Revenue and Related Contract Costs and Contract Liabilities

9 Months Ended

Sep. 30, 2020

Revenue From Contract With Customer [Abstract]

Revenue and Related Contract Costs and Contract Liabilities

Note 2. Revenue and Related Contract Costs and Contract Liabilities

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 an exhibition, conference, or other event. GES’ revenue is earned over time over the duration of the event, but as a practical expedient we recognize revenue when we have a right to invoice at the close of the exhibition, conference, or corporate event, which typically lasts one to three days, or when a customer cancels a contract. We recognize revenue for consumer events over the duration of the 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, generally at the close of the exhibition, conference, or corporate event, or when a customer cancels a contract. If a customer cancels a contract, then GES is generally contractually able to invoice the customer for contract costs that have been incurred by GES in preparing for the exhibition, conference, or corporate event. Payment terms are generally within 30-60 days and contain no significant financing components.

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, the fulfillment of travel planning itineraries, 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.

Contract Liabilities

GES and Pursuit 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 these amounts in the Condensed Consolidated Balance Sheets under the captions “Contract liabilities” and “Other deferred items and liabilities.”

Changes to contract liabilities are as follows:

(in thousands)
Balance at December 31, 2019	$	50,796
Cash additions		130,018
Revenue recognized		(162,954	)
Foreign exchange translation adjustment		(84	)
Balance at September 30, 2020	$	17,776

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 exhibitions, conferences, and 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 cost of services or cost of products, as applicable. We include the deferred incremental costs of obtaining and fulfilling contracts in the Condensed Consolidated Balance Sheets under the captions “Current contract costs” and “Other investments and assets.”

Changes to contract costs are as follows:

(in thousands)
Balance at December 31, 2019	$	28,496
Additions		16,710
Expenses		(22,774	)
Cancelled		(9,840	)
Foreign exchange translation adjustment		(479	)
Balance at September 30, 2020	$	12,113

As of September 30, 2020, capitalized contract costs consisted of $1.2 million to obtain contracts and $10.9 million to fulfill contracts. We did not recognize an impairment loss with respect to capitalized contract costs during the three and nine months ended September 30, 2020 or 2019.

Disaggregation of Revenue

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, 2020
(in thousands)	GES North America		GES EMEA			Intersegment Eliminations			Total
Services:
Core services	$	7,987	$	2,003		$	—		$	9,990
Audio-visual		933		(40	)		—			893
Event technology		1,283		414			—			1,697
Intersegment eliminations		—		—			(284	)		(284	)
Total services		10,203		2,377			(284	)		12,296
Products:
Core products		1,564		397			—			1,961
Total revenue	$	11,767	$	2,774		$	(284	)	$	14,257
Timing of revenue recognition:
Services transferred over time	$	10,203	$	2,377		$	(284	)	$	12,296
Products transferred over time(1)		232		15			—			247
Products transferred at a point in time		1,332		382			—			1,714
Total revenue	$	11,767	$	2,774		$	(284	)	$	14,257
Markets:
Exhibitions	$	4,890	$	2,323		$	—		$	7,213
Conferences		1,099		367			—			1,466
Corporate events		4,537		67			—			4,604
Consumer events		1,241		17			—			1,258
Intersegment eliminations		—		—			(284	)		(284	)
Total revenue	$	11,767	$	2,774		$	(284	)	$	14,257

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

	Nine Months Ended September 30, 2020
(in thousands)	GES North America		GES EMEA		Intersegment Eliminations			Total
Services:
Core services	$	225,414	$	33,350	$	—		$	258,764
Audio-visual		18,661		3,549		—			22,210
Event technology		7,946		4,126		—			12,072
Intersegment eliminations		—		—		(3,258	)		(3,258	)
Total services		252,021		41,025		(3,258	)		289,788
Products:
Core products		21,402		11,071		—			32,473
Total revenue	$	273,423	$	52,096	$	(3,258	)	$	322,261
Timing of revenue recognition:
Services transferred over time	$	252,021	$	41,025	$	(3,258	)	$	289,788
Products transferred over time(1)		11,035		2,407		—			13,442
Products transferred at a point in time		10,367		8,664		—			19,031
Total revenue	$	273,423	$	52,096	$	(3,258	)	$	322,261
Markets:
Exhibitions	$	203,671	$	39,001	$	—		$	242,672
Conferences		39,626		7,618		—			47,244
Corporate events		24,012		5,308		—			29,320
Consumer events		6,114		169		—			6,283
Intersegment eliminations		—		—		(3,258	)		(3,258	)
Total revenue	$	273,423	$	52,096	$	(3,258	)	$	322,261

