REVENUE

The Company generates revenue from several sources:


•	The primary source of revenue in the Audio segment is the sale of advertising on the Company’s radio stations, its iHeartRadio mobile application and website, station websites, and live events. This segment also generates revenues from programming talent, network syndication, traffic and weather data, and other miscellaneous transactions.


•	The Company also generates revenue through contractual commissions realized from the sale of national spot and online advertising on behalf of clients of its full-service media representation business, Katz Media, which is reported in the Company’s Audio and Media Services segment.

Disaggregation of Revenue

The following table shows revenue streams for the Successor Company for the period from May 2, 2019 through December 31, 2019:



Successor Company
(In thousands)	Audio		Audio and Media Services		Eliminations			Consolidated
Period from May 2, 2019 through December 31, 2019
Revenue from contracts with customers:
Broadcast Radio⁽¹⁾	$	1,575,382	$	—	$	—		$	1,575,382
Digital⁽²⁾	273,389		—		—			273,389
Networks⁽³⁾	425,631		—		—			425,631
Sponsorship and Events⁽⁴⁾	159,187		—		—			159,187
Audio and Media Services⁽⁵⁾	—		167,292		(4,589		)	162,703
Other⁽⁶⁾	13,017		—		(447		)	12,570
Total	2,446,606		167,292		(5,036		)	2,608,862
Revenue from leases⁽⁷⁾	1,194		—		—			1,194
Revenue, total	$	2,447,800	$	167,292	$	(5,036	)	$	2,610,056


⁽¹⁾	Broadcast Radio revenue is generated through the sale of advertising time on the Company’s domestic radio stations.


⁽²⁾	Digital revenue is generated through the sale of streaming and display advertisements on digital platforms, subscriptions to iHeartRadio streaming services, podcasting and the dissemination of other digital content.


⁽³⁾	Networks revenue is generated through the sale of advertising on the Company’s Premiere and Total Traffic & Weather network programs and through the syndication of network programming to other media companies.


⁽⁴⁾	Sponsorship and events revenue is generated through local events and major nationally-recognized tent pole events and include sponsorship and other advertising revenue, ticket sales, and licensing, as well as endorsement and appearance fees generated by on-air talent.

⁽⁵⁾

Audio and media services revenue is generated by services provided to broadcast industry participants through the Company’s Katz Media and RCS businesses. As a media representation firm, Katz Media generates revenue via commissions on media sold on behalf of the radio and television stations that it represents, while RCS generates revenue by providing broadcast and webcast software and technology and services to radio stations, television music channels, cable companies, satellite music networks and Internet stations worldwide.


⁽⁶⁾	Other revenue represents fees earned for miscellaneous services, including on-site promotions, activations, and local marketing agreements.


⁽⁷⁾	Revenue from leases is primarily generated by the lease of towers to other media companies, which are all categorized as operating leases.

The following table shows revenue streams from continuing operations for the Predecessor Company. The presentation of amounts in the Predecessor periods has been revised to conform to the Successor period presentation.



Predecessor Company
(In thousands)	Audio⁽¹⁾		Audio and Media Services⁽¹⁾		Eliminations			Consolidated
Period from January 1, 2019 through May 1, 2019
Revenue from contracts with customers:
Broadcast Radio	$	657,864	$	—	$	—		$	657,864
Digital	102,789		—		—			102,789
Networks	189,088		—		—			189,088
Sponsorship and Events	50,330		—		—			50,330
Audio and Media Services	—		69,362		(2,325		)	67,037
Other	5,910		—		(243		)	5,667
Total	1,005,981		69,362		(2,568		)	1,072,775
Revenue from leases	696		—		—			696
Revenue, total	$	1,006,677	$	69,362	$	(2,568	)	$	1,073,471

