Sky Lagoon(1)		24,825		11,007		—
Total revenue	$	299,327	$	187,048	$	76,810

(1)We opened Pursuit’s Sky Lagoon attraction in Reykjavik, Iceland on April 30, 2021.

GES

During the first quarter of 2022, we changed our segment reporting as a result of operational changes and how our CODM reviews the financial performance of GES and makes decisions regarding the allocation of resources. Accordingly, GES’ new reportable segments are Spiro and GES Exhibitions. As a result, we changed certain items in the following disaggregation of revenue table. All prior periods have been reclassified to conform to the new reporting structure.

	Year Ended December 31,
(in thousands)	2022			2021			2020
Service lines:
Spiro	$	277,641		$	116,587		$	102,027
GES Exhibitions		557,880			209,529			238,705
Intersegment eliminations		(7,537	)		(5,824	)		(2,107	)
Total revenue	$	827,984		$	320,292		$	338,625
Timing of revenue recognition:
Services transferred over time	$	693,482		$	268,218		$	298,945
Products transferred over time(1)		51,134			18,551			15,517
Products transferred at a point in time		83,368			33,523			24,163
Total revenue	$	827,984		$	320,292		$	338,625
Geographical markets:
North America	$	675,628		$	243,983		$	288,921
EMEA		176,086			82,242			53,384
Intersegment eliminations		(23,730	)		(5,933	)		(3,680	)
Total revenue	$	827,984		$	320,292		$	338,625

(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.