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

	Three Months Ended September 30, 2019
(in thousands)	GES North America		GES EMEA		Intersegment Eliminations			Total
Services:
Core services	$	148,722	$	20,539	$	—		$	169,261
Audio-visual		18,742		4,402		—			23,144
Event technology		4,760		1,414		—			6,174
Intersegment eliminations		—		—		(5,724	)		(5,724	)
Total services		172,224		26,355		(5,724	)		192,855
Products:
Core products		12,900		12,945		—			25,845
Total revenue	$	185,124	$	39,300	$	(5,724	)	$	218,700
Timing of revenue recognition:
Services transferred over time	$	172,224	$	26,355	$	(5,724	)	$	192,855
Products transferred over time(1)		10,558		2,305		—			12,863
Products transferred at a point in time		2,342		10,640		—			12,982
Total revenue	$	185,124	$	39,300	$	(5,724	)	$	218,700
Markets:
Exhibitions	$	79,589	$	29,140	$	—		$	108,729
Conferences		60,537		4,938		—			65,475
Corporate events		39,370		5,020		—			44,390
Consumer events		5,628		202		—			5,830
Intersegment eliminations		—		—		(5,724	)		(5,724	)
Total revenue	$	185,124	$	39,300	$	(5,724	)	$	218,700

^{(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.}

	Nine Months Ended September 30, 2019
(in thousands)	GES North America		GES EMEA		Intersegment Eliminations			Total
Services:
Core services	$	531,485	$	86,715	$	—		$	618,200
Audio-visual		61,323		15,171		—			76,494
Event technology		23,368		6,501		—			29,869
Intersegment eliminations		—		—		(14,731	)		(14,731	)
Total services		616,176		108,387		(14,731	)		709,832
Products:
Core products		50,649		48,086		—			98,735
Total revenue	$	666,825	$	156,473	$	(14,731	)	$	808,567
Timing of revenue recognition:
Services transferred over time	$	616,176	$	108,387	$	(14,731	)	$	709,832
Products transferred over time(1)		33,601		10,595		—			44,196
Products transferred at a point in time		17,048		37,491		—			54,539
Total revenue	$	666,825	$	156,473	$	(14,731	)	$	808,567
Markets:
Exhibitions	$	349,106	$	119,189	$	—		$	468,295
Conferences		195,635		17,170		—			212,805
Corporate events		102,525		19,165		—			121,690
Consumer events		19,559		949		—			20,508
Intersegment eliminations		—		—		(14,731	)		(14,731	)
Total revenue	$	666,825	$	156,473	$	(14,731	)	$	808,567

^{(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.}

Pursuit

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands)	2020			2019			2020			2019
Services:
Admissions	$	12,229		$	49,353		$	17,865		$	76,034
Accommodations		18,021			41,292			23,994			56,636
Transportation		445			6,868			2,513			12,817
Travel planning		855			2,004			1,484			4,107
Intersegment eliminations		(144	)		(671	)		(261	)		(1,355	)
Total services revenue		31,406			98,846			45,595			148,239
Products:
Food and beverage		6,783			19,333			9,047			28,903
Retail operations		10,626			16,864			12,960			23,977
Total products revenue		17,409			36,197			22,007			52,880
Total revenue	$	48,815		$	135,043		$	67,602		$	201,119
Timing of revenue recognition:
Services transferred over time	$	31,406		$	98,846		$	45,595		$	148,239
Products transferred at a point in time		17,409			36,197			22,007			52,880
Total revenue	$	48,815		$	135,043		$	67,602		$	201,119
Markets:
Banff Jasper Collection	$	26,395		$	75,337		$	39,234		$	116,433
Alaska Collection		5,436			26,909			6,167			39,287
Glacier Park Collection		14,929			28,098			16,813			36,296
FlyOver		2,055			4,699			5,388			9,103
Total revenue	$	48,815		$	135,043		$	67,602		$	201,119