Note 2 - Revenue

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

2. Revenue

Revenue Recognition. We recognize revenue when we have completed a specified service and effectively transferred the control of that service to a customer in return for an amount of consideration we expect to be entitled to receive. The amount of revenue recognized is determined by the amount of consideration specified in a contract with our customers. We have elected to exclude taxes assessed by a governmental authority on transactions with our customers from our revenue. Any unremitted balance is included in current liabilities on our balance sheets.

Deferred Revenue. We record a deferred revenue for cash deposits received from our customers that are to be applied as payment once the performance obligation arises and is satisfied. These deposits are recorded as deferred revenue on our balance sheet as advertising deposit liabilities. When we invoice our customers for completed performance obligations, we are unconditionally entitled to receive payment of the invoiced amounts. Therefore, we record invoiced amounts in accounts receivable on our balance sheet. We generally require amounts payable under advertising contracts with our political advertising customers to be paid for in advance. We record the receipt of this cash as an advertising deposit liability. Once the advertisement has been broadcast, the revenue is earned, and we record the revenue and reduce the balance in this deposit liability account. We recorded $13 million of revenue in the six-months ended June 30, 2024 that was included in the advertising deposit liability balance as of December 31, 2023. We also record other deposit liabilities for cash received in advance for other arrangements, for which revenue is as earned in future periods.

The following table presents our deferred revenue by type (in millions):

	June 30,		December 31,
	2024		2023
Advertising deposit liabilities	$	13	$	13
Other deposit liabilities		10		10
Total deferred revenue	$	23	$	23

Disaggregation of Revenue. Revenue from our production companies segment, is generated through our direct sales channel. Revenue from our broadcast and other segment, is generated through both our direct and advertising agency intermediary sales channels. The following table presents our revenue from contracts with customers disaggregated by type of service and sales channel (in millions):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Market and service type:
Broadcast advertising:
Core advertising	$	373	$	379	$	745	$	736
Political		47		12		74		20
Total advertising		420		391		819		756
Retransmission consent		371		394		752		789
Production companies		18		12		42		34
Other		17		16		36		35
Total revenue	$	826	$	813	$	1,649	$	1,614
Sales channel:
Direct	$	551	$	559	$	1,107	$	1,117
Advertising agency intermediary		275		254		542		497
Total revenue	$	826	$	813	$	1,649	$	1,614