Year Ended December 31, 2018
Revenue from contracts with customers:
Broadcast Radio	$	2,264,058	$	—	$	—		$	2,264,058
Digital	284,565		—		—			284,565
Networks	582,302		—		—			582,302
Sponsorship and Events	200,605		—		—			200,605
Audio and Media Services	—		264,061		(6,508		)	257,553
Other	19,446		—		—			19,446
Total	3,350,976		264,061		(6,508		)	3,608,529
Revenue from leases	2,794		—		—			2,794
Revenue, total	$	3,353,770	$	264,061	$	(6,508	)	$	3,611,323

Year Ended December 31, 2017
Revenue from contracts with customers:
Broadcast Radio	$	2,292,116	$	—	$	—		$	2,292,116
Digital	248,736		—		—			248,736
Networks	581,733		—		—			581,733
Sponsorship and Events	201,775		—		—			201,775
Audio and Media Services	—		235,951		(6,511		)	229,440
Other	28,545		—		—			28,545
Total	3,352,905		235,951		(6,511		)	3,582,345
Revenue from leases	4,302		—		—			4,302
Revenue, total	$	3,357,207	$	235,951	$	(6,511	)	$	3,586,647


⁽¹⁾	Due to a re-evaluation of the Company’s internal segment reporting upon the effectiveness of the Plan of Reorganization, the Company’s RCS business is included in the Audio & Media Services results for all periods presented. See Note 1 for further information.

Trade and Barter

Trade and barter transactions represent the exchange of advertising spots for merchandise, services, other advertising or other assets in the ordinary course of business. The transaction price for these contracts is measured at the estimated fair value of the non-cash consideration received unless this is not reasonably estimable, in which case the consideration is measured based on the standalone selling price of the advertising spots promised to the customer. Trade and barter revenues and expenses from continuing operations, which are included in consolidated revenue and selling, general and administrative expenses, respectively, were as follows:



	Successor Company		Predecessor Company
	Period from May 2, 2019 through December 31,		Period from January 1, 2019 through May 1,		Year Ended December 31,
(In thousands)	2019		2019		2018		2017
Consolidated:
Trade and barter revenues	$	151,497	$	65,934	$	202,674	$	226,737
Trade and barter expenses	134,865		58,330		199,982		190,906

Deferred Revenue

The following tables show the Company’s deferred revenue balance from contracts with customers, excluding discontinued operations:



	Successor Company			Predecessor Company
	Period from May 2, 2019 through December 31,			Period from January 1, 2019 through May 1,			Year Ended December 31,
(In thousands)	2019			2019			2018			2017
Deferred revenue from contracts with customers:
Beginning balance⁽¹⁾	$	151,475		$	148,720		$	155,228		$	165,037
Impact of fresh start accounting	298			—			—			—
Revenue recognized, included in beginning balance	(102,237		)	(76,473		)	(115,930		)	(119,739		)
Additions, net of revenue recognized during period, and other	112,532			79,228			109,422			109,930
Ending balance	$	162,068		$	151,475		$	148,720		$	155,228

⁽¹⁾

Deferred revenue from contracts with customers, which excludes other sources of deferred revenue that are not related to contracts with customers, is included within deferred revenue and other long-term liabilities on the Consolidated Balance Sheets, depending upon when revenue is expected to be recognized. As described in Note 3, as part of the fresh start accounting adjustments on May 1, 2019, deferred revenue from contracts with customers was adjusted to its estimated fair value.

The Company’s contracts with customers generally have a term of one year or less; however, as of December 31, 2019, the Company expects to recognize $234.9 million of revenue in future periods for remaining performance obligations from current contracts with customers that have an original expected duration of greater than one year, with substantially all of this amount to be recognized over the next five years. Commissions related to the Company’s media representation business have been excluded from this amount as they are contingent upon future sales.

Revenue from Leases

As of December 31, 2019, the future lease payments to be received by the Successor Company are as follows:



(In thousands)
2020	$	1,462
2021	1,245
2022	858
2023	788
2024	690
Thereafter	10,020
Total minimum future rentals	$	15,063