Revenue and Related Contract Costs and Contract Liabilities (Tables)

9 Months Ended

Sep. 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		147,231
Revenue recognized		(120,477	)
Foreign exchange translation adjustment		(475	)
Balance at September 30, 2018	$	58,260

Summary of Changes in Contract Costs

Changes to contract costs are as follows:

(in thousands)
Balance at January 1, 2018	$	16,878
Additions		53,580
Expenses		(40,641	)
Cancelled		(109	)
Foreign exchange translation adjustment		(539	)
Balance at September 30, 2018	$	29,169

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 September 30, 2018
(in thousands)	GES U.S.		GES International		Intersegment Eliminations			Total
Services:
Core services	$	154,640	$	35,937	$	—		$	190,577
Audio-visual		17,309		4,423		—			21,732
Event technology		4,874		1,745		—			6,619
Intersegment eliminations		—		—		(2,479	)		(2,479	)
Total services		176,823		42,105		(2,479	)		216,449
Products:
Core products		14,876		14,785		—			29,661
Total revenue	$	191,699	$	56,890	$	(2,479	)	$	246,110

Timing of revenue recognition:
Services transferred over time	$	176,823	$	42,106	$	(2,479	)	$	216,450
Products transferred over time⁽¹⁾		10,281		3,226		—			13,507
Products transferred at a point in time		4,595		11,558		—			16,153
Total revenue	$	191,699	$	56,890	$	(2,479	)	$	246,110

Markets:
Exhibitions	$	108,348	$	41,925	$	—		$	150,273
Conferences		41,367		4,918		—			46,285
Corporate events		34,093		8,190		—			42,283
Consumer events		7,891		1,857		—			9,748
Intersegment eliminations		—		—		(2,479	)		(2,479	)
Total revenue	$	191,699	$	56,890	$	(2,479	)	$	246,110

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

	Nine Months Ended September 30, 2018
(in thousands)	GES U.S.		GES International		Intersegment Eliminations			Total
Services:
Core services	$	511,322	$	132,407	$	—		$	643,729
Audio-visual		55,134		14,144		—			69,278
Event technology		23,443		7,866		—			31,309
Intersegment eliminations		—		—		(12,173	)		(12,173	)
Total services		589,899		154,417		(12,173	)		732,143
Products:
Core products		46,907		50,088		—			96,995
Total revenue	$	636,806	$	204,505	$	(12,173	)	$	829,138

Timing of revenue recognition:
Services transferred over time	$	589,899	$	154,418	$	(12,173	)	$	732,144
Products transferred over time⁽¹⁾		30,957		13,043		—			44,000
Products transferred at a point in time		15,950		37,044		—			52,994
Total revenue	$	636,806	$	204,505	$	(12,173	)	$	829,138

Markets:
Exhibitions	$	364,016	$	150,623	$	—		$	514,639
Conferences		163,782		28,805		—			192,587
Corporate events		89,347		21,620		—			110,967
Consumer events		19,661		3,457		—			23,118
Intersegment eliminations		—		—		(12,173	)		(12,173	)
Total revenue	$	636,806	$	204,505	$	(12,173	)	$	829,138

⁽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			Nine Months Ended
(in thousands)	September 30, 2018			September 30, 2018
Services:
Accommodations	$	24,623		$	35,358
Admissions		51,316			78,375
Transportation		7,602			14,292
Travel planning		651			1,450
Intersegment eliminations		(554	)		(1,260	)
Total services revenue		83,638			128,215
Products:
Food and beverage		16,074			23,998
Retail operations		12,341			17,917
Total products revenue		28,415			41,915
Total revenue	$	112,053		$	170,130

Timing of revenue recognition:
Services transferred over time	$	83,638		$	128,215
Products transferred at a point in time		28,415			41,915
Total revenue	$	112,053		$	170,130

Markets:
Banff Jasper Collection	$	58,525		$	94,133
Alaska Collection		25,546			36,373
Glacier Park Collection		23,418			30,684
FlyOver		4,564			8,940
Total revenue	$	112,053		$	170,130

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, effective January 1, 2018, 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 September 30, 2018 was $4.4 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.