Revenue and Related Contract Costs and Contract Liabilities (Tables)

6 Months Ended

Jun. 30, 2018

Summary of Changes in Contract Liabilities

Changes to contract liabilities are as follows:

(in thousands)
Balance at January 1, 2018	$	31,981
Cash additions		87,716
Revenue recognized		(68,676	)
Foreign exchange translation adjustment		(602	)
Balance at June 30, 2018	$	50,419

Summary of Changes in Contract Costs

Changes to contract costs are as follows:

(in thousands)
Balance at January 1, 2018	$	16,878
Additions		32,720
Expenses		(22,514	)
Foreign exchange translation adjustment		(412	)
Balance at June 30, 2018	$	26,672

Disaggregate GES and Pursuit Revenue by Major Product Line Timing of Revenue Recognition and Markets Served (Details)

The following tables disaggregate GES and Pursuit revenue by major product line, timing of revenue recognition, and markets served:

GES

	Three Months Ended June 30, 2018
(in thousands)	GES U.S.		GES International		Intersegment Eliminations			Total
Services:
Core services	$	193,315	$	50,257	$	—		$	243,572
Audio-visual		20,741		6,553		—			27,294
Event technology		10,534		2,847		—			13,381
Intersegment eliminations		—		—		(6,346	)		(6,346	)
Total services		224,590		59,657		(6,346	)		277,901
Products:
Core products		16,649		20,772		—			37,421
Total revenue	$	241,239	$	80,429	$	(6,346	)	$	315,322

Timing of revenue recognition:
Services transferred over time	$	224,590	$	59,657	$	(6,346	)	$	277,901
Products transferred over time⁽¹⁾		10,084		5,710		—			15,794
Products transferred at a point in time		6,565		15,062		—			21,627
Total revenue	$	241,239	$	80,429	$	(6,346	)	$	315,322

Markets:
Exhibitions	$	125,174	$	53,368	$	—		$	178,542
Conferences		84,599		17,226		—			101,825
Corporate events		25,810		8,570		—			34,380
Consumer events		5,656		1,265		—			6,921
Intersegment eliminations		—		—		(6,346	)		(6,346	)
Total revenue	$	241,239	$	80,429	$	(6,346	)	$	315,322

⁽¹⁾	GES’ graphics product revenue is recognized over time as it is considered a part of the single performance obligation satisfied over time.

	Six Months Ended June 30, 2018
(in thousands)	GES U.S.		GES International		Intersegment Eliminations			Total
Services:
Core services	$	356,682	$	96,470	$	—		$	453,152
Audio-visual		37,825		9,721		—			47,546
Event technology		18,569		6,121		—			24,690
Intersegment eliminations		—		—		(9,694	)		(9,694	)
Total services		413,076		112,312		(9,694	)		515,694
Products:
Core products		32,031		35,303		—			67,334
Total revenue	$	445,107	$	147,615	$	(9,694	)	$	583,028

Timing of revenue recognition:
Services transferred over time	$	413,076	$	112,312	$	(9,694	)	$	515,694
Products transferred over time⁽¹⁾		20,676		9,817		—			30,493
Products transferred at a point in time		11,355		25,486		—			36,841
Total revenue	$	445,107	$	147,615	$	(9,694	)	$	583,028

Markets:
Exhibitions	$	255,668	$	108,698	$	—		$	364,366
Conferences		122,415		23,887		—			146,302
Corporate events		55,254		13,430		—			68,684
Consumer events		11,770		1,600		—			13,370
Intersegment eliminations		—		—		(9,694	)		(9,694	)
Total revenue	$	445,107	$	147,615	$	(9,694	)	$	583,028

⁽¹⁾	GES’ graphics product revenue is recognized over time as it is considered a part of the single performance obligation satisfied over time.

Pursuit

	Three Months Ended			Six Months Ended
(in thousands)	June 30, 2018			June 30, 2018
Services:
Accommodations	$	9,030		$	10,735
Admissions		23,480			27,059
Transportation		4,321			6,690
Travel planning		491			799
Intersegment eliminations		(500	)		(706	)
Total services revenue		36,822			44,577
Products:
Food and beverage		6,705			7,924
Retail operations		4,828			5,576
Total products revenue		11,533			13,500
Total revenue	$	48,355		$	58,077

Timing of revenue recognition:
Services transferred over time	$	36,822		$	44,577
Products transferred at a point in time		11,533			13,500
Total revenue	$	48,355		$	58,077

Markets:
Banff Jasper Collection	$	28,519		$	35,608
Alaska Collection		10,614			10,827
Glacier Park Collection		6,640			7,266
FlyOver		2,582			4,376
Total revenue	$	48,355		$	58,077

Accounting Standards Update 2014-09

Balance Sheet Reclassifications made to Separately Present Contract Costs and Contract Liabilities in Connection with Adoption of Topic 606

In connection with the adoption of Topic 606, we made the following reclassifications to separately present contract costs and contract liabilities on the Condensed Consolidated Balance Sheet as of December 31, 2017:

	December 31, 2017
(in thousands)	As Previously Reported		Reclassifications			As Adjusted
Cash and cash equivalents	$	53,723		—		$	53,723
Accounts receivable, net		104,811		—			104,811
Inventories ⁽¹⁾		30,372		(12,822	)		17,550
Current contract costs ⁽¹⁾		—		13,436			13,436
Other current assets ⁽¹⁾		21,030		(1,289	)		19,741
Property and equipment, net		305,571		—			305,571
Other investments and assets ⁽¹⁾		47,512		675			48,187
Deferred income taxes		23,548		—			23,548
Goodwill		270,551		—			270,551
Other intangible assets, net		62,781		—			62,781
Total assets	$	919,899		—		$	919,899
Accounts payable	$	77,380		—		$	77,380
Customer deposits ⁽²⁾		33,415		(33,415	)		—
Contract liabilities ⁽²⁾		—		31,981			31,981
Accrued compensation		30,614		—			30,614
Other current liabilities ⁽²⁾		38,720		1,434			40,154
Debt and capital lease obligations, current and long-term		209,192		—			209,192
Pension and postretirement benefits		28,135		—			28,135
Other deferred items and liabilities		52,858		—			52,858
Total liabilities		470,314		—			470,314
Redeemable noncontrolling interest		6,648		—			6,648
Total stockholders’ equity ⁽³⁾		442,937		—			442,937
Total liabilities and stockholders’ equity	$	919,899		—		$	919,899

⁽¹⁾

Contract costs primarily consist of deferred core services costs (including labor and vendor purchases) required to service future exhibitions, conferences and other events, and commission expenses incurred to obtain contracts. All such costs were previously included in “Inventories” and in certain other assets. As a result of the changes noted above, deferred core services costs related to exhibitions and events that are scheduled to occur longer than one year in the future are currently included in “Other investments and assets”. The impact of this change reduced total current assets at December 31, 2017 by $0.7 million. The amount of deferred core services costs included in “Other investments and assets” at June 30, 2018 was $5.1 million.

⁽²⁾

In connection with the adoption of Topic 606, we elected to more prominently present contract liabilities on the Consolidated Balance Sheets. Consequently, customer deposits of $33.4 million as of December 31, 2017, have been reclassified to “Contract liabilities” and to other certain current liabilities to conform to the current period presentation.

⁽³⁾	We determined that the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of retained earnings was not material, and therefore we made no adjustment.