Revenue and Related Contract Costs and Contract Liabilities

12 Months Ended

Dec. 31, 2023

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, 2021	$	39,662
Cash additions		158,567
Revenue recognized		(151,408	)
Foreign exchange translation adjustment		(2,064	)
Balance at December 31, 2022		44,757
Cash additions		229,688
Revenue recognized		(222,379	)
Foreign exchange translation adjustment		1,256
Balance at December 31, 2023	$	53,322

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, 2021	$	13,790
Additions		62,038
Expenses		(58,561	)
Foreign exchange translation adjustment		(699	)
Balance at December 31, 2022		16,568
Additions		72,990
Expenses		(67,866	)
Foreign exchange translation adjustment		282
Balance at December 31, 2023	$	21,974

As of December 31, 2023, capitalized contract costs consisted of $2.2 million to obtain contracts and $19.8 million to fulfill contracts. We did not recognize an impairment loss with respect to capitalized contract costs during the years ended December 31, 2023 or 2022.

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

	Year Ended December 31,
(in thousands)	2023		2022		2021
Services:
Ticket revenue	$	143,362	$	114,936	$	61,166
Rooms revenue		85,942		77,019		57,603
Transportation		13,440		12,460		5,591
Other		15,920		14,143		8,564
Total services revenue		258,664		218,558		132,924
Products:
Food and beverage		55,044		47,275		28,953
Retail operations		36,577		33,494		25,171
Total products revenue		91,621		80,769		54,124
Total revenue	$	350,285	$	299,327	$	187,048
Timing of revenue recognition:
Services transferred over time	$	258,664	$	218,558	$	132,924
Products transferred at a point in time		91,621		80,769		54,124
Total revenue	$	350,285	$	299,327	$	187,048
Markets:
Banff Jasper Collection	$	183,709	$	152,863	$	82,728
Alaska Collection		40,014		39,434		37,344
Glacier Park Collection		60,104		57,760		45,276
FlyOver		29,626		24,445		10,693
Sky Lagoon		36,832		24,825		11,007
Total revenue	$	350,285	$	299,327	$	187,048

GES

	Year Ended December 31,
(in thousands)	2023			2022			2021
Service lines:
Spiro	$	283,171		$	277,641		$	116,587
GES Exhibitions		614,418			557,880			209,529
Intersegment eliminations		(9,194	)		(7,537	)		(5,824	)
Total revenue	$	888,395		$	827,984		$	320,292
Timing of revenue recognition:
Services transferred over time	$	747,562		$	693,482		$	268,218
Products transferred over time(1)		58,511			51,134			18,551
Products transferred at a point in time		82,322			83,368			33,523
Total revenue	$	888,395		$	827,984		$	320,292
Geographical markets:
North America	$	687,324		$	675,628		$	243,983
EMEA		235,211			176,086			82,242
Intersegment eliminations		(34,140	)		(23,730	)		(5,933	)
Total revenue	$	888,395		$	827,984		$	320,292

(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.