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. 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 exhibition, conference, or corporate 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 . 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. Revenue is recognized when the service has been provided or the product has been delivered. When credit is extended, 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 Consolidated Balance Sheets under the captions “Contract liabilities” and “Other deferred items and liabilities.” The decrease in contract liabilities for the year ended December 31, 2020 was primarily due to the reduction of planned shows in the first half of 2021 due to the COVID-19 pandemic. Changes to contract liabilities are as follows: (in thousands) Balance at January 1, 2019 $ 35,600 Cash additions 210,871 Revenue recognized (196,158 ) Foreign exchange translation adjustment 483 Balance at December 31, 2019 50,796 Cash additions 154,057 Revenue recognized (186,518 ) Foreign exchange translation adjustment 283 Balance at December 31, 2020 $ 18,618 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 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 January 1, 2019 $ 21,478 Additions 74,274 Expenses (67,425 ) Cancelled (68 ) Foreign exchange translation adjustment 237 Balance at December 31, 2019 28,496 Additions 19,517 Expenses (25,381 ) Cancelled (11,482 ) Foreign exchange translation adjustment (315 ) Balance at December 31, 2020 $ 10,835 As of December 31, 2020, capitalized contract costs consisted of $0.9 million to obtain contracts and $9.9 million to fulfill contracts. We did not recognize an impairment loss with respect to capitalized contract costs during the years ended December 31, 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 Year Ended December 31, 2020 (in thousands) GES North America GES EMEA Intersegment Eliminations Total Services: Core services $ 231,666 $ 33,556 $ — $ 265,222 Audio-visual 20,148 4,126 — 24,274 Event technology 9,150 3,979 — 13,129 Intersegment eliminations — — (3,680 ) (3,680 ) Total services 260,964 41,661 (3,680 ) 298,945 Products: Core products 27,957 11,723 — 39,680 Total revenue $ 288,921 $ 53,384 $ (3,680 ) $ 338,625 Timing of revenue recognition: Services transferred over time $ 260,964 $ 41,661 $ (3,680 ) $ 298,945 Products transferred over time ( 1) 13,068 2,449 — 15,517 Products transferred at a point in time 14,889 9,274 — 24,163 Total revenue $ 288,921 $ 53,384 $ (3,680 ) $ 338,625 Markets: Exhibitions $ 211,953 $ 40,077 $ — $ 252,030 Conferences 41,371 7,789 — 49,160 Corporate events 24,521 5,353 — 29,874 Consumer events 11,076 165 — 11,241 Intersegment eliminations — — (3,680 ) (3,680 ) Total revenue $ 288,921 $ 53,384 $ (3,680 ) $ 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. Year Ended December 31, 2019 (in thousands) GES North America GES EMEA Intersegment Eliminations Total Services: Core services $ 701,721 $ 113,900 $ — $ 815,621 Audio-visual 78,178 24,197 — 102,375 Event technology 29,600 9,749 — 39,349 Intersegment eliminations — — (20,741 ) (20,741 ) Total services 809,499 147,846 (20,741 ) 936,604 Products: Core products 74,606 68,713 — 143,319 Total revenue $ 884,105 $ 216,559 $ (20,741 ) $ 1,079,923 Timing of revenue recognition: Services transferred over time $ 809,499 $ 147,846 $ (20,741 ) $ 936,604 Products transferred over time ( 1) 45,597 16,071 — 61,668 Products transferred at a point in time 29,009 52,642 — 81,651 Total revenue $ 884,105 $ 216,559 $ (20,741 ) $ 1,079,923 Markets: Exhibitions $ 463,653 $ 159,397 $ — $ 623,050 Conferences 253,511 24,499 — 278,010 Corporate events 139,935 31,627 — 171,562 Consumer events 27,006 1,036 — 28,042 Intersegment eliminations — — (20,741 ) (20,741 ) Total revenue $ 884,105 $ 216,559 $ (20,741 ) $ 1,079,923 (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. Year Ended December 31, 2018 (in thousands) GES North America GES EMEA Intersegment Eliminations Total Services: Core services $ 689,804 $ 105,114 $ — $ 794,918 Audio-visual 73,331 22,011 — 95,342 Event technology 30,208 10,658 — 40,866 Intersegment eliminations — — (17,140 ) (17,140 ) Total services 793,343 137,783 (17,140 ) 913,986 Products: Core products 72,844 65,207 — 138,051 Total revenue $ 866,187 $ 202,990 $ (17,140 ) $ 1,052,037 Timing of revenue recognition: Services transferred over time $ 793,343 $ 137,783 $ (17,140 ) $ 913,986 Products transferred over time ( 1) 44,109 16,084 — 60,193 Products transferred at a point in time 28,735 49,123 — 77,858 Total revenue $ 866,187 $ 202,990 $ (17,140 ) $ 1,052,037 Markets: Exhibitions $ 486,400 $ 149,338 $ — $ 635,738 Conferences 223,096 24,209 — 247,305 Corporate events 126,084 27,413 — 153,497 Consumer events 30,607 2,030 — 32,637 Intersegment eliminations — — (17,140 ) (17,140 ) Total revenue $ 866,187 $ 202,990 $ (17,140 ) $ 1,052,037 (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 Year Ended December 31, (in thousands) 2020 2019 2018 Services: Admissions $ 19,939 $ 85,371 $ 83,000 Accommodations 29,800 60,672 37,470 Transportation 2,694 14,594 13,956 Travel planning 467 5,979 4,529 Intersegment eliminations (317 ) (1,686 ) (1,551 ) Total services revenue 52,583 164,930 137,404 Products: Food and beverage 10,295 31,838 25,962 Retail operations 13,932 26,045 21,921 Total products revenue 24,227 57,883 47,883 Total revenue $ 76,810 $ 222,813 $ 185,287 Timing of revenue recognition: Services transferred over time $ 52,583 $ 164,930 $ 137,404 Products transferred at a point in time 24,227 57,883 47,883 Total revenue $ 76,810 $ 222,813 $ 185,287 Markets: Banff Jasper Collection $ 46,913 $ 133,229 $ 106,106 Alaska Collection 6,282 39,406 36,451 Glacier Park Collection 17,596 37,121 31,465 FlyOver 6,019 13,057 11,265 Total revenue $ 76,810 $ 222,813 $ 185,287